Ah, TAXES

Yes, ladies and gentlemen, tax time is upon us!

If you are just staring your business or are still in the planning stages of starting a business, do yourself a giant favor and really spend some time planning and researching how you plan on keeping your financial records. Believe me when I say it will save you a lot of time and maybe even a few headaches and tears down the road.

The IRS's website (www.irs.gov) has a wealth of information! Though it may seem a bit overwhelming with all the publications, forms, instructions, and other various items, take a few minutes to really become familiar with the website.

You can go here to find information on starting a business. And here for information on operating a business. And finally, if you're looking to close shop, look here.

If you're planning on operating as a partnership, look here.

Organization is key! I have several 3-ring binders where I keep all my records. While I have heard of the fabled shoebox method of record keeping (you know who you are!), I strongly advise against it for two major reasons:
1. If EVERYTHING is in a shoebox, how do you know how your business is doing? Are you in the red or black? Are your supplies being purchased at the same price as your last order? How much have you spent on advertising this month? This quarter? Granted accounting software can alleviate some of this uncertainty...but only if you use it properly.
2. Accountants don't work for free. If you walk into your accountant's office with a shoebox full of paper work, he/she will either:
a) Laugh. Then tell you to come back later after YOU'VE straightened out your box.
b) Charge you an arm and a leg because it took him/her hours to sort through the chaos.

Save yourself time and humiliation by being organized from day ONE!

If you choose paperless record keeping, always have the information backed-up on a CD or in a journal. I learned this the hard way. I had to spend days reentering information in the computer (luckily, I had everything in my 3-ring binders, but a CD would have saved a lot of keyboarding).

Next...Quickbooks and other accounting software....

A GOOD Read

Though I think I have read what seems like hundreds of books on crafting and the business of crafting, I am just now getting around to compiling a list of some of the best/better books I have read.

In no particular order....

Crafts and Craft Shows: How to Make Money by Philip Kadubec
Though this book was written in 2000, it is written from the perspective of a seasoned crafter who has been touring the Pacific Northwest exhibiting at craft shows for 18 years. It covers such topics as: marketing yourself and your product, pricing, show selection, booth display and set up, customer service and more!
The book is an easy read and written in common language...in other words, you won't need an art degree or business degree to understand any of the topics.

Marketing and Selling Your Handmade Jewelry : The Complete Guide to Turning Your Passion into Profit by Viki Lareau
Published in 2006, and written by a jewelry/business mentor, this guide to entering the jewelry business compiles firsthand knowledge and wide experiences for those looking to take their hobby to the next level. The books starts with the basics of assessing style, time commitment, and target markets Equally important, the sections progress through business licenses and tax numbers, developing a cohesive presentation for a business, and the fine art of pricing for a profit.
Another easy read. I finished the book cover-to-cover on a train ride to Chicago (1 1/2 hrs.).

More to come.....

Just a CLICK away

Or maybe a snap.

Great photography. But why is photography important? The obvious reason is that because most crafters either participate in an online gallery of sorts of have their own ecommerce site. Customers cannot touch your product, so you must be able to provide an exceptional visual representation of your product coupled with a wonderful (and accurate) product description.

Therefore, photography is another subject and art form that, besides photogs themselves, crafters need to develop (no pun intended). I'm sure most of us can spot a great photograph right away. It is crisp, clear, bright, in focus, and interesting. More than likely the subject of the photo is quickly identified. These type of photographs are what draw people in. They want to see more, know more, and get their hands on whatever is in the photo. Obviously, this is the type of photography we want to use for our products.

A not-so-great photo is muddy, dull, uninteresting, maybe even distracting. It's a real ho-hum, boring, don't-even-glance-at-it-twice kind of photo. Again, obviously, this is not the kind of photos we want to represent our work.

In my opinion, this is one of the most difficult topics an artist will tackle. How does one get "great photos?" Some folks will tell you it's all about your camera, some will say it's the photo editing software, some will say lighting, and still others will say something entirely different. I have found the truth lies in all of these factors. Some more than others, I must add.

