Do you ever think about how to scale a handmade business?
You must have whenever you felt frustrated with low sales and high expenses.
Or, when you had whooping sales but could not fulfill the orders.
Such thoughts might make you feel like giving up on your handmade business.
For times like those, you need to read further.
How To Scale A Handmade Business In 9 Steps
1. Outsource
Suppose you are a beginner solopreneur in your handmade journey. Then, the thought of giving away a part of your job would scare you.
A change in mindset from doing it all alone to not doing it all is the deal breaker.
Of course, you cannot let anyone else do what comes unique to you.
Rather, you let others do what is not inherent to your skills. Such tasks could be packaging and shipping.
Or, you could even let your competitors handle the skills that are not your competency.
For instance, there could be some embroidered art that you do not know about. But there would be one handmade artist excelling in the same.
In that scenario, you can pass on the opportunities to those competitors. Thereafter, it will be easier to ask them for a sales commission.
Do not underestimate the power of holding hands together.
Another workaround is listing products on Amazon fulfillment service. That way a big chunk of your delivery gets outsourced. This is a great way to eliminate repetitive no-brainer product sales from your chores.
2. Repurpose Waste
Turning the leftovers from your products into use makes good business sense.
It may seem trivial or petty to do it. But it can increase your bottom line.
You can push your creativity to bring a purpose to the remnant scraps.
Suppose, you collect heaps of paper strips from a stationery business. Then, you can use them to decorate a new project. You could also create papier-mache projects with them.
That way you will find a new purpose for the waste collected.
In case, you do not find an alternative use, you can sell the waste. For example, you can use wood dust from woodworking to compost in a gardening business.
3. Collaborate
Every product has a complementary product to bring out its efficacy.
A crochet business does well with yarn bowls. Or, a soap business can collaborate with those creating soap cases.
By collaborating with complementing businesses, sales increase. You can place their products along with yours to bring sales of both.
The resulting sales of the other business will get you commissions. Thus, to scale a handmade business, collaborate with related businesses in your category.
4. Affiliate
It may not be feasible to collaborate with some businesses.
In that scenario, affiliation works. Consider it promoting another business without keeping its inventory.
You can recommend products that go well with your offerings. For instance, the printables business would pair well with Frixion markers.
You can look for affiliation opportunities through Amazon or a respective brand’s website. Thus, one more way to increase your earnings.
5. Take The Digital Move
You cannot survive without going online. That means your shop has to be present on all social media handles.
You must know how to sell handmade items on Instagram and Facebook. But that is the bare minimum. In the current times, you have to create and sell digital products.
It is possible to make a shift to the digital art business. It is simple.
The best part about selling digital products is that it has no shipping and inventory. Also, it takes away the forecasting decisions involving raw materials.
Print-on-demand and art prints are good to begin with.
6. Offer An Entry-level Product At The Entrance
I wish I had known this one earlier. Since the time I have applied this approach, my income has soared.
The logic is simple. You create a basic product in your category that is a must-buy. Also, it should be at a price low enough so that it sells more.
For this strategy to work, you should be able to create this product in bulk. The best part about this approach is that you know your average order value.
In the digital context, you offer this product as a trip wire. Thus, as soon as someone subscribes to the lead magnet, they receive this product offer.
7. Offer A Bundle
Tie and Buy offers have evolved over the years. Bundling a few products together and offering at a low price is a good selling technique.
The USP of such bundles is that they are too good to resist. That is why successful bundles take at most a heartbeat to respond.
Customers get to purchase a lot of products at a lower price. Also, you can chip in the products with poor sales in the bundle. That way you get to clear your inventory as well.
Bundles could also be Upsells since they are over and above lone purchases.
8. Preferential Low-Priced Products Offer
Another way to get more sales is to offer discriminatory pricing. One way of executing that strategy is to sell a few products at economical rates on a condition. The condition could be that the price goes super low for a selected few when someone buys a bundle.
You can put many products at low prices to induce sales. But it should be evident that there is a condition for purchase.
9. Invest In Emails
Suppose you have been regular in following my content. Then, you would know about my obsession with email marketing.
Collecting new subscribers with lead magnets is a major part of email marketing.
It brings in new avenues for business because you can send them updates. That means you can talk about new launches, discounts, and even good wishes.
If there is one best tip to know about how to scale a handmade business. Then, it is to add as many new emails as you can to your database.
I have done enough ranting on how to scale a handmade business with emails. Without email marketing, you lose out on connecting with the audience.
Emails let you initiate personalized communication thereby initiating the sales.
What If You Do Not Know How To Scale A Handmade Business?
1. More Work, Less Time, Less Money
The merits of scaling include more revenue, profits, and more time in hand.
Suppose you do not upsell or cross-sell. Then, you might work overtime, but end up earning less and having less free time.
2. No Innovation
If growing a business does not cross your mind. Then, it is probable that your business is stagnant.
Scaling a business requires innovations. Thus, if your business is not growing. Then, it is probable that you need to expand both your customer base and products.
3. Competitors Would Outpace
The need for a product/service innovation always exists. Without your business not providing it, the competitor would fulfill the need.
That is why knowing how to scale a handmade business is important.
Otherwise, your business would become obsolete.
4. Inflation Would Eat Up
Costs have an upward graph. Utilities like electricity and water; rental fares, and employee costs keep growing.
If the handmade business income keeps the expenses the same. Then, the inflation would eat up earnings. Hence, it is mandatory to know how to scale a handmade business to outpace costs.
5. Personal Life And Health
One of the advantages of scaling is that the business processes get streamlined.
That means the business runs on an auto-pilot.
This has a direct impact on the quality of life that you live.
When the business lacks healthy growth, it hurts its surroundings.
That could mean poor health and a stressful personal life.
Conclusion
Most artists do not know how to scale a handmade business. They assume that whatever they are selling will sell more and bring in more revenue.
But the reality is far from the wishful thinking. Adding variations of the main product; complementary products and digital versions is necessary.
Else the business would not survive by selling one type of product.
This article highlights the ways to bring in more sales and profits from a handmade business.
Plus, it also digs into the What-If scenario of not scaling a small business.
Do add pointers from your own experiences as well.
Planning to Read this article later? Why not save it as a Pin by clicking on the Image below.
Leave a Reply