Cara Craft Supplies DIYWedding.ie

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Cara Craft SuppliesDIYWedding.ie

• An example of an SME in Ireland today

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What will be covered

• Cara Craft Supplies/DIYWedding.ie story
• Steps we took
• Why its working
• Lessons Learned that apply to all young
  businesses
• Areas the EU can help
• Going forward expanding into the UK and EU

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Section 1

• Cara Craft Supplies/DIYWedding.ie story
• Lessons Learned that apply to all young
  businesses
• Going forward expanding into the UK and EU

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A little History

• Background
• 8 Years in the Software Industry, managing
  software product sets
• Lived in the USA for 3 years where I took up
  quilting and other crafts
• Witnessed huge supply of craft materials
  Michaels stores, Joannes
• Returned in 2002, started Cara Cards 2004

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1st Step Cara Cards Ltd.

• Set up Cara Cards Ltd.
• Handmade Greeting Card Company
• Handmade Greeting Cards extremely popular in the
  UK, and a growing market worldwide
• After 6 months was selling to approximately 30
  shops and growing.
• Became very frustrated at lack of supplies in
  Ireland
• I was ordering in from the UK, USA, Far East
• Lengthy shipping times, customs duties, exchange
  rates didnt work well for the small quantities
  I was importing

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2nd Step

• Spotted a potential gap in the market and decided
  to set up a craft supplies site for Ireland
• Proven market abroad - 40 such sites in the UK,
  00s in the USA
• Growing Crafts Market - 10bn in the USA, 3bn in
  Scrapbooking alone.
• Built the website myself and sourced supplies
  from all over the world on the Internet
• Launched Cara Craft Supplies, www.craftsupplies.ie
  , in September 2004

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Cara Craft Supplies ProductsCard Making and
Scrapbooking
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Cara Craft Supplies Now

• June 2005 moved into first official (tiny)
  premises, moved again in December 2005 to
  premises 3 times larger, which weve filled
  already ?
• December 2005 awarded employment grants by DCEB
  and hired two part time employees
• Cara Craft Supplies Now
• Irelands first dedicated Craft Supplies Website
• Over 2,000 customers
• Shipping to UK, Europe and as far afield as
  Brazil
• More than 2 million hits per month
• Profitable and has 2 part time employees as well
  as myself

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Cara Craft Supplies not just an online shop

• On the Internet, as with other retail outlets,
  footfall is everything
• April 2005 launched the online Crafters Forum
• May 2006 60,000th post on the forum.
• Keeping the Site Interesting and lively
• Monthly Competitions and Craft Challenges
• Online Classes
• Online Gallery
• Monthly Newsletters and Special Offers
• Sale Section
• New Products each week

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Why is it working?

• Online Craft Supplies Market was already working
  in other countries
• UK, USA, Australia, France
• Research showed a need in Ireland
• Knit and Stitch show, CCOI course, lack of bricks
  and mortar shops
• Products are small and 2D display well on the
  Internet and have low cost of shipping
• Customers are geographically disparate
• often in remote areas with little shopping choice

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Why is it working?

• Crafts Market as a whole is growing
• 30bn industry in the USA
• Scrapbooking 4bn of that and growing
• Site is innovative, interesting, friendly and
  constantly changing
• So far, so good )

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3rd Step DIYWedding.ie

• February 2006 I had an idea
• Cara Craft Supplies was getting regular requests
  from brides looking for materials to make their
  own invitations
• We had a set of free MS Word Templates which we
  sent out on request.
• Requests for these were increasing
• Wouldnt it be great to have a website dedicated
  to making it easy for brides to make their own
  invites?

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www.diywedding.ie

• April 2006 www.diywedding.ie launched
• A one-stop shop for making your own invites.
• 50 kit designs which include MS Word Templates
  and Instructions, or you can design your own
• Brides save anything from 200- 2000
• 1 million hits in 2nd month of business
• Fully up and running and profitable by month 2
  !!
• In the Irish Times, Daily Mail and Star.
• Adding new products all the time favours, albums

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Section 2

• Cara Craft Supplies/DIYWedding.ie story
• Lessons Learned that apply to all young
  businesses
• Going forward expanding into the UK and EU

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Lessons Learned and areas where the EU can
help.

• Lessons learned and mistakes made ?
• Know your Market
• Dont venture into areas you arent familiar with
• Do your Market Research
• Feet on the Street, not just demographics
• Talk directly to potential customers

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Lessons Learned

• 3. Get a good Accountant early
• Unless you are great with accounts, a good
  accountant can save from an early stage
• 4. Market Carefully in your Niche Area
• Avoid Generalist Trade Shows
• Market in your niche area only to start
• Consider print marketing costs carefully

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Lessons Learned

• A good supplier is worth their weight in gold
• Monitor and plan your cash flow
• Crucial for knowing when you can spend, when you
  cant
• Be prepared to muck in and do everything it takes
• You cant be precious about which tasks youll do
  if you want to make the business work

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Lessons Learned

• 8. Approach everything with enthusiasm and
  optimism ?
• It may take 100 letters to editors before you get
  your first piece of PR, but when you get it, its
  worth it
• Keep up with your accounts
• Its more work than you might think

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Lessons Learned

• 10. Listen to your customers
• They tell you what products they want, how much
  they are willing to pay, what makes them happy
  and what doesnt.
• Survey or do focus groups on a regular basis if
  possible.
• 11. Price based on what customers are willing to
  pay, not on cost of goods
• A product is only worth what a customer is
  willing to pay for it.

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Lessons Learned

• 12. Keep moving, learning and evolving
• Its a competitive marketplace
• Success may not come from where you originally
  thought
• Keep an open mind
• Look out for market opportunities
• Handmade Greeting Cards ?Card Making Supplies
  ?DIY Wedding Supplies ? The World ?

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Section 3

• Cara Craft Supplies/DIYWedding.ie story
• Lessons Learned that apply to all young
  businesses
• Going forward expanding into the UK and EU

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Next Steps

• Have purchased
• www.diywedding.eu
• www.diyinvites.eu
• The Internet opens up European markets to all
  Ireland is a small market, and lagging in
  broadband usage.
• Aside - .eu domains 1.7 million sold so far.
  24 bought by Irish entities! Sites yet to
  arrive, but its just a matter of time.

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Expanding into EU Markets

• Advantages of EU Market
• No customs duties
• Huge market potential UK market alone 10
  times the size of the Irish Market
• The Internet provides a huge advantage and ease
  of access to customers, never before available
• Common currency

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Expanding into the EU Market

• Challenges
• Understanding foreign markets
• Where to advertise
• Understand local trends and fashions
• Shipping/Export costs and charges
• Making it reasonable for the customer while
  maintaining competitive pricing
• Providing a quick, efficient service from a
  distance
• Language Issues

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Expanding into EU Markets

• Costs
• As with any expansion plan
• Setting up new websites tailored to foreign
  audiences
• Advertising budget
• Staff to handle the flood of orders ?
• Hopefully the European Commission can help! ?

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Thanks for listening!

• www.craftsupplies.ie
• www.diywedding.ie
• If anyone would like a copy of this presentation,
  please leave your email!