Resolutions for the Indie Business Owner

Is your House in order? As in your small business that designs, makes, and sells fashionable clothing and/or accessories.
Hopefully, as a small business owner you're still patting yourself on the back. I can count on my fingers and toes how many people I personally know that are only dreaming about what we've managed to achieve. When asked about my decision to start my own company I excitedly share how after only a few years of contemplation and many more hits and misses did I decide just how serious I wanted to take on this endeavor. I'm constantly reminded of how I, along with close friends and family, are proud and supportive of my journey. It was not easy walking away from a salaried position that offered benefits, vacation pay, a 401k plan, etc. Some days I still ponder the many items on my "What If" list and there's no telling if and when or why, for that matter, I will return to those days. Now that I've begun this investment, I'm putting up a constant fight to progressively maintain what I have. This, by no means, is an easy undertaking. I've developed more game plans than when I decided to earn my Master's Degree or take on motherhood. Might I add that I quickly learned that game plans are not the absolute necessity for motherhood as they soon get abandoned; rather, a sense of humor, positive surroundings, and a loving husband and family have worked the most wonders. I've never had to be more organized in my life. Heck, I'm an artist I thrive on unorganization, but I've found that this has been a necessary element and addition to achieving success. I had a little help formulating this list. You can see all the details if you visit: bizfinance.about.com/od/currentevents/a/Financial_New_Years_ResolutionI promise to better manage my cash flow. All it takes is for my fabric wholesaler to send me an email about the latest fabric trends and my order is placed. There's one section of my workshop that my babies dare not go near for fear of a small avalanche. I, honestly, have way more supplies and gadgets than I know what to do with. Did you know that I have an embroidery machine that I sometimes toy with because I don't have time to fully understand its capabilities? So, promise to self: stop spending cash on the unnecessaries. I will try to nearly deplete the fabric and notions on hand before doing a major re-stocking. Also, I've learned to use the business bank account on business-related expenses, only. I was defeating the purpose of opening a business account. Keeping separate books really pays in the end. It's the best way to keep track of the books. Keeping all receipts have been a big help, as well.I promise to prepare a business budget at the beginning of every budgeting period, stick to it to the extent possible, and change it with thoughtfulness when need be. I learned this early on when I started taking trips out of town to go shopping for fabric. I started figuring out mileage, food, gas and travel time. I reluctantly started ordering fabric on the web (I still prefer feeling the "hand" of the textile before purchasing), but when ordering via the internet I pay close attention to shipping and handling fees. Because I have a fabric ecommerce I'm aware that shipping fabric is not cheap, but some companies go overboard possibly to make up for the taxes they can't charge out-of-state buyers. For 2011, I've even started researching local festivals and trade shows to figure into my budget. I haven't fully started following the lesson plans just yet. I started using coupons, discount codes and rewards programs. I've even made sure that every wholesaler or supplier has my Tax ID number on file. I've managed to stay within budget on several occassions just by not having to pay sales taxes on purchases. I promise to keep better tax records in the future. This one has become very important on my "to do" list. In fact, I'm currently preparing my business taxes to be filed by the end of this month. To my fellow small business owners research how important it is to file your business taxes. Did you know that it's just as important as filing your income taxes? So many privileges can be revoked for failure to comply with the rules of your state's Department of Revenue. The hardest lesson for me was remembering when my taxes should be filed (quarterly, monthly, yearly.) Fortunately, I now file yearly. Having to file yearly means that my deadline falls around my birth date; it's easy to remember that something else important needs to happen on or before that day. Keeping all receipts has been a big help with this, as well. I promise to keep better track of my inventory during 2010. Uhmmm... I will try my best to work on this one. I honestly can't tell you what is what in the fabric section of my workshop. If I can't see it, I don't remember it being there. And it's not like I haven't organized and re-organized the bins and shelves. I just can't keep track of it. Also, I've gotten in the habit of checking inventory before each new project. I started pulling out all needed notions before a pattern is cut; just to be sure that I have everything I need before I get started. I get easily distracted and because I won't be able to make it to the local fabric mart anytime soon, I don't need anything other than motherhood to make me postpone sewing on any given day. I promise to analyze my financial statements each accounting period and try to forecast the future for my company. This will be the hardest. I imagine it to be even harder than having to forecast market and/or buying trends for the next year. I thrive on unpredictability and thought that I was doing okay by being inspired at a spur of the moment. I'm willing to try something new for the next year. I have been inching by with doing my own accounting, but I've seriously considered hiring a professional. I'm thinking that the outsider could catch some things that I've been overlooking.They would offer some advice on spending and bookkeeping habits, too The drawback is that that will be an added expense for the company.

