This week's Featured Item!
Starting and running a jewelry business.
(Part 2 in a series)
In reality, you must also consider a few more (hidden)
factors in figuring your true expenses. They include,
your: “Costs of running your business,”
“Costs of promoting your work,”
and “Costs of selling your creations.”
Costs of running your business:
These can include: ·Tools; ·Displays;
·Stationary; ·Cards;
·Licenses; ·Professional insurance policies; ·Returns;
·Repairs; ·Workspace (a room or space set aside for your
work and storage); ·Lessons and classes; ·Bookkeeping
or hiring a book keeper for your business and taxes; ·Sales forms;
·Charge card services and machines; ·Bank services and
fees; ·Furniture; ·Maintaining stock and supplies (your
money tied-up); ·Business publications; ·Telephone expenses;
·DSL line; Computer and peripherals; ·Close-up camera
and lights; ·Postage; ·Delivery; ·Packaging; ·Auto
mileage expenses; ·Extra electricity expenses; ·Employees
or assistants (with employees come taxes, unemployment, and workers-comp
insc.); ·Donations; ·Samples; ·Wear and tear; ·Depreciation;
·Etc.; ·and don’t forget the time it takes you to
run your business (if you were someone else’s employee, you’d
be paid for this time).
Costs of promoting your work:
Promotion expenses can include: ·Photos; ·Brochures; ·Web
site and links; ·Yellow pages; ·Contests; ·Advertising;
·Donations; Etc, plus your time.
Costs of selling your creations:
Venues: Direct retail sales: Open a store; Art and
Craft shows; Flea Markets; House parties; Mail order catalog; “Trunk
shows”; Internet sales; E-Bay; Wear your creations at your “9
to 5” worksite and sell them; Etc.
Wholesale to other retailers: Retail stores; Boutiques;
Galleries; Beauty salons;
Internet stores; “Blended stores”; Etc.
Retail: Open a store – Check with
your local SBA
Art and Craft shows, Flea Markets – Venue guide(
publications); Tables, Canopies, Table covers, Display pieces, Signs;
(Wear and tear on everything); Business cards; Sales books; Packaging;
Charge card services and machine (some, plus “air time”);
Liability insurance; Booth entry fees; Judging fees; Application package;
Donations; Auto mileage fees or truck rental; Hotel (if out-of-town);
Food &
drinks; Helpers fees; Theft and breakage; Etc.; and don’t forget,
Your time has
value.
House parties and “Trunk shows” –
Tables; Table covers; Display pieces;
(Wear and tear on everything); Business cards; Sales books; Packaging;
Charge
card services and machine (some, plus “air time”); Liability
insurance; Theft and
breakage; Hostess gift or fee; Auto mileage fees; Etc.; and don’t
forget, your time
has value.
Internet sales and E-Bay – Computer and peripherals;
Site design fees, DSL line; Digital camera and lights; Backgrounds and
displays; Packaging; Delivery; E-Bay fees; Hosting fees; Domain fees;
Invoices; Charge card equipment and fees; Telephone charges, Sales forms;
Employees (+); Etc.; and don’t forget, your time has value.
Mail order catalog - Computer and peripherals; DSL
line; Digital camera and lights; Backgrounds and displays; Printing;
Packaging; Delivery; Invoices; Charge card equipment and fees; Telephone
charges, Sales forms; Employees (+); Etc.; and don’t forget, your
time has value.
Wear your creations at your “9 to 5” worksite and
sell them – Nothing; OR,
Sales forms; Charge card equipment and fees; Your employer is paying
for your
time.
Wholesale: Retail stores; Boutiques; Galleries; Beauty salons;
Blended stores. – Wholesale discount % ; Sales forms;
Sales product sheets; Auto mileage fees; Packaging; Delivery; Displays
(sometimes); Travel fees and hotel (sometimes);
Blended stores might require you to spend some hours in the store; Etc.;
and don’t
forget, your time has value.
Consignment: Retail stores; Boutiques; Galleries;
Beauty salons;–
Same as Wholesale, except a lower discount rate, and a special
consignment form
to protect you and make sure you are paid and/or retrieve unsold merchandise.
This ends the majority of your basic expenses. In the
next few weeks we will discuss some of the other things you should consider
when pricing your creations. Also, I’ll discuss experiences with
different pricing methods, starting a business, finding sales venues;
promotion; etc. Plus, I will supply you with a few referrals.
You can e-mail me with any other expenses you
have encountered.
