Keeping your overhead down is always important, but for small businesses cutting costs are necessary to simply survive during a recession!
When the economy is slow, consumers cut back on non-essential purchases. Since arts and crafts would not be considered essential items, many craftspeople will be among the first to feel the hit of a poor economy. But there are some things you can do to help your business stay above water.
Best Sellers
Focus on creating and marketing your best-selling product lines. This will not only help cut costs on supplies, but may also have the potential to increase sales. Keep in mind that while it is important to keep enough inventory on-hand so that you do not sell out at craft events, do not create excessive quantities. The products may not sell and you will be stuck with the expense.
Supplies
Save as much as possible on your supplies. Even if it is only a little here and there, it can quickly add up! Is it time to find new suppliers? It won't hurt to look, but be sure you do not buy more supplies than you absolutely need to get the job done.
Marketing
A poor economy is not the time to cease marketing efforts! However, you should try to focus on your best outlets. If you attend craft shows, it may be wise to stick to the events that have proven profitable in the past. If you must try new outlets, make sure they are inexpensive!
You may want to consider trying more local craft shows rather than events where you must stay overnight. If you must travel, talk to fellow crafters that you know about the possibility of sharing lodging. You may even want to try sharing a booth space with someone you know who attends the same show. But check with show promoters before you make these plans, many will not allow "booth splitting".
Have you been considering a Web site? Now may be the time to try it. It is possible to build and maintain an effective Web presence for very little money, but be sure to avoid the Top Four Craft Site Mistakes!
Debt
If at all possible, pay off all business debt. Debt is one of the major causes of failure among small businesses today. Interest on loans can quickly eat away at your profits during a slow economy. If your company is already debt-free, you will be on solid ground and will have the stamina to survive, even while your competitors go out of business.
Networking
Talk to others in the craft industry to find out what is, and is not, working for their businesses. Sharing ideas is one of the best ways to help your business grow. Our Craft Industry Networking Center is a great place to start. And our Arts/Crafts Business forum will provide you with a place to exchange ideas with thousands of working craftspeople from around the globe.
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