So I didn't know how in depth I was going to go with this whole etsy advice thing until I started brainstorming all the great things I have learned. I've made a lot of mistakes but I've had a lot of success too. And I do get asked about this a lot so in the future instead of retyping all this into emails I can just send them to my blog. Its a win win situation for me and you.
So when I first started etsy back in 2007 I was doing it because I was bored. Steve was going back to school and I needed something to do when he was doing homework. I had just redecorated our apartment and had fallen in love with making pillows. Steve was not in love with the pillows. I had been lurking around etsy coveting all the pretty things to buy and I finally decided to just go for it. So I approached it like any normal person: without a plan. This was a terrible idea. Always have a plan. When I started up again last year after we moved to Georgia, I created a business plan. Sounds scary and hard but it was easy and really helped me narrow my focus.
I found an excellent summary of business plans
here.
I made a plan, presented it to Steve and got to work. So when you're making your plan it might sound dumb but if you can't even write down why you're doing this or haven't thought about it that much then maybe you need to rethink somethings. I'm going to go through the basic sections and how they will help you develop your etsy business.
Executive Summary: Here you'll examine what you plan to do. Make pillows, make jewelry, etc. Why are you doing this? For extra money, to further a hobby, etc. Dates you plan on starting. How much time do you have to invest? Business name.
Market Analysis: This one is super important. Figure out what you want to do and then go take a look at your competition on etsy. Search through the category, click on different shops, see what products are moving. Is your category highly saturated? What is going to make your products stand out? Is there a need not being addressed? For example, when you search etsy there are thousands of listings for girl clothes but hardly any for boys.
Now don't get discouraged. I know that there are hundreds of sellers on etsy. Lots doing similar things. Don't let that stop you. You will have something unique to you and your own way of making it and marketing it. Remember: Its always good to be aware of what is going on in your field but don't let that deter you from doing what you love.
Marketing and Sales Management: Where are you going to sell your products? How are you going to get the word out about your new shop? Most of the answers to this section will be through etsy but there are outside options to look at as well. Besides etsy you could also sell at craft shows and do consignment with boutiques. Etsy is great because they do all the marketing for you. Listing and relisting will be your main method of attack but you might also consider renting ad space on popular blogs. (Although think of this, an ad space on a popular blog might run $50 a month but if you just spent that money in relisting and listing items you could save a lot of money. Listing 5 items a day at .20 cents per list would be $30 a month in great marketing through etsy)
Also there is nothing better than word of mouth advertising. It truly is all about who you know. Blogging, facebook, twitter, etc are all great ways to get the word out about your stuff.
Service or Product Line: This section is a more detailed description of what you plan to make. Materials, costs, the time it takes to produce. Do you plan on having seasonal items? Are you going to start with one product and then hope to expand? These are things to think about. Also I would include here what your costs and profit are projected to be. Here is a
great calculator to help figure out fees for etsy and paypal.
In general pricing should be a combination of the following factors: Actual Cost (materials+(production time X your hourly wage)+any overhead=cost. Cost x 2= wholesale pricing. Wholesale pricing x 2=RETAIL), the market, what you think is fair and competitive. So if your actual cost is $5 then wholesale would be $10 and then your retail would be $20. If you feel like $20 is too much for your product in this market then you either have to reduce your wages or reevaluate your material costs. More on pricing strategies later.
Funding Request and Financials: I needed to borrow some money from us for initial material purchasing. I wrote up a short loan and worked out a plan to pay it back to us. On the topic, it would be beneficial to get your own business checking account. That way you can keep your money separate and don't have to worry about keeping track of everything in your mind. It doesn't have to be an official business checking account, I have a free checking account of my own I use for business. Or you can just use paypal and get a debit card through them. Think about how many items you'll have to sell to pay back start up costs and then how soon you might be self sustaining (meaning you can afford to buy your materials). Is the time going to be worth it to you?
Okay so that is the end of the first advice section. Next time we'll talk more about etsy itself. And now for answering some questions and on that note, please comment with any questions you might have and I promise to answer them on the next post:
Q:I've been interested in starting (a shop) with kid's apparel and accessories but I'm not sure how much product I should make in advance.
A: This is a great question. Of course you don't want to have an empty shop because variety is what gets people to linger and lingering leads to buying. Plus the more items you have for sale, the more people are going to find you in the searches. When it comes to items that don't need to be customized like accessories or jewelry, I would say the more the merrier. Especially if you can make doubles of things, list each separately and you can use the same pictures and just copy the listing. Super easy. (I do this with pillows all the time.) If you have items that need to be custom like clothing, I would make one to fit a model (your child) and then offer it in multiple sizes. Since it might get hard to move particular sizes, having the customer select their size and then you make the custom size will be a lot easier for you. Just make sure you are clear about your procedure, sizing and any special time it might take to complete the product in your listing. Here is a
good example of a onesie that is offered in multiple sizes but you know the lady makes each one as it sells so she is burdened with unpopular sizes.
Sandy Creek is a beautiful park in Athens with a nice lake. I think it is part of a dam? Anyway, a bunch of families in the ward get annual passes there and we jumped on the bandwagon. And I am so glad we did. Yesterday we went to the beach with our neighbors and had a blast. Henry was not really digging the sand at first and freaked out a bit. We eased into it. Just sitting in it and playing with small cups I brought and then he took off. 
Gaining courage he figured out how to walk in it and even went to the water to throw his cups in. Trying to grab the sand and have it dissolve in his fists mystified him. 
The day was warm but not hot, so perfect. Joy and I chatted while the kids played and we all had an al fresco (a little bit sandy) lunch. Oh and when Henry tasted the sand it was hilarious. It coated his tongue and he couldn't get it off. So funny.
While walking he had to look down so he wouldn't trip but I managed to get one smile on film. What a cutie! We will be back. I'm thinking at least once a week.
