I think a lot of craft businesses get started the same way – you have a process or technique that you love and you think, “I could do this as my job!” Maybe you went to school to learn this skill, or maybe you taught yourself. Or maybe it’s a product you started making that you think is amazing. And you think other people would like it too. Regardless, you start with this passion and desire to bring your creative gifts to the world.
And then reality strikes. You find out that there is more to running a business than making things you really love. There’s the day-to-day management – the marketing, the bookkeeping, the sales, the customer service – the list seems endless. So most people do one of two things:
You embrace the business aspect. You enter do-it-yourself mode. You become the marketer, the PR person, the order-packer, the bookkeeper, the web designer. And by the time you do all that, you don’t have time to do the creative stuff that you love. The stuff that made you start the business in the first place. The stuff that makes your business uniquely you.
or
You don’t worry so much about the day-to-day business stuff. You just focus on making your fantastic product and keep wondering why the world isn’t beating a path to your door. You ignore the bookkeeping stuff, but constantly wonder why you aren’t making any money. You dream big dreams but can’t get results. You keep working your day job, dreaming of the day your side business will take off so you can quite your day job, but that day never comes.
But neither one of these are the path to a successful business. Sure, you do hear the stories about the few lucky ones who manage to break through. But more often than not, these scenarios lead to frustration, burnout, and business abandonment. I see them happen again and again in the craft community. Sometimes, I even see them happening to myself.
The other week, I read this fantastic article in the Wall Street Journal titled, “What’s Holding Back Women Entrepreneurs?” The article talked about some of the reasons why women-owned businesses tend to be smaller than those owned by men. Among the top reasons cited by the author were lack of business growth planning and access to capital. I was really struck by these (not just because a majority of my readers are women) but because I see the same trends in craft businesses.
After reading the WSJ article, I believe there are three reasons why craft businesses struggle:
We don’t plan for growth.
We don’t ask for money.
We don’t ask for help.
- We don’t plan for growth – There are many different strategies for growth – branching into new markets, increasing market share in your current market, adjusting your pricing to reap more profits. But they all require a plan. In the WSJ article, the author points out that most advice for women entrepreneurs focuses on start-up, rather than long term strategic planning. And I think the same holds true for craft business advice. It’s easy to find info on starting your craft business. But where is the help when you want your business to get bigger? Or when you get stuck in the dip? Or when you want to build an empire? Sure, I think many of us dream about growing our craft businesses. But a dream is very different than a solid plan backed by an understanding of the numbers and markets.
- We don’t ask for money – Out in the big business world, there’s this thing called venture capital, where other people (or businesses) give you money to grow your business. Or, if you don’t want to go that route, there are other options – small business loans, lines credit, friends and family. The reality is that running a business requires money, and most businesses borrow it at one time or another to help them grow. And a craft business can be very capitol intensive. (All those tools and supplies and materials, not to mention show fees and marketing materials.) Yet, it seems like there is this myth floating around the craft world that the way to fund your business is through personal savings, or the cash from your day job. Or, unfortunately, by racking up debt on the credit card. It often seems like craft businesses can’t get to the next level, whether that’s going full-time, hiring an employee, or entering into a new market, because of a lack of funding.
- We don’t ask for help – I’m not talking about asking for help in the sense of asking for advice. What I mean is that DIY mentality of having to do everything yourself. Often, taking your business to the next level means bringing in outside expertise, outsourcing some aspect of the business, or bringing in another set of hands. One of the best ways to grow a great business is to put together a really great team. But we don’t often talk about the crafts team. Instead, we tend to perpetuate the myth of the lone craftsmen or designer. Or perhaps, you’d love to hire help, but can’t seem to find the cash to do so. Which just brings us back to #2, you don’t ask for money.
I’m not trying to point fingers here. I struggle with the same issues in my own business. But as I become more aware of them, I’m trying to work through them. So that the next time my business feels stuck, I don’t stall out.
I’m also trying to understand these issues so that I can provide the best possible information and resources here on Crafting an MBA. I don’t like to see craft and design businesses get stuck, and I certainly don’t like to see them fail. I have this vision of a great, big, beautiful craft/design empire, where we take on the big box stores by providing well-made, well-designed products that fit our customers needs. Where we provide responsibly made, ethically sourced, high quality products. Where we make a good living designing and making those products.
So that’s my goal here on CMBA (in case I haven’t been clear up until this point). I want to talk about all those details that make the difference between success and failure. Growth and planning. Numbers and finances. (And yes, marketing and sales and all those other things too. But without a strong foundation, those things will only take you so far.) I want to make it my business to help you with your business. I want us all to grow and prosper and profit together.
