From William T Lasley,
Your Guide to Arts / Crafts Business.
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Principles that were thought of as common sense in Grandma's day still apply to today's business environment. So sit back for some tips from a wizened source you never thought you'd listen to for advice about your small business.

• Honesty is the Best Policy

Every day in the news we see dishonest business tactics ruining large public corporations. However, up-front behavior is even more important in small business management. There are a few things small business owners must do in order to survive, and all of them involve honesty. Pay your taxes. Keep accurate accounting records and don't fudge on the numbers! Your business will not succeed without paying taxes. As the owner, you are liable for any accounting errors that cause you to misrepresent your earnings. Honesty in business. What a concept!
• Save for a Rainy Day

Nothing can protect your company from a bad sales month better than a solid savings foundation. If every cent that comes into your business is spent with no savings plan, your exposure to risk is dramatically increased. One bad month can easily reek havoc on your finances, and a few continued months of lowered income may be the demise of your dream. Save as much money as you possibly can while running and growing your business. A good rule of thumb would be to have at least 6 months of operating expenses, including payroll. So save for the bad times because in business, just as in real-life, it sometimes rains!
• Good Things Take Time

This could also be called the "grow as you go" tactic. Too many small business owners just starting out obtain loans for thousands of dollars to begin their venture. But they forget that virtually every business will take time to turn a profit. When a company is top-heavy in outgoing expenses, profit lines shrink and exposure to risk soars. So start out small and with cash if possible. Then, as the profit comes in, use some of it to grow your business by purchasing equipment, additional marketing, materials and other things over time.
• The Customer Is Always Right

It's an old adage, but important enough to mention nevertheless. People always say they do not want to be bothered while shopping, but if you do not greet and offer assistance to people browsing your products who will? Furthermore, if a customer has a problem with a product, it would be better to offer a full refund than to have the negative viral marketing (word-of-mouth) that could follow. Even if you are positive that a particular disgruntled customer is 100% mistaken regarding the complaint, treat them politely (yet firmly) and do your best to resolve the issue. By treating every customer as if they were a valued member of your family, you will have a customer service policy that can't be beat!
• Quality Matters Most

No matter how well-run your business is, you must provide a quality product. A quality product is the single most effective tool in your arsenal of business tools. These days, people want things fast and cheap. However, those terms are seldom associated with hand-made products. The way to overcome the "fast and cheap" mentality is by providing such excellent craftsmanship that people do not mind paying more or waiting a little longer. If your products are superb in quality, you will not only find new customers but your previous buyers will also become repeat business!