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I am up to Part 4 of my Getting Down to Business Series. I think the best way to begin is with a brief recap of the previous 3 posts:

Narrowing Your Focus

1. Why do you craft?
2. What inspires you?
3. Who is your customer?
4. What is your niche?

Building a Brand

1. Who am I? (What 10 words describe you?)
2. How can you use these words to create an image for your craft?
3. BE RECOGNIZABLE (Establish a common theme for every aspect of your craft.)

Wrapping It All Up

1. Do your printed marketing materials convey your overall image?
2. Does your packaging presentation complement your overall image?

If you have not done so already, use these questions to create a brand building worksheet for yourself. Please feel free to review these previous posts for how I answered those questions and how this exercise helped me establish my retro beach image.

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CREATING A MISSION STATEMENT

A mission statement is simply a statement of the purpose of your business. A good mission statement will provide a path for the development of your business. So, if I were to create my mission statement, it may be something like this:

“I sell leather bracelets, sometimes necklaces, too.”

Ugh! Blah! Yawn! I think I need to look more carefully at this…a good mission statement should contain these components:

1. Key Market – who is your target customer?
2. Contribution – what do you provide?
2. Distinction – what makes it unique?

Ok, so how about this:

“I create boho beach chic jewelry to accessorize a free spirited lifestyle.”

Ahhh…much better, but does it stack up:

1. Key Market: beach lovers
2. Contribution: casual jewelry
3. Distinction: hand-crafted free-spirited designs

Remember, we are in the business of creating, so your mission statement should be creative as well. It is ok to imply, rather than spell out, your mission.

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GOAL SETTING

What should this business accomplish? Is your crafting business simply a hobby? Is it also a part-time source of income? Would you like to make it a more viable source of income? Three major factors to consider are 1. how much time you have to invest; 2. how much money you have to invest; 3. how will you position your business.

Serendipity Blu started out as a hobby, but I am currently developing it into a part-time source of income.

How much time do you realistically have?

Do you work 40 hours a week?
How demanding is your job?
Do you need to travel for your job?
What are your family responsibilities outside of work?

Are you a stay-at-home mom?
How many children do you have?
How old are your children?

All of these questions pose important scenarios when determining how much time you have to devote to your crafting. I work a full-time relatively demanding job. I am not married and I do not have any children, but I do regularly socialize with friends, travel, and attend concerts. I am fortunate that I do have quite a bit of free time, but I do not want to spend ALL of it on my business. There is this wonderful quote by Monty Python actor John Cleese, “If you want creative workers, give them enough time to play.” Many of my inspirations for designs or marketing concepts do arise from my unwind time. Since I consider my crafting business a part-time endeavor, I currently spend approximately 15-18 hours per week on it. I am willing to increase this time to 20-24 hours per week to prepare for a specific event.

How should you divide your time? There are several components to a crafting business: developing and researching your designs/materials; executing your designs into finished items, and marketing/networking of your business. I typically spend 3-5 hours per week on marketing and networking. This time includes internal marketing on Etsy, external marketing through this blog and on Pinterest, and developing new printed materials. Approximately one week a month, the balance of my time is spent on development. I take this time to read through my macrame books to find different design ideas, to create prototypes of the designs, to find just the right materials to accent the designs, and to research names for the designs. The other three weeks of the month are spent executing the designs into jewelry that I will be selling.

What is your financial budget for building your business?

I am fortunate that I have enough sales on my Etsy shop that it basically sustains itself. But since I am in the process of growing, rather than maintaining, my business, I am now in the precarious position of financing this growth. One thing I will NOT do, nor do I ever encourage readers to do, is to put more supplies on a credit card than you can pay off each month. That is just simply a recipe for financial disaster. Instead, I use a percentage of my DISPOSABLE monthly income. I define disposable income as income that is left over after all bills are paid, savings is set aside (for both retirement and long term goals), the car is filed with gas, and groceries are purchased. I also pay for concert tickets and save for vacations with this disposable income, so I am currently using about $100 per month on additional business supplies. I encourage everyone to also develop a budget worksheet to see how much you can realistically set aside each month for your business.

How will you position your business?

Is your craft business strictly online? Do you have both strong online sales and a craft show presence? Do you mainly sell at craft shows, but want an online venue for repeat sales? There is no right or wrong way to position your business, but It is important to determine this when you are setting your business goals.

I currently have just an online presence, but I plan to expand and sell at some craft shows this year. A good part of my financial budget is earmarked for buying enough materials to make a good surplus of jewelry to sell at these shows and and for purchasing display items.

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SMART GOALS

A SMART goal is a goal that is Specific, Measurable, Attainable, Relevant, and Time-Bound. To dissect further:

Specific: what precisely do you want to accomplish?
Measurable: what is the concrete criteria for measuring progress?
Attainable: is this goal realistic?
Relevant: why is this goal important?
Time-Bound: when does this goal need to be accomplished?

One of my business goals for this year is to increase my item listings on my Etsy shop to 100 by the end of the year. I plan to do this in steps: 50 items by spring; 75 by summer; 100 by the holidays.

Is this a SMART goal? Let’s check it against our criteria:

Specific: this goal precisely outlines the numbers I want to increase.
Measurable: this is a goal I can easily measure on Etsy
Attainable: I am increasing my inventory by 25 items every three months, or about 8 items per month. With the amount of time I have outlined for my business, this is a very realistic task to complete.
Relevant: this goal is pertinent to increasing my revenue – the more items my shop has, the more exposure it receives, and the potential for sales increases.
Time-Bound: this goal has distinct time limits for completion.

My other goal for this year is to participate in craft shows. This goal is rather vague; let’s see if we can turn it into a SMART goal:

Specific: I need to include specific number of shows to participate in this year.
Measurable: while vague, this is an easily measurable goal.
Attainable: I have to make certain I have the time and resources to prepare for the shows.
Relevant: while vague, this goal does focus on an important aspect of the crafting business; there is potential for increased revenue.
Time-Bound: I need to specify which times during the year I want to participate in each craft show.

This year, I plan to participate in 2 craft shows during the summer and 2 craft shows for the holiday season.

Thanks for stopping by and joining me on my continuing business planning journey. I hope that I have given you some concrete ideas for building YOUR business. Stay tuned for the last two posts in this series: Setting Up Shop and Marketing with Social Media.

Shanti,
~Erin

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