I started Libellules about one year ago now and thought it could be of interest to discuss business aspects of a small handcrafted (and handcrafting) business from inception to "normal" operation.
The purpose of this blog is to relate experiences relevant to the creation and operation of a small business - ALL aspects of it (see below the topics that I hope to cover at some point in this blog). Beyond that, there is an ulterior motive, or rather many ulterior motives: generate some traffic to the web site for increased business, have fun writing, work out, through the exercise of writing, the progress (or not) of my business, help to keep me focused, and perhaps even help others who are considering starting a small business.
My background may be relevant since it will color my approach. I was brought up in a small business environment with a parent who was a serial entrepreneur. One of those businesses was successful enough to pay for a comfortable lifestyle (we never went hungry or without heat) including a university tuition in the USA. I was encouraged to start work in a large, reputable company in order to learn how to do things "properly", which I did for over 30 years, having worked in Sales, (Business) Finance, Service, Administration of Service, Marketing (Product, Communications/ MARCOM, Channel) as an employee, manager, and executive for local as well as multinational markets though not through smooth career promotions but rather in irregular motion. I have also worked in small companies, internet startups and more traditional economy structures. Libellules is not my first startup.
Here are some of the topics I hope to discuss through the blog - I am sure the list is not exhaustive and I cannot promise that I will follow the structure listed. The reason for structuring the list this way comes from my background. I think that small business is big business is ... well, small business. In other words, running a small business works best when you consider all the aspects that are more evident in a large business. I have the good fortune of knowing a few pilots who know the importance of checklists - a big business structure can serve as a useful checklist for a small business in order to ensure you don't forget something and get blindsided.
In no particular order...
- Sales
- Set measurable objectives (and measure)
- Essentially a retail business (not exclusively, but mostly)
- Forecasting
- Importance of seasonal buying
- tying up money in inventory
- tying up money and time in finished goods inventory
- losing opportunities due to lack of inventory
- Distribution
- Resellers
- volume vs profit
- costs
- Direct sales
- but can my products get the exposure needed
- costs ($ and time)
- Resellers
- Marketing
- Customers
- who are they
- what/why are they buying
- where are they buying
- when are they buying what
- Pricing
- To pricetag or not to pricetag
- Social conventions (haggling or not)
- Display/ RPOS
- Buy vs create
- Cost ($ vs time)
- design inspiration - attractive vs repulsive
- Promotions
- What/ when/ where
- Costs
- Maximize bottom line
- Trade-off between revenues and profit
- competition
- Getting known
- Logo and relationship to branding
- Media (all of them)
- Branding
- Business cards
- Stickers
- Banners
- Online
- Social
- Blog
- Products! (the right ones...)
- Customers
- Production
- Product assortment
- Cost vs market price
- COGS
- Special selling costs
- Special vs standard sales display requirement
- Special vs standard volume/ size requirement for transportation
- Relate to Marketing - what will sell (virtuous cycle)
- keep an eye on market
- associations/ guild/ market-makers
- Learning curve to profitable sales (time investment)
- Services (custom)
- Selling capabilities/ expertise - balance w/ standard
- Cost vs market price
- Production management
- Timing
- hobby vs business
- Quality
- Who decides whether a product is suitable for sale or for the "family gift" pile?
- Product assortment
- Admin and Finance
- Measuring the business
- Relevant metrics to help manage
- Measure for calculated risks
- Taxes
- How to measure and report, and when
- Systems vs Intuition - finding the "Golden Mean"
- Inventory
- Costs
- Productivity
- Invoicing
- accounting
- Measuring the business
- Leadership - The Human factor
- Strategy
- Review objectives and results
- save time through learned intuition (experience)
- Stop, take a deep breath, a long walk, and "have a think"
- Split personality
- Employee
- Owner - Business Manager
- Keeping things real
- Couples therapy
- Split personality
- Review objectives and results
- HR - keeping it personal
- Fly in the ointment vs enjoyment vs profit
- Training and development
- Business objective
- Hobby vs business
- Confronting reality
- Strategy
It's perhaps overly ambitious to think I have anything of use to say about any of these points but one thing is certain, I have had, this past year, a specific experience within every one of these points.
Enough of an Intro - next time I'll dig into the meat.