8 Reasons to organize your handmade business finances

There’s a reason people don’t take up business finance as a weekend hobby. Organizing your handmade business finances is one of those tedious business chores that’s easy to procrastinate in favor of buying more craft supplies (!), fulfilling orders, creating marketing content or good ‘ol watching Hulu.

But here’s the thing; getting your business financials together is too important to avoid or put off. Doing it right and consistently can be a game changer for your business. Here are eight reasons to show your finances some love.

1. Enjoy the fruit of your labor…i.e. make sure you’re actually making money. Running a handmade business requires a lot of blood, sweat and tears. Make sure you make it count by taking a look at whether your operation is profitable.

2. Take advantage of larger opportunities like grants, incubators or small business funding programs. Free money is always a good idea. Organizing your finances positions you to answer questions on grant applications about your revenue and profit trends without a last minute scramble.

3. Put more money in your pocket. Every business has waste and opportunities to improve. Taking a closer look as your expenses and income helps you to avoid waste, identify problems and address products that are not making money.

4. Evaluate investments like tradeshows, craft markets, software, photoshoots, etc. Craft markets are a lot of fun, but the associated expenses can add up. Looking at the numbers in totality as part of your financial process helps you make better decisions.

5. Celebrate your progress! You’ve come a long way with your handmade business. Clap for yourself and look at your numbers over time to appreciate your growth and set plans for where you want to go next.

6. Make decisions about new product introduction. This is similar to number 3, but the pre-emptive version. Launching new handmade products takes effort and resources; understanding profitability and projected sales ahead of time can help you decide if it’s worth it.

7. Make decisions about staffing and pay business taxes. On the fence about hiring help? You guessed it; understanding your cash flow from month to month can indicate whether you can afford it and how much you can afford.

8. Save time and avoid having to “cram” when you need to report earnings or loss when you file taxes at the end of the year. If you been there, you know. Pulling together 12 months worth of receipts, online expenses, sales reports, etc ahead of a tax filing deadline is NOT fun. Staying organized through out the year keeps things fun.

Struggling with your business financials? Consider getting help by hiring a bookkeeper and/or accountant. Can you relate to any of these reasons to get your finances organized? Share tips on what’s worked for you below.

Are you taking advantage of these handmade business trends?

By: Charlene Dunbar

Wish there was a way to know the business outlook for the next 12 months or 5 years? We rounded up seven small business trends that handmade entrepreneurs need to take advantage of in the coming year.

#1 – Alternative payment options will continue to be important

Consider installment payment options for your online store or touchless pay options like ApplePay for in-person selling if you haven’t already.

#2 – Remote work will persist

You may need to adjust your product offerings, “reason to buy” or expand to services (virtual candle-making class anyone?) because the more-time-at-home trend is here to stay.

#3 – Spend on social media will increase

As customers spend more time online, how will you get their attention in a crowded online space? According to Business News Daily, social media ad spend will increase by 15% in 2021, growing the total spend on ads to $105 billion.

#4 – Use of mobile marketing

Is your online store optimized for mobile? Sending text messages or geo-targeting potential clients using Google ads can help keep your handmade brand top of mind for customers who are ready to shop.

#5 – User reviews will continue to matter

User reviews provide “social proof” that gives buyers confidence to buy from you online, sight unseen. Are you putting user reviews/testimonials to work in your online store?

#6 – Empathy is the gold standard

Customers want to buy from people who can relate to all the challenging things we’re experiencing IRL. Displaying empathy in your communication can help build trust with customers.

#7 More consumers will prioritize shopping small

According to Fundbox, 59% of consumers would rather buy from a small business vs. a large corporation. Don’t be shy about sharing your small business journey; customers are rooting for you and want to support your handmade business.

Which business trend resonates with you the most? I need to hop on the mobile marketing train and plan to get an app that can help with that. Drop us a note below and thanking for reading!

Sources:

SBA.gov/Top Business Trends for 2021

Business News Daily/12 Small Business Trends and Predictions for 2021

Wix.com/8 Small Business Trends to know for 2021

Fundbox.com/5 Small Business Trends for 2021

3 Inspiring Podcasts Every Craft Boss Should Listen To

By Charlene Dunbar

In the past 2-3 years, I’ve grown to LOVE podcasts. They’re that perfect blend of education and entertainment and they have contributed significantly to my personal and business growth. I usually pop one on when I feel stuck or need inspiration, which is fairly often! Here are three podcasts I recommend to fellow crafters looking for practical business tips, strategies or good ol’ inspiration. Before I start, a disclaimer: none of the three featured podcasters have a background as handmade crafters, but they are women who have built successful, creative-ish businesses/enterprises and the stories they share are universal and can definitely help jumpstart your business journey.

