[Woodcarver] Business Plans?

[Steve Nordhauser]

I'm helping my girlfriend start a craft business - I agreed that I would 
focus on the business for a year before selling my own work.  I wouldn't 
consider starting something without a rough business plan unless you 
intend to keep it as a hobby and don't care about profits and cost.
By business plan I mean an outline that says:

-What I want to sell
- How much I want to sell it for
- Who I want to buy it
- How I will sell it - galleries, shows, internet and what the costs are
- Cost analysis - (selling price - materials-sales costs-overhead) 
/hours = hourly income
- startup costs
- time commitment
- what I hope to accomplish in 1 year, 3 years
- list of risks (licensing issues, linked to current fashion, competition)
- possible product variations to increase market and spread price range
- display and booth equipment requirements
- jury photographs - either take a class (our local craft center had 
one) or hire someone.  These are as important as a sharp knife!

- how will the bookkeeping be done?
- business format (sole proprietorship, partnership)
- sales tax collection
- DBA, trademarking
- bank account
- taking credit cards
- web site, brochure, business cards, artist's statement
- insurance

Paste that into Word, write a minimum of one sentence on each and try to 
be honest. 
Goals of quitting your job in one year sound great but covering costs is 
more likely.
It doesn't have to be formal, but you need to know these answers.

I'm finding that Microsoft OneNote is a great tool for keeping an 
electronic journal for a startup business.
I'm learning quickbooks, talked to my accountant, filed the DBA, have a 
bank account.  I built the first display rack and we did our first show.
We have our tax ID number for NY.
I'm learning that small craft fairs cost $25-$50 to get in, the large 
ones can be $200-$800.
Mall shows look interesting.
I still need to buy a canopy, folding tables and arrange credit cards.

My advice is get someone involved who will do a lot of the business side 
if you are not of that ilk. 

Steve Nordhauser
"An idea is like a caged bird.  If you want to find out what it is, toss it high into the air.  If it soars, it is an eagle.  If it plummets to the ground, it is a turkey."  -Me