287 | Preparing Your Handmade Product Business for Economic Downturns with Jess Van Den, Create & Thrive
Does the economy have you worried? I know that the words inflation and recession have been hot topics in several small business groups that I'm in, and I know that people are worried. Today, Jess Van Den of Create and Thrive joins me to talk about how small businesses, particularly in the handmade space, can prepare for and survive through these types of economic downturns.
Jess is the founder of Create and Thrive, a community for handmade product makers where she teaches them how to craft the business they've dreamed of. Since 2013, Jess has helped thousands of makers to create a thriving and profitable handmade business. Jess teaches what she knows. She owns and operates a successful jewelry business selling online and wholesale to shops.
On today's episode, Jess shares how she accidentally started two businesses with a startup story that is oddly similar to my own! Then we dove into talking about recession, inflation, and what business owners can do to adapt during these times. We specifically talk about ways to diversify your revenue streams, why you need to be auditing your expenses, and the importance of surrounding yourself with a trusted community.
Today's episode is brought to you by our Proof to Product LABS program. If you are looking to strengthen your business foundation and are looking for coaching and a trusted community for support, come join Proof to Product LABS. Our vault of on-demand trainings runs deep, but the incredible community, the connections, and the collaborations are like no other. If you sell physical products, come join us! This is a space that was intentionally built just for you.
Finding Fulfillment in Your Work
Jess’ career started in education. She loved making an impact, but as a teacher, she was only a part of the process. She wanted to see something to the end. While on holiday, Jess read a book titled The Friday Night Knitting Club, which ultimately inspired her to begin crafting.
She started by doing it for fun, then realized a few months later that she had made so much jewelry that she didn’t know what to do with it.
Ultimately, crafting provided the fulfillment she’d been missing out on in her career, because when you craft something with your hands, you’re able to finish it. That was fulfilling to her.
To sell some of the jewelry, she decided to make a website—landing herself on Etsy (keep in mind this was 2008). A month later, she made her first sale! This hobby became a business and she went full-time in 2010.
By 2013, she was coaching other handmade product businesses! She primarily works with crafters in the mid-level business stage.
The Impact of Recession & Inflation on Handmade Product Businesses
You may be worried as you hear people talk about a recession and you’ve likely already seen the impacts of inflation in your own life. Have you considered what impact a recession could have on your business? Not only is a recession impacting your personal finances, but it’s also impacting those of your customers.
This means customers begin to eliminate some of the expenses that aren’t necessities, which are most of our products. You may begin to see the impacts of the recession (and inflation) on your revenue if you haven’t already.
Preparing Your Handmade Product Business for Economic Downturns
If you are nervous about the impacts that a recession (or any type of economic downturn) could have on your handmade product business, Jess has a few tips for preparing for it!
Diversify your revenue streams
Adjust and cut your expenses
Find a supportive community
1.Diversify Your Revenue Streams
The first thing you should consider doing is setting your brand up with multiple streams of revenue. For example, if you’re selling online, don’t put all of your eggs in one basket! Get on multiple selling platforms and build your own real estate online with your own website.
To expand on that, you may have to push yourself outside of your comfort zone, like expanding into wholesale trade shows, doing markets, or exploring a new social platform.
You may even find yourself exploring the education space and offer coaching or teaching in the industry! This could look like building a course on Teachable or sharing videos on a Youtube channel.
There are so many possibilities for leveraging your skillset to diversify your revenue streams.
2. Adjust & Cut Your Expenses
Another approach to preparing your business for an economic downturn, like a recession, is to perform a financial audit to determine what expenses can be cut. Make sure that you’re buying wholesale or in bulk to cut the overall costs in your business.
Then when it comes to your online expenses, take a look at all of the subscriptions you’ve spent money on in the last year—do you need all of them? These little amounts of money can add up over a year’s time.
While there isn’t always a way around spending money, you can prioritize your budget to spending on things that provide a return or are necessary in your business.
3. Find a Supportive Community
You’re not alone in your business—at least you don’t have to be. Surrounding yourself with community is so valuable to provide you with not only support, but with perspectives you may not have considered.
Communities provide a trusting, non-judgemental space that can help you become a better business owner. In communities like LABS, Paper Camp and Create and Thrive, product makers are able to connect and bounce ideas off each other as well as be a supportive and helping hand when you need it.
In Conclusion,
As we all prepare our own businesses for an economic downturn, make sure that you’re following these three steps that Jess has provided:
Diversify your revenue streams
Adjust your expenses
Find a supportive community.
Quick recap:
Here is a quick recap of all the links shared in this post:
Today's episode is brought to you by our Proof to Product LABS program. If you are looking to strengthen your business foundation and are looking for coaching and a trusted community for support, come join Proof to Product LABS. Our vault of on-demand trainings runs deep, but the incredible community, the connections, and the collaborations are like no other. If you sell physical products, come join us! This is a space that was intentionally built just for you.
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MEET JESS
Jess Van Den is a self-employed silversmith working under the Epheriell label. She’s been making jewellery since 2008, when she opened her Etsy shop to sell her jewellery as a hobby, and turned Epheriell into her full-time occupation in 2010 – bringing her husband Nick on board soon after.
She specialises in minimalist jewellery & ethical sterling silver wedding rings, and works out of her solar-powered home studio in the Sunshine Coast Hinterland, Australia. She’s also the founder of Create & Thrive & the Thriver Circle, where she teaches fellow makers how to turn their handmade hobby into a thriving, profitable business.
CONNECT WITH JESS
WEBSITE: createandthrive.com | INSTAGRAM: @createandthrive | INSTAGRAM: @epheriell | FACEBOOK: @createandthrive | YOUTUBE: @jessvanden
Connect with Katie Hunt
Katie Hunt is a business strategist, podcaster, mentor and mama to four. She helps product based businesses build profitable, sustainable companies through her conferences, courses and coaching programs.
Website: prooftoproduct.com | Instagram: @prooftoproduct
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