So, this blog is called Everything Etsy. I guess that means nobody will be surprised when I say, yet again, that I’m a serious, die-hard, tried-and-true, Etsy fan. I luuurvve Etsy.
As such a fan, I’m continually wanting to promote the virtues of Etsy for sellers and for buyers. And thus begins this post today…
Etsy Business Start-Up Cost – Like Almost Zilch
Have you ever looked at what it costs most people to start a business? If you flip through Entrepreneur Magazine, you’ll see ads for all sorts of franchises you can buy into if you desire to be your own boss.
We looked at buying a Mailboxes, Etc. (now UPS Store) back in the day. That would have been fun. Creative business, that packing and shipping. I can tell from my dread of that part of selling on Etsy that I wouldn’t have lasted long.
But I digress… Entrepreneur Magazine and ads for franchises… back on track.
So these ads are plentiful and some list the start-up money required right in them, while others point to a website which usually gives a rough account of the money required. The low-end is $15,000 and the high-end is 100 times that much!
The Mailboxes, Etc. capital requirement was $40,000.00 and that was waaaayyy back in like 1993 or so. Now the minimum is $60,000.00
The list of expenses for most businesses is pretty daunting and might include:
- Research and development costs
- Business Plan Preparation
- Product Development and Beginning Inventory
- Advertising and Marketing Promotion Expenses
- Cash
- Cost of Financing
- Remodeling and Decorating
- Fixtures and Equipment
- Hiring employees
- Insurance Costs
- Lease Payments
- Licenses and Permits
- Professional Fees
- Signage costs
- Supplies
- Cost of Web Site creation
- Unanticipated expenses
As Etsy Sellers, we might have some of this expense, but not anything like you might expect to start a brick-and-mortar store down on Main Street.
Another thing to note is that the key phrase in my previous sentence is might have. We don’t have to incur these expenses. The absolute requirement for starting to sell something on Etsy is exactly two dimes. Twenty cents will get that first item listed and it is possible that it will sell. Highly unlikely, but possible.
Thinking Of Slow Time as Money Invested
Here’s a thought. If you’ve got another income in the house or some savings to live on, why not consider your time invested in your Etsy shop as your start-up capital?
If you don’t have $10,000.00 cash to invest, maybe you can invest $10,000.00 worth of your time instead. It’s the same thing isn’t it? It’s still an investment in your future.
For everyone who complains about not selling on Etsy, my question is: “what have you invested?” You can’t expect something from nothing. You have to invest. Etsy gives you the option of investing time rather than money by doing your own research, product development, and word-of-mouth marketing through blogs and social media (in the real world too!).
It Is Possible To Succeed
For every article or negative post I read about selling on Etsy, I see ten more shops that I’d never seen before who are quietly selling five, ten, or more items per day. Do the math. There are thousands of businesses making real money on Etsy.
Here’s to you (and me) being amongst them very soon, and with almost zilch in start-up money!
Thank you for posting this!! While I’m not an Etsy seller, I am a buyer (wahoo!) and I do own a little business that is somewhat similar. I have friends who attempt to sell on Etsy, and yet they are not investing ANYTHING into their stores. I have even given them free advertising on my (decently trafficked) blog, but they are not doing anything to take advantage of that (and I had to keep bugging them to do it!). Mompreneurs need to remember that if they want to get serious about generating income that they need to get serious about promotion and putting time and effort into their business. I love that you have this wonderful blog to keep inspiring us and remind us of our goals!!
.-= Kelleigh @ Kelleigh Ratzlaff Designs´s last blog ..Newsletter Issues, Grab Bag Reminder and CTMH =-.
This is an incredible scope, thanks for posting. It is all so true. =)
xo
Sophie
.-= Sophie´s last blog ..Gossip – Blair’s Turban Headband =-.
Oooh ooooh, count me in for being one of those shops…tee hee 😉
Jamie 🙂
.-= A Forest Frolic´s last blog ..Luckett’s Finds =-.
SO true. I remember reading a forum post where someone was complaining that Etsy was ripping sellers off with the $0.20 listing fee and I just sat there dumbfounded. I mean, for the cost of a bag of chips I can put 10+ items in my shop. Thank you, Etsy.
.-= Catherine´s last blog ..Five Finds – Handmade Bags =-.
But still, I have no idea how to become one of those shop selling 5 items a day. And I invest a lot of time. I LOVE Etsy… but I am still clueless as how to make this business work.
