You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. We have put together this simple step guide to starting your wind chime business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
STEP 1: Plan your Business
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
- What are the startup and ongoing costs?
- Who is your target market?
- How long it will take you to break even?
- What will you name your business?
Luckily we have done a lot of this research for you.
What are the costs involved in opening a wind chime business?
Costs to get started can be low for artists who don’t have a physical location. They may just need to buy the materials to make the wind chime before selling them on websites such as Etsy or Ebay. Other costs include the cost of a mortgage or lease, commercial insurance, staff salaries, and basic marketing and technology costs.
What are the ongoing expenses for a wind chime business?
Owners will need to account for the cost of new materials as well as lease/mortgage costs, business insurance and marketing expenses (e.g., internet ads, etc.)
Who is the target market?
The target market can be anyone. While wind chime may be more popular in certain parts of the US than others, there are ways to create demand in practically all socio-economic groups around the country.
How does a wind chime business make money?
Business owners set a profit margin on their wind chime based on the time and materials it cost them to make.
How much can you charge customers?
Wind chime vary based on the quality of materials they’re made of. So those made of the finest crystal will cost more than those made of ceramic will. Some of the most exclusive wind chime will sell for $4,000 or more, though most will sell for around $20 or less.
How much profit can a wind chime business make?
Profits depend on the demand and the quality of your wind chimes. The margins are less important than the measure of how many people are ordering your product. However, you can look to other sellers who have comparable products to determine how much to charge. If you sell 500 wind chimes in a week for $20 at a 50% profit margin, you'll make $5,000.
How can you make your business more profitable?
You may want to consider offering related crafts to people, such as dream catchers. As with the wind chimes, look for ways to appeal to new customers by experimenting with different designs and materials.
What will you name your business?
Choosing the right name is very important. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.
STEP 2: Form a legal entity
Establishing a legal business entity such as an LLC prevents you from being personally liable if your wind chime business is sued. There are many business structures to choose from including: Corporations, LLC's, and DBA's.
You should also consider using a registered agent service to help protect your privacy and stay compliant.
For most small businesses forming an LLC is a great option, but if you still want to weigh all your options check our our article, What Structure Should I Choose for My Business?
STEP 3: Register for taxes
You will need to register for a variety of state and federal taxes before you can open for business.
In order to register for taxes you will need to apply for an EIN. It's really easy and free!
You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.
STEP 4: Open a business bank account & credit card
Using dedicated business banking and credit accounts is essential for personal asset protection.
When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.
Open a business bank account
- This separates your personal assets from your company's assets, which is necessary for personal asset protection.
- It also makes accounting and tax filing easier.
Get a business credit card
- This helps you separate personal and business expenses by putting your business' expenses all in one place.
- It also builds your company's credit history, which can be useful to raise money and investment later on.
STEP 5: Set up business accounting
Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.
STEP 6: Obtain necessary permits and licenses
Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.
State & Local Business Licensing Requirements
Certain state permits and licenses may be needed to operate a Wind Chime business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.
Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.
For information about local licenses and permits:
- Check with your town, city or county clerk’s office
- Get assistance from one of the local associations listed in US Small Business Associations directory of local business resources.
Trademark & Copyright Protection
If you are developing a unique product, concept, brand, or design, it is prudent to protect your rights by registering for the appropriate trademarks and copyrights.
The nature of legal requirements in distance education is ever changing, especially in regards to copyright laws. Here is a frequently updated resource, which can help keep you aware of the legal requirements.
STEP 7: Get Business Insurance
Insurance is highly recommended for all business owners. If you hire employees, workers compensation insurance may be a legal requirement in your state.
STEP 8: Define your brand
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
How to promote & market a wind chime business
Promotion should be focused on taking beautiful photos and video footage of the actual wind chimes. You should be showcasing its physical as well as auditory beauty whenever possible. Internet advertising will likely be the most cost-effective way to do this. Create video footage and take pictures of the wind chime (smartphone footage is acceptable) to promote on related websites (e.g., craft or decorating websites). Use paid online or affiliate advertising to give your business a head start.
Recommended: Get started with local advertising for your business with a $300 credit from Yelp.
How to keep customers coming back
Your wind chime will have to be not only beautiful to display, but also pleasant to the ears. It will need to be durable enough to handle even strong gusts of wind or rain. The more you can impress the people around you — even if it’s just your friends and family at first — the more likely it is that your creations will spread.
STEP 9: Establish your Web Presence
A business website allows customers to learn more about your company and the products or services you offer. You can also use social media to attract new clients or customers.
Start A Wind Chime Business In Your State
Select your state below for an in-depth guide on completing each of these steps in your home state.
The business owner should have an appreciation and passion for how certain sounds can calm the rest of the senses. There’s a subtle shift in mood that can occur when people hear a gentle tinkle, which can really help a business owner connect with their product. Their understanding can make it easier to promote and sell to other people who may not be as familiar with the more therapeutic side of wind chimes.
What happens during a typical day at a wind chime business?
Wind chime business owners will usually make what they sell and spend most of their time working on new designs. Those who choose to stock other artists' wind chimes will likely spend their days negotiating and coordinating those purchases. Both types of business owners will need to devote time to fulfilling orders, handling customer complaints, and taking care of various administrative tasks (e.g., business permits, insurance, etc).
What are some skills and experiences that will help you build a successful wind chime business?
Having a background as an artist or a buyer will give an owner a good start into their wind chime business. An artist will need to be able to use their hands and creativity to create one-of-a-kind chimes that can't be purchased anywhere else. A buyer will need to spot the talent of other artists and bring their products into the limelight so the public can discover them.
What is the growth potential for a wind chime business?
Growth potential can be excellent for wind chime owners, though it may take some time to spark new demand in (what is considered) an outdated technology.
TRUiC's YouTube Channel
For fun informative videos about starting a busines visit the TRUiC YouTube Channel or subscribe below to view later.
One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.
Having a support network in place to turn to during tough times is a major factor of success for new business owners.
What are some insider tips for jump starting a wind chime business?
Successful wind chime businesses look for new angles to exploit when it comes to marketing their products. When anyone can enjoy the sound of wind chime through an app on their phone, it’s a good idea to highlight what it really means to have a physical object that's able to catch the wind in all its glory.
Not only does a wind chime capture the sound of the gentle breeze, but it can also bring immense comfort to those who hear it. There are plenty of studies to suggest that a wind chime really can create a sense of calm and peace, which can be a truly profitable marketing angle for a business owner trying to get their business off the ground. Owners should either create or look for wind chime that appeal to modern sensibilities as well as traditional tastes.
Those who are committed to their craft will find new sounds and designs that help their products stand out. Wind chime are often sold at craft and souvenir shops, but you may want to think outside the box when it comes to deciding on a branding strategy. For example, selling themed wind chimes made in the form of popular fictional characters or luxury wind chime made from green materials.
Owners may want to start off slowly online to learn more about the demand for their business. Even buyers may want to create a website that showcases their feature artists best works. Whether you're planning to sell online or in a physical location though, make sure you have some type of commercial insurance to cover your business. If a bed bug jumps into one of your shipping boxes, you may be held responsible for the damage.
How and when to build a team
Those selling their crafts online should be able to handle customer fulfillment on their own without outside help. Even a wind chime retail store may only need one or two employees if they keep limited hours. If hiring a secretary to keep track of orders or a salesperson to work at a physical location, make sure to hire someone who understands the art of wind chime along with basic customer service skills.