craft business tips

Craft Business Ideas



Craft Marketer Newsletter 
Arts & Crafts Business Help

Issue Number 13, January 29, 2001
1. How to manage your cash flow
2. Resources for designing your arts and crafts web site
3. Subscription Management 
4. Contact Information

1. How to Manage Your Cash Flow 
by James Dillehay
How do arts and crafts artists handle ups and downs between 
shows to avoid going broke just before the next string of 
shows? One of the toughest parts of being in business is 
predicting your income. No matter how great your artwork, 
you still have to have sales and profits to survive. And 
you have to know when and how the money is going to arrive 
and how and where it's going out.

Budgeting can help. The most useful budget will be based 
on expenses and revenues gathered from your last year's 
financial records. If you don't already track your business 
finances from month to month in detail, make a resolution 
to do so starting now because good recordkeeping will help 
you manage the money you have on hand for the coming season. 
To put together a budget, you will need to record and 
project cash flow and prepare a profit/loss statement.

This article with Examples of a Cash Flow chart and a 
Profit/Loss Statement can be viewed at:

By creating such a spreadsheet for your previous year's 
income and expenses, you can safely project cash flow for 
the coming months. After I began implementing this cash 
flow method of tracking revenue and costs, I never ran 
short of cash again. I can project the numbers forward 
for any number of months and learn how much money I have 
to spend on materials, travel, new projects and other 
expenses. I know where my money is coming from or not and 
decide if I can afford to do more shows.

If you find that your cash on hand is now or projected 
to go below zero for several months, you need to take a 
serious look at your business. Where can you cut costs? 
How can you increase sales? If you borrow money, will 
sales from craft shows bring in enough income to repay 
the loan and get you back into the above zero range? 
These are tough questions. But you must ask and answer 
them to stay afloat financially.

Portions of this article are excerpted with permission 
from "The Basic Guide to Pricing Your Craftwork," by James 

2. Resources for Designing Your Web Site
Building a web site from which to sell your crafts can be
easier when you use the right tools. A program I use
and highly recommend is Site Sell. It makes the whole
process a step by step breeze.

3. Subscription Management 
To subscribe or unsubscribe, go to newsletter and follow the instructions.

If you found this information useful, please pass on 
this email to friends. 

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