Expansion Tips For Small Craft Entrepreneurs With a Growing Business

Making a living doing something you love is a dream come true, but finding the best ways to expand your booming business can be a challenge. The good news is that there are more options than you’re probably aware of. The specific path for you will vary based on the time you have to commit to your business, as well as the specific product you’re making. These tips can get you moving in the right direction.

Start With a Single Product

When you’re first starting out, your goal should be to create and market a single product. Make it the best it can possibly be, and play around with different marketing techniques. You might set up a shop on Etsy, visit local craft fairs, set up a blog, utilize social media – or use several of these techniques. Find out where your customers are, and find out how to get them – but start with one product that you can optimize.

Adding More Products to Your Line

Once you've found great success with a single product, you can start expanding your line. Diversifying not only gives your customers a larger selection, but it makes your products more desirable to retailers who typically prefer a line of products versus a single item. This could mean adding new colors and designs to the product you've already optimized, or it could mean adding companion products. For example, a company selling baby blankets may expand to offer other baby items or entire gift baskets for new parents.

Focus on Increasing Sales to Existing Customers

It’s typically much less expensive to market to current customers versus finding new ones. If you've expanded your product line, this step may be as simple as letting your customers know about your new products. If you’re not able to expand your product line, then you can consider options like volume discounts. This is especially effective if your product doesn't cost a lot to produce. For example, if you’re selling t-shirts you might offer a buy one get one half price discount. This encourages additional sales from your existing customers, but doesn't cut too deeply into your profit margin.

You can also create loyalty programs that encourage your existing customers to buy more from your business and to tell their friends about you. You might give them a free product for every ten items they purchase, or you could offer a discount if their friends buy from you. The key is to give your customers an extra incentive to buy from you.

Target New Markets

The truth is that there are many competing home businesses out there. For most companies, sitting in the same place for too long will lead to a sharp decrease in sales. You need to always be on the top of your game and looking for creative new ways to move product. Targeting new markets is a great way to expand your customer base. Think outside of the box on this one! For example, if you sell custom jewelry to women, consider adding a men’s line. If you sell to individuals, consider targeting companies or larger groups.

Finding the perfect product is only the first step in creating a successful business. You must then get your product in front of potential customers, and give them an exciting incentive to push that glorious “BUY” button.