How to finance a new business! Please help!

Horace

brownbabygirl wrote: »

hilarious!:rotfl:

It is if you have your homepage listed in your profile. It also depends on which fora you post on too.

Katie-Kat-Kins

Hi OP, I have a little experience in this area as my husband has a craft based business which I help him with.

I really think you need to revisit the business plan and your pricing. The mistake a huge number of craft workers make is to vastly underprice their work so they find it virtually impossible to make a profit.

It is possible to make a profit in this kind of business, my husband has been trading for years now and has never borrowed for his business. He started low cost and just reinvested his profits year on year.

At first he didn't spend money on craft fairs but sold work through word of mouth, and by advertising/selling/exhibiting in free ways such as making displays that could be put up free in local cafes, having a stand at local horse shows that don't have a "craft marquee" and at school/church fairs, putting up flyers everywhere and having a website that he built and maintained himself (there is a very good "for dummies" book that would help you do this).

When he had some money coming in he bought plots at cheaper craft fairs, and gradually grew his business that way. If you are struggling to find craft fairs widen your search, crafts are bought and sold at country fairs, horse shows, county shows, ploughing matches, village fetes etc some of these are very cheap to do. Look at organisations like The Rural Craft Association, ICHF, etc for ideas.

Bear in mind that you could get your work sold through shops (craft shops, wedding dress shops, fashion shops, art galleries, gift shops) for no cost. Offer pieces for sale to the shop owner at a trade rate, if they won't buy offer them sale or return for an agreed commission.

Consider doing pieces for commission too, the lady that did my wedding jewellery just has a few black and white flyers advertising her business and works almost entirely for commission, when you do that you can get part payment in advance.

But all this is no good if you aren't making a profit on the pieces you sell. My husband still kicks himself over the pieces he sold for under £100 in the early days. Work out your materials cost carefully and time yourself making the piece then add on labour at an hourly rate (at least minimum wage) then add on an amount to cover a proportion of your advertising and marketing costs, your equipment and premises. Then add on say 20% for profit and that is your trade selling price. Add another 10% for your retail price. If people won't buy at those rates you need to either cut your costs or accept that the business will never make money.

Most crafts are not profitable, they are hobbies. If you want to earn a living through craft you have to be pretty business minded.

Good Luck.

angel2010_2

You may find this link usually as it is helps with all craft business

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http://www.craftsforum.co.uk/