Part 2 of getting started on the right foot

Getting Started on the Right Foot: Part II

by Bill

I know last week I said this would be two parts but after getting a head of steam built up I decided I would break it down into more bite size pieces....I know I have a propensity for verboseness!

Anyway today and next week we'll focus on the business end of making a living from your art by taking a look at some best practices.

As with Part I, in the spirit of not biting off more than you should, I suggest you pick two or three from this list to add to your own list, so you don’t put yourself in overwhelm. Then prioritize the list and focus on one, yes just one, thing for two months, throw fear out the window, turn of distractions, set aside time each day to devote to what ever it is you decided to focus on.

Set up a process for each focus area and a set of criteria to help you see your progress, once the two month period is over incorporate what you have learned into your business and move on to the next area of focus.

Ground work

Use the commitment level you determined at the start of this series and figure out what you need to support that commitment level. Then figure out what achieving and maintaining that commitment level really looks like. Make sure you really spend some time here you’ll want to include:

What is the time commitment?
How does it effect your life?
What is it going to cost to maintain your commitment level? Be sure to include payment to yourself.

Start keeping records

A record keeping system that gives you a way to judge your progress, keep track of who bought what, when, manage your inventory, and learn at a glance where you stand financially, is critical. We’re not talking about a complex accounting system, just something that will help you make decisions when you need to.

Moreover, if you are in the early stages of your career setting up and keeping a good system to track sales, income, costs and inventory will save you lots of time down the road.

At the very least the system should include three important categories:

Financial:

Keeping up to date financial records will give the ability to to know your cost of sales and your general expenses at a glance. Knowing these two things will help you stay on top of cash flow and make adjustments when needed. A few of the financial factors that should be included:

Records of your sales by venue - By keeping track of sales by venue you'll be able to know what sold at what price and more importantly be able to see trends that could help you make decisions relative to your participation at that venue.
Cost of sales- Your records should include each items cost of sales, specifically, everything associated with producing each work you produce. Cost of sales includes but is not limited to cost of all materials used, your time, travel, participation fees, refreshments and meals, etc.

Inventory:

Regardless of how you sell your work you should have a running inventory of each item with the following basic information readily available:

Image of the item- nothing fancy just a quick digital shot so you can remember it especially if your work is one of a kind.
Pricing- include the cost of sales, margin and final retail price
Quantity - There are a lot of ways to do this, a simple approach would be to separate your work by individual pieces and sets. If you sell jewelry sets count the set, that way you'll be less tempted to break a set up.
Sales venue - Keeping a record of where each item sold helps you learn whether and under what circumstances the item sold best. If you make one-off work, having a record of where the item sold will help you decide if more in similar style are in order.

Buyers:

Keeping track of your buyers is important for many reasons, not the least of which is keeping track of their taste so you can keep them up to date with your new work. But most importantly, your connection and relationship with that buyer may be the only thing that keeps her buying from you. Without that connection, you are just another maker of stuff which will only be compared to someone else's stuff on the basis price.

So, the very basic information you should have is:

Record what your buyers bought- This helps you keep track of spending trends, taste etc. and helps you in turn be able to let her know in a friendly way that you just made a bracelet that goes very well with the ear rings and necklace she already owns.
Contact information - Many have been hesitant to gather personal information, however, today most people are becoming more and more comfortable with sharing basic contact information. At the very least you should have their phone, address and e-mail
A record of follow up - Without exception you should be sending some form of follow up to your buyer thanking them for their purchase, the format you choose can depend on the purchase. So, someone who spent $10.00 may just get a note inside their bag thanking them while the $200.00 sale would get a personal not from you. Buyers appreciate and remember this sort of effort and position you in a more prominent place in their minds.

Even though this all seems very daunting, once started the process can be easily maintained using one of many data base programs or a simple analogue system using note cards.

Plan your work by using your records

When you have a reasonably reliable record keeping system, you’ll be better able to know what to make when and where to sell it, which will help free you up for the fun of making fresh new work. At this point it can’t be overstated...you will not always be on the mark on you projections, but at least you will be within the general vicinity of a bulls eye.

If you are new and have started a record keeping system you’ll have a head start on planning your work. That said, a lot of what you will be doing at this point will be nothing more than guess work, you’ll need at least a year’s worth of sales history, depending on your business model, to become more accurate. And remember accuracy is not about anything other than coming close or making your objective which can be adjusted as experience and history change.

Knowing what you are going to make each time you enter your studio will help you stay focused. If you are still developing your style set aside development time and consider whatever you make as experimental.

Your production schedule should reflect your inventory needs your sales projections by venue and your development time. The end goal of a production schedule is not to become a factory but instead provide a way to maximize your studio time and help you have the right stuff available at the right place at the right time.

Next week I'll talk about two techniques that are important in today's business environment and are especially unique to the single person businesses. You'll just have to come back to learn what they are