Wednesday, February 20, 2013

Inventory Management

As your business continues to grow, you are going to need to consider an Inventory Management system at some point in time. I can hear your groans now (and trust me, I've groaned a bit myself), but if you're serious about quitting your day job, developing a better understanding of your inventory is going to help you manage the business side of your art.

I can hear you now, "My business is small and I do custom orders only." Well, please consider the following reasons to begin a finished goods inventory system:

  • Craft shows - It can be difficult to track every item sold if you get busy. Knowing your beginning and ending inventory can help you reconcile your sales at the end of the event.
  • Planning for your heavy sales season - Do you prepare a larger amount of product prior to the holiday shopping season? Enough said.
  • Consignment sales - Some consignment stores have formal contracts for items you have delivered, others are extremely informal. You need to be able to identify the amount of product you have placed in a store to be able to reconcile your sales at the end of your month or other time period, as well as an understanding of your cash outlay in product.
  • Wholesale sales - As your business grows and you get additional wholesale orders, you will need a method to track on an ongoing basis how much product to make in consideration of how much finished product you have on hand. You may also need to produce additional items to prepare for imperfect or damaged goods.
  • Costs of goods sold - Dig out your accounting books! If you remember the difference between FIFO and LIFO inventory accounting, you know the costs of goods can vary over time. 
  • Cash flow - Your inventory represents liquid assets - an item to be converted to cash. Granted, this conversion doesn't take place until the product is sold. Conversely, your supply inventory is a sunk cost you cannot do anything with until you make a product (unless you sell supplies, which is a bit different discussion).
  • Taxes - As mentioned, your finished goods represent liquid assets for end of year accounting purposes. Which is why a good accountant will tell you not to replenish your inventory at your fiscal year end if you can help it. 

These are just a few practical applications of inventory management. Our next few weeks will involve a discussion on this topic, specific to your finished goods. While I use Stitchlabs online system to manage my inventory, the principles we discuss will be useful for all systems, even a simple Excel file if necessary. 

So please let me know your questions, thoughts and concerns, as well as your experiences and challenges with managing your inventory! 

Until then, happy sales!

Dorene

Sunday, February 17, 2013

Etsy shop review - Lizbeth's Garden

Today's Etsy shop review features Elizabeth of Lizabeth's Garden.  Please take some time to learn about her and her beautiful work!




I am a writer and an artist. I make and sell handmade beaded tassels, potpourri, engraved and stamped metal, paper goods, art collages, and more. I am inspired by colors and shapes -- I love investigating the way shapes interact with each other, and how colors play off each other. 

Cupid and Hearts Valentine's Beaded Tassel Wristlet Bracelet

I work for justice, and I love to create beautiful objects. Sometimes I take some thread and beads, and turning them into a beautiful beaded tassel. 


Home Decor Beaded Art Tassel with Blue Pearls -- Earth from Space



Sometimes I use a handful of vintage objects, some paper, and a frame to create a collage. And every summer I go out in my garden, picking the fresh flowers, and drying them in a sunny window to make potpourri.


Pink Rose Potpourri

I believe that every home should have beautiful things in it. I started this store after I could not find beautiful, decorative beaded tassels at a reasonable price for my own home. I love sending off my lovely creations for you to cherish.

Brown Bird Tassel Earrings Gold Plate Ear Wires



The product I am most proud of is this blue tassel with white satin ribbon, perfect for tying around your wrist. Tassel could also be tied onto a bouquet or clutch. Ribbon can be cut shorter if you prefer.


Blue Wedding Beaded Tassel Wristlet Bracelet

I read a lot of books, and I blog about my crafts, my writing, my garden, and social justice. I volunteer for social justices issues, and I work with and for children. I also have a large garden, that I am hoping to expand next year, both for cutting flowers for my Etsy shop, and for vegetables -- I want to start gardening year-round (in the northern US).


Customizable Engraved Copper Medallion

I am not in a bricks and mortar store at this time, but I do sell tassels in person to local customers. Local customers can contact me through Etsy to set up an appointment.

Please use the links below to contact and to follow Elizabeth:

Etsy shop: http://lizbethsgarden.etsy.com
Website: http://lizbethsgarden.com
Blog: http://lizbethsgarden.com/blog
Twitter: http://twitter.com/lizbethsgarden
Facebook: http://www.facebook.com/LizbethsGarden
Google+: https://plus.google.com/u/1/107144761188052752485
Handmade beaded tassels, potpourri, engraved metal and more:
http://lizbethsgarden.etsy.com
http://lizbethsgarden.com

Sunday, February 10, 2013

Treasury Sunday, February 10th

Every other Sunday I like to show my appreciation to members on Etsy who have featured my products in their treasuries.  Please take some time to view these gorgeous collections and go shopping yourself!










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