Turn Your Craft Into Cash
Along my career journey I have had the privilege of working for and with some of the best companies in our industry. From manufacturing companies to retail sewing machine dealers and different organizations, we all seem to have one thing in common. We are all continually searching for the NEXT BIG THING!
For me that means selling retail and wholesale products we produce with our laser engraving machines. Not only is it fun and allows for a new creative outlet, but it is supporting our family income. I’m turning my craft into cash, and it is something you can do it too! Selling crafts is a great money-making skill to have. It can be a great side hustle to bring in extra money because start-up costs are low and there are many different crafts you can sell.
Business Plan
If you own a laser, embroidery machine, or digital cutting machine, you should consider selling your finished products. Maybe this idea has intrigued you, but you have no idea where to start. If so, keep reading because I’m going to share with you the first steps and details for starting a crafting business. Let’s dive in!
Market Research
The first thing you need to do is market research. This will help you understand what the market is like, if there is a desire in the industry for your product, who your competitors and customers will be, and what potential customers might pay for your product. Gathering this information is important because it will help you make good business decisions. You can do this research by talking with industry friends, searching the internet, or using social media.
Next, you’ll need to make a business plan which is a foundation or roadmap of your business. Your business plan should describe your company, outline your market analysis, list your products and services, define your marketing plan and identify your revenue streams. Some questions you will want to keep in mind when writing your business plan are:
Do you own the equipment, machines and tools needed to implement your business?
How will you attract and retain customers?
Do you want to add more tools to your business in hopes of gaining tax write-offs?
How will your company make money?
Business Structure
You will need to choose a business structure before registering your business with the state. A business structure describes the legal structure of a company that influences the day-to-day operations of a business. Find more details online at www.sba.gov.
Business Name
You’ll want to choose a business name that reflects your brand identity. Once you select a name you like, you need to protect it. According to U.S. Small Business Association, there are four different ways to register your business name. Each way of registering your name serves a different purpose, and some may be legally required depending on your business structure and location. Entity name protects you at a state level. Trademark protects you at a federal level. Doing business as (DBA) doesn’t give legal protection, but it might be legally required. Domain name protects your business website address.
If you have an existing business you may want to add a DBA. Check with your state, county, or city if you need to register a fictitious name (DBA).
If you plan on having your own website, Facebook, or Instagram page, research to see if your desired business name is available for a web domain and on social media.
Register Your Business
For most small businesses, registering your business is as simple as registering your business name with the state and local governments. You register your business to make it a distinct legal entity. How and where you need to register depends on your business structure and business location. Visit www.sba.gov.
Federal & State Tax IDs
You will use your employer identification number (EIN) to open a bank account and pay taxes. It’s like an SSN for your business.
Additional Steps
If applicable, you will need to apply for a license and permits. You will also need to open a business bank account or a separate personal account only used for business.
I have had the privilege of inspiring many industry friends and colleagues during my career through magazine articles, workshops and corporate projects. I look forward to bringing you fresh, new quarterly content to educate, provoke a new mindset, and “Inspire.”
DESIGNS BY HOPE YODER