Starting A Handmade Business - Choosing A Product
Ever wondered about starting a thriving handmade business? Well, I've got your back! With almost two decades of experience in the handmade product industry, I've gathered some valuable insights on what makes a product not only profitable but also scalable and effortlessly marketable.
If the challenge of starting a handmade business from scratch intrigues you, then buckle up because I'm about to share the key considerations that would guide me in choosing the perfect physical product to sell. From years of navigating this creative space, I've learned what works, and I'm excited to spill the beans on the secrets to a successful handmade product business.
If I had to develop a new handmade product business today, these are some key elements I would consider.
Leverage Your Current Skills
Do you possess a unique skill or talent that you're already amazing at? Launching a successful handmade business becomes a breeze when you leverage what you're good at or explore easily learnable skills.
As someone who's been deeply immersed in the world of handmade product businesses, I've always opted for ventures aligning with my existing abilities or those I can swiftly pick up. Now, I get it – not everyone feels like an artist or a creative genius (I totally relate!). So, when considering a new product without a background in the arts, I'd lean towards options that promise a smooth learning curve without breaking the bank or eating up too much time.
For instance, I might hold off on pottery for now; not that I'm not open to learning it eventually, but for a quick-start business, I'd prefer a skill I can grasp without enrolling in a pricey class. It's all about choosing a path that aligns with your strengths and sets you up for a successful launch in the vibrant world of handmade product businesses.
Don’t Make Pricey Investments Too Early
When diving into the realm of starting a handmade business for swift profitability, my golden rule is to steer clear of products demanding hefty investments in equipment, programs, or software. Keeping things lean is key, ensuring you turn a profit faster without sinking into debt right from the get-go.
Imagine starting a Christmas ornament business without spending a lot on a fancy laser machine right away. I'd opt for a savvy strategy – kick off by ordering laser-cut blanks from a reliable supplier, adding your touch to them, and then getting some sales under your belt. This not only proves the concept but also helps drum up some quick cash.
Once the business gains momentum and investing in a laser machine makes sound financial sense, that's when I'd consider taking the plunge. It's all about staying agile, testing the waters, and only scaling up when the handmade business is ripe for it.
Don’t Sign A Lease Just Yet
Similarly, when considering a new venture in my handmade product business, one crucial aspect I'd think about is the workspace. Opting for a product that can be crafted right at home becomes a priority. I'd steer clear of items demanding expansive spaces or specialized setups, like a warehouse or commercial kitchen.
If I were to start a t-shirt business, my initial move would involve figuring out a way to set up shop at home, saving me from the expense of renting a space for screen printing equipment. Exploring options like outsourcing my designs to a screen printing company or diving into print-on-demand options could also be on the table.
The added perk? It allows me to test the market's appetite for my product before making any substantial investments in dedicated workspaces or equipment – a savvy move for any budding handmade business.
Look for “Greenlight” Opportunities
If I were to start a handmade product business today, I'd be on the lookout for a hassle-free business opportunity, one that sidesteps any red tape. Steering clear of products requiring licenses or certifications would be a priority.
Think children's toys, where the Child Protection and Safety Act might come into play, or food products, even under a cottage license, that would still entail a thorough inspection process. Products making health claims? That involves evaluation by the FDA.
Instead, I'd lean towards what I like to call a "greenlight business" – no red tape hurdles, just a straightforward path to making and selling. It's all about diving into a handmade business without unnecessary complications, giving me the freedom to simply get things rolling.
Batch Production - Don’t Do Business Without It
If I can't batch-produce a product, it's a dealbreaker when it comes to creating a handmade business. Batch production isn't just a time-saver; it's a foolproof strategy to skyrocket your profit margins.
In my jewelry business, I often got the same question: "How much time does it take to make one necklace?" The more important question to ask is if I make only one necklace at a time. How I’d respond? Absolutely not, and I never will. When I sat down to manufacture, I crafted no less than 20 necklaces in one go, turning my efforts into a significantly more profitable venture.
If I were to start a handmade business today, I'd exclusively explore products that lend themselves easily to batch production – a key ingredient for efficiency and profitability.
Lightweight For The Win
When developing a new handmade product, my preference would lean towards creating something lightweight.
This strategic choice holds a few key advantages. Firstly, if I aimed to entice customers with free shipping or a flat-rate shipping incentive, opting for a lightweight product minimizes the risk of losing money on shipping costs. Secondly, for in-person events, the practicality of loading numerous lightweight items into my car without the need for a moving truck or additional help is a major plus. Plus, lightweight products are a breeze to store, a significant bonus when running a business from the comfort of my home.
It's a simple yet savvy strategy that aligns with the practical aspects of shipping, transportation, and storage of handmade products.
Avoid Easily Breakable Items
When starting a new handmade business, my go-to would be a product that boasts not only the advantages of being lightweight but also non-fragile or breakable.
