SP: Jan and Amy, could you tell us a little about your background?

SCS: We met while attending Boston University's MBA program (graduating in May 2004). Prior to launching Spark Craft Studios, Jan worked for 10 years in prominent non-profit organizations in Massachusetts and California where she was responsible for marketing, fundraising, event management and membership development. Amy owned her own theatrical lighting design company in New York City and worked with theater and opera companies all over the United States.

SP: How did you come up with the idea for Spark Craft Studios?

SCS: In January 2004, we developed the Spark Craft Studios concept as part of a business plan project for our MBA program. We discovered a trend that was beginning to surface among younger, cosmopolitan females with disposable income and hectic schedules. These women were showing a renewed interest in crafts such as knitting, crocheting, jewelry-making and paper-related crafts. Unlike their mothers who tended to do crafts in the home, these young women were seeking to nurture their creativity in a trendy spot where they could also socialize with friends. Recognizing that traditional craft retailers were not targeting this market, nor incorporating important social elements into these crafts, we decided to launch Spark Craft Studios in January 2005, less than a year after we finished our MBA program.
 

SP: What differentiates Spark Craft Studios from other craft-making outlets?

SCS: Our tagline is 'Creativity, Community, Style." Spark Craft Studios offers busy women a fashion-forward, convenient crafting experience in an upscale venue. Our 3,000 square foot studio houses a retail craft supplies boutique (selling yarn, paper, beads and gift items); craft classes (knitting, crocheting, scrap booking, card making, jewelry making); special events (such as our popular 'Wine & Craft" series); studio workspace; and private parties (for baby/bridal showers, Girls Night Out, corporate retreats, etc.). This experience-based retailing strategy sets us apart from other craft-making outlets 50% of revenues are generated by retail and 50% by everything else.
 

SP:

SCS: We chose the name 'Spark" because it's a word often used when describing crafts. We also like the play on words 'Spark a friendship," 'Spark your creativity."

SP: What were your start-up costs? How did you fund your start-up?

SCS: We got the doors to Spark Craft Studios open on an extremely tight budget. We started with money from angel investors, family and friends and personal savings. Our start up costs consisted of a deposit for our retail space; starting inventory; construction and cosmetic improvements; furnishings; retail display and fixtures; legal fees (to incorporate and issue equity); and marketing. Since opening, we raised additional funding, received a small business loan, and reinvested revenues for inventory, marketing and staffing. This is a bootstrap operation!

SP: What was the most challenging thing you faced during the first phase of start-up?
 

SCS: When you are piloting a brand new concept, everything is a challenge. We had to prove the concept before opening to convince investors to believe in the project, so we pre-sold studio memberships. We did a ton of market research to make sure we were on target. We began marketing Spark to potential customers to start the buzz early; contracted a legal team and accountant; forged relationships with suppliers; found a retail location and negotiated a lease; and hired instructors and staff. It was a very busy eight months to go from business plan to actual business.
 

SP: Spark Craft Studios offers Membership plans. Could you tell us a little about that?

SCS: A 3-month membership is $50; annual membership is $150 if pre-paid or $15 per month with automatic credit card deductions. Membership entitles the customer to unlimited use of the studio's workspace, tools, equipment and other amenities. We also offer supplies and class discounts and special, member-only events.

SP: It appears you've used PR very successfully to market your business. Could you tell our readers a little about that? Do you use any additional advertising?

SCS: Free publicity is a wonderful thing. We got some early press through a contact of Jan's who wrote about our opening for 'DailyCandy Boston" which is a subscription service that sends an email every day about 'what's hot" around town. From that, we got local media to notice us, the Boston Globe, the Boston Herald, Chronicle (a TV news magazine) and others. Once you get some coverage, more seems to follow. This past summer, we decided to hire a publicist (a huge monthly expense for us) to keep the momentum going. We do limited paid advertising. Most of our marketing is based upon leveraging word of mouth, for example, getting large groups from women's organizations and young professional groups to the studio for events.

SP: What sort of company did you form? (LLC, "S" Corporation, etc)

SCS: We are a C Corporation.
 

SP: Do you have any paid employees?

SCS: We are full-time employees of Spark Craft Studios. We also have eight part-time retail/studio employees and 25+ contracted instructors.

SP: What is your expected revenue for the year?

SCS: We really don't disclose our revenue numbers but it is less than $500k.
 

SP: What are your long-term goals for Spark Craft Studios?

SCS:

SP: Do you have any advice for potential entrepreneurs?

SCS: Go into it with both eyes wide open. Entrepreneurship can be exhilarating and rewarding, but you need to know your own tolerance for the inherent risks involved. Make solid plans that will keep you on target for achieving your goals. Start with more money than you think you'll need and expect to make less than you initially project. It can take time to reap the benefits of your hard work. Stay positive, anything is possible with a good attitude.

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