And yet every day, plenty of businesses, SMALL businesses, are out there hiring people.

Hiring help does not have to be the big deal we make it out to be.

Sure, there’s a little paperwork involved.  And yes, there’s that whole matter of paying them.

But these really are small hurdles, not insurmountable obstacles.

I’d love to know – if you’ve been resisting hiring someone, why?

Is it the money?

Is it the process?

Is it the paperwork?

And if you have hired someone to help with your creative business, was it as big a deal as you thought it would be?

PS.  If you responded to my call for guest posts, THANK YOU!  I’ll be getting back to everyone who emailed me in the next few days.

You gotta spend money to make money.

And while this is true, it’s actually much more complicated than that.  It’s not just about spending money.  It’s about understanding when and where to spend money to boost your profits.  When it comes to making a profit for your business, it’s not so much about about mindful spending, but about strategic spending.

Those of you who are trying to make a profit by not spending on the business, listen up!  Part of embracing a culture of profit is understanding that sometimes you have to make an investment in your business.

When money is tight, it can be tough to know where to spend money and where to scrimp, so I’ve put together some guidelines for strategic spending to boost your profits:

Rule #1: Get help for the things you don’t have to do yourself.

Time is money.  Yet for some reason, we have a hard time spending money when it could save us a lot of time.  (And more time was the number one response when I asked what do you need to grow your business.)  But if you take just one thing from this post, let it be this:

The fastest way to grow your business is to stop doing all the things that someone else could do as well as your better than you.

And the way to do this is to spend money to hire good people.

I’m actually making this my mantra for the rest of the year.  I’m looking for all the opportunities to hire someone to do the things I don’t have to do so that I have more time to focus on doing the things I do best.  Even though I have a basic understanding of HTML and CSS, I let Tara handle the redesign on Crafting an MBA.  And I’m going to have her redesign my jewelry business site too.  (She just doesn’t know it yet.)

And you’d be surprised at all the things you think only I can do this, when it fact there’s probably someone out there that can do it equally well.  I make most of my jewelry by welding.  And for a long time I thought, “I’ve spent years developing this skill, I can never have anyone else work on my products, no one can weld as well as I can.”  And while it’s true that most people (even most trained jewelers) can’t weld as well as I can, turns out there are some people who can.  One just happens to be one of my students, so I hire her to do piecework for me.  (With the eventual goal of being able to bring her on as a more permanent fixture of Team Megan Auman.)  And I’m looking into hiring a Virtual Assistant to handle some of the parts of my business I don’t do well and don’t enjoy.  (Like managing an email marketing campaign for megan auman and cozy/cuff.)

And hiring someone doesn’t have to be a huge investment.  Virtual Assistants and independent contractors can enable you to bring in help on a per project basis or for a few hours a week as needed.  Giving yourself permission to outsource aspects of your business can free you up to focus on doing what you do best – being the creative visionary that drives your business.  And that is money well spent.

Rule #2: Don’t spend money accumulating more supplies and materials.

My dad owns his own machine shop, so I practically grew up understanding the principles of lean manufacturing.  But it’s something that we don’t talk about much in the crafts community.  Likely because most crafters don’t view themselves as manufacturers.  (Even though, as a friend of mine likes to say, “Manufacturing is just a fancy word for making.”)  Lean manufacturing is the idea that you keep supplies and inventory to a minimum, ordering and producing in such a way that you never have much excess material or inventory on hand.

And boy, does this go against the nature of most crafters.  We love the thrill of the hunt.  Finding that perfect material that we just might use someday.  Plenty of makers who wouldn’t dream of spending money to hire a web designer or PR agent will trot out the “gotta spend money to make money” statement to justify buying more supplies or materials.  There’s a reason the biggest sellers on Etsy are the supply people.

But the accumulation of more and more materials is probably one of the biggest killers of your bottom line.  Those piles of supplies and boxes of inventory are really just money that you can’t use to propel the rest of your business forward.  If you feel the need to spend money on materials, focus that money on buying quality or unique materials that set your products apart.  But that money spent on just buying more?  That could be put to better use on a fantastic website, a new marketing campaign, or a professional looking wholesale catalog.

Rule #3:  Focus on your primary revenue stream.  (And be consistent.)

I am a huge fan of pursuing multiple revenue streams.  But pursuing multiple revenue streams doesn’t mean each area has to bring in the same amount of money for your business.  And it definitely does not mean you have to spend evenly across each revenue stream. If you’ve got a limited budget, you’ll get the most bang for your buck by focusing that money on one primary area of your business.

