1) Does your product or service create or satisfy a need?

Is your product or service a solution to a real and existing problem? One way to determine whether or not your product has any potential value is to see if there are people who actually want or need what you are offering.

2) Can you identify your target market?

It is important that you properly identify the type of person who would want or need your service or product. Later on, you will be able to focus your time and energy on further understanding their wants, needs and expectations.

3) Do you have competitors?

If your future business has absolutely no competitors, then it can be assumed that you have no market and that your product satisfies no need. You need to research a little bit more. Take a closer look at how other products and services solve the same problem that your big idea solves. You may not have direct competitors, but you at least need to identify your indirect competitors so you can clearly differentiate your product from theirs.

4) Is your product or service distinct or superior compared to that of your competitors?

Potential customers will always want to know why they should choose your product or service when there are so many other options for them to consider. You shouldn’t just meet a customer’s needs—but meet these needs in a manner that is much better compared to your competitors.

Keep in mind that it is best to first invest your time in research before investing your money in a business. After some thorough research, you should be able to gauge whether or not you should proceed with your business plans.  Don’t be discouraged if you learn later on that your business may not work out. You’ve already had one good idea—you will have plenty more in the future!

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Are you just about ready to venture into selling your crafts for the very first time? Creating stocks of items to sell is one thing—but pricing them is a completely different story.

Pricing products can be a very tricky matter. Set the price too low and you might not even be able to cover your expenses. Set the price too high and you could turn off your potential customers.  Here are some tips on how to determine the right prices for your crafts:

1) Get to know your market.

One thing you should do in order to avoid underpricing and overpricing your products is to get to know your market. Visit crafts fairs and keep an eye out for prices of similar products, or visit online marketplaces where similar crafts might be available. Get to know the market, and get to know your competition.

2) Don’t downplay the cost of your labor.

Many artists and craftspeople make the critical mistake of undervaluing their labor.   Pricing your products so low could compromise the quality of your work due to the number of orders you have to fill. Another option would be to find ways that you could streamline production in order to make the entire process less painstaking and more efficient.

3) Include the cost of hidden expenses.

Most artists who are early in their careers tend to undervalue and underprice their work, not wanting to appear greedy. Don’t be afraid to ask for what you need. Calculate how much you average on materials per project, plus how much time it takes to create it. If you’re joining a crafts fair, you should also factor in the costs of your travel expenses, registration fees, meals and such.

4) Determine how original your items are.

Are you selling a product that many other vendors are selling? If, for example, you are selling at a crafts fair and you know that there are going to be similar products at neighboring tables, then you might want to keep your prices lower in order to be competitive. If, however, you are selling something that is new and unique, you might be able to afford raising your prices just a little higher.

Pricing your products may be difficult—but keep in mind that if you really want to survive and succeed in the business, you will also need to think like a business person.

Photo Credit: iClipart

Craft fairs are a wonderful way to both market and sell your crafts—but some people simply do not have the time or the money to put up a booth at such fairs. More and more entrepreneurs are beginning to sell their items online. One website very popular among small businesses and hobbyists is Etsy.com.

Here are some reasons why, like other crafters, you too might want to sell your items on Etsy:

1) Etsy is a marketplace for all things handmade.

Unlike other online marketplaces, you won’t find mobile phones, DVDs or various retail items for sale on this website. Etsy.com is a website specifically for both buyers and sellers of handmade items, vintage items, and all sorts of craft supplies.

2) You are catering to your target market.

There’s no guarantee that you’ll make a sale on Etsy—but you can at least be assured that people who browse Etsy love crafts and all things handmade and vintage just as much as you do.

3) Buying and selling on Etsy is easy.

It only takes a few minutes to set up your Etsy shop. You can even choose to customize your online store with your profile and a banner image. Uploading your product descriptions and images are easy and will not take up a lot of time.

4) You are joining a community.

By choosing to sell your items on Etsy, you are not creating just another account, but are joining a community, as well. You can ask for feedback or suggestions from other knowledgeable sellers on the Etsy forums, or even collaborate with other people on Etsy whose style or products complement your style or items.

Similarly, purchasing items on Etsy is also easy. Prices of items appear in the buyer’s local currency, making shopping convenient, fun and quick. Thousands of people shop on Etsy on a daily basis because it is the go-to online marketplace for all things handmade. If you want to start selling your crafts on the Internet, Etsy is truly the best place to start.

Getting local publicity is a fundamental step when it comes to marketing your small business. In fact, for many small business owners, local marketing is the only type of marketing they know of and need.

Here are some great ways to get local publicity:

1)  Get involved in community events.

Although donating money to charities is also a great way to give back to the community—tangible and visible involvement is ten times better. Community involvement is a very effective means of small business advertising and good publicity. Take part in charitable events, volunteer at community service projects or sponsor a local sports team. You’ll be known as the business that cares about others.

