Crafting A Business

Both Stevens and Gendron went into their ventures relying on gut instinct and a lot of faith. They also launched their companies at a time when the crafts field was not nearly as crowded as it is today.

The high level of interest in selling crafts is why Duncan, at the Cooperative Extension Service, stresses the need for market research. Can you produce the product at prices that will let you make a profit? Who is going to buy it, and how are they going to buy it? There's also a more philosophical question to consider: Do you love this hobby enough to work at it all day long, every day, for years?

Once you've figured out customers, distribution, profit margins and financing, another critical ingredient is needed to increase your chances of business success, says Duncan. "When you look at research on why businesses fail, at the top of the list is lack of business skills--management and financial. You can learn these skills," she says. "Take workshops at your local Small Business Development Center, community college or cooperative extension service."

Many states have also started programs that promote local crafters, including Louisiana, Maine and South Dakota. Kentucky offers one of the most extensive, according to Duncan. Called the Kentucky Craft Marketing Program, the 15-year-old effort provides craftspeople with business technical assistance, a listing of craftspeople in the state, a resource directory and an opportunity to exhibit. Those individuals who meet the program's high standards also receive assistance marketing worldwide.

This article was originally published in the March 1997 print edition of Entrepreneur with the headline: Crafting A Business.