If you’re primary focus is online sales, invest your money in a kick-ass website, a consistent brand identity, high quality photography, a brilliant copywriter, and a marketing or SEO expert to help you drive traffic.  If you love craft shows, invest your dollars in marketing and advertising in the areas where  you participate in shows.  If wholesale is your primary goal, don’t be afraid to invest in attending that big trade show or producing a high-caliber catalog.

Pick one revenue stream that you really want to see take off, and decide where you can spend money to drive traffic and sales.  Then give yourself a few months of focus (and cash) on that one revenue stream.  Stay the course, because most results aren’t instant.  If you keep jumping from one area to another, you’ll never build momentum.

And even though you’re focusing on one revenue stream, at some point you can usually roll out the efforts from that spending to your other revenue streams.  A consistent brand identity can carry over from your online store to your craft show booth.  And a fantastic website and savvy PR agent will attract not only retail customers, but potential wholesale accounts as well.

The key to creating profit in your business is understanding when to drive growth, and when to save to keep cash in the bank.  But to truly embrace the culture of profit, you have to become comfortable with the fact that sometimes you must spend money in order for your business to grow.

How strategic are you with your business spending?  Where do you scrimp and where do you spend?

Nevermind that if this sounds like your reality, you’re probably way undercharging for your work. (That’s a rant for another post.)

Want I want to talk about today is the importance of rest, recharging, and taking care of yourself when running a creative business. It’s difficult to be creative when you’re running around like a crazy person all the time. And your creativity is what makes your business unique.  I understand the impulse to work all the time.  You are your business, and when you don’t work, you don’t make money.  But it’s important to give yourself permission to take a break now and then to recharge your creative batteries.

So here are my suggestions for ways to take care of yourself and your creative business:

• Take field trips. Last week I went to New York to see a few exhibits at MOMA, and today I’m off to Longwood Gardens and Terrain. While weekly field trips aren’t normal for me, I do understand the importance of taking time to look at things beyond my studio walls. Whether it’s spending time in museums, gallery hopping in a nearby city, or spending time in the outdoors, chose activities that boost your creatity and schedule them regularly.
• Read. In case you couldn’t tell by now, I’m a total book addict. I tend towards non-fiction books because I have an insatiable desire for information. Chances are, there are some fantastic books out there that relate to the subjects you make work about. How much better would your work be if you took time to read on a regular basis?  But don’t feel everything you read needs to relate. Any book, fiction or non, can broaden your thinking and get those creative juices flowing.
• Take vacations. There is nothing wrong with closing up shop for a week, virtual or otherwise, and taking a break. Vacations give you a chance to relax, to take a break from your usual routine, and reconnect with your family. (Remember them?)
• Take care of yourself. When was the last time you went to the eye doctor? Or the dentist? Or exercised? You are the center of your business, and if you aren’t healthy, your business can’t be either. Give yourself time to cook healthy foods, exercise on a regular basis, to rest if you’re feeling sick, and to get regular health screenings. Taking care of yourself should be your first priority, not your last.

It’s important to give yourself permission to take a break from your business to recharge, get inspired, and take care of yourself. Your business will be better because of it.

What do you do to take care of yourself and your creative business?

When I talk about your business model, what I’m talking about is a combination of the types of products you produce, the ways you produce them, and the markets in which you sell them.  You might build a business creating limited edition pieces that you sell in galleries.  Or perhaps you have visions of a small production studio with a retail space to match.  Or maybe you want to outsource your production to a local manufacturer and sell your work predominately through wholesale.  Or maybe your business model involves many of those options because you’re still finding your way.

Not only is there not one correct business model, but for most people, that model is constantly evolving.  In the past few years, I have transitioned my business from one which every product is entirely made by me and sold mostly at retail craft shows, to one in which I outsource parts of my production (yet still do many things by hand) and sell primarily through wholesale.  One is not better than the other, it’s about finding the model that works best for you.

So how do you figure out your ideal business model?  It starts with finding the core.  Finding your core is a key component of Made to Stick, and it’s an idea many people have been working through on the book club blog.  ”Finding the core” means identifying the most important idea behind your business.  The core is not your mission statement, artist statement, or even your vision for your company.  It is the one defining idea that drives the business and allows you to make decisions.

