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- Herausgeber: John Wiley & Sons
- Kategorie: Fachliteratur
- Sprache: Englisch
Turn your handmade hobby into a thriving business Most Etsy sellers are confident in their crafting and artistic capabilities. However, many need guidance on the business-related intricacies of starting and maintaining a successful Etsy business. Etsy-preneurship helps existing and potential Etsy sellers understand the business fundamentals needed to become a small business owner on Etsy, including taxes, bookkeeping, marketing, finances, administrative tasks, daily operations, legal requirements, business plans, and improving your business skills. This book will help you make the jump from enjoying your handmade/craft/art hobby to running a profitable business. * Etsy-preneurship offers step-by-step advice on what it takes to bring in extra income or even one day run a full-time business on Etsy * Outlines the basic business skills and knowledge you need to run a business on Etsy * Explains how Etsy makes entrepreneurship attainable for everyone Each chapter even includes a downloadable business spreadsheet tool to help you put the steps into action. This book empowers Etsy sellers to turn their handmade hobby into a thriving business by employing foundational business concepts.
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Seitenzahl: 330
Veröffentlichungsjahr: 2012
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Contents
Foreword Timothy Adam
Preface
Acknowledgments
Chapter 1: Etsy + Entrepreneurship = Etsy-preneurship
The World of Etsy
Entrepreneurship Is for You
Etsy-preneurship Defined
The Etsy-preneurship Model
My Etsy-preneurship Story
Instructions for Etsy-preneurship.com and Accessing Digital Downloads
Download: Mission, Vision, Values, and Competency Statements
Chapter 2: Creating a Business Plan
Starting the Foundation
Benefits of Planning
Breaking Down the Business Plan
Download: Creating Your Etsy Business Plan
Chapter 3: Bookkeeping
Benefits of Bookkeeping
Talking the Bookkeeping Talk
Core Bookkeeping Functionality
Most Popular Etsy Bookkeeping Solutions
Key Bookkeeping Topics and Tips
Download: Bookkeeping Quiz—Finding Your Solution
Chapter 4: Taxes
Tax Prerequisite
Do I Need to File Taxes?
Am I a Hobby or a Business?
Federal ID: EIN
Form 1040
Schedule C
Self-Employment Tax
Quarterly Estimated Tax Payments
Sales Tax
Home Office Deduction
Equipment Taxation
Other Tax Topics
Download: Tax Calculator—Schedule C
Chapter 5: Finances
A Tale of Two Financial Approaches
Bank Accounts
PayPal
Pricing Your Products
Budgeting
Managing Your Cash
Three Financial Mistakes to Avoid
Financial Tips
Download: Pricing Tool and Formula
Chapter 6: Legal
Choosing Your Business Structure
Contracts
Intellectual Property
Small Business Insurance
Other Legal Topics to Consider
Following Etsy’s Rules
Small Business Ethics
Download: Business Structure Quiz—Finding Your Perfect Fit
Chapter 7: Operations
Why Operations Matter
Etsy-preneurship Operational Standards
Example: Operational Standards for Providing Customer Feedback
Setting Your Operational Standards
Failing Operational Standards and Correcting the Gap
Download: Productivity Log and Defining Your Operational Standards
Chapter 8: Marketing
Marketing Isn’t What It Used to Be
The Etsy-preneurship Practical Marketing Framework
The Marketing Disciplines
Marketing Strategies Need Structure
The 30-Day Etsy-preneurship Marketing Plan
An Example: The 30-Day Etsy-preneurship Marketing Plan
Free and Low-Cost Marketing Methods for Etsy Sellers
Good Product Photos Sell: 10 Tips to Make Etsy’s Front Page
Download: The 30-Day Marketing Method
Chapter 9: Etsy Community
How to Implement Tips, Tricks, and Nuggets
Download: Sales Countdown Goal Tracker, Customer Service E-Book, and Must-Read Etsy Articles (Top 100) List
Chapter 10: Practicing Business Self-Development
Developing the Foundation
The Top Etsy Seller Resources
Top Etsy Seller Apps
Download: Self-Development Resource Guide and Learning Opportunity Planner
Chapter 11: Encouragement and Next Steps
Real-Life Etsy-preneurs
Practicing Etsy-preneurship and Finding Your Inner Etsy-preneur
Your Internal Source of Encouragement
What Do I Do Next?
