Start a 'cottage industry'... official MoneySavingExpert.com discussion

MRSMCAWBER

Hi there Nykmedia

I have been popping back and forth to the thread to see if anything has been happening...lol

I have spent most of the last few days chilling out and making an attempt to make my first knitted toy .... he is all knitted and sewn up-just need to get some stuffing for him tomorrow.. he is a polar bear, which was going to be part of a christmas pressie for 2008 - ok im starting early -but he may end up looking like road kill :-) so i thought i had better have a go now!!!
So im still toying with the idea of making more toys along with other "crafty bits" and seeing if they are "sell-able" ..... just need to figure out the best way of selling them..well trying anyway :-)

Hope you are having a good christmas...

Frugaldom

Cheers Mrsmcawber - I'm looking at eBid (free listing, no seller fees on basic listings) eBay (during cheap listing) and website plus stalls at local events, although there aren't many affordable ones. I'm also toying with the idea (pardon the pun) of asking others who do take regular stalls to include a couple of my items on their stalls just to find out how they go. Final thing I've considered is going to speak to local shops to see if they would be interested in sale or return. HOWEVER, I still haven't got a plan for what, exactly, I'll be making, as it's all based on what I can get for free to recycle. There'll also be a minimal outlay for some basic items I'll need, like glue and basic tools.

Does it sound unrealistic to have a start-up budget of £50 for my new business? I can't afford any more than that whilst taking part in the 'live on £4000 for a year' challenge along with saving £2 coins, saving for a mortgage free house and filling 'Phil the Pig', my sealed pot

MRSMCAWBER

Hi there Nyk

I don't think thats an unrealistic amount.. When i gave jewellery making a go i had to have the initial outlay, but then found myself using what i earnt to buy more beads etc.... but then there was a sudden increase in the amount of sellers so sales dropped. I sold on quite a lot of my stuff, but still have enough left to make quite a few items - so im going to use up as much as i can -without buying any more....

I have picked up some wool since i have been here, as the choice is so much better here and its cheaper - but as i was going to knit some things for pressies it won't be a problem if things don't sell - but once i get back to Germany im going to be having a look for items that i think i can sell for a small profit...

I wish i was my mum, if i could make sugar flowers and arrangements like she can i would be making loads...

Im doing the sealed pot challenge too, and my hubby is going to have his own tin and stick cash in it and then when it gets to the 1st dec 08... its all mine :-) ... there is never anything i want for xmas and am getting more enjoyment from saving lol so thats what he is doing for me,,, i have all sorts of savings tins on the go.. its becoming obsessive lol
Im also on the shopping challenge thread too - have been sat with a new note book getting everything ready for the new year...

I will be following your live for £4000 challenge..that sounds like a great one.. not one i can see us doing at the moment mind !!!!

ok im back... i have just had a thought.... if i come across anything in my jewellery making stuff that i can't think of a use for i could always send it on ..well waste not, want not .. you will have to let me know what kind of things you decide to make

MoKa_2

If anyone's thinking of knitting items to sell, but finding yarn rather expensive, you should find your nearest branch of 'Au Naturale'. They are currently selling packs of 4 x 50g balls of some really nice yarn (chenille, fluffy, etc). They were originally £5 for the pack of 4 balls (still a decent price) but were then reduced as at xmas eve to £2.50 per pack (bargain).

However, in my nearby store in Glasgow there was also a separate basket of clearance balls, not in their packs but with red clearance stickers 5 balls for £2. I bought a fair bundle of one particular type of yarn that I liked in the clearance basket that didn't have any obvious defect, and a few of the £2.50 packs and I think I can make nice 'neckies' (short scarves), handmuffs or 'designer' handbags and purses from about 2 balls each item.

I'm feeling very pleased with myself and am now on a knitting frenzy. My plan is to make as many items as I can in the next month or so and then maybe find a craft fair (or perhaps Etsy, ebay or ebid fixed price) and sell each item for between £10 and £15 each. A couple of sales should recoup my initial outlay.

In total I paid £26 for 50 balls of wool so with the capacity for approx 25 items at £10-£15 each, it could be a nice earner (in my local specialist wool shop/haberdashery, £26 would normally get me about 5 or 6 balls!)

