PhygitalCrafters

Module 1: Management and finances 

Introduction

Many people sell handmade products without knowing exactly how much they spend or earn. This module helps you understand the value of your work and make informed decisions about pricing and selling. By learning simple financial management skills, you can gain confidence, avoid selling at a loss and take steps towards creating a more sustainable source of income from your craft. 

You will learn how to manage money in your craft business in a simple and practical way. You will discover how to identify different types of costs, calculate the cost of a handmade product, set fair prices and keep basic records of sales and expenses. You will also learn how to understand profit and loss and use simple financial information to make better business decisions.

This module is linked to all the other modules. Understanding costs and pricing helps you promote products, explain their value, use digital tools effectively, make sustainable choices, and plan for safe business operations.

Prerequisites

The module is designed for craft entrepreneurs with little or no prior knowledge of business management in relation to finance. You should only have an interest in selling handmade products or already be producing craft items for sale. Nevertheless, it is good, if you can already work with simple numbers and basic money calculations.  

Total duration of the Module

6 hours 

Objectives

• Identify income, costs, and profit in a craft business.

• Calculate product costs, including materials and production time.

• Set fair selling prices using basic pricing methods.

• Record and monitor costs, sales, income, and expenses using simple tools.

• Create basic financial overviews to support business decisions.

• Develop record-keeping skills and manage a craft micro-business with greater confidence.

• Planning production workflows, priorities and deadlines.

• Applying basic business planning, legal requirements and risk assessment.

Learning Outcomes

What learners will be able to do upon completing the module. These are divided into:

• Knowledge
  After completing this module, learners will be able to:

• • Explain the difference between income, costs and profit.

  • Describe how money flows into and out of a craft-based micro-business.

  • Identify different types of costs, including material costs, time costs and other business-related expenses.

  • Explain why prices should cover costs and include an amount for profit.

  • Describe the purpose of basic record keeping and simple financial tracking.

  • Recognise how planning, pricing and financial decisions influence the sustainability of a craft business.

  • Explain basic legal requirements for starting a business (e.g. registration and income rules).

  • Identify key steps to legally register a small business in their country.

• Skills
  After completing this module, learners will be able to:

• • Identify and list the costs involved in producing and selling a handmade product.

  • Calculate the approximate total cost of one craft product using materials, time and other expenses.

  • Apply a simple pricing method to determine a selling price.

  • Record basic information about costs and sales using a notebook or simple template.

  • Create and interpret a simple monthly money overview showing sales, costs and approximate profit.

  • Use financial information to support routine business decisions.

  • Complete a simple checklist of legal registration steps for a small business in their country.

• Competences
  After completing this module, learners will be able to:

• • Apply basic financial thinking to their craft-based micro-business activities.

  • Make informed decisions about pricing based on costs and desired profit.

  • Monitor simple business performance using basic financial records.

  • Recognise situations where a product may be generating profit or loss.

  • Use simple financial information to improve planning and decision-making.

  • Apply basic legal requirements to a simple business idea and decide which registration steps are necessary.

• Responsibility/autonomy
  After completing this module, learners will be able to:

• • Identify and list the costs involved in producing and selling a handmade product.

  • Calculate the approximate total cost of one craft product using materials, time and other expenses.

  • Apply a simple pricing method to determine a selling price.

  • Create and interpret a simple monthly money overview showing sales, costs and approximate profit.

  • Use financial information to support routine business decisions.

  • Take responsibility for checking that their planned business complies with registration and income rules before starting.

Methodology

Practical methodology, based on real life examples, adapted to learners' experiences.