Photo courtesy of Etsy

Yesterday the Wall Street Journal published this interview with Rob Kalin, founder and CEO of Etsy. Unlike other fluff pieces on the rising popularity of handmade, this interview focused on the business of the online marketplace and why it is successful.

According to the interview, Etsy has raised approximately $31.6 million from investors since its inception in 2005. Etsy is currently “valued at about $100 million; earns between $15 and $20 million in annual revenues; and plans to go public, though not until at least next year…”

The tremendous growth of Etsy can be attributed to a number of company values which are are also useful pieces of advice for the business-minded crafter or entrepreneur. Here are a few highlights:

Continue to strive to improve your brand.
Kalin says: “The last 10% it takes to launch something takes as much energy as the first 90%. The closer you get to it, the finish line keeps moving further and further. It takes a lot of effort to cross the line. I keep learning that over and over again. And it’s happening now as we look to ship new features on our site, like improving the way checkout works.” Other recent improvements include a better, more simplified way to search.

Connect with your community.
The handmade community loves Etsy and Etsy loves its community. Not only is there a craft night every Monday night at the Etsy offices, Kalin also is active in the forums replying to threads.

Small businesses should not forget that cultivating personal relationships are imperative.
Kalin says: “In my experience, in the seed and angel round, people are going to invest in people and products, not the business plan. [Entrepreneurs] focus on the plan first, and they have it backwards in my opinion.”