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How to Start a Handmade Craft Business

• Time to read: 20 min.

Welcome to the exciting world of crafting and entrepreneurship! Starting a handmade craft business allows you to transform your creative passion into a successful venture. 

This guide will help you understand the important steps involved in building your handmade craft business. From choosing your craft niche to creating a business plan, establishing an online presence, and providing excellent customer experiences, you’ll learn everything you need to know. 

Get ready to combine your love for crafting with the joy of running a profitable business.

Understanding the Craft Market

Envision the craft market as an expansive landscape. It’s ever-changing and filled with opportunities. Each year, the craft world introduces new trends and products. Keeping a close eye on these changes is key to your success.

Research is essential in this journey. Attend craft fairs and explore popular online platforms. Look for what’s trending and selling well. Don’t forget to examine the customers too. Who’s buying what can offer you great insights.

Also, study your competitors. Understanding their strengths and weaknesses can help you stand out. All this knowledge will guide you in crafting a successful business. The deeper your understanding, the better your chances of thriving in this creative arena.

Identify Your Unique Crafts

Dive into your pool of creativity and evaluate what you can create. Unleashing your unique skills is crucial in the vibrant world of crafts. Here’s a list of popular handmade crafts you might consider:

• Handmade Jewelry: Be it delicate earrings, statement necklaces, or custom bracelets, jewelry always finds a spot in the market.
• Knit and Crochet Items: Warm blankets, stylish scarves, cute amigurumi toys – the possibilities are endless with a pair of needles or a hook.
• Ceramic Pottery: Beautiful and functional, pottery items like mugs, plates, or vases can be a hit.
• Handmade Candles: Scented, decorative, or themed candles can light up someone’s day.
• Woodwork: From furniture to intricate carvings, woodwork is an attractive craft area.
• Bath and Body Products: Think organic soaps, bath bombs, lotions, or lip balms that offer a touch of luxury.
• Paper Crafts: Custom cards, scrapbooks, or origami art pieces cater to the paper-loving audience.
• Leather Goods: Wallets, belts, or stylish handbags made of leather can be sought after.
• Sewing and Embroidery: Quilts, embroidered art, custom clothing, or even plush toys could be your forte.
• Glass Art: Stained glass decor, fused glass jewelry, or hand-blown glassware are eye-catching craft options.

Take time to explore your talents. Which of these crafts do you enjoy making? Where does your craft stand out? Does it fill a particular niche? By asking these questions, you can focus your craft business in the right direction.

Writing a Handmade Craft Business Plan

Setting up a handmade craft business demands a well-thought-out business plan. This crucial document will act as a roadmap, guiding your actions and decisions as you establish and grow your business. 

Follow these detailed steps to create your business plan:

Step 1: Executive Summary: Write a concise overview of your business. Include your business name, the type of crafts you’ll sell, and your business objectives.

Step 2: Business Description: Outline your business in more detail. Describe your products, your target market, and your unique selling proposition – what sets your crafts apart?

Step 3: Market Analysis: Detail your understanding of the craft market. Who are your competitors? What trends are impacting the industry? Use your research on the craft market here.

Step 4: Organization and Structure: Define your business structure. Are you a sole proprietor, or are you entering a partnership? Describe your role and any key partners or employees.

Step 5: Services and Products: Describe the crafts you’ll sell. How are they made? What value do they bring to customers?

Step 6: Marketing and Sales Strategy: Outline your plans for attracting and retaining customers. Will you use social media, craft fairs, or online marketplaces?

Step 7: Funding Request and Use: If you seek external funding, specify how much you need and how it will be used. If you’re bootstrapping, detail your financial plan.

Step 8: Financial Projections: Provide projections for future sales, expenses, and profits. This section is crucial, especially if you’re seeking external funding.

Building a Realistic Product Pricing Strategy

A sound pricing strategy ensures your business is profitable without alienating potential customers. 

Here’s a step-by-step process using real numbers:

Step 1: Calculate Cost of Goods Sold (COGS): This includes the cost of all the materials used to make a product. For example, if you’re creating a handmade necklace, you might spend $10 on beads, $2 on string, and $3 on a clasp, totalling to $15.

Step 2: Determine Your Time Cost: Estimate how much time it takes you to create one product. Let’s say it takes you 1 hour to make the necklace, and you value your time at $15 per hour.

Step 3: Add Overhead Costs: These are the indirect costs of making your products. For example, utilities, rent, marketing expenses, etc. Assume that overhead costs amount to $5 per product.

Step 4: Calculate Total Cost: Add up the numbers from Steps 1-3. For the necklace, your total cost would be $35 ($15 for materials + $15 for your time + $5 for overhead).

Step 5: Set a Profit Margin: Profit margins can vary, but a common margin for handmade crafts is around 50%. So, if your total cost is $35, your selling price would be $52.5 ($35 + 50% of $35).

Step 6: Research Competitor Pricing: Look at what similar products sell for. If similar necklaces sell for $60, your price is competitive. If they sell for $40, you may need to adjust your costs, pricing, or profit margin.

Remember, pricing is a delicate balance. It should cover your costs, provide a profit, and reflect the value to the customer.

Legal Aspects to Consider

Delving into the world of crafts comes with its share of legal considerations. They may seem daunting, but they are a vital part of setting up a business.

Here are some key legal aspects you should consider:

Permits and Licenses

Depending on your location and the nature of your craft business, you may need certain permits or licenses. These could be a general business license, a sales tax permit, or a home occupation permit if you’re operating from home. Check with your local and state government offices to find out what you need. They can provide guidance on the required paperwork.

Liability Protection

If your craft product accidentally causes harm or injury to a customer, you could face a lawsuit. Therefore, you should consider product liability insurance. It helps protect your business in such scenarios. Consulting with an insurance advisor can help you understand the coverage you need.

Tax Requirements

Running a craft business comes with tax obligations. You’ll likely need to pay income tax, self-employment tax, and sales tax. Keep detailed records of your income and expenses to make tax time easier. Hiring a tax professional is a wise move, especially when you’re starting. They can help ensure you meet all tax requirements and even find deductions to save you money.

Labeling Requirements

Depending on your craft products, there may be labeling regulations you need to follow. For example, if you’re selling homemade candles, you might need to include warning labels. If you’re selling clothes, you may need to list the materials used. Check with the relevant federal agencies or a legal advisor to ensure your labels are compliant.

Copyright and Intellectual Property

If your designs are original, consider protecting them with a copyright or patent. Also, respect the intellectual property rights of others. You can’t sell crafts that infringe on someone else’s copyright.

Legal compliance is not an area to neglect. It’s much easier to set up everything correctly from the start than to untangle legal issues later. If you’re unsure about any aspect, seek help from a professional. Lawyers, accountants, and business advisors can guide you through the process, ensuring you’re on the right track.

Choosing Your Handmade Craft Business Name

The process of picking your business name is an exciting journey. It’s a creative endeavor that demands careful thought as it significantly impacts your brand identity. Here’s a detailed guide on how to come up with an unforgettable and unique name:

Step 1: Brainstorm Ideas

Start by brainstorming words related to your craft and the feelings you want your brand to evoke. Is it about elegance, quirkiness, nostalgia, or whimsy? Write all these words down. Don’t censor yourself in this initial stage; let your creativity flow.

Step 2: Combine and Play with Words

Now, look at your list and start playing with combinations. Mix and match words, look for rhymes, or even invent new words. For example, if you’re making knitted goods and want to evoke a sense of comfort and coziness, you might combine words like “Cozy,” “Knit,” and “Haven” to create “CozyKnitHaven.”

Step 3: Keep It Simple

While being creative, remember that your business name should be easy to pronounce, spell, and remember. A name that’s too complicated or long might confuse potential customers.

Step 4: Reflect Your Craft

Ideally, your business name should give some clue about the nature of your craft. A name like “EcoWoodCreations” instantly informs customers that you work with wood and have an eco-friendly approach.

Step 5: Check for Uniqueness

Once you have a list of potential names, it’s time to check if they’re available. A quick online search can help you see if there are other businesses with the same name. You can also check on domain registration sites to ensure the website domain for your name is available.

Step 6: Get Feedback

Share your top choices with close friends, family, or potential customers. Their feedback can provide invaluable insights. They might see connections or connotations that you missed.

Step 7: Legal Registration

After you’ve chosen your business name, it’s crucial to register it. Depending on your business structure, this might be as simple as filing a “Doing Business As” (DBA) statement with your local government, or it could involve trademarking the name.

Your business name is more than just a name; it’s the first interaction a potential customer has with your brand. Take the time to create a name that resonates with your vision for your craft business.

Crafting Your Digital Storefront

A robust online presence is a critical component for any successful craft business today. It’s your digital storefront where customers can browse, appreciate, and purchase your handmade crafts. 

Here’s a detailed guide on creating your online shop using platforms like Shopify, WordPress with WooCommerce, or other similar storefronts:

Step 1: Choose the Right Platform: Decide which e-commerce platform fits your needs. Shopify is a user-friendly option with a range of features, including various themes, secure payment options, and marketing tools. WordPress with WooCommerce, on the other hand, offers extensive customization and flexibility, perfect for those with more technical knowledge.

Step 2: Create Your Website: Once you’ve chosen a platform, it’s time to build your site. Choose a theme that aligns with your brand image. Make sure it’s clean, appealing, and easy to navigate. Use high-quality images of your crafts and provide detailed product descriptions.

Step 3: Showcase Your Craft: Create a compelling product portfolio. Include clear, well-lit photos from different angles. Incorporate videos where possible. For each product, provide details like size, materials used, and care instructions. Also, share the story behind each craft – this adds a personal touch and connects with customers.

Step 4: Craft Your Story: Don’t forget the ‘About’ page. Tell your story. How did you start crafting? What inspires you? This connection can turn visitors into customers and even loyal fans.

Step 5: Set Up Payment and Shipping: Ensure your website has secure payment gateways. Options can include credit/debit cards, PayPal, or Apple Pay. Also, outline clear shipping and return policies.

Step 6: Optimize for Search Engines: Implement SEO practices to increase your site’s visibility on search engines. Use relevant keywords in your product descriptions, meta descriptions, and headers. Create a blog to share crafting tips or behind-the-scenes content. This can help attract traffic to your site and boost your rankings.

Step 7: Launch and Promote: Once your site is ready, launch it and promote it across social media platforms, email newsletters, and craft forums. Regular updates and promotions can keep your customers engaged and coming back for more.

Your online store is an extension of your craft business. It should reflect the love, care, and creativity that go into each handmade craft you create. With a well-crafted digital storefront, you can reach a wider audience and turn your craft passion into a thriving business.

Elevating Your Craft Business with SEO

In the vast digital landscape, Search Engine Optimization (SEO) is your compass to guide potential customers to your craft business. Let’s delve into the basics of SEO and how it can enhance your online visibility:

On-Page SEO

On-page SEO involves optimizing various elements on your website to improve its search engine rankings. It starts with identifying relevant keywords related to your craft business. These keywords are the words and phrases that people commonly search for when looking for crafts online. Incorporate these keywords naturally into your website content, including product descriptions, blog posts, and page titles. This enables search engines to better understand the relevance of your content and increases your chances of appearing higher in search results.

Off-Page SEO

Off-page SEO refers to activities performed outside of your website that can positively impact your search rankings. One crucial aspect of off-page SEO is building high-quality backlinks to your website. Backlinks are links from other reputable websites that direct users to your site. Search engines view backlinks as a vote of confidence and credibility, which can improve your rankings. Engaging in guest blogging, reaching out to influencers, and promoting your crafts on social media can help attract backlinks and amplify your online presence.

Social Signals

Social signals play a role in SEO by influencing search engine rankings. These signals are indicators of your website’s popularity and authority on social media platforms. The number of likes, shares, comments, and overall engagement your craft business receives on social media can have an impact on your search rankings. Cultivating an active and engaged social media presence can enhance your brand visibility, attract more visitors to your website, and potentially boost your search rankings.

Remember, SEO is an ongoing process that requires continuous optimization and adaptation. Stay updated on the latest SEO practices, monitor your website’s performance using analytics tools, and make adjustments accordingly. By harnessing the power of SEO, you can attract a larger audience to your craft business and showcase your creations to those who are actively seeking them online.

Social Media and Promoting Your Craft Business

In the digital landscape, social media is a vital catalyst to drive traffic and generate sales for your craft business. 

Let’s explore some of the most influential social media platforms and how they can propel your craft business forward:

With its visual focus, Pinterest is a haven for crafters and DIY enthusiasts. It allows you to create captivating boards and showcase your crafts through high-quality images. Crafters often turn to Pinterest for inspiration, making it an ideal platform to reach your target audience. Create eye-catching pins, optimize them with relevant keywords, and link them back to your website. Engage with the Pinterest community, join group boards, and establish your presence as an authority in your craft niche.

As a visual-centric platform, Instagram provides a seamless way to display your crafts to a wide audience. Utilize the power of striking visuals, thoughtful captions, and relevant hashtags to attract attention. Showcase your products through enticing images and videos, share behind-the-scenes peeks, and tell engaging stories through Instagram Stories and IGTV. Cultivate an active presence, engage with your followers by responding to comments and direct messages, and leverage influencer collaborations to expand your reach.

TikTok’s short-form video format has gained immense popularity, especially among younger audiences. It offers a unique opportunity to showcase your creativity and craft skills through engaging and entertaining videos. Share tutorials, process videos, and fun behind-the-scenes clips. Leverage popular craft-related hashtags and participate in trending challenges to increase your visibility. As TikTok’s algorithm favors discoverability, there is potential for your craft business to gain significant exposure.

YouTube is an excellent platform for in-depth tutorials, craft demonstrations, and DIY projects. Create high-quality videos showcasing your craft techniques, step-by-step guides, or even vlogs documenting your craft journey. Optimize your videos with relevant titles, descriptions, and tags to increase their visibility in search results. Engage with your audience through comments and encourage them to subscribe for future updates.

While Facebook may not be as visual-centric as Instagram or Pinterest, it still provides a vast audience reach and valuable marketing opportunities. Create a Facebook business page to share updates, promotions, and engage with your audience. Join relevant craft communities and groups to connect with like-minded individuals and potential customers. Consider utilizing Facebook ads to target specific demographics and expand your reach further.

Remember, social media platforms offer tremendous potential to connect with customers, showcase your craft products, and foster brand loyalty. 

Select platforms that align with your target audience’s preferences and invest time and effort in engaging and building relationships with your followers. By leveraging the power of social media, you can create a thriving community around your craft business and drive traffic to your website for increased sales and brand recognition.

Selling Crafts on Online Marketplaces

In the digital realm, online marketplaces open up a world of opportunities for craft businesses. These platforms, including Etsy, Amazon Handmade, and eBay, provide access to a vast customer base and streamline various aspects of selling. Here’s an in-depth look at the benefits and considerations of selling on online marketplaces:

Etsy is renowned as a go-to marketplace for handmade crafts, artisanal products, and vintage items. It attracts a community of craft enthusiasts actively seeking unique, handcrafted goods. By setting up a shop on Etsy, you tap into a targeted customer base that appreciates the value of handmade creations. The platform offers seller tools, such as listing optimization features, promotional opportunities, and analytics to help you track performance. Keep in mind that Etsy charges listing fees, transaction fees, and other expenses, so carefully calculate your pricing to account for these costs.

Amazon Handmade

Amazon Handmade is a dedicated section within the vast Amazon marketplace that showcases handcrafted products. As the world’s largest online retailer, Amazon provides unparalleled visibility and access to a massive customer base. Listing your crafts on Amazon Handmade exposes your products to millions of potential buyers, boosting your chances of sales. The platform offers fulfillment options like FBA (Fulfillment by Amazon) or FBM (Fulfillment by Merchant) to handle warehousing, shipping, and customer service. Be aware that there are referral fees and other associated costs when selling on Amazon Handmade.

eBay is a well-established online marketplace known for its broad reach and diverse range of products. It caters to both new and vintage items, making it suitable for craft businesses that incorporate vintage elements or offer unique collectibles. eBay provides tools for sellers to create listings, manage inventory, and engage with buyers. However, it’s essential to be mindful of the competition and ensure your products stand out through compelling listings and competitive pricing. eBay charges listing fees and final value fees based on the selling price.

When considering online marketplaces, evaluate which platforms align best with your craft business and target audience. Research the fees, policies, and seller requirements of each marketplace to determine the most suitable fit. 

Additionally, consider the specific features and tools each platform provides to support your craft business, such as promotional opportunities, advertising options, and customer support.

Keep in mind that while online marketplaces offer convenient logistics and access to potential customers, it’s still vital to establish your brand identity and promote your craft business through effective marketing strategies. 

A balanced approach that combines selling on online marketplaces with building your independent online presence can maximize your reach and sales potential in the craft market.

Building a Strong Brand

In the bustling world of craft businesses, building a strong brand is essential to stand out from the competition and forge meaningful connections with customers. 

Here’s a detailed exploration of the key elements that contribute to a robust brand:

Mission, Vision, and Values

Define your craft business’s purpose, vision for the future, and the core values that guide your operations. Your mission encapsulates the impact you aim to create through your crafts, while your vision paints a vivid picture of where you aspire to be. 

Your values reflect the principles that govern your decisions and interactions. Crafting a clear and compelling mission, vision, and set of values will provide a solid foundation for your brand.

Aesthetics and Visual Identity

Your brand’s visual elements, such as your logo, color palette, typography, and overall design, contribute to the aesthetics of your craft business. Consistency across these visual elements establishes a cohesive and recognizable brand identity. 

Consider how your brand’s aesthetics align with your crafts’ style, values, and target audience, as they play a vital role in evoking emotions and conveying your brand message.

Packaging as a Brand Extension

Packaging serves as the first tangible touchpoint with your customers. It not only protects your crafts but also provides an opportunity to leave a lasting impression. Thoughtfully design your packaging to align with your brand’s visual identity and evoke the desired emotions. 

Consider eco-friendly options, personalized notes, or creative touches that enhance the unboxing experience and leave customers excited about your brand.

Customer Loyalty and Differentiation

Strong brands cultivate loyal customers who not only make repeat purchases but also become advocates for your craft business. Deliver exceptional customer service, go above and beyond to meet customer needs, and create a memorable experience at every touchpoint. By nurturing customer loyalty, you establish a solid foundation for your brand’s growth. 

Additionally, identify what sets your crafts apart from competitors and highlight these unique selling points. Whether it’s superior craftsmanship, innovative designs, or a distinctive style, emphasize what makes your crafts special to create a distinct market position.

Building a strong brand requires time, consistency, and a deep understanding of your craft business’s essence. Dedicate resources to carefully craft and nurture your brand identity. 

When done effectively, a compelling brand will attract loyal customers, differentiate you in the market, and contribute to the long-term success of your craft business.

Customer Service in Your Craft Business

Customers hold the key to the success of your craft business. To build lasting relationships and foster loyalty, exceptional customer service is paramount. 

Consider these essential practices:

Responsive Communication

Promptly respond to customer inquiries, whether through email, social media, or your website’s contact form. Provide helpful and informative responses that address their questions or concerns. 

Clear and timely communication builds trust and demonstrates your commitment to customer satisfaction.

Issue Resolution

Inevitably, issues or concerns may arise. Approach them with empathy and a genuine desire to find a solution. Resolve problems promptly, striving for a win-win outcome. 

Actively listen to your customers’ feedback, taking it as an opportunity to improve your products or processes. By demonstrating responsiveness and a proactive approach to resolving issues, you can turn potentially dissatisfied customers into loyal advocates.

Word-of-Mouth Power

Satisfied customers can become invaluable brand ambassadors. Positive experiences with your craft business can prompt customers to recommend you to friends, family, or online communities. 

Encourage word-of-mouth marketing by consistently delivering exceptional customer service and providing a remarkable overall experience. 

Foster positive relationships, and remember that every customer interaction is an opportunity to make a lasting impression.

Packaging and Shipping Your Products

Packaging and shipping play pivotal roles in enhancing the overall customer experience. Consider the following tips:

Thoughtful Packaging

Design packaging that aligns with your brand’s aesthetics and reinforces your craft’s value. Ensure it provides adequate protection to prevent damage during transit. Consider adding personalized touches, such as branded stickers or handwritten notes, to create a memorable unboxing experience. Reflect your commitment to sustainability by using eco-friendly packaging materials whenever possible.

Shipping Efficiency

Research various shipping options to identify the best balance of cost, reliability, and speed for your craft business. Consider partnering with shipping carriers that offer competitive rates, tracking capabilities, and reliable delivery services. Streamline your shipping process by utilizing shipping software or services that help automate label creation, package tracking, and order fulfillment.

Shipping Costs and Pricing

Factor in shipping costs when determining your product pricing. You can choose to offer free shipping by incorporating the shipping costs into the product price or set separate shipping fees. Conduct a cost analysis to ensure your pricing remains competitive while covering the expenses associated with packaging and shipping.

By prioritizing thoughtful packaging and efficient shipping, you demonstrate your commitment to delivering a delightful experience to customers. 

When their orders arrive promptly and in pristine condition, it enhances their overall satisfaction and increases the likelihood of repeat purchases and positive reviews.

Prioritizing Self-Care

As a craft business owner, it’s crucial to remember that taking care of yourself is just as important as taking care of your business. 

Here are some essential self-care practices to incorporate into your routine:

Rest and Relaxation

Running a business can be demanding, so make sure to schedule regular downtime. Set aside time for relaxation, whether it’s through meditation, reading, or pursuing a hobby. Allow yourself to recharge and rejuvenate, as this will contribute to your overall well-being and prevent burnout.

Maintaining Connections

Don’t let the busyness of your craft business overshadow your personal relationships. Stay connected with friends and family. Carve out time for social activities and meaningful conversations. Nurturing these connections provides support, balance, and a sense of belonging outside of your entrepreneurial endeavors.

Pursuing Hobbies and Interests

Your craft business is an extension of your passion, but remember to cultivate other interests as well. Engaging in hobbies unrelated to your business allows you to explore new areas, unwind, and find inspiration from diverse sources. It helps maintain a well-rounded life and stimulates creativity in unexpected ways.

Wellbeing and Creativity

Prioritizing your wellbeing has a direct impact on your creativity and productivity. When you prioritize self-care, you allow your mind to rest, recharge, and access its creative potential. Regular exercise, sufficient sleep, and a balanced diet are vital components that contribute to your overall well-being and foster a clear and focused mind.

Embracing Innovation and Staying Relevant

In the dynamic craft industry, staying current and continuously innovating is crucial for the long-term success of your craft business. Consider these strategies to keep your craft business fresh and exciting:

Keeping Up with Trends

Stay informed about the latest trends and shifts in the craft market. Follow industry blogs, attend trade shows, and engage with craft communities both online and offline. Keeping your finger on the pulse of emerging trends allows you to adapt and cater to evolving customer preferences.

Exploring New Techniques

Continuously challenge yourself by exploring new techniques and experimenting with different materials. Attend workshops, take online courses, or join local craft groups to expand your skill set. Embracing new techniques can infuse freshness and uniqueness into your crafts, captivating customers with your innovation.

Lifelong Learning

Cultivate a growth mindset and embrace learning as a lifelong journey. Stay curious and seek inspiration from various sources such as art exhibitions, nature, travel, or even other creative fields. Continuous learning broadens your perspectives, enriches your creative process, and keeps your craft business dynamic.

Taking Calculated Risks

Don’t be afraid to step outside your comfort zone and take calculated risks in your craft business. Introduce new product lines, explore different marketing strategies, or experiment with collaborations. This willingness to take risks can open doors to new opportunities and set your craft business apart from the competition.

Remember, the essence of your craft business lies in your passion and creativity. Nurture these qualities as your craft business grows by prioritizing innovation, embracing change, and maintaining a sense of wonder and exploration. Adaptability and the courage to try new things will position your craft business for continued success.

Frequently Asked Questions

Popular online marketplaces for selling handmade crafts include Etsy, Amazon Handmade, eBay, and Shopify. Each platform offers different features, reach, and fees, so consider your target audience and business needs when selecting a marketplace.

Social media platforms like Instagram, Pinterest, and TikTok can benefit a craft business by providing a platform to showcase crafts, engage with customers, build brand awareness, and drive traffic to your website or online marketplace.

Customer service is vital in a craft business as it builds trust, fosters customer loyalty, and generates positive word-of-mouth referrals. Promptly addressing customer inquiries, resolving issues, and providing a memorable experience contribute to the success and growth of your business.

SEO (Search Engine Optimization) can benefit a craft business by improving its visibility in search engine results. Optimizing website content with relevant keywords, implementing on-page SEO strategies, and building backlinks can drive organic traffic to your website or online store.

Staying current in the craft business is crucial to remain relevant and competitive. Monitoring trends, exploring new techniques, continuously learning, and seeking inspiration help keep your crafts fresh, innovative, and appealing to evolving customer preferences.

In conclusion, starting a handmade craft business requires careful planning, creativity, and a deep understanding of various aspects such as market research, business planning, pricing strategies, legal considerations, online presence, customer service, packaging, and self-care. By following the guidelines outlined in this comprehensive article, you can lay a strong foundation for your craft business’s success.

Crafting a successful business from your passion requires dedication, perseverance, and a continuous thirst for growth and improvement. Embrace the challenges and enjoy the fulfilling journey of sharing your unique crafts with the world.

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If you’re a crafter, you must have wondered at one point or another whether this is something you could turn into a business. The answer to that question is yes, it is! In fact, it’s a lot simpler than you may imagine.

Getting your own craft business started can be a great way to turn your hobby into an income stream, and it doesn’t have to be difficult, either. You may need to spend some time on research and make sure to take a few things into consideration before getting started, though. 

Over the course of this article, I’ll explain some of the things you need to think about before taking your crafting hobby to the next level. As a small business owner myself, I'll tell you everything you need to know about the business side of things , while the ins and outs of your craft are something only you know best. 

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8 Steps to Start a Craft Business

Before you get your feet off the ground with your crafting business, here are a few things worth spending some time thinking about. These steps will help you give your idea the best chance of being successful.

1. Find Your Market Niche

The first thing you want to think about on this journey toward starting your craft business is deciding which of your crafts you want to focus on. Your first step will be to determine how these crafts fit into the market, what niche they belong to, and what trends are common in that niche.

You may already have an answer to this question in mind if you’ve been crafting for some time and want to stick to what you’re good at. This is not a bad idea – if you’re able to build a recognizable style, customers will be more likely to remember your crafts as yours. However, you should remain mindful of what other, similar businesses are doing, and how their work compares to yours. It’s always a good idea to check out your competition.

There can be many smaller niches your work can fall into – for example, if you’re a crocheter, you may specialize in crocheting clothing or may lean toward stuffed toys. Choosing your niche will help you build up your whole brand around the products that you’re most likely to be selling .

Once you’ve settled on a focal point to build your business around, think about what’s already out there within your chosen niche. What are similar craft businesses doing? Are there plenty of online stores that sell similar crafts?

If the market for your product is already quite saturated, you’ll need to find a way to make your crafts stand out from the pack. 

2. Visualize Your Customers

Now that you know what you want to sell, it’s time to think who wants to buy it. Who are your typical customers and what do they look for? While many people might enjoy your crafts, there will often be a pattern that will help you make some important decisions going forward. 

There are plenty of crafts available for sale at any given time, but if you’re able to imagine what your customers might want the most, you’ll be able to decide how to market your products, where to sell them, how to price them, and most of all, what to make for your next collection.

All of these factors will count toward getting your products sold and eventually increasing your sales .

Doing a little research will go a long way here. Check out similar businesses and see how they market their crafts – you can often gauge the customer base just from that. For example, a store that sells toys for children will have a much different way of marketing its products compared to one that targets hip, trendy people in their 20s.

3. Choose a Name for Your Business

While picking out a name for your business may seem like just one tiny detail, it can be the tiny detail that helps your business succeed. 

