1. 1
Business Plan for Crafty Bee Chick
2014 - 2017
Document Version: V1
Date: 6 October 2014
Completedby: Sharron Baroudi
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Contents
Executive Summary ................................................................................................................................ 3
Company Profile..................................................................................................................................... 4
Aims and Objectives ............................................................................................................................... 4
Crafty Bee Chick Products ....................................................................................................................... 5
Market and market research................................................................................................................... 6
Customer Analysis .................................................................................................................................. 6
Competitor Analysis................................................................................................................................ 7
Talented amateurs.............................................................................................................................. 7
Professional Crafters........................................................................................................................... 7
Large Craft Businesses......................................................................................................................... 7
High Street Businesses ........................................................................................................................ 7
Competitor Strengths and Weaknesses.................................................................................................... 7
Customer Service.................................................................................................................................... 8
Business EnvironmentAnalysis................................................................................................................ 8
Presentation......................................................................................................................................10
Packaging..........................................................................................................................................10
Storylines..........................................................................................................................................10
CRMSystem......................................................................................................................................10
Trend identification and Setting..........................................................................................................10
Website.............................................................................................................................................10
Facebook...........................................................................................................................................10
Online sales.......................................................................................................................................10
Trade Fairs and Craft Markets.............................................................................................................10
PR and Editorials................................................................................................................................10
Selling through shops.........................................................................................................................10
Craft Courses.....................................................................................................................................11
Newsletter........................................................................................................................................11
Assumptionsfor Turnover......................................................................................................................14
My Track Record....................................................................................................................................14
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Executive Summary
I have always been a passionate crafter, making my very first dress at the age of 7 (my mother
was a dressmaker). Over the years I have dipped my toe into a number of craft experiences
and am a consummate craftaholic. I have had some success selling crafted and commissioned
items (mainly cards) and have received many compliments for my craft work which extends
across a broad range of discipline.
As a result of public spending cuts I recently closed down the charity I was Chief Executive of
and I am now in a position to pursue a long held dream of self-employment coupled with my
passion for crafting.
The market for handmade goods has increased dramatically over the last few years fuelled by
television programmes such as Kirsty’s Homemade Home, The Great British Bake Off and
Sewing Bee. Figures from Tech City News show that 210,000 people in the UK are employed
in the craft sector. Overall 76% of all craft businesses in the UK are run by just one person and
in total they are worth a remarkable £4.4 billion to the economy. Suggesting that small
handmade businesses are on the increase.
Etsy now has over 25 million members and has had an increase in sales over the past 7 years.
People in the UK seek unique craft items. Therefore small businesses in the UK are shining
through this tough economic time partly because of what the online marketplace can offer.
Crafty Bee Chick will produce handmade bespoke and limited edition items across a broad
range of mediums including greetings cards, gift baskets, framed prints, upcycled signs, bags,
cushions and jewelry to name a few.
The tagline for Crafty Bee Chick is ‘unique gifts for unique people’ and I aim to fill a niche in the
market for quirky items to meet specific customers’ needs as well as have a good selection of
standard stock for purchase.
My vision is to adopt appropriate ethical salesbehaviours:
I agree that salesisaboutlistening,engagingindialogue andmeetinganeed
I believemyrelationshipwithmyclientsisnotjustaboutthe sale
I will knowmyproductswell andprovide appropriateresourcestoenable myclientsto
understandmyproductswell
I alsowant to promote craftas a therapeuticendeavourtopeople sufferingfromisolation,mental
healthissuesanddisabilities.
Beingan MS sufferermyselfIhave some understandingof the limitationsthatillnesscanimpose ona
personandhow craftingcan assistinrehabilitation.
I wouldalsolike tosee more youngpeople craftingandtothisendI planto offercoursesthrough
schoolsandlocal communitycentres.
4. 4
Company Profile
CraftyBee Chick
OwnerandAddress
SharronBaroudi
34 MackinnonAvenue
KivetonPark
Sheffield
S26 6QB
Main contact: 01909770575
Mobile: 07500700687
craftybeechick@yahoo.co.uk
www.craftybeechick.co.uk
Owner Profile
I have 35 years of work experience across a broad range of discipline including retail,
commercial, private and third sector.
