5 tips for running a small business

Day 8 in the Blog Every Day in May challenge is a piece of advice for others.

I often get asked by friends and blog readers who either want to start a small business or who are in the beginning stages, for my advice.  

Every single time I am asked, I feel so flattered.  I mean, everything I know I learned on the internet!  Well, and experience. The internet knows a lot about everything but there is something invaluable about just doing it.

When I started my business I knew nothing.  NOTHING.  I made a lot of dumb mistakes but I learned from them and am constantly striving to be a better business owner.

If you are one of those who is dreaming up a business and call on me for advice - this is what I would tell you.....

1. Don't half ass it.  If you are going to make a go it it, go all out.  Let's say you love to make your own soap and you might want to sell that soap.   My advice is this - if you are going to only put in half of your efforts, then just keep that soap making as a hobby. 

It seems like everyone is trying to do any little thing to make money these days.  I know we all need to make a living and I don't knock anyone's hustle, but I hate to see talented individuals half-ass a business.  It makes the product {which is often fabulous} and the handmade market look "cheap."  If you have the idea and the time, then go all out.  

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2. It is hard and often disappointing.  Starting and maintaing a business is a lot of work and you likely will not be an overnight success.  Yes, we all know that neighbor's sister's friend who made a million dollars the first year just from a little bitty idea but.....that's rare.  That is the exception.  That is not the rule.  

If you work hard and do good things, your business will grow.  It might grow fast or it might not.  My business has seen steady growth but it has not skyrocketed like I once dreamt it would.  Dreaming is so fun, but it won't get you anywhere.  

Keep dreaming but realize that in order to make those dreams come true you are going to have to work really freaking hard and there will be disappointments along the way.  I just suffered a pretty big disappointment this week and felt like a huge failure for about a day.  This will happen.  Give yourself a day to dwell, then get over it and do it better the next time.

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3. Price accordingly.  Your creations, designs, and work are literally your blood, sweat, and tears {trust me, I have shed all three} so don't cheapen them by thinking lower is better.  I have talked about pricing here and here.  It is so, so, so important.

4. Stand out from the crowd.  It is really hard to create something that no one has ever seen before.  The way the world is nowadays it seems like everything has kind of been done.   But that doesn't mean you can't put your own spin on something.  Be creative and unique, don't copy ideas.  Copying might make you a quick buck {or several thousand} but it will not make a lasting business.

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5. Never stop learning.   Just because I have been running {Acute Designs} for three years does not mean I know everything.  I might know a little bit more than the person starting today, but I still have so much to learn.  

There will always be someone "above" you that has been there, done that, and bought the t-shirt.  Learn from them. There are so many books and blogs with endless amounts of advice.  Take the advice to heart and keep getting better.

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I know I said five.... but my last most important tip is to make friends with other designers and small business owners.  They can teach you things {#5} and be your sounding board when you need advice or just want to bitch!    

No matter what happens with your business - whether it gets really big or stays small, you will never get anywhere if you step on people to get ahead.

And finally, the best part about having friends in the biz is that you can collaborate.  You look out for one another and promote one another.  I have made several friends through blogs and social media.  At one point in life, if you would have told me I would have a friend that I met on the internet I would have responded "no and I also don't keep people in my basement...."

Well, the world has changed.  It is ok {and fun!} to connect with someone through a blog or Instagram and become real life friends.

Do you run a small business?  What is something you have learned along the way?

pool tradeshow recap

I spent all of last week in Las Vegas for the POOL tradeshow.  Overall, it was a good experience.  I met a lot of awesome people and made a few good wholesale deals which never would have happened if I had not put myself out there and exhibited.

I had a goal to break even on all I spent {booth fees, hotel, food, etc} and that didn't happen.  So, I immediately felt like a huge failure.  I guess I naively thought the orders would just roll in and that did not happen.

I killed myself getting ready or the show, so I was beyond exhausted.  I was in the cash and carry section which meant that I had to have plenty of product on hand to sell right there.  I made about four of each item in my line, which was just ridiculous.  Every bone in my body was aching by the time we arrived in Vegas.

The first day of the show was SO slow and my confidence went down and down.  We stopped for dinner on the way back to our hotel room and my husband asked me the question "what woud you do differently if you did not have my salary to fall back on and all you had was the money your business made?"

I thought about this for a few seconds and decided nothing.  I give every bit of myself to my business.  I eat, sleep, and breath {Acute Designs}.  It truly takes up a majority of my life.  I sometimes don't know what else I can do or where I else I can pull from to make this business better.

I continued to reflect on Neil's question and went into day two refreshed and more confident.  I realized that this business of mine has grown from not even existing to a profitable and fulfilling venture.  I did that.  It was my hard work and literally my blood, sweat, and yes, sometimes tears, that got {Acute Designs} to the place it is now.  There is no reason why I cannot take this business to the next level.  So, I stopped feeling sorry for myself and had a much better time the next two days.