Pick a name that’s catchy and simple, but still communicates what you’re selling . You don’t want to get too fancy with a name that could go over people’s heads, or worse, a name that is easily forgotten. 

Just picking a name that speaks to you isn’t always enough – you’ll also need to make sure that other people haven’t come up with the same idea first. If you’re looking to sell your crafts online, check whether all the important social media handles and your perfect website address are available.  

If not, you might have to go back to the start and think of something else, because building your online presence will help you sell more of your creations.

4. Create a Business Plan

Having spent some time envisioning what you’re going to be selling and who you’re going to be selling to, it’s time to put some of this to paper and start producing your business plan . 

The idea may sound intimidating, but don’t worry – you don’t need to get into the business side of things too much. For a small business that sells crafts, your business plan will serve as a quick reminder of the path ahead and a checklist that tells you what you still need to do.

Think of the following and put it in writing:

• What you plan to sell
• How much time you want to devote to your craft business
• How much money you’re willing to invest upfront (unless you’ll start by selling things you’ve already made, which is fine too!)
• Possible places where you want to sell your crafts, and how to make that happen
• Where do you want to go in the future? Is this going to be a part-time thing or a full-time job one day? Try to imagine where your business might go and what it will take to get there.

One day, if you choose to expand your business, you might want to write up a more detailed business plan for the purpose of showing it to potential banks and investors. For the time being, if you don’t need loans or additional investments, focus on forging your own path.

5. Set Up Your Licensing and Insurance

One key part of starting your craft business is making sure that you’re good to go from a legal and licensing point of view. Unfortunately, registering your business is a process you’re going to have to go through even if you’re just operating out of your own home as a sole proprietor.

The types of licensing you need will vary based on where in the country you’re located, your business structure, and the type of business you plan on running. You might need multiple licenses for the same thing too: one each for local, state, and federal levels. If you’re planning on running your business from home, look into home business licensing and online seller licensing for selling your products online.

Another key consideration is insurance. Be prepared to consider business, general liability, and commercial property insurance , all of which are especially important if you have employees other than yourself. 

6. Pick the Right Place(s) to Sell Your Crafts

Now, it’s time to think about where you want to sell your crafts . If you want to test the waters before launching your own brick-and-mortar or online store, there are more ways than ever to do so today. 

Here are a few ways you can start selling your products without making the commitment of running your own store:

• Running a pop-up at a local arts and crafts fair
• Selling your products at local boutique shops
• Listing your products on a digital marketplace like Amazon, eBay, Etsy, or Walmart

These options are all solid ways to get started selling your crafts and get your products some initial exposure. However, boutique stores and digital platforms will all take fees for using their platforms – and these fees can add up to a lot in the long run . 

Starting your own website and online store is a good way to avoid the extra fees that are tied with some of the most popular digital marketplaces. Marketing your website will take time and work, but this is a long-term investment that will pay off over time. 

Once you have your own website you can put your creativity to work! You can build up your own style and brand, communicate with your customers in a simple and personal way, and even customize your own checkout page .

7. Set Up Your Payment Framework

If you choose to open your own online store and set your crafts independently, you’ll need a  payment service provider . 

Pay.com is a quick and easy way to start accepting a wide variety of payment methods. It’s easy to get started for you, and once it’s all set up, it’ll be equally easy to use for your customers. You don't need to be an expert to try it out, and no business is too small to sign up.

Other than accepting payments on your website, Pay.com also lets you accept card payments over the phone, and gives you the option of creating Pay Links to send to customers through email or text message. 

Once you’re all set, Pay.com can help you keep an eye on all your payments in a straightforward way. It’s easy to follow and secure, so you can sit back and focus on your crafts while we handle the payment side of things . 

Click here to get started with Pay.com.

8. Market Your Business

Marketing can mean a lot of things, from simple word of mouth to a full-on marketing campaign , but when you run a small crafts business, it all comes down to knowing your audience and putting your best foot forward.

You don’t need to spend money on marketing, at least not at first. Let your crafts do the talking and make sure to post them on social media. Facebook, Instagram, Pinterest, and even TikTok are all good places where you can market your crafts for free .

Try to get involved in groups and forums that focus on the type of crafting you’re doing. Share your creations with the world. You don’t always have to advertise them in a sales-like manner, either. Just showing off your crafts in the right places is bound to get you some people asking where they can see more of them, and providing helpful advice for other crafters can score you some serious points with potential buyers. That’s the right time to direct them to your website!

Remember that if you want to show your crafts, taking the right picture and writing the right description can make or break a potential sale. Lighting and background are both very important. Take photos in good light, with no distracting backgrounds, and put your crafts front and center. Helping them shine can help you make a sale.

The Pros and Cons of Starting Your Own Craft Business

Starting your own craft business can be a great way to earn an income doing something you love and already spend time doing, however, it doesn’t come without drawbacks. 

Let’s take a look at some of the pros and cons of starting your own craft business.

• You can make money from a hobby you love
• You can usually work from home
• You're your own boss and set your own hours
• Running a business helps you improve your marketing skills
• You can invest as much or as little time as you want into your business
• It can take a while for a new business to be profitable
• Your hobby may start to feel like a job and a source of stress
• As your business grows you will have to devote more time and attention to expanding it

The Bottom Line: Is Starting a Craft Business Right for You?

Having read through this article, you now have a much better idea about some of the practical steps you’ll have to take to set up your own craft business. We hope that you now realize that getting your craft business going doesn’t have to be as complicated as you may have thought.  

Whether it’s a crafting hobby that you’ve already spent a lot of time on, or something you’re just starting to get into and want to turn into something more structured, making a business out of it can be a great way to make some extra income from it – even if you start out small. 

Once you learn the ropes a little better and gain a better understanding of your market and the business side of things, going from there and expanding will come a lot easier. 

With plenty of great sales and ecommerce tools out there, as well as Pay.com to rely on for the payment side of things, setting up your own online or physical store has never been easier. Consider taking the plunge and trying it out!

Click here to find out how you can get started with Pay.com.

How can a craft business accept payments?

Your craft business can easily start accepting payments using Pay.com . Whether it’s for purchases over the phone, via a direct payment link, or accepting a wide variety of payment methods for your online store, Pay.com has you covered.

This applies to both larger businesses with an online presence or a physical store, or just quick payments made over the phone at a craft fair. Getting started is easy, so check it out now .

Are craft businesses profitable?

Craft businesses are often profitable , however, it can sometimes take a while to get to that point.

You’ll need to build up a steady stream of sales while making sure you optimize the costs of materials and various operational expenses.

How can I start my own craft business with no money?

Starting out with no money can be tricky. However, if you’ve already made some crafts or have the materials you need to get going, you can get started at little to no cost by listing them on a digital marketplace or having a third-party boutique store list your items.

You can also consider selling your products yourself at craft fairs.

How can I legally sell my homemade products?

Most states in the U.S. require you to have a business license if your intention is to make a profit by selling your homemade crafts; it’s worth checking your local laws to confirm this. 

If you plan on taking the next step with your crafts and turning it into a business, you’ll likely need to register your business and get a business license to make sure you’re in the clear legally.

Pay.com makes it simple for you to accept credit cards, debit cards, and a variety of other payment methods on your website. No website? No problem! You can also send your customers direct Pay Links.

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Ready to boost revenue for your business.

Craft Business Plan Template & Guidebook

The creation of a detailed and comprehensive business plan is essential to the success of any craft business. The #1 Craft Business Plan Template & Guidebook provides aspiring entrepreneurs with all the necessary resources they need to make informed decisions and realize their dream of starting a business. This guide provides a detailed template along with helpful advice and guidance to help artisans plan the perfect craft business.

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Craft Business [11 Steps]
• 10+ Best & Profitable Craft Business Ideas [2023]
• 25 Catchy Craft Business Names:

How to Write a Craft Business Plan in 7 Steps:

1. describe the purpose of your craft business..

The first step to writing your business plan is to describe the purpose of your craft business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a craft business:

Our mission at [Business Name] is to provide our customers with a unique and highly personalized crafting experience. We strive to make our products and services accessible to everyone, while being dedicated to furthering the craft movement and inspiring imagination through creativity. We will accomplish this by offering a wide selection of quality materials, knowledgeable staff, instructional classes, and friendly customer service.

2. Products & Services Offered by Your Craft Business.

The next step is to outline your products and services for your craft business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your craft business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your craft business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your craft business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

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4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a craft business?

• Computer and software
• Printing equipment and supplies
• Tools and materials for crafting (brush, cutter, glue, etc.)
• Marketing materials such as brochures and business cards
• Tax identification number or business license as required by local laws

5. Management & Organization of Your Craft Business.

The second part of your craft business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your craft business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Craft Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a craft business varies based on many different variables, but below are a few different types of startup costs for a craft business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your craft business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your craft business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your craft business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Craft Business Plans:

Why do you need a business plan for a craft business.

A business plan is important for any craft business, as it provides a clear roadmap for the future of your business, outlines goal-setting strategies, and helps you to identify potential sources of financing. It can also help you to gain insight into the marketplace and competitors, and provide you with an action plan for achieving your goals. Additionally, a well-constructed business plan can help you stay organized and focused throughout your business launch and growth stages.

Who should you ask for help with your craft business plan?

You may wish to consult with a business consultant or accountant, or you may consider seeking advice from an expert in the craft industry. Additionally, there are many resources online and in libraries to help guide you through creating a business plan for your craft business.

Can you write a craft business plan yourself?

Yes, it is possible to write a craft business plan yourself. You should start by researching the craft industry and market you plan to enter, determining a sales strategy, developing a budget and marketing plan, and outlining goals for the business. Additionally, you will need to devise a pricing strategy, determine your target audience and develop a system for tracking sales. After completing your research and creating an outline of the different elements of your business plan, you can begin writing it out in more detail. Depending on your resources and needs, it may be beneficial to consult with an accountant or attorney to help ensure accuracy and provide additional guidance.

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Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

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How to Start a Craft Business: A Step-by-Step Guide

Feeling crafty? It’s time to learn how to start a craft business. 

The world is full of artistic people who stitch, paint and print their way through life. Crafting is an excellent way to relax, unwind, and allow your creative side to shine through. 

What if we told you that crafting could be more than just a hobby?

According to Statista, the crafts market worldwide should reach a value of around $50.9 billion by 2024. With the online world now making it easier than ever to launch a craft store, there’s nothing stopping you from taking your crafting skills to the next level. 

Building an online craft business allows you to leverage your passion and turn it into something that makes money. Later, you can decide whether you want to work on it full-time or treat it as a side hustle that makes you extra income . 

So, how do you begin? Here’s a 9-step checklist to help you set up your own craft business. 

What Do I Need to Start a Craft Business?

1. identify a gap in the market.

The first step in starting a crafts business is deciding what you’re going to sell. Your decision of what to “craft” will partially depend on what you love making. However, it’s also important to research the market and see what could sell for your company. 

Examine your industry and ask yourself what kind of products you could offer through your brand to make customers more likely to buy from you. For instance, you might be great at making your own soap, but there are tons of other creators like you out there. How are you going to stand out? Maybe you could promise soap that’s completely organic and made with special ingredients?

Stock up on secondary market research from groups like  MarketResearch.com ,  Nielsen ,  and NPD  to get an idea of what’s trending. Some options might include:

• Custom art : People love commissioning pieces specially tailored to their needs. You could sell portraits of your customers or their pets or design art based on the unique things your clients love, like a certain book or video game. 
• Gift baskets : Many people struggle to find the perfect present for someone they care about. Why not remove the stress for your audience by giving them pre-made gift baskets specially designed for a certain occasion? 
• Skincare and beauty:  This is a big industry on its own. You can combine your love of beauty with your passion for creation by selling perfumes, soaps, bath bombs, and other popular indulgence items.
• Jewelry:  Make your own double pearl earrings. Or try your hand at a DIY necklace idea. Jewelry is always a no-brainer when it comes to easy crafts that sell. If you find that people love your designs, maybe you could start a jewelry business to turn your passion into profit.  

For extra inspiration, use  Google Trends  to find out what people are talking about in your industry. Alternatively, try asking your friends what they would love to buy. 

A lot of people are searching for a hat box these days, so this can be something you could offer through your craft store. 

2. Get to Know Your Audience Better

For those learning how to start a craft business, there’s good news: the crafts industry is a pretty diverse place. Selling in this industry means you can target various demographics and consumer segments based on the products you sell.

If you’re selling home essentials like key hooks and blanket covers, you may focus on older consumers who can afford to buy items for their homes. If you’re selling handmade friendship bracelets and bath bombs, you can probably target a slightly younger audience. 

To  identify your target audience , consider which people are most likely to fall in love with your products. If you’re starting a small craft business selling baby blankets, your primary customer may be new parents. However, you could also appeal to relatives who want to buy baby shower gifts. 

When researching your audience, think about their:

• Primary goals for buying your product
• Pressing pain points
• Likes and dislikes
• Age, gender, and location
• Behavior (where they browse online)

You can find extra data about customers on things like the  U.S. Census Bureau website ,  Nielsen , and even by checking the  Facebook Audience Insights  tools for better social media targeting. 

3. Create a Business Plan

When you’re learning how to start selling crafts online, you’re likely to get carried away with things like planning which products you’re going to sell and finding your target audience. Pump the breaks for a second, though – it’s important to do some planning first. 

Creating a craft business plan is a must-have. Think of it as the compass for your business, keeping you moving in the right direction, no matter what happens in your industry. 

Business plans remind you of your mission and vision statement . These documents are also extra useful when you’re trying to get business funding from a bank or investor. Here are some of the points your plan should include:

• An executive summary
• A description of what your craft business does
• Competitive and market analysis
• SWOT analysis 
• Marketing and sales plan
• Company management team
• Financial projections

If you’re still feeling uncertain about business plans when learning how to start a craft business, you can find some handy video tutorials online that can help you to write your business plan . Or just use a business plan template to get going. You can modify the information there to reflect the nature and vision of your business. 

4. Get Crafting

  Now it’s time to have some fun! 

In this step, you’re going to develop a plan for how you’re going to make your crafts. There are plenty of ways to jump into this process. For instance, you could explore some lessons or webinars online to teach you how to hone skills you already have. For instance, if you love making jewelry, you could learn how to make chains or design your own earrings. Try:

• Online workshops:  There are various sites out there,  like CreativeBug , where you can learn about knitting, crochet, sewing, quilting, and so much more. You may even find videos on YouTube and Facebook to help you. 
• Experimenting with ideas:  Make a list of the crafting you enjoy most and start there. You might like the idea of making your own soap, in which case it might be worth looking into the kind of ingredients you can buy online. If you’re thinking of starting a pottery business, invest in the tools you need to make amazing ceramics.
• Create the right space at home : If you’re learning how to start a craft business at home, then you’ll need to ensure that you’re properly prepared. Set up space where you can work on things like furniture upcycling or knitting blankets for your customers. Make sure that you have all the tools you need and plenty of storage space. 

5. Find a Manufacturer or Supplier

It’s difficult to scale a business when you’re the only person working on crafting your creations. As your business grows, there’s a good chance you’ll need some help to achieve  a work-life balance . Finding a manufacturer who can make your designs for you could make it easier for you to manage your business. 

You will probably also need to look for a supplier who can give you the raw materials you need to make your items. This could include paying for special types of wool or threads for your embroidery company. Think about:

• The quality of the crafts : While crafts with a handmade essence to them can be very endearing, you don’t want your creations to seem cheap. Investing in the right supplies will ensure you have a great impact on your audience. 
• Samples : If you’re thinking of working with a supplier long-term, get samples of the materials first to make sure they work for your business plan. Once you find supplies you like, consider drawing up contract terms that keep you fully stocked all year round. 
• Location : It’s a good idea to find someone as close to you as possible to supply and manufacture your goods. An overseas manufacturer might seem like a good way to save money, but this could also leave you waiting for long to get the items you need. Working with a local vendor could lead to faster shipping and better product quality. 

For beginners learning how to set up a craft business, it may be worth choosing a more affordable business model,  like dropshipping . This allows you to set up a craft store and list products on your site. When someone buys an item from your online store, a third-party supplier manages the fulfillment process – from packaging it to delivering it to the customer’s doorstep. You don’t keep an inventory, so you save on warehousing costs… and time. Dropshipping is an ideal business model for aspiring craft entrepreneurs who want to focus on marketing their business rather than worrying about inventory management .

6. Develop Your Brand

Branding is one of the most important things you can do for a craft business. Because people buy from companies they know, like, and trust, you need to present them with a brand that leaves a great lasting impression. Good branding involves everything from a memorable company name to an attractive logo, a meaningful color palette, and even a unique tone of voice. 

Creating a brand is easier than you’d think, thanks to some great online tools out there. For instance, Shopify offers a:

• Logo maker  
• Video maker
• Domain name generator
• Business name generator
• Slogan maker

These tools make building a memorable business as simple as possible. For instance, you just have to add relevant keywords, like “ceramics” or “knitting,” in the slogan maker, and it will generate a bunch of great slogans for you to consider. 

If you’re struggling to design everything on your own, you can also work with professionals from places like Fiverr, Upwork, and DesignCrowd. 

7. Fulfill Your Legal and Logistics Requirements

Part of your checklist for starting a craft business should include ensuring that everything in your company is set up correctly from a legal and logistics perspective. Just because you’re running a simple company selling handmade scarves doesn’t mean you don’t have to register your business , for instance. 

If you’re unsure how to set up a craft business legally, you can find plenty of information online or talk to a tax professional. Some points to consider include:

• Business registration, permits, and licenses
• SKUs for your product line
• Shipping costs and weight
• Shipping restrictions for your products
• Production overhead and costs
• Sales and business taxes
• Copyright, trademark, and patent requests

If you’re nervous that you might not have the paperwork you need, or you don’t know what certain documents mean, then you might need to talk to a professional just for peace of mind. 

8. Build Your Online Craft Store

Like creating your beloved crafts, designing an online store is a lot of fun. 

It’s your opportunity to combine various aspects, like your chosen brand colors, logo, and product pages, so that you have an entire storefront online. With an ecommerce platform like Shopify , creating a professional-looking website is a breeze – you could build an ecommerce site in under 30 minutes . 

If you’re keen to take advantage of the time and money-saving benefits of dropshipping, you can also access DSers – which is the AliExpress import app for Shopify. 

  You can work with an expert or designer on your website for some extra help. 

Some of the most important points to consider include:

• Inspiring and engaging product descriptions for your crafts
• Stunning pictures of your crafted items
• Landing pages that encourage people to build a relationship with your company
• Privacy policies, terms and conditions, return policy, and shipping policies
• Rates and zones for shipping
• Checkout pages and payment gateways.

The cool thing about Shopify is that you can adjust various elements, from your templates and themes to your resources and other tools, that can help you to make your store unique. 

9. Start Marketing Your Crafts

One of the more challenging aspects of learning how to start a craft business involves figuring out how to attract customers to your store. Marketing is a crucial component of selling crafts. The amount you spend on promotion will depend heavily on your budget and the strategies you use. 

For instance:

• Email marketing is an excellent way to develop relationships with your customers and encourage them to keep purchasing from your brand long-term. Make sure you segment your audience based on the crafts they like to keep messages relevant.
• Social media marketing is a great way to connect with your customers every day. You can show customers how you make your products through YouTube tutorials, snap pictures for Instagram, and design boards on Pinterest. 
• Influencer marketing is a great way to give your new brand a boost reputation-wise. You can work with well-known professionals in your space to improve your chances of finding the right customers. Influencers exist on every platform, from TikTok to Clubhouse to Facebook and more.

Online Craft Store Examples

Still need ideas on how to start a craft business? Here are some examples of successful craft brands to inspire you. 

1. Artisaire

A wonderful example of a crafts company, the Artisaire brand offers customers a wide selection of wax sealing stamps and supplies. You can get everything from customized stamps for your letters to stunning waxes here. This is a great example of how crafts companies can go niche with their choice of products and appeal to a great audience in the process. 

Artisaire makes all of its own products in a factory from Canada; the business is family-run by the Thomsens. 

2. The Honeybunch Shop

The Honeybunch shop created by Lisa Jolly is a business built entirely on passion. The founder, Lisa, believes in building stunning soaps and bath products with natural ingredients. Lisa started her career in retail and has launched other businesses before she began the Honeybunch Shop. 

According to Jolly, she didn’t know anything about making soaps when she first came up with the idea for her online store, but she quickly became an expert. 

3. Cedar and Sail  

The story of Cedar and Sail proves that anyone can learn how to start a craft business and pursue their passions in their spare time. The company came from an idea to create unique designs and accessories for homes using 3D printers and other modern techniques. The brand has a vast portfolio of small but attractive items to offer today, including candles, planters, and coasters. 

Cedar and Sail started as a simple project for someone who wanted to do more of what they loved in their spare time. Today, the company is a roaring success. 

Time to Get Crafty!

Hopefully, this article has shown you that learning how to start a craft business isn’t always as complicated as it seems. Once you’ve built an idea for your business on your passions, and you know there’s a market out there willing to buy your products, you’re already halfway there. 

Add the right sales tools into the mix, like an ecommerce website and a dropshipping service, and you’ll be running a successful crafts business in no time.

Summary: How to Start a Craft Business in 2021

• Find a market opportunity
• Get familiar with your audience 
• Write a business plan
• Make some crafts
• Find a manufacturer or supplier
• Build a brand
• Fulfill legal and logistics requirements
• Set up an online craft store
• Market your business

What types of crafts are you interested in selling? Let us know in the comments section below. 

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How to Start a Craft Business in 13 Steps

Back to All Business Ideas

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on January 13, 2022 Updated on July 2, 2024

Investment range

$1,050 - $6,600

Revenue potential

$40,000 - $200,000 p.a.

Time to build

0 – 3 months

Profit potential

$30,000 - $150,000 p.a.

Industry trend

Here are the most important considerations when you are starting your craft business:

• Find your niche — Decide on the type of crafts you want to make. Whether it’s jewelry, home decor, clothing, or something else, your niche will define your target market and brand. 
• Location — Determine where you will create your products. This might be a home studio, a rented space, or even a shared maker’s space, depending on your needs and budget.
• Equipment — You’ll need basic tools specific to your craft, such as sewing machines for textile crafts, kilns for pottery , or specialized tools for jewelry making. 
• Supplies — Source high-quality materials and reliable suppliers. This may involve local craft stores, wholesale suppliers, or even international sources if you need specialty items.
• Register your business — A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple. Form your business immediately using ZenBusiness LLC formation service or hire one of the best LLC services on the market.
• Legal business aspects — Register for taxes, open a business bank account, and get an EIN .
• Online presence — Take your business online and build a professional website. List your business on Google Business and Yelp to get recommendations and positive reviews. Also, consider selling your products on platforms such as Etsy .
• Packaging and shipping — Use sturdy, high-quality materials and consider eco-friendly options to appeal to environmentally conscious consumers. For shipping, research different carriers to find reliable services at competitive rates.

Interactive Checklist at your fingertips—begin your craft business today!

You May Also Wonder:

Can I really make money selling crafts?

Yes, you can make money selling crafts by creating unique products and selling them at a price higher than their cost. With minimal ongoing expenses beyond supplies, most of your revenue can be profit.

Where is the best place to sell my crafts online?

There are many online marketplaces where you can sell crafts and handmade items. Etsy is the most well-known, and it’s easy to set up your own Etsy store.

What homemade craft sells the most?

Handmade jewelry tends to sell very well. Other popular items include glass etchings, crocheted items, painted bottles, and leatherworking items.

How do I handle and manage returns for my craft business?

You need to set a returns policy that gives customers a limited time to return items for a refund, or you could opt to set a no-refund policy. If you allow returns, you’ll need to determine who will pay to ship the item back and how that will occur. 

What is the cheapest craft to make and sell?

Handmade fashion jewelry is relatively inexpensive to make, as are candles. Crocheted items are also fairly inexpensive to make, although crocheting can be time-consuming.

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a craft business has pros and cons that you should consider before deciding if it’s right for you.

• Do What You Love – The best jobs are the ones you enjoy
• Much Flexibility – Work at home on your own time
• High-Profit Margins – Sell your crafts for much more than the cost to make them
• Massive Competition – Over 4 million sellers on Etsy
• Time Consuming – Making, selling, and shipping crafts takes some time

Craft industry trends

Industry size and growth.

• Industry size and past growth – Retail sales of arts and crafts in the US reached $1.2 billion in 2021, a 15% increase compared to 2019.(( https://www.statista.com/statistics/247404/toy-sales-in-the-us-arts-and-crafts-segment/ ))  
• Growth forecast – Market analyst Statista values the global arts and crafts market at $35 billion in 2017. It is projected to approach $51 billion by 2024.(( https://www.statista.com/statistics/1017884/arts-and-crafts-market-value-forecast-worldwide/ )) 
• Number of businesses – Etsy statistics, which are reflective of the crafts industry size, show roughly 7.5 million sellers in 2021(( https://www.statista.com/statistics/409374/etsy-active-sellers/ )) and 7 out of 10 sell crafts and handmade items. 

Trends and challenges

Trends in the craft industry include:

• Pinterest predicts that the most popular selling items will be crafts including glass etching, crochet, bottle painting, and leatherworking.
• Upcycling, meaning repurposing old items, is also increasing in popularity.

Some challenges also face the industry including:

• People are staying at home more , leading to an increase in crafting as a business, thus increasing the competitive nature of the industry.
• Prices of craft supplies have increased, reducing the profit margins of craft sellers.

How much does it cost to start a craft business?

Startup costs for a craft business range from $1,000 to $6,500. The amount will vary depending on the types and amount of supplies you purchase. The high end of the range includes developing your own website. You can stay toward the low end by selling on marketplaces like Etsy .

You’ll need a handful of items to successfully launch your craft business. Here’s a list to get you started:

• Supplies and equipment to make your crafts
• Craft table
• Shelves to store supplies and inventory

How much can you earn from a craft business?

Your profit will depend on your cost to make the crafts and the price that you sell them for. This will assume that you can make items for $5 and sell them for $20, giving you a profit margin of 75%.

In your first year or two, you could sell 2,000 items in a year, bringing in $40,000 in annual revenue. This would mean $30,000 in profit, assuming that 75% margin. As your brand gains recognition, sales could climb to 10,000 units a year. With expected annual revenue of $200,000, you would make about $150,000.

What barriers to entry are there?

There are a few barriers to entry for a craft business. Your biggest challenges will be:

• You need to be able to make unique items that people will buy and make them at a low enough cost to make a profit.
• You will face huge competition from other craft sellers

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Step 2: hone your idea.

Now that you know what’s involved in starting a craft business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research craft businesses online to examine their products, price points, customer reviews, and what sells best. You’re looking for a market gap to fill. For instance, maybe the market is missing a leather goods craft store. 

You might consider targeting a niche market by specializing in a certain aspect of your industry such as ceramics.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine what products you’ll craft

Your products will be determined by what you’re able to make. Consider what variations you can make to those items and related items that you could make as well.

How much should you charge for crafts?

The prices you charge will depend on how much it costs to make them, but you also need to research what similar products are selling for. You should aim for a profit margin of at least 75%.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price point. Remember, the price you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

The target market will depend on the type of products you’re making. If you make trendy jewelry, for example, your target market will probably be younger women. You can most likely find them on sites like Instagram or TikTok.

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out a storefront. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Craft Business Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “craft” or “crafting”, boosts SEO
• Name should allow for expansion, for ex: “Crafty Creations Inc.” over “Woodworking Craft Shop”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Discover over 360 unique craft business name ideas here . If you want your business name to include specific keywords, you can also use our craft business name generator. Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

Powered by GoDaddy.com

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Craft Business Plan

Here are the key components of a business plan:

• Executive Summary: A brief overview of the entire business plan, summarizing key aspects and goals.
• Business Overview: Detailed information about the business, including its mission, vision, and the problem it solves.
• Product and Services: Clear description of what the business offers, emphasizing unique features and benefits.
• Market Analysis: Examination of the target market, including size, trends, and customer needs.
• Competitive Analysis: Evaluation of competitors, their strengths, weaknesses, and how your business differentiates itself.
• Sales and Marketing: Strategies for promoting and selling products or services, including target audience and channels.
• Management Team: Introduction to key individuals in the business, emphasizing their expertise and roles.
• Operations Plan: Details on how the business will operate, covering production, logistics, and day-to-day activities.
• Financial Plan: Overview of the business’s financial projections, including income statements, balance sheets, and cash flow forecasts.
• Appendix: Supplementary materials such as charts, graphs, and additional information supporting the business plan.