... at least, that's the plan...

Frugaldom

:beer: Cheers for adding the bargain wool tip and for visiting the thread I am sure Mrsmcawber will love this offer if she's over here long enough to make it to the sales.

My plan is to make whatever I can from scraps of whatever I can get - kind of a recycling project as well as a cottage industry. I've got loads of offcuts of wood, board and card now and have been asked if I could make use of glass offcuts... which I CAN!

My most exciting buy from Christmas money - an electric Loctite hot glue gun and an extra pack of glue sticks! :rotfl:That means my start-up budget is now down to £37.93

MRSMCAWBER

Hi there MoKa

Strangely enough i have been in Au naturel today...and spotted the wool :-) made myself walk out and think about it... im back off out tomorrow as i want to get some more toy stuffing so will be off to the indoor market - where i saw balls of the lovely wool with the ribbon bits etc... for 49p a ball - so i may have to get some-shhhhh....
I don't know if you have a QD or Buyrights near you , but last week i got 3 balls of lovely wool and a pair of needles in a set for £2... and they had sets with 10 balls and needles for £5 too.....from QD

I have been sat knitting again today, and am about to get some more done.. although when i get back to Germany i will have to split my time as i have 2 large x stitches to do for xmas pressies for 2008... so im going to be busy busy busy - stil it will keep me out of the shops and the fridge lol

Hapless_2

A quick word of warning, unless an item has been tested it cannot be sold as a toy for safety reasons.
Where making food items are concerned, please be aware that environmental health people check up on things at craft events and boot fairs etc and they may demand your production address and come and do an environmental health inspection (e.g. do you have pets that come into the kitchen? If you do you can be shut down and prosecuted, Do you have a seperate sink for hand washing and food prep? No? again can be shut down).
As for soaps, again it is a legal minefield, do you know all the ingredients, do you know what products have peanut oil in? can you list every ingredient on the packaging?
Are you registered as self employed? What about VAT paperwork? Book-keeping?
Don't forget that the HMRC and the DWP often send inspectors out to these events too and they have the legal right to request names addresses and NI numbers.
If selling at an event do you have public liability insurance in case something goes wrong? e.g. table collapsing on passers by, product causing injury or ill health, product causing damage etc. Some events require you to have it and to display your certificate at all times.
Refund policy, do you have one? You still have to abide by the sale of goods and trades descriptions acts.
Sorry to put a downer on the thread but these are all things that have to be considered. I used to do craft fairs and markets for a living and all the above was essential.

Frugaldom

Hi Hapless, don't be sorry for putting a downer on the thread - you haven't
All of your relevant points have been discussed in some length either here or in other threads. I've already registered for self-employment and self-employed National Insurance contributions. I keep accounts, do tax returns and keep an eye on various legislation, such as distance trading laws.

I also know that the Inland Revenue, Insurance companies, Social Security benefits fraud squad and countless others can use forums such as these, auction sites and even PayPal accounts for checking out unlicensed traders, tax evasion, benefits cheats and similar criminal activity.

It's also worth noting that all online traders who offer goods on a 'buy it now' basis are obliged to stick within the Distance Trading laws.

Feel free to leave any comments as it is very difficult keeping up to date with current legislation. I am not in receipt of any SS benefits and pay the voluntary NI contributions. I also need to include all my earnings from paid employment in my tax returns - it's a lot of work for not a lot of income, but once you become self employed you can't exactly quit work, go off 'on the sick' or 'sign on'

All 'challenges' in which I participate are for financial self-preservation causes. LOL

Pink_Fairy_2

Hi. I'm new on here. Work full time but still seem stretched to the limit. Would appreciate any hints, tips etc but think I've taken the first step by joining you.

Frugaldom

Hi Pink Fairy, glad to see someone else with an interest in such projects. Have you any ideas about what you would like to do as part of your cottage industry?

My own challenge for the year is to earn an extra £3000 from a new venture. I've only budgeted £50 for start-up costs and plan to base my business on recycling for profit in whatever way I can.

I'll look forward to seeing you in here often and wish you every success with whatever you decide to do. And congratulations on making your first post here! :T