Grow your handmade business: how to envision, develop, and sustain a successful creative business

273 Pages·2012·34.442 MB·English

by  Chapin, Kari

Grow Your
Handmade Business
This page intentionally left blank
How to Envision, Develop, and Sustain
a Successful Creative Business
Illustrations by ß
Storey Publishing
Jennifer Judd-McGee
Dedication
Copyright
The mission of Storey Publishing is to serve our customers by
publishing practical information that encourages
personal independence in harmony with the environment.
Edited by Deborah Balmuth and Dale Evva Gelfand
Art direction and book design by Alethea Morrison
Text production by Liseann Karandisecky
Illustrations by © Jennifer Judd-McGee/Lilla Rogers Studio
Indexed by Catherine Goddard
© 2012 by Kari Chapin
All rights reserved. No part of this book may be reproduced without written permission from To my community.
the publisher, except by a reviewer who may quote brief passages or reproduce illustrations
We’re all in this together.
in a review with appropriate credits; nor may any part of this book be reproduced, stored
in a retrieval system, or transmitted in any form or by any means — electronic, mechanical, Thank goodness.
photocopying, recording, or other — without written permission from the publisher.
The information in this book is true and complete to the best of our knowledge. All
recommendations are made without guarantee on the part of the author or Storey Publishing.
The author and publisher disclaim any liability in connection with the use of this information.
Storey books are available for special premium and promotional uses and for customized
editions. For further information, please call 1-800-793-9396.
Storey Publishing
210 MASS MoCA Way
North Adams, MA 01247
www.storey.com
Printed in the United States by Versa Press
10 9 8 7 6 5 4 3 2 1
library of congress cataloging-in-publication data
Chapin, Kari.
Grow your handmade business / by Kari Chapin.
p. cm.
Includes index.
ISBN 978-1-60342-989-4 (pbk. : alk. paper)
1. Handicraft industries—Management. 2. Handicraft—Marketing.
3. Selling—Handicraft. I. Title.
HD9999.H362C528 2012
745.5068'4—dc23
2012004612
Dedication
To my community.
We’re all in this together.
Thank goodness.
Contents
Contents
Introduction 9
Meet the Creative Collective 17
Part 1: mapping Your Dream
CHAPTER 1: IDENTIFY YOUR DREAM BUSINESS 26
What Form Does Your Dream Business Take? X
What Direction(s) Will Your Dream Business Take?
CHAPTER 2: DREAM BUSINESS FUNDAMENTALS 36
Do You Have a Hobby or a Business? X Where Are You Now,
and Where Are You Going? X Onward and Upward
CHAPTER 3: WORKING FOR YOUR VISION 42
A Business Takes Work, and Plenty of It X
Visualize Your Perfect Workday X Practice Mindfulness
around Feelings X Why Are You in Business?
Formulate Your Mission Statement
CHAPTER 4: TLC 58
Just Say No! X Who Cares? You Do! X Family Matters X
Take Yourself on a Creative Retreat
CHAPTER 5: GOALS AND INTENTIONS 69
Keep Yourself Honest X Determine Goals X Goals versus Intentions X
Make Reasonable Goals X Keep Track of Your Goals and Intentions
CHAPTER 6: BENCHMARKS 85
Measuring Your Success X What Does Success Look Like? X
Calculating Success One Step at a Time
CHAPTER 7: GET SOME HELP! 92
Say It Loud and Say It Proud: Help! X Mentors: Your Business Gurus X Your
Personal Board of Directors X Build a Brain Trust
Part 2: Planning for Success
CHAPTER 8: TYPES OF BUSINESS MODELS 114
Business Model Defined X Running Your Business from Home X
Renting a Studio or Office X Renting a Storefront and Keeping Shop Hours X
The Off-Site Bottom Line
CHAPTER 9: BUSINESS PLAN PRELIMINARIES 129
What Is a Business Plan, and Why Do You Need One? X Business Plan Basics
CHAPTER 10: DO YOU MANAGE YOUR TIME,
OR DOES YOUR TIME MANAGE YOU? 143
Time Management X Keep Your To-Do List in Check X
Managing Time Is Easier Than You Think
CHAPTER 11: THE NUTS AND BOLTS OF BUSINESS PLANS 155
Getting Started X Executive Summary X Who Exactly Are You, Anyway? X
Business Plan Checklists
Introduction
CHAPTER 12: KNOW YOUR MARKETPLACE (OR MARKETING!) 165
Know Your Industry X Target Market, Say What?
introduction
CHAPTER 13: PUTTING IT ALL TOGETHER:
YOUR MARKETING PLAN 173
Taking Stock X Marketing through Advertising X Marketing through the Media
CHAPTER 14: WHAT DO YOU MAKE, AND HOW DO YOU MAKE IT?
HAVING A PRODUCTION PLAN 183
Ready, Set, Produce! X Licensing
CHAPTER 15: MONEY, MONEY, MONEY 191
They’re Just Numbers X Numbers ’R’ Us X Numbers Nomenclature
CHAPTER 16: BUDGETS AND BUDGETING 202
First of All, What Exactly Is a Budget? X Monthly Budget
CHAPTER 17: PROFIT AND LOSS 209
P&L Overview X Detailed P&L by Department
CHAPTER 18: MONEY AND HOW TO GET SOME 219
Bank Loans X Grants X Angel Investors X Crowd-Funding X
Family and Friends X Financing with Personal Credit Cards X Finding a Way
CHAPTER 19: MAKING IT ALL LEGIT 233
What Kind of Business Are You? X Going into Business with a Loved One X
Taxes X Payroll X Insurance
CHAPTER 20: PROFESSIONAL SUPPORT AND WHERE TO FIND IT 246
Accountants and Lawyers and Agents, Oh My!
Parting Advice 260 X Acknowledgments 262
Resources 264 X Index 267
Introduction
introduction
The first time I wrote up a business plan was
in 2005. My husband, Eric, and I were living
in Alabama, and we desperately wanted to get
back to our native New England. Problem was, we
had no money to make the move. Eric’s job had
transferred us to Alabama, and we were stuck
there, largely dependent on his salary and under
contract to stay there for at least one year.