I want to introduce you to my favorite business finance hack.
The concept is so simple but absolutely crucial for creating profitable handmade products that make customers want to come back for more.
Business Hack #1 – Spend Less while providing more for your customers
Any intentional shopper is looking for meaningful & valuable products to meet their needs. It’s our job as crafters to provide both, without sacrificing our own business’s health.
So how do you do this?
This is my list of actionable ways to take your business from a Hobby (forking over HOBBY PRICES for your goods) to a small business running like a well oiled machine.
Break each step down in to easy steps and within a month, you can spend less money and add more value to each of your gorgeous products!
#1 Simplify your supplies
If a trip to your craft room has you singing about your gadgets and gizmos aplenty, you might want to simplify the supplies you use in your work space.
Consider this the “Capsule Wardrobe” of supply closets. Choosing supplies that will match well with other fabrics, accessories, etc. to create products that are on brand and on budget. Sticking to one particular color scheme and design style will ensure purchased supplies can be used on future projects and will not go to waste.
Once you pick your favorite supplies that can be used interchangeably between your designs, its time to work on the next way to save.
For those who provide custom work to their customers, consider creating a list/ swatch of the colors, fabrics and designs you do offer.
This avoids the “Skies the limit” issue where you’re spending more time tracking down those perfect multicolored beads instead of putting more time and focus on the actual project.
Your customers will appreciate the boundaries (less overwhelm) and you can actually ENJOY your custom projects!
#2 Find better pricing
When you’ve taken your hobby to business status, it is time to step away from the big box stores and purchase from suppliers.
Shop around for high quality and best priced items, including purchasing your everyday necessities in bulk.
Not only will this save you money, you can have these items shipped on a schedule to you! Working with suppliers that provide excellent customer service is a fantastic way to work smarter not harder.
P.S. – Request samples from your new vendors. Maintaining quality is the most important factor so it is crucial to sample products before buying large quantities of a supply.
The best pricing usually comes with a contract attached. If you have a few supplies that are used on most projects in high quantity, consider finding a vendor who will give a 10-15% discount with a contract. You will want to request multiple bids from various vendors to make sure you are getting the best pricing.
#3 Ask for help
Raise your hand if you’ve ever spent hours doing something for your business that someone else could have done for you quickly and professionally.
It can be hard to pass off those tasks and pay to have them completed when we are trying to watch our spending. Even though you are naturally scrappy and willing to learn, the end product of letting a professional handle these things can save money and customer experience in the long run.
If it still isn’t feasible to pay for others to handle parts of your business for you, consider bartering for these services. Offer a skill you have in exchange for help (or education) in an area you aren’t as talented in.
My favorite way to ask for help is collaborating with other makers. If you need a design made, photography, promotion, etc. you can work with a like minded business to add value to your current offerings.
Example: If you sell fine art prints, you can collaborate with a framing business to exclusively offer your customers a seamless transaction where they purchase art from you and then it is framed for them as a finished product.
Find resourceful ways to provide your business extra value without costing you extra money.
If your supply costs are a total mystery and the idea of breaking down what each of your handmade items are costing you leaves you tucked under your desk in the fetal position, I have a Free course for you!
This is a 3 day email course that provides the tools you need to spend just a few minutes a day learning more about your business finances.
I give you 2 actionable steps and formulas each day to learn the ropes of breaking down product costs in an easy to handle, totally manageable way.
Join me today in taking control of your business finances!
I hope this article was helpful for to you! If you have any requests for business finance topics, please leave them in the comments below!