Developing a Business Strategy for Selling and Pricing Your Craft.

Pillow by Master Craftsperson, Katherine Maccoll, from the 2009 Smithsonian Crafts Show

Business Plan or No Business Plan
(This is Part II A of a series of articles for craftspeople on Developing a Business Strategy for Selling and Pricing Your Craft. Part I is for beginning craftspeople (I prefer the term craftspeople vs. craftsman), and offers a simple formula for pricing your work.Part II is for mid career and mid skill level crafts people. This section is composed of three articles. Part III is directed towards full time craftspeople with a high degree of craftspersonship that anticipate earning a living from creating and selling their crafts.)

Developing a Business Strategy for Selling and Pricing Your Craft
Developing a business strategy for correctly pricing your craft work is the difference between being able to work full time as a craftsperson and accepting the label DIY. If your goal is to become a master of your craft and market the results, you'll need to put a business strategy in place.
Business Plans
Success at the mid career level involves the effective use of business planning, business strategies, and a clear understanding of how to market your craft work on the internet and in person.
Business plans are recommended by some successful entrepreneurs and ignored by others. Even if you just jot down where you are, where you plan to go and how you plan to get there, I recommend planning.
Developing a business plan for your craft business will give you a clear idea of the steps you think you should take to reach your goals. The plan should identify the need for professionals and organizations you will partner with - an attorney, accountant, photographer, web designer, related special interest groups, organizations and associations, gallery owners and curators, grant givers, etc.
Don't get hung up on what you perceive as the difficulty of putting together a business plan. Just do it! Doesn't have to be perfect. This is your plan, not a test, keep it simple and to quote Tim Gunn "Make It Work." Most importantly remember that the business plan is a document designed to be flexible. As your business grows and your direction changes, you can always update your plan to keep your goals current and focused.

Wearable Art created by Starr Hagenbring, from the 2009 Smithsonian Craft Show

Business Plan Resources
You've heard this before, but there are no better services available than those of the Small Business Administration (SBA) and Service Corp of Retired Executives (SCORE). Both organizations offer excellent advice for female business owners.
The SBA offers tremendous information on business plans including templates.
If you have a problem working with retired executives, get over it. You're not looking for technical geniuses here, but basic, tested advice on business strategies. Submit to being mentored to success!
Each site has links to your regional office. If you can get to an office, go. Take some business cards, other print materials, samples of your work and network. Nothing beats in person contact. When I was writing business plans for other people, I made a contact at the Brooklyn SBA. This connection resulted in almost 100% of my initial contacts and got my business off to a booming start.
Who knows you may sell some items and get business advice.

Wearable Art created by Patricia Palson, Master Craftsperson, from the 2009 Smithsonian Craft Show

Learn and Network
There are two reasons to join craft organizations - networking and information. You get more out of the craft organizations you choose to join by actively participating. So choose carefully and make sure you have the time to lick envelopes occasionally, or set up a database for your craft organization.
As your finances allow, you will want to join the following organizations:
AIGA - Everyone working in a visual graphics field of any kind should be a member of AIGA, the professional association for design. Visit the business section for truly helpful information, including templates for contracts and pricing guidelines. Scroll the archives to view images of historic graphic designs.
Your state arts organization - Find a directory of state art organizations at the National Assembly of State Arts Organizations.
The best national guild related to your craft. Find a directory of guilds on the American Craft Council website.
A local organization specific to your craft. I don't know where you live, so I can't recommend a specific group, but at this point you should know who is doing what on your home turf.

The cost of joining craft organizations, subscriptions to professional craft publications and ongoing training and skill building should be added to your budget under operations, incorporated into the pricing of your items, and used as a deduction at tax time.

A quilt created by Chris Roberts-Antieau, Master Craftsperson, from the 2009 Smithsonian Crafts Show

Tip - Plan for the Future

The American Craft Council Juried Selling Markets, along with the Smithsonian Crafts Show are the premier juried crafts shows in the United States. Set a goal now to participate in these juried markets at the next level of your career. Being accepted to exhibit and market your work at these juried craft shows will provide all of the business you will ever need. It goes without saying that you must be prepared to take advantage of the opportunity. That's why this is for the next stage of your career.
Spend time visiting the sites of the exhibitors. (Both the American Craft Council and Smithsonian Crafts Show websites provide a directory of exhibitors with links to exhibitor websites.) This will give you an idea of the quality of craftspeopleship, trends in your area of craft and the type of work boutiques, craft galleries and craft museums are interested in. Ask yourself how your work measures up. If you're not there yet, set a list of goals for getting there, including taking classes and seminars with Master Craftspeople. Add the goals to your business plan.
Stay tuned for more. Next Monday's blog covers Pricing for Mid Career and Skill Level Craftspersons.