Craft Business Analysis
The next craft business analysis is to help you find out whether starting a home craft business is right for you.
Doing this exercise puts things into perspective. This is a general assessment that provides some insight into the craft industry. It could help you to first, identify problem areas that need the most attention and improvement.
Second, learn about potential opportunities for the craft business owner. And finally, see some aspects that represent threats to the industry that need constant monitoring.
This is a subjective analysis to give an idea of how to perform this kind of analysis for starting a craft business. You can come up with others that might apply here.
S T R E N G H T S:
Internal aspects under your control.
1. Low initial investment.
2. Work from home business.
3. Flexible work schedule.
4. Production quality.
W E A K N E S S E S:
Internal aspects generally under your control.
1. Lack of access to market research information.
2. Lack of business skills and direction.
3. Lack of marketing skills and training.
4. Inability to product diversification.
5. Inability to product innovation.
O P P O R T U N I T I E S:
External aspects you could gain some control over.
These apply to a craft business that will operate online.
1. Access to new developing markets (online).
2. Access to international markets.
3. Access to targeted niche markets.
4. Lower operating and marketing costs.
5. Easy tracking of sales and customer records.
6. Easy communications with customers and suppliers.
7. Additional sources of income.
8. Contemporary styling and functionality (in general).
T H R E A T S:
External aspects out of your control.
1. Mass production of similar products at very low prices.
2. Unfair competition with product imitations.
3. Constantly changing market trends and conditions.
4. Not a steady demand due to impulse (emotional) buying behavior.
5. High quality standards difficult to achieve.
6. Changing product specifications (eco-friendly products).
Did this analysis get your neurons firing? Are you already thinking about other aspects that might apply here? Remember this is not final.
Perform your own craft business analysis and start thinking about How
would you approach weaknesses and threats? How would you benefit from the opportunities a craft business has online?