If you’ve never created a business plan yourself before, it can be an intimidating task. Consider hiring an experienced business plan writer to create a professional business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to craft businesses. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your craft business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Personal funding is your best bet since startup costs are low.

Step 8: Apply for Business Licenses and Permits

Starting a craft business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as, health license and permit from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level licenses and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your craft business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of any of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You can use industry-specific software, such as CraftyBase , CraftMaker Pro , or erplain , to manage your supply purchases, inventory, sales, and bookkeeping. 

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial. 

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Here are some powerful marketing strategies for your future business:

• Professional Branding — Your branding should showcase the creativity and artistry of your craft, reflected in your logo, packaging, and online aesthetic.
• Website & SEO — Develop an attractive, user-friendly website that highlights your products, shares your artistic journey, and facilitates online purchases, optimized for search terms related to your craft and handmade goods.
• Direct Outreach — Connect with local art and craft communities, participate in craft fairs, and engage with local businesses for collaboration or consignment opportunities.
• Social Media Engagement — Utilize platforms like Instagram, Pinterest, and Etsy to display your products, share the crafting process, and interact with your audience.
• Content Marketing — Manage a crafting blog to share insights into your creative process, crafting tips, and the stories behind your creations, along with DIY guides and tutorials to engage fellow craft enthusiasts.
• Customer Loyalty Programs — Implement a loyalty program that rewards repeat customers with discounts or early access to new products.
• Custom Order Promotions — Promote custom orders by providing a personalized experience or special pricing for bespoke commissions.
• Targeted Online Advertising — Employ online advertising on platforms like Facebook and Instagram to target potential customers interested in handmade and craft products.
• Email Marketing — Develop an email list to keep your customers updated on new products, upcoming events, and exclusive offers.
• Local Artist Showcases — Showcase collaborations with local artists at your events or through special edition products to enhance community involvement and broaden your product appeal.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your craft business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your craft business could be: 

• Unique handmade pottery for your collection
• On-trend handcrafted jewelry to accent your wardrobe
• Expertly made leather crafts

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a craft business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in crafting for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in crafts. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business. 

Step 12: Build Your Team

For an at-home craft business you probably will not need employees unless you want to hire people to help you make your items.

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Craft Business – Start Making Money!

Sometimes the best business ideas start as hobbies. If you’re a craftsperson for fun, why not do it for money? Millions of people are doing just that, selling on sites like Etsy, and collectively making over a billion dollars. Your talent is your best asset, so capitalize on it and turn it into a successful company. Now that you have knowledge in your tool belt, you’re ready to start crafting your entrepreneurial adventure!

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Craft Business Name
• Create a Craft Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Craft Business - Start Making Money!

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How to Start a Craft Business From Home (A Step-by-Step Guide)

In recent years, there has been a growing trend towards handmade and unique crafts. People are increasingly looking for one-of-a-kind items that they can’t find in stores. This has created a lucrative market for crafters who want to turn their hobby into a business.

Starting a craft business from home is not only a great way to earn extra income , but it also allows you to work on your own terms and pursue your passion. However, like any other business, starting a craft business requires careful planning and execution.

In this step-by-step guide, we’ll show you how to start a craft business from home, from identifying your niche and target market to setting up your workspace and marketing your products.

Table of Contents

How to start a craft business?

Step 1: identify your niche and target market.

The first step in starting a craft business is to identify your niche and target market. This involves figuring out what kind of crafts you want to make and who your ideal customers are. Some popular niches include jewelry making, woodworking, knitting, and sewing.

Once you’ve identified your niche, you’ll need to research your target market. This involves figuring out who your ideal customer is, what they’re looking for in a craft product, and where they’re likely to shop.

Step 2: Create a legal business entity (if needed).

You may not think you need to create a legal business entity , but in some cases, it can be really important – especially if you will file taxes as a sole proprietor or multi-owner LLC. If there’s any chance that someday your business is going to make a lot of money or if you’ll have employees, it’s important that you create a legal entity.

Your legal structure will determine how much personal liability you have for any lawsuits against the business, as well as what happens if someone sues or gets hurt.

Step 3: Get all your licenses and permits

Depending on where you live, you may need to get a business license or permit in order to legally operate. You also may need special licenses for the products that you sell. If your state requires occupational licenses, check your local government website for more information.

Step 4: Write a business plan.

A lot of craft businesses are started by people who work in the craft industry and have years of experience. So it’s important that you show the craft community that you understand what you’re doing by writing a business plan . This is an essential part of your funding application, so make sure it looks professional and explains exactly what services or products your business will offer.

Step 5: Set Up Your Workspace

Setting up your workspace is a crucial step in starting a craft business from home. It’s important to choose a dedicated space in your home that is quiet, private, and has good lighting. Once you have your space, you need to determine your equipment needs and make a list of all the equipment and tools you’ll need for your craft. Then, organize your supplies by keeping everything within arm’s reach and using storage containers, shelves, and drawers to keep your supplies organized and tidy.

Your workspace should be comfortable and conducive to creativity, so invest in a good quality chair, make sure you have good lighting, and keep the temperature comfortable with good ventilation. Depending on the type of craft you’re doing, there may be safety concerns, so make sure you have the necessary safety equipment and follow all safety guidelines when using your equipment.

Finally, make your workspace inspiring. Hang up pictures, artwork, or other decorations that inspire you and make you feel creative. Play music or podcasts that inspire you and keep you motivated. By setting up a workspace that is functional, organized, and inspiring, you can be productive and creative, and set the foundation for a successful craft business from home.

Step 6: Source Your Materials

Sourcing materials is an important step in starting a craft business from home. The quality of your materials will have a significant impact on the quality of your finished products, so it’s important to choose them carefully. To begin, you should identify potential suppliers for the materials you need and compare prices to ensure you’re getting the best value for your money. Be sure to factor in shipping costs if you’re ordering online, as they can add up quickly.

Buying in bulk can save you money in the long run, but only buy what you need and have space for. It’s also a good idea to check for discounts and promotions, as many suppliers offer these deals on bulk orders or for regular customers.

Consider sustainability when sourcing your materials. As a crafter, you have a responsibility to reduce waste and choose environmentally-friendly options. Look for suppliers that prioritize sustainability and consider using recycled materials or upcycling old items to create unique and eco-friendly products. By following these steps, you can source high-quality materials for your craft business while also being environmentally conscious.

Step 7: Create Your Products

With your workspace and materials in place, it’s time to start creating your products. This involves using your skills and creativity to produce high-quality crafts that will appeal to your target market. Don’t be afraid to experiment with different techniques and styles until you find what works best for you.

Step 8: Set Your Prices

Once you’ve created your products, it’s important to set your prices. This involves considering the cost of materials, the time it takes to create each product, and the market value of similar products. You’ll need to strike a balance between making a profit and ensuring your prices are competitive.

Step 9: Market Your Products

After you’ve created your products, it’s time to start marketing them. Marketing is an essential part of any business, and it’s especially important for craft businesses that operate from home. Without effective marketing, your products may never reach your target audience, and your business may struggle to grow. Here are some tips for marketing your craft products:

• Build an online presence: In today’s digital age, having an online presence is essential for any business. Create a website or online store to showcase your products, and consider using social media platforms such as Instagram, Facebook, and Pinterest to reach a wider audience.
• Use high-quality photos: When it comes to selling products online, high-quality photos are key. Invest in a good camera or hire a professional photographer to take photos of your products that show them in the best possible light.
• Offer promotions and discounts: Everyone loves a good deal. Consider offering promotions, discounts, or bundle deals to incentivize customers to purchase your products.
• Attend craft fairs and markets: Participating in craft fairs and markets is a great way to get your products in front of potential customers and network with other crafters.
• Build relationships with customers: Word-of-mouth marketing is one of the most powerful forms of advertising. Focus on building strong relationships with your customers by providing excellent customer service and following up with them after they’ve made a purchase.
• Collaborate with other businesses: Consider partnering with other businesses or influencers in your industry to expand your reach and gain new customers.

Marketing your craft business may take time and effort, but it’s essential for building a successful business . By taking the time to define your target market, build an online presence, and build relationships with your customers, you can create a loyal customer base and grow your business over time.

Step 10: Scale your business.

The most common way to expand your craft business is to hire more employees. However, if you want to grow faster than that, you can expand by offering new products or going into a totally different market. For example, if you make greeting cards and want to expand your business, you could start making invitations or selling your cards at a boutique.

If you make doormats, you could expand into selling towels. And if you make soap, you could expand into selling lotions or bath bombs. Another option would be to start up an eCommerce site and sell your products online.

The bottom line

Starting a craft business from home can be an exciting and fulfilling venture for anyone with a creative streak and an entrepreneurial spirit. However, it requires careful planning, hard work, and a willingness to learn and adapt to market trends and customer preferences.

To get started, it’s essential to identify your niche, research your market, and develop a unique product line that sets you apart from competitors. You also need to set up your workspace, acquire the necessary equipment and materials, and establish a strong online presence through social media and e-commerce platforms.

Once your business is up and running, it’s important to stay organized and track your finances, including expenses, revenues, and profits. You should also continually evaluate and improve your products, marketing strategies, and customer service to ensure long-term success and growth.

Starting a craft business from home can be a rewarding experience that allows you to turn your passion into a profitable venture. With the right approach, determination, and creativity, you can build a successful business that not only generates income but also brings joy and inspiration to others.

Hi, my name is Badr and I’m the creator of “Make Money For Sure”. Welcome to my blog! They say the best way to learn something is to teach it to others. And this is ultimately what this website is all about. I am more than happy to share with you the knowledge and experiences I have accumulated (and still accumulating) in my online journey, In the hope of somehow helping you in yours.

7 Easy Ways to Sell Crafts From Home

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How To Start a Craft Business (Step-by-Step Guide)

Whether you’re starting a jewelry business, scrunchie business, candle business, or any other type of crafty business, the basic steps are the same.  

This article shares the essential steps to starting a craft business and is a simple quick-start guide.  

Each step shares a brief explanation and then links to articles to help you dive into a subject further, if required.

Important Note

Chances are, you already have a good idea of what you’re going to sell.  

However, I’d encourage you to stay flexible as you work through these steps.  

If you want a successful craft business, it’s important to make products people want to buy.

Don’t get stuck in a pattern of doing what you’ve always done, working with what you already have, or making the products you want to make.  

You have to be willing to adapt. Don’t try to mould customers around your business; mould your business around your customers.

>> DOWNLOAD THE FREE PRINTABLE CHECKLIST HERE <<

Step 1 – Legal

By the time I got around to registering my handmade business I had already been using a name and printing it on marketing material and labels. At the registries office, I was informed that there was another business with the same name.  

Luckily, the business was also a sole proprietor and in a very different industry, so having the same name wasn’t going to cause brand confusion. I was able to add a noun to my business name (i.e. “accessories”) to register it and continue using my original business name as a DBA (doing business as).

If I hadn’t been so lucky, I would have had to spend money reprinting marketing material and product labels. If I had been further down the road, I may have also had to change my website domain, change my social media handles, redesign a logo, etc.

If you’re going to start a business make sure you run it properly and follow the required laws to avoid costly mistakes.

How to get setup legally

What you sell and where you sell it will determine which laws you must follow.  

You may need to:

• Register your business
• Obtain licences and permits
• Follow regulations (e.g. label laws, children’s products have strict safety regulations to follow, etc.)
• Obtain a tax ID

Laws for Selling Handmade will guide you through the steps.  

Step 2 – Target market

When I first started my handbag business, I didn’t even think about who my products were for, beyond making them for women.  

I made sales when I was at a craft show and the organizers put shoppers right in front of me, but had a hard time finding customer on my own.

When I started making a weekend bag, I stumbled upon a target market .  

I realized targeting a market based on a common interest, travel , made it much easier to build a product line, find my customers, and sell.  

My booth was busy, I had retailers asking about wholesale orders, sales came in after the event, and my business had a clear path.

You can alter your products and many other business elements; that’s the easy part.  

Finding customers is the hard part.

So start with a customer you know you can find, relate to, and build a business for.  

How to choose your target market

A small business will have an easier time finding customers and grabbing their attention when their products relate to a common interest.  

Demographics are important (you need to know if you’re marketing to a 20 year or a 50 year old), but psychographics offer more essential information.  

Consider targeting a market based on a psychographic such as:

When the only information you know about your target market is their age, gender, location, or other demographics, it’s almost impossible to narrow down which product features they’re interested in.  

On the other hand, if you know your target market is interested in yoga, you know they’ll be interested in yoga-themed or yoga-related products and marketing messages. You also know exactly where you can find those people; yoga studios, reading yoga magazines and blogs, watching yoga videos on YouTube, etc.  

These are all places a yoga-focused business can reach their target market.

Remember, the goal isn’t to find a common interest that aligns with the products you’re already making (or planning to make); that rarely works out. The goal is to find a common interest you can adapt your products to to align with.

Once you choose a target market based on a common interest/psychographic, then you can research and define demographics and how you’ll adapt your business to your target customer.

Here’s more information on how to find your target market:  How To Find the Correct Target Market for your Craft Business

STEP 3 – USP (unique selling position)

I sold at my first craft show in 2005. There were only a handful of craft shows in my city, so it was almost a guarantee I’d be accepted if I applied. And Etsy had just launched, so competition was low. I also found it quite easy to get featured in local newspapers and even bigger magazines. 

As the years went on, I was no longer just one of a few handmade bag vendors in my city. I was often competing with dozens of bag vendors when applying to craft shows or trying to get shoppers’ attention.  

I was forced to differentiate myself from the competition, which came when I refined my target market and developed my signature style.

There are millions of handmade businesses today, so if you don’t have a way to stand out, your products will get lost in the crowd and you’ll have a hard time attracting shoppers, let alone making sales.  

A USP (unique selling position) answers the consumer question “why should I buy from you?” .

If you can’t figure out how your business and its products benefit your target market more than your competitors, consumers won’t be able to either.  

How to find your USP

There are many ways a business can stand out. For a truly unique angle, you’ll likely find you need to combine several of the elements listed below.

Market research

Before you can determine how you’ll stand out, you need to know what you must stand out from. Conduct market research to get a better understanding of who your competitors are, what they’re selling, areas of the market they’re missing, what they do well, and what you can do better.  

Target market

Sometimes choosing the right target market is enough to make your entire business stand out. For example, while most candle makers are targeting “women” or “home owners”, a candle business that targets people interested in astrology with their zodiac-themed candles will have an easy time standing out.  

Consider if you can choose a unique target market for your industry/product, or perhaps there’s a segment of your target market you can build your business for.

Signature Style

A signature style is a style/look/aesthetic that’s repeated throughout your products. When you focus all of your products on a specific color palette, material, design, or other defining element, your business becomes known for that style. Your products become recognizable wihtout your logo or name attached to them and consumers know to come to you for that specific style.

Check out:  How to Develop a Signature Style for your Handmade Business

Finding a niche is about focusing your business on something specific. There are a few ways you can do that.  

• Target market segment – there may be an opportunity for you to find a niche within your target market. For example, a business targeting moms can find a segment based on different demographics, such as: moms of twins, moms of newborns, moms to daughters, etc.
• Product subcategory – focusing on a specific type of product within your product category can help your business become the go-to for consumers. For example, a candle business may pivot into diffuser blends, incense, or simmering pot potpourris.
• Product feature – repeating a specific product feature throughout your product line can also help a business find a niche and stand out. For example, a jewelry business may exclusively create pieces using turquoise stones. They would become knows as THE vendor for turquoise jewelry.

Sometimes the product itself isn’t that different from a competitors, but the branding is what positions it as different.  

Take Pepsi and Coke. They’re very similar products but Pepsi’s brand evokes a young, hip vibe (often hiring young celebrities for their commercials) while Coke is more classic and family-focused.

A soap business may be selling regular bars of soap but its colourful and humorous branding can make it stand out from bars of soap with basic and predictable branding.

There may be a benefit your products or business provide that most of your competitors don’t. It doesn’t have to be “unique”, as in no one else is doing it, but rather “different” from the norm.  

For example, a soap business may focus on using the best moisturizing ingredients to offer the benefit of moisturizing soaps. Jewelry may have the added benefit of reminding people of a place they’ve travelled (e.g. travel-themed charms and pendants). A business may set up a “one for one” program by donating donate a winter hat to a local charity every time they sell a winter hat.

STEP 4 – Product Line

At my first craft show I made flannel pajama bottoms with matching rice heating bags, which were packaged in a matching drawstring bag. My business partner also thought it would be fun to create pillows out of vintage t-shirts, so we had a few of those, as well as his photography prints.  

We thought the product variety would help draw more shoppers to our table. We did attract a wide range of shoppers but it didn’t necesarily help sales. It also made it impossible to pin down who our typical customer was and what we should make more of for them.  

We never sold more than one item at a time. Someone buying photography for their home wasn’t also shopping for pajamas and heating bags.

Our selection eventually morphed into handbags, but in the beginning, no two items were the same. Nothing matched or worked together, they were just a bunch of bags showing off how creative we could be with designs and fabric combinations.  

Once we focused on the weekend bag and created other items that worked with that weekend bag, our units per transaction increased, as did our repeat customers.

You need a cohesive product line to build a professional business, increase sales, and boost profits.

There are also studies that tell us, a lot of variation can help attract shoppers, but it harms sales (you can read more about one study here ).

How to plan a product line

Always keep your shoppers top of mind when making decisions about what to create.  

• Limit options – try following this 3 – 5 technique when building out your product line.
• Ladder system – consider following this ladder technique when planning your product line to ensure every piece works together.
• Add-ons – consumers tend to shop in one product category at a time (e.g. shop for home decor or fashion accessories, but not both). So consider items your customers might want to add to an order. For example, someone buy pajama bottoms might also want a matching top, a sleep mask, slippers, etc. They’re unlikely to be shopping for pajamas and photography at the same time. Take your main items and consider add-on items that work with them. Read more about add-on items here:  How to Use Add-Ons to Sell More Handmade
• Up-sells – offering bigger, better versions of your products is another good way to appeal to different segments of your target market and different budgets. For example, silk pajamas would be a better version of flannel pajamas. Read more about up-sell items here:  How to Use Up-Selling to Sell More Handmade
• Down-sells – a down-sell item may be beneficial if you sell higher-priced items. It acts as an introductory item that requires less risk for new customers. Read more about down-selling here:  How & Why a Craft Business Should Down-Sell

STEP 5 – Brand

My handmade business didn’t start with a lot of branding…it didn’t even start with a logo. It was simply my business name in a script font. But that font fit the feeling I was going for with my bags.

Branding can get as complicated and as expensive as you like. But in my opinion, it’s often not worth it to spend a lot of money on it to start because a brand will develop as your business does.

However, you should have a clear idea of what you want your brand to be so you start to build cohesion throughout your business.

How to develop your brand

Think about the way you might label someone based on the way they dress, talk, and act. Someone doesn’t need to walk around saying “I’m sporty” to give off the vibe of being sporty. They might dress in a sporty way, play sports, watch sports, talk about sports, use sports jargon, etc.

A brand works in a similar way. It’s the way someone might describe your business based on the way it consistenly looks/talks/acts.

Start with the information you’ve defined in the previous steps and who you want to serve, what you plan to sell them, and why (what makes your business unique?). Keep that in mind as you choose one or two words to describe the feeling you want your business and products to evoke, the vibe you want to create, or the style you want to exude. For example, beachy & casual.

Once you have your brand word(s), consider the ways you can communicate it through:

• Visuals – colors, icons, fonts, photography style, logo, etc.
• Voice – what’s the style of writing or speaking, tone of voice, keywords, etc. that will help communicate your brand’s vibe or feeling?
• Behaviour – the way you act at a craft show, communicate with customers, process orders, etc. will also give off a vibe or feeling. Will you act formal and professional at craft shows or be more laidback and casual based on your brand?

STEP 6 – Pricing

In the beginning, I followed the popular pricing formula:

Production Costs x 2 = Wholesale Price

Wholesale Price x 2 = Retail Price

I didn’t track my expenses outside of materials…I didn’t even track my hours.  

When I finally took the time to calculate profits after a big craft show (which I thought I had done really well at, based on how many sales I made), I realized I was barely profiting.

If you’re not profiting, you won’t have a business for long.  

You’re simply spending money to earn it back when you make a sale.  

You need to earn more money back than you spend on materials, packaging, marketing, craft show and Etsy fees, etc. so you have money to put back into your business to grow sales above and beyond what they were last month.  

Profits also ensure you’re getting paid for more than just the hours you work and you get to be a business owner, not an employee.

How to set your prices and profit

It can be hard to set prices when you don’t know what all your expenses are and how many hours you’ll work. These two guides will help.

• Use this pricing formula and estimate your costs:  The Right Way to Price a Handmade Product (Step-by-Step Formula)
• Reverse engineer your prices by working with your competitor’s prices:  How To Keep your Product’s Price Competitive

If you set a price and then realize, after a few months of operation, you’re not covering all your costs or profiting as much as you’d like, don’t be afraid to adjust your prices.  

STEP 7 – Sales channel(s)

I started selling handmade through craft shows. The problem with craft shows being my only sales channel was I couldn’t make sales outside of event hours.  

I eventually set up an online shop, and started selling my products wholesale to retailers and through consignment stores.  

Every month I had revenue flowing in, whether I was selling at a craft show or not.  

When you’re running a business, you need to be prepared for ebbs and flows.

A craft show may have low attendance, Google or Etsy may change their algorithm, causing your shop’s traffic to drop in half, a retailer may decide not to re-order, etc.

When sales from one channel dip, the other channels/platforms can help keep you afloat.  

How to choose your sales channels

The most popular ways to sell handmade are:

• Craft shows & markets
• Online marketplaces such as Etsy or Amazon Handmade
• Wholesale to retailers
• Consignment through retailers

>> Here are several places to sell your products online: Where to Sell Handmade Online (Besides Etsy)

>> Here are ways to sell your products locally: Where to Sell Handmade Crafts Locally (Top 20 Places; Ones you Haven’t Thought of)

Weigh the pros and cons of each and consider what’s right for your business.

Not every business has the profit margins to sell wholesale and not every product is right for craft shows. Some people aren’t tech savvy and prefer to interact with people face to face while others prefer to keep their business online.

You can start with one sales channel to ensure you don’t get overwhelmed, but it will be important to add one or two more so you have multiple ways for money to flow to you.

For each sales channel you choose, there will be subsequent steps to take.  

For example, if you decide to build a website, you’ll need to:

• Register a domain name
• Set up hosting
• Choose a web builder
• Build the website

Once you choose your sales channel(s), research the steps you’ll need to take to get set up on each.

STEP 8 – Marketing Plan

If I could, I would create all day, every day. But I learned quickly; if you build it, they will not come. You can’t ignore marketing.

If you don’t time to market the products you make, you’ll never get them in front of enough people to make a sale.  

Just as you need multiple sales channels to ensure a steady flow of sales, you need to use multiple marketing channels to send a steady flow of shoppers to those sales channels.  

You also have to consider how many marketing messages your potential customers are exposed to each day; a lot. So simply posting a picture of your latest product isn’t enough to grab attention.  

You’ll end up wasting a lot of time and money if you simply wing it when it comes to marketing. You need a plan for the different ways you’ll reach your target market and how you’ll grab their attention.

How to plan marketing

Which sales channels you use will dictate your marketing methods.  

For example, if you mainly sell online, focusing on SEO, building your newsletter list, blogging, paid ads, etc. will be appropriate marketing channels/methods.

When selling at craft shows, you’ll want to focus on reaching your target market locally. Sending press releases to local newspapers, handing out marketing material at each event, attending networking events, etc. can drive more people to your craft show booth.

Below are some of the common ways to market a craft business:

• SEO (search engine optimization)
• Press releases
• Social media
• Email marketing (i.e. newsletter)
• Craft shows
• Marketing materials
• Guerilla marketing
• Cold emailing
• Networking events

Determine which channels and methods will work best for your business based on the sales channels you plan to use and your skills/strengths.

It will also be important to create strong marketing messages.  

“Here’s a link to my latest Etsy listing” isn’t enough to capture someone’s attention on social media.  

Think about your target customer and the types of images they’re attracted to and the key messages that will get their attention.  

The goal isn’t to make a sale with your marketing. It’s to leave a breadcrumb that piques your target market’s attention and leads them to a sales channel.

STEP 9 – Presentation

I studied visual communication in college and worked as a visual merchandiser for multi-million dollar retailers.  

So you would think I would have known better than to show up to my first craft show with a wrinkly tablecloth and no plan for how to display my products. And to put more thought into the background and lighting when taking photos for online (they were taken in my kitchen with overhead florescent lighting and with my brown speckled laminate countertop as the background).

What surrounds your products is just as important as the products themselves.  

That’s why different retailers can charge different prices for the same item. Higher-end fixtures, props, store finishes, and even the part of town a store is in can make an item seem more expensive to the shopper.

How you photograph and/or display your products will determine how much shoppers think your products should cost and whether or not they’re willing to pay their price.

How to present your products  

The sales and marketing channels you plan to use will determine which visual elements you’ll need.  

When selling and marketing online, you’ll need:

• Product photography
• Banner images (e.g. website home page image, Etsy banner, Facebook or YouTube banner, etc.)
• Social media images

When selling at craft shows you’ll need to plan your craft show display, which will require items such as:

• Display fixtures

Consider how you’ll present your products based on the marketing and sales channels you’ll plan to use. Keep their presentation on-brand and in line with the prices you’ll charge.

STEP 10 – Goal Setting & Tracking

When I worked for major retailers each store had a sales goal to hit each month. That goal was then broken down by weeks, days, and even how much they expected each sales associate to sell per shift.  

Every morning, before a store would open, there would be a sales goal meeting so everyone knew the number they wanted to hit. As the visual merchandiser I was responsible for moving products around to ensure the items that were selling best, company wide, were in the most dominant spots so shoppers wouldn’t miss them.

If you want a business (and not a hobby), you should set goals, plan the projects that will help you reach those goals, track important numbers, and analyze your numbers at the end of each month to see where you can make improvements.  

How to set goals and track numbers

There are so many goals you can set and numbers you can track, but most of them end up being distractions.  

Here are the numbers I suggest you set, track, and calculate each month:

How much money do you want to make each month? Once you know that, plan the projects that will help get you there. For example, if you want to sell $500 worth of product in July, you may need to sell at a craft show to help you reach that goal. “Sell at a craft show in July” is a project. Researching craft shows, applying, creating inventory, etc. are the tasks that will help you complete the project.  

Conversion rates

Conversion rate is calculated by taking the number of people who take a desired action by the number of people who do and don’t take that action (the turn that number into a percentage).

A desired action may be:

• Buying an item
• Clicking on a link in a social media post
• Opening your newsletter
• Completing an order once an item is in their cart

For example, if 200 people visit my online shop and 5 of those people buy, I would divide 5 by 200 to get more online shop’s conversion rate.  

5 divided by 200 = 0.025 x 100 = 2.5% conversion rate

Calculating conversion rates will help you determine how well your marketing and sales tactics are working. They can point out leaks in your funnel and where you’re losing people.  

For example, if you send out a newsletter and very few people open it, that tells you you need to write better subject lines. On the other hand, if you have a good open rate but a low click-through rate, you need to work on your call to action. If your newsletter has a high unsubscribe rate, that tells you you need to work on the content of your newsletter and provide more value.  