So tell me, what do you need to take your craft business to the next level? What do you need to get unstuck?
PS. Need a little 1 on 1 help getting your business unstuck? I’ve set up some great new coaching and consulting packages to help you grow your business.
PPS. In case you haven’t noticed (or are reading this post via RSS) we’ve got a great new look for CMBA, courtesy of Tara Gentile.
I think these are really valid points. I know I’m not alone when I say that I struggle to outsource ANY part of what I do – it’s so hard to release any aspect of control for me (I even get nervous when my husband helps out preparing packaging – what if it’s NOT QUITE THE WAY I WANT IT??).
There’s also the feeling that as a handmade designer, the customer expects me to be the one doing everything… so I like to be genuine to that expectation.
I think the customer’s expectation is a valid concern. However, that just means that for the sake of your own growth & sanity, you might need to reeducate the customer. Outsourcing doesn’t mean you loose the “handmade” aspect necessarily.
It means you gain better control over your vision for your brand. You do more of the things that define your product and less of the things that don’t.
Hey Jess – thanks for commenting. I wonder, do customers actually have that expectation, or do you just assume that they do? I think sometimes as the business owner we put undue pressure on ourselves.
I also know that delegating can be difficult, but if you can find the right people it makes it so much easier. I’m sure your husband is a fantastic guy (especially for offering to help out) but if he isn’t working to your standards, then he probably isn’t the best person to delegate too. (I think that might be a whole different post, about letting your family help with the biz…)
spot on. brilliant. love it.
the creative empire is upon us, my friend.
Yep, spot on.
One more thing that can get us stuck is too much production work. If you are too busy making the bread and butter and don’t MAKE time to design new, fresh work—then you can get stuck.
I do think money/capital/cash flow is the biggest factor. It takes money to make money. And the larger your business gets, the more money it needs.
I would love to branch out right now—am planning on doing just that. But I am kind of taking baby steps. If I had more capital, I could go ahead with my plans with a little more confidence.
Great point Danielle! I find that a new design, even a small change to one of your items, can really help you get “unstuck”. Its so important to fit “new idea” time into your schedule.
These three things are EXACTLY what I’ve been struggling with! I haven’t had enough time to create new things while meeting the demands of my customers, day-to-day administrative tasks that are way more time-consuming than I ever thought, and keeping up on self-promoting through my blog and social networking. I’m also holding on to a full-time job for money reasons, which takes even more time away from my biz. And finally, a good friend of mine is between jobs and literally offered free help… and I hesitated! I like the feeling of my business being all mine! How selfish is that? Thanks so much for this!
Great article! I have often been thinking about these three factors in my business. Thanks for freshening them in my mind to put a fire underneath me. Goooooo ladies!
Great job on the website, ladies!
I read that WSJ article too. I came away with this: Fear of Success and Fear of Failure. SO many of us have a fear of both. In another article I read in Forbes about maintaining wealth, the number one rule is staying highly centered, staying very focused. You certainly can apply that to your craft (not just building wealth, although yes, I want to build wealth from my craft!) Don’t let yourself get distracted. Find your strength and build on it without spreading yourself to do all things (jack of all trades). That’s where you run into problems because you dilute your strengths. Concentrate on what you do best and delegate to others. AND they say, be prepared to sacrifice and maybe some things in your life will be neglected in order to reach your goals. I read into that “family”.
Unfortunately with women, we have that first full time job, raising the family, making sure everyone in the household is fed, dressed, schooled and are productive little humans in society. Women who work at jobs too and have to come home to the “front”. Jeez! No wonder we’re held back! We want to carve out an tiny spot for our business too! And be Super Mom/Wife. I have drawn plenty of lines in the sand to “focus” on my craft and the number one person to ask for help, is your family. You can’t do everything, you’ll go mad! Get them to help you, delegate them to take care of the small stuff and leave them to it. Leave them lists and make them accountable. You’ll see they can do it. From hubby to even the little ones can set a table, to take magazines to the recyclables, empty the dishwasher and strip their beds, well, you get the point. Sometimes they don’t even realize you’re drowning, you have to speak up and let them know. You help them, let them help you. And don’t forget to say please.
I’m totally down with a craft/design team. So many designers worry about their “secrets” getting out. If you feel that way, sign a disclosure statement. When you let others into your “team” you’ll get a fresh prospective, show an idea for a pair of new eyes, road test your ideas with someone that is like minded as you. They may know a technique you’re not aware of. Let go and you will find that more creativity flows like a rushing river. You’re the boss and you control it. This will get you out of the creativity rut. Who gabs more than women? Take advantage of their viewpoints, wisdom and their experiences. We’re natural cheerleaders. We need each other! My business thrives on that.
