5 Tips To Start a Successful Cottage Industry


Whilst we in the UK have been making the most of the hottest September since 1911, it is impossible to ignore the fact that the days are getting shorter as the winter months approach at frightening speed. With later sunrises and the inevitable wet weather, it is not hard to see the appeal of working from home. With no commute, you can avoid ever-increasing rail fares, and it can provide flexibility in balancing work and family responsibilities. It is hardly surprising then that analysis recently published by the TUC, revealed that home working is up by a fifth over the last decade.

Among them are a new wave of entrepreneurs, who have been able to set up their businesses from their kitchen tables thanks to a wealth of new technology. But with 9 out of 10 new businesses reported to fail, it takes more than a little creative flair to run a successful cottage industry. 

Do your research

It sounds simple but researching before you open for business will save you a lot of pain later. How much do you plan to sell your products for? What will your returns policy be? What sets your product apart? A great way to gain invaluable insight is by evaluating your potential competitors' policies and pricing.

Find the right marketplace

With the rise of sites like eBay and Etsy, you now have access to a worldwide marketplace at your fingertips. So whether you are selling children’s clothes or handmade birthday cards, it’s important to do your homework to make sure you are reaching your potential customers in the right place - i.e., where they are looking for your product. This may also mean setting up your own site, joining online trading communities or simply finding local craft fairs.

Start networking

You are now the representative for your own brand – a brand that no one will know exists if you don’t tell them about it. Attending industry events and networking with other small business owners will enable you to pick up helpful tips and advice from people in the same position as you. It may even provide you with unexpected business opportunities.

Keep overheads to a minimum

One of the top reasons that new businesses fail is because they run out of money. Whilst a certain amount of operational expenditure is unavoidable, it is important to understand that for a new business it can only take 1 or 2 slow months to force owners to close their virtual doors for good. Is it wise to sign long term contracts that will increase your fixed overheads? Probably not.

Manage all your time

Your time is now your money, so don’t spend all of it producing something that you aren’t certain people will want to buy. While it is important to be passionate about, and proud of, the product or service you provide, it is critical that it is something that customers will want to buy. Test your market to see what sells, then you know that you are investing your time, effort and money in the products that are most likely to generate profit.

On the other side of the coin, it is also vital that you take time to step away from the work as often as you can. This is particularly challenging when running your business from your own home and starting up a new venture as every moment away from work can feel like you're losing ground. However, as your own biggest asset, you have to protect yourself from burning out  this will be a long journey but it might just be the end of the daily commute and the start of something much more fulfilling.

Comments