Calculating the conversion rate of each step you want subscribers to take helps you find where you need to make improvements.

Keep track of numbers that allow you to calculate conversion rates for your marketing and sales channels.  

Read more here:  How To Use Conversion Rates to Increase Sales

Return on investment (ROI)

ROI is measured by dividing the profits an investment produced, by the cost of the investment.

For example, if you spend $20 on an ad and only sell one $20 item because of that ad, you did not make a return on your investment; you lost money.  

Track how much time and money you spend on the tasks that should help you make sales. Then track how many sales you make because of that task and the profits from those sales.  

If you’re constantly spending time on Facebook to promote your products, you want to be sure that time is helping you produce sales. Then you want to be sure it’s producing enough sales to cover the time and money you spend on Facebook.

Return on investment will show you where to spend more of your time and money and where to spend less of it.  

>> Download the free printable checklist here <<

As you complete the steps outlined in this article, you’re creating a detailed plan for your business. Use this information as you make decisions to ensure you stay on the right track.

Finally understand why your hard work isn't resulting in more sales

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Hey, I’m Erin 🙂 I write about small business and craft show techniques I’ve learned from being a small business owner for almost 2 decades, selling at dozens of craft shows, and earning a diploma in Visual Communication Design. I hope you find my advice helpful!

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How To Make A Craft Business Plan

Jackie - Marketing and Heart

Do you want to start a craft business? Are you an artist looking to sell your work? If so, you need a business plan! A craft business plan will help you map out your goals and strategies for your new venture. It will also help you track your progress and ensure that you are on the right track. In this blog post, we will teach you how to make a craft business plan that will help you succeed!

Note: This page contains affiliate links, which means that if you click a link and make a purchase, I may receive a small commission at no extra cost to you. I appreciate your support! And you can read my full disclaimer here .

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Why do you need a craft business plan?

A craft business plan is essential for any handmade business owner. It will help you map out your goals, strategies, and track your progress. Without it, it can be easy to get off track and not achieve your goals. In fact, coming up with this plan ensures you take your mind from hobbyist to entrepreneur.

Now that we’ve answered the question of “why,” let’s get into the process of how to make a craft business plan.

The first step is to determine your goals.

What do you want to achieve with your craft business? Do you want to earn a full-time income? Do you want to supplement your current income? Do you want to be able to quit your day job? Determine what your goals are and write them down.

The second step is to research your craft business idea.

Is there a market for what you want to sell? Who are your potential customers? What do they want and need? How much are they willing to pay? What are your competitors offering? Answering these questions will help you fine-tune your craft business idea and make sure it is viable.

What should be included in your craft business plan?

Your business name and logo. Spend some time coming up with a unique name for your business. Your name should reflect who you’re trying to attract.

Don’t try to rush this part because you’ll be stuck with it for the life of your business, unless you decide to re-brand in the future. And if you do re-brand, that’s a whole other story so try to choose wisely the first time.

Once you have a name, you can create a logo to go with it.

Are you good with graphic design or using Canva? If not, are you willing to learn? If you find a nice font you like, it’s really easy to create your own in Canva and there isn’t too much of a learning curve.

If you’d rather not do it yourself then you’ll want to hire this out. There are lots of places to find graphic designers, including:

• Creative Market
• Design Crowd
• Creative Fabrica

A description of your craft business

. What do you do? What do you make? How is it different than what your competitors are offering? Try to come up with the “elevator pitch” version to describe your business.

An “elevator pitch” is a short description of your business that you can give to someone in the time it would take to ride an elevator. This is useful for when you meet someone and they ask what you do. You don’t want to go into too much detail, but you want to be able to capture their attention and interest so they’ll want to learn more.

This is also a great time to think about what your slogan might be. For my own handmade business, The Wicked Griffin, my slogan is:

“Transforming folklore & myth into wearable art”

Who will be your target market?

So you have a pretty amazing product or craft. But who do you make it for? Who’s life would be better because of your product? This is where target market comes in.

A “target market” is a group of people who you think would be interested in your product or service. When you’re starting out, it’s helpful to focus on a smaller target market so you can more easily reach them. You can always expand later.

For example, my target market are people who are interested in Paganism and Elder Futhark Runes. I chose this group because I knew they would be interested in the kind of jewelry I make which is inspired by these things.

For some people, this might be the hardest part of running a business. But I must say, it’s the most important. Without a well-defined target market, you simply won’t grow. When you try to sell to everybody, you really sell to nobody.

What will be your marketing strategy?

Now that you know who your target market is, it’s time to start thinking about how you’re going to reach them. There are a lot of options here and the best way to decide is by learning about all of them and what works best for you.

In today’s world, you can find your target market everywhere. The best strategy is to pick 1–3 of your favorites and go all out with them.

Some marketing ideas include:

• Social media be it on instagram, Facebook or TikTok
• Email marketing after you’ve built up an email list (my personal favorite)
• Blogging (the best long term audience-building marketing strategy over anything!)
• Facebook and Instagram ads
• Pinterest and Pinterest ads (Pinterest is NOT social media, it’s a search engine!)

Totally not a shameless-self-plug, but if you’re interested in email marketing or content for blogging for your handmade craft business, I’ve got courses for both in my membership ! You can try it out for only $7.

What will be in your first craft product line?

Do you have at least 10 different products that you can open your shop with? Or better yet, 10 products that could be considered a collection?

A collection is a group of products that go together. They don’t have to be the same product, but they should compliment each other in some way. For example, my first collection was my Elder Futhark Rune Set which included a necklace, earrings, and bracelet in different variations.

If you’re not quite there yet, that’s okay! You can start with a smaller craft line until you build up your inventory. The important thing is to have a plan for what you want to make and how you’re going to make it.

The reason why you want to open your shop with a minimum of 10 products is that you want to take advantage of the hype of something new. You don’t want to be driving hard-earned traffic to an empty shop! First impressions are everything.

Also, super golden hot and spicy tip!

Brand new Etsy shops get an extra-special temporary boost in the search algorithm. You want to make sure all your ducks are in a row at this time to make the most of the exposure. Any sale you make during this period will help your shop rank for real in the future.

Don’t let this scare you! Please check out the rest of my blog for more Etsy tips & tricks to get you the best possible advantage for growing your shop, without wasting time or money figuring it all out on your own

Do you know what your pricing strategy will be?

Pricing is always a hot topic and there are a lot of ways to go about it. Here are some popular pricing strategies for craft businesses:

Cost plus pricing: This is where you take your costs and then add a markup. For example, if it cost you $20 to make a product and you want to make a 40% profit, you would price it at $28. This is how I price my handmade jewelry.

Value based pricing: This is where you price your products based on the perceived value to the customer. For example, if you make a luxury item that is very well made, you can charge a higher price than something that is mass produced.

Competition based pricing: This is where you price your products based on what your competitors are charging. This is a common strategy for businesses that sell similar products.

Premium pricing: This is where you charge a high price for your product because it is unique or in high demand. For example, if you make a limited edition item, you can charge more than if you made a mass produced item.

No matter what pricing strategy you choose, make sure that you are making a profit! A craft business is not sustainable if you are not making a profit.

Please DO NOT be like 75% of Etsy sellers charging rock bottom prices just to make a sale. It will not work in the long-run.

Have you found a wholesalers to purchase materials from?

If you are going to be selling physical products, you need to find a wholesaler that you can purchase materials from. A wholesaler is a company that sells products in bulk at a discounted price. You can usually find better prices from wholesalers than you can from retail stores.

There are many online wholesalers that sell craft supplies. You can also find wholesalers at craft fairs and trade shows.

Make sure that you compare prices from different wholesalers before you make a purchase. You want to make sure that you are getting the best possible price for your materials.

And no, sales at Hobby Lobby & Michaels don’t count. Sorry!

What is your craft production process and can you make it quicker?

You need to have a clear understanding of your craft production process. This includes everything from making product to shipping orders. The more efficient your process is, the more profit you will make.

Here are some questions to ask yourself:

How long does it take you to make a product?

Do you have a system for tracking orders and payments?

Can you outsource any part of the production process?

What are your shipping costs and can you find a cheaper shipping method?

How will you be doing bookkeeping?

You need to have a system for tracking your income and expenses. This is called bookkeeping. There are many software programs that can help you with this. Quickbooks is a popular bookkeeping program for small businesses.

You can also hire a bookkeeper to do this for you. This is a good option if you don’t have the time or knowledge to do it yourself.

I personally use a digital ledger . If you want more control than Quickbooks and something that will save you the time it takes to write on paper, this is perfect for you.

After a major glitch in my bookkeeping in 2015, I lost the whole years worth of info and had to figure it all out as best I could. That was a nightmare I never want to experience again.

Where will you be selling your crafts?

There are many places where you can sell your crafts. You can sell online, at craft fairs, and in brick-and-mortar stores.

You need to decide which selling method is right for you. Each selling method has its own set of pros and cons.

For example, selling online is a great way to reach a global audience. However, it takes time to build up an online presence.

Selling at craft fairs is a great way to meet your customers face-to-face. However, craft fairs can be expensive and time-consuming.

Selling consignment in local stores is a great way to get your products in front of new customers. However, you will have less control over how your product is displayed.

You need to decide which selling method is right for you and your craft business.

Do you have any goals for your handmade business?

Some goals that you may want to consider for your craft business include:

-Increasing craft sales by XX% within the first year

-Creating a brand identity for your craft business

-Building a customer base

-Creating and selling craft tutorials

– Adding 100 new email subscribers to your list in your first year

These are just a few examples of goals that you may want to set for your craft business.

And there you have it! I hope this post helps you to get started in creating your own craft business plan.

ow To Write Compelling Etsy Product Descriptions That Sell with ChatGPT Prompts

What To Do When You Have Slow Sales On Etsy

Step By Step How to Use ChatGPT for SEO Optimization on Your Etsy Shop

How to Use ChatGPT for Etsy: The Ultimate Guide

Expert Tips on Using Pinterest to Boost Etsy Sales

Hey there, I’m Jackie! Since 2011, I’ve been running my own handmade business, The Wicked Griffin .

Now I want to share everything I know to help other handmade businesses build the business of their dreams.

>> Access The Workshop

Written by Jackie - Marketing and Heart

I Help Your Handmade or Etsy Business Grow To Full Time Income. I share with you all that I've learned about handmade seller success over the last 12+ years.

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20+ Easy Craft Business Ideas You Can Start From Home

These craft business ideas go beyond basic lists of different types of crafts to make and sell or different materials you could work with.

If you're a serious crafter, you're probably well beyond those types of lists. You already know which handmade crafts you can make artfully and with expertise.

The list is full of real handmade business ideas!

We'll look at  20+ ways to take craft skills you already have and turn them into a great business .

I'll start with some traditional ways to sell crafts, but stay with me. The list of craft business ideas gets more interesting and creative as you get farther into it.

20+ Craft Business Ideas

We'll look at each option in more detail, but let's get started with an overview of the many easy ways you can start a DIY business from home.

Make and sell crafts with one of these craft business ideas:

Sell Your Handmade Items:

• at craft shows
• at home parties
• on Etsy or other marketplaces
• on your own site
• on social media sites
• sell craft supplies
• open your own shop
• sell crafts on consignment
• at studio tours
• wholesale your handmade products
• sell custom handmade items
• offer a service based on your creative talent
• create private label products

Sell Digital Products:

• design craft patterns or projects to sell
• create a membership website
• sell printable products

Sell Your Craft-Based Knowledge:

• teach your craft in person
• teach your craft online
• write craft books

Expand Your Business With Trend Reports and New Markets:

• expand beyond the handmade niche
• use trends reports to find the most profitable crafts to sell

I earn a commission for purchases made through links on this page. To learn more, please see my disclosure .

Sell Your Handmade Items

Selling a physical handmade product is the most traditional and familiar way to sell crafts. It's what most people think of first when they consider starting a home craft business, so it's a good place to begin exploring your options.

Here are several craft business ideas that make sense for people who want to sell physical handmade items.

1. Sell at Craft Shows

I'm sure you've already thought about selling at craft fairs and markets. This craft business idea isn't exactly shocking. But it is an extremely popular way to sell handmade items.

Since selling at craft shows is such a popular option, I have many pages dedicated to this topic.

If you want to learn more about selling at craft shows, here's where to start:

1000+ Craft Booth Photos : I'm always adding new craft booth photos to this site. At last count, I had over 1000 original pictures. If you want to check out display booth photos for inspiration for designing your own booth, this page is the place to start.

Craft Tent Buying Guide : Buying a craft tent can be a bit overwhelming. This page has everything you need to know about choosing and buying the right tent for your craft booth.

General Craft Show Tips : Here's where you'll discover how to find good shows in your area, how to apply to juried shows, and how to make the most of your day at a craft show.

2. Sell at Home Parties

Maybe you've attended a friend's home sales party, where products are demonstrated in a fun, social environment. Maybe you've even hosted a party or two yourself.

Selling at home parties can be one of the easiest ways to test your craft business ideas without a lot of risk.

The cost for doing a home party, compared to other craft business ideas, is quite low. Plus, most guests will buy something at a sales party.

The downside to this business model is that it can be difficult to sustain over time unless you get creative. That is, once all of your friends have hosted a party, you may have difficulty booking more parties.

Selling at home parties can, however, be an excellent, low-cost, low-risk way to get your business started.

Learn More: How to Sell Crafts at Home Parties

3. Sell Crafts on Etsy or Other Marketplaces

Selling on Etsy is another craft business idea you've probably considered if you're a creative person — and with good reason!

Etsy makes it very easy for you to set up your shop. You can get started quickly and without a lot of help.

It is a well-known company that shoppers trust. This trust can make customers more comfortable sharing their payment information on these sites than they might be on your own website.

You will have to work hard to get customers to your Etsy store .

Popular craft marketplaces do have a lot of potential customers visiting the site. However, there are plenty of sellers working for the attention of those customers, so you'll need to learn how to stand out from the competition if you decide to sell your crafts on Etsy.

4. Sell Crafts on Your Own Site

Selling crafts on your own online shop requires more work up-front compared to selling on Etsy, but it gives you far more control.

When you rely heavily on a third party marketplace for your business, you have limited control and ownership over that business. Customers are linked to that marketplace, not your shop. That fact alone can make establishing your own site worthwhile.

You will need to put a lot of work into promoting your own site. But when you own the site you're promoting, you are building your own business, not someone else's.

Learn More: How to Sell Your Crafts Online

5. Sell Crafts on Social Media Sites

Some people launch a business online through social media only. They don't have their own website, and they don't have a shop in a craft marketplace.

Sometimes, for example, a great Facebook page is all you need to launch a small craft business.

A friend of mine who makes very cute handmade children's capes launched her business on Facebook. She simply took a few great photos, created a Facebook business page, and invited her friends to follow her.

Shortly after she launched her page, we were talking about other ways to promote her business. She said she was already so busy with orders through her Facebook page, she couldn't look at other promotional options. She could barely keep up with the demand from her Facebook page.

I'm not talking about someone who is a social media maven with thousands of followers. This is a regular person with about 200 Facebook friends. She is simply posting cute pictures of her products, and of her kids wearing the capes, and she's extremely busy with orders.

Of course, the danger with building your entire business around a social media platform is the same as selling through a craft marketplace. You don't have full control over your social media account.

That doesn't mean you shouldn't consider launching your business on social media. It does mean you should be aware of how much control another company has over the success of your business.

Learn More: How to Promote Your Business with Social Media

6. Sell Craft Supplies

Instead of selling finished goods to customers, consider selling craft supplies. You either sell supplies you purchase from a wholesaler, or you could create your own handmade items that are used in part of the crafting process.

For example, if you have a flair for jewelry making, instead of selling finished jewelry, you could sell handmade beads for other designers to include in their own creations. Alternatively, you could sell silicone molds you make using your own original designs for other crafters to use in their own projects.

7. Open Your Own Shop

Have you always dreamed of having your own retail store?

I know of a few craft artists who have had success selling items in their own retail shops. Often they work with other local artisans and sell those items on a consignment or wholesale basis in addition to selling their own crafts.

Opening your own shop represents a much bigger commitment in terms of both time and money compared with most of the other craft business ideas on this page. Do be sure to do thorough research before you take on this degree of risk.

If you're in the United States, the Small Business Administration (SBA) , which is a government agency that supports entrepreneurs, is a good place to start your research.

If you're outside of the US, look for a business development office in your area, or your local Chamber of Commerce to start your research.

8. Sell Crafts on Consignment

Consigning your handmade products to independently owned stores can be a great way to build sales and promote your business.

You'll need to ensure you price your crafts profitably for this business model to work.

Learn More: Craft Consignment Selling

9. Wholesale Your Handmade Products

Focusing on building business relationships with wholesale customers can bring your business to a whole new level. Again, you'll need a  good pricing  method for this strategy to be successful.

You'll also need an efficient production process to make the larger volume of items needed to make selling wholesale profitable for you.

Production work — creating a specific range of products that you create over and over — scales better than selling one of a kind items.

Selling a defined line of products means:

• You don't have to factor a lot of design time into your costs.
• You can better predict your need for raw materials and be more efficient when you purchase raw materials.
• You can sell more easily to retail partners who know what to expect from you.
• You don't have to create unique photos and descriptions for every single item you make if you're selling online.
• You can hire a production assistant to help with simpler tasks if your business grows and you need help.

For some people, the big drawback of any craft business idea that's heavy with production work is you have to create the same pieces over and over.

Some people love this way of working. It can be quite meditative.

For others, production work feels like drudgery, and they don't mind keeping their business smaller if it means they can work on new designs frequently.

10. Participate in Studio Tours 

Studio tours generally happen in the spring or fall.

Opening your own art studio to the public on these occasions can be a worthwhile way to build awareness of your business and possibly make some sales.

Art studio tours are typically organized by local art associations. So, check with them for details about tour dates, application closing dates, and rules.

Learn More:   Art Studio Tour Tips

11. Sell Custom, One-of-a-Kind Handmade Products

Some artists love the process of designing and creating one-of-a-kind items. 

One-of-a-kind items take longer to create and to sell, so you'll need to be able to sell them at a higher rate.

Original products require significantly more work to sell online because you'll need to photograph, promote, and write sales copy for each new item. You'll also need to factor the design time into your prices. 

With one-of-a-kind items, you'll end up selling fewer items overall, and you'll need to command significantly high prices to make this business model work.

It will be important to find ways to increase the perceived value of your pieces , so you can charge a premium for your work.

12. Offer a Service Based on Your Creative Talent 

When people think about building their own craft business, they often don't often think of creating some type of service-based business. These types of opportunities do exist for people with certain types of creative and craft skills.

For example:

If you're a photographer, consider a business photographing clients or products.

If you have digital design skills, consider a service business creating beautiful memory books for families who have lots of pictures but don't have the time or skills to organize and assemble them creatively.

13. Create Private Label Products

How about creating private label items for other businesses?

A private label product is a product that is developed and created by you, but it carries the packaging and branding of a different company.

For example, if you make luxurious handmade soaps and body lotion, you could partner with a local spa and create private label products for them — your products packaged with the spa's name and logo.

A beekeeper who sells fabulous beeswax hand cream at my local farmer's market told me he also sells the same hand cream to a nearby spa as a private label product.

The spa puts his wonderful hand cream in luxurious packaging and sells it at a much higher price than the beekeeper charges at the farmer's market in his own unassuming packaging. The spa reaches a different customer than the beekeeper does, so, with their branding, they can sell his product to different target customers and at a higher price.

4 Handmade Business Mistakes : Save yourself from these common pitfalls! Before you commit to any craft business idea, discover the four mistakes creative business owners make that can waste your time and money.

Sell Digital Products

You might be surprised by the many ways you can use your craft-related skills to make a digital product to sell.

Compared to physical handmade items, digital products often take more time to create up-front. However, once they are made, you can sell digital products over and over as many times as you like.

These craft business ideas are less traditional, but they do scale extremely well. The startup costs for this type of business are generally quite low.

Selling digital products can be a good option for people who love to design handmade products but don't love the production process.

14. Design Craft Patterns or Projects

Instead of selling your actual finished items, consider selling instructions for making your items. Your own unique printable patterns or downloadable project instructions can be sold online on many marketplaces, including Etsy.

You won't be able to charge as much for a pattern as you would charge for a finished item. However, popular digital products can be highly profitable.

The cost to sell digital products is generally quite low. Plus, digital products only need to be created once. Then they can be sold over and over to many customers, leaving you with more time to promote your product.

Digital products also allow you to largely automate the sales process. You'll need to answer the occasional customer's question, but there's no need to deal with production, packaging, and mailing out orders.

15. Create a Membership Website

Do you have a lot of valuable information that is unique and not readily available online? Yes? Then maybe a membership site, where customers pay a fee to get valuable content from you each month, makes sense.

A business like this requires real commitment because you'll need to produce exceptional, original material on a regular basis to keep your customers happy, but this business model can be quite financially rewarding.

16. Sell Printable Products

Can the work you create be translated into some type of printable products that you can sell? That's what I sell on my own Etsy shop .

Not all types of crafts will translate well into this business model, but if you create any type of digital art, or more traditional art that can be translated into a digital format, then you may be able to turn it into a printable item to sell.

More Tech-Based Creative Business Ideas :  Technology has opened up plenty of exciting new opportunities for craft artists. Check out these high-tech craft business ideas and see if one is a great fit for you.

Sell Your Craft-Based Knowledge

You can take the concept of selling projects a step further and sell your knowledge about how to do a specific type of craft or work with a specific type of material.

17. Teach Your Craft in Person

Consider offering classes in your craft to build your business. You might partner with a local community center, or an art supply shop for the classroom space. Partnerships like this can also help you promote your classes.

Learn More: How to Teach Your Craft

18. Teach Your Craft Online

If you can create exceptional, premium content that is better than anything available for free, and build trust with your online readers, then you can charge customers for online courses in how to do your particular craft.

You might offer courses through your own website, or you might build a following as a top instructor on a site like Skillshare.

19. Write Craft Books

How about putting all of your ideas into a book format and selling craft projects or craft instruction books?

You don't need a deal with a publishing company to make money as an author. Amazon makes this type of project surprisingly easy for independent authors.

It's a lot of work on the front end to write a fabulous book. However, if you write an excellent book that gets great reviews and covers a topic readers want to learn about, your book can make money on a site like Amazon for years requiring very little work from you beyond the initial writing and promoting.

Do keep in mind, Amazon's fees for publishing black and white print books are quite reasonable, but their fees for color print books are quite high. Once you  explore their print pricing , you'll almost certainly come to the conclusion that your book needs to be in black and white in order to sell it at a price that is acceptable to readers and profitable for you.

Expand Your Business With Trend Reports and New Markets

20. use trends reports to find profitable crafts to sell.

Trend forecasts can provide great information to help you find the most popular products and profitable crafts to make and sell.

There's plenty of fashion and decor trend information available to help you discover what will be the most popular products or design styles.

You can also find all kinds of data that predict retail consumer behavior, so you can develop effective promotions and make the most of important sales opportunities like Black Friday and Cyber Monday.

Check out these forecasts to discover how to stay ahead of trends and make the most of all of your sales opportunities.

Top Design & Shopping Trends for 2022 - 2023

What's trending now in crafts?

Here are the most recent trend reports for the upcoming year, as well as the most recent holiday shopping trend reports.

Crafts That Sell Well in 2024 : Trending crafts to make and sell in 2024. Discover popular trends you can use in your design and marketing to sell more handmade items this year.

Past Retail & Craft Trend Reports

Crafts That Sell Well in 2023 : Trending handmade items that are hot in 2023. Create popular crafts to make and sell with these home, fashion, & lifestyle products in demand on Etsy & at art shows.

Holiday Shopping Trends for 2022 : 6 essential consumer behavior trends small business owners can work with to sell more this holiday season.

2022 Christmas Trends : 4 consumer behavior trends and 8 style trends you can use to sell more crafts this holiday season.

Crafts That Sell Well in 2022 : What will be the most popular and profitable crafts to make and sell in 2022? Use these 15 hot trends to create and promote handmade items that are in demand for the upcoming year.

2021 Christmas Trends : Here's what shoppers who buy handmade will be purchasing for the 2021 holiday season according to Etsy's search data.

Christmas Shopping Trends 2021 : Trend reports aren't just about what people will buy. They can also give you important information about when and where people will shop and what will influence their buying decisions.

You can use all of that information to promote your business more effectively and sell more crafts! 

Retail shopping trends have changed significantly in the past two years. The 2021 Christmas Shopping Trends report will show you what customers will expect this holiday season, so you can be ready to meet their needs.

Trending Crafts That Sell Well in 2020 : Want to know what crafts will likely sell well in 2020? Here's what's trending in crafts for 2020 according to Pinterest and Etsy.

Christmas Shopping Trends 2020 : Following an uncertain and unprecedented year, people will shop and celebrate the holidays in new ways in 2020. You can't simply rely on last year's marketing strategies to sell your crafts in 2020. This holiday shopping trend forecast will help you understand shoppers' plans, so you can meet their needs.

Most Profitable Crafts to Sell in 2019 : Here's what crafts were popular and trending on Etsy and Pinterest in 2019.

DIY Christmas Trends 2019 : Trending crafts and design themes that will be popular for the 2019 holiday season according to Etsy.

Best Selling Christmas Crafts (updated for Christmas 2019) : Holiday retail trends for 2019. Discover what shoppers will be looking for this holiday season, so you can create promotions that resonate.

Best Selling Christmas Crafts (2018) : Predicted Christmas shopping behavior for 2018. You might be surprised to find out what people are buying and what is one of the biggest Christmas shopping months.

Holiday Retail Market Trends (2018) : I've analyzed several sources of retail market trends to help you better understand what shoppers are looking for over the holiday season, so you can create a marketing campaign that speaks to their needs.

Where to Discover Upcoming Design Trends

Home and Fashion Trend Information Sources : I follow loads of individuals and organizations that provide trend forecasts for home decor and fashion. Here are a few of my favorite sources that can help you keep up to date with changing trends

Pinterest Trends Tool : Pinterest's free and simple tool helps you find the latest trends on Pinterest and shows you how popular keywords have been over the past twelve months. Discover what your customers want, and when they want it with this excellent tool.

21. Expand Beyond the Handmade Niche

Rather than thinking of your business as falling in the "handmade" niche only, think about  other niches your business could serve .

If you make lovely handmade cat and dog beds, then you belong in the pet lovers' niche. If you make custom bridal jewelry, then you belong in the weddings niche.

The handmade niche will take you to some of the more obvious places, like craft shows, and Etsy. However, if you can find a niche based on the type of people who are passionate about your type of product, or who have a problem or need that is solved by your product, then you can find more opportunities to build your business.

You'll be able to go where businesses in your niche go, and find customers who are passionate about what you do and who want your product, not only because it is handmade and beautiful, but also because it fits with a part of their self-identity or fulfills an important need.

Learn More: How to Find a Winning Business Niche

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How to start a craft business

Table of Contents

Find you niche

Register your business, make a business plan, insurance , find suppliers, choose your platform, online stores, physical shops, set up a craft stall, digital marketing, build a website, social media, make a google business profile , traditional marketing, record your business expenses, build a tech stack, save time on financial admin with a simple app.

Starting a craft business is the perfect way to make money from your passion, but it’s not all sequins and watercolours. Getting your craft business off the ground requires a few essential steps. 

This guide will tell you all the bases you need to cover when starting a craft business, including:

• Find your niche

Most craft businesses start off by specialising in a certain area. You’ll most likely have an idea of the kind of crafts you’d like to create, but in terms of options, you can produce anything you like – that’s the best thing about crafts. 

To get a rough idea of what customers like, here are some of the top-selling craft products:

The important point is to sell something that there is a market for. Often you won’t know what will work until you give it a try, so don’t be afraid to keep creating. But always pay attention to your sales figures. They should be the driving force behind the approach to your products. 

In order to pay the right tax for your business, you’ll have to register with HMRC. The process will be slightly different depending on how you decide to set up your business. 