Download: Extended Interview E-Book and Next Steps—Commitment Statement and Planning Tool
Advanced Application Internal Study
Advanced Application External Study
Download Details and Closing Thoughts
About the Author
Index
Cover images: Corkboard © Ruslan Dashinsky; Paper © Rusm; Fabric © Petekarici (all from iStockphoto)
Cover design: Paul McCarthy
Copyright © 2013 by Jason Malinak. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
The term “Etsy” is a registered trademark of Etsy, Inc. This publication has not been prepared, approved, or licensed by Etsy, Inc.
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at www.wiley.com/go/permissions.
Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.
For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at (800) 762-2974, outside the United States at (317) 572-3993 or fax (317) 572-4002.
Wiley publishes in a variety of print and electronic formats and by print-on-demand. Some material included with standard print versions of this book may not be included in e-books or in print-on-demand. If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com. For more information about Wiley products, visit www.wiley.com.
Library of Congress Cataloging-in-Publication Data:
Malinak, Jason.
Etsy-preneurship: everything you need to know to turn your handmade hobby into a thriving business/Jason Malinak.
p. cm.
Includes index.
ISBN: 978-1-118-37838-0 (pbk.)
ISBN: 978-1-118-46173-0 (ebk)
ISBN: 978-1-118-46175-4 (ebk)
ISBN: 978-1-118-46176-1 (ebk)
1. New business enterprises. 2. Strategic planning. 3. Industrial management I. Title.
HD62.5.M35195 2013
658.1’1—dc23
2012026652
Dedicated to my wife Katie, my son Ezra, my daughter Joy Elle, my parents, and every Etsy seller who practices Etsy-preneurship!
Foreword
I first met Jason in the Etsy forums in 2007 when we both started selling on Etsy. His Etsy shop name was JJMFinance, and he was always answering Etsy sellers’ questions about taxes, bookkeeping, or finances in the forums. We got to know each other better starting in 2010, when we both realized we loved helping Etsy sellers run their businesses more effectively; we decided to start working together on various projects as a creative outlet for our passions relating to running a business on Etsy. We can talk about Etsy—and the knowledge, tools, and skills that will make Etsy sellers thrive—for hours!
Jason is a Certified Public Accountant (CPA) and Certified Treasury Professional (CTP), which means he knows his stuff regarding bookkeeping, taxes, and financial matters. He knows the needs of entrepreneurs, because he is one himself. We talk a few times every week, tossing around our latest ideas about how we can help Etsy sellers. He is not your typical bean counter; he is always thinking and seeing opportunity. His firm business foundation is built upon knowing tax regulations, legal requirements, bookkeeping standards, operational procedures, building business plans, and making smart financial decisions. He passes this foundation on to others through this book, Etsy-preneurship.
I call Jason the “Spreadsheet King,” because he can create a spreadsheet for any business problem and take a complex subject and make it manageable. His tools are always easy to use and extremely helpful. Right now, thousands of Etsy sellers are using his small business tools and spreadsheets, which he has created for hundreds of different tasks, from bookkeeping to social media marketing to goal tracking and everything in between. He has written many articles and has shared some of his spreadsheets with Etsy admins in the Etsy Seller Handbook.
One of Jason’s strengths is his ability to teach others complex topics and to communicate these topics in everyday language. How many people do you know who can explain small business tax regulations in a way that doesn’t make you fall asleep or become confused? Running a business on Etsy has thousands of moving parts, and it is great to see Jason put together such an organized resource that tells Etsy sellers what they need to know in an easy-to-digest fashion in Etsy-preneurship.
His analytical abilities are extremely helpful for Etsy sellers to run a better business. Jason can see answers that are lying beneath the surface of a spreadsheet full of numbers—telling stories and spotting trends that are not seen at a first glance. In the appendixes, his remarkable analyses of Etsy shops and the Etsy marketplace “by the numbers” provide new insight into understanding an Etsy shop’s performance and the Etsy marketplace. He can make graphs communicate trends that give Etsy shop owners a competitive advantage.