I could not control who will buy and how much they will buy, so I decided to focus on what I could control.  

I made a lot of connections with other designers and buyers and received a ton of good advice from those who had exhibited in past shows.  

So many other designers told me that orders often roll in after the show, once the buyers have time to go through all the line sheets they collected throughout the week.  I passed out line sheets like it was my job {because it is} and am positive that a few of those connections will turn into future orders.

There were some tough moments throughout the week but I am happy with the way things turned out.  There is no sense in dwelling on what could have been.  All I can do is move forward and try to be even better the next time around :).

let's talk about pricing....again

A little over a year ago, I wrote a post about pricing that has become the most widely read post on my blog.  The fact that it gets so much attention and traffic makes me happy because I want others in the handmade/indie business world to correctly price their items. It is important that we as a community value our work.

I also wrote about pricing and valuing your work on Design*Sponge about a year ago. Obviously it is something I am passionate about :).   My blog has a small reach, but Design*Sponge has a ridiculous reach, so I know the message is out there and I know many of you have the same frustrations.

My personal frustrations stem from the fact low prices hurt the entire handmade community.

After vending at The Queen Bee Market last weekend, I saw so many LOW prices.  As I walked around and shopped, I was constantly impressed with the quality of work and the creativity that each and every seller possessed.  And I will admit, as a shopper, the low prices were enticing but they are damaging in the long run.

Don't get me wrong, many vendors set their prices just right - high enough to make a profit but low enough to be competitive.  However, every few booths, my eyes would pop out of my head when I would spot jewelry priced lower than that at Forever 21 or Claires.  

I know how much certain materials cost and I know that some of these materials are really inexpensive but we cannot forget all the other factors.  Factors such as marketing costs, packaging materials, booth fees, and your time.  Your time and my time is worth SO much more than a few dollars per hour.

The whole pricing issue in the handmade world can be a really frustrating topic.  I know I shouldn't let it frustrate me and I should just focus on my own product and blah, blah, blah.  But this isn't my hobby, this is my livelihood.  And when I see products similar to mine priced for a third of what I sell mine for, I want to scream.

I know so many of you who read this blog are also small business owners and we all struggle with the fine line of making a living and setting fair prices.  It isn't the easiest thing to do.  

When I first opened my business, I was in the mindset that "lower is better," but over the years I have realized that that couldn't be further from the truth.

There is no need to be greedy when pricing, but we do need to focus on fair pricing.  Our culture is addicted to cheap goods but trust me, there is room for reasonably priced goods.  

This is how I price my items ~

When I attend a handmade market,  I am expecting to pay a little more than I would at say, Target.  If we continue to price our items at a Target level, then we will create a thinking that handmade is cheap.  Cheap is a word I would never use to describe my business, so why would I want to give that impression with super low prices?

Let's talk about pricing

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Yesterday, I took part in a GroopDealz deal and it didn't go over too well....


I am not sure if it was my product, the cost, or the mood of their customers.  Either way, it was a good experience and I plan on trying it again, but with a different strategy.


The headbands I chose to discount are super cute and the materials are very inexpensive.  The down side is that they take more time to make than some of my other products.


I was asked to go lower than my $9 price but I need to make a profit, so I kept it at $9.  Also, there was a comment made by a potential customer that "they are not worth $9."  


I am not offended by this comment - everyone has their own opinions and people choose to spend their money in different ways.  


What irritates me is that SO many in the handmade community devalue their products.  They price them just to cover their costs + a little more....thinking this is a positive selling strategy.  And in turn, they are breeding the idea that handmade products are not worthy of a higher price tag.

We are addicted to cheap goods and a handmade business owner cannot compete on price.

We all know that you can buy a flower headband at a big-box store for $5 or less.  If you want to spend less than $5 go buy one at a big-box store.  If you want something handmade, it going to cost a little more.


Why does it cost more? 

Because I pay myself a living wage.  

The people that manufacture the items at big-box stores are not always paid a living wage.  Also, these stores are able to keep their prices low because of the sheer volume of products they sell.


When I price my products, I consider materials, shipping materials, website fees, how long it takes me to make the product, how long I spend photographing, editing, and promoting the product, marketing costs, and a profit.


I also sell wholesale, so my wholesale price needs to be about half of my retail price and I still need to cover all of the above + make a profit.

{image via here}

If you own a handmade business and are not doing all of these things, you are selling yourself and your company short.  


If you just want to make a little extra money here and there and don't mind selling your products for far less than they are worth, that's fine, it is your choice.  But those of you who are trying to make a living need to make sure your products are priced to reflect all that went into each design.


People who buy handmade don't buy because it is the cheapest available.  


They buy handmade because they want to support local or small businesses, they like how each item is unique, they like the story of the artisan making the items...and so much more.


Handmade products cannot and never will be able to compete on price with a big-box store.  But they can blow these stores out of the water in almost every other way.

Value yourself and your products.  The right customer will pay what the product is worth.