.-= Zemphira´s last blog ..Owls, owls, and more owls. =-.
WHAT AN ECLECTIC CHIC ADVENTURE ETSY HAS BEEN FOR US AT QueenLondonsCarriage.etsy.com
FEATURED WITHIN HAND PICKED TREASURY DELIVERING PKGS AROUND THE WORLD BY PUMPKIN CARRIAGE MARKING OUR VINTAGE WORLD MAP DISPLAY IN HONOR OF OUR ETSY CUSTOMERS PURCHASES IS TEACHING MY GRANDCHILDREN ABOUT GLOBAL MAPS AND EXPERIENCES
Your advice is really pertinent for all online sellers, not just Etsy shops. My shop is independent, non-Etsy based, but it requires the same time investment that you’re describing. Our startup costs have been minimal since my husband does IT work and designed the website. We don’t have a brick-and-mortar, so our biggest expenses have been our stockpile of oils and butters (we make all natural soap & related items) and our light tent for professional-looking product photography. It’s all time. It’s him researching and developing new soap recipes and stuff for men, it’s me researching and developing recipes for scrubs, lip balms, bath bombs, and next up lotions. It’s me online for hours marketing my little tail off. It’s him getting our SEO and google adwords right. The two of us doing craft shows. Him designing our packaging and branding, and me figuring out how to make it work for our various products. It’s really a team effort and yes, a ton of time. But if we’d just made product and put up a website without doing anything else, we wouldn’t have sold a single bar yet. Instead, we figured out today that we’ve made $2,000 or so in our first 6 months of business. Not bad for a startup!
Thanks for this! I’m excited for school to end on Friday so I can start investing more of my time in promoting my new store 😉
.-= Sarah´s last blog ..Thank you card — summer colors with rhinestones =-.
Despite a lot of disgruntled complaints I’ve read, Etsy has given so many people a real chance of having their own business…which only leads to more creating and crafting…which is what the world needs now : )
I am hoping to get started on Etsy within the next 6 months. I know many people who love it. I hope it is a good choice for me!
This is SO true! I love everything about Etsy, and even though I haven’t got a sale yet, the marketing tips I’ve learned are PRICELESS! 🙂 I’m continously improving every aspect of my shop I can!
I’m so glad I found your blog! I will check back frequently to absorb all that it has to offer! Thank You!
.-= Ashley´s last blog ..Amethyst waves =-.
I often SING the praises of Etsy!!
HERE
.-= MCatherine´s last blog ..Forgive Simply =-.
Thank you for this blog! It helps me SOO much!
.-= Nomie O´s last blog ..I’ve Got Chic in My Pants….seriously?! =-.
Yay for Etsy! I love it too!!!
.-= RainyPenguinVintage´s last blog ..Vintage Green Vase – Hand Blown in France =-.
Great post! And it’s all true.
.-= Sally´s last blog ..Review- good one =-.
If it weren’t for Etsy, I would probably have sold like two things. Now I am close to my 100th sale on my Etsy-versary (today!) and even though those fees can add up, it’s a huge bargain for all that free advertising. I admit, I have the luxury that the money I make from Etsy isn’t a necessity for us to live, so I don’t feel a lot of pressure to boom my business super quickly (nor could I manage that, being a mother of two boys!) but it’s still so fun to know that I can help support us or pay that unexpected bill once in awhile. Plus, it’s been so fun to share my talents with people who truly appreciate them! I think that’s the best part.
Thanks! I just need a formula now. Lol.
.-= ChariT´s last blog ..Blessed and Highly favored! =-.
Mhhhmm.. I really need to take everything you wrote into consideration!
Kathy @Kiwi Tini Creations. This is a great article. Etsy does offer the opportunity to be a small business owner. I think a lot of people think I’ll just sign up and see some sales. It takes work and time for any business to grow whether on Etsy or not. I really enjoy Etsy and the freedom of being a small business owner! Thank you Etsy and Everything Etsy.
.-= Kathy´s last blog ..Reserved for Shannon. 4 dozen picks. =-.
Hi, I am new to all of this. But I really want to start a store on Etsy. I am soooooo confused about the tax thing. I don’t want to become a bussiness, I just want to be a mom selling her crafts. Can someone please help me. I know I have to pay sales tax on items sold but what else do I need to do.?????Please help.
What I appreciate most about these Gold Coast accountants is their accessibility and willingness to explain things in a way that’s easy to understand.