Updated: Aug 7, 2021
by Aimee Lyons of DIYDarlin.com
In many ways, the pandemic has triggered economic devastation. But when one door closes, another door opens, and the pandemic has inspired the start of millions of new businesses in the United States. Many of these businesses involve the development of hobbies into profit-earning projects.
If you’re a new business owner or thinking about becoming one, there are a few considerations to keep in mind. The following tips can help build a successful business as the world emerges from the pandemic.
Register as an Official Business
Have you been brainstorming ideas for a craft-based business of your very own? There are countless stories of creative activities developing into entrepreneurial endeavors. In order to enjoy the same results, it’s important to legitimize your operation.
Registering your trade as an official business offers many benefits, such as:
● Acquire legal identity as a business operation
● Protect your business from a trademark perspective
● Access opportunities for growth such as financing and partnerships
● Register for licenses
● Better marketing opportunities
● Increase competitive value
Streamline Finances and Processes
As a hobby or idea grows into a functional business, entrepreneurs need to prioritize profit. There are several ways to cut down expenses and increase profit. For example, creating a detailed budget that includes all expenses will share insight on where to save money. Much of this is intertwined with your business processes; for example, if you intend to establish an assembly line for craft production, you’ll need to think through the details of how your product can be put together in stages, getting the parts in a timely manner, storage, and so forth. This will involve ordering, inventory, timelines, staffing, and payroll.
You can organize everything through charts and spreadsheets, or another suggestion is to use an online accounting platform that does it for you. Popular platforms like Quickbooks allow business owners to easily capture all their decision-driving data and even share it with others. With the right tools and data handy, you can analyze what is selling, what isn’t, where your processes can improve, and so forth.
Create a Strong Digital Identity
The increase in online sales and digital communication has made the online world a competitive environment. Building a strong digital identity is essential for success in the modern business landscape.
A digital presence can be created with a website, streamlined social media strategy, and paid adverts. Each of these avenues offers a way to connect with potential customers and increase brand awareness.
Whether you’re making and selling scented candles, you’re upcycling furniture, or you’re producing handcrafted gifts, there’s an opportunity to grow your income. Reaching out to potential customers and investors plays a crucial role in this growth.
Make an effort to refine your communication skills and practice networking. With lockdown restrictions lifted and more people getting out and about, outreach will become more hands-on and practical.
You will also need to hone your digital marketing presence. This can include any number of outreach strategies, such as social media. As CraftProfessional notes, you should begin your social media campaign with an idea of what you want to get out of it, then look at the major sites to decide where your goals will be best fulfilled. Also, beyond social media, you should consider other digital outreach, such as email marketing, blogging, vlogging, and newsletters.
Prioritize Customer Satisfaction
Customer satisfaction plays a key role in the success of a business, especially for startups. Considering that it’s easier to retain customers than to acquire new ones, it’s important to make sure that customers are happy with the product or service that they receive.
Word of mouth is another important consideration. A recent survey reveals that 90% of potential customers read reviews before making a purchase. The same survey suggests that product pages with reviews experience 3.5 times more conversions than those without.
Prepare for Growth
Finally, it’s important to position yourself and your business for future growth. There are several ways to prepare for business growth without unexpected hiccups. For example, you can enhance internal processes and continuously review your business plan. This simple strategy can help you identify areas in need of improvement and action items, like transitioning to a new web hosting service or switching up your routine.
The business landscape is constantly shifting. The increased number of entrepreneurs shows hope for a dynamic economy. Implementing these easy tips can help your business flourish during a challenging time.
Aimee Lyons loves crafting, refurbishing furniture, remodeling rooms, and landscaping. She is passionate about DIY projects and sharing tips about them. Aimee runs DIYDarlin, which provides DIY project resources and tutorials.