I’d love to hear what you think of these and about your favorite creative or business podcasts.

#1 – Myleik Teele – My Taught You Podcast This was one of the first podcasts I got hooked on. Myleik has a direct, no-nonsense style and lays out the playbook for how she built her business (Curlbox) and personal brand. My Taught You includes interviews with other successful creatives and diary style episodes where Myleik covers topics like handling your own PR, business break-ups and how to not suck at sales. If you need a swift kick in the butt or help with the right mindset to win, Myleik’s podcast is a must listen.

#2 – Nicaila Matthews – Side Hustle Pro Podcast Side Hustle Pro is one of my favorite business podcasts because it spotlights women of color who grew their side hustle from passion project to profitable business. The featured business owners vary widely, but each of them walks through the steps they took to succeed, warts and all. I love the insightful questions Nicaila asks to unpack things like profitability, finding manufacturers, and scaling. If you’re in a tough place with your business, you can definitely find a SHP episode to give you inspiration to keep going.

#3 – Moiyattu Banya-Keister – Tea and Peppersoup Podcast Tea and Peppersoup is a relatively new podcast that offers solid mindset nuggets for building a business or nonprofit. I was drawn to the episodes covering topics like self-care for entrepreneurs, avoiding the comparison trap and embracing rejection. Banya-Keister also shares her experiences with making tough decisions, recognizing seasons and digging into her faith to achieve her God-given potential. Her big sister wit and honesty make Tea and Peppersoup a go-to for anyone feeling the pain of leaving their comfort zone.

I hope you check out these podcasts and enjoy them as much as I do. Want to hear more inspiring “How She Built It” stories? If you’re in the Atlanta area, RSVP now to attend our next market on November 16 where we’ll have a special surprise guest, who will share her incredible success story during the market.

How IG is Hurting your Creativity

I’ve been an avid user of Instagram for about 4 years and I confess, it’s my favorite social media platform. I love its visual, clean format and exchanging ideas and stories there. My clothing business, perspective and connections have all grown beautifully with IG. But I’ve also noticed that endless scrolling on Instagram has sometimes hampered my productivity and (gasp!) confidence. A close friend of mine always says, “It’s all about balance”. As we start a fresh year of bold goals, here are some thoughts on how IG can actually hurt your creativity.

Comparing yourself

IG has tons of inspiration, but it also makes it easy to compare yourself excessively and feel bad about your progress. I’ve literally scrolled myself into depression by dwelling on how amazing someone’s else feed is or how much their audience “loves” them. It’s tough to remember that IG is a highlight reel and that everyone’s journey (and water bill) is unique. Do yourself and your confidence a favor and avoid comparing yourself to others on IG. I’ve actually made the choice NOT to follow certain people/brands to minimize the daily temptation to compare myself.

Source: Florence Given Art

Conforming instead standing out

Again, it’s great to be aware of what’s working for others, but if you carbon copy what everyone else is doing and how they’re doing it, you rob the world of your secret sauce; you. This is especially true in spaces that seem crowded. What if Rihanna had not started Fenty Beauty because she figured there were too many make-up brands?? Or worse, if she had decided to play it safe and launch a copycat make-up brand? Do you, boo.

Wasting precious time

Recode* estimates that people spend an average of 53 min on IG everyday. I confess that my average is higher than that. I recently started using the Insight tool and whenever I feel pressed for time to work on my goals, I remind myself of how much time I’m wasting on IG. Mindlessly scrolling can take up chunks of time that could be used for strategizing, creating or networking. Go make something beautiful happen IRL.

*Source: Recode

Putting too much stock in “likes”

Likes are great, but they don’t always translate to real value. Some of my bestselling creations have received low to medium likes while items that turned out to be duds received tons of likes. IG a good source of input, but balance it out with other means of feedback and what your gut is telling you. I’ve seen brands/creatives who are killing it in real life and have a modest IG following/engagement. Of course, put your best foot forward on your feed, but try not to obsess over how many people are giving your posts a thumbs up. They don’t equate to your value as a creative or better yet, as a person.

For the record, I love Instagram and believe that it will continue to have a major impact on the creative world. But as a designer/businesswoman who wants to flourish, I’m learning to guard against comparing myself, conforming, wasting time and seeking validation on Instagram. Do you agree with these pitfalls? How do you manage your relationship with IG? While you’re thinking about that, let me go see what I just missed on IG, lol.

By: Charlene Dunbar