In the book, the Heath brothers use the example of Southwest Airlines.  Southwest is “THE low-fare airline.”  This is their core.  Every decisions that needs to be made at Southwest can be made by asking if it makes them “THE low-fare airline.”  Southwest has other values that drive their business, and these can be seen as concentric rings moving out from the core of “THE low-fare airline.”  But it is that core that allows them to easily make business decisions.

An example of a design business with a strong core is MIO – whose tag-line of “Beautiful, Sustainable, Affordable” helps drive every decision they make.  Every product they make needs to adhere to these three standards – which means that choosing a sustainable material with a high price tag is out, as is producing cheap products that are harmful to the environment.  ”Beautiful, Sustainable, Affordable” is a core message that is applicable to many scenarios, from MIO’s normal product development to the opportunity they had a few years ago to design a line for Target.  Having a strong core allowed MIO to enter into a different type of production agreement while still remaining true to who they were.

Finding your core can seem difficult at first, but once you’ve found it, it becomes the road map for all your business decisions.  There are many ways to find your core, but one method is to make a list of all the ideas that are central to your business.  These might be things like handmade, sustainable, design, local-production, organic, affordable, fair-priced, fair-trade, customer value, etc.  Look at each item on the list and ask yourself if there is ever a scenario where you would sacrifice that idea for another.  For instance, is sustainable more important than local-production?  Is creating customer value more important than handmade?  As you work through these possible scenarios, you should begin to see certain ideas that stand out as non-negotiable.  These ideas becomes your core.  The other ideas may become those concentric circles around your core, but remember you can only have one core.

Once you’ve found your core, all the decisions that help create your business model should fall into place.  In the end, remember that there is no one right business model, and no one right core.  It’s about finding the things that work best for your values and your vision for your business.

As you work through finding your core and your business model, feel free to share in the comments here or on the book club blog.

1. Your opt-in email list. This is the list for people who actually sign-up, whether through a form on your website or on a list at a craft show.  This is also the list that I don’t recommend managing yourself.  Because federal regulations require recipients confirm their membership on the list, and have the ability to unsubscribe, and because sending mass emails is difficult through your mail server (many end up in spam folders) I recommend you use an email list service.  I like AWeber - they have lots of options and great customer service. (And customers can reply directly to you through the email – none of that impersonal, no-reply stuff.)  Constant Contact is another service that a lot of artists use.  You should chose a service that fits your needs and budget.
   Once you’ve established your list, determine a regular schedule for sending updates.  Some designers may send a monthly, bi-monthly, or even quarterly newsletter, while others may send an email when they’ve got a show or big event planned (or when they’re having a sale).  In addition to including updates about your company and products, you should try to include something of value to your readers (that still relates to your products).  You may want to include tips on decorating if you make home goods, or wedding planning tips if you make custom stationary.
2. Your press list. This list will include both print media and online press, such as bloggers, and will probably be a mix of email and regular mailing addresses.  It will include both press you’ve met who’ve asked you to contact them, and press for publications you dream of being featured in.  You should make sure that the press on your list are a good fit for your work – for blogs, make sure it is a topic that they actually cover.  (If a blogger doesn’t cover jewelry, don’t send them constant updates about your jewelry.)  For print press, make sure any correspondence is directed to the appropriate editor.  Never send a mass email to the press.  Anything you send should be personalized to the writer or editor.  Include their name, and make it clear that you understand their publication and how your work relates.  Its best to contact press when you’re launching a new product or product line, or when you’ve got a big event coming up (like an exhibition, trunk show, craft fair, or wholesale show.)
3. Buyers and stores. This list could actually be broken down into two categories – your current accounts and prospects.  Even if you aren’t wholesaling yet, its never too early to start compiling a list of stores you’d love to sell your work to.  For your current accounts, you want to make sure you update them when you’ve got new products, and if you’ll be participating in any upcoming shows*.  For prospects, I would avoid any type of mass email.  Instead, work on personalized, targeted contact.  Before a trade show, I recommend sending a postcard to all your current accounts and potential stores to let them know about any new products and where you’ll be located at the show.
4. Your cheerleaders. These are your family, friends, college professors, mentors, yoga teachers, and anyone else who wants to see you succeed, but might not be on your opt-in email list.  While you might do the occasional email blast*, remember that a more personalized email goes a long way.  While these people may not be your customers, they might be your biggest fans.  Keep them informed of what’s going on with you and your company, because you never know who they might share that with.

*Anytime you send an email to multiple recipients who don’t know each other, you should always enter the addresses in the BCC field, to protect everyone’s privacy.

Do you keep any other types of mailing lists? Have an email service that you love? Share your thoughts in the comments!