I'd like to add that I am still a firm believer in flexibility. I can't get too bogged down with crunching numbers, watching tv for the latest fads or trying to do all of what I see others doing/making. I've got to still focus on what will be best for my company. I foresee that this will still mainly be a one-woman venture throughout the next year. Fortunately, my husband helps when he can with the business. He's been known to cut fabric, mail packages and definitely gives his opinion on whether an item looks nice or if it will sell. I can't try to take on or accomplish too much too soon for fear that I will quickly become overwhelmed... and there's clearly no time for a meltdown in 2011.

For Those of You Who Are Still Considering Starting a Home-based Business

I'm really happy about my decision to join a group called African Cultural Vendors. This is a network of African-descendant artisans. ACV is a venue and resource for artisans and craftspeople to network, offer feedback on shows, recommend shows or suppliers, anything an artisan needs.

The list began in 2007 as a central resource for artisans and craftspeople to locate festivals and events to exhibit their products. Unable to find a online resource designed for African-American artisans, the Yahoo group was created to assist vendors in locating conferences, fairs, festivals, and other events for their products. Although focused primarily for African American artisans and events, the list is all inclusive. All crafters are welcome. Currently, events are listed at the Yahoo group African Cultural Vendors. Please subscribe to the list at AfricanCulturalVendors-subscribe@yahoogroups.com Please be advised that all requests for membership require approval.

The following list was compiled by a fellow member of ACV. I couldn't have said these things any better or clearer than Sha has and instead of re-inventing the wheel, I decided to share her ideas with the readers of my blog. In addition to reading the info below, please visit her site for more tips on becoming a successful entrepreneur. Check back soon as I will post my responses to her tips. I will use her ideas as a checklist for my progressive journey as a successful businesswoman in 2011.

5 Important Do Not’s for Entrepreneurs 2011 Success. By ShaChena Gibbs

Do not start a business for the wrong reason.

Most people start a business just because it sounds good or because the potential financial benefits look good. Start a business that you love. Something you are passionate about. Your business should be your baby, a talent or skill you already process.

Do not form a business without your Tribe.

Begin to let your friends and family know about your new business. Attend networking events and speak up. Give away your product for testimonies. You must build a following before you begin to profit.

Do not skip out on your legal provider.

Starting a business consist of a lot of paper work like forms and documents. The documents need to be reviewed by a lawyer. Even your products and services. Consumers can really be rude and sue you for various reasons. Having your legal team can help you to avoid these problems before they become reality.

Do not do it all by yourself.

At the beginning it can be a bit tough getting friends and family to understand what you are doing and have them believe in your passion. However, we suggest you find at least 2 friends to assist you, even if it’s just with making phone calls, running errands, checking emails, and/or packing and shipping. Entrepreneurs tend to get burnt out during the first 5 years of building on their dream.

Do not forget about ‘CUSTOMER SERVICE’.

Your customers are the core of your business growth. Without them, you will not make no money. You might as well close your doors. Poor customer service can ruin you. Word of mouth marketing spreads faster than any email you can send out and it’s most effective. One poor comment about your company service can spread like cancer. Train your staff paid and /or volunteer to treat your customers like royalty. And remember to practice what you preach.

Keep Rising,

ShaChena Gibbs
Small Business Educator
Real Sisters Rising, LLC
http://www.realsistersrising.com/

For over 10 years, Real Sisters Rising, LLC founder and CEO ShaChena Gibbs has owned or managed small businesses. Expert in her field, Ms. Gibbs personally and professionally guide her clients/members to reach higher heights to achieve major success in their business endeavors. ShaChena Gibbs is passionate about helping women globally become outstanding role models now for our youth later. Ms. Gibbs is definitely “Helping Women find the Diamond in their Destiny". She has been featured in the Daily News and many other publications.