Normally I would just tell you what has worked for me in the past and what learning curves I have had to overcome. However, when it comes to photography the variables are just too great. I don't know what type of camera you have, what your studio set-up is, what type of photo editing software you have access to, what type of spending budget you have, etc.

At this point I am going to make a suggestion that some readers may dislike, and other may love, but....GO READ! Search the bookstore for books on photography, read forums, get a copy of Consumer Reports that discusses cameras, find a few copies of various craft and art magazines that have articles on photography, scour the library, ask friends and fellow crafters for opinions. In a huge nutshell....do some homework. You will save yourself some pain and agony and maybe even some cash by doing some very pointed research.

Where should you start? I love the library. More than likely many of the magazines I have suggested are available (for free) at the library. Ask friends and coworkers. (Some may think photography is a highly guarded secret, so don't be put off if they zip their lips on the subject.)

Of course...take a few shots and choose the ones that YOU think are best and ask for outside opinions. Listen to what they say and ponder it. It is always difficult to separate yourself from your art, and as a human, criticism is hard to swallow. But, hey, when you are able to look at your art or photography with neutral eyes, good things are sure to follow.

Now go do your homework!

HOW much?

Ah, yes. This always seems to be a difficult issue to tackle. Why? Because most crafters undervalue their work. More specifically, the time and energy they put into their work. And then there is always the hobbyists vs. the artist debate (but I'll save that for another day).


There are a few formulas commonly used to figure out how much you should price an item. It looks a little like this: CoGS + overhead + labor + profit x 2 = Retail Price. There are other formulas too, and most are a variation of the one I just presented. For example, other industries may use a 2.3 multiplier rather than 2, etc.

CoGS is the cost of your materials. Simple.

Labor is the wage you pay yourself. Usually this is an hourly rate, but I suppose you could pay yourself a flat rate or by the piece. The important thing to note here is to be confident in your skills and workmanship and to pay yourself accordingly. All too often crafters and artists have the "my work isn't good enough to command $XX/hour" mentality. Humbug! YOU would gladly pay someone else $XX/hour to create a custom piece for you, so why should it be any different when you are the one doing the creating??

Profit is the money you make above your costs. This money is usually reinvested in the company for things like new equipment or new technology.

Overhead is one of those words many people use as a catch-all for every thing else that costs money in the business. Most overhead are expenses you incur on a monthly basis. Some of these items include: insurance, rent, office supplies, show fees, tools, software, display materials, packaging, travel expenses, promotional materials, etc.

A word of caution: when you first start making pieces, your labor time will be slightly higher because you may not be as efficient as you can be. This will change with time. Secondly, if you are not buying your supplies at true wholesale, rock-bottom prices, you will be priced out of the market by other sellers who do buy supplies for less. Shop around for low prices (but don't sacrifice quality). Some wholesalers will only sell to bona fide businesses. So, if you do not have a business license or a tax ID...get one!

Next: A little more on pricing.

A few words about QUALITY.

Quality, especially for a new crafter or artist, is one of those things many feel they can cut corners on. The mentality goes something like this: Silver-plated earring hooks look just as nice as sterling silver hooks, and I can purchase the silver-plate for less and pass the savings on to my customers. No! Don't do it! Even though your mental justification sounds right to you, today, at this moment...please reconsider.

Today and even tomorrow the silver-plated earrings will look nice. But as your customer handles the earrings and wears them the silver-plate wears through. Now what does the customer do? Maybe she just throws them away. Maybe she returns them to you and asks for a new pair. Maybe she tells her friends that she is disappointed in the earrings she bought from you. Maybe she decides never to purchase anything from you in the future. Maybe...??

Spending a few extra cents on solid sterling silver, gold or gold-filled earring hooks will certainly ensure your customers will not be disappointed in the performance of the earrings. In fact, using quality materials tells your customers that you have pride in your products and care about your reputation and the longevity of your product.

