What you need to know about an Arts & Crafts Retirement Business
Many retired people would like to turn their hobby into an arts & crafts retirement business. Not a bad idea. However the key is that you need to start a business.
You may be able to make beautiful furniture, or knit nice sweaters, or make wonderful jewelry but you have to think more like a business person.
You can’t make tables and chairs out of the most expensive hardwoods and veneers and spending hours polishing it to perfection. People might admire your work but they won’t have the money to buy it at a profit.
If your sweaters are taking hours to knit and you are using expensive fabric, you might price yourself out of the market or find that you are making too little money per hour.
And your jewelry should probably be cosmetic and not with real diamonds, gold, or silver. Strangers have a hard time trusting a lot of money for expensive jewelry other than with a long-time establish store.
In other words, you need to make products that will sell to most people at a reasonable price.
Target market for your arts & crafts retirement business
The first decision that you need to make is who is your target market and how will you reach them. Then you need to decide what kinds of products you can make with the skills and tools that you have. Finally, you need a plan on how to proceed.
Learn all you can about the crafts business. Learn what sells and what doesn’t sell. Where other crafts people are doing business. Attend craft shows and flea markets to get to know the other crafts people. Ask them questions about how they got started and learn what works. Also read more books in your field to find out how to make better products.
Imagine your ideal customer. Is he/she old or young – worker, office employee, profession, wealthy, or retired? What would be their interests? What crafts products are they buying now? Where? How to you plan to reach them – flea market, craft shows, ETSY, eBay, Craigslist, or through friends and relatives?Ten
10 steps to setup your arts and crafts retirement business
- Select a business name that you can also use as your domain name. You can register your name with your state which will give you exclusive use of that name.
- Then take out a business license from your local government. Be careful here as many localities will not let you have any business is a residential area – not even a home office. If need be, use another address like a FedEx post office or an address of a friend who has a business in a commercially zoned area.
- Get an IRS business identification number.
- Apply with your state for a reseller’s permit which will allow you to buy wholesale from suppliers without paying sales tax. You will have to collect and pay sales taxes on any sales made in your state.
- Decide if you will operate as a sole proprietorship, LLC, or a corporation.
- Open a separate business checking account and keep the money separate from your personal accounts.
- Get a cell phone that you use strictly for business.
- Set up a web site with WordPress for your business. Even if you don’t plan to see online, customers will want to “check you out” on the Internet.
- Get good accounting software like QuickBooks.
- Make sure your homeowners insurance covers your home business.
Remember you are starting a retirement business not building another Joann’s, Pier One, or Michael’s emporium.
Keep costs low by working out of your house, basement, or garage. Don’t hire employees – use subcontractors or temp agencies.
Don’t invest all your retirement savings.
Decide how much money you want to earn, work the hours that you want, and don’t get tied down to a fixed location where you have to always be physically present like a store front.
Check out this link for more ideas. Hundreds of Retirement Business Ideas.
For more information check out my books