Jason and I work together on Handmadeology Pro (Handmadeology.com/pro), where each month we bring Etsy sellers more in-depth information on selling on Etsy. Handmadeology Pro is an extension of the day-to-day blog of Handmadeology. Jason and I brainstorm on the best information, tools, and training that Etsy sellers need right now—and Pro members receive these every month. We cover topics including increasing Etsy sales and traffic, marketing on social media sites (Facebook, Twitter, and Pinterest), branding your creative business, blogging, small business taxes, staying motivated, and the list goes on!
As a team, Jason and I work extremely well together. We bring different skill sets that complement each other. My marketing expertise and knowledge of social media and Jason’s ability to simplify complex business topics help make us the perfect team.
Jason is a valuable resource to the Etsy community, and his experience in helping Etsy sellers turn their dreams into thriving businesses is unparalleled. He enjoys hearing the success stories of Etsy sellers he has helped. I believe that part of Etsy’s growth can be traced back to Jason providing confidence to Etsy sellers in the how-to, day-to-day details of running a business on Etsy. He provided bookkeeping solutions specifically designed for the needs of Etsy sellers before many Etsy sellers even realized they needed to perform bookkeeping.
Jason is not only one of my business relationships, but also my friend. We talk on a daily basis, not just about business, but about our families, too. We have visited each other even though my family and I live in Ohio and Jason and his family live in Colorado.
Jason empowers people to run their own business by sharing his knowledge, tools, and skills with others. Etsy-preneurship is jam-packed with empowerment to help your Etsy shop thrive!
—Timothy Adam
Editor of Handmadeology.com
Preface
Etsy-preneurship consists of the knowledge and tools needed to start and run a business on Etsy—turning a hobby into a thriving business. Since 2007, I have helped thousands of Etsy sellers start their Etsy businesses, perform their bookkeeping, fulfill their tax obligations, operate with efficiency, market their products, and run legal businesses. Etsy-preneurship is the resource that gives you all of this and more!
I’ve packed as much valuable content and tools into one book as possible! It is my aim that this book will be a resource for both Etsy newbies and Etsy veterans. I hope that Etsy newbies can shorten their steep learning curve and that Etsy veterans can find some fresh ways to improve their business.
If someone were to ask me what he or she needs to know to run a successful business on Etsy, my answer would be, “The contents of Etsy-preneurship.” Etsy-preneurship provides a firm foundation on which to build a business—one that will last and be profitable and rewarding.
Chapter 1, “Etsy + Entrepreneurship = Etsy-preneurship” is centered on the selling venue Etsy.com and the skills needed to be an entrepreneur. Etsy-preneurship is the business foundation you need to succeed. First, you have to start the foundation, as outlined in Chapter 2, “Creating a Business Plan,” that will focus your business on the things that are most important. Then it is time to zero in on the six core foundations needed to run a successful business: “Bookkeeping” (Chapter 3), “Taxes” (Chapter 4), “Finances” (Chapter 5), “Legal” (Chapter 6), “Operations” (Chapter 7), and “Marketing” (Chapter 8). Next, the foundation is built stronger by using the information in Chapter 9, “Etsy Community: 40 Etsy Tips, Tricks, and Nuggets,” which includes various important business topics. In Chapter 10, “Practicing Business Self-Development,” I share the best resources and apps for Etsy sellers. Finally, Chapter 11, “Encouragement and Next Steps,” provides help to turn all your knowledge and tools into a successful business. For Etsy sellers who are looking for additional ways to maximize their opportunities for success, I have included two advanced application studies: “Etsy Shop Ratios” (Study 1) and “Etsy Marketplace Trends That Impact Your Business” (Study 2). Every chapter includes valuable downloads (spreadsheets, forms, lists, and e-books) that help you easily apply what you have learned in that chapter in practical ways. Etsy-preneurship is your road map to a thriving Etsy business!
It is my desire to empower you with knowledge and tools to achieve your dreams on Etsy. You can do it!
