How to Start Your Own Craft Product Party Business
If you have your own crafts to sell, you might consider starting your own craft product party business. Party businesses are direct sales companies that allow many people to become independent sales representatives of your products. They receive a percentage of all sales that they generate for your company. Creating a craft product party business will help you spread the word faster and gain more exposure for your crafts than you could on your own.
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Instructions
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Choose which crafts you will include in your party business. Keep in mind how long it takes to produce each item you plan to sell and remember that customers don't usually like waiting too long to receive their orders. Pick crafts people really want or need that cannot easily be purchased from a store.
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Price your crafts. You need to make sure your pricing is high enough to cover the costs of producing each item, to pay commission to the sales representatives selling the product and to clear a profit.
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Name your business and file business paperwork with the state you live in. Most party businesses are created as limited liability companies or corporations to protect the personal assets of the business owner. The U.S. Small Business Association can help you select the appropriate business type for your company, as well as connect you with the appropriate state government office for filing paperwork.
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Create a manual including policies and procedures, consultant agreement and requirements for each of your sales representatives. The manual should also provide details for how each person selling your crafts is compensated for his sales. Most party plans provide about 25 percent of sales to the sales representative as commission.
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Create a business starter kit for all new consultants of your party plan business. They'll need the procedure manual, policies and procedures, consultant agreement, compensation plan details and examples of the crafts they're selling. In addition, they'll need order forms for their customers and catalogs to show all available products for ordering.
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Design a catalog to showcase all of your available products. It should include photographs of the items, product descriptions, prices and shipping information for each product. Have copies made so that your sales representatives can order catalogs to conduct their parties.
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Host a party. Invite everyone you know to your home or other venue to view your crafts and help you kick-start your party plan business. At this party, give each attendee a catalog and information about how to become a sales representative. You never know who will be interested in selling the crafts and you should give everyone the opportunity to decide for themselves if it's right for them. Collect orders from people who wish to purchase your crafts and fulfill orders.
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Sign up anyone who wants to become a sales representative of your party plan business.
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Provide ongoing training for your sales representatives so that they are presenting your company the way you want it presented.
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Tips & Warnings
Become a sales representative of another direct sales crafts company before starting your own to learn what works and what doesn't work as well. You can use what you learn when forming your own business policies.
Be prepared to terminate sales representative agreements if they aren't representing your company the way you want it represented, or if they aren't meeting established sales requirements.
References
Resources
- Photo Credit hand crafted items image by Susan Rae Tannenbaum from Fotolia.com
