5 Ways to Make the Most of Winter Slowdown

It happens to almost everyone, every year (And if it doesn't happen to you, give yourself a pat on the back because you are killing it!). 

Of course, I'm talking about the:

The Winter Slowdown

Dun dun dun! Most makers spend most of December scuttling around like crazy with holiday orders & post office runs & most likely late nights in the studio, screeching to a halt right before Christmas. 

And then the New Year gleams on the horizon! So much opportunity! So many possibilities! This is the year for your business! 

But then you remember how broke most people are after the holidays. Plus they just got like eleventy billion new things to fill their home up with over the holidays. Shopping is usually the last thing on their mind unless you are having a massive 70% off post-holiday sale. Which usually means January & February are pretty slow months for many makers, resulting in what is known as this dreaded Winter Slowdown when sales are record lows or sometimes, non-existent.

It can be disheartening to go from booming business to hearing crickets in just a matter of weeks. It can lurch you into a slump & make you want to curl up in your pajamas and binge watch the latest hit show on Netflix while you eat obscene amounts of extra butter popcorn (No? Just me?). Well, let me tell you what I've learned from five and a half years of running Lu & Ed. 

Resist the urge to hibernate. 

Seriously. This is your time to shine, baby! Or at least to take a running leap into the New Year, that is still gleaming with opportunities & full of so many possibilities - and now is the time to put in the work to make your dreams for 2015 a reality! Here is how I make the most of the Winter Slowdown:

1. Do your taxes. 

Ugh. The dreaded T word. But use these quiet days at the beginning of the year to get your books in order, file sales tax for your state (most states are due by February 2nd. View a full list of sales tax due dates by state here) & get everything ready to file or pass over to your book keeper. Seriously, it's the boring hate-to-do work but the sooner you get it done the sooner you can get back to the fun parts of running a business!

2. Do a year-end review.

Take a look over your numbers for the previous year. I wrote about my year end review here. Sales, traffic, social media growth. Create charts, numbered lists or whatever helps you analyze this data to find out what content resonated best with your audience, what products were your best sellers, what marketing tactics worked, which social media platforms performed best and where you spent a lot of time that had little return on investment. Use this data to focus your energy in the New Year to determine what you should be researching and experimenting with to take your business to the next level & to weed out websites, social media accounts or actions that don't yield positive results.

3. Tidy up your studio

Whether you use a corner of a coffee table or have an entire room to use as your studio space, take some time to tidy up, organize & rearrange if needed. Clean spaces inspire creativity!

4. Build inventory

You know what would be awesome next year? If craft show season/the holiday season wasn't so darn crazy!

I always use January as a time to build loads of inventory so that I start the year off with a surplus of products for stockings, shows & sales. It feels great to start the year off churning out new designs & products and building hype & excitement with your audience, plus it gives you some cushion as you go into the busier show & sales seasons meaning a lighter workload later on in the year. Work smarter, not harder & save yourself some stress later in the year by generating lots of inventory during the slower sales period when you have ample time to dedicate to it.

5. Treat yo'self! 

Once your business is New Year Ready (taxes filed & permit fees paid & so on) use the slower months to take some time for personal projects, treat yourself to a hair cut or some shopping, take a few naps or any other activity you usually can't enjoy during your busiest seasons! Enjoy the coziness of the slow season & make time for coffee with friends! Feel free to schedule a week off to just relax, visit family or binge watch that show we talked about - but make sure to set a day to "come back to work" so to speak (so that you don't get sucked into the next season of that show) and commit to starting the year off productive & actively chasing those opportunities on the horizon! 

How do you make the most of the winter slowdown? Let's chat about ways to stay productive while enjoying the coziness of the winter slowdown!

free printable income/expense sheets!

With tax time upon us, many makers are cursing themselves for not being more organized. I recently worked up two printables for myself and after using them for a month find them incredibly useful for makers, so I wanted to share with you lovely daft crafters!

The income sheet is broken into three categories:

•  event and in-person sales. With eleven lines, you have more than enough room to track total income from events, and weekly totals from in-person sales.
•  ad income. Record income you generate from ad sales here, if you host ads on your blog.
• Online sales. With fifteen lines you have enough room to write in four columns of sales totals from individual transactions in your online shop. 

The expense sheet is broken into four simplified categories:

•  web stuff. Domain hosting, listing fees, transactions fees, etc. There are seven lines so you can record fees weekly and make notes.
•  advertising. The advertising bubble has five lines for you to record money you invest into paid ads, business card and print advertisements, craft show booth admission, or cost of items or services donated to giveaways.
• supplies. Fourteen lines to write supply expenses, such as office supplies, fabric, yarn, packaging tape, poly mailers, etc. 
• postage. Fourteen lines which can be broken into two columns to record postage  paid to ship goods each month.

Tip: Print one each of the sheets, and staple or glue the bottom and side together, leaving the top open to create an envelope. Insert all receipts, invoices and at the end of the month a print out of monthly sales log into the envelope. Come tax time everything is in one neat little place ready to file or hand over to your accountant!

Enjoy!

How do you track your income / expenses? Do you file your taxes yourself or go to an accountant? Share your tax wisdom in the comments below to continue the conversation!

Things I Wish I'd Known Before Tax Season

This post is brought to you by Sarah of Echoland! She wanted to share what she learned her first year filing taxes for her handmade business!

Opening my small biz in 2012 has been tons of fun. And it's going to be even more fun next year, thanks to some great tips I picked up during tax season this year. Here's a list of the most useful things I learned as a new business owner.

1. DON'T wait until the end of the calendar year to research your state sales tax guidelines. In some states (like the one I happen to reside in), small businesses are required to file quarterly. When in doubt, pick up the phone and call your state Department of Revenue. Thanks to my delayed filing for my state sales tax licensing, I became chummy with a kind clerk in the state office. Website information can be outdated but a real person can help you navigate a not-so-user-friendly system.
2. DO keep a tidy spreadsheet. Thankfully, I do not rely on my website or PayPal to track my sales—neither shows the whole story. Here are some things you should be tracking on your spreadsheet:

• Gross sales
• PayPal fees
• Mileage accumulated when obtaining supplies
• Shipping costs
• Business related expenses (i.e. business cards, advertising, business lunches)
• Supply expenses
• Purchases made specifically for the business (computer paper, ink, pens, etc.)
• Gross sales made in your state (for state sales tax purposes)
• Website/domain/hosting fees

3. DO calculate the square footage of your studio in relation to the rest of your house. In previous years, a designated work space was required to have walls surrounding, but open concept work space is now considered a home office. Once you figure out the percentage of square footage your studio consumes in relation to your entire domicile, take that percentage and apply it to your utility bills. Yep, it's a write-off.
4. DO track the percentage of your internet/phone bill that applies to your business. Yep, it's a write-off. Huge win for this small biz owner this year! Ka-Chow!
5. DON'T forget to track any special books or magazine subscriptions you may purchase for your business. Yep, they're write-offs.
   
   
   In the words of my fabulous accountant, ask yourself: would I be paying this fee/buying this product if not for my business? If the answer is NO, it's probably a write-off!

What are your great tax tips for new business owners?