Business Tips Part 25: Wholesale Part 1

This blog is coming up at the perfect time for me as i am looking into wholesaling with Butterfly-Crafts!

Just hearing the word wholesale can put such fear into craft people because it gives the indication of selling goods in vast quantities are heavily reduced prices - not so. Wholesale can mean selling 5 of one item or selling 5000! If you are interested in selling wholesale, like I am, what does it mean to you? Do you want to get a presence in a few local stores or independent stores natiowide or are you looking to compete with the big guns? What ever your aspiration, there are a few things you will need to know, and here I shall cover the basics (they really are the basics, you will need to investigate further!)

Line Sheets
A line sheet displays the names, item numbers and prices of your products. Its also good to include contact information, sales and delivery policies, minimum order requirements, lead times and shipping costs.

Minimum Order Requirements
There are two types of minimum order to consider. The first is a minimum monetary value for an opening order and reorder and the second is a minimum purchase quantity per item. The minimum opening order will vary depending on what products you sell. For example I may set my minimum at £50 as my prices are lower than say a high-end jewellery seller who may set their opening order at £200. The minimum quantity requirements will tell a buyer that they need to purchase, say, 20 bars of soap in a particular scent or 5 quilts in a particular pattern. When you start out it is helpful to keep minimum quantities lower to encourage buyers to purchase and take a chance on you. It will also enable smaller shops to purchase. Be confident in the minimums you set because if a buyer wants your product they will adhere to your requirements.

Order Forms
An order form will allow you to easily take orders from your retailers. Be sure to have space for their name and company information, terms and the purchase order number. Larger companies cannot pay for their order unless it has a PO number. You may decide to combine the order form and line sheet into one document.

Terms
If you are asked what your terms are it means payment terms and is especially important with new account holders. Typically before a buyer has established themselves with you and has your trust you should expect COD (cash on delivery) or prepaid via a cheque, credit card or Paypal if international. When you have an established buyer and trust them you could offer 30 day net terms which will allow them 30 days to pay from the time the order has been received.

Lead Time & Shipping
Once you have an order you will have to let the buyer know when to expect their products. Calculate the lead time on how long it takes you to create the items and package them. As a general guide, manufacturers at trade shows will say a four to six week lead time. You will also have to give information on how the order will be shipped, shipping costs and who will pay for these.

Return Policy
When you sell your items wholesale, the buyer is buying your goods outright however it is good business practice to have a returns policy. You need to set a time frame in which to accept returns i.e. 14 days and the items need to be in a resalable condition in their original packaging. If like me, you do custom orders, it is advisable not to accept returns for these. Be clear about your policies.

Other Policies
You can have policies about pretty much anything but they can only be enforced when they have been started upfront. You might want to have a policy on cancellations of orders, especially custom orders, or how to sell your goods. You may even create a policy about promotion for example if a bulk order is placed, say, over 100 bars of soap, then a small discount is given.
That really did end up being a long blog post! Have you any tips on wholesaling?

Coming in the next Business Tips blog: Wholesaling Part 2.

Monday, 8 March 2010 | 2 Comments

Business Tips Part 24: Consignment

Have you always wanted to have your products on sale in a physical shop? Well don't be a chicken, approach a store and see if they accept consignments.

When you place your products for sale in a bricks and mortar shop yet retain the legal ownership it is known as consignment. This is a precursor for setting up a wholesale account with a retailer. The shop acts as the sales representative but takes a commission on any sales. The commission could be anything between 25% and 50% but there is usually room for flexibility so barter for a rate you are happy with.

Some shops have a limited buying budget and therefore taking on consignments allows them to try out a range of goods and test the salability before offering to buy outright with a wholesale deal.

It can be really exciting to think that you will be getting your items into a real life shop but you will need to be cautious at first, extra cautious if the store is quite a distance away that you are unable to visit too often in person.

It is extremely important to have a consignment agreement with the shop. At minimum this will include the details of how, and how frequently you will be paid (i.e. monthly or quarterly) and who will cover the postage costs if this applies. More often that not a shop offering consignment will expect you to absorb the postage costs. When you do receive payment, make sure you are given a detailed list as to what has sold, this will ensure that you have been paid correctly but it will also be necessary for your records. If you have any concerns or reservations with a shop, start off with a small quantity until they have gained your trust.