2)  Start a community blog or newsletter.

Another way to build up your brand is by starting a community blog or newsletter on local happenings and activities. You can take advantage of this community resource to network and ask other local residents and other businesses to contribute to your project.

3)  Start a tradition or event.

Start an annual tradition or event that the rest of the community can get involved in and look forward to. Plan something worthy of being featured in the evening news or the daily paper. Hold a crafts fair, a bake sale or even a community picnic on the first day of summer!

4)  Take advantage of local media and various opportunities.

Make the most out of local media and offer to write op-eds in your community newsletter or local newspaper. Get some airtime on well-known local radio talk shows. Opportunities such as these can quickly generate local awareness!

5)  Join at least one professional or business organization.

Just being a member of a reputable organization can be business advertising and publicity in itself. You can also take advantage of the organization’s perks, such as free promotion on their website or newsletter.

The only way to get local publicity for your small business is to direct your marketing efforts to a neighborhood or community level.

Whether you're just getting started in business and don't have much of a customer list yet, or you've got an existing customer list that you'd like to beef up, there's a quick and easy way to get new sales leads and expand your mailing list.

InfoFree is a new membership site where you can download unlimited sales leads and business credit reports.  You can sign up for a free 24 hour membership to see what it's all about and check out how easy it is to search for sales leads.

I signed up for a free membership and did a bunch of searching.  There are over 50 databases to choose from and you can narrow down the data based on all sorts of factors such as location, hobbies, age,  and income with just a few clicks.

For example, I searched for only women who enjoy crafts and own their homes in my county and found over 20,000 sales leads.  

Once you've selected your criteria you have the option of "cherry picking" your favorite leads to download or you can click "download all".  With their $49.95 monthly subscription, which you can cancel at any time, you can do unlimited searches and you can select, view and download the sales leads you have selected.

After you've downloaded the leads you're free to call or mail them your brochures or sales information.  This is a terrific low cost way to help get out word about a new business or to let people know about a big sale, then you'll be able to increase your sales as well as your active customer list!

Why don't you head on over to infofree and sign up for your free trial right now?  You'll be able to quickly see how thousands of new sales leads could benefit your business!

If you’re a lover of all things craft-related, attending a craft fair is something you should definitely make time for. If you make crafts, however, then you may want to seriously consider selling your handmade works of art at craft fairs instead of just attending them.

These are just some of the many benefits of selling at craft fairs:

1) You can interact with your target market.

People who attend such fairs are genuinely interested in crafts. These fairs are a wonderful opportunity to chat with the people browsing through your products and get to know them a little better. Get feedback from them as to what they’d like to see you sell, and answer any questions that your customers may have. You’ll also be able to network with the other crafters at the fair and see what sells well for them.

2) You can create a customer database.

A craft fair is a wonderful way to get more information about your customers. Ask interested customers if they’d like to be on your mailing list.  Collect their home addresses, phone numbers or email addresses so you can send them product updates, catalogs or brochures in the future.

3) They are profitable.

At a craft fair, you are selling your items directly to the customer. This means there’s no need to pay any distributors or middlemen. Apart from overhead, fair fees and supplies, everything else is considered profit.

4) They require only a short-term commitment.

Craft fairs generally run for only one or a few days, and are usually held on weekends. Joining a craft fair will in no way take over your schedule! You can still hold a regular job on weekdays, or spend your time working on your hobbies.

5) You can learn from your previous craft fairs or shows.

Another benefit of selling at craft fairs is that you’ll be able to quickly assess your performance at the end of each fair. You can decide to increase your prices, fix up your displays and increase your inventory before deciding to commit to a larger and more expensive fair.

6) You can work on your crafts and sell them at the same time.

Take advantage of a fair’s slow hours to build up your inventory. Actually doing your craft work at the fair is a great way to get people to slow down, watch and ask questions. 

Craft fairs are not the only place that artists can sell their work however, these fairs are a wonderful way to build up one’s business. The next time you hear of a craft fair in your area—grab the opportunity and sign up!

Photo Credit: iClipart

The newly launched Patterns section of Craftsy is the fastest growing online marketplace for crafting patterns. Because Craftsy doesn’t charge designers any fees or commissions for listing or selling their patterns, creative indie designers are rushing over to the site to set up their pattern shops. Well over half a million active Craftsy members browse the thousands upon thousands of patterns of all types, for all crafts. It’s the perfect place to get inspiration and instructions at super low prices, or to set up your own independent pattern shop.

Every business needs a website—whether the business is already very much established or is one that is just starting out. Many small business owners believe that there aren’t many benefits to having a website. If you’re someone with a similar mindset, you may want to reconsider.

Here are just a few of the reasons your business needs a website:

1) Your business is accessible 24/7.