Acknowledgments
Special thanks goes out to my wife, Katie, for supporting me while working nonstop for months as I wrote this book and built the tools (knock-knock-knock, knock-knock). I appreciate Timothy Adam (Handmadeology.com) for all the ideas I bounced off of him regarding this book’s contents and his support toward Etsy-preneurship.com. I am grateful for Bethany Monk’s editing and literary feedback. Thanks to all Etsy sellers who helped me in various ways to complete this book: Coil and Flame (mission and vision statements), Lilleypics (mission and vision statements), serendipityds—Serendipity Design Studio (graphic design and color scheme), Heartworks by Lori (encouragement interview and customer service interview), Retro-Chalet (encouragement interview), Jen’s Closet (encouragement interview), JustJaynes (encouragement interview), and all the other Etsy sellers I have befriended over the years (your questions built this book). I appreciate Melissa Tenpas, The Blonde Dutch Girl (Etsy shop), for providing the author photo. Also, much respect goes to all the editors/owners of these fabulous Etsy small-business-related resources: Handmadeology.com, Heartmadeblog.com, Meaganvisser.com, Artbusiness.com, Papernstitchblog.com, Createasfolk.com, Scoutiegirl.com, and Smallerbox.net. Thanks to everyone at John Wiley & Sons. I also send my esteem to all current and future Etsy “admins,” who help thousands of business dreams come true every day. The Etsy community and I thank you for it! And last, but definitely not least, thanks to Jesus Christ, who gives me life in the full!
Chapter 1
Etsy + Entrepreneurship = Etsy-preneurship
The World of Etsy
Etsy.com is a place where e-commerce has a heart. Since 2005, Etsy has been, and continues to be, the place to buy and sell handmade, vintage, and craft supplies. It is a community of commerce—crafters, artists, entrepreneurship, hipsters, nerds, moms, dads, grandmas, grandpas, kids, and collectives all call Etsy their home. Etsy is where creativity and commerce are linked together, and opportunities for businesses are ripe!
According to its website, Etsy’s mission statement is “ . . . to empower people to change the way the global economy works. We see a world in which very-very small businesses have much-much more sway in shaping the economy, local living economies are thriving everywhere, and people value authorship and provenance as much as price and convenience. We are bringing heart to commerce and making the world more fair, more sustainable, and more fun.”
I personally know the power that Etsy brings to individuals who call Etsy their virtual storefront. Etsy provides freedom to succeed or fail in a business venture without breaking the bank. Crafters used to rely only on craft shows and boutiques to sell their products; while these are still important sales diversification revenue streams, Etsy opens the door to building something better. Etsy gives you a way to make sales around the world, build your business brand, and do it in a safe and encouraging environment. Selling on Etsy usually starts as a microbusiness, but can quickly grow into something more.
Etsy is booming! In just the one month of December 2011, more than 3.3 million items were sold on Etsy—with a value of $69.8 million! In that month, about 789,000 new members joined Etsy. The worldwide economy is hungry for commerce that is different. People are tired of giving gifts that are corporate-cookie-cutter look-alikes. Handmade and vintage is unique, original, and memorable. Behind every handmade and vintage item is a person—a person with passion and a story—not assembly lines, manufacturers, or corporate identities.
Etsy’s popularity is not slowing down. If you are or plan to be an Etsy seller, now is the time to claim your percentage of this market share. Creativity and quality are rewarded with success. Thousands of unclaimed craft and vintage niches are waiting for sellers to control, but creativity, crafting ability, and passion take you only so far—to be a lasting success, an Etsy seller must have a solid business foundation. Without a strong entrepreneurial foundation, Etsy businesses are not sustainable.
Entrepreneurship Is for You
Starting a business is not only for those individuals who have an MBA, hang out with venture capitalists, or are extreme risk takers. I firmly believe that most people should be small business owners at some point in their lives! Every person has creativity and untapped potential to make the world a better place through their respective businesses. In fact, I believe every person has a role in the global economy’s future success by starting and running his or her own small business.
Starting and running your own business is an exciting adventure—it shows your passion. Etsy sellers start their businesses for a variety of reasons, including:
The need for a productive and creative crafting outlet
To make additional money to pay off debt, save for a vacation, or achieve other financial goals
To take the first step toward quitting their day job
To work for themselves
Because they love buying things on Etsy and think they can sell, too!