Here are some further points to consider:
  • Is the shop well established and been in business for long? If it is new you will need to be extra careful,

  • Are most of the goods on sale in the shop bought outright/wholesale? If so encourage the owner to do the same with your pieces,

  • Contact other designers/artisans who have pieces for sale in the shop for their feedback on the shop and business practices,

  • Ask if the insurance documents cover consignment items,

  • Find out what will happen if your items are stolen or damaged - will the shop pay you?

  • How long will a product be on the shelf? If they are not sold within the set timeframe how will they be returned to you? It isnt ideal to have items sitting on the shelf for long periods of time as they may become damaged and you will be unable to sell them.

Do any of you do consignment? Have any tips you would like to share?

On the next Business Tips blog: Wholesale Part 1







Friday, 5 March 2010 | 0 Comments

Business Tips Part 23: Craft Fairs part 2

So you've researched and found a craft fair and booked the table but now what? Well, you need to think about how you want to display your items.

A visitor to a craft fair isn't necessarily looking for something specific but wants to see what is on offer on the day. Keep this in mind when you set up your table so that your items can be accessible and ready to be picked up....and purchased! Your stall needs to be inviting, uncluttered, simple and have the prices on display.

Consider using some props so that people can see the uses of your items. This is not so relevant for the cards at Butterfly-Crafts but I could show different ways to use a crochet flower brooch such as on a cardigan, a hat or even on pretty ribbon for wrapping a present. Also think about raising some items up off of the table to eye level or use display boards along the back. No matter what you do however, practice before the big day so that you can tweak the stand until you are happy.

Some additional tips:
  • Keep a record of your inventory before and after the fair,

  • Have a method of recording each sale and if you have an assistant make sure they know how to do this too,

  • Consider tying down items that may appeal to slippery fingers,

  • Bring an assistant to help you package and talk about your products, keep you company when it is slow and let you have a break,

  • Set yourself a target such as make three times your table money, or sell all of one type of product.

But my number one tip: Have fun!

On the next business tips blog: Consignment

Image from EmilyClaireCreations

Monday, 1 March 2010 | 1 Comment

Business Tips Part 22 - Craft Fairs, part 1

With the economy being the way it is more and more people are taking to crafting and all things handmade. This change is evident in the revival of the craft fair. Once typecast as a place you'd take your grandma to in order to find gift baskets and dried flower arrangements, craft fairs are now becoming a gathering spot for the younger generations and those who care about buying handmade.

If like Butterfly-Crafts your craft business is relatively new, a craft fair can be a fantastic introduction into the retail market - a chance to test out product lines and prices. Craft fairs of today are not all about selling as much as you can to make your cover fee back, but they are a chance to congregate with like-minded people and exhange ideas. Summed up, they are a great opportunity to meet, greet and sell.

Craft fairs range in size and so do their entrance or table fee so it is always recommended to research before comitting to have a table. Questions to ponder include does the fair live up to its reputation? Do your products have the right 'fit'? What are the demographics of those who attend? and, can you afford it?

Along with those questions, there is one essential question to ask: Will I be ready on time? If it is going to be your first craft fair it will be hard to judge how much inventory you should take but it is far better to have more than you need rather than too little. Aim to make as much as your time and resources will allow. As you become a craft fair regular you will be able to guage how much inventory to take with you.

Coming next time: Craft fairs part 2

Friday, 26 February 2010 | 0 Comments

Business Set Up Tips Part 21 - Marketing Plans

Part 21? Wow, this series is officially an adult!

So with all your new found publicity skills you might just have been promoted in a magazine article or a feature on Hand Made News or receive a thousand hits from a high profile blog feature but what was todays feature will be tomorrows fish wrappers as the saying goes. You will need to start thinking longer term to the next six or twelve months and ask yourself one question: How can I keep the momentum going?

A successful marketing programme is based on frequency and keeping your business name and products in your audiences face until they recognise your brand and then buy your products.

Before devsing a marketing plan or create your marketing materials, you need to have a clear understanding as to who your target audience are. Get to know your customers, how do they spend? How much to they spend? What blogs or magazines do they read? That way, you can create materials they will respond to. Knowing your customers specific wants and needs will help you put together products to meet those desires.

