8 Tips to Implement When the Economy is Down

I've been hearing a lot of chatter that sales were down this past year due to some uncontrollable situations (economy, inflation, an election year, etc.), but let's focus on what you can control during a year of slower sales to ensure the small business you've poured your blood, sweat and tears into survives.

Make Less

If money and cash flow are tight right now, make less inventory so that your cash isn't all tied up in product.

I can't forecast how down in sales you might be, but if a 30% dip in sales would crush your business, consider making 30% less inventory or 10-20% less.

Increase Your Prices

The quality of your work should be improving each year, and with that, so should your prices. Consider a 5-10% increase in the retail sale price of your items.

Get Creative

I already know you were gifted with a creative brain because you're here and I so appreciate that. So let's use that beautiful mind you were given.

I'm positive that you have material scraps hanging around or a long-lost tote of supplies pushed to the back corner of your creative space. Let's dig that out and create new one-of-a-kind products that align with your current top sellers.

For example, I have saved my fabric scraps for years and finally put them to use. I created some clutches and wristlet keychains. I also told myself that I had to work through my current stash of supplies before I could buy any more. I've broken this rule a little bit, but I have used up most of my stash 😊

Travel Less

While I love a good road trip to a favorite market, traveling for events can get costly.

• If possible, consider staying with friends or family nearby to cut down on hotel lodging fees.
• Pack a cooler of drinks, food and snacks instead of eating out. Maybe treat yourself to a nice coffee at a local coffee shop or for dinner.
• Use an app like Upside to get $$ back on your gas/fuel purchases. You can use my referral link here. I use my money back on coffee gift cards, which fund my coffee trips.

Check Your Subscriptions

Beyond my market fees, my subscriptions are the most expensive thing in my business. Look through your monthly payments and see if you can drop any, or if there are any you can call and negotiate on *cough cough, your internet fees*.

Add an Event or a Few

If you absolutely need to hit a certain sales number, you may need to work a little harder and add a few events to your schedule.

Get Social

Are you actually telling the people you interact with in real life that you have a creative side hustle? Or are you a closet small business owner?

You don't need to be salesy, but when someone asks you what you're doing this weekend, it's a perfect opportunity to share that you have a market or will be busy prepping/making product. If they seem interested and ask questions, you can share more. If not, you can leave it at that.

Are you posting your market schedule to your personal social media pages? If not, you can utilize your current network to increase your sales and market attendance.

*Note: If you don't feel safe sharing this info online, by all means, it's ok not to.

Speaking of social media…

As much as we all love to hate posting, post about what you're making, the final product and how to purchase from you.

In 2020, when I had one single event, I was able to maintain my average sales and even increase them by pivoting back to social media.

Know Your Numbers

 And watch them. This is my least favorite part of running a creative business, yet it's the most crucial. Know your material costs and profit margins. I highly suggest reading Profit First by Mike Michalowicz if you haven't yet. It's a game changer and will help you get your creative side hustle operating like a business.

One thing I'm doing less this year is placing wholesale material orders. While yes, I can get the material for 50% or more less than retail, I don't want to tie up all of my cash in $250-$2500 per month of supplies. Instead, I'm purchasing a few supplies at retail prices (and using coupons when available) a bit at a time.

There you have it! Eight solid tips to help your creative business survive this year if it is, in fact, a down year.

Whether it's making less inventory, raising your prices, getting creative, being smart about your travel, checking your monthly finances and subscriptions, adding events, getting social, or knowing your numbers, pick a few to help you get started today!