This week, Small Business editor Caitlin Sykes talks to business owners about craft business.
After moving to Kerikeri in early 2013, and at home with young children, Gwyneth Hulse started creating wooden projects as a hobby.
Fast forward two-and-a-bit years and the hobby has now turned into small business Gwyneth Hulse Design - a boutique woodworking studio from which Hulse and herhusband produce small homewares and jewellery. The firm's work is sold through 23 stores around New Zealand, as well as through a number of online channels, the Auckland Fair and Hulse's own online store.
Hulse says shifting from making objects as a hobby to creating products as a business required a "definite change in mindset".
"But there were lots of practical things we did to help that - things like registering as a business, employing a small business accountant/advisor, getting in a mentor, and allocating specific times to get our work done."
Christchurch-based Lucy Arnold founded Felt, an online marketplace for handcrafted New Zealand-made goods, in 2007. The site now has around 1,700 active online shops and around 64,300 registered users.
Arnold cites a few factors that can determine whether a craftsperson is going to create a hobby business or a more self-sustaining small business. The ability to respond to market feedback, and increase skills and hone products accordingly over time helps, she says, as does a healthy dose of perseverance and pragmatism.
"Creative people have a tendency to be very emotionally invested in what they're making, with less focus on what people want to buy. But the people who really thrive also think about their niche and market. They're not necessarily compromising on what they want to make, but they do their market research and can find that sweet spot," she says.
"The successful ones are also fairly careful about how they approach pricing, and they have staying power."
Auckland-based book artist Liz Constable of Book Art Studios began creating books as a hobby downstairs in her garage, while she ran a career coaching business upstairs. Then around eight years ago she decided to take up the challenge of turning her hobby into a business.
Constable says it's been key to apply her creativity to building her business, and she's developed a variety of income streams. For example, she creates commissioned books for members of the public as well as corporates (clients have included Coca-Cola, Beca and Fonterra); sells off-the-shelf books through Trade Me; has self-published her own book; and teaches bookmaking around the country, as well as at her studio and in others' homes.
"Be as creative as you can in all aspects of your business," she advises other makers who want to develop businesses. "I can't begin to tell you how many boring business cards I've collected from creative people over the years."
Coming up in Small Business: Office sharing arrangements are an increasingly popular option for small business owners, but what are some dos and don'ts when it comes to co-working? If you've got some insights to share on co-working etiquette drop me a note: nzhsmallbusiness@gmail.com.