As you begin to put your marketing plan together, assess your goals and budget. If you need immediate results to stir up interest quickly try advertising or getting into a high traffic blog (like mine!) However for most of us small business owners in the craft world we have the time but no money! In this instance, put your money into publicity rather than advertising. Send new material to editors, follow up and remind them of your company until they bite. Publicity is not a marketing method for the impatient, you may spend days putting together press kits and sending them out and get no response, it might even take months for an article to be published.

It is also worh bearing in mind that not all of your ideas, products or sales are appropriate for PR activity - it is for you to decide what is important to publicise and what can be skipped over.

I must admit, writing this blog has made me think about having an actual marketing plan, something I donot have as yet. It would be great if you have any marketing tips to share, please comment......

Friday, 9 October 2009 | 2 Comments

Business Set Up Tips Part 20 - Hiring a Publicist

Are you like me and struggle when it comes to publicity or do you not have the energy? Have you considered hiring a publicist?

A publicist is paid to sing your praises from the roof tops to the press but also consult with you on every aspect of your business. The most imporant thing a publicist can do, is develop your marketing strategy.

A publicist will want to present your products to their contacts every season so you will need to be prepared and committed to delivering an agreed quota. You need to ask yourself if you are really ready for major recognition and the sales (and production) this will bring - I know I'm not just yet but Butterfly-Crafts will be one day! Finally, and most importantly, can you even afford one?

Remember you are hiring a publicist for their expertise and contacts and this unfortunately does not come cheap. On top of their monthly fee, you may also have to pay out for their telephone calls, postage and copying costs. You will still have to create your press kit and advertising because although the publicist can advertise you, they are not necessarily a graphic designer.

If you do decide to take the next step in marketing and hire, choose carefully and pick someone you have a good rapport with and who you feel will represent you well. Do your research with different companies and ask fellow store owners for their contacts. But, when it comes to signing that contract, put your expectations in writing and stay in contact.

It is really important to realise that a publicist can be selective about who they choose to work with. Like all of use, they will want a client who is easy to work with and whose talents and skills they truely believe in as you are likely to be committed to a minimum contract.

One thing to bear in mind with a publicist however is that the results are cumulative so you may not see immediate results but when they do start, they are likely to snowball!

Monday, 5 October 2009 | 1 Comment

Business Set Up Tips Part 19 - Press Kits

In the last business tips blog we looked briefly at being your own publicist. Now we look at what to do next and how to develop a press kit.

If you hear back from the editor or their designers from the publication you approached, it is possible that they will be working on a deadline and want your information yesterday. The best way to be prepared for this is by having a web page with high-res images, key facts, press releases and suchlike that can be downloaded quickly. Sometimes this approach can be quicker than snail mail and if you make work easier for your contacts, they may be back for more.

However, it is good to have a hard copy press kit as one way to express your creativity in your business material. Standard components of the press kit would include:

  • a catalogue with clear photos and descriptions,
  • a line sheet with product numbers and whole sale prices,
  • a biography,
  • colour copies of any press cuttings,
  • press releases if what you are announcing is newsworthy,
  • a few samples if you can spare them as often Editors prefer something visual to a press release.

A press kit is a great chance to be imaginative, but is can go terribly wrong if you try and jump through too many hoops and end up confusing the viewer and losing the message whilst you're at it. If you can balance out simplicity and creativity you'll have a winning kit. You may also consider:

  • Including your contact information on the bottom of every item in the kit,
  • Reflect your brand by reinforcing your colours and logos,
  • Everything in the kit, aside from samples, should remain flat as editors often keep a stack of kits on their desk - and you wouldn't want to be the person who sent in a poster tube and you roll off or get binned.
  • As a precaution label each and every item in the case it were to be separated from the rest.
  • Don't include too many loose small items incase they get lost.

A note of caution though regarding samples - if you send unsolicited samples to publications, it is very unlikely that you will receive them back as they would be considered gifts. However if an editor was to request something specific from you, you will be more likely to see it again.

So your challenge for this week is to think about what you would include in a press kit.......