The next aspect of quality has to do with your workmanship and skills. Using gold earring hooks aren't enough if the wire ends are sharp, rough or otherwise poorly made. I highly recommend making a few pieces of jewelry for yourself and "road testing" them for a week or two. Is it comfortable? Sturdy? Does the necklace lay nicely across your chest? Do the earrings get tangled in your hair? Is the bracelet easy to clasp? Again, these are just a few things to consider when thinking about quality.

Use good materials and use excellent workmanship. Always!

Next: Pricing!

More defining STYLE

Being able to define your work will allow your to determine the best outlets for your work. In other words, if your work is a little kitschy and you use a lot of upcycled goods and ephemera in your pieces, an upscale art gallery probably isn't the first place your should approach in showcasing your work. Perhaps a hip and trendy gallery near a college is better suited for your type of work. This necessary step will also help you define your customer base. (And remember, your can't sell to someone if your don't know who that someone IS!)

This next step is, or can be, a long process. Developing your unique style. Just about every fashion design and known artist has a distinct style. No, you don't have to reinvent the wheel, but you do have to make it your own wheel. Take good 'ol Norman Rockwell for example. Just about everyone can recognize a Norman Rockwell painting. Why? His painting have a distinct style. Is the subject matter unique? No. Is applying paint to a canvas unique? No.

I say this can be a long process because in the beginning of your career, more than likely you will create pieces based on work that someone else has already created. Take bead jewelry for example. There are tons of bead magazines out there, and most of them all have "projects" for you to try to replicate at home. There is nothing wrong with this, but who's style is it? Certainly not yours. As you become more comfortable with your skills, a style will develop. I promise!

Next: Quality.

WHAT do I do?

Good question. Have you been able to pin-piont exactly what it is you do? Sure, it's easy to define your work through the process it takes to create the work. Example:

• I paint. Therefore, I'm a painter. I make and sell paintings.
• I string beads. Therefore, I'm a beader. I make and sell beaded items.
• I make clay pots. Therefore, I'm a potter. I make and sell pottery.

Now it is time to really expand the definition of your work. Saying, "I'm a painter" doesn't really SAY anything about your work. (my 3 year old nephew is a painter too!) Take for instance, an art museum. Every wall is sure to be covered in paintings, but each painting is different. Unique. Not just in subject matter, but technique too. Bold, subtle, modern, still life, nonobjective, etc.

Let's take a baby step. "I am an impressionistic painter." This one word adds so much definition to your work. People can almost picture in their minds what it is you do now. Maybe take another step. "I am an impressionistic painter who works in a warm color palette."

Why is this important? Because if you can't define your work, how can anyone else? Defining your work gives you focus, purpose, a direction, a style, meaning, life. Imagine you are being interviewed by your local newspaper as an up-and-coming-artist....what would you say about your work to make people interested in knowing more about YOU and your WORK.

If your having trouble defining your work, ask a friend or relative for some input. Lay out a bunch of your pieces, and ask them to come up with a word or three that describes your work. Watch them carefully. Look for emotion. Read their body language. If they are having a hard time coming up with any words...back to the drawing board for you!

Next: more defining your style...

But it looks so PRETTY...

Yes. It is pretty.

The font you want to use for your business name is very important. Why? Take Coca-Cola or Disney for example. Even if the words Coca-Cola or Disney were written in some foreign language, you would still recognize it because of the unique font they use. Your font, in essence, becomes part of your brand identity.

But, let's back-up a bit. Go find a business card. Any business card will do. What do you notice about the print? Does the color "speak" to you? Is it easy to read? Are the letters too small? Are the letters so swirly and curly (my term!) that you can't distinguish where one word ends and the next word begins?

