Craft INC. Revised Edition The Ultimate Guide to Turning Your Creative Hobby into a Successful Business Meg Mateo Ilasco Text copyright © 2007, 2011 by Margaret Mateo Ilasco. All rights reserved. No part of this book may be reproduced in any form without written permission from the publisher. ISBN 978-1-4521-2852-8 The Library of Congress has cataloged the previous edition as follows: Ilasco, Meg Mateo. Craft, inc. : the ultimate guide to turning your creative hobby into a successful business / Meg Mateo Ilasco. — Rev. ed p. cm. Includes index. ISBN 978-1-4521-0141-5 1. New business enterprises—Management. 2. Small business—Management. 3. Home-based businesses— Management. 4. Self-employed. 5. Hobbies. I. Title. HD62.5.I39 2011 745.5068 —dc22 2010053576 Designed and Illustrated by Sarah Meyer Cover design by THUSSFARRELL Typeset by Happenstance Type-O-Rama This book was typeset in Dalliance, Fling, and Gotham 8/11.5 Chronicle Books To my craft muse and mom, Dely Contents Introduction CHAPTER 1 Your Creative Mind 10 Creative Mythology Lotta Jansdotter: Surface Designer, Lifestyle Goods What’s Your Creative Bug? Building Creative Confidence Craft Time A Room with a Muse Jill Bliss: Eco- Conscious Crafts Sharing Your Dream Your Business Mind CHAPTER 2 26 Quiz: Are You Entrepreneur Material? Business Plan Basics Designing Your New Career Sunshine’s Scarves: Crocheted Scarves Naming Your Baby Business Essentials A Team or Solo Effort What’s Your Legal Structure? Financing Your Business Beth Weintraub: Etched Metal Modular Art Record Keeping Your Personal Style and Your CHAPTER 3 Products 52 Keeping It Real Creative Mission Statement Company Identity Denyse Schmidt: Quilts Starting the Ideation Process Capture Your Ideas Setting Goals Market Research Wool & Hoop: Crewel Kits Trend Watch Copying Your Creative Muses Using Images and Patterns Ashley G and Drew: Illustrated Prints Packaging Evaluating Your Products Protecting Your Work Production and Pricing Plans CHAPTER 4 74 Sourcing Raw Materials and Vendors In Fiore: Luxury Holistic Skin Care Products Buying Equipment The Manufacturing Life The Small Object: Curiously Small Crafts Internationally Made Pricing Your Products Creating a Pricing Formula Evaluating Your Prices Lovely Design: Found Paper Stationery Marketing and Publicity Strategies CHAPTER 5 94 Printed Materials Catalogs Getting Professional-Looking Pictures Online Presence port2port press: Letterpress Stationery E-mail Blasts Online Communities and Social Media Design*Sponge: Craft and Design Blog Be Your Own Publicist Press Kits Press Releases Hiring a Publicist Reaching for the Stars Advertising Creating a Marketing Plan Making Sales and Order CHAPTER 6 Fulfillment 122 Online Store Etsy Retail Shows Renegade Craft Fair Consignment Wholesale System Necessities Poppi: Jewelry Designer Getting Paid Approaching Stores ReForm School: Craft and Design Boutique Trade Shows New York International Gift Fair Representatives Being a Good Salesperson Order Fulfillment Customer Service Ups, Downs, and Next Steps CHAPTER 7 160 Knocked Off Where Are the Orders? Variegated Inc.: Textiles Burnout Life in Balance Parent Entrepreneurs Hiring Employees How to Be a Good Employer and Boss Jonathan Adler: Potter, Designer Other Sources of Income Outgrowing the Home Base Growing Your Business Calling It Quits Internet Resources 187 Index 190 Acknowledgments 192 Introduction If you have ever muttered the words “I wish I could make a living doing [insert artistic passion here],” you certainly are not alone. For a creative individual like yourself, trapped in a dour cubicle transcribing letters for your boss or nursing achy feet after waiting on tables, it’s probably a mantra you recite every day. But while your coworkers are eyeing the corner office, your goals lie elsewhere. You ponder throw pillow design possibilities instead of sales reports. Your cubicle contraband provides temporary fodder for your inventiveness—coasters made of paper clips, anybody? With your finger poised over the “quit” button, you yearn for an escape. For now, starting your own creative business may be nothing more than an idea, but it’s absolutely possible to turn what you do for fun into what you do to get paid. These days, it isn’t at all surprising to ask a gal where she got the baubles draped around her neck, and find her response paired with a handshake and business card. The urge to make stuff, combined with growing public interest in design and the renewed popularity of traditional art forms like knitting and sewing, has made it more appealing than ever to turn a craft into a business. But how exactly do you make the transition from hobbyist to professional crafter? It might be hard to imagine making this move, especially when you’re already holding down a day job to pay the utility bills, school loans, and rent, not to mention spending time with your friends and family. The good news is that with planning and determination you can achieve more than you ever thought possible. Acting on your desire to earn money from your craft can be an anxiety-filled proposition. Consider Craft, Inc. your guide as you prepare for this impending mental and belt-tightening shift. Bridging the gap between your creative vision and the reality of starting a business, this guide provides advice on putting together a business plan, creating a line of goods, outsourcing your production, selling your wares in the wholesale or retail market, and getting editorial coverage in magazines. In addition, to serve as your muses, established indie crafters and designers are interviewed throughout. The road to making your craft a profitable business can be bumpy. It might take time for your unique style to catch on; even if you become the darling of the indie design scene and gain instant fans, it doesn’t necessarily mean you’ll turn a profit this year, or next year. Building a successful creative business requires many elements. Some elements are intangible—like luck and timing—and some you can control—like working hard and arming yourself with knowledge. No one can predict or prepare you for every obstacle that will come your way, but in Craft, Inc. you’ll learn about potential pitfalls and ways to protect your business. It won’t be long until you experience the unbeatable joy of making that first sale, the empowerment of seeing your name on your very own business cards, and the thrill of opening your favorite glossy and spotting your work gracing its pages. Suddenly, you’ll find that the creative business dream you’ve slept on for years will now keep you up at night, giddy with excitement. And while your old career simply put food on the table, your new crafting career will feed your soul. With Craft, Inc. on your side, you will be prepared to successfully take this creative leap!