Image from http://www.theangryrobot.artfire.com/

Friday, 2 October 2009 | 0 Comments

Business Set Up Tips Part 18 - Being your own publicist

For most independent crafts people like myself, publicity is a good strategy when you are short on money but have some available time. But, before you rush into getting yourself known, it is important to know that getting press mentions is more about raising the profile of your business and your products than driving sales. I would love to get Butterfly-Crafts and my handmade cards mentioned in the press!

In an ideal world, you should aim to spend at least two hours a week working on publicity and getting your brand and products into the media. If it is applicable, might I suggest a trip to the local newsagent or library to research your target publications?

For magazines, bear in mind that the lead time is often three to five months and if you have Christmas products, you need to approach them in the Summer time. Take note of the Editor for the section your work would fit in and send them a press kit. Double check that the address you have found is not for advertising or subscriptions as often these are managed separately to the magazine. Once you have the information you need, write the Editor a letter, talk a little about your business and show that you have read their publication bt explaining why your product would be a good fit.

Editors are looking for something that stands out against the crowd so it is likely you will write to many editors. What ever you do however, don't get lazy and send off a generic letter or just fill in the blanks of a stock letter, tailor each letter to the editor you are writing to.

Happy researching!!

Monday, 28 September 2009 | 1 Comment

Business Set Up Tips Part 15 - Photography

I will say from the outset - I am in no way an expert on photography! In fact, I really struggle to take good photos and when I first set up Butterfly-Crafts, my photos were shocking! I thought it would be good to photo my cards on a black so that they were the main feature, that was until someone kindly pointed out to me that the black was washing out my cards.

So, after a long hard think I decided to use a silver background, I just bought some wrapping paper, and use two props in all of my photos: purple butterflies and a purple pen, that way my store front has a uniformity to it and I am so pleased!

I have gathered a few tips on photography and would like to share:
  • Do not use a flash as this can distort the product colour

  • Use indirect light as direct light can create harsh shadows

  • Buy daylight, tungsten or halogen lightbulbs as incandescent ones can create a yellow effect

  • Use soft, diffuse lighting such as a photographer's umbrella or a light box.

  • Use a tripod as your hands will shake no matter how steady you think you are.

  • Get to know your camera as some digital cameras have manual settings allowing you to programme the shutter speeds and apertures.

  • Think about using the macro setting (I do!) as this will help focus when taking up-close pictures

  • Be creative with your backgrounds/settings or just use something plain. Something too busy will distract from the product

  • Take multiple shots of the same item (I take about 10) and think how the buyer would want to see the item. I photo my cards from all angles I can think of and then close up on specific parts. Make jewelry? Then make sure you photograph the reverse of the item if appropriate.

  • Learn how to use a photo editing software as you will need it!

Some links you may find helpful:

Coming the next time for Business Tips (Friday) - Having an online presence

Monday, 7 September 2009 | 1 Comment

Business Tips Set Up Part 14 - Marketing & Publicity

Once you take that first step into the world of marketing, you must first consider the materials you use to represent your business. Your stationery communicates a message about your business therefore should feature your logo and represent your brand. My business cards for Butterfly-Crafts shown here are one way I market myself.

You may have business cards, letter-head, post cards and pens but have you ever considered a catalogue? If you only sell online you have the difficulty of not being about to directly show your items, here is where a catalogue can help. Catalogues are typically image heavy with concise item descriptions. It can also help to include company history and contact information. Bear in mind you may change your catalogue with the seasons so print in realistic numbers.

Having catalgoues professionally made can become expensive, especially if you hire a photographer, stylist, graphicdesigner and printer. Services like Vista offer calatogues if you do the work yourself.

Prior to working on the catalogue, carefully consider what it is you want to say. Planning to send them to store who are new to your product? Then a fancier presentation may be required. Handing out at trade shows as a reminder as to who you are? Then just one side may be enough.

There is so much to marketing a small business but it needn't be too complicated. Over the next few business tips blogs I will look into marketing a little more. In the meantime, why not check out the marketing department at Handmade News for some tips.

Tuesday, 1 September 2009 | 2 Comments

Business Tips Part 13 - Pricing Part 2

Now this blog might be Business Set up part 13, the number unlucky for some but I think this might actually be one of the most important blogs - pricing. In the last blog I briefly talked about pricing your items for sale, this time we look at the different terms that go into a pricing formula.