There are just as many reasons for starting an Etsy business as there are Etsy sellers. No matter what your reasons are, I’m here to tell you, “Go for it! You can do it!” I’ve helped thousands of sellers start legal, legitimate, and sustainable businesses on Etsy, and I’m going to help you do it, too. Starting and running a business can be a little intimidating, but the way to overcome this fear is with the proper knowledge, tools, and guidance. I take great joy in empowering others to create businesses that are sustainable, thriving, and provide joy for years to come. I will teach you the art and science of Etsy-preneurship!
Etsy-preneurship Defined
Etsy + entrepreneurship = Etsy-preneurship. This is the formula for the operational success of your business. Etsy-preneurship is the adventure you are about to embark on or are currently embracing.
Since 2007, I’ve been in conversation with every type of Etsy seller that seems to exist, selling everything imaginable, all unique and different. Not so unique are the business-related questions I am asked. Most Etsy sellers have the crafting side of their business down well. I am always amazed at the new items I see for sale on Etsy! You already have the “Etsy” part of the formula—amazing crafting, artistic, and design skills. Of course, there are components to this side of your business that you may want to improve on. If you are like most Etsy sellers, you are more confident in your crafting abilities than in your business skills.
The “Entrepreneurship” part of this formula includes the business foundations that make your creations soar! Over the years, through hearing and answering thousands of Etsy sellers’ business-related questions, I know what it takes to build a successful business on Etsy. I have created a model, or method, on which businesses can thrive! My motto has always been, “Helping your Etsy shop thrive!” I want to help your business thrive!
The Etsy-preneurship Model
The Etsy-preneurship model will help your Etsy shop thrive! The following topics will help you build a firm business foundation, which will create success for you and your business. Tips and tricks are helpful, but a rock-solid foundation will help you build a business that will last. Each chapter of the remainder of this book corresponds to the following Etsy-preneurship model.
Creating a Business Plan
If you do not have an initial business plan, you are setting yourself up to fail. A business plan gives you a fighting chance at success. Planning in your head is not good enough. The process of putting it into written words really does make a difference, because it often shows so-called good ideas to be impractical and helps develop weak ideas into blockbusters of success.
Bookkeeping
The first time you spend or receive your money related to your business, a transaction has occurred and the need for bookkeeping has begun. Etsy sellers who sweep this administrative task under the rug to worry about later are asking for trouble. Good, simple, and practical bookkeeping systems help Etsy sellers are able to better price their products, make smarter business decisions, and meet tax obligations that all Etsy sellers face.
Taxes
Death and taxes—you know the spiel! All Etsy sellers have tax obligations, even if they consider their business a hobby! The tax law may seem confusing, but it is manageable in bite-sized pieces. I will help you cut through to the parts that impact most Etsy sellers and explain the tax code in everyday language. As a CPA, the tax code is something I read regularly. It isn’t always fun, but it is necessary. Having a basic understanding of the tax laws that face your business will make you feel more confident, especially when an IRS agent is sitting across from you asking about your Etsy business during an audit!
Finances
Running a successful business is dependent upon making good financial decisions. The way you manage your cash, bank accounts, PayPal account, and budgeting is just as important as performing your craft with great skill. I will reveal financial tips to help your business thrive, as well as the financial nightmares that you can easily avoid with a little foresight.
Legal
There is only one way to run your Etsy business—legally! Knowing the law gives you confidence to run a business well. There are legal implications regarding how you form your business, contracts you enter, and business insurance. Intellectual property (copyrights, trademarks, patents) are a hot topic for Etsy sellers. The law protects you, your business, and your creations. Legal knowledge empowers you and your business.
Operations
Operations are the day-to-day activities that make up your business. Consistency and standards are your friends when dealing with shipping, producing your products, photographing your products, managing your Etsy shop, managing your inventory, scheduling, and more. Solid operations set clear expectations for you and your customers to rely on. Stable operations that are sustainable will help prevent you and your business from burning out.
Marketing
Just because you list your product on Etsy does not mean it will automatically sell. Sometimes this happens, but it is not the norm. Marketing is where creativity gets to shine, but without the proper marketing framework and disciplines, your business will be all over the place and without focus. Marketing is an art that requires a little science to make its impact most effective.
