Posts Tagged: line sheet

biz notes :: small business start ups

Pretty-Paper-Please-Melanie-KimmettMélanie from Pretty Paper Please is here today sharing her final installment on creating your own product line. In case you missed it, click here for her other posts: consignment vs. wholesale | approaching and the follow up | branding | creating a look book | line sheets + catalogues.

What I didn’t realize when I first imagined starting my own stationery line was the amount of time and work needed to create, produce and eventually market and sell my own pieces. And then there’s the business/financial side! If you’re like me – creative, but no real head for math – that part of running your own business can truly be scary! And if done wrong, could really get you into trouble!

A bookkeeper and/or an accountant can guide and help set you up with good working habits in terms of how to organize and separate all of your receipts. They’ll also help you understand which expenses and what percentages can be written off, as well as give you tips on how to save money month to month! In other words, hiring a business/number-minded person will help shape your business and force you to be responsible about your own finances. If your finances are in order, well, you’re on track for some real business growth.

I asked my bookkeeper if she could put together a list of things she’d encourage any new business to look into and these were her top recommendations:

Decide on whether you are going to Incorporate or be a Sole Proprietor
First understand what either classification means, then decide how either applies to your needs and what sort of business you see yourself being.

Register your business name with the Government
Every country has its own rules and process for Small Business, which is why it’s important to research your options wherever you happen to be. In Canada, you’re required to register your chosen business name (if its anything other than your own given name) with your Provincial Government.

Register your business number with the Government
In Canada, every business requires a business number. If you’re deemed a Small Supplier (your business is making less than $30K/year) you’re unlikely to need a GST number. Depending on which province you’re selling in, or the types of goods you’re selling you may also need to register for a PST number. Contact the Canada Revenue Agency (CRA) to understand where you fit in.

Find a good bookkeeper and tax accountant
Bookkeepers and/or accountants are a great source of information. Getting things set up and done correctly from the start will save you time and money in the long run.

Open a business bank account + Collect your business receipts
The idea here is to have a separate bank account for business transactions. Doing this will make your life easier when it comes to bookkeeping! There are countless items you can write off as a business expense, but it’s important to understand what those allowable purchases are. Always ensure to hold onto your receipts for your bookkeeping as well as for safekeeping. In the event you’re audited, having those receipts handy will save you from any additional stress.

Good luck! And happy making & selling!

Thanks so much to Mélanie for sharing her advice! Check out her links here: portfolio | shop

biz notes :: line sheets + product catalogues

lotusevents_biznotes1After a teeny break, we are pleased to welcome Mélanie from Pretty Paper Please back to the blog today to talk about line sheets and product catalogues! You’ve got your finished product in hand. Your packaging is figured out. Your brand has been fine-tuned. You’ve built a cohesive brand story that exudes confidence and strongly represents you and your product. It might finally be time to reach out to the shops you’ve wanted to, for so long!

Not so fast! I’ve talked a lot about having a professional edge throughout this series thus far, and two imperative pieces to have at the ready are your line sheet and product catalogue. Both documents should be included in all introduction emails, as they provide shop owners with a comprehensive look at your product line, pricing, minimums and refund/exchange policies.

From her own experience as a previous shop owner, Rena Tom is an excellent resource for anyone starting a creative business. If you’re not already familiar with Rena, she’s worth following and will undoubtedly inspire. Thankfully she compiled and shared specific line sheet and catalogue requirements over on her blog a couple years ago. I referred to her list of must haves when it came time to create my own and would suggest you do the same.

It’s important both your line sheet and product catalogue fit within that brand you’ve worked so hard at establishing. You don’t have to get too precious with these – simplicity is key, as you want the information to shine here. When it comes to photography, it’s important that you capture each item properly. Don’t use flash photography and avoid any “busy” or distracting backgrounds. White or simple backgrounds are generally preferred.