Material Cost - the cost of each material directly used including packaging

Labour Cost - Calculate how much your time is truely worth

Overhead Cost - Everything that is not labour or materials such as a trade show stand, equipment and promotional items.

Profit - Money in your pocket when you have paid all of your expenses

Mark Up - The % of materials and/or labout costs added to an item to reach a price.

There are so many different ways to create a pricing formula and the most important aspect is finding one you are comfortable with. Generally, the best formulas consider materials, labour/time, overheads and profit. However, if your time far outweighs your materials you may choose to just calculate on time.
Some example formulas include:
Wholesale price = (materials+labour time) x mark up
Retail price = wholes ale price x markup

It is recommended that a minimum markup for wholesale price is 100% to cover overheads and profit but if you can increase this it can only be to your benefit.

The retail price is what you suggest your wholesale customers (if you have any) sell your items at. If you sell directly to your customers online or in your own shop, you still need to sell at the retail price or you will be underselling your wholesale customers and risk losing them. Selling at retail also increases your profit margins and enables you to have sales or special offers because even if you have a sale at wholesale price you still make a profit.

Evaluating your prices every few months is essential. Pricing is a balancing act between your costs and what your target market is willing to pay - I find this balancing act very difficult as do many. An alternative method is to work in reverse starting with what you think people are willing to pay, half it to get a wholesale price and then realise that you have to use materials in line with this price. You may be surprised to find your profit margin may increase this way.

If through evaluation you discover that your prices are indeed too high, look at ways to reduce your costs, such as wholesale purchasing, before automatically dropping your prices.

Next time - we start looking at marketing and publicity.

Image from Salvagenation

Saturday, 29 August 2009 | 1 Comment

Business Set Up part 12 - Pricing (Part 1)

You can take it from me as I have first hand knowledge, pricing can be one of the most challenging aspects of owning a craft business because it isn't always about following a formula.

The most important aspect of placing a price tag on an item is the perceived value you are creating. A consumer doesn't always want a low price as this can indicate an inferior product. They view a price as an indication of craftsmanship and by buying a handmade item such as one of my cards, the buyer has a sense of good taste, status and confidence in the seller.

However, a buyer can tell if something is overpriced. Similarly, not all buyers will take into consideration the time taken to make something and they may compare it to a machine made item. This would be like someone comparing one of my cards with a mass produced card you'd find in Clintons or Hallmark and to me, they are not comparable.

Many new sellers, including myself in the beginning, misunderstand price and undersell themselves at bargain prices because they feel guilty about making a profit margin or they are just so excited to get those first sales.

Ultimately, the value you place on an item should wattant the price tag you use!

Coming over the next few business tips blogs will will look more into pricing so make sure you come back!

Friday, 21 August 2009 | 2 Comments

Business Set Up Tips Part 11 - Production

In the previous business tips blog, we looked at packaging your items. Well today we are going to look at production and lowering the cost of supplies.

If you are new to the craft business, it can be extremely tempting to pay retail prices for your materials - believe me, I have done it when buying for Butterfly-Crafts! But, by doing this you will have to price your items high therefore reducing your profit margin.

Finding a seller who will sell wholesale will take a lot of time and leg work but it will definitely pay off in the long run. You may be extremely lucky and know a fellow craft business owner who is willing to share their sources, but if not, a trade show is a great place to start.

It can take contacting several sellers before you discover the perfect match for your requirements. It is important not to settle for the first quote you receive, you must base your decision on the quality of their products, their competitive prices and the customer services. Another suggestion would be not to buy an extremely high quantity to begin with just to take advantage of bulk pricing. You should make sure the item you wish to make with the supplies will be a seller and then increase your purchase when appropriate.

All wholesalers have a minimum order requirement. Keeping the idea of cost control in the forefront of your mind, order the minimum quantity. Check what payments will be accepted. You are likely to find that as a new buyer, you will need to pre-pay with a cheque, credit card or perhaps cash on delivery. If you become an established buyer with your seller, you can probably set up a 30-day credit account.

One final thought on production is that some of the best materials can actually be free or very low in cost - fallen leaves, sea shells, thrift store items, charity shops and vintage bedding all make fantastic supplies and materials. But, it is important to remember that these sort of materials are not always readily available therefore collect and gather when ever possible. Taking the children to the beach? Have a hunt for shells or such like! You never know when that pretty little shell / vintage throw / oak leaf will come in handy!