Nowadays, more and more consumers use the Internet to search for products and services. They can search your FAQ section for answers or submit a form if they’ve got any questions or inquiries. Think of your website as an online storefront. Whether your store is closed or your phone is off for the day, people can still check out your business at any time they want to!

2) You can reach a wider audience.

Once your business is established on the Internet, you will no longer be a small, local business. Instead, you can potentially be discovered by millions of people around the world! A website can allow you to conduct business on both a national and international level.

3) You can keep your customers updated.

A website is a wonderful way to keep both current customers and potential customers updated on your latest products, services, promotions, events and even price changes. You’ll never have to deal with outdated catalogs or brochures again!

4) It is both inexpensive and effective.

Many business owners think that it costs a lot of money to put up a professional-looking website. Although this may be true in some cases, the cost of designing a website does vary greatly. You must note, however, that the cost of keeping a website running is nothing compared to the cost of newspaper, television and radio advertisements.

5) Your competitors have websites.

Chances are high that your competitors have their own websites. If customers cannot find you online, then they’ll likely take their business somewhere else. Think of the potential customers you are losing!

These are just five of the many, many reasons you need a website for your business. A website will definitely help your business grow, no matter how big or small it may be.

Photo Credit: iClipart

Many people spend countless hours a day doing crafts for the sheer reason that they love it. Have you ever considered making money from your crafts? It’s very possible—and there are several ways to make a little income from your work.

One great way to do so is to sell your items on the extremely popular auction site, eBay. If you’re ready to take the plunge and make some cash from your labor of love, then here are some practical tips to get you started:

1) Create an account.

The first thing you need to do is to open an eBay account. You’ll find step-by-step instructions on the site to walk you through the registration process.

2) Do a little research.

You probably already have an idea of what items you’d like to sell on eBay. Take advantage of eBay’s ‘advanced search’ feature to see how sellers list their items in order to get a feel for how other people sell crafts on eBay. If, for example, you plan to sell handmade jewelry, check out the listings of similar items.

You can also choose to view only completed listings, so you can see how much items similar to yours have been sold for.

3) Take great photos of your item.

Although it is possible to list an item for auction or sale without a photo, it will greatly lower your chances of selling your item. Take one or more great photos of your item and show off your hard work. If you aren’t very good with a camera, ask a photographer friend to take photos for you. Presentation plays a big role when selling a product.

4) Think about your shipping requirements.

Aside from creating your product, you also have to think about how to ship it. As a seller, it is your duty to make sure that your item gets to your customer in good condition. If your item is fragile, will you need bubble wrap or other special packing materials? Be sure to charge accordingly.

It is also your job to find a reliable and reasonably priced shipping method. Will you use the postal service or will you use a courier service? These are things you need to think about.

5) Aim for good feedback.

On eBay, both buyers and sellers are able to leave feedback for each other after each transaction. Feedback is based on a transaction, and can be either positive or negative. While positive feedback will likely lure in more customers, negative feedback can just as easily steer them in another direction. Treat each customer with respect, and make sure to communicate with each person to the best of your ability.

Selling crafts on eBay may take a little getting used to if you aren’t familiar with how the site works. However, you just need to invest time in learning the ropes and you’ll quickly find yourself earning income from creating something that you love.

When it comes to web marketing, an email newsletter is a very important tool. If your business isn’t sending out an email newsletter, then you’re missing out on a great opportunity to connect with both customers and prospective customers.

Here are a number of reasons you need an email newsletter for your business:

1.  It complements your website.

No matter how loyal your customer base may be, it is a fact that not everyone will remember to return to your website if unprompted. An email newsletter is an effective way of reaching your audience, keeping them updated about what’s new with your business, and reminding them to visit your site.

2.  It is interactive.

There’s a slim chance that readers will check out your website when seeing your URL in a printed newsletter or article. An email newsletter ensures that your website and other documents and product pages are just a click away.

3.  You can track its effectiveness.

Several programs allow you to send out newsletters and track their effectiveness. You can see how many people have opened your newsletters, as well as see which links are being clicked. You might want to try email broadcasting tools such as MailChimp, ConstantContact and Aweber.

4.  Your subscribers want to be contacted.

People signing up to receive your email newsletter means that they want to know about your product. You can promote your latest offerings in your newsletter and be assured that these people really do want to know about them.

5.  It brings viral opportunities.

Emails are easy to share and forward to other people. If a few subscribers forward your newsletter to their friends, you’ll be able to market your services to people you wouldn’t have reached otherwise. Of course, it is unlikely that all of your newsletters will be going viral—but there’s always a chance that your subscribers will share with others.

These are just five reasons you should have an email newsletter for your business. Remember: the sooner you start working on yours, the sooner you’ll be creating a better email relationship with your customers!

Photo Credit: iClipart