My most recent role was Chief Executive of a Sheffield Charity and Director of its trading arm.
I have always been a passionate crafter and having recently closed the charity due to public
spending cuts I now find myself in a unique position to finally chase my dream of setting up a
craft business.
Aims and Objectives
The primaryaim of Crafty Bee Chickisto make and sell individual,limitededitionandbespoke crafted
itemsforsale and thiswill be the focusinyearone.
CraftyBee Chickwill alsodeveloppartnershipsandworkingrelationshipswithlike-mindedpeoplein
orderto cross sell andpromote eachother.
In yeartwo the aimis to supportothersintocraftingthroughthe developmentanddeliveryof craft
trainingincommunitysettingssuchasschools,local developmenttrusts,care homesandothersocial
settings. Craftingisanextremelytherapeuticactivitythatcan aidinrecoveryfrommany mental and
physical healthissues. Atthe momentthere isverylittle opportunityforyoungerpeopletolearnand
getinvolvedincraftingasan art form:
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“At the Crafts Council, we believe a vision is needed to support high-
quality craft education, as key to cultural, economic and social vitality
in the UK.
Our research has revealed the UK’s enormous potential to be a leader
in craft and making. Never has the value of craft to individuals and to
other industries – film, theatre, medicine, the automotive industry -
been more visible. But it has also highlighted that the craft educational
‘ecosystem’ is alarmingly at risk, from declining school participation in
craft through to weak employer involvement.
Craft embraces learning that encourages people of all ages to take
risks, to explore, investigate and experiment. It creates powerful
learners who are curious about the world, reflective and courageous –
and who delight in the growing interest in making. Learners who will
shape innovation and the future.
That is why we are developing, in consultation with partners and the
sector, a manifesto for craft education and making.
This manifesto will be launched at an event at the House of Commons
on the 10 November. Following that launch we hope that you will join
us in communicating the messages of the manifesto - those of the value
of craft skills and careers, and the cultural, social and economic
excitement and interest which making can inspire1”
In yearthree the aimis to delivercraftsegmentsaspartof team buildingandstaff awaydaysto
businessesandpotentiallyopen asmall shopsellinghandcrafteditemsfrommyself and othertalented
craftersin the communityincludingthose thathave undertakenthe trainingIhave delivered.
Crafty Bee Chick Products
Cards All occasion
FramedPictures Specialistone off
Paintedwoodenitems Householditemssuchassigns,babygifts, Christmasdecorations
Fusedglass Jewelry (trainingtobe undertaken)
Knitteditems Small one off itemsandtoys
Sewnitems Aprons,cushions,niche items
Upcycleditems Driftwoodsigns etc.
Bee and Chicken items To reflectthe companiesnamesthesewillinclude pictures,printed
aprons,chickenshapedcushions etc.
Bespoke items Nurserydécor,specialisedinterest items
Giftspacks relatedto
hobbies/interests etc.
e.g.apron,signand spoonfor baker
GiftBaskets Baby,tea and coffee etc.
1 http://www.craftscouncil.org.uk/articles/towards-an-education-manifesto-for-craft-and-making/
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jewelry Necklaces,bracelets,broochesetc.
Personalised,bespokeitems New baby,child’sroometc.
Screenprinteditems Fabriccushions,signsetc.
Bags Special interestbags
Market and market research
The craft sectorisin huge demand aspeople tire of massproducedhighstreetproducts. There is a high
demandforone off and bespoke productsthatare unique andno one else owns. Thishas beenfuelledby
recenthighprofile televisionprogrammessuchasKirstie Allsop’ssuccessful craftandupcyclingofferings.
There has alsobeena substantial increaseinthe numberof peopleinterestedinlearningthose crafts.
“Arts and craft-orientated websites are now showcasing a bewildering array of
homemade, pop culture-influenced knick-knacks.