A little planning goes a long way. Somewhere down the line you may decide to have business cards printed, a banner made, a website, maybe even a custom rubber stamp made with your business name on it. While detail is important, your chosen font must be:

1. Easy to read
2. Fit your business' personality (think funky jewelry = funky font, elegant jewelry = elegant font)
3. Can you live with it for a long time? (when was the last time Coke changed their font?)

Sit down one day at the computer (or with a sketch pad) and play around with your new business name. Try out different fonts and colors. Try out different font sizes. Bold, italic, underscore. Maybe even make an entire page of options and print them out. Hold the paper at arm's length and see how it looks.

Now for a small lesson I learned the hard way. Color.

If you like to match your colors (like I do), be prepared to sacrifice. Say you choose a really light shade of teal for your font and business color. Weeks and months go by. You're getting ready for your first craft show in a few weeks. It's nice to give your customers a little personal touch and give them their purchase in a gift bag. But wait. You search a few local papermarts and online stores for matching light teal shopping bags or tissue paper. Where is it? After all, if my printer can make light teal, why can't my paper supplier?

Short of ordering (very, very) expensive custom colored paper products, consider a coordinating color. Even if the coordinating color is black, white, deep teal, red, etc. You'll save time and money. And headaches!

That's enough to think about for today....

Next: What is your product?

I CAN do it!

OK. So now you've decided that you think you are ready to try your hand at crafting for a living. Well, don't quit you day job, yet!!

One of the first things you'll really need to ponder is your business name. Some artist simply use their name, or a version of their name. For example: Dawn Smith, Dawn Smith Studio, Designs by Dawn, Designs by Dawn Smith, D. Smith Studio, D.S. Studio, etc.

Some points to consider are:

• Is it easy to say? People need to be able to say your business name. When you think of something, say it out loud. Several times. Does it roll off the tongue or is it more of a tongue twister? If customers can't say your name, how will they refer you to friends and family? Think word-of-mouth!
• Is it easy to spell? If you intend on having a website or be listed in the phonebook, you want customers to be able to find you! If they can't spell the name of your business, this task will be very difficult.
• Is it flexible? "Stained Glass by Dawn" might be too specific. It doesn't leave much room for expansion into other forms of art.
• Does it fit your image? Cute name = cute product. Sophisticated name = sophisticated product.
• Is it available? This one is a little tricky. For obvious reasons you do not want to choose a name that has a copyright, trademark, or is otherwise registered. Start by checking the phonebook and doing a search engine check.

Next, we'll cover fonts for your business name.

The Rumor is TRUE

Yep. Be prepared to do what you love! Be prepared to do it a lot less often!

I never realized how much time it takes to RUN a business. Inventory, bookkeeping, designing a portfolio, printing and designing business cards, marketing, making contacts, looking for sales leads, deciding which craft show seems promising, etc, etc, etc. I spend so much more time at the computer and on the phone than I actually spend CREATING that thing I love. Jewelry.

If you think going into business means crafting all day.....think again. Think long and hard. Don't just take my word for it either....next time you visit a craft show, ask one of the vendors what a typical week is like. Ask them how their day has been.

Chances are they woke up way too early, loaded tables and boxes of product into the car or van, ate breakfast on the road, with luck they didn't get lost on the way to the event. Assuming they arrived at the beginning of set-up time, usually between 7am and 8am, they check-in with the promoter(s), find their booth assignment and unload all their tables and product. If the vendor is a bit seasoned, they can probably have everything set-up in their booth in less than two hours. With a little more luck they finish booth set-up with time for a potty break, quick shot of caffeine, and a few minutes to check-out the competition and layout of the area. Now it's 5 minutes before "showtime"....brush your hair, check you breath and teeth, get comfortable, and smile...it's going to be a long day.

Personally, a show day can last 12 or more hours from the time you wake-up to the time you get home and unload the car/van. This of course is not including follow-up and post-event bookkeeping and updating inventory levels. That's a few more hours.

Do you have the time and dedication necessary to be sucessful?