Etsy Community: 40 Etsy Tips, Tricks, and Nuggets
The Etsy community is special. Most of the corporate business world is a dog-eat-dog environment, but the Etsy community is different. Etsy sellers help other Etsy sellers—yes, even direct competitors sometimes help direct competitors! Relying on the communal tips, advice, and wisdom from those who have gone before you and are in the same journey with you is a treasure chest of gold nuggets! Together, we will begin digging into these tips, advice, and wisdom and explore where to find more.
Practicing Business Self-Development
The fact that you are reading this book shows that you value developing yourself and your business. You must grow personally in the components you already know about business. This does not happen magically, but rather with intentionality. Business self-development is the water, fertilizer, and fertile soil that will help your business grow faster. It will also help you avoid costly mistakes. Together, we will look at the most helpful resources available for Etsy sellers.
Next Steps and Advanced Application Studies
Finally, you will be encouraged by the stories of a few Etsy sellers, and you can plan your next steps toward creating a thriving business. I have also included two advanced application studies that can help both newbie and experienced Etsy sellers improve their business by looking within their own shop and at the Etsy marketplace as a whole.
My Etsy-preneurship Story
My wife, Katie, started selling on Etsy in 2007, thus beginning her Etsy-preneurship story. She loves babies, had worked with babies in her job, and naturally started making baby-related handmade products. She sewed burp cloths, baby bibs, diaper bags, and the cutest little baby girl dresses and jackets! She started her Etsy shop as a way to be able to work from home and not take on a full-time job. During this time, we were saving money to purchase our first home, with hopes of soon expanding our own family with little ones to use all these cute things, too!
During this time, we learned our way around Etsy: buying raw materials, making products, taking pictures, writing product descriptions, pricing products, shipping products, and all the other fun Etsy activities (posting in the forums, Etsy blogs, and Etsy teams). It did not take long to realize, “Whoa, we are starting our own business here! What about the legal requirements of running our own business? What about the tax implications? What will we use for a bookkeeping system? Oh, we need a business plan, too! And wait, we don’t even have a business-only bank account! What will our day-to-day operations look like?” This is where my Etsy-preneurship story begins.
I have an undergraduate degree in accounting and a master’s degree in accountancy from Baylor University. I am a Certified Public Accountant (CPA) and Certified Treasury Professional (CTP). I have worked as an international accountant, financial reporting manager, and treasury professional. I have also always been passionate about finance and entrepreneurship—saving money in a tiny jar at the encouragement of my grannie at a young age, buying candy and marking it up for a profit as a freshman in high school, and, with a friend, starting and running a lawn care service in high school and college. Business and finances are part of who I am, and I saw an opportunity to help my wife make her business succeed.
I started out by building a bookkeeping system to help her keep track of her sales, purchases, and inventory. We started using it to track her finances, and then I had my “aha” moment: If my wife needed this bookkeeping system, other Etsy sellers did, too. I made the system a little more user-friendly and robust and opened my own Etsy shop to sell it to other Etsy sellers. The shop’s name is JJMFinance, where I still sell and am part of the Etsy community.
The first time I listed my bookkeeping system on Etsy, I was nervous! I remember looking at the pictures, reading the description over and over, wondering whether what I was putting up there was good enough. A few days later, it sold! I was so excited! After a few more days, I received my first positive feedback. I was hooked!
I began reading Etsy sellers’ business-related questions in the forums and answering them. Then I started getting more convos (conversations, or messages from Etsy sellers) with various business questions. Soon, I started creating more products to help address these additional business questions.
I got involved with Handmadeology.com (“The Science of Handmade”), which helps Etsy sellers run their business. Also, I am a contributing editor for Handmadeology Pro, a member-only site that provides instructional videos, e-books, and spreadsheet tools to Etsy sellers.
I also provide business advice for Etsy sellers through Etsy-preneurship.com and my related Etsy shop, Epreneurship.
This is my Etsy-preneurship story over the past six years. I love Etsy and Etsy sellers!