There is a subculture of crafters. They congregate on online marketplaces like Etsy
and Folksy. They craft everything from bunny-shaped bookends and knitted jam
jars to Union Jack radiator covers and shabby chic coffee tables.
Crafts, weird and otherwise, are growing.
Etsy says sales on the site have risen from $176.8m (£110m) in 2009, to $525.6m
(£328) in 2011, while members have risen from 3.8m in 2009 to 17m in 2012.”2
Customer Analysis
People in the UK seek unique craft items. Therefore small businesses in the UK are shining
through this tough economic time partly because of what the online marketplace can offer.
Interestingly enough many handmade fans seem to be either in the 20-25 age bracket or
55-65 age bracket – proving that all types of people love handmade items. They are
predominantly female with males preferring to purchase branded goods3
.
Purchasers cover a wide demographic from large cities such as London to small rural
backwaters and their range of disposable income varies widely.
Customers with large disposable incomes are more likely to buy high end expensive
products but the wide range available does not preclude the purchased of quality hand
made goods from those on a low income.
Customers make purchases daily but there is a significant rise in the purchase of hand
made goods around public holidays such as Christmas, Easter, Halloween and special days
including Valentine’s Day, Mother’s Day and Father’s Day.
With such a huge range of craft products available it can be confusing for customers but it
does provide the opportunity for researching the best prices available online. However,
2 http://www.bbc.co.uk/news/magazine-19599168
3 http://www.heresoneimadeearlier.net/2013/04/22
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many purchases tend to be impulse buys, particularly as public holidays loom large on the
horizon.
Handmade crafted items are available through small local shops, high street outlets and
online. Small local shops and the myriad of internet websites count for the highest
volume of sales. Not surprisingly the recent increase in online purchasing has increased
the potential for crafters to sell their unique items.
People interested in purchasing crafted items often enjoy learning new skills and
techniques themselves resulting in a growth industry in blogging, instructional videos and
websites offering paid for instructions and patterns. This is another potential money
making outlet.
Competitor Analysis
Competitorsare representedroughlyby fourgroups:
Talentedamateurs – These are people like myself whohandmake crafteditemsandsell throughoutlets
such as Facebook,Ebay,AmazonandEtsy to name justa few. These are toonumeroustomention,the
majorityof themfallinginto fourmain categories:
Full-timecraftingmumlookingtoearningmoneywhilstlookingafterchildren
Part-time crafterswhocraftfor leisure andsell the odditemorworktowardsstockingenoughfor
craft sales
Specialisedcrafterswhoworkonbespoke andcommissioneditemsthusreducingthe needfor
large amountsof stock.
Professional Crafters –These are people whocraft for a living,producingamyriadof choice acrossall
disciplinesincludingvisualarts,cake decorating,upcycling,fancydress,partypacksand muchmore.
LargeCraft Businesses –These include companiessuchasJoannaSheen,Create andCraftTV,
Crafting.co.uk, the GlitterPotandCharityStamp. These companieshave takencraftingtothe nextlevel,
designingandsettingtrends,supplyingcraftinginspirational andmaterialstothe restof the craftingworld.
HighStreet Businesses –Whilstlarge departmentstoresmake andstocka range of ‘crafty’itemsthese
are largelymassproduced. CompaniessuchasHobbycraftand The Works tendto focuson craft supplies.
Overall 76% of all craft businessesinthe UKare run by justone personand intotal they are wortha
remarkable £4.4 billiontothe economy.Suggestingthatsmall handmadebusinessesare onthe increase.
Competitor Strengths and Weaknesses
Strengths - Across the whole spectrumof craftingthe strengthliesinthe passionforkeepingcrafting alive
and producinghighqualityhandmade goodsinarange that will suiteverytaste andbudget. The growing
craftingtrendhas resultedinahuge growthperiodoverthe lastfew years,somuch so that television
channelsare nowcomingup withinspirational programmessuchasThe Great BritishBake Off,SewingBee,
Kirstie Allsop’sHome made home andFill YourHouse forFree.
