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As time passes, you will learn what works and what doesn’t. As you gain this knowledge, you should be making adjustments to your budget to reflect reality.
This is made much easier by careful record keeping. You can use a simple spreadsheet or a small business software package. You can even use paper and pencil if you can’t afford
software.
If you track cost of your materials, costs of marketing your products and actual income you receive, you will know if your budget is on track, if you can afford new tool you want or if you should stock up on more inventory. You will also be able to decide if you should branch out or change direction.
The bottom line is that you cannot afford to throw money at your business. You must try to work around obstacles in a cost efficient manner. While your budget may reflect a short period of losses at very beginning, losses cannot be allowed to go on unchecked.
Careful, consistent tracking and a dynamic budget, one that reflects reality, should be major tools that you use constantly in your decision making processes.
If you use them, you should be able to avoid fate most small businesses face today - failure.
For more articles on business of crafting and how to get started selling your crafts, please visit The Artful Crafter - Your Craft Business Guide.
BY: Eileen Bergen The Artful Crafter www.theartfulcrafter.com
Ms Bergen has had a varied career, first as a special education teacher and then, after geting a MBA degree, as a vice president for a major insurance company. For the last eight years, she has been making and selling crafts.