Tips to Motivate the Artist/Business Owner

"Men's best successes come after their disappointments."
- Henry Ward Beecher

I decided to share some tips that I’ve formulated for myself to help me figure out my direction and purpose in the next year and, hopefully, many years to come. I’ve shortened my long list as I found myself repeating some of the same statements or issues. If you have any to add, please feel free to do so in the comment box.

Tips to Motivate Myself the Artist as Business Owner:

1) Demonstrate that my customers and my products matter – Explain to myself my responsibilities as a business owner and artist. Understand how my work ethic, creativity, organization and punctuality contribute to my business’s success and my ability to meet deadlines and schedules.

2) Recognize good performance – Set a high production/quality standard for myself and then identify each of my efforts that exceeds my expectations or meets identified goals. Praise myself for a job well done. Discipline myself when my performance is not up to par.

3) Show confidence in myself and my work – Assign “stretch” goals that really challenge me to become a better artist by increasing the difficulty level for the next project. This will, also, build my confidence. Avoid the temptation to give up. Sometimes “muddling” through a task will motivate me to figure a problem out and then use real solutions.

As my first year as Kameli Shae and Ladyfingahs on Etsy comes to a close, I’ve begun to reflect and prepare for 2011. I must say that I came pretty darn close to meeting my goal of 50 sales for the year. That may sound like a small number to many, but when you have other responsibilities that are more important than a home-based business 50 sales can be a bunch. I need to add balance to the list. It can be really difficult at times trying to juggle all that my life entails. Through it all, I must say, I have a blast on this journey. It might be even more enjoyable if in the coming year, things get a little wilder... we'll see!

A few of My Favorite Things

1) Baking from Scratch - I took a break from my usual crafts to bake this bread from scratch. Everyone of us have an "un"hidden talent. Well, this is just one of mine...

This applesauce raisin nut bread was created using ingredients that were available in the kitchen that morning. In other words, I didn't fuss with going out to buy anything that wasn't on hand. I like to try to make do with my circumstances (a new lesson I've been trying lately.) I just kind of made my way through the cabinets and fridge to gather the items that went into my newly concocted recipe. A few of the items used were brown sugar, wheat flour, vanilla soy milk, raisins, apples that were peeled then boiled to the perfect consistency, cinnamon, nutmeg, walnuts and vegetable oil, again just to name a few. The next time I bake this I will try to remember to write down the recipe and instructions so that I can post it here on the blog. My breads usually only last a day or two in my house. Best of all, I enjoy letting the "dos chicas" help prepare and mix the ingredients. Baking time often turns into lesson time as we get to review colors, counting, opposites, sight words, alphabets, spelling and so much more...

How will You Shop this Holiday Season?

This was once available as a poll on this blog. Although the poll has been removed I still ponder this issue. I'm curious as to whether you've considered joining the handmade revolution or would you still rather run to Stuff-Mart the night before your chosen holiday to retrieve whatever remains on the shelves. Did you know that crafters have been preparing for this holiday season since mid-year; just like the major retailers? Have you considered supporting crafters who spend countless hours designing,constructing, selling, packaging, etc. their wares themselves. If you're not willing to support independent shop owners or local businesses (not chain stores) this year, consider adding it to your list of resolutions for 2011...

For those of you that are interested, I ask which will it be:

a) indie shops - buying handmade only
b) combo - indie shops and major retailers
c) not buying at all; making every item myself
d) not making anything myself; buying every item
e) not giving gifts at all this year

Gift Certificates...

are still a hit when it comes to finding the perfect gift. Somehow, though, I still feel that you need further convincing of this fact. First, here is a very important figure for you to ponder: 57% of Americans have this item at the top of their wish list (according to a survey conducted by BIGresearch for the National Retail Federation.)