You can register as:

• A sole trader
• Self-employed
• A limited company 

The structure you choose will also affect the amount of tax you pay on the income you earn. If you’re self-employed or a sole trader, you’ll have to pay the standard rates of income tax with a self-assessment tax return . Your tax rate will increase as you get more income, like this:

• Personal Allowance: Up to £12,570 – 0% 
• Basic rate: £12,570 to £50,270 – 20% 
• Higher rate: £50,271 to £150,000 – 40%
• Additional rate: Over £150,000 – 45%

If you decide to set up a limited company, you’ll instead have to pay corporation tax. It’s just a flat rate of 19% for any profits you earn after you’ve deducted business expenses. 

The flat rate is more forgiving when you start to see some serious income, but it’s usually not worth it for new business owners. 

Every business should begin with a detailed business plan. It’ll clearly outline all your main goals while giving you step by step guidance on how to achieve those goals. 

Not only that, your business plan will be useful if you’re trying to secure investors. Whether you’re applying for a bank loan or working with a private individual, a business with a well-made plan is going to be a much safer bet for them.

At the very basic level, every business should be made up of:

• Market research
• A SWOT analysis

There’s a lot to unpack in those three steps, so check out our article, How to write a business plan , for a more detailed explanation. 

Most insurance brokers will offer tailored insurance policies depending on your industry, but generally, these are the most common insurance policies you’ll need:

• Public liability insurance – if your business comes into contact with members of the public.
• Employers’ liability insurance – if your business employs staff.
• Business buildings insurance 
• Business contents insurance – protects the contents of your business premises, your business equipment, and tools.
• Stock insurance – if you hold any stock, whether on your premises or in storage.
• Product liability insurance – protects you should a customer of yours suffer damage as a result of a faulty product you provide.
• Personal accident insurance 
• Business interruption insurance – if your business is disrupted by material damage caused by an event such as a flood or fire.
• Business legal protection insurance – covers your commercial legal expenses and protects against the potential costs of legal action brought by or against your business.

Craft businesses rely on the quality of their materials. Working with low-quality supplies will just make your life more difficult and dissuade customers from coming back to you. 

Early on, you might find it difficult to get any discounts when buying supplies in bulk. Also, as a new business, you probably won’t be able to get supplies on credit before you’ve built up your relationship with suppliers. 

Once you’ve built up a good working relationship, suppliers will probably be more open to offering you discounts and deals, as they see you as a valued customer.

To find the best possible prices and service, consider shopping around. Order from a few different suppliers at first to test out their reliability and quality. 

Deciding where to sell your crafts will have a huge impact on sales. The goal is to get your products in front of as many of the right people as possible.

Your best bet is to try a combination of these three:

• Craft stalls

There are loads of places to sell your crafts online. Etsy is the most popular in the craft world, so it’s a safe bet. But you can also advertise over social media marketplaces or even build your own website – we’ll mention more on this later in the marketing section. 

Actual shops are always a good idea for crafts too. There are some things you can’t tell by seeing pictures online, so letting customers physically browse your products will work in your favour, as long as they’re actually good quality. 

Start with local arts and crafts shops, souvenir shops, or even independent coffee shops. Before you ask, make sure you’re ready for the negotiation. Think about the number of units you have, the prices of each, and the cut you’re willing to give to the business owner. 

Finally, keep an eye out for pop-up craft fairs in your area and set up a stall. They all run a little differently, but usually, it’s just a case of paying a fee then you’re good to go. 

Craft fairs are a great way to introduce your business to smaller communities while meeting new industry contacts along the way. 

The first port of call for any marketing strategy should be building a strong online presence.

Your website is the face of your business. Most people will find you online, so it’s crucial that it makes a good first impression. At the very least, your website should include contact information, products, prices, and location. 

As a rule of thumb, ask yourself how quickly and easily a new visitor could figure out what your business is all about, what they can buy, and how they can buy it. 

Building a website isn’t as difficult as it used to be. You can ask a professional service to do it for you, but a cheaper option would be to use a website builder (CMS software). There are loads on the market that are beginner-friendly and can guide you through the whole process to help you make a professional website. 

A good website will make sure you appear when people search for craft stores on search engines like Google. You can improve your search engines rankings by:

• Paying for Google ads.
• Making your site SEO (search engine optimisation) friendly.
• Asking your customers to leave a Google review.

Sites like Facebook and Instagram put a real emphasis on images, so it’s the perfect place to show off all the beautiful things you have on offer. 

Sites like Youtube, on the other hand, are great places to post more engaging, long-form content. Tutorial videos are always popular forms of social media content – they’ll attract followers and add a familiar, personal touch to your business. 

Youtube is also the world’s seconds largest search engine, so it’ll have a positive impact on your Google search rankings, and you might end up making some extra money just from monetising your channel.

As we mentioned above, paying for Google ads is a great way to get your website at the top of search engine results. 

But you should also register on Google maps. It’s easy to do and will make it much easier for people to find you. To register, just go to Google My Business and follow the instructions. 

Alongside digital marketing, some more traditional forms of marketing can also be effective. 

You should consider:

• Making business cards to hand out.
• Printing flyers and posting them locally.
• Teaming up with other local businesses to refer each other’s businesses.
• Encouraging customers to spread the word.
• Encouraging friends and family to recommend your business.

Finally, you’ll want to think about the name and logo of your craft business. 

Both should be unique to help you stand out from the competition. You’ll need to register your logo as a trademark with HMRC to prevent others from using it and to make sure you’re not using one that already exists. 

You don’t have to register your name unless you’re a limited company, but it’s a good idea to check it’s not already being used to prevent confusion. 

Trademarking can be an expensive process and involves a few steps, so read our guide for more information. 

Business expenses are defined as any money you’ve spent that’s “wholly and exclusively” for the purpose of running your business.

When the time comes to pay income tax, you can deduct any business expenses you’ve made throughout the year from your total to decrease your taxable income. 

Some common business expenses include:

• office costs: for example, stationery, or phone bills.
• travel costs: for example fuel, parking, train, or bus fares.
• clothing expenses: for example uniforms.
• staff costs: for example salaries or subcontractor costs.
• things you buy to sell on: for example, stock, or raw materials.
• financial costs: for example, insurance, or bank charges.
• costs of your business premises: for example, heating, lighting, business rates.
• advertising or marketing: for example, website costs.
• training courses related to your business.

Alongside business expenses, you can claim capital allowances too. They work in pretty much the same way but they’re for one-off expenses like:

• business vehicles

It sounds simple enough, the tricky part is keeping a detailed note of all your business expenses throughout the year. You should consider downloading accounting software like Countingup. It’ll automatically save and categorise all your transactions so you’ll never miss a beat. 

A tech stack is a collective term we use to talk about a bunch of different apps used together. Any kind of software or application your business uses on a daily basis is all part of your tech stack.

Things like accounting software, customer management software, or group chat platforms would be part of your tech stack. They’re often called software solutions or platforms but it really just means any fancy technology you use to run your business.

The best way to decide on the things to include in your tech stack is by thinking about these key ideas:

• Your business needs
• Integration and scaling
• Building your stack slowly

You may not think you need all that much tech as a sweet business, but there’s plenty of software out there that’s useful for any business. You might want to consider:

• CRM (customer relationship management) software 
• Accounting Software
• Collaboration Platforms
• Automation Software
• Integration Software

There are loads of software solutions so it can be quite confusing. Just take your time and eventually you’ll have the perfect tech stack for your small business. 

When you’re starting your own business, it’s important to keep your personal and business finances separate from day one – to save yourself from time-consuming admin headaches further down the line. 

When you sign up for a Countingup business current account, you’ll receive free accounting software with a range of time-saving tools. 

Simply log into the app to create and send invoices, get financial insights, and confidently manage your new business finances. Find out more here .

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How To Start Your Own Craft Business – Business Plan Essentials

• September 17, 2013
• No Comments

“You can’t plan for the future success of your business if you don’t know where you want it to go”

Below are the business plan essentials for craft makers:

Positive Visualization

This is the most important starting point when starting your craft business. In your mind’s eye anything is possible. That’s why so many successful people say they like to visualise themselves achieving a goal. Olympians envision themselves completing a gold-media winning performance; business leaders imagine themselves closing a big deal; politicians picture themselves winning next election.

Can you actually see yourself enjoying your craft, and in the process, making a profit from it?

Reinforce visualization with positive self-talk. Don’t undermine yourself with negative “I can’t” thoughts. Think about the Law of Attraction: Positive thinking equals positive outcomes!

Research And Gathering Of Data

This phase is crucial as you have to answer many questions that you have in mind. What is your initial budget for the business? Who are you selling your crafts to? What you should do make your target audience choose your crafts over competitors? Where is the best venue to sell your crafts? Etc.

The answer to these questions should be backed up with market research to make your goals feasible.

Craft Products Branding

Marketing comes easy if you have safe and high quality products. Check if any of your products require patents or trademarks. Also, establish a stable and reliable source of your supplies, learn how to put a right price on your products, create labels for your product, choose a catchy name that defines your business, and ensure great customer service.

Marketing Strategies

Once you have done your research and branded your products accordingly, the process of market strategizing begins . Think about how your potential customers are going to find out about your creations? You might want to consider advertisements, social media, joining local arts and crafts fair, etc.

Think about ways on how you can attract customers. Will you take the time to make high quality photos of your products ? Look at building a competitive profile; learn SEO, building your online presence, etc.

You only have one shot to make a good impression so take time to review your business plan. If you can ask others for feedback or consult a professional.

Starting your own craft business is not easy but having a well laid business plan will guide you on the right path towards success.

Good luck and start planning, even if it’s just noted down in a pad for now write it down.  Plans will never stick if you just keep them locked up in your head.

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How to Start a Craft Business

It’s not unusual to turn a hobby into a business, and that includes crafting. If you have ever thought about selling your crafts or turning your crafting love into a part-time or full-time business, here are things to consider in how to start a craft business.

Research the Market Demand

If you’re looking to start a craft business, make sure there’s demand. Are people thrilled to get your crafts as gifts? Have people offered to buy your creations?

Here are two ways to research a craft business. Go to craft shows. Or browse craft marketplace websites like Etsy and Handmade at Amazon. See what’s already out there in your niche. Look to see if your items fit into an existing product category (there’s likely demand), but there aren’t a gazillion sellers selling very similar items (too much competition for the same thing).

Differentiate Your Product Line

Differentiate your products from the competition. For example, there’s probably a lot of handmade kids’ clothes already out there. But you could “niche down” even further by making kids’ clothes out of sustainable fabrics, like Conscious Kids Clothing has done. Then you appeal specifically to that niche. Ways to differentiate include materials, quality of workmanship and unique designs.

Know Your Customers

Define your ideal customers. In the example above with sustainable kids’ clothing, the ideal customers are environmentally conscious parents. If you hand-turn wooden pens, you might target those looking for small gifts as well as professionals who are image-conscious. Defining your ideal customer will guide you in how to display your products, create enticing product descriptions, decide which craft shows to attend, and more.

Choose a Name with Strong Brand Potential

Pick a business name that appeals to buyers and communicates what you sell. Don’t get too obscure. Pick something with meaning and strong brand potential -- catchy is good. Be sure to check the name’s availability. An attorney can guide you through the legal process to secure your business name.

Reserve Your Online Assets

A website is recommended, even if you plan on selling in person or on a large marketplace site. At the very least a website adds credibility and a way to contact your business. It can also operate as a secondary sales channel. Register a domain name to match your brand name. Then set up profiles in your business name on social media sites like Twitter, Facebook and Instagram that are popular with your target audience.

Source Quality Materials

Making products is different from crafting for fun. You need a reliable source for materials -- and a lot of them. Some brands like Darice and Warehouse Craft Supplies offer volume discounts. Or you might opt to go to a retail craft store at first until you can justify bulk supply purchases. Know your material costs inside and out, so you can make a profit.

Develop a Selling Strategy

Figure out the selling approach YOU are comfortable with. If the thought of spending three days at a craft show sounds like punishment rather than a joy, look at alternatives such as selling at an online marketplace site. You could also set up your own ecommerce site -- two popular and affordable platforms are Shopify and BigCommerce.

Practice Your Product Photography

Great photography is essential for many craft businesses these days, due to the importance of social media and ecommerce. You’ll likely take your own pictures at first. Get the best camera you can and put together a clean backdrop with good lighting. You can purchase product lighting equipment from companies like B&H or SHOTBOX . You could also outsource photography to a professional.

Arrange Shipping

If any part of your business includes selling online, consider the shipping. Prompt and reliable shipping plays a huge role in getting good customer reviews. So compare prices and find a shipping provider, whether you go with USPS, UPS or FedEx. Then invest in good packing materials to avoid breakage.

Share Your Story

Consumers shop with independent artisans because they want something unique they can’t find elsewhere. But you can provide even more “uniqueness” by sharing your personal story. How did you get into your craft? Are your kids or family members involved? Do you support any causes with your profits? Share this on your website, on social media and elsewhere to create an emotional appeal to build a loyal community following.

About the author

Anita Campbell

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15 Tips for Turning Your Craft Hobby Into a Successful Business

Will your business idea succeed? Take our quiz - completely confidential and free!

Are you a crafter? Does plucking an idea from your brain and crafting it into a reality with your very own hands make your heart sing? If so, you may have said to yourself at some point, “I wish I could do this for a living.”

The amazing news is that you can. The market for handmade crafts is growing. Etsy, the internet’s largest crafting marketplace, has reported steady revenue increases since 2015 . Even Amazon has joined the party with its Handmade store .

In fact, millions of people in the U.S. and worldwide are looking to turn their craft hobbies into real businesses.

“But, I’m a crafter. Not a businesswoman,” we hear some of you say.

You are not alone.

You can continue crafting as a hobby. But, for those of you ready to take the next step… who are ready to make a living doing what you love and are most passionate about… Let’s talk about starting a business .

Here are the 15 things you should do to turn your craft hobby into a successful business or career:

1. Choose a business structure.

2. Acquire business licenses or permits.

3. File and pay taxes.

4. Build profit into your pricing.

5. Establish a personal brand with which customers can connect. 

6. Create unique, original crafts with your niche market in mind.

7. Create a great customer experience by providing safe, easy transactions and making it easy to reach you.

8. Incorporate thoughtfully designed visual assets that embody your personal brand.

9. Show off your crafts to their best advantage with flawless product photos.

10. Create an efficient workspace.

11. Develop products that can be reproduced easily.

12. Purchase supplies wholesale.

13. Create a professional website to be a customer ambassador when you’re not around.

14. Communicate often via convenient email marketing.

15. Build relationships with your customers via social media.

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Run your crafting hobby as a business

The first step to converting your crafting hobby into a crafting business is pretty obvious- start treating it like a business. But, in practical terms, what does that really mean?

There are a few essential steps you must take.

You’ll need a name for your new business, and we’ll address that below.

Start by putting together a business plan for your new business . It doesn’t have to be 100 pages long. There are excellent one-page business plan templates that can help you get started quickly.

One of the first decisions you’ll have to make is your legal business structure . Should you have a sole proprietorship, incorporate, or register a partnership or an LLC (limited liability company)?

Hire an expert to form your company and save time. Our trusted partners can help: Northwest ($39 + state fee) or Bizee ($199 + state fee) . We recommend Northwest. After evaluating the leading registration companies, Northwest stands out as our top choice due to its competitive pricing, exceptional customer support, and commitment to privacy. Pay just $39 + state fees and you'll get a free year of registered agent service, articles of organization, privacy, and client support from local experts.

What the heck is the difference?

A sole proprietorship is the “most basic type of business to establish,” according to the SBA (Small Business Administration). You are the business’s sole owner; thus, you are solely responsible for the assets and liabilities accrued by the business. This may be just the ticket for your brand-new baby crafting business, as it is also the easiest to set up.

If you want more protection, an LLC (or Limited Liability Company) may be a better fit. The LLC business structure provides the limited liability features you would find in a corporation . We have many details about business structures in our comprehensive guide on how to start a business , and the Small Business Administration also has details about these common small business structures.

Regardless of your chosen structure, you must know that your new crafting business, like any business, will need to pay taxes. The crafting blog Start a Craft Business cautions,

It’s vital that you follow the tax laws of your state and country if you want to run a successful craft business that will grow and thrive for years to come. There’s no excuse for not filing your taxes, no matter how much of a pain you may find it to be. It’s always better to have your paperwork in order.

Not to mention that the IRS gets cranky if they don’t get their split of your profits. So, check out the SBA’s guide to filing and paying taxes .

Once you’ve decided on a legal structure for your new business, you need to consider whether you need a business license to legally conduct business. The SBA website has all the info you need to learn which license or permit is required for your new business in your state .

Before we move on from the heavy-duty business side of this conversation, we want to discuss pricing.

Crafters habitually undercut their own profit by setting their prices too low. The Etsy Seller Handbook includes an article entitled, “ Are You Paying Yourself Enough? ” which points out that paying ourselves fairly (yes, I am guilty of this, too!) makes us feel uneasy.

But, if your business is to succeed, you will have to grow past that uneasiness and build profit into your prices. Emma Featherstone of The Guardian writes,

Make sure that you have worked out all your costs. Pay yourself a decent hourly rate, include all materials and then add a bit on the bottom. If they negotiate on price then at least you will know how far you can go.

How can you set a fair price? The Etsy Seller’s Handbook provides one way to do this:

Materials + Labor + Expenses + Profit = Wholesale Price x 2 = Retail Price

However you choose to calculate your prices, make sure that those prices are setting your new business (and you) on a sustainable path. Nobody starts a business saying, “I want to be poor!” So, remember to factor in your profit.

Run your crafting hobby as a business by…

• Choosing a business structure.
• Acquiring any necessary business licenses or permits.
• Filing and paying taxes.
• Building profit into your pricing.

Give your customers what they want

Now that we’ve got the hardcore business details taken care of, let’s talk about something a little more fun- how to give your fantastic customers what they want.

Craft customers are not looking for a mass-produced item that they can pick up unceremoniously in a big box store for a discounted price. Instead, they are seeking unique, original pieces from real-live craftspeople that they can connect with.

And that’s awesome.

Jess Van Den of “ Create and Thrive ” (a blog dedicated to helping hand-made crafting businesses succeed) points out,

They are buying from you because they prefer to buy unique things, direct from the person who made them. Don’t make it difficult for them to get to know you…

Here’s what you can do to give your future customers what they want. Start by developing your own brand identity . As a professional craftsperson, this includes presenting yourself as the face of your business, as well as choosing the business name for your company.

If you google “how to name your craft business,” you’ll find oodles of results providing lists of potential craft business names. The trouble is that every other would-be entrepreneur craftsperson on Google is looking at those very same name suggestions.

Now, you know those craft consumers seek unique goods from unique individuals, so those generic name suggestions just will not cut it.

When naming your business , keep in mind what makes you – and your crafts – unique. What is their essence, their personality? Then make sure that your name captures that essence.

Ross Kimbarovsky, a serial entrepreneur and founder of crowdspring, recommends starting your business name search by considering what you want the name to convey and then brainstorming with those guidelines in mind.  Whatever name you choose, make sure it helps your consumer know – and remember- who you are. If you need a place to get started, take a look at the craft business name generator .

To support the hard work you’ve done in creating a great, unique business name, you’ll want to make sure that you flesh out your brand identity by sharing a little bit about yourself with your potential customers on your website. That’s right- you’ll need a website … and a logo . But, we’ll talk more about that later.

For now, know that your future website will need an “About” page that shares your story as a craftsperson, information about your qualifications, the story behind your products , and any other unique quirks that are important about you. This section is all about building trust. Sharing personal information helps your consumers get to know you as a person, which gives more meaning to the items they’ll (hopefully) purchase from you.

Successful crafters know that a strong personal brand is nothing without awesome hand-made products to back it up. As a crafting entrepreneur, you’ll want to make sure that your products are not only well-made but something that consumers actually want to buy. Van Den advises ,

When you start making for profit rather than for pleasure, your perspective needs to shift. You need to stop thinking exclusively about you, and what you enjoy – and you need to start thinking about your customers.

So, think about who your target customer is- and the more specific you can be about this, the better. Let your customer and their needs inform your products. Don’t lose your singular vision in the process, but cater your creations to fit what your customer wants.

You will, of course, get better at this as you meet more of your real-life customers. So, be prepared to shift and adapt. Just remember that when crafting for profit, it’s as much about your consumer as it is about you.

So, give them what they want.

Finally, now that you’ve established a relationship with your customers through your personal brand and an awesome product make it easy for your customers to seal the deal and buy. Consumers want safe, easy transactions supported by phenomenal customer service should the need arise.

So, please give it to them.

Whether you choose to sell at trade shows and fairs or in an online venue, make sure that you create the kind of customer experience you enjoy. Offer multiple secured payment methods, be upfront about your store policies to avoid unpleasant surprises, respond to customer service requests promptly, and by all means, make it easy to contact you.

Display your email address prominently on your website- putting it in a header or footer so that it is easily found from every page ensures that your customer can find it with a minimum effort.

You’ll also want to create a “Contact” page that includes, at a minimum, a short email form (so that your customers can reach you directly from that page) and links to your social media accounts. You can learn more about crafting an awesome “Contact Us” page here .

Business cards are another essential piece of your customer service puzzle. If you’re selling at trade shows or fairs, your business card is a vital contact tool. But, it’s also a memento of your customer’s purchase experience, whether they bought with you in person or online.

Think of your card as an extension of your brand identity in a handy, easy-to-carry form. When you look at it that way, it’s easy to see how important a tool it really can be. So, make sure your business card is designed to reflect your unique personal brand and clearly provide all of your contact info.

Give your customers what they want by…

• Establishing a personal brand that customers can connect with by choosing a business name that conveys the essence of you and your crafts and sharing your story and unique product info.
• Creating unique, original crafts with your niche market in mind.
• Creating a great customer experience by providing safe, easy transactions and making it easy to reach you.

Remember what business you’re in

Let’s be honest, crafts may not be solely defined by their appearance; but, how a crafted piece looks goes a long way in determining its appeal.

One-of-a-kind, hand-crafted goods offer quality and aesthetic value to the world. The people who buy them are not usually looking for the most practical or functional items. Craft consumers are often driven by an appreciation of the artistic value and a desire to connect with the people who have created their unique new item.

So, if you’re going to capture an audience-driven by aesthetic appreciation, you have to appeal to their good taste on all levels. This means that good design is a requirement at all levels of your business. Don’t let a poorly designed website , logo , or business card undermine your credibility as a purveyor of beautifully hand-crafted items.

Your crafting business needs a visual identity to go along with your clever business name and support your personal brand.

A logo should be the very first item on your graphic design to-do list.  Experts claim that a good logo must be simple, timeless, and memorable . It also must be an extension of your brand.

Your logo has to derive meaning from your brand, not the other way around. The world’s best brands are not well-known because of their logo, they are known because of the people and vision that the logo represents.

Keep this in mind when designing (or communicating with a designer about) your logo.

Once you have a logo you love, you can start to think about website design.

But think twice if you’re considering using a generic template. Ross Kimbarovsky, the founder of crowdspring, warns of the dangers of generic template designs :

If you use an off-the-shelf template and your website looks like thousands of other sites on the Internet, you’ll miss an opportunity to create a unique impression.

There’s that crucial word again- unique .

Uniqueness is what hand-made crafts are all about. A single item crafted by a single pair of hands- no other like it in the world.

Your website design should reflect that uniqueness. And yes- you need a website. Otherwise, people won’t be able to find you easily.

Now, here’s why… a study < revealed that 56% of consumers don’t trust a business that doesn’t have a website.

That’s more than half! Simply by having a website, you’ve inspired 56% of your potential audience to have greater trust in you.

And, just as important, a website is an ambassador for your business. It’s there, 24/7, to introduce you and your products, answer questions and maybe even sell. All the while, you can get on with the business of crafting, eating, sleeping, and living.

Your website can be as simple as a landing page with pictures of your products, an “About Me” page, and a “Contact” page.

A better website will also include a page devoted to your store policies and customer service info. And the best website will also incorporate a blog and an e-commerce component with a gallery of your product listings so that you can make sales when you’re not even around.

If the idea of setting up your own online store is intimidating, check out Etsy- an online marketplace for hand-made crafts. Then direct customers to your Etsy shop from your website. In fact, we have a terrific no-stress guide on how to start your own Etsy shop .

It’s not enough to have a website, however. You also want to be sure that your site’s design is unique and that it showcases your products and you.

Just like your logo, your web design should start with your personal brand. A well-designed website will expand upon and support the values and personality traits you’ve identified as core to your business.

Incorporate product photos right at the top of your website’s homepage to catch attention and showcase your crafts right from the very start. And be sure to invest a little money in good, professional product photos:

If you’re selling products and your customers will buy the products online, you need to make sure that the product photos – or graphical images and descriptions – are clean, crisp and appropriate. You can have a great site design, but if your product photos look terrible, your prospective customers will think twice about buying your products.

Jess Van Den of Create and Thrive concurs, claiming that your product photos will make or break your business:

The photo is the first thing that captures the eye, and usually the largest part of the decision-making process when all is said and done.

So what makes for great product photos? Van Den recommends white/neutral (not flash) lighting, simple, iconic backgrounds, interesting angles, and, most importantly, images must be perfectly crisp, clear, and in-focus.

Remember that looks really do matter…

• Incorporate thoughtfully designed visuals logo, business cards, website) that embody your personal bra nd.
• Show off your crafts to their best advantage with flawless product photos.

Work smarter, not harder

You may have heard the adage, “Work smarter, not harder.”

For a crafting business- where you will most likely run the business and create every single product sold all by yourself- this advice is even more vital. After all, you want to avoid burnout .

Here are a few suggestions for how you can streamline your process and get the most of your valuable time and effort.

Set yourself up for success with an efficient workspace. Time spent scrambling to find lost tools or materials is time (and money) lost. Please make an effort to figure out your physical workflow and create a space that supports it.

As a sewist, I know my personal tendency to carry around (and subsequently lose) my scissors and pincushion.

My solution? Place scissors and pincushions at both my sewing table and on my ironing board. No more carrying, and so much time saved! Find your own personal productivity hacks to make your workspace work harder for you.

Another way to work smarter is to develop some products that can be reproduced easily. This can mean many things- maybe it’s simply a customizable item that you can create quickly in bulk ahead of time, leaving the customized elements to be added as orders come in.

You can also create craft patterns or projects that can be purchased digitally and printed by the consumer- allowing you to design and leave the construction up to your customers.

Jess Van Den recommends making reproducible products the core of your product line-up :

… I’m not saying not to make OOAK [one-of-a-kind] items – far from it! What I AM saying, is that if you want to have a successful online handmade business, you really need to produce a range of reproducible designs that you can list once, and then sell over and over again without having to do any additional work.

Finally, don’t forget that making the leap from crafting hobbyist to crafting entrepreneur means you have better options for purchasing supplies than overpriced retailers like Joann Fabrics and Michaels. Once you’ve legally established your business, you’ll be able to buy wholesale- and you should.

Buying wholesale means that you can buy supplies in bulk and at lower prices. This is a smart move on a couple of fronts. Firstly, purchasing wholesale means that larger quantities of supplies will be shipped to you, saving you the time you’d otherwise spend making frequent trips to the store. And, secondly, it saves you money, leading to more competitive pricing.

Work smarter, not harder by…

• Creating an efficient workspace.
• Developing products that can be reproduced easily.
• Purchasing supplies wholesale.

Make the Internet work for you

The internet has become an integral part of our daily lives. It’s how we stay in touch with friends and family, learn about what’s going on in the world, even find recipes for dinner and videos of puppies wearing bow ties. It has also become a rich resource for entrepreneurs.

Utilizing the tools the internet offers can help you work more efficiently, keep initial startup costs down, and create a web presence that works for you every hour of every day.

We already discussed why you need a unique brand and an online presence.

