Thinking of starting a handmade business?.........................................................................

The title says it all.


The next question to ask yourself is why?  Why do you want to set up a handmade business?


Is it because you've had a baby and don't want to go back to work but need to earn a little extra money?  Or have friends or family told you that your creations are AMAZING and you must make more and sell them and make a FORTUNE?


Reality check time, it takes a long time to make money from a small handmade business.  It is a massive investment of your time, you are responsible for the manufacturing, marketing, sales, shipping and record keeping. 


You will spend many hours developing your products and many dollars as you refine your finished merchandise.


As amazing as your finished products are, if people don't know you exist, you make no sales, no money.  Marketing a small business on a shoe string marketing budget means you must spend many hours engaging people on social media and face to face via markets and other events.  Marketing is so very important to making your business and your items sought after.


You must learn to set a fair price for your products.  What is a fair price?  A fair price is one that covers your material costs, your insurance, your marketing, and you.  You need to make sure you are paid for your time, many small handmade business owners fail to pay themselves a fair hourly rate for the product they produce. 


Now lets talk business costs, there is a fee to register your business in Australia, it's not a lot but it needs to be taken into account.  Then there is insurance, insurance costs can be horrendous depending on what kind of items you plan to make and sell, it's a very good idea to talk to a broker BEFORE you decide on the products you want to sell, it can even be impossible to get insurance for certain products.  Some business owners decide to not take out insurance and that is their personal choice, however it is not recommended as no-one wants to lose their home because a child swallows a button from the amazing hand crocheted cardigan they lovingly made.  Many markets require you to carry public liability insurance or they will not let you attend.


You must also research the government rules and regulations that apply to the products you want to make and sell.  Sleep wear, for instance, may be really cute and lovely to make, but unless you are prepared to pay to have it tested for flammability then it's a no go.


Its not all doom and gloom however, if you are prepared to do the hard yards, spend the time and money to establish your handmade business it can be incredibly rewarding.  There is nothing like the feeling of customers that LOVE what you create with your own two hands and being financially rewarded for it.  Seeing a photo of a child wearing a dress you've made or having people fawn over your goodies at a market can make your heart sing.


So if you have your heart set on setting up a handmade business then GO FOR IT!