Need more help? Go to your local high school and hire some summer help part time, right now. Teach someone, guide them, sweep the shop floor, show them the ropes. Just start once a week. Two or three hours a day. You might open a door to a new budding artist who has an unforeseen talent and how satisfying is that to watch develop? You’ll see that “Hey! Maybe I can hire/handle more help” and then find someone more regular when they go back to school if they don’t stay with you. Start small and see how it goes.
I love the idea about getting a local high schooler to help. I think it can be a win-win, because it can help them develop some skills. I have so many students in my classes without basic hand skills, so I love the idea of providing that to someone who is still developing!
I so appreciate this post. I think I fall into the second category, though this is my day job.
I suppose most of my problems come down to lack of funds. But, I’m just not willing to go more into debt. I put everything I make from this back into my business. And so far, that isn’t really working for me.
I’m so grateful for this blog of yours. Thank you for all that you are doing.
I was ready to outsource the sewing aspect of my work but that proved to be more difficult than expected — the results were frustrating. I think some work is hard to outsource but one could hire a person to work with at one’s studio so quality can be controlled. Now i have eliminated all sewing projects from my offerings except for one that I still do myself. I am learning that focusing and simplifying your product line is key.
I have realized I need alternate revenue streams (e.g offering workshops related to what I do) and marketing help. So those are two things I’m working on.
I like the articles you have here Megan! Helps people get focused!
Laura – Don’t forget that production isn’t the only things you can outsource. PR, marketing, bookkeeping, and lots of other business tasks can be outsourced as well.
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BrianIn nursing scohol we learned Maslow’s Hierarchy of Needs. They categorize our needs on a spectrum with the end goal of Self-actualization. Sex is considered a basic physiological need by all humans. I agree this isn’t necessarily intercourse, but that you must understand your sexuality and be comfortable with the amount and type of sex you have.
Thanks for this post – just in time for me!
I think what I need is courage to move on.
I have a few friends who offered to invest in my jewelry business, and I have plans to outsource some of the steps of my business at some point. I know that I have to do it sooner or later, but I am afraid. What if I loose my friend’s money – and I can pay back the debt in the other half of my life?
I always had some sort of (full time or part time) fix job that served as the basis for my living expenses, and I am afraid to give it up.
On the other hand I do understand – and experienced it – that the more you put into your business, the more you get back – on every level.
So this is why I am stuck – or better say I am moving quite slowly.
Any advice? I would truly appreciate it 🙂
Love your site Megan. I would would be interested in an article on the specifics of hiring someone – I would like to hire someone during the holiday season to help with packaging and other small tasks. What do I need to do tax-wise? If I have them baby-sit my kids instead of working directly for the business are there any tax advantages to that? Am I eligible for the childcare Flexible Spending Account being a small business? Or do I need to enroll on my husband’s plan at the beginning of next year? Thanks.
Emma – These are great questions. I’m going to do some research and work up a post for sure. Thanks!
I’m not sure what makes you think I expect a dotniaon. I actually had someone say if there was a link to donate, they would? and suggested I do it. The few that I have received are very appreciated and makes it more worth my time to do these videos.
Great post, and so true!
One of hardest things for me has been finding outside revenue to help fund the growth of my business. I’ve even looked to various arts grants in my area and a lot of them favor potters and textile artists, which is great, unless you work with glass like I do. I have a line of credit that’s filling up because it’s been such a challenge to find funding from sources that aren’t my own pockets! Where there’s a will, there’s a way, but sometimes I feel like it’s another full time job just to hunt down this sort of thing.
It’s great to see you address these challenges that every creative entrepreneur faces at some point in their career! Thank you!
I have been struggling with the financial side of this for a while. Knowing that it takes money to make money, we funnel cash into the business, and when it makes money, that goes straight back in to purchase supplies etc. In a ridiculous way, it seems that I can’t prioritize fundraising enough. Keeping things running day to day is an undertaking in itself with 2 small kids and other life things. I have been wondering recently if it would be tacky or genius to use
http://www.gofundme.com/
to raise money to take my business to a trade show in order to move to the next level. I don’t have a great support system financially, so I am not sure if this would work or not. Also to ask people beyond immediate friends and family seems counter-intuitive in some ways. Is part of the problem that we don’t want to look to anyone that we [our businesses] are doing anything but effortlessly thriving. Any input on this would be gratefully received!
Thanks for your idea about fundraising to take your business to the next level! Let’s be tacky and just do it!
