If you’re looking to start a home based business, why not consider a consignment business by selling arts and craft items to the public on a commission basis.
There are many people who enjoy making crafts but do not know how to make money out of it. They either do not know how to sell or are too embarrassed to market their own creations. So these crafters would welcome any service to help them market their creations. And with you taking care of the promotion, they can devote more of their time and talents in creating more products.
How to start your business?
1. Do the paperwork
Get a license for your consignment business. Any consignment business is subject to sales tax. Make sure that you gather all necessary legal paperwork required to start your business.
2. Set up your consignment shop
There are many places where you can sell your consigned crafts. You can either rent a small building space or set up a booth at a craft fair, or maybe sell them online or on eBay. Setting up an online consignment store helps you save on monthly rent. You can set up a free online store within minutes with Weebly.
3. Determine your commission
You need to agree on your commission for each sale of the product with your consignors, which is usually between 20% - 40% based on the actual selling price. The consignors do not get paid until a product is sold.
4. Draw up a contract
Once you and your potential consignors have agreed on the figures that both of you are comfortable with, draw up a contract that both you and each of the consignors will sign. You may want to list down the following terms and conditions in your contract:-
- the consignment commission percentage (x% to you and x% to the consignor)
- the length of time to sell the product (like 30 days)
- whether products can be returned if they are not selling or donated to charity at the end of the consignment period
- how and when to pay the consignor
5. Market your consignment business
Start advertising your business. Let people know about your new consignment business. Prepare flyers and distribute them to neighbours and friends. You may also want to consider starting a blog and write articles about the products that you are selling, Show pictures of products available for sale and post regular offers to highlight products within your shop. Direct them to your shop or online store.
Besides helping to sell other people’s crafts, you can at the same time create your own craft during your spare time. Don’t think that crafts are the only thing that you can sell when doing this type of business. In fact, you can sell whatever products that are available and which are in demand in your area. Other product possibilities that can be included in your consignment business are antiques, stationeries and food products such as cookies, candies, chocolate, homemade jams etc.
You might also be interested in: 10 Homebased Business Ideas (Part 1)
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