Monday, 17 August 2009 | 0 Comments

Business Set Up Part 10 - Packaging

Packaging may be the last step in the design process but, it is still an important step and still requires thought and planning.

Some crafters, in simple haste to get their items listed, just stick on a quick label and this can sometimes look mismatched. Good packaging can enhance the value of your product, strenghten your brand and draw attention to the item if it were in a physical shop.

It is no good however being all packaging and no substance! You will need to find a balance between your product and packaging. What you choose need not be expensive - it just needs to look professional.

Ideas you might like to consider include printing labels with your logo, use left over fabric to make tags, include an information sheet explaining your company history and if applicable, include information on how to care for your product.

But, the number one tip I can offer for packaging is it must always be marked with your company name and logo and if space allows, your website.

For Butterfly-Crafts, I have all of my cards packaged in a celophane wrapper and if applicable a sticker saying that the card is blank on the inside. I plan to develop a sticker saying this but with my logo. I also ensure that when I mail off an order, there is a business card and perhaps another promotional item but more on those at a later date.

Friday, 14 August 2009 | 1 Comment

Business Set Up Part 9 - Plagiarism

In the last Business Set up blog, we looked at product research, this time around we are going to look at how research can sometimes go that step too far into blatant copying and how your product is a mirror image of someone elses work.

With so may crafters out there, the creative industry has a common problem - plagiarism. When you see that a particular product is successful for a business owner, you may be tempted to emulate their work hoping it will be successful for yourself.

Imitation may be the sincerest form of flattery but, copying someones work just isn't good business practice. It can be OK to use ideas as inspiration or to learn a new technique, but, this must be treat as a means to an end and not a route to the final product.

As a designer, you must exercise great caution when you reproduce an existing pattern or image. You must check any copyrights and that images are royalty free.

We all know by now that the craft market is extremely competitive and designers need to consider protecting their work. The two main means of this are patents and registering for a copyright. In a nutshell, patents are for new discoveries and inventions whereas a copyright protects original works of authorship including illustrations, patterns and photographs.

Once you own the copyright, you have the exclusive right to reproduce and distribute the work and create any derivatives.

Obviously registering for a copyright or a patent will not prevent someone else form making something similar but, if someone were to reproduce your work as a mirror image, you will have the necessary legal protection in place.

Monday, 10 August 2009 | 1 Comment

Business Set Up Part 8 - Product Research

It's now time to think a little about researching a new product line. Creating your product is a personal process but you are placing that product in a market for consumption therefore people have to want to buy it!

You need to figure out what the buying public actually want (add that to your hard goals list). Flick though the 'lifestyle' magazines, look at trends, visit local shops and attend craft shows or trade fairs to seek out your future competition - it will all help! But ask yourself these questions:
  1. What products already exist and is there already market saturation?
  2. What products are missing?
  3. What trends did you notice?
  4. At craft shows, how many tables are selling similar products?
  5. Why did certain designs appeak to you?
  6. What are the wholesale and retail prices?

Attending a craft fair or trade show is a fantastic method of research. However, try not to make it too obvious you are on the hunt for ideas! Trade shows can be hard to access initially as you often have to prove you are a legitimate business. But, once you gain entry, check out the floor plan and booths you wish to visit and get moving! If you are able, pick up a price sheet and catalogue and always keep a notebook handy to write down the information - but perhaps over a coffee and not infront of the booth.

Craft fairs can be easier to access, I attend a minimum of one a year to check out what's new and behave like a shopper - all in the name of research for Butterfly-Crafts you understand!

If you return home in a major panic about all of the work required to reach the standard of those at the craft shows or trade fairs just remember - everyone had to start somewhere

Coming next time in the Business Tips (monday) - Tempted to copy?

Friday, 7 August 2009 | 0 Comments

Business Set UP Part 7 - Capturing Ideas (Pt2)

Last time we looked at developing ideas for product, this time we will look at capturing ideas and setting goals.

It is so important to seize any creative opportunity that presents itself. You might think of something when you queue in line at the grocery store or when you drive to work, or even when relaxing in the bath. But no matter when it happens, it is important to capture any idea so keep a notebook to hand.

