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7 Tips for Burning the Perfect Candle
Tapers, columns, votives, containers, pillars and novelty - chances are you have at least one of these types of candles in your home. Surveys done by candle manufacturers suggest that 7 out of 10 U.S households use candles, 96% of which are...
Build-A-CaveRock in the Backyard
January 11, 2005 -- When we were searching for a method of re-creating a national pastime favorite, the fun of caves and artificial rocks, we resorted to experimenting with our own concoctions and landed with a process that is fun, easy, and...
Cure Autism Now with a Silver Charm
Purchasing a silver charm is just one of the ways that you can help support autism research. Autism is a brain disorder that affects one's ability to communicate and associate with others normally. Symptoms are usually detected in the first three...
Only in Moderaton
An issue that many parents struggle with is how to manage their child's TV watching habits. Just like many other things, moderation is the key. Television can both stimulate and stifle a child's development. Knowing when and how much television to...
Unique Tin Can Candle Holders
Ah yes the good old Tin Can. The tin can has been around for years, providing many different projects to be made from tin cans. They are one of the most versatile mediums for crafts, besides wood and foam. Best part about them, they are cheap....
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The Business Side of Craft Shows
The Business side of Craft Shows
Starting a craft show business when you're really an artist at
heart may be a rude awakening for you. Nevertheless, if you
decide to turn your hobby into a business, you need to switch
hats from time to time. You wear your artist hat when creating
and producing your crafts, and you put on your businessperson's
hat when you're running the business end. Begin successful on
the craft show circuit doesn’t just mean you have a great
product; it also means you have a decent head for business.
Planning your craft show business
It's not absolutely essential to write a craft show business
plan if you're not seeking a loan or partner, however, it can
help you focus your business goals from the start. There are
numerous books and Web sites on how to write a business plan,
and most will fit with craft shows just fine. The most crucial
elements are the financial projections—which include your
estimated income and expense for the next several years—and the
marketing plan. The marketing plan helps you identify your
target audience and how you can best find and serve them. This
is essential as you develop your craft show product and find the
right shows at which to sell. If you are seeking capital or a
partner, you will probably need a complete business plan. If
doing this overwhelms you, contact your local Small Business
Administration, Small Business Development Center, Chamber of
Commerce or local universities to find help with developing a
professional business plan for your craft show company. At this
point, you may also seek the advice of an attorney to decide
what business entity yours will be—a sole proprietorship, a
partnership, a limited liability company or a corporation. You
can always grow into corporate status later on, though it's
advisable to at least know your options up front.
Licensing your craft show business
Most cities require any business, home-based or otherwise, to
register and purchase a business license. These range in cost
from $15 to $100 depending on the size of your city and are
obtained from the city clerk's office in most cases. It makes
your craft show company official and enables you to conduct
business legally. Find out if your city requires any special-use
permits for operating a home-based business. The rules may
differ if you have customers, supply trucks or employees coming
to your location.
You may also need to file a fictitious name statement with your
county offices if you call yourself anything other than your
name, such as Posh Pottery. This guarantees that
nobody else in
your county is using the same business name. From here your file
the name with a newspaper, and then you can open your business
checking account. It's highly advisable to keep craft show
business income and expenses separate from personal if you are
serious about being in business. Then on a regular basis, you
can "pay" yourself from your business account. You can also now
file your taxes as a business entity and take advantage of the
many tax exemptions for businesses. Car expenses or mileage,
supplies, overhead costs and more are all deductible. Find a
copy of a schedule C (www.irs.gov) to see some of the expenses
you can write off.
Now you have officially moved out of the hobby status and in to
the serious craft show business. Actually the IRS considers your
enterprise a hobby if you haven't made a profit in two out of
five years that you file as a business. If that happens, it's
time to rethink taking your goods to craft shows as a business
venture.
You will probably need to get a resale (sales tax) license. This
allows you to buy wholesale anything you will be reselling and
not pay taxes, however, you need to charge tax on your crafts
and then submit it to the tax board either monthly, quarterly or
annually. Check with your local state board of equalization or
state office of taxation to find out what their rules are. It
doesn't cost anything to get a resale license.
It's helpful when starting out to set aside a savings account
for your sales tax to be sure you have it when it comes due.
Also check with your sales tax office if you are required to
collect tax when you're selling in other states. Some show
promoters collect tax from you at the end of the show, so you
need to keep accurate records, which you can do by issuing a
receipt with every customer purchase. Make sure you find out the
amount of tax you need to charge at the show as it varies by
city, county and state. Also, it's a good idea to carry your
sales tax permit everywhere—you may need to pick up some
supplies, and you can avoid having to pay taxes on them.
Each city, county and state has different regulations regarding
licensing, so make some phone calls to find out what's required,
and do this well before your first craft show.
About the author:
Natalie Goyette shows you how to make your craft show
business profitable in her best selling ebook:
Craft Show Success Secrets. Visit her site:
http://www.craftshowsuccess.com
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