When Your Hobby Becomes
The main difference between a hobby and a business is profit.
Hobby becomes a business. Jewelry Designers who want to turn their hobbies into viable businesses must first understand the risks and commitments involved.
No longer are you producing and creating jewelry for fun and relaxation. You must now produce a salable product, keeping design and pricing considerations in mind.
You have to do some sharp pencil work to decide what the real cost of materials and your time will be. Less-obvious costs, such as overhead, breakage, time spent in keeping up with the paper work and of course your selling costs, must all be included in your price per-item in order to make a profit -- which of course is the reason why you are going into business in the first place.
Once your hobby becomes a business you can no longer produce at your leisure, you now have orders to fill, deadlines to meet and customers to satisfy.
The only people who make real money from jewelry making are those who are business-oriented or willing to learn business know-how and are serious about working to build for the future. They are prepared to put in extra hours, weekends, holidays, etc. to get the job done and orders filled.
The majority of people now involved in jewelry making as a hobby do not want or need to make the commitment that is required of all business owners. Therefore, they will never be able to make more than just "extra money" from their jewelry.
The Business Plan
Those who do want to turn their hobby into a viable business should start by writing a business plan to help put the many aspects of starting and maintaining a business into perspective.
A business plan is a thought process that someone goes through to develop a business, detailing how the business will be organized, run and financed. Business planning is an ongoing process. The how, why, where, when, what, and who of it.
By organizing information on paper you are better able to focus your attention on different business matters involved--crystallize your ideas, and anticipate problems and plan solutions before they arise.
Your business plan is a guide to follow to turn your idea into a working venture.
It is a statement of your goals and objectives along with a detailed account of the steps necessary to achieve those goals.
Planning ahead prepares you for all aspects of your business responsibilities and is almost mandatory if yo ever want to obtain capital from a lending institute.
You need to be aware of both your short-term and long-term goals and objectives. Once your basic concepts, business goals, financial planning and objectives are formulated it will be easier to prepare your next step — the marketing plan.
Successful enterprises don't just happen they are secured by a good foundation of planning.
The Marketing Plan
When your hobby becomes a business, marketing is more than just making a sale to a customer. It is all the bells and whistles that get you the customers you need to make a profit on what you produce.
By asking yourself marketing questions you will have faced a bit of what to expect your responsibilities will be — whichever method or methods you decide to follow in selling your products.
Now you need to plan exactly how you are going to follow these methods. You are going to consider your competition and what you need as a hook to make your product truly competitive.
You need to ask yourself how you are going to promote your business.
- How are you going to let the public know about you and your products?
- How are you going to let old customers know of new products?
- What kind of promotional materials do you plan to use and pass out, such as business cards, flyers, brochures, hang tags, etc?
- Are you going to advertise or just count on word-of-mouth?
- If you plan to do some advertising, where would you advertise?
- How much do you plan to budget for advertising and other promotional materials?
Hey now! Don't get discouraged and say to heck with it! It just too much trouble to be bothered! Consider all the alternatives available. You have confidence in your products and creative skills — right?
You started out looking for a challenge and a way to improve your income or you would'nt have thought about starting a home based jewelry business at all.
As you can see, there is more to running a jewelry business than simply producing your product. You need to know how to produce and distribute a product which the public will buy, and you need to know exactly how you will tell the public about it. The different articles throughout this site will help you organize every business aspect of your jewelry designing giving you practical instructions for setting up, operating, and marketing a successful jewelry business.
As mentioned above planning is the key to a successful business which requires research on your part.
Follow up on the resources provided throughout this site, talk to people, visit craft shows and shops and learn from other people's successes and mistakes.
Examine displays and try to analyze why some people are drawing crowds while others are ignored.
Check out all business forms and promotional pieces used, such as business cards, brochures, advertisements, order forms, price tags, packing boxes and anything else from the business world.
Always look at these with two questions in mind: "Will it work for me?" and "How could I improve on that?". Build an "ideas" file and get into the habit of feeding it with little notes, articles and examples and then review it regularly.
A craft business needs more than creative talents and dreams to keep it alive and profitable -- one of the most vital parts of any successful operation is careful planning.
Your marketing plan will will help you to decide the why, when, where and to who you are going to sell your products.
Characteristics Required for Success
Discover the characteristics needed to succeed with a home based business.
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