Firstly, there's a reduced risk of breakage during shipping, providing peace of mind for both the maker and the customer. Additionally, when it comes to transportation for in-person events or deliveries, the resilience of a non-fragile product lowers the risk significantly.
Let's face it – accidental breakage can be a nerve-wracking scenario, especially envisioning wide-eyed kids with busy little bodies at in-person events. I can almost feel the stress for ceramicists in those moments!
Opting for a non-breakable product not only hedges bets against potential breakage but also adds a bit of peace of mind to the handmade business journey. It's a strategic move that ensures durability and ease of handling, both in transit and at events.
Add Value With Packaging
If I developed a new handmade business, my choice of product would be one that effortlessly lends itself to a stellar packaging or unboxing experience. Why? Because packaging isn't just a protective layer; it's a golden opportunity to infuse added value into your handmade products.
This opens the door to pricing them higher and enjoying a more generous profit margin.
Let's picture it – a handmade bracelet is fantastic, but envision the upgraded experience when it's beautifully presented on a merchandise card, perfectly branded to showcase your brand. With the magic of cool packaging, you can transform a product, adding a touch of luxury and uniqueness without investing significantly more time or energy.
Think of it like this – adding cool packaging not only keeps your creations safe but also makes the whole experience for your customers top-notch. If you want even more ideas on how to add value to your handmade products, get my cheat sheet for five proven strategies to add value to your product business now!
A Blend of Stock & Custom Options
In thinking of launching a handmade business today, my strategy would revolve around creating a product that offers the best of both worlds – stock and custom options. The stock option would be a stand-alone product with a solid profit margin and a quick turnaround time, making it easily marketable.
Take, for instance, a gold bar necklace with a heart stamped into it – that's the stock option, very sellable in its base form. Now, here's the twist: customization. For those wanting to add a personal touch like their name or anniversary date, they can opt for the custom option at an additional price, elevating the product to a higher margin.
This dual approach ensures I can focus on promoting the stock option, a low time investment with robust margins, while also offering customers the opportunity to upgrade for a personalized touch, making the product even more profitable. It's a strategic blend of accessibility and customization for a successful handmade business venture.
Add Options For Upselling
Similar to the customization feature, I'd go for a product that naturally lends itself to a sweet upsell. But here's the fun part – my choice would be an upsell that's a breeze, needing little effort yet boasting a high margin.
One profitable and simple upsell is letting your customer opt for gift packaging. Another is with an add-on for your product- imagineou're selling key rings, and you throw in the option to add a colorful tassel for just $2.00 extra. Now, the real kicker is, you can snag these tassels for around ten cents each – a whopping 95% profit margin! It's a win-win. The customer gets to pick their tassel color, adding a personal touch, and you're over the moon with a high-margin sale.
Who wouldn't want that sweet deal all day long? It's the secret sauce for a successful and profitable handmade product business!
Make It Interchangeable
Let's talk about the magic of an interchangeable option. Imagine this: You sell a base-level product with a twist – some part of it can be swapped, replaced, or given an upgrade.
Take the classic charm bracelet. People aren't buying these to wear an unchanging piece of jewelry – no way! It's all about the thrill of adding more charms to tell their unique story. And guess what? Every time they want a new charm, who are they likely to turn to? You! Bonus points if you make it so that only you can craft the perfect addition for their base. It's like creating an exclusive club where they keep coming back to you for more.
Let's take a bow to Nora Fleming – she’s aced this game. You grab a base dish and then go wild customizing it for any event or occasion with their exclusive decorations. It's not just about selling a product; it's about crafting an experience that keeps your handmade business the one they keep turning to.
Products That Can Be Enjoyed, Then Repurchased
If I started a handmade business from scratch today, I’d opt for a consumable product. Now, what does that mean? It's something the customer can enjoy until it's all gone.
Imagine this: you create something so good that once they've used it up, they'll be eager for more. Think baked goods, luxurious bath and body treats, eco friendly cleaning products, yummy-smelling candles, or even cute planner stickers – all perfect examples of consumable goodies.
Why is this such a powerhouse move? Well, it ensures a steady flow of business because, let's be real, they're bound to come back for more when they run out. It's not just about selling a product; it's about crafting an experience that keeps them hooked on your handmade business- it's like creating a delightful cycle of demand for your products!
Conclusion
I were starting a handmade product business today, the key focus would be on smart choices that ensure a low cost, high margin, and minimal time and money investment. Although there are pricier and more time-intensive avenues that could still lead to profitable product businesses, I'm confident that the quickest route to profit involves considering these options.
Opting for lightweight, non-fragile products that could be batch-produced, along with offering customization and upsell options, would be the backbone of my strategy. Creating products with an interchangeable element and a consumable aspect would not only keep customers coming back for more but also establish a sustainable and profitable cycle for the business.
The strategy lies in crafting a business that not only thrives financially but also resonates with paying customers. It's all about finding that sweet spot where creativity meets practicality, setting the stage for a flourishing handmade business with staying power.