This section of your business plan is your reader's first introduction to your product line. Here's your chance to show your enthusiasm about your crafts. If you're not excited about what you want to market how can you expect anyone else to be?
Even if you're not preparing your business plan to secure financing, it's important to prepare the plan as if you are. You never know - in the future you may be looking to expand and need financing. Rather than have to rework the basics, write all parts of your business plan as if you are selling your arts and crafts to a potential investor.
Describing Your Arts and Crafts Products
First, describe your products as if you are explaining them to someone who knows nothing about your business. Your first step is to give a brief introduction of your business' type of arts and crafts industry. For example, if you're handcrafting woman's clothing, sold directly to the consumer, your industry is retail-clothing design.
Organize your products in a logical way. When considering how to do this, don't just think about how you like to have things arranged, think about your user of the business plan. It's all about making the plan easy for your readers to go through.
For example, If you handcraft women's dresses, organize your product line by day, work or evening apparel. If you're only handcrafting day dresses, organize them by long-sleeve, short-sleeve or halter, etc.
Ok, let's say you don't anticipate having any users for your business plan now - you're merely writing it to organize yourself. Still, it's a very smart idea to take the time now to thoroughly organize your product line while writing your business plan. Then you'll have a starting point for your promotional copy for your web site, brochures and other promotional material.
While describing your product, briefly tie in an explanation as to how your arts and crafts products satisfies your target market buying habits. While this is a topic you'll develop in your marketing plan and the section about your competition, introducing it here links parts of your business plan together. It also helps move your reader forward.
For example, let's say my new arts and crafts business is handcrafting decorative pillows. I'll be using organic fabric and hand-dyeing the material in a eco-friendly fashion so that each pillow is slightly different. It sounds like a pretty expensive proposition. However, I know from experience that if I order fabric in quantity and set the hand-dyeing up in production line style, I can cut costs to bring the pillows in for a more moderate price.
Taking these actions I'm moving an expensive home décor product to the mid-level customer budget. Push the fact that your customer will get a bit of luxury for less. I'll expand on this more in the marketing section of the business plan.
Describing any Special or Unique Facts About Your Arts and Crafts
Explain what features about your arts and crafts products make them exceptional. After all, that's the whole point of our business. We are taking our experience and passion to handcraft an uncommon article for which our consumer will be delighted to pony up the surcharge between our product and something they can get at Target or Macy's.
Once again, in this section, use with broad strokes. Get your reader interested and completely flesh out the concept in the marketing section of your business plan.