But, the internet isn’t just for selling. It’s also for communicating. Online resources like Constant Contact and MailChimp allow you to create email mailing lists and send email marketing campaigns to help build your audience and drive business to your site.

And don’t forget social media! Since you know your crafting consumers are looking for a personal touch in their purchases, make it easy for them to get to know you. Business Insider has named social media the “leading edge” in marketing- and establishing a Twitter or Facebook account is 100% free!

Social media gives you the ability to easily keep customers up-to-date on new products, store policies, or sales. It also enables you to build a social rapport with current customers while building low-pressure relationships with future buyers.

Nineveh Dinha Madsen of Forbes recommends creating a content calendar to make managing your social media more efficient and up-to-date.  She says,

Nothing is worse than coming across a company’s social media page only to find it hasn’t posted in two months or even years. Is it out of business? Make sure you’re active and, most importantly, be consistent.

So consider creating a content calendar to keep you on track. Social media marketing is too valuable (and too easy) not to take full advantage of.

Make the internet work for you by…

• Creating a professional website to be a customer ambassador when you’re not around.
• Communicating conveniently via email marketing.
• Building relationships with your customers via social media.

So there you have it. 15 tips for propelling your passion for crafting into a career.

If you follow this advice, you’ll be well on your way to turning your crafting hobby into a thriving business.

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Crafting a business plan: a step-by-step guide.

Are you eager to start a crafting business but unsure where to start? At BusyBead, we understand that it can be challenging to launch a successful crafting business without a clear roadmap. Sensible crafting business planning is crucial to achieve long-term success. Engaging in comprehensive research and formulating a business plan will help you understand your goals and lay a strong foundation for your business.

In this article, we aim to provide you with a crafting business plan step-by-step guide, which will comprehensively cover every aspect of the business and equip you with the tools you need to refine your vision for your crafting business. In the next sections, we will outline the essential components to help you establish a robust strategy for your crafting business plan. We'll begin by giving you a brief overview of BusyBead's experience and discuss why you need a crafting business plan in the first place.

Crafting Business Plan - Why is it required?

A crafting business plan is a fundamental tool that outlines your entire business vision. It is a roadmap that gives direction to your business, allows you to track your progress, and helps you stay focused on your goals. Here are some reasons why crafting a business plan is necessary:

Market Analysis of Crafting Industry Conducting market analysis is crucial to determine the demand and supply side of the crafting industry. A comprehensive understanding of the industry and competition is imperative in identifying the opportunities and challenges. Researching competition includes looking at their product range, pricing structure, and marketing strategies. The findings can help in determining the critical factors for your business's success and devise a unique business plan that stands out in the market.

Setting SMART Goals A crafting business plan should define your mission and vision by setting specific, measurable, achievable, relevant, and time-bound (SMART) goals. Each goal should align with your business objectives and have assigned resources that work towards accomplishing them. SMART goal setting allows you to stay on track, measure performance, and make informed decisions if anything goes astray.

Crafting Business Plan Checklist A crafting business plan checklist covers the fundamental areas that a business plan should address. It comprises an executive summary, market analysis, product descriptions, strategy development, sales and marketing plans, financial projections, and more. The checklist ensures that your business plan is comprehensive and covers all the essential parts that seek investors' attention.

A comprehensive and well-crafted business plan will increase your chances of success in the competitive crafting industry. The next section of our Crafting Business Plan guide discusses knowing your products, which is crucial in making informed business decisions.

Knowing Your Products

As a crafting business owner, it is essential to know your products inside and out. At BusyBead, we pride ourselves on offering high-quality silicone beads that cater to a range of different requirements for crafting, art, and design. Our beads are known for their durability, flexibility, heat and water resistance, and overall quality.

It is important to cater to your buyer personas to ensure you are delivering a product that meets their specific needs. Knowing the requirements of your target audience can help you create a product catalog that provides various options to choose from, meeting your audience's various requirements.

Creating a product catalog is essential to showcase your entire range of products, including new product launches, best-sellers, and special or seasonal collections. A well-curated catalog can provide the customer with comprehensive information regarding the products, making it easier for them to make an informed purchase decision.

It is essential to take the time to understand your products, and creating a comprehensive product catalog can help you stay organized and keep track of your products efficiently. At BusyBead, we ensure that our product catalog is updated regularly to include all our product information, making it easier for our customers to understand the products and make informed decisions.

Setting up your Crafting Business

Starting a crafting business can be an exciting and rewarding adventure, but it's important to set it up properly so that you can avoid legal issues and create a professional image. In this section, we will go over some of the essentials for setting up your crafting business.

Setting up Your Business Legally

One of the most important aspects of setting up your business is making sure you are doing it legally. It may be a good idea to start small and grow from there. Use the following steps to set up properly:

• Research and register your business name
• Acquire necessary business permits and licenses
• Decide on a legal entity status (sole proprietorship, partnership, LLC, etc.)
• Obtain an Employer Identification Number (EIN)
• Open a business bank account
• Install accounting software, if applicable

Crafting Space Essentials

Before setting up the physical space, it is important to understand the needs for your crafting business. Depending on the type of crafting you will be doing, your space needs may vary. However, envisioning these steps can help in preparation:

• Determine the types of supplies you will need and where they will be stored
• Decide on the amount of space you will need for crafting
• Evaluate workspace arrangements and seating
• Establish proper lighting and ventilation

Inventory Management

For the business to run smoothly, it is important to manage your inventory appropriately. Accurately handling supply and demand in the proper way will prevent overstocking or shortages. Follow these steps in inventory management:

• Determine what constitutes as "low" or "in need of reordering"
• Keep accurate records of when you place and receive orders
• Evaluate Inventory Turnover to see what products are selling best

By setting up a legal business foundation, creating an efficient workspace, and managing inventory, you will lay the groundwork for crafting business success.

Running Your Crafting Business

After setting up your crafting business, the next step is to focus on marketing and selling strategies to boost your business' growth. On that note, let's discuss some of the marketing and selling strategies to make your business successful.

Marketing and Selling Strategies

• Identify buyer personas: It is important to know your target customer. This helps you to understand what drives their purchasing decisions.
• Develop a well-planned marketing strategy: Determine what channels you will use to market your products. Will it be social media, email marketing, or SEO strategies?
• Use influencer marketing: Collaborating with bloggers and influencers can help you reach your target audience more effectively.

Social Media Marketing

Social media marketing is one of the most effective ways to promote your craft business. It provides a great platform to showcase your products and interact with potential customers. Here are some tips for social media marketing:

• Identify your target audience and goals: Determine the type of content that resonates with your audience.
• Choose the right social media platforms: Understanding your audience helps you choose suitable social media platforms to promote your business.
• Create content that showcases your products: Make sure the content is visually compelling and showcases your products.

Developing a Launch Strategy

Developing a Launch Strategy can help you build a strong foundation for your business. Here are some tips for developing a launch strategy:

• Launch on social media: Share your launch date on social media platforms to generate buzz about your business.
• Utilize email marketing: Email marketing is an effective way to reach out to customers and introduce your brand.
• Host a launch event: Organizing an event to launch your business is a great way to get exposure and show off your products.

By integrating these strategies into your marketing plan and crafting a comprehensive launch strategy, your business can become the go-to source for quality craft supplies.

Expanding Your Crafting Business

Scaling up your crafting business is the ultimate goal of every business owner. You need to ensure that your business grows steadily to increase profits and gain more customers. Here are some tips on scaling up your crafting business:

Scaling Up Your Business

• Invest in high-quality equipment and materials – Upgrading your tools and using premium quality materials will help you to produce high-quality products. This will increase your reputation and attract more customers.
• Automate Processes – Automating your production process can increase your output and reduce labor costs. Consider using software that can streamline your business operations.
• Offer Different Products – Diversify your product offerings to avoid being dependent on one product. Determine your customer's needs and create new products that appeal to them.
• International Shipping
• Expand to international markets – You can increase your customer base and revenue by selling to international markets. However, it would be best to research and understand the legal requirements and cultural differences in the countries you are going to sell in.
• Select the right partner for shipping – Choose a reliable shipping company that can deliver your products efficiently and safely. Working with a company familiar with international exporting laws and customs is essential in minimizing shipping delays and customs hold-ups.

Hiring and Training Staff

• Hire a skilled team – Hiring the right team can help you to scale your crafting business. Find people who share your passion for crafting and who have relevant experience in your industry.
• Train your staff – Provide training opportunities that help your staff to develop their skills working in the crafting industry. Cross-training employees in more than one area can help streamline business activities.

If you want to scale a crafting business, you need to consider these points. Follow them to increase your revenue, gain more customers, and improve your business reputation.

Crafting Business Plan Conclusion

We hope that this guide has been helpful in providing detailed information to set up and grow your crafting business. Recapping the key points, the guide began with an introduction to BusyBead, followed by a comprehensive market analysis of the crafting industry. We also discussed the importance of creating SMART goals and crafting business plan checklists. Moving forward, we looked at the essentials of identifying buyer personas, creating product catalogs, and setting up your business legally.

Running your crafting business effectively is equally important. We provided several marketing and selling strategies, social media marketing tips, and a complete launch strategy. Further, we discussed growing your business by scaling it up, implementing international shipping solutions, and hiring/training staff.

The importance of a crafting business plan cannot be overstressed. A well-drafted plan helps you identify your goals, craft effective marketing strategies, and make informed decisions that can significantly impact your success in the crafting industry.

Finally, we hope that this guide encourages you to pursue your passion for crafting, and we wish you the very best as you embark on your journey towards becoming a successful crafter. Remember to stay creative, passionate, and driven towards achieving your goals while keeping your audience in mind.

Frequently Asked Questions

1. Why is a crafting business plan necessary? Having a crafting business plan helps you identify your goals, map out a strategy, and stay on track. It also helps you secure funding and attract investors.

2. What should I include in my crafting business plan? Your crafting business plan should include a market analysis, SMART goals, a product catalog, legal requirements, inventory management, marketing strategies, and a launch plan.

3. What are buyer personas and why are they important? Buyer personas are fictional representations of your ideal customers. Identifying your buyer personas helps you understand your target audience's needs and preferences, which helps you create and market products that appeal to them.

4. How do I legally set up my crafting business? You will need to obtain the necessary licenses and permits to operate in your state or municipality, register your business name, and obtain an EIN number for tax purposes.

5. How do I scale up my crafting business? You can scale up your crafting business by increasing your product offerings, expanding your customer base, and automating processes like inventory management and shipping. You can also consider hiring and training staff to help you manage bigger orders or to increase production capacity.

Effective Packaging and Presentation for Crafte...

Crafted products are a representation of the creator's creativity and skill, and packaging and presentation play an essential role in the way their products are perceived. Presentation is not limited...

Crafting Business on Social Media: Tips for Growth

As a company dedicated to providing high-quality silicone beads for crafting, art, and design, BusyBead understands the importance of establishing a strong online presence. In today's world, social media has...

Are you eager to start a crafting business but unsure where to start? At BusyBead, we understand that it can be challenging to launch a successful crafting business without a...

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8 Simple Steps How to Start a Craft Business

Creators of custom hats and other handmade accessories have now found a ready market in millennials looking for unique items to round out wardrobes and make a personal style statement.

Wise Business Plans is offering design entrepreneurs the quality business plan for handmade crafts and services necessary to garner funding from investors and banking institutions, map a path for long-term goals solutions, and boost earnings.

How to Start a Craft Business

Often, hobbies become businesses. If you’ve ever thought about selling your crafts or turning your love of crafting into a business, here are some things you need to know about starting a craft business.

1. Study the Market Demand

To start a craft business, make sure there is a demand. Will people love your craft as a gift? Will people buy it?

The following are two ways to research a craft business. Attend a craft show or Browse online marketplaces such as Etsy and Handmade at Amazon.

Find out what’s already available. See if your products are already marketed (there’s probably demand), but make sure there aren’t a gazillion sellers selling the same items (too much competition).

Recommended Resources: Find out the 30 best gift ideas for entrepreneurs .

2. Write a Business Plan for Handmade Crafts

Crafting and planning go hand in hand. Your business should be planned in the same way that you plan your perfect craft. To do this, you need a business plan .

Having a business plan for handmade crafts is a great way to stay on track and plan your craft business, as well as prove you are worth the investment to any potential investors. You should still create a firm craft business plan even if you’ve already started your company.

Furthermore, a craft business plan is not only crucial for any business owner but also if you decide to seek funding to launch or expand your business.

Do You Need a Craft Business Plan?

Here’s the good news: you can minimize the time it takes to write a business plan by hiring wise business plans who have over a decade of experience writing business plans, spanning over 400 industries. Hire a business plan writer now!

3. Decide Where You Will Sell Your Crafts

Your goods are ready to sell, but where will you sell them? Local arts and crafts fairs and farmers’ markets are great ways to gauge customer interest.

You can also take your products to local boutiques and consignment shops before opening a store. There’s also always the option to create an eCommerce website or sell on a marketplace, such as:

• Etsy (the best online craft market)

The platforms help craft businesses reach a large audience and make it easy for customers to buy products. The flip side of this is that digital marketplaces may charge fees for using their platforms, which can add up over time.

4. Use Quality Materials

Crafting for fun is different from making products. You’ll need many materials from a reliable source. You can get discounts from brands like Darice and Warehouse Craft Supplies.

At first, you may want to visit a retail craft store until your bulk supply purchases can be justified. Make sure you know how much your materials will cost.

5. Choose a Name with Strong Brand Potential

Choose a business name that appeals to buyers and communicates what you sell. Don’t be too obscure. Choose something with meaning and strong brand potential — catchy is good. Make sure the name is available. A business attorney can guide you through the legal process.

6. Choose a Business Entity

You must also decide how your business will be structured in your Business Plan for Handmade Crafts. It is imperative to decide the legal structure of your business, whether you are a solo entrepreneur or have a team behind you.

Choosing the right entity for your craft business can be a challenge if you haven’t decided yet. For your business structure, you might consider a sole proprietorship , general partnership, limited liability company (LLC) , or corporation.

Need to Register a Business Entity?

Registered agents at Wise Business Plans offer you a wide range of business formation services to make it simple for you to incorporate a business and allow you to focus on other important tasks.

Register Your Craft with Our Business Formation Services

7. Find Funding for Small Businesses

Taking your crafts to a larger scale may mean you need financial assistance. Small or large, your business is up to you. However, if you struggle to raise the funds you need to start your business, you might want to consider a small business loan.

Today, there are many choices available. Keep in mind that what works for one craft business may not necessarily work for yours.

• Business loans: A new business owner may have difficulty obtaining certain loans, such as SBA loans, but if you’ve run your craft business for a while, you might be eligible for secured loans.
• Business lines of credit: It is more flexible than a standard business loan. A business line of credit gives you a set amount of money you can use to cover business expenses.
• Business credit cards: Those who are just starting out or who have little business experience should consider getting a business credit card. This could be a more accessible option for you.
• Equipment financing: Consider equipment financing if you need equipment to produce your crafts, such as sewing machines. This type of financing involves a lender lending you money exclusively for equipment purchases. This type of loan will have collateral, so it may be easier to qualify.
• Startup funding: Start-up funding is an option for new businesses. SBA microloans and business grants may be available to you. Today, crowdfunding plays a more important role in startup funding , especially for companies with fun products (like craft businesses).

After you have funding, expenses, or income, it is important to keep your personal and business expenses separate. Open a business bank account to do this.

Funding is a Problem for You?

8. get the right permits, licenses, and insurance.

Are you ready to get your hands dirty and do some paperwork? To start your craft business legally, you will need the necessary licenses, permits , and insurance.

License requirements vary by location, business structure , and type of business. There could even be multiple license requirements at the federal, state, and local levels.

When starting a craft business from home, you’ll need to look into home business licensing and restrictions and online seller licensing if your business involves selling crafts online.

If you plan to hire some employees to help with your craft business, you will also need an employer identification number (EIN) . Among other things, you need an EIN for tax purposes. Although you don’t think you’ll hire workers anytime soon, getting an EIN offers other benefits that are worth considering.

Last but not least, you should obtain business insurance. This is always a good idea, especially if you have employees.

Do you need a Business License for Craft Business?

Wise business plans have eased the process to obtain a business license for craft, which is generally needed to operate a craft business.

Let Wise Help you to Get your Business License for Craft

Business Plan For Handmade Crafts by Wise Business Plans

“Most people enjoy having a few one-of-a-kind items in their wardrobe and being able to corroborate on the details of a special hat or accessory while it is being created,” said Joseph Ferriolo, Director of Wise Business Plans.

“At Wise, when crafting a business plan for handmade crafts , we consult with the client every step of the way to make sure that all details are correct and the interests and unique ideas of that client are included.”

SBA Business Plan

Wise Business Plans specializes in helping small businesses present an SBA plan to raise capital, define specific business goals, and guide owners in meeting market demands, including the tools needed to manage a thriving business. Each unique millinery business plan  is offered at an affordable price, with an option for a free revision.

Business Plan For Handmade Items

“Partnering with Wise Business Plans to create a business plan for handmade items that leads to sustained future profits and ensures a quality long-term business life can allow millinery entrepreneurs to relax and enjoy the creative side of their business,” said Ferriolo.

Looking for business plan samples? You can use our sample business plans to create a plan that looks just as good as our real-world business plan examples .

Wise Business PlansWise Business Plans (www.wisebusinessplans.com), staffed with professional MBA Business Plan writers , researchers, and financial experts, is a trusted partner for businesses across a broad spectrum of products and services.

Our mission is to empower our clients to make the best possible business decisions, boost company performance and facilitate their funding success by laying the groundwork for strong businesses that excite, inspire and retain talented and exceptional employees.

Other Major Business Services for Craft Business

Do you want to start a craft business? As a client of Wise Business Plans, you’ll receive both a quick and easy guide for starting your craft business and assistance for every step along the way, including funding, registering or licensing a business entity, branding, and marketing.  Following are our main services

• Business Marketing
• Small business loan
• Business Credit Cards
• Logo Business Branding
• Business Entity

Wise business plans also offer a  net 30 account application . A Net-30 account allows you 30 days to pay the bill in full after you have purchased products. Managing your business finances is also easier with Net 30 accounts.  Apply for your net 30 business accounts now

Access our free business plan examples now!

Hire a business planner now.

To start a craft business, begin by identifying your niche and target market, creating a business plan, determining your pricing and costs, setting up an online presence, and developing a marketing strategy. It’s also essential to comply with any legal and licensing requirements.

While having a particular skill or talent in crafting can be advantageous, it’s not always necessary. You can start a craft business by exploring various crafts, learning new skills, or collaborating with artisans who possess the skills you need.

The capital required to start a craft business can vary depending on factors such as the type of craft, scale of operations, and your business goals. It’s important to create a budget and estimate the costs of materials, tools, marketing, and other expenses to determine your initial investment.

Selling crafts online offers a wider reach and potential customer base, while physical stores provide opportunities for local sales and direct interaction with customers. It’s beneficial to consider a multi-channel approach by having both an online presence and exploring local retail partnerships or craft markets.

To stand out from competitors, focus on creating unique and high-quality crafts, offering personalized or customized options, providing excellent customer service, and leveraging effective branding and marketing strategies. Find your unique selling proposition and showcase it to attract customers.

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How to Start a Craft Business in 9 Steps

Want to earn money selling your crafts? Here’s how to start a profitable craft business in 9 steps.

If you’re blessed with a knack for taking a raw material—wood, wool, wax, you name it—and turning it into something beautiful, you’re lucky. Research shows crafting can reduce stress, build self-esteem, and promote healthy aging.

Beyond the health benefits, crafting can offer a chance to make money. As of 2022, the global handmade items market was valued at more than $752 billion, and the industry is forecast to grow at an annual rate of 9.1% between 2023 and 2028.

If you have a passion for creating, launching your own craft business can allow you to enter a growing industry and earn money doing something you love. Here’s your guide for how to start a craft business.

How to start a craft business

• Conduct market and audience research
• Design your products
• Decide where to sell your products
• Create your brand identity
• Create a marketing plan
• Plan your business finances
• Form your business
• Purchase supplies and make products
• Set up your online store

Starting a business is a lot of work. You’ll need to acquire new skills, expand your knowledge base, and build your professional community. 

As a skilled craftsperson you already possess vision, dedication, and attention to detail, all qualities that will serve you well as an entrepreneur. Follow these nine steps to develop your craft business plan and start earning money selling your products.

1. Conduct market and audience research

Market research involves gathering data about your target customers, your competitors, and the potential market demand for your products. You can read competitor websites, consult trade journals, and browse industry blogs for ecommerce and small business trend reports relevant to your target market.

This research also helps you define your target audience and gather information about your target customers’ desires. You can use this information to create your product line, develop your brand identity, and plan marketing outreach. 

You can refine your initial ideas as you conduct market research. For example, if you make wooden birdhouses, you might identify your target audience as homeowners between ages 40 and 75 who live in the countryside or suburbs and have an interest in wildlife. Further research might tell you that a specific subset of this demographic—women aged 55 to 75 in the Southeast and Midwest—purchases 70% of all novelty garden products, and 20% have an interest in birding. You might take this smaller demographic group as your target audience, further research their needs and purchasing patterns, and use this information to develop your brand identity and initial product line.

2. Design your products

The next step is designing your product line. To maximize your chances of success, build your products around the needs of the target audience you identified in your market research. You can also look for gaps in competitor offerings. If birding message boards are flooded with queries about where to find birdhouse replicas of famous buildings like the Chrysler Building or the US Capitol, you might offer these products to take advantage of the unmet market need.

Know if your products or industry has regulations you must follow in order to manufacture or sell them. For example, food safety standards, and soap and cosmetic guidelines and regulations outline the best practices for making and selling these goods to the public.

3. Decide where to sell your products

Many craft business owners sell at local craft markets or through partnerships with local merchants. Others join an online marketplace like Amazon Handmade or Etsy. 

You can also start an online craft business by launching your own online store. You don’t need an expensive and complicated website to get started. You can set up a Shopify store using a free theme, customized with your photos, fonts, and colors. 

Select a website theme that matches your business and showcases your products. You can also sell directly through social media like Instagram, Facebook, and TikTok with Shopify.

Once you’ve made a plan, estimate the costs associated with selling on each platform and choose the best option for your business. 

4. Create your brand identity

Your brand identity is your company’s messaging and visual style. It includes your business name, logo, typography, color scheme, voice and tone, and brand imagery. Think of it as a graphical and narrative representation of your company’s unique personality. 

Business owners use market research to develop brand identities that both reflect their company values and resonate with their target audiences. If you sell handmade sporting gear to a target audience that values personal challenge, adventure, and novelty, you might select a bright color palette and a bold visual style. If you sell aromatherapy candles to an audience seeking tranquility, you might opt for soothing pastels and low-contrast images. 

5. Create a marketing plan

A marketing plan is a strategy for getting your products in front of potential customers. Although you will continue to refine your marketing strategy over time, creating an initial plan can help you estimate your marketing budget so you’re ready to hit the ground running after launch. 

The plan includes your marketing goals, key messages, and marketing channels, such as social media, email, online advertising, and influencer marketing. If you plan to use social media sites, you can also set up social media accounts for your business during this stage.

Some ways you can consider marketing your new business include:

• Social media marketing
• Email marketing
• Collabs and influencer marketing
• Public relations and earned media

6. Plan your business finances

Financial planning is essential to running a profitable business. It involves estimating your expenses, pricing your products, and calculating your profit margin. If you plan to approach potential investors or apply for a small business loan , you’ll also need to create a formal business plan .

Consider the following types of expenses at the outset:

• Startup costs. The cost of licensing fees, necessary equipment, and initial marketing and branding investments.
• Direct costs. The cost of craft supplies, packaging, shipping, and any other costs associated with making a product and completing an order.
• Overhead costs. Software licensing expenses, marketplace selling fees, marketing costs, insurance, and other recurring expenses associated with running your businesses.

Once you’ve estimated your expenses, you can use this information to price your products. This process has three steps:

1. Calculate the direct cost of each product

2. Factor in overhead costs and startup expenses

3. Apply a markup

You determine your product costs by adding up expenses for materials, any overhead , and your startup costs, or how much it costs to get the business up and running.

Determine your selling price by adding a markup. This is your profit, which typically ranges from 20% to 100% of the item’s cost to produce. You can use a profit margin calculator to determine your markup. 

Check your price against rival offerings to see how they compare. You may need to adjust them based on what you find or how the market responds to your product and price. If sales are disappointing, resist the urge to simply reduce your markup to be more competitive—if you do, you risk taking a loss on every sale. Instead, see if you can reduce overhead or production costs. If you can’t, you might be comparing yourself to the wrong businesses. Look for competitors selling premium products at a price comparable to yours.

7. Form your business 

The next step is forming your craft business. This involves selecting a business structure , such as a sole proprietorship or a limited liability company ( LLC ). Consult your state’s website—usually the Department of Revenue and Taxation page—to determine if you need a business license or to register your business. 

In some cases, your additional obligations will depend on your business entity type. Many states don’t require sole proprietorships to obtain business licenses, but you’ll still need to register your business name using a doing business as (DBA) to open a business bank account, accept payments, and keep your personal and business finances separate.

If you plan to sell outside of our own state, you may also need to register and be prepared to remit sales taxes to those states or regions. 

8. Purchase supplies and make products

Once you’ve formed your business, you're ready to start making products. Research wholesale suppliers, select vendors, and order the supplies you need to launch.

The number of products you’ll need to make will depend on your business model and estimated sales volume. If your products are custom or made-to-order, you might only make enough to use in high-quality product photographs. If you plan to sell at craft fairs or in brick-and-mortar stores, or you anticipate large order volumes, you may decide to build up an inventory before launch. 

9. Set up your online store

If your plan is selling crafts online, your final pre-launch step is setting up your online store. You can use an ecommerce platform like Shopify to design an ecommerce website, list your products, and accept various payment methods . You can also list and sell your items on an online marketplace like Amazon Handmade or Etsy.

Sell your crafts on TikTok

Shopify comes with powerful tools to help you tell your brand story and create TikTok in-feed ads in minutes. Make sales on TikTok and manage all your orders, returns, and payments from Shopify.

How to start a craft business FAQ

Can you start a craft business with no money.

Craft businesses can have low startup costs, but at minimum, you’ll need to factor in equipment and materials expenses. If you plan to sell products online, you’ll also need to pay for setting up an online store or listing your products in an online marketplace.

Do I need a business license to sell my crafts?

Whether you need a business license to sell crafts depends on the legal structure of your business and applicable state and local laws. Consult your state’s Secretary of State or Department of Revenue and Taxation for specific guidance.

Can I sell my crafts at local craft fairs and markets?

Yes. You can sell products at local craft fairs and markets, on an online marketplace, or through your own online store.

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35 Easy Craft Business Ideas

• Last updated on: September 19, 2023

This post may contain affiliate links which means we may receive a commission if you purchase through our links. Please read our disclosure  for more info.

Want to start an Etsy business but don't know how? Our students have earned over $500,000 selling printables on Etsy. We'll teach you the basics with this Free Workshop .

Looking to turn your crafting hobby into a profitable online business? Now is the perfect time to start your entrepreneurial journey.

If you’re feeling stuck on what products to create, fear not! We’ve compiled a list of 35 easy-craft business ideas that are sure to inspire and get you on your way to success.

From handmade jewelry to woodworking and everything in between, there’s something for everyone on this list.

So, let’s dive in and discover your next craft business venture!

What Do I Need to Start a Small Craft Business?

Starting a crafting business requires more than just diving straight into crafting. Without a solid foundation, you risk ending up with piles of inventory and no one to buy it.

It’s important that you take the time time to establish a strong foundation to build a profitable business before jumping into the creative aspect of your business.

Find a Niche

One of the first things you need to start a craft business is an idea. We will detail some easy-craft business ideas to start below, but let’s take a minute to consider why some ideas are better than others.