I am another one in the same long long list of crafts business women struggling with the exact same issues Megan pointed. You’re so right on girl! I love your posts!! Keep them coming!
Great article – very thought provoking! I certainly struggle with delegation – I’ve hired teenage help in the past and it was money well spent. However, I’ll only delegate certain jobs at this point. I’m not ready to let go of some things quite yet. Loved your point regarding what you delegate – hiring a PR or marketing person is a great idea. Thanks for the blog – I’m loving reading it!
This post really stepped on my toes! Thanks so much for writing it. I often find myself stuck in the “I-Must-Do-It-All-Or-The-World-Doesn’t-Make-Sense” mentality with my business, and that can make for some very sleepless nights. It’s always nice to have a gentle reminder to outsource certain tasks or to simply ask for help. Thanks again!
Great article-all the points are what I am struggling with myself right now.
I am at the point where I know I can’t do everything myself (and be a nice person to be around)! I need to hire help or get an intern or two or three….
I am actually working on my business plan right now (thank you, megan), what an eye opener when you really sit down and look at your business on paper and start planning rather than always playing catching up.
Thanks for the great info and insight.
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Great article Megan! I am definitely a person who tries to do it all and has no time left to create. I guess I just need more time {and money, which will enable me to quit my day job and give me more time}.
I love the new look of the blog!
Great post — I fall squarely into the second example above. I agree with Rach W — I’m not willing to take on any more debt than I already have. That probably is limiting my business, but I just find debt so terrifying — I don’t even like having a mortgage! But, I’m embarrassed to say that it never really occurred to me to ask for money in the venture capital/small business loan sense. I’d love to see an article explaining how to connect with such investors.
I think part of the “dey” do-everything-yourself mentality is tied to finances. I know that I am very cautious about every penny that I spend on my business and especially at the beginning of this journey have very little extra cash to spend outsourcing. Of course this is a double edge sword because how can I expect to grow and move forward when I’m spending time teaching myself how to be an accountant (ugh) instead of dreaming up great new products.
Great article as always Megan! Can’t wait to read more of your thoughts on the subject.
Sometime about 10-11 months ago, I realized that I wanted to take my wp.com blog to the next level, and stressed out about it in a big way. I finally realized that I would have to ask for help from someone – long story short, I was lucky enough to be one of Tara’s 1st creations – I can not believe where I am today, and a lot of this has come about because I asked for help.
I am unstuck, and loving it! Now – I just need more hours in the day!
Awesome Candy! I love to hear someone is doing great and also that it doesn’t “hurt” to ask for help…
Good luck and get some more help since producing more hours is not feasible :S
Wow, this post is hitting home!
I’ve been pondering the same issues lately and wonder how so many others in my field are so successful given the amount of effort and resources it takes. For me, creating/manufacturing/listing, handling customer service and shipping are about all I can manage without falling into burnout mode.
As far as getting unstuck, I really haven’t figured out a particularly good solution…capitol would certainly help, but I’ve been meditating a lot on changing my whole approach to what I’m trying to accomplish.
Thanks so much for this post, Megan! …and all of you who commented! I’ve been contemplating going back to my ‘day job’ (sitting behind a desk all day) while an application for venture capital (an organization called WECO in my area) just sits gathering dust on my table with the bills. Like most of you, the daily rigors of working from home and trying to balance that with family life cause me to use the excuse that ‘I don’t have time’ to ask for the money. The truth is I’m scared of putting together the business plan they require to consider the application. Reading all of your comments makes me realize that I’m not alone and that I’ll just have to skip some things on my list of never-ending chores and get the application filled out! Most of you probably have similar organizations that fund small businesses. Look for them and use them!!
This is written perfectly. I am the person in the second option – waiting for the craft business to “take off” so that I can dump my part-time job and focus ONLY on my handi-works. But alas, I lack the courage to stop working, and get money so that I can invest and make my hobby into a business.
My worry, is that because I only spend my extra money from work on my business (and re-invest my profits) that I’m not going to grow in the direction I want to fast enough, and someone will come in beside me and take me out.
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Thank you for talking about this and so many other topics I have struggled with. I think the biggest hurdle is just PLAIN FEAR! If I take out a real loan and hire real help and then I fail, it will be real failure!
Really enjoyed this post. It’s so true. Also, it’s when you are maxed out for time that you need to reach out to others for help/support. Almost better to plan ahead for that happening.
I just finished reading “The Four Hour Work Week” by Tim Ferriss and he had a lot of great ideas on how to stream line your time and use services and others to save yourself time. I would highly recommend it.
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