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Weaknesses–Whilstthe craftingbusinessisboomingandthe range of goodsishuge the mainweakness
liesinthe massedproduced marketsandinsome caseslack of quality. Mass produceditemsdonotfulfil
the ‘unique’requirementsof discerningcustomerswhodon’twanttofindexactlythe same itemin
someone else’shouse. Purchasingcrafteditemscanalsobe hit and missintermsof quality,particularly
fromthe amateursector. CompaniessuchasNot on the HighStreetand I Want One of Those purport to
sell unique itemsbut theyare still massproducedandlikelytobe ownedbymanypeople.
Unique Selling Point for Crafty Bee Chick
CraftyBee Chickwill buildamarketforunique hand-made bespoke andlimitededitionitems,bytapping
intothe quirkyand hardto findmarketas well ascreatingitemsthatwill appeal toa massaudience.
CustomerService
I will treatall my clientsasindividualsensuringtheirneedsare met.
I will adoptappropriate ethical salesbehaviours:
I agree that salesisaboutlistening,engagingindialogue andmeetinganeed
I believemyrelationshipwith myclients isnotjustaboutthe sale
I will knowmyproductswell andprovide appropriateresourcestoenable myclientstounderstand
my productswell
Business EnvironmentAnalysis
Main genericrisks
Single pointof competence,goodsmade byone person,riskof worklife balance issuesresultingin
healthproblems.
Mitigate by:
Developingworkhoursandlearningtostickto them, asearlyon as possible.
Settingupclearlydefinedworkingandlivingareas
Motivationwhentimesare hard,salesfall etc.
Mitigate by:
Settingworkinghoursandkeepingtothem.
Alwaysworkingindesignatedworkareaoroffice,ratherthanrandomlyworkinginvariouspartsof the
house.
Keepingworkareaor office tidyandclean
Remindingmyself of achievementssofar.
Keepingcharts of bestsalesfigureshandytolookat.
Producinga listof aimsand goalsto worktowards.
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Slowmarkettake up forspecificproducts
Mitigate by:
Organisingproductlaunchesasappropriate
Developingandimplementingamarketingplan
Remaincommitted andpassionate aboutthe productsIproduce
Inabilitytomake income fromproductsales
Mitigate by:
Monthly cash flow updates
Monitoringsalestargets
Ensure pricingiscompetitive butnotsolow that itevokesalack of quality
Limitstockso as to limitoutlayensuringthatcustomersare aware of the timescalesrequiredfor
orderingbespoke items
Capacityissuesif Iam verysuccessful
Mitigate by:
Consideremployinganapprentice
Jointventureswithothercrafters
Gettingitwrong
Mitigate by:
Havingappropriate insurancesinplace suchasprofessional indemnityinsurance.
Buildingevidence of whatworksandwhat doesn’ttoinformfuture productdevelopment
Havinga clear replacementandrefundpolicy
Purchasingandstorage of suppliesinasmall home environment
Mitigate by:
Offeringbespoke productstocutdownon cost and storage
Where possible purchase multipleitemsatalowercost
Researchandbuildrelationshipswithwholesale suppliers
Recoupingcostsforpostage and packingwhilst maintainingaqualitystandard
Mitigate by:
Decidingona pricingpolicytoensure all costsare met – maybe includingpostage andpackagingcosts
inprice so that it looksasif itis free
Usingalternative postage solutionsincludingonlinelogisticscompanies
Ensuringthat packagingcomplimentsthe workandisrobustenoughto standup to the postal system
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Sales and marketing
Presentation– It is importantthe productsare depictedinhighresphotoswitha gooddescription(at
least200 words). The use of keywordsto enforce the qualityanduniquenessof productswill addtothe
marketabilityandshowmypassionforthe productsI produce. It is importantthat buzzwords such as
Handmade,Vintage, Upcycled andShabbyChicare includedinthe productdescriptiontoimprove its
visibility.
Packaging – It isimportantthat packagingcomplimentsthe productsImake and create a good impression
on the customerreceivingthem.
Storylines –These canhelpinthe sale of productsand couldbe createdfor bespoke items.