As the site  Oberlo  points out, your business idea must identify a gap in the market . Some categories are incredibly oversaturated, meaning there are too many sellers in that space.

As you start your small craft business, find a way to make yourself stand out from the competition by either finding an untapped niche within your market or creating a specialized product that other sellers are not selling yet.

Know Your Audience

After you develop your idea, identify your audience. Who will buy your product? What are some key characteristics of this group, and where do they shop?

Identifying your target audience won’t just help you hone your craft idea; it will also help you decide where to sell your items.

For example, does your client base shop on Etsy, or are they more likely to shop at a Shopify store? Is it better to sell print on demand or create each item by hand?

Legal Requirements

You’ll also need to find out the legal requirements in your city and state before you launch your craft business. Some cities will require that you have a business license. Some states will require you to have a seller’s permit.

Find out what the requirements are in your city and state before you launch your business; doing so can help you avoid potential headaches and obstacles down the road.

Another legal concern is copyright infringement. Make sure that you’re not infringing on someone else’s trademark.

If you need help, check out this  previous post . While it refers explicitly to Etsy, all the copyright rules apply to anything you might sell online.

What Craft Business Should I Start?

Understanding the basic requirements is important, but the ultimate question still remains: what type of craft business should you start?

The answer is anything you want!

The key is to find something that you’re passionate about as that’s what is going to keep you going when things get tricky.

Running your own small business isn’t all sunshine and roses. There will be times when things get complicated.

However, the most successful business owners are the ones who push through because they love what they do and they’re passionate about it.

Easy Craft Business Ideas

Speaking of craft business ideas, it’s worth noting that many successful ventures are built on existing skills and hobbies. In fact, several craft businesses on our list have been started by individuals who have simply turned their passion for crafting into a lucrative side hustle.

Rather than having to learn something completely new, you can put your existing skills and expertise to good use. So, whether you’re a master at knitting, love to sew, or have a talent for creating unique home decor, there’s a craft business idea that’s perfect for you.

Photography

Gift baskets, flower arrangement, 3d printing, sell craft accessories, resin crafts, make stickers, candle making, face painting, jewelry making, woodworking, glass blowing, leather crafts, holiday decorations, soap making, website creation, make patterns, create coloring pages, art lessons, costume creation, hair accessories, pet accessories, knitting & crocheting, create cards, wind chimes, calligraphy, temporary tattoo business, upcycle furniture, sell succulents, sell bonsai.

Here’s our list of easy profitable craft business ideas to help you get started!

Photography may be a great option for you if you have a creative eye and can capture the perfect shot. On your next outdoor excursion, snap a few photos of wildlife in action or beautiful plant life and then create a partnership with a print-on-demand company.

You can take those photographs and sell them through print on demand without having to go through the hassle of fulfilling orders.

Some people have a knack for combining items into one cohesive and eye-catching package so starting a gift basket company may be the perfect fit.

Whether you specialize in creating themed baskets for holidays, weddings, or corporate events, there’s a market for your unique and personalized creations.

Along the same lines as creating gift baskets, flower arranging could be the perfect craft small business idea for you if you have an eye for matching colors or understand how to combine chaos into something that looks great.

Consider loaning your services to friends and family first and then growing the business from there.

A 3D printing shop is relatively easy to run, though it will take some time to launch. The plus side of running a 3D printing business is that it requires a skill that only some people have. If you have the skill (and the equipment), use your talents to run a profitable business.

You can sell custom 3D products or create something unique with your 3D printer that people cannot get anywhere else.

Call this craft adjacent, if you will. If you’re not crafty but you are entrepreneurial, consider selling craft accessories online. One of the biggest markets on Etsy isn’t crafts but craft accessories.

That means parts to help people make jewelry, fabric that’s hard to find, and knick-knacks that crafters use for their works of art.

This idea will require you to source the materials, but once you get reliable wholesalers, it’s a business model that you can scale quickly.

One of the easy things about resin crafts is that once you have the mold, you can consistently make as many of a product as you want. Plus, you can vary the colors to create multiple items for your inventory.

Resin is a basic material to work with once you learn, which makes this a great material to start a craft business with.

Resin can create some interesting arts and crafts, including keychains, figurines, picture frames, cutting boards, and coasters.

Stickers are a way for people to express their true personalities, and what works for one person may not work for the other. Selling stickers is a very profitable business.

Stickers of all kinds sell on Etsy every day. There are planner stickers, stickers for teachers, holiday stickers, and expressive stickers for things like reusable water bottles and laptops.

You can create stickers and sell them online or create digital downloads that people can purchase and print themselves.

The Sticker Plan

Want to take a course on how to create stickers for planners? Take the course The Sticker Plan by Mim ! Create unique, perfect planner stickers from scratch, even if you’re not an artist or tech-savvy!

DIY Craft Small Business Ideas

Some creators like getting their hands dirty. The following ideas require a hands-on touch.

According to the  U.S. Chamber of Commerce , candle sales make roughly $2.3 billion annually. What you know is there’s a market out there. The next question is, how can you create your niche? 

For example, some candle businesses come up with “ men’s scents ” such as bacon, or smoke and musk, which is a woodsy, outdoor smell.

With a craft like candle making, a niche is everything.

Your business idea does not have to be online. In fact, you may find a more captive audience in your town. Face painting is an easy skill to learn if you have an artistic hand.

Train yourself to draw things like Paw Patrol, Pokémon, or other modern popular characters, and you’ll have moms and dads lining up down the block for your services at your next kid party.

Jewelry making isn’t an easy choice, especially since there are a lot of competitors in this market. However, it’s worth a shot if you have a unique idea.

People are always searching Etsy for a one-of-a-kind piece of jewelry that speaks to them.

Jewelry businesses on sites like Etsy become successful when they stick to their niches and create a following of loyal customers.

Why not turn your hobby into a lucrative side hustle? Woodworking skills are becoming rarer and rarer, and so are the people with the tools necessary to complete those highly skilled tasks.

If you’re a woodworker, there’s likely a market for your skills either in your neighborhood or online. All you have to do is advertise.

Glass blowing is a skill that not everyone can manage. You can create works of art in the glass medium or useful items like vases and martini glasses.

If you’re into jewelry, then unique, custom-made glass beads might be a great business idea.

If you’re skilled with leather, creating leather crafts may be a side business for you. Whether you’re making things like purses, wallets, or jewelry or simply engraving leather items, there are many directions you can go in the leather category.

Use your knowledge to create something beautiful.

For some people, the holidays are the best time of the year, and they love to decorate their homes for every season. That’s what makes original holiday decorations so popular.

No one wants to be the fifth house on the street with the store-bought Santa. They want the Santa that everyone else admires. If you’re crafty, making original holiday decorations that you sell in your community or online in a marketplace like Etsy can be a great side business.

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Small Craft Business Ideas from Home

For some small business owners, the ideal craft business is one they can do from the comfort of their homes. With school and kids and life, it’s challenging to find the time to start your own business if you have to leave the house.

The following ideas can easily be done from home.

Whether you’re trying to make designer soap or small hand soaps that kids will love, soap-making is a great craft that you can do in just about any kitchen.

With a little research and a bit of online shopping, you can learn how to make soap and get all the ingredients delivered to your door.

Soap making is the perfect small craft business idea you can do from home.

For the tech-savvy crafter, consider creating websites. You can market your skills and services on sites like Upwork and Fiverr or start a small business website.

Some website designers sell their creations to companies like Wix, Shopify, or WordPress, which then use those designs to offer options to those who use their services.

Some knitters, sewers, crocheters, and clothing designers come up with amazing and unique creations that no one has ever thought of before.

Create crochet patterns of your favorite cartoon characters or design cross-stitch patterns with sassy sayings.

If people often comment on your unique designs, maybe it’s time to sell them. Selling patterns through digital download on sites like Etsy isn’t just easy, it can be lucrative too.

Artists have found a terrific way to sell their art through coloring pages. They draw their pattern and then create a digital file they sell on Etsy or in their Shopify online store.

Some artists sell single coloring pages, while others sell books . Either way, they’ve found a great side business to help supplement their art.

If you don’t want to create, why not share your skills with other people?

If you’re trained in art or are incredibly skilled and creative, teach other people to do what you do.

Many people out there want to be craftier, and with the explosion of Zoom and other online meeting tools, you can meet with your students virtually anywhere.

There’s a seller on Etsy who  creates  amazing sushi costumes for Halloween. She’s used her creativity to create her own business and has slowly grown that business year after year. The costumes work for kids or pets. Plus, they’re all handmade, so they’re quality work.

The creator has found a niche, and because her work is high quality, she’s able to create an excellent stream of side income for her and her family.

Maybe you’re a baker extraordinaire. If so, why not start a cottage kitchen and bake up some goods? All it takes is a good recipe, a little love, and a lot of desire. Sell your goods at your local farmers market or in your neighborhood group.

While this is a time-consuming craft business idea, it can also be a great side business. Remember, it’s not work if you love what you’re doing.

Simple Craft Business Ideas

In some instances, simple is the best craft business idea of them all. Below are some simple craft business ideas you can get started on today.

One of the great things about creating a hair accessories craft business is you get to put your personality into it. Create bows, hair clips, ribbons, and more that depict your personality, and then sell them on Etsy.

This one is an excellent category because if you’re looking for your ideal customer, all you have to do is look in the mirror.

Pet accessories are similar to hair accessories, except they’re for pets. In today’s market, many people spend as much money on their pets as they do on their children. In some cases, their pets are their children.

That means there’s a market for cute pet accessories. Consider creating designer pet collars, cute bows, or leashes that light up at night. You may just find the right niche for your brand.

Turn your hobby into a side hustle. Many knitters and crocheters can’t find enough people to give their projects to. After handing things out to the family, they’re still producing more than they’re giving away.

That’s why creating a side business for your knitting or crochet projects is your next step. You’ve already created the product; now, you need to go through the steps of selling it.

Like knitting and crocheting, embroiders also seem to have excess items to give away. Instead, supplement the money you spend on your hobby by selling some of that excess product.

Make cute, framed embroidery for someone’s nursery. Offer up custom-made products for a new home. There are many ways to use your embroidery skills and turn them into a profit.

If you’re a jokester and have a way with words, or you can string together beautiful pieces of prose that bring a tear to the eye, then creating greeting cards just may be an easy craft business idea for you.

Many times, the message is just as important as the card. Take some time to learn a graphics program like Canva. There’s a free version that will allow you to access basic images and help you design your cards.

Once you have some ideas, get those creative juices flowing. You’ll have a new business in no time!

Wind chimes are a great way to upcycle used products into something that both looks and sounds amazing. Take something like old tiles, broken pottery, metal pipes, silverware, beads, and more, and turn them into pieces of art and music.

Pinterest  has some excellent windchime craft ideas to get your creative juices flowing.

Create colorful and eye-catching works of art through tie-dye. It’s a fashion trend that never seems to go entirely out of style.

If you like creating these magical works, you know you can never find enough people to give them to. Much like knitting and crocheting, it’s time to start selling your products.

Consider expanding your offerings to include not just tie-dyed shirts but also socks, tank tops, scarves, and more.

Easy Business Ideas That Make Money

Below are some other craft business ideas that will help supplement your crafting habit or help you add a little extra cash to your monthly bottom line.

You only need a set of nice pens and a skill that few people have. Either you or someone you know has horrible penmanship. It’s more common than not. But even people with lousy handwriting want to send out beautiful wedding invitations, new baby announcements, and anniversary invitations. That’s where the calligrapher comes in.

Sell your skills and reap the rewards.

Bath bombs are a category you need to be careful with since the market is oversaturated. That said, bath bombs can be a very lucrative craft business.

That’s because the bath bomb costs pennies to make but sells for up to $10 apiece. In other words, the markup is huge.

If you enter the bath bomb arena, consider creating cute shapes with your bath bombs or unique scents. That will help differentiate you from the rest of the market.

Anyone with an artistic vision can create temporary tattoos and then sell them on sites like Etsy or in their Shopify store.

On the site  Starter Story , Anslea talks about how she started a temporary tattoo business out of her van.

[WikiHow has a video on how to create custom temporary tattoos  here .]

Everyone has driven down the road and seen someone giving away an old piece of furniture for free. Some people drive by and don’t give it a second thought. Others start thinking about how to make that furniture into something more.

If that’s you, then upcycling is in your future. Take that old chair and turn it into a modern work of art. The best part of this small business is that it’s mostly profitable. Usually, you can get a piece of furniture for cheap and sell it for ten times as much.

One of the more interesting things about succulents is that they can multiply. In most instances, if you take a clipping from a succulent and plant it in a new container, a new succulent will take root. That makes a succulent business easy to start and grow…literally and figuratively.

If you have a green thumb and the time, consider creating a succulent business. You can make beautiful arrangements with unique planters you find at your local thrift store or sell them in bulk.

Take your green thumb a little further and sell bonsai. Shaping bonsai is a Japanese art form that creates beautiful works of art.

With a bit of training, patience, and skill, you can create something few others can, and that can be very lucrative.

When you sell print on demand, creating a custom t-shirt business can be both lucrative and easy to run in your spare time. That’s because once you create the designs, you simply list them online and allow the print-on-demand companies to fulfill the orders.

If you have a knack for pithy sayings or cute t-shirt designs, then selling shirts may be your craft destiny.

Whether you create t-shirts, sell your knitting patterns, or do something hands-on like woodworking, there’s a craft business out there that’s just waiting for you to find it.

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11 Questions to Ask Yourself Before Starting a Craft Business

Have you ever thought about starting a craft business? If you are skilled in a particular craft then being your own boss and setting up a crafting business can sound tempting.

But could you really make it work?

After all, starting any business and getting it off the ground can be incredibly tough.

However, if you are successful then taking the plunge into entrepreneurship and making money from your crafting hobby could be the best thing you ever do!

Before you jump in, here are 11 essential questions to ask yourself before starting a craft business.

How to start a craft business

If you are thinking of starting a handmade craft business then be sure to put some thought into the following points before you get started.

1. What sort of crafts are you going to sell?

To run a successful craft business you should focus in on one particular craft technique or niche.

For example, you could start a crochet business OR a glass painting business, but you probably wouldn’t do both as those products don’t “go together” so it would be confusing to your customers

Similarly, you will probably struggle to make sales if you just make whatever you feel like using whatever craft you fancy on the day. A mismatched shop with no focus will not help your sales.

Try to hone in on your particular crafting skills and interests.

Find out what you enjoy the most, then think about if you will be able to make enough products to make it a feasible craft to do for profit.

2. How are you going to sell your handmade crafts?

It’s no good just to make all your wonderful products. You need to be able to sell them too!

There are many different options available to you to sell your handmade crafts.

A few examples are:

• Craft fairs
• Selling wholesale to shops or boutiques
• Selling online using Etsy
• Selling online using Amazon Handmade
• Selling online through your own website
• Using social media such as Facebook or Instagram
• Renting space in a shelf-for-hire shop
• Opening your own independent shop

Where you choose to sell will be dependent on the type of craft you are selling, what’s available in your area and your own personal preferences.

Top tip – don’t try everything at once. Pick one or two ways to sell and make them profitable before considering another sales avenue.

3. How much time do you have to spend on your business?

If your products take you 3 hours to make and you only have 6 hours per week to dedicate to your business then you probably aren’t going to make much money!

If you’re going to be fitting your craft business around a full time job or other commitments then you need to be realistic about the amount of time you’ll be able to dedicate.

4. What will the startup costs be?

Starting a craft business can be expensive especially if you need to invest in materials and machinery.

A vinyl cutting business will probably involve getting a Cricut or Silhouette machine and all the accessories which will set you back around £500.

There will almost certainly be additional costs too such as registration fees for craft fairs, getting a logo, website and business cards designed, creating your initial product inventory, a camera to take product photos, photo editing software, bookkeeping software, hiring an accountant, advertising, insurance and more.

There is also a small fee for registering your business as a limited company with HMRC.

It’s easy to underestimate business startup costs but beware; this could mean the downfall of your craft business before you even begin.

5. How much profit do you need to make and is it feasible?

Are you venturing into creating a business because you need to generate more income?

If so, be sure to work out how much you need to make and then determine if this is feasible based on your estimated profit margins per sale.

If you desperately need to bring in lots of money quickly, for example if you have recently lost your job and need to make up your wages, then starting your own business probably isn’t the best thing to do right now as it may take some time before you start seeing any profit.

6. Do you have space to run a craft business?

This is an important question that many would-be entrepreneurs often overlook!

Do you have space in your home to run a craft business?

You’ll need work space as well as storage space for your equipment, materials and inventory. Plus all the little extras like postage materials, craft fair tables/banners/etc., advertising materials and possibly a computer.

If you’re making something large like woven baskets or woodwork items then they’ll take up loads of space so be sure to think about where you are going to put everything!

7. How will you post your products?

I love making shadow box crafts and once thought about setting up at Etsy shop to sell them, but didn’t as I was too worried about the postage.

If your product is fragile (e.g. glass photo frames) then perhaps try posting several to yourself or family members to see if they arrive in one piece.

If you’re not able to post your products due to their fragility then you will need to focus on selling locally instead which limits your target audience, especially if the market in your area is already saturated for that type of product or if there is little demand for it.

8. Do you enjoy interacting with people?

An inevitable part of starting a craft business is dealing with people.

This could be talking to visitors at craft fairs to encourage them to buy your items, or doing digital customer support through Etsy or your own website.

If the thought of regularly interacting with the general public fills you with dread, perhaps a craft business isn’t right for you.

You will need to develop a thick skin as you’re sure to encounter some negativity along the way, but there will also be lots of positivity too.

It’s always great to have a stranger compliment you on your work. On the other hand, it can be very demoralising if someone is mean.

9. Are your family supportive of you starting a craft business?

Starting a business will take lots of time to get going, particularly in the beginning as you have to build your initial inventory and set up your ordering system, website, social media pages, etc.

This usually means late evenings and busy weekends focused on building your business.

Before deciding to go ahead, have a frank conversation with your family to check that they are okay with you spending your time in this way as it will inevitably impact them.

They may have to prepare themselves for spending less time with you for a while.

10. Are you willing to learn new skills?

Being a business owner is an excellent opportunity to learn new skills.

You’ll need to become a marketer, photographer, bookkeeper, customer support agent, organiser and promoter.

Of course, you could hire out some of those costs but if you’re trying not to spend too much in the beginning then it will all come down to you!

11. How committed are you?

As with any business, starting a craft business can take a while to start being profitable.

You might end up working for months without ever turning a profit, especially if you need to keep investing in materials, equipment or training so you can learn new skills.

It also take a while to get your name out there, so it could be weeks or maybe longer before you make your first sale.

I don’t say this to discourage you, merely to prepare you to the fact that it might not be an instant success.

Are you committed enough to the idea of running your own business to spend many, many hours on it with potentially no immediate return?

Should you start a craft business?

There you have it – the best questions to ask yourself before starting a craft business.

Be sure to take time to carefully research and plan your answers to each one.

A strong plan in the beginning truly makes a difference to your success so it’s certainly worth the effort to answer these questions thoroughly and accurately.

Your answers can be used as the basis of a business plan to help you start making your craft business dreams a reality!

So, what are you waiting for?

Grab your favourite notebook and pen and get started!

How to Start a Profitable Craft Business from Home

Do you want to start a craft business at your home or on a small scale? If yes, you are in the right place.

What is a Home-Based Craft Business?

A home-based craft business is a venture that involves creating and selling handmade products from the comfort of one’s home. This type of business typically revolves around crafting unique and artistic items, such as handmade jewelry, home décor, art pieces, textiles, or personalized gifts. The artisan or craftsperson operates the business entirely or primarily within their residence, utilizing a dedicated workspace for crafting, managing orders, and handling administrative tasks.

Key Features of a Home-Based Craft Business

Home Workspace: Crafters set up a dedicated workspace within their home where they can create and design their products. This space is organized with tools, materials, and equipment needed for the crafting process.

Flexible Schedule: One of the advantages of a home-based craft business is the flexibility it offers. Crafters can choose their working hours, allowing them to balance their business with other responsibilities.

13 Steps to Start a Small Craft Business

1. finding the right niche.

Selecting the right niche is the most critical decision you need to make while starting a craft business. Start by identifying your craft niche. Whether it’s handmade jewelry, custom home décor, or personalized gifts, choosing a specific craft allows you to target a defined market and stand out in the crowded online space.

2. Research the Market

Before you finalize the product you are going to sell your customers, you must check whether there is a demand for that product in the market or not. Do some market research with the local market to understand the feasibility of making the craft product you have conceived.

3. Create a Craft Business Plan

If you are seriously interested in making good money in crafts making business, you must have an effectively planned business plan. Take some time off and write your home-based craft business plan. You can get help from a local professional business plan writer or online business plan-building software.

Try to write in detail covering these aspects in your craft business plan so that it can work as a roadmap for future success.

4. Create a Unique Brand

5. register your craft business.

If you want to run a headache-free business, it is better to register your business. Different countries have different terms and formats for registering a business. Check with local authorities to understand the options you have in forming a company. For individuals living in the United States, forming an LLC brings you certain added benefits like protecting your assets.

6. Licenses & Permits for Craft Business

7. bookkeeping.

If you want to keep your crafts business financially organized, you must have a properly planned bookkeeping method. If you are experienced in bookkeeping it is fine. In that case, having reliable accounting software will be enough. But if you are not confident, hire a professional who can do the work best.

8. Set up the Purchasing Policy

9. create workspace, 10. craft a strong online presence.

Create an online platform to showcase your crafts. Consider utilizing online store platforms like Etsy, Shopify, or your website to reach a global audience. High-quality photos, detailed product descriptions, and a user-friendly interface are key to attracting customers.

11. Implement Secure Payment Methods

12. price your products, 13. promote your crafts making business.

The key to being successful in the crafts-making business is your ability to network. You must create a website with good-quality photographs uploaded there.

Finally, it is your hard work and dedication that will decide the scale of success. If you are passionate about making crafts, surely it will be a huge advantage to becoming a successful craft business owner.

Frequently Asked Questions

Is craft business profitable, what types of products can be sold in a home-based craft business, how can i set up a dedicated workspace for my craft business at home.

Creating a dedicated workspace involves designating an area in your home for crafting activities. Organize it with the necessary tools, materials, and storage. Ensure good lighting and make the space comfortable and inspiring for the creative process.

Can I sell my handmade products on multiple online platforms?

How do i price my handmade products, what are the essential steps for starting a craft business from home.

Key steps include identifying your craft niche, conducting market research, creating a unique brand, setting up a dedicated workspace, establishing an online presence, determining pricing strategies, and implementing efficient shipping and customer service.

How can I promote my home-based craft business?

Are there legal considerations for a home-based craft business.

Editorial Team at 99BusinessIdeas is a team of experts led by Rupak Chakrabarty with over 25 years of experience in starting and running small businesses. Started in 2010, 99BusinessIdeas is now one of the largest free small business resources in the industry.

21 Profitable Craft Business Ideas For 2024

The crafts industry is booming and if you are looking for a side hustle you can do from home, crafts are a good place to start.

There are many profitable craft business ideas out there but if you don’t have something specific in mind, it can be hard to get started.

In this article we will look at the 21 best creative business ideas to make money doing what you love.

We’ll look at what crafts are in high demand and which handmade items sell the best at craft fairs and online marketplaces such as Etsy.

This post contains affiliate links. Please read my  Disclosure for more information

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What Craft Business Can I Start?

Take a look at the list below to see if there is a craft business that speaks to you and that people want. 

The good news is that there are many profitable craft business ideas out there.

From a photography business where you sell your iPhone photos online to hand-sewn hair accessories for dancers, there is something for everyone.

Many handmade crafts can easily be made in your free time and sold online or on social media to make a bit of extra income.

The best way to find one that is a good fit for your skills and the market is to do some research.

Try looking for businesses in your area, or niches within your area, that are experiencing growth and see if you can adapt or improve upon what they are doing.

Sometimes, the best way to find the right business idea is to brainstorm with friends and family.

What do they think you are good at?

What do they look for when buying handmade gifts for people?

What are the best sellers at craft fairs near you?

Once you have a few viable ideas, it’s time to investigate your marketability and feasibility.

This involves seeing how much demand there is for the products you want to sell and what the best ways to sell them are.

Once you have found the perfect craft business for you, look for online courses to learn as much as you can about your chosen venture.

Don’t forget to check out YouTube for free tutorials and ideas.

21 Best Craft Business Ideas

First of all let’s look at the different DIY business ideas that anyone can do with a little bit of training and some creative ideas.

Soap making is a fun, easy, and rewarding process that can make you money while providing you with a high-quality product without chemicals or perfumes.

There are many different recipes for soap, so you can find one that fits your needs and preferences and of course, one that sells!

Many people love buying handmade soap as a gift for special occasions or for personal use and this can be a really lucrative small craft business to start.

You will need to gather some supplies, including molds to shape the soap in, and some basic supplies such as coconut oil or shea butter and lye.

Click here to read everything you need to know about starting your own handmade soap business.

Handmade Candles

Starting a candle making business can be an enjoyable, profitable experience and is a good idea if you want to set up an online store selling your products.

Non-toxic, natural candles are very popular and you can create all different shapes and scents of candle to capture a wide audience.

In fact, in the last few years, candle consumption has grown by an average of 11% according to data from The European Union.

Making bath bombs to sell is a fun, easy way to add some extra excitement to bath time and are one of the best craft businesses to start as the profit margins are really high.

You can make over 50% profit on every bath bomb you sell and they are really popular around the holidays.

One bath bomb costs around $3-$4 making them an awesome teacher gift idea or stocking stuffer.

With essential oils, you can make all different kinds of bath bomb using the same basic recipe.

If you are looking for an easy craft to make in your own home that has low startup costs, then selling these popular gifts should be near the top of your list.

To get started selling bath bombs, take some time to look at craft shows or on Etsy for the most popular products and see how you can put your own personal touch on them.

Gift Baskets

If you are looking for a creative and profitable way to start your own business, a gift basket business is a great idea.

Gift baskets can be filled with all sorts of items, including food, wine, bath and beauty products, ornaments, and more. They make perfect gifts for any occasion, and there is a growing demand for them from consumers.

There are several things to consider before starting a gift basket business. You will need to decide on the types of baskets you want to create and the target market you want to sell them to.

You will also need to determine what type of supplies and materials you need, as well as what packaging will best suit your products. Finally, you will need to set up a website or find retailers who will sell your baskets in their stores.

Facebook is a great place to promote a gift basket business too.

Greeting Cards

If you’re looking for a creative way to make money, starting a greeting card business could be the perfect opportunity for you.

Homemade greeting cards are always in demand, and there are many ways to design and market your cards to make a profit.

You can sell your cards on Etsy or via your own store created with Shopify.

Starting your own sticker business is a great way to make money from home. You may not be aware but stickers for planners, for kids and for all kinds of sports and interests are really popular right now.

In fact, stickers may be the answer to the question, “what are the most successful craft businesses?”.

Why are stickers such as great craft to make and sell? First of all the demand is there. Second of all, there is not as much competition as there is for some of the other craft businesses that are more well known.

And lastly, there are so many different types of sticker business you can start that it is easy to find a niche that is not oversaturated. Once you have created your own designs that sell well, you can easily expand your business with new products in the same niche.

The other great thing about a sticker business is that you can sell them as both digital products and physical stickers.

Want to learn more about starting your own sticker business? I highly recommend the free masterclass by Mim Jenkinson .

She is a successful sticker store owner on Etsy and has tons of great tips and tricks to help you get started. You can also check out my interview with Mim here. 

Coloring Pages

In recent years, one way to make money that has become increasingly popular is through the sale of coloring pages and books.

While this may seem like a simple concept, there is actually a lot of work that goes into making and selling coloring pages . The first step is to come up with an idea for a page.

This can be something as simple as a picture of your favorite character from a movie or TV show, or it could be something more complex that requires more time and effort to create.

Once you have an idea, you need to start sketching out the details of the page.

