Rethinking Your Etsy Home Business Strategy
Let's start with a little disclaimer dance🕺. First off, I must confess – grammar and I have a traumatic relationship, so kindly turn a blind eye to any blatant rule-breaking or typos. We're all friends here, right?
And hey, just so you know, there are affiliate links sprinkled within this post. But fear not, your wallet💳 remains untouched. However, if you do decide to snag something through those links, yours truly might earn a small commission. It's like a win-win, right😁?
In our last adventure, we delved into the nitty-gritty of my first year selling on Etsy – the wins, the losses, and everything in between. But now, it's time to take it up a notch. Today, we're diving deeper into the murky waters of entrepreneurship, focusing on those crucial first steps when you're starting from square one.
So, grab your favorite sticker (PiggyPrints, of course)🐷 and settle in as we explore the ins and outs of launching your own business, whether it's on Etsy or any other platform. We'll be tackling some burning questions, like why starting on Etsy can be a game-changer for new business owners, and how to navigate the real expenses of launching a business when you've got bills piling up at home.
So buckle up, folks. It's about to get real. Let's dive in!
Rethinking Your Etsy Home Business Strategy
In this post we will cover:
- Unveiling Real Expenses and Navigating Business Beginnings
- Crafting Your Brand on a Budget: Clever Tips to Slash Costs and Make Your Mark
- Juggling Bills and Business: A Balancing Act
- Separating Business Profits from Personal Funds
Unveiling Real Expenses and Navigating Business Beginnings
Embarking on entrepreneurial ventures over the past two decades, I've dipped my toes into various business models – from Drop Shipping to Print-on-Demand, and everything in between. Before Etsy came into the picture, my shops were crafted on HTML or Wordpress platforms. When I first stumbled upon Etsy, I saw it as a haven solely for handmade goods. While that essence still remains, it's evolved far beyond, accommodating diverse businesses and artisans.
Fast forward to launching my first Etsy shop, I swiftly realized it's a platform where you can either thrive or fall flat. Many Etsy sellers are acing the game, pioneering trends or dominating niche markets. Regardless of your niche, Etsy offers a low-barrier entry, making it an ideal starting point.
Here's the lowdown on startup costs:
* Minimal investment: $10-$50 to cover listing fees for over 20 items.
* Listing fee: A mere 20 cents per item, which isn't daunting if you have fewer than 100 items.
* Pro tip: Share your referral link to earn 40 free listings for every new shop sign-up.
* When you open your shop, Etsy will give you 40 listings for FREE, so you can list to your hearts desire at no cost for the first 40 listings.
Crafting Your Brand on a Budget: Clever Tips to Slash Costs and Make Your Mark
Tips for Etsy success:
* Dive into Etsy's handbook: While I confess I didn't always do this, it's a goldmine of guidance to steer clear of policy pitfalls.
* Know your competition: Research your niche thoroughly. How does your product stand out? Be sure to order and test product samples for durability and quality. Make sure you know how your product shows up to the customer.
* Craft your shop meticulously: Take time to nail your branding, shop banner, and theme. Resist the urge to rush and launch – a well-constructed shop leaves a lasting impression.
* Utilize tools like Canva for crafting Instagram banners, Facebook banners, and more. Simply input your desired design theme, and watch a plethora of template ideas flood your screen, sparking creativity effortlessly.
Don't sweat it if design isn't your forte – Etsy's got your back with a plethora of sellers offering ready-made banners and themes. Focus on creating a shop that resonates with your audience, rather than chasing perfection. Take cues from successful shops to craft a cohesive brand that speaks to potential buyers. Remember, Rome wasn't built in a day – take your time and savor the journey of building your business on Etsy.
Once you've nailed your shop's layout, it's time to start uploading your products. Remember to keep each listing in draft mode while you perfect your listing titles and utilize SEO to match what people are actually searching for.
- Create Categories: Organize your products into clear and logical categories to make browsing easier for customers.
