Category: Taxes & Employees

When to Hire Help in Your Craft Business

When Your Turnaround Time is Regularly Too Long 

Depending on the products you sell, your turnaround time (meaning the time it takes from when the customer pays to when the item is shipped) should be around 1-2 weeks at the longest.

In today’s world Amazon Prime filled world, customers want fast – the faster the better. If you have a turnaround time slower than 2 weeks, customers may skip your product and find someone that makes a similar product faster.

All of Your Time is Spent Working in Your Craft Business

You’ve heard the saying, “All work and no play makes Jack a dull boy”. This is true for any small business owner as well.

You cannot allow your business to overrun every aspect of your life.

If you are always answering customer questions, making items, taking inventories, working on product launches, balancing the books, or shipping items – you craft business may need some help.

Your Time Could Be Better Spent Doing Something Else

Sole operator, small business owners wear a lot of hats – and there are only so many hours in a day.

As a creator and designer, evaluate what aspect of your business your time is best spent doing and consider hiring someone to help with smaller tasks.

For example, if you work with vinyl, you could hire someone to weed designs, place designs, package and ship items, and answer social media inquiries while you focus on designing new products and getting your product line into stores.

You Anticipate a High Increase in Sales in the Future

If your craft business does a large amount of sales around specific times, be ready for the rush by hiring help.

For example, craft sales soar during the holiday months. If you plan to increase your sales during this busy time, consider having help arranged before you need it.

Non Compete Agreements

A common concern that many small business owners have about adding someone to their business is that they will discover all of your crafting secrets and go into business for themselves.

Savvy business owners can prevent this by having your new employee sign a non compete agreement. A non compete agreement is basically a legal document that states that your employee agrees to not go into the same business as you, or become your competition.

I’d recommend that you have an attorney draw up a quick non-compete form for your use. However, if you’d like to write one yourself, there are some online generators that can help you get a good start.

Not sure how to go about hiring help in your craft business? My next article details specifics on hiring help in your craft business. Additionally, I’ve included a few ideas for outside the box employee arrangements that may help even the tiniest businesses.

Job Expectations

Before you can start looking for someone to help you, you need to clearly write out a job description of what an employee will be expected to do, the days and hours required, and the length of the position.

Pay and Policies

Before you hire an employee, you have to figure out how much to pay them. I feel that to handle day-to-day business tasks a pay rate somewhere near minimum wage is appropriate. Tasks that require more training or more care like designing products should pay more.

Pay should be given on a regular basis (weekly, bi-weekly, or monthly). The employee should log their hours upon arriving at work and leaving work.

Additionally, a set of written policies are essential to make sure that everyone knows the expectations.

Safety

In many cases, I know that many craft business owners work from their homes – and work alongside young children. You’ll need to disclose this to any potential employee, as some people will not be comfortable with this.

Ideally, you’ll need to have a space set up that is only for your business and a caretaker to watch the kids during your work hours. Your space should have enough room for two people to work simultaneously and not be on top of each other.

If you don’t know the person well that you are considering hiring, please get a background check. A standard background check isn’t expensive, and there are many companies online that can provide one.

Where to Find Employees

Ask around your circle of friends or neighbors if they know of people that may be looking for extra money. Don’t forget church acquaintances, play group parents, co-workers at an outside job, neighbors, and older teenagers/college aged kids of friends. It is likely that someone you know is friends with someone that is looking to earn some extra money.

Consider taking on a friend to help you. I usually don’t advocate going into business with a friend, but having a friend help you out generally works well as long as the expectations are clear.

If you still can’t find anyone, did you know that Care.com has a section dedicated to odd jobs? I’ve used Care.com for a long time for both odd nights out and obtaining regular childcare. You can choose applicants who have been background checked, and view feedback ratings from other Care.com members. Use this link and save 20% on a membership.

Consider Virtual Help

If the pandemic taught us anything, it is that many jobs can be done virtually. If you are thinking about hiring an employee for tasks like social media, graphic design, or newsletter writing, consider taking on a virtual employee.

I’ve written a separate article about virtual help.

Legal and Government Documents

Upon hiring an employee in your craft business, you’ll need to get the official paperwork done. This will likely include getting your EIN number, get Medicare and Social Security taxes in order, and setting up Worker’s Compensation. Rather than re-write something where tons of information is already available, I’ll lead you to this article by NOLO on hiring your first employee.

What If Your Business Isn’t Legally Registered?

I’m going to be realistic and honest here. I know that many Cutting for Business readers are just starting out and may not have incorporated or registered their business in their county/state. (If you need help getting official see this post or this one.)

Perhaps, some small business owners need some help getting orders out, maybe just temporarily, and don’t have a budget to hire someone. My advice to you: Get creative. Consider bartering with a friend – or a friend of a friend – to help you.

I’ve had tremendous luck bartering with my live out nanny both in crafting endeavors and personal assistant tasks. You could even barter supplies, finished products, or machine lessons.