Another important activity is to set yourself goals - both easy and hard. Easy goals might be something like choosing a location in your house from which to run your business or, writing a list of items to make ot beginning to network in forums. When I set up Butterfly-Crafts, choosing a location was really easy, the computer is in my bedroom and my craft supplies are in the spare room so I flit between both.

Harder goals often revolve around completing a project and the business aspect of your business - opening up a business bank account for example if it is necessary. Although Butterfly-Crafts has been functioning for over four months now, i still have harder goals like updating Flickr, making more of my Facebook Fan page, creating a newsletter template and consolidating my new supplies store - but more on the latter in another blog.

Coming next time on Business Set Up (friday) - How to go about researching ideas.

Monday, 3 August 2009 | 1 Comment

Business Set Up Part 6 - Capturing Ideas (Pt1)

Inspiration can present itself in so many ways; perhaps it might be a complete idea of just a tiny little acorn of an idea. But, sometimes it is the little acorns that set your products apart from the rest - from tiny acorns grow great oaks afterall.

It can be helpful to start the ideation process off slowly, beginning with a single idea rather than a whole collection. I for example think of an idea for 1, maybe 2, cards rather than think "I need to create a line of anniversary cards". Document your ideas process in a pretty notebook and do not get too bogged down with time or budget as these can be altered. It is also important not to write off your mistakes too quickly as you can learn from them.

If you did want to create a collection, then focus on a single element or concept to ensure that the collection is memorable without one item take the pride of place.

No single item will please all buyers which is why it is important to vary your items in purpose, price and production. Customers like variety which is why in Butterfly-Crafts I have complicated cards like Iris folding or Flowersoft and then more simpler cards such as Birthday cupcakes.


It is also important that a good number of your items require very little labour time otherwise the craft that you call your labour of love will soon become labourious.
Coming next time: Business Set Up Part 7 - Ideas Part 2

Monday, 27 July 2009 | 0 Comments

Business Set Up Part 5 - Brand Identity

Last time we looked at creating a mission for your business, this blog will talk about brand identity. By creating a brand, you communicate a message about your company to other peope. But, a brand is not just about a logo, colours and stationery but about an entire idea. If I asked you how would you like other people to describe your business, what would you say?

When establishing your brand consistency is key. Think about what your business represents and relay this in your products and photographs, website, blog, business stationery and packaging. If, for example, your logo is comical yet your website/blog is deadly serious, your message will be mixed. The brand you decide on whould not only reflect your business personality but be appealing to your customers - both potential and current.

When I first set up Butterfly-Crafts I created my own banner in photoshop and it was terrible! Then I found LibertyDoll on AF and she created me a wonderful banner. However, in July of 2009 I decided to rebrand myself and worked with LibertyDoll again to design a new set of banners and the results you can see on this blog in the header. I also use it as my banner in my AF store, on promotional materials like pens and use the avatar seen here on my promo materials. To continue the purple theme, my AF studio is purple, I photograph on a silver background with purple butterflies and a purple pen in everything. I try to carry this over to my packaging where possible, including branded business material and if multiple cards are purchased they are tied with purple yarn.

Take a look at your brand and think - is it consistent and what message am I trying to convey? It would be great if you'd like to leave a comment and tell me about your brand.


Monday, 20 July 2009 | 0 Comments

Business Set Up Part 4 - Creating a Mission Statement

Over the past few business set up blogs we have looked at the technical side of things. Now it is time to talk style! The biggest aim you have is for someone to see one of your products and recognise it as your brand.

Defining a style does not need to be complex, especially if you keep it real and make it an authentic expression of who are you because you will be more satisfied with the end results if you have stayed true to yourself.

To help me stay focused, I created a creative mission statement for Butterfly Crafts. When you know what your goals are, it is far easier to work towards achieving them! However, creating a statement is not easy as you will need to be introspective and visualise what inspires you!

My mission statement is:

1) Ensure that I enjoy what I am making and be conscientious when making,
2) To make all of my items by hand

3) To design cards that I believe will bring a smile to the face of the recipient

I would hope that when the brand of Butterfly-Crafts: Handmade Cards and Gifts becomes more established, someone would see one of my cards, such as these shown here, and think "I know who made that!"


Friday, 17 July 2009 | 0 Comments