I’ve created a mock line sheet and catalogue to help you visualize your own. Your line sheet will typically be an editable PDF, although I’ve known some people to create Excel spreadsheet versions. The catalogue can also be a PDF, but it’s a tiny bit easier to email a link around, so I host my catalogue on Issuu.com (a digital publishing platform). If you’re not comfortable setting these up on your own, reach out to a designer and work with them. It will simplify your life, I promise!

lotusevents_biznotes2PRICING
While we’re talking about line sheets I want to also briefly cover pricing. Generally, shops are looking to retail your items for double your wholesale price. This means you need to consider a few factors. First – the shop’s customer. What are they likely to spend on your item? Second – the shop itself. Is it a lucrative purchase for them? Third and possibly the most important – YOU! DO NOT EVER forget about yourself! You always want to consider your own material and labour costs, while also acknowledging some profit when calculating final wholesale costs.

Here’s a Wholesale Price Formula that is pretty tried and true, although sometimes it’s a bit of a balancing act to find that magic number for everyone: (cost of materials + cost of labour) x 150% markup = wholesale price

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MINIMUMS and MSRPs

Minimums
If the shop is interested in carrying your product line, they’ll typically ask about your “minimums”. What is a minimum, you ask? It is the minimum order the shop will need to place in order to receive your product line at wholesale price. Think about your material and labour costs and decide what minimum dollar amount is worth the wholesale discount.

MSRPs
The shop might also ask about your MSRP. What they’re looking for is your “Manufacturer’s Suggested Retail Price” for each product. It’s as simple as that.

Get out there and introduce yourself! You’re ready to sell! Good luck!

next post: The Business of Running your own Product Line.

biz tips :: approaching shops + the follow up

prettypaperplease3Mélanie Kimmett from Pretty Paper Please is back to talk about how to approach prospective shops and the follow up. If you missed part one, find it here! – Andrea

Given that we live in such a digital world, you can really get to know a shop, their lifestyle and their customers from their online presence these days. Most have their own Facebook, Twitter, Pinterest and Instagram accounts. Make a strong effort in getting to know these shops and their community through their social media touch-points. I say this because I believe it makes a significant difference when you finally approach them. It’s been important to me that I develop a relationship with every shop that carries my stationery line, so I make sure to personalize each and every email. There is a clear difference between being truly genuine, trying too hard or sounding too general as though you’ve sent a mass email. Keep things short and to the point, but make sure to charm them with what makes you and your product special.

Main points you should cover in that initial email is a brief introduction, link to your online shop (if you have one), mention real life stats on what has sold well for you, or if you’ve been featured on a prominent blog with the feature’s link. Some shop owners are specific about wanting to see photos of your product and in that case you should certainly attach one or a few. You’re ultimately selling your personal image and product in any of these communications, so it’s important that you’re as polished and professional as possible.

You should also include a line sheet and product catalogue in that initial email. The line sheet is typically your order sheet and the catalogue’s main purpose is to showcase all available products, as well as provide the shop with your wholesale price points. I’ll talk about how to best set those up in my ‘Create your own Line Sheets + Product Catalogue’ blog post in the next couple weeks.

I’ve been advised shops don’t really like being approached in person and I’ve noticed this to be true in some cases, but I’ve found when I’m traveling that it does help establish some sort of relationship that you can then follow up on later. Another option, if you can afford to do it, is to choose a few shops from outside your area every few months and mail them samples of your product. Same advice as above – write them a short note explaining who you are, and your product and why you chose to reach out to them.

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The Follow-Up
Eep. What to do with the dreaded follow-up email… Why haven’t you heard from them? How much time should you wait before emailing again? What should you say?

There are always several reasons why you may not have heard back from the shops you’ve reached out to. Shop owners are typically very busy people and can’t always respond in a timely manner. It’s important that you not take their silence personally though, as you’re likely NOT to be the only person emailing about your product, or they may have other shop-related priorities to handle first.

There’s no harm in a follow-up email if you haven’t heard from them after a couple of weeks. Please be cautioned to NEVER harass a prospective shop though, as you will likely alienate and create a strained relationship. Ultimately, shop owners know what’s best for their own stores, and it’s quite possible you’re just not the right fit for them. If you still haven’t heard from them after your follow-up email, maybe choose to move on for the time being. Try them again when you’ve got a new product to introduce.

next week’s topic :: How to Brand and Package Yourself