Instructions for Etsy-preneurship.com and Accessing Digital Downloads
Each chapter in this book has one or more digital downloads that can be downloaded at etsy-preneurship.com. On this site, each chapter has a specific web page with information outlining that chapter’s topic, including videos, useful links, downloadable spreadsheet tools, and other helpful information. Accessing this information is paramount to completing your study of Etsy-preneurship. When prompted, as you are downloading each chapter’s supplement, simply enter the password located in the back of your book. As you read through this book, here are the steps I suggest you follow:
All spreadsheets are designed for use in Excel 2007 (and higher) products on a PC for maximum functionality. The spreadsheets might work on earlier versions of Excel, but with possible changes in functionality and formatting. Google Docs, Openoffice.org, and other spreadsheet programs may or may not operate these spreadsheets correctly. For those Etsy-preneurship readers who do not have a spreadsheet system that will open these files, I have also provided printable downloadable PDF files. Every computer should be able to open PDF files using Adobe Reader (http://get.adobe.com/reader/).
For all downloads, I suggest you save an initial copy that you keep as a permanent copy and then save a second version of the file with a new filename for your working copy. I have left all formulas unprotected in these spreadsheets so you can customize them as you see fit. You do not need to know how to operate a spreadsheet program to use these tools. I have designed them in a way that, if you can navigate the web, you should be able to navigate the spreadsheets. At the end of each chapter, I will provide any special instructions or teachings related to that chapter’s specific download.
Download: Mission, Vision, Values, and Competency Statements
The first step toward practicing Etsy-preneurship is to know the “why” behind your business. The “why” behind your business can be found in four statements: the mission statement, the vision statement, the values statement, and the competency statement. These four statements can sound a little stuffy, but I have found them to be very helpful to focus small business owners on what their business is really about. These four statements will help make up the first section of your business plan.
Mission Statement
A mission statement defines the purpose of your business. It is a high-level goal that provides context and guidance to help you make future business decisions. It shows the aims of your business. The mission statement is broad enough to grow with your business, wherever it might take you years from now. Mission statements are for both you and your customers to read. It tells a customer why you are in business and is a form of your business brand. A mission statement is a type of philosophy you can fall back on when you are uncertain about a direction your business is taking. Here are a couple examples of Etsy sellers’ mission statements:
Coil and Flame designs and creates miniature pieces of art in jewelry form using sterling silver with mixed metals and gemstones. Each finished design is a one-of-a-kind or limited production piece that is a jewelry wardrobe investment for the discerning customer. Through online sales, home parties, and local networks, we maintain and attract customers with exceptional quality and service.
—Coil and Flame, by DLPom LLC
The purpose of my business is to share how I view the world through photography. Photography is a passion. With the advent of the digital age, I use my trained eye through the monitor of my digital camera, taking advantage of color saturations, macro close-ups, and the full range of editing. It is of utmost importance that any business transactions are for the customer. Whatever I can do to assure a positive experience for the customer is exactly what will happen.
—Lilleypics by Amy Lilley
Vision Statement
A vision statement is like looking into the future through a window you never looked out of before. What do you see? It provides inspiration to you by revealing your hopes and dreams for your business. It is bigger than a year in the future: It is what your business looks like 5 or 10 years from now. A vision statement should make you want to get out of bed in the morning and get right to work. Passion is poking itself into the vision statement. A vision statement is not typically seen by your customers, but is for your eyes only. Following are some examples of Etsy sellers’ vision statements:
Coil and Flame’s handmade jewelry business will be a recognized name in North America for modernly classic, sterling, and mixed metal jewelry designs. Visibility and demand of innovative jewelry designs will be increased through a presence in galleries and juried shows, ultimately growing the small business into a full-time venture.
—Coil and Flame, by DLPom LLC
My vision for my Etsy shop, Lilleypics is expansive. It is my hope to see my work, art, and photography broaden in depth and width over the next five years. Having just relocated to Colorado from New England, my inner and outer landscapes feel like they are being colored with a very, very broad brushstroke. Looking forward is easy, as every day is a new, awe-inspiring adventure for my eyes!
—Lilleypics, by Amy Lilley
Values Statement
A values statement defines what behaviors are important to you as you run your business. It defines your core traits. These core traits then help you represent your highest priorities. Your personal beliefs can also influence your values. Your values will help you define how you spend your time and with what type of attitude.
