Things To Consider When Starting A Product Based Business
There are a lot of great ideas for handmade business, but have you thought yours through? Here’s a list of my MUST CONSIDER items before starting a profitable handmade business.
What resources do you have available to start out? Would it be feasible to start small with your idea, or will it require an upfront investment? Either is fine, of course, you just have to plan accordingly. For example, I sell items that use paper and cardstock, and sometimes fabric. I was able to start small, with punches and small amounts of cardstock. I had a sewing machine already, and items like glue and thread are not costly. Now, I actually save quite a bit of money buying in larger quantities. But it wasn’t difficult to purchase small amounts at first, and my supplies are not terribly pricey. However, if you want to make tshirts, for example, you’ll need to have plenty of sizes and colors available, even just to start out, and that represents a bigger investment. Be practical about what you can afford to start with, and work from there. If you only have a small amount of seed money, choose something that you can afford to start well, or wait and save up for your investment.
How much space do you have to work with? Do you have a room that you can turn into a workspace? A desk? Your dining table during the day? Be practical about the amount of space you have, and who you have to share it with. If you are making beautiful wedding invitations, you do not want to share that space with a toddler. Perhaps digital items would be perfect for someone with a small space, who would only need a computer and printer to create a shop. Or something non messy, like sewing items, that could be put away in a tote with a lid when you aren’t working. Think of your space carefully if you are thinking of making items that are messy, must be spread out to dry, large, or could be easily messed up by other people being in that space. Find an idea that works with what you have.
What kind of time do you have to work on this hustle? Some handmade products can be swiftly batched or reproduced. Some will take time and concentration. Think practically through your available time. You may want to do pottery, but do you have to keep stopping and washing up to care for children as well, or tend to other responsibilities? You may want to do embroidery, but the amount of time each piece would take with what you have available would mean you can’t keep to deadlines. Maybe your item goes viral, but you work a full time job as well, and this would mean you never got to sleep! Be realistic. What can you do WELL in the amount of time you have available?
Think through your shipping BEFORE you invest in supplies and start creating. I cannot tell you how often I hear people talk about how shipping eats into their profits. You need to account for what things will cost to ship, and how you will package your items BEFORE you get started. I truly think this is a top mistake of makers. If you are on a tight budget starting your hustle, I really recommend creating items that are fairly uniform, not very heavy, and fit in common sized mailers, nothing specialty. Expensive shipping supplies that can only be ordered in bulk can be very hard on a new seller with a tight budget. If you can take advantage of the postal service’s flat rate mailers, even better! Then you will always know what something costs to ship within the US, regardless of location or weight. Believe me, this is such an important step- don’t skip it!
What is it you want to create? Have you considered your investments of resources, space, time and shipping strategy? Let me know in the comments!
