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1. Underpricing Work
Too many crafters price their work too low. Remember, you should not only make sure your pricing includes your materials, but also needs to compensate you for your marketing (show fees, traveling expenses, etc.) and your labor.
2. Not Having a Plan
No, you do not need to hire a high-priced business planning firm to make a business plan, but you do need to have a well-thought yearly plan for your business. What shows will you attend and when? How much should you spend on supplies every month? Thinking these things through and writing all this down will help you stay on track and keep you from taking on too many obligations for the year.
3. Starting Too Big
Lots of beginners will go out and borrow thousands of dollars to start their crafting career. Buying the best equipment might seem like a good investment at first, but when lean times come those payments can break the financial back of small business owners in a hurry. Likewise, you should not start out with all the top-rated shows. Local craft shows are a great way to get your feet wet in the business without investing thousands in show fees.
4. Attending the Wrong Shows
This is a problem that many people selling fine crafts and artwork discover when they attend their first street festival. If people are paying $5.00 for hot dogs, you would think they would not complain about the price of your high-end crafts. Wrong! Fine crafts and artwork belong at shows where customers appreciate the work involved. Not at the "Texas Chili Jamboree!"
5. Not Budgeting
Nobody likes to make a budget; therefore many people simply do not. A budget is not some elaborate financial statement that takes days to write. It's just a way for you to tell your money what to do instead of your money telling you what to do! Plan your next month's budget for your business at the end of each month. Start with minimum expenses at the top (things you must have to function like show fees that are due, and the utility bills on your workshop) and work your way down the list to things you would like to do, should you make enough money (like having those brand new custom fliers printed).
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