We all have folks on our recipient list who are hard to please. Why chance it that they will be unhappy with the item(s) that you've purchased? Not to mention, if you've purchased an item(s) that the recipient can't return or exchange. Inventory in both of my stores tend to change frequently. I, also, periodically offer deals such as discounts, bogo and/or free shipping.

Gift certificates for Kameli Shae and Ladyfingahs can be found in the right margin of this blog. Here are a few other perks for buying these items:

• This is the best and most appreciated gift for holidays, showers, birthdays, graduations... any special or celebrated occasion. 
• You choose the increments. A lot of retailers have set amounts for their certificates and/or gift cards.
• My store's gift certificates will never expire. Furthermore, as a result of new guidelines under the Credit Card Accountability, Responsibility and Disclosure Act. The law bans expiration dates within at least five years after the cards or certificates are purchased or loaded with funds.
• I will not charge inactivity fees while shoppers take their time deciding which items they would like to purchase.

Gift certificates take the guesswork out of shopping. Make someone happier this year by ultimately giving them the freedom of choice... allow them to choose their own item!

Hobby or Home-based Business? A Profitable Decision.

Many professional crafters started their businesses after being urged by friends and family. It took me many years of entering and exiting the craft market to realize that I needed to wholeheartedly become a craft professional. I, in fact, never knew that Etsy existed until the creative force behind Mamanyah Creates and Natty Rootz Wear  (both on Etsy) introduced us. Affirmations and encouragement is important to all of us no matter what task we decide to take on. I treasure important people in my life who sincerely praise and appreciate my skill. Yet, to proceed at becoming a professional crafter interested in making a serious profit, I had to understand the difference between "hobby" and "business". A lot of this stuff, the necessaries, I've learned along the way. Which means I'm still figuring out quite a bit, myself. If you're not naturally a risk-taker like myself, you might cringe at some of my horror stories. Tales of how I jumped head first into my idea of starting a company. Lots of lessons learned, but lots of money and time wasted along the way. I should get a tattoo that says "Just do it" because that's how I take on many new tasks.

Anyone who believes that just because they have a passion for their craft or collectible that that will substitute for real business skills is in for a rude awakening; a very quick one at that!  A knitter who opens a shop stocked with only their favorite brand of yarn and needles is taking on a risky, or perhaps, bad idea. While enthusiasm for your interest is important and perhaps the biggest aspect of all, it really takes business skills to turn a hobby into a profitable endeavor. I challenge you to ask yourself whether you could turn your hobby into a profitable opportunity.

Can you set aside your personal preferences in order to observe trends and money-makers objectively? I actually started out that way. My love for African/Ethnic prints quickly put me in a box. Truth is, a lot of people who say they love the fabric and the culture are rarely buying items constructed from the material. Instead, I turned that interest in the textiles into a supply store: ladyfingahs.etsy.com. And if someone sees something on kamelishae.etsy.com that they want constructed of afro-prints, they just need to choose a fabric from the other site without being charged an extra fee. Before making any crucial moves, you have to honestly ask yourself whether you're willing to take time to learn business essentials. What are they? The list could vary depending on your industry, but for starters: basic book-keeping, permits/licenses, customer service, product info and the biggy... the IRS/tax filing.

Why continue giving away your creations when you can sell them? Go into business! Unlock that potential and turn your skills into cash. In closing, answer the following questions to help further define your status as a craft hobbyist or craft professional:

• Have you researched your potential market?
• Can your business make a profit?
• Can you formulate an efficient book-keeping system? Paypal has some really good apps to help with this.
• How will you keep track of your shop's inventory?
• Can you afford the necessary licenses and/or permits?
• Can you afford to advertise or promote your company and/or product?
• Will you file the proper tax forms to show deductions?
• Can you form a relationship with vendors and wholesalers? Do you know who they are? If not, do you know how to find them?
• Can you afford studio space or an office in or outside your home?
• How much time can you devote to your business every week, day, month?
• How will you brand your company? Do you have a logo, mission statement, letterhead, business cards, etc.?
• Can you attend (whether vending or just attending) craft fairs, bazaars, trade shows, etc.?
• What is your backup plan... for any of the above questions that were answered negatively ?

 This could be you!