Small Business Revenue

I sold 100+ puzzles in a year, this is what I learned.

In 2022, I sold 100+ puzzles with my illustrated art. The portrait project began as a way to memorialize great women in history (past and present) for their accomplishments. I hand drew and illustrated their faces, which I eventually turned into stickers, mugs, and a puzzle, complete with a link to a hidden website where you could learn more about each of their stories.

Initially I started small, printed 20 of the puzzles through Shutterfly. Eventually, as the popularity of the puzzles grew I began searching for a wholesaler to produce 100 of the 500 and 1000 piece puzzles. Wanting to keep production as close to home as possible, I worked with a Canadian company to produce my designs. I designed the box, and page inside with bios about some of the women, and placed my order.

It was exciting to see my artwork make an impact, and a source of revenue within my small business. I sold the puzzles online, in a local retailer, and at markets.

Connecting with customers made the days worthwhile. But it wasn’t all easy. Tabling at markets is hard, long hours are spent traveling, setting up, and managing the booth. But what many people don’t realize is that most markets charge a fee for each table, this is how the organizers make money.

When I added up all of the time that I spent illustrating, designing, product testing, managing booths, shipping online orders and managing my business, I realized that I was making less than $3 per hour. 

The average retail markup (for retail businesses of all sizes) is about 30-50%. Meanwhile, a healthy profit margin for small businesses ranges between just 7-10%. Because small businesses work with smaller quantities of goods it can be difficult to compete with larger businesses at lower prices and make a profit to support the business.

While Marketplaces like Amazon and Etsy make it easier for shoppers to find your small businesses, significant fees cut into overall gross revenue. Once you include the cost of goods, labor to create the product, and shipping costs, you’re left with almost nothing.

Ultimately, I adjusted my own business to focus on services, specifically graphic design and data visualization. While I am satisfied with the evolution of my business, I can't help but wonder if our current system and the resources available to small businesses sets them up to fail.

Now, maybe my business is different. Afterall, if I were able to increase my order numbers to even 500 wholesale puzzles at a time my profits would have improved. But my story is not the only one. Thousands of small businesses struggle with these same challenges every day.

Organizations like the Institute for Local Self Reliance, Small Business Rising, Go Local Asheville, Lowcountry Local First, and other organizations advocate for better policies and laws on behalf of small business owners. I encourage you to find a way to support them.

You can still shop the Portrait Project on Etsy.

Infographic support by Chris Maxey. Copy editing by Lauren Schenker. Photos by Bailey Page Photography.