There are 3 main aspects to deciding the kind of business you want to start – the physical structure and the legal structure and whether you will start part-time or full-time.
The physical structure of the business
What shape and form that you want your business to physically take in this world? Will it be a store, a space in your home, your website, selling in other craft stores or selling online on eBay and Etsy?
You can choose to do any one of the above or combine them. Whatever you decide it is usually a advisable to start with one form that is the easiest to carry out for you and then expand to others.
The preferred approach is different for different people. Someone may have an accessible craft store in neighbourhood that is willing to house their crafts. Another might find the easiest results selling through their current contacts. A net savvy person might find it the most liberating to start a shop on Etsy.
We will explain how to start kinds of business in the next posts. So if you are unsure as of now don’t worry things will become clearer.
The legal structure of the business
The common legal identities that a business takes on are as follows Sole proprietorship, Partnership, Corporation and Limited Liability Company. For starting a craft business the first two are the most common, i.e. sole proprietorship and the partnership. Out of these 2, the sole proprietorship business is the most common.
You should take the advice of a chartered accountant or another qualified professional to help you decide the business structure that you want to start with. In most of the situations this is not a hugely pressing question as sole proprietorship will be the obvious choice. Your business structure decides the regulations you follow as well as the taxes you pay.
You do not have to do much to start a business as a sole proprietor. However we do not recommend starting a business without choosing and registering a business name.
Start a business part-time or full-time
The great thing about starting a business is the flexibility that you have in deciding your commitment level. Many crafters start part-time.
Many people have a wonderful talent and hold regular jobs at the same time. They decide that it is time they did something about setting up an income stream doing something that makes them happy. Starting part-time craft business works wonderfully well for crafters most of the times.
We tell you this if you are one of these people are in a job, but have always wondered if you can do something more with your wonderful crafting skills.
Well, you should and starting to work on your crafts part-time is the answer.
You can start part-time if you:
- Don’t have the time to comment fully just yet.
- Want to test if your craft business idea will work.
- Want to start small and with least investment.
- Working part-time suits your lifestyle and needs.
- Want to continue with your mainstream job and generate a second source of income that could become a full-time income in the future.
You can choose to start full-time if you:
- Have the time and resources to commit to making money from your crafts.
- Have a clear idea of what you want to sell.
- Have spent a reasonable amount of time planning and have created a business blueprint for yourself.
- Already have a record of selling to family, friends and personal contacts.
- Want to step up the income you make from your handicrafts.
- Want to step up the income you make from your handicrafts.
- Want to take advantage after crafting the revolution and the huge surge in demand.
- Are ready to learn what it takes and generate an income from your handicrafts from multiple sources.
As we keep informing you the most important thing is getting started.
Remember, regardless of what form you decide to give your business, do not skip the important steps for a start-up that we talk about in the next posts.
If you hold a job or other life’s responsibilities keep you busy you can start working on your craft business over the weekend. Some people also take a sabbatical from the jobs to put a few things in place such as planning, registering a business, etc.