CRM System– I have the skillsnecessarytodevelopmyownClientRelationshipManagementSystemand
will use thistomanage my clientrelationshipandmarketnew products.
TrendidentificationandSetting – It isimportantthat I keepaneye on highstreetandcraftingtrendsto
ensure thatmy productsremainrelevantandevolvetofitthe currentcustomerneeds. I wouldideallylike
to reach a pointwhere Isettrends,
Productswill be marketedandsoldusingawide range of mediaincluding:
Website– I have the skillstodevelopmyownwebsite usingWordPress. The website will include an
elementof sale andanelementof teachingandinstructionthroughbloggingaboutnew productsand
techniquesaswell asofferingdesignsandpatternssome free andsome paidfor. UsingSEO will enablemy
productsto rank highinsearch engines.
Facebook – CraftyBee Chickwill have aFacebook page designedtomarketproductstoa wide range of
people bothfriendsand Facebook groupsfocussingoncraftsanditemsthat mightpeakthe interestof
specialistinterestgroups(Thiswill be particularlyrelevanttochickenandbee relateditems). Iwill builda
groupof followersandgive themthe opportunitytopurchase orcommissionitems.
Onlinesales – I will use websitessuchasEtsy, EBay and Amazontosell productsensuringthattheyare
marketedaswidelyaspossible. Use of webandmobile applicationsthatoffersavisual discovery,
collection,sharing,andstorage tool suchas Pinterestwillenable me tomarketmyproductsto a wider
audience andpull ina widerrange of buyers.
TradeFairsand CraftMarkets- By gettingmyproductsout intothe communitythroughtrade fairsand
craft marketsI will buildmybrandandincrease myvisibility. ThisisparticularlyimportantatPublicHoliday
timessuchas Christmas. The use of cheapgiveawayssuchassweetsand chocolate can entice people toa
stall and provide aninroadtoselling.
PR and Editorials –I have experience of raisingorganisationsprofilesthroughthe use of pressreleases
and editorialstogetfree advertising. Thisisa methodthatI can use to get articlesinlocal community
newsletterssuchasS26 Directoryand CommunityMatters. I have hadsome successat gettingmy
productsintonational craftmagazinesbysubmissionof lettersandpicturesof mywork.
Sellingthroughshops –There are a numberof shopsinthe area surroundingmyhome thatI couldplace
my handmade goodsby piggybackingon theirclientbase and sellingexperience. Shopssuchas Sarah’s
Boutique (sellingupcycledfurniture andfurnishings) andAstonSpringsFarm(Selling farmgoods,training
and food).
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CraftCourses – It ismy intentiontoruncraft coursesthat will enableme todisseminate myskillsand
experience topotentialcrafters. There isa marketforcraft coursesin myarea and I have alreadybeen
approached byKivetonParkandWalesCommunityDevelopmentTrustanda new craft shopto be opened
inDinningtontoprovide courses.
Newsletter – I have a wealthof experience of developingnewslettersthrough Mail Chimp asa way of
promotingnew products,servicesandtutorials.
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Assumptions for Turnover
The followingassumptionshave beenmade inordertodevelopthe cashflow forecast:
Approval forNewEnterprise Allowance Schemegivingincome of £65 per weekforfirst13 weeks
and £33 per weekfor13 weeks
IncreasedSalesatChristmas, Valentine’s Day,EasterandHalloween
Sale price of individual items
Postage andPackingcosts includedinpricingstrategy
Expenditure permonthonmaterials
EstimatedEtsyand EBay listingandcommissioncosts
PublicLiabilityInsurance costsbasedonquote
ProfessionalIndemnityInsurance basedonquote
My Track Record
I have had some priorsuccessmakingandsellingcardsthrougha numberof workplacesincludingmyown.
I have receivedcommissionsforspecialistcardsandsuccessfullybuiltupareputationforthese. I have
made individualgiftsforfriendsandcolleaguesbasedontheirinterestsandthese have alwaysbeenwell
received.
I have planning,budgeting,marketingandPRexperienceand excellentITskillsthatwill standme ingood
stead.