My business values are excellence, integrity, and service. I value a lot of other traits, but these are the few I focus on. I believe that if you choose too many values, none of them will be evident in your business. Other popular business values include honesty, love, kindness, patience, humility, persistence, wisdom, courage, flexibility, optimism, fun, compassion, learning, generosity, dignity, respect, loyalty, innovation, customer service, creativity, discipline, communication, reliability, responsibility, quality, timeliness, orderliness, accuracy, and hundreds of others.
Competency Statement
A competency statement is a list of what you do well that makes your business distinct. These strengths can be things that set you and your business apart from other individuals and their businesses. These competencies are not always unique, but they are not easy to duplicate. Your competencies help your customers build additional trust in you, your products, and your business. Competencies can give your business a competitive advantage over other businesses.
Some of my business competencies include small business consultation, taxes, bookkeeping, customer service, and teaching. Other business competencies might include skills or strengths you have. Your competencies can include specific skills related to your craft, your eye for design, photography or literary abilities, or even business acumen.
Download Instructions
Note: To download this document, please go to www.etsy-preneurship.com/downloads.
Access the download and write your four statements. These four statements will also serve as the first of five total parts of your business plan.
Chapter 2
Creating a Business Plan
A business plan is a written account of the who, what, where, when, why, and how of your business. Many successful Etsy sellers have gone through the process of creating a business plan. Small business owners create business plans in order to secure funding from banks or investors; this proves to the respective lending institutions that the business owners will make a profit and run a legitimate business.
Most Etsy sellers do not need a well-polished business plan. Instead, Etsy sellers need a basic business plan that helps solidify details highlighting their purposes, what their business is, what products they sell, their understanding of the market they sell in, their business strategies, and their understanding of the operational aspects of their business. A business plan is for your eyes only. The Etsy-preneurship business plan incorporates elements that are typically found in a business plan, but also includes elements that are found in some marketing plans. This plan is designed specifically with Etsy sellers in mind.
Business plans are not just for businesses that are starting out, but also for businesses that have been around for a while. I’ve read in the online Etsy forums of some Etsy sellers who had been selling for a few years that they put together their first business plan after their business had developed. After creating their business plans, these individuals learned something new about their products, business, and the market that they are a part of; this helped them with the future direction of their business. I suggest creating a business plan in the start-up phase of your business, but don’t skip this step just because you might have already started your business. In fact, reviewing your business plan every year is a good exercise to see how things have changed or whether your business focus might be going in a slightly different direction than you originally planned.
Business plans are living documents. What you put down today will be valid for the moment, but even a few days later, parts of the plan might change. This is to be expected, because the environment in which you sell and run your business is in constant fluctuation. Don’t worry about it! Also, don’t worry about writing down things you are not 100 percent sure about. This is a plan, not a set-in-stone, never-to-be-changed, I-know-all-the-answers type of document. This is the beginning of a firm foundation for your business.
Starting the Foundation
All buildings that last have a firm foundation. The type of business I want to help you build is one that lasts, thrives, and is strong enough to withstand the challenges and oppositions that will eventually face it. A hut built on sand will fall when the wind and waves hit it, just like a business without a solid foundation will fall when competition increases or a large challenge surprises the business owner. In fact, if you have already completed the exercise in Chapter 1 (creating your mission, vision, values, and competency statements), you already have the first part of the foundation complete. These statements are the introduction to your business plan.
Benefits of Planning
Some of the benefits you will experience from creating your own business plan include:
Understanding what your business is all about. No one in the world knows your business as well as you do, and if you don’t know it well, there is no way you can expect your customer to know your business.
Giving you greater clarity when setting goals for your business.
Providing you with a point of reference when making difficult business decisions or when you need guidance.
Giving you peace that although there are many moving parts and unknowns in starting and running a business, you are well prepared.
Making you proactive to the challenges that face your business.
Helping you quantify or measure what success will look like for your business. Defining success helps you know when you reach or get one step closer to it.
Ensuring that your implementation is consistent with your mission, vision, values, and competencies.
Providing you practical guidance toward financial funding and managing revenues, costs, and profits.
Making you aware of the environment in which your business operates.
Igniting you with motivation to achieve your plan.
Assisting you in focusing on setting the priorities that will eventually be the tasks that make your business great!