- Set up Shop Policies: Establish FAQs, Return Policies, Shipping Policies, and other essential guidelines to build trust with buyers.
- Create Listing Template: Develop a standardized listing template that you can use for each product to streamline the listing process.
- About Me Page: Craft a compelling "About Me" page that shares your shop's story and the reasons behind your entrepreneurial journey. Let customers know you’re WHY for creating your business.
Juggling Bills and Business: A Balancing Act
Ah, the realities of running a small business while trying to keep the lights on at home. Let me tell you, when I started out, I was bombarded with all sorts of advice from gurus and experts, promising the moon and stars but conveniently leaving out the gritty details.
You've probably seen those flashy videos promising you'll rake in thousands with Print-On-Demand, only to find out they're really just pitching their online course. Don't get me wrong, there's good advice out there, but sifting through it all can feel like searching for a needle in a haystack – especially when most of the useful stuff is hidden behind a paywall.
But here's the thing they don't tell you:
- Managing a business while trying to pay your everyday bills is no walk in the park. Not everyone has the luxury of splurging on fancy equipment like Cricut machines or printers to kickstart their sticker empire.
- And while Print-On-Demand seems like the answer to all your prayers – minimal investment, maximum profit – there's a catch.
Let's break it down with a real-life example: Selling Tumblers. You've got killer designs, and you're using Printify to handle manufacturing and drop shipping. You list each Tumbler on Etsy for $35, and before you know it, you've got 15 orders. Sounds like a dream come true, right? Well, hold your horses.
And here's where the rollercoaster ride blasts off:🎢 You're on the hook to pony up the cash upfront to kickstart production. But here's the kicker – Etsy hasn't coughed up a dime yet. After their processing fees and Printify’s cut, you're left with a wallet as barren as the Sahara, scratching your head and wondering how in the world you'll meet those orders.
And it's not just Tumblers – the same goes for high-ticket items with hefty production costs. You might sell something for $250, but if it costs you $200 upfront, you're left playing a precarious game of financial juggling, borrowing from one pot to pay another.
Note: I’m not saying this to rain on your parade if you're already knee-deep in the print-on-demand game, but for those who are just dipping their toes in, it's essential to understand what's required on your end - up front. I have been down this road and it was a painful experience.
Separating Business Profits from Personal Funds
Let me tell you, this topic hit me like a ton of bricks after years of losing money too fees and unforeseen costs. When I first started out, I made the rookie mistake of using my credit card to cover everything – fees, order processing, you name it. Not only did this blur the lines between my profits and personal expenses, but it was a financial nightmare.
Then along came PayPal – love 'em or hate 'em, they helped me segregate incoming payments from customers. I could accept payments and use that money to cover their purchases. Sure, some other Etsy users mentioned being able to accept PayPal payments in the past, but nowadays, Etsy prefers their own e-commerce payment system. However, if you're outside the US, PayPal is still an option from what I heard. If you know something different, please share your thoughts.
Enter Square Payments – my saving grace. I stumbled upon Square last year and haven't looked back since. It's been a game-changer for separating business expenses and incoming payments from my personal bank account. Plus, it's free to sign up and create a business checking account.
Here's the lowdown on Square:
- They offer Business Saving and Checking accounts. (No credit checks required).
- You'll receive a slick MasterCard Debit card with your company name on it, complete with your signature.
- You can link your Square checking account with Etsy to receive payments.
Pro Tip: Square integrates seamlessly with Etsy and lets you download your products if you decide to sell at in-person events. I personally use the Reader (Magstripe) for iPhone for in-person purchases – the Magstripe came free, but other products on their website come at a minimal cost.
So, my fellow entrepreneurs, let this be a lesson learned: running a business isn't all rainbows and unicorns. It's about navigating the highs and lows, the wins and the challenges, all while trying to keep your head above water. But hey, every obstacle is just another opportunity to learn and grow, right?
In the next installment of this series, we'll dive into: When to Cut the Etsy Cord and Launch Your Own Website.
With Appreciation,
Sonia