You can sell your individual coloring pages on Etsy or even create coloring books to sell on an online shop such as Amazon Kindle Publishing.

Knitting and Crochet

Knitting and crochet are popular crafts that can be used to make clothing, blankets, and other items.

Many people like buying handmade knitted or crocheted items to give as baby shower gifts or wedding presents.

These heirloom items are extremely popular and can make you a good profit if you price your items right.

Here are some ideas for crocheted and knitted crafts that sell well:

How To Make Money Crocheting: 17 Crochet Business Ideas

How To Make Money Knitting: 31 Genius Ideas!

8 Quick Gifts To Knit In A Weekend

Wooden Toys and Crafts

Making wooden toys and other crafts is a great way to use your woodworking skills and create unique items that can be sold online or at craft fairs.

There are a few things you need to consider before starting, such as the types of wood to use, the shapes you want to create, and the finishing process.

You’ll need to have some basic woodworking skills and a workshop or space to create your products.

One of the best things about making wooden toys and ornaments is that you can use almost any type of wood.

For example, if you want a toy that’s sturdy and durable, then hardwoods like oak or maple are a good choice. If you’re looking for something a little more decorative, then softer woods like cedar or pine are a good option.

You can even make crafts out of scrap wood and turn trash into something profitable!

Here are some ideas for wooden crafts that sell really well:

20 Wooden Christmas Crafts To Make And Sell (For Profit)

38 Woodworking Projects That Sell

20 Best Wood Crafts That Sell At Flea Markets

DIY Christmas Ornaments

Christmas is a time for getting together with family, exchanging gifts, and of course, decorating Christmas trees.

It is also a great opportunity for all kinds of craft business ideas, one of the best being holiday ornaments. 

In fact, seasonal items are one of the most profitable crafts to sell.  

This year, why not earn some money by making your own Christmas ornaments and selling them online ?

There are lots of easy and fun projects you can do that require few specialized skills.

Personalized ornaments are very popular around the holidays and can make you amazing profits.

For example, a set of six plain ornaments bought for $5 can be turned into personalized creations for very little money and then sold for $10 a piece.

Bear in mind that you can expand this business to sell ornaments for different occasions such as graduations and memorials.

Natural Beauty Products

We’ve touched on how popular handmade soaps and bath bombs are but if this is your jam, don’t discount other beauty products that you can make at home and then sell for a profit.

In general DIY beauty products are one of the best craft businesses you can do from home.

Think of things such as body scrubs, lip balms and bath salts. You can find lots of great recipes on Pinterest and then with a little work and some cute jars and boxes, you have a wonderful new craft business idea!

Making and selling baby gifts can be a great way to make some extra money.

Popular items include blankets, booties, hats, bibs, and stuffed animals. You can use your knitting and sewing skills to make these cute items.

Another really popular item is baby teething necklaces that are made from food grade silicon.

These are easy to make and you can source the beads on Etsy or eBay.

When creating your own items, be sure to choose fabrics and colors that are baby-friendly.

You may also want to add personal touches such as embroidery or appliques.

Resin Crafts

Here is a popular hobby that can be turned into a profitable business very easily. 

Resin is a versatile material that can be used to create a variety of items, from jewelry boxes to home decor items such as trays and wall hangings.

If you’re interested in starting your own resin crafting business , there are a few things you need to know.

First, you’ll need to purchase the raw materials and supples. This includes resin, catalyst, mold release agent, mixing cups, stir sticks, and respirators. It’s also important to have a work area that is well-ventilated and free of contaminants.

Next, you’ll need to decide what type of products you want to make. There are many different shapes and sizes of molds available, so you can create just about anything you can imagine.

Here is a list of  21 Most Profitable Resin Crafts To Sell . 

Handmade Jewelry

There is something special about handmade jewelry. The pieces are often one-of-a-kind and they tell a story.

They can be worn to show off your personality or to commemorate a special event.

This is a great business idea because jewelry making offers so many different options and opportunities to showcase your artistic skills.

Handmade jewelry can be made from a variety of materials, including metals, beads, stones, and glass.

It can be simple or elaborate, delicate or bold.

If you can find a supply source that has great wholesale prices, you can make a nice profit with your handmade jewelry business.

Porch Signs

There is a resurgence of hand-crafted items, and people are looking for unique ways to show their personality, at home and away. 

That’s probably why one of the most profitable craft business ideas on this list is making and selling porch signs.

Porch signs are a great way to show your style while also providing information to guests. They can be used as an advertising tool or simply to share a message with your community.

There are many ways to make a porch sign. You can use wood, metal, or even fabric. You can also choose from a variety of fonts and designs.

The best place to sell porch signs is online either locally on Facebook marketplace or on a crafting site such as Etsy.

Mason Jar Gifts

Here is one of the best craft business ideas if you are looking for something quick and easy to start.

Mason jars are a versatile gift-giving option because they can be filled with a variety of items, depending on the occasion.

If you are looking for a side hustle idea and don’t consider yourself a really creative person, then selling mason jar gifts is one of the most lucrative business ideas to start.

You can create fantastic gifts in mason jars for all kinds of occasion, from the holidays to baby shower gifts.

Mason jars come in many different sizes, so you can find the perfect one for any gift idea. Here are some ideas for filling your Mason jars with gifts:

1. For the coffee lover in your life, fill a jar with coffee beans, filters, and a mug.

2. A jar of homemade cookie or cake mix is always a welcome gift.

3. Fill a jar with holiday treats like candy canes, peppermints, or chocolate Santas.

4. For the new homeowner, fill a jar with cleaning supplies like sponges, dish soap, and window cleaner.

Vinyl Crafts

There are many reasons why vinyl crafts are becoming increasingly popular. Vinyl is a versatile material that is both affordable and easy to work with.

In addition, vinyl can be used to create a wide variety of projects, from simple home décor items to intricate jewelry.

Vinyl is also a very durable material, which means that your finished projects will last for years.

Additionally, vinyl is available in a wide range of colors and designs, so you can find the perfect materials for any project.

If you are new to vinyl crafting, here are a few in demand projects to get you started:

• Personalized tumblers and glasses
•  Custom clothing such as baby bodysuits or t-shirts
• Laptop stickers
• Personalized tote bags for bridal parties

Floral Arrangements

Do you love working with flowers? Do you have an eye for coordinating colors and making arrangements look just-so?

A floral arrangement is a beautiful way to show someone that you care. Flowers can convey many different messages, such as love, appreciation, congratulations, or sympathy.

If you are interested in starting a home-based floral business , it is easier than ever.

There are many different types of arrangements to choose from, including bouquets, baskets, and vases. You can also choose between fresh flowers or artificial flowers.

I have a friend who runs a very successful succulent business out of her home. They are really popular as gifts for all kinds of occasions.

To get started, you’ll need to either grow your own flowers or get them from a wholesaler to begin with and then start promoting your floral business.

If you do have a green thumb, you can also consider selling plants or seeds on Etsy.

Handmade Clothing

Making and selling handmade clothing is a great way to be creative, make some extra money, and help the environment if you are good with a sewing machine.

This one of the few craft business ideas on this list that does require prior skill that takes time to acquire. 

When you make your own clothes, you can choose the fabrics and styles that you like best.

Making your own clothes also helps the environment because it reduces the amount of waste produced by the fashion industry. It can also be a fun way to spend time with friends or family.

There are many ways to sell handmade clothing, including online marketplaces, local craft fairs, and consignment shops.

Niching down will help you attract an audience that return again and again to buy your products.

Handwritten Notes and Invitations

In the digital age, handwritten notes and invitations are a rarity.

But there’s something special about receiving a handwritten note or invitation in the mail.

If you have beautiful handwriting , consider selling your skills in the form of handwritten recipes and notes. Go a step further and you can hone your design skills to make and sell wedding invitations.

Handmade Wreaths

if you are looking for a DIY craft business that is fun and will allow you to be really creative, how about making and selling wreaths ?

Wreaths that are bought in stores can be extremely expensive so people are willing to pay a good amount to get a handcrafted wreath that is exactly what they want.

This is one home craft business that can make you a lot of money once you get established.

Starting Your Own Handmade Business- Tips and Tricks

Crafts have always been a source of pleasure and creativity for people around the world.

Whether it’s knitting, crocheting, sewing, or creating home decor, there are many craft business ideas that can be profitable.

To decide what kinds of home business to create yourself, take the following steps:

Do your research

Before starting any business, it is important to do your research first. This means reading articles, watching videos, and consulting with professionals.

This will help you learn about the industry you are planning on entering and how to best market your product or service.

Decide who your potential customers are

Lots of people skip this step but it is very important in order to have a profitable crafts business.

Are you looking to sell to brides to be or stay at home moms? Who is searching for your product and where do they shop?

Do you need to sell on online platforms such as Etsy or are retail shops more appropriate?

Do you have the necessary equipment to succeed in this type of business? A lot of people have the creative talent but not the business know-how.

Many small businesses fail because business owners don’t learn enough about the market they are in and they don’t consider things such as taxes and bookkeeping. While these are boring, they are an important part of running your own craft business.

Don’t forget to market your online business

Create a website to showcase your work and get more sales.

This is a great way to attract customers and sell your products online.

Instagram is a popular way to promote your items and you can even sell directly through dms. Having your own site will allow you to either redirect people to an Etsy shop or sell directly using Shopify.

The best part of having your own website to promote your craft business is that you can save a lot of money on fees.

The Most Profitable Craft Business – FAQS

Craft business ideas can be profitable and fun. With the right products and marketing, there’s no limit to what a craft business can achieve.

What are the most successful craft businesses?

The most successful craft businesses are the ones that typically ones that involve products that are popular all year round.

Although selling seasonal products is one of the easiest ways to get started, for a truly successful side hustle, you need to get sales every week, all year.

What crafts are in high demand?

The best craft business ideas that are currently in high demand include resin crafts, hand-sewn items and knitted garments that have a rustic, simple feel.

These items tend to sell really well online and at a higher rate than factory made products.

What handmade items sell best?

Handmade crafts made out of all different materials from wood to resin and fabric all sell well. The most profitable handmade crafts are ones that are unique and creative, and for good reason.

People are willing to spend more money on something special. Consider things such as resin picture frames, handmade earrings and knitted hats for babies.

Small Business Trends

50 craft business ideas.

Craft businesses can be both fun and profitable. However, you first need to find the right idea that will maximize your strengths and appeal to customers. If you’re looking for the perfect craft business idea to start, here’s a full list of options to consider.

Table of Contents

What Crafts Are in High Demand Right Now?

There are a variety of crafts in high demand right now, as consumers value the personal nature of handmade gifts and custom designs. Some of the most popular categories for craft items include jewelry, candles, bath and beauty products, handmade clothing, and artwork.

Selecting the Best Craft Business Ideas: Our Methodology

For crafting business ideas, it’s important to assess factors that blend creativity, marketability, and practicality. Here’s an evaluation of key criteria, along with their importance on a scale of 1 to 10, with 10 indicating utmost importance:

• Importance: Essential (10/10) The uniqueness and creativity of the crafts are crucial in differentiating the business in a crowded market.
• Importance: High (9/10) Understanding the preferences and demands of the target market is vital for the success of the craft business.
• Importance: High (9/10) High-quality and durable crafts are more likely to attract and retain customers.
• Importance: High (9/10) Balancing cost efficiency with competitive pricing is key to maintaining profitability.
• Importance: Moderate (7/10) The business idea should have potential for growth, either through expanding product lines or reaching new markets.
• Importance: High (9/10) A strong online presence and the ability to sell products online are crucial for reaching a wider audience.
• Importance: High (9/10) Effective branding and marketing strategies are vital for attracting and retaining customers.
• Importance: High (9/10) A reliable supply chain for quality and affordable materials is crucial for consistent production.
• Importance: Moderate to High (8/10) Sustainable practices can enhance the brand’s appeal, especially in a market that values eco-friendliness.
• Importance: Moderate (7/10) Being adaptable to changing trends and responsive to customer feedback can help in staying relevant and innovative.

50 of The Best Craft Business Ideas

If you’re a creative person looking to start your own craft business in this billion-dollar industry, here are some of the best craft business ideas you can start today.

1. Gift Basket Business

Gift baskets can include handmade baskets and a variety of crafts, from candles to fashion accessories, making this an adaptable idea with high market demand.

2. Greeting Cards

Design your own paper goods like holiday cards and stationery and offer them in small packages.

3. Candle Making

Scented candles are some of the most popular gifts around. Make your own blends and offer candles in a variety of sizes and styles.

4. Home Decor

There’s a huge array of home decor items that you can make by hand and sell online or at local shops. For instance, you may weave unique tapestries, create resin coasters, or even craft upcycled furniture.

5. Jewelry-Making Business

There’s a huge array of jewelry to make and sell for profit. Consider specializing in beaded bracelets, simple necklaces, or offer a variety of earrings, rings, and more.

6. Customized T-Shirts

Design and print your own t-shirts with unique designs. You can either customize this by hand or use a printing service to speed up the process. It’s easy to offer these items through ecommerce platforms, and they can be quite cost effective.

7. Fashion Industry

If you’re handy with a sewing machine, craft your own fashionable clothing items like dresses and stylish tops and offer them at local boutiques or online.

8. Knitting Business

Love knitting? Use your skills to craft hats, scarves, blankets, toys, or a huge array of items. There’s significant room for creativity and adaptability.

9. Sticker Business

Start your own sticker business where you print unique designs and sell them to consumers or offer packs to businesses on a wholesale basis.

10. Dried Flower Business

You can use dried flowers in a variety of crafts, from wall art to paper goods.

11. Calligraphy Business

Start your own business offering hand-lettered greeting cards or other products to consumers. This is also one of the best creative business ideas that can be turned into a service; offer calligraphy to those needing invitations or cards addressed to specific individuals.

12. Essential Oils

Make your own blends of essential oils and offer them in bottles or other home and beauty products. This can be a successful business due to the high demand for natural products.

13. Bath Bombs

Bath products are huge in the craft industry right now, including bath bombs made of salt and other natural ingredients.

14. Digital Art

Create your own designs and offer them as a digital download online. This can be an incredibly lucrative business, since you can sell each design multiple times and don’t need to invest in shipping.

15. Picture Frames

Offer handmade frames for sale, or provide custom framing services in your area. This can also be a scalable business idea, with room for various products.

16. Make Christmas Wreaths

If you want to use your artistic skills to create Christmas crafts, make and sell , design and make holiday wreaths . You can use various materials, from real greenery to synthetic fibers.

17. Online Courses in Crafts

If you’re looking for a business venture that can be done mainly online, create online courses where you teach your craft of choice to other creatives.

18. Craft Blog

You could also start a blog where you share craft tutorials or a behind-the-scenes look at how you run your craft business.

19. Custom Ornament Business

Another craft business idea that’s especially popular around the holidays offer custom ornaments in a specific style. Customers often pay extra for personalization, like names, dates, or images.

20. Costume Business

If you want to create a shop specializing in Halloween crafts , offer handmade costumes for kids or adults.

21. Basket Weaving

Basket weaving is a traditional craft you can turn into a business by selling your handmade creations online or in a local market.

22. Furniture Business

Make your own furniture or upcycle finds from your local thrift store. Since these pieces are large, they’re usually best suited for sale locally.

23. Photography Business

Take beautiful photographs and then offer them as prints or digital downloads. This can be quite an adaptable idea, with lots of room for creativity.

24. Embroidery Business

Offer embroidered products or provide custom embroidery services for customers who want to provide their own garments.

25. Hair Accessories

Sell unique hair accessories like headbands, bows, or barrettes.

26. Handmade Toy Shop

Make toys out of wood, fabric, or felt and sell them to parents or local gift shops.

27. Holiday Decor Business

Whether you specialize in Christmas, Halloween, or Thanksgiving crafts , you can sell tons of decor items to families throughout the year.

28. Sell Original Paintings

If you love painting, sell your creative canvases to consumers at art galleries, local shops, or online.

29. Pottery Business

With a few pieces of pottery equipment, you can make your own mugs, bowls, and ceramic products to sell.

30. Soap Business

Handmade soaps are popular gift items with high market demand. Sell products individually or as part of gift baskets.

31. Glass Blowing

With the right glass blowing equipment, you can create one-of-a-kind vases, beads, and glassware.

32. Craft Supply Business

You can also sell many craft supplies to other hobbyists or small business owners.

33. Weaving Business

Weaving is a traditional craft where you create unique textiles out of fibers like yarn and thread.

34. Custom Illustrations

Use your drawing skills to create portraits or other illustrations requested by customers.

35. Woodworking

For those with some woodworking skills and equipment, there are many creative products you can sell for profit, from furniture to birdhouses.

36. Quilting

Quilting is another popular traditional craft. Sell large pieces locally or offer squares that can be shipped easily.

37. Custom Fabrics

Use your design skills to create fabrics with unique patterns to sell. There are online platforms you can use to create and market these products.

38. Yarn Shop

You may also spin your own yarn using raw fibers and sell these pieces at a premium.

39. Hand-Dyed Textiles

Dye various fibers like yarn and fabric and sell your creations to other crafters.

40. Craft Patterns

Many crafts, like knitting and sewing, use patterns as a sort of instruction manual. You can sell physical patterns or offer them as a digital download on various online platforms.

41. Scrapbooking Business

If you love scrapbooking, offer materials for sale or create custom pages for your customers.

42. Screen Printing

Screen printing can be used on t-shirts, mugs, and a huge range of products that can easily be sold online.

43. Resin Crafts

Resin is an incredibly versatile material that you can use to make jewelry, beads, coasters, and more.

44. Craft Book Author

If you specialize in a particular craft for a niche market, consider writing a book offering tips for other business owners or sharing your story.

45. Craft YouTube Business

YouTube provides a great platform for building an online business. Share tutorials or behind the scenes looks at your operations and earn income from the site’s ad sharing program.

46. Craft Podcast

With a craft podcast, you can share tips and insights for crafters in an audio format and earn money from sponsors.

47. Craft Influencer

As an influencer, you can share content on your website and social media channels and partner with brands like craft suppliers.

48. Craft Fair Operator

Start a craft fair in your area and partner with makers looking for places to sell their handmade goods locally. This can be a scalable idea as you host more events and your vendor list grows.

49. Craft Marketplace Website

You can even start your own online store where other craft business owners can sign up for an account to sell their creations. This may be especially useful if you have a specific target market, since there are already plenty of options for general craft DIY craft business owners.

50. Craft Business Consultant

Consult with handmade business owners to help them select the best DIY business ideas, hone their skills, and master search engine optimization.

What are The Most Profitable Craft Business Ideas?

The most profitable craft business ideas include low cost products that can be sold at scale, like jewelry, art prints, and soaps.

Where to Sell Handmade Items from Your Craft Business

Once you determine what crafts to sell, it’s time to figure out where to sell handmade items to customers. There are a variety of channels you can use, from online to in-person. Some sellers even utilize multiple techniques. Check out the options below to create your own strategy for selling crafts.

Local Retailers

Partner with small shops in your area to sell your crafts on a wholesale basis. This often involves selling larger quantities of items on a wholesale basis. And the shop will mark them up slightly to sell them to consumers.

Retail Shops

There are also larger nationwide retailers that sometimes offer handmade crafts. This is often reserved for craft businesses that are able to produce large quantities.

Social Media Platforms

Sell directly to customers on social media sites like Facebook and Instagram. Many platforms have purchasing options built in, or you can facilitate sales through direct messages.

Your Own Website

Set up your own site where you list products for sale and market directly to customers.

Crafts Fairs

Research local events that partner with independent vendors. This is an ideal place to reach local customers without a large upfront investment.

Online Marketplaces

Online marketplaces like Etsy and Amazon Handmade let craft businesses list products and reach shoppers who are searching for specific products on these sites.

Effective Marketing Strategies for Your Craft Business

Once you’ve decided on the craft business idea that suits you best, it’s essential to market your products effectively to reach your target audience and boost sales. Here are some marketing strategies to consider for your craft business:

• Create a Strong Brand Identity: Develop a unique and cohesive brand identity that reflects the essence of your craft business. This includes a memorable logo, a consistent color scheme, and a clear brand message.
• Build a Website: Set up a professional website where you can showcase your craft products, provide information about your business, and offer an easy way for customers to make purchases.
• Utilize Social Media: Create business accounts on popular social media platforms like Instagram, Facebook, Pinterest, and Twitter. Regularly share high-quality images of your crafts, engage with your audience, and use relevant hashtags to increase visibility.
• Content Marketing: Start a blog on your website where you can share craft tutorials, behind-the-scenes glimpses of your creative process, and valuable tips related to your craft niche. This will establish you as an authority in your field and attract potential customers.
• Email Marketing: Build an email list of interested customers and potential leads. Send out regular newsletters with exclusive offers, new product launches, and updates about your craft business.
• Collaborate with Influencers: Partner with influencers in your niche to promote your craft products. Influencers with a significant following can expose your brand to a broader audience.
• Offer Discounts and Promotions: Encourage sales by offering limited-time discounts, bundle deals, or free shipping for a certain order value.
• Participate in Craft Fairs and Events: Attend local craft fairs, trade shows, and community events to showcase your crafts and interact with potential customers face-to-face.
• Implement SEO Strategies: Optimize your website and product listings with relevant keywords and meta tags to improve your search engine rankings.
• Provide Exceptional Customer Service: Offer excellent customer service to build trust and loyalty. Respond promptly to inquiries, handle complaints professionally, and consider adding a personal touch to your packaging.
• Collaborate with Local Businesses: Partner with local retailers, cafes, or gift shops to display and sell your crafts in their establishments.
• Offer Customization: Provide personalized options for your crafts, such as custom engravings, monograms, or color choices, to attract customers looking for unique and one-of-a-kind items.
• Showcase Customer Testimonials: Display positive reviews and testimonials from satisfied customers on your website and social media platforms to build credibility.
• Use High-Quality Product Photography: Invest in professional product photography to showcase your crafts in the best light possible. High-quality images can significantly impact the perceived value of your products.
• Monitor and Analyze Results: Regularly track your marketing efforts, analyze the data, and adjust your strategies accordingly. Use tools like Google Analytics to measure website traffic, conversion rates, and customer behavior.

By implementing these marketing strategies, you can effectively promote your craft business, attract more customers, and establish a strong brand presence in the market. Remember that consistency and creativity are key to standing out in the competitive world of craft businesses.

Why Starting Your Own Craft Business is a Great Idea

Craft businesses can be both fun and profitable, allowing you to sell in-demand products that you enjoy making. Many of the craft business ideas listed above can even be run out of your own home.

Turning Your Craft Hobby into a Successful Business

Many people find joy and fulfillment in crafting as a hobby, but have you ever considered turning your craft hobby into a profitable business venture? It’s a dream come true for those who are passionate about creating handmade products. In this section, we’ll explore how to transition from crafting for fun to running a successful craft business.

The Transition from Hobbyist to Craft Business Owner

• Identify Your Niche : Determine what type of crafts you enjoy making the most and where your skills shine. Consider what sets your creations apart from others in the market. Finding your niche is the first step in crafting a successful business.
• Market Research : Investigate the demand for your craft products. Are there potential customers who are interested in buying what you create? Look at competitors in your niche to understand pricing, target audience, and product offerings.
• Create a Business Plan : Develop a clear and concise business plan that outlines your goals, target market, pricing strategy, marketing plan, and financial projections. A well-structured business plan will serve as your roadmap to success.
• Legal Considerations : Register your craft business and ensure you comply with any local, state, or federal regulations. This may include obtaining licenses, permits, and paying taxes.
• Set Up a Workspace : Organize a dedicated workspace where you can efficiently create your crafts. Make sure it’s well-equipped and organized to maximize productivity.
• Quality Matters : Maintain a commitment to quality craftsmanship. High-quality products are more likely to attract and retain customers.
• Pricing Your Products : Calculate the cost of materials, labor, and overhead to determine your pricing strategy. Ensure that your prices not only cover expenses but also provide a reasonable profit margin.
• Create an Online Presence : Build a professional website or establish a presence on craft marketplaces like Etsy or Amazon Handmade. An online platform is essential for reaching a broader audience.
• Photography Matters : Invest in good product photography. High-quality images are crucial for showcasing your crafts effectively and attracting potential customers.
• Marketing and Promotion : Develop a marketing strategy to promote your craft business. Utilize social media, email marketing, content marketing, and paid advertising to reach your target audience.
• Networking : Join local craft communities and online forums to connect with fellow crafters and potential customers. Networking can lead to valuable collaborations and partnerships.
• Customer Service : Provide exceptional customer service. Respond to inquiries promptly, address concerns professionally, and prioritize customer satisfaction.
• Continuous Learning : Stay updated on crafting techniques, trends, and industry developments. Attend workshops, take online courses, and read relevant books and magazines to enhance your skills.
• Inventory Management : Keep track of your inventory and materials. Efficient inventory management ensures that you have the supplies you need to fulfill orders promptly.
• Financial Management : Maintain accurate financial records and a budget for your craft business. This will help you track expenses, monitor cash flow, and make informed financial decisions.
• Scaling Your Business : As your craft business grows, consider scaling your operations. You may need to hire additional help, expand your product line, or explore new sales channels.

Balancing Passion and Profit

One of the challenges of turning a craft hobby into a business is striking the right balance between passion and profit. Here are some tips to help you maintain that equilibrium:

• Set Realistic Goals : Establish clear and achievable business goals. While passion is essential, it’s equally important to have realistic expectations about what you can accomplish.
• Value Your Time : Recognize that your time and expertise have value. Don’t underprice your crafts to the point where you’re not adequately compensated for your work.
• Continuous Learning : Invest time in learning about the business side of your craft. This includes understanding finances, marketing, and customer management.
• Stay Passionate : Remember why you started crafting in the first place. Don’t let the business side of things overshadow your love for creating. Passion is what makes your crafts special.
• Adapt and Evolve : Be open to change and evolution. Craft trends and customer preferences may shift over time, so be ready to adapt your offerings.
• Time Management : Efficiently manage your time to balance crafting, administrative tasks, and marketing efforts. Time management tools and techniques can be valuable.

Overcoming Challenges

Running a craft business can come with its fair share of challenges. Here are some common hurdles and tips for overcoming them:

• Competition : The craft market can be competitive. To stand out, focus on unique designs, high-quality craftsmanship, and excellent customer service.
• Seasonality : Some crafts may have seasonal demand. Plan for seasonal fluctuations by diversifying your product range or offering complementary items.
• Marketing Costs : Marketing expenses can add up. Start with cost-effective marketing strategies like social media and email marketing, and gradually explore paid advertising as your budget allows.
• Burnout : Crafting for profit can sometimes lead to burnout. Take breaks, set boundaries, and practice self-care to avoid burnout and maintain your passion.
• Inventory Management : Balancing inventory can be challenging. Use inventory management software to track stock levels and reorder supplies when necessary.
• Scaling : Scaling your craft business can be daunting. Consider seeking guidance from mentors or joining entrepreneurial support networks to navigate the scaling process.
• Legal and Tax Complexity : Dealing with legal and tax matters can be overwhelming. Consult with professionals or use software to help manage these aspects of your business.

The Bottom Line

Running a successful Etsy shop or other craft businesses can be personally fulfilling. But you first need to find an excellent craft business idea that suits your skills and preferences. Check the list above for tons of profitable craft business ideas to try this year.

Craft Business Ideas FAQs

What is the best craft business idea.

The best craft business idea is one that you enjoy and where there’s demand for your specific type of product. There are many things to make and sell for profit , including knitting projects , resin crafts , and mason jar crafts. See the list above for even more small business ideas in the handmade crafts space.

What are Some Good Craft Business Ideas?

Nearly any craft you are interested in can be turned into a business. Some popular craft business ideas include handmade candles, jewelry, and home decor. See the list above for even more ideas.

How do I Start a Small Craft Business?

To start a small craft business, determine what type of products you want to sell and master your craft. Once you’ve created some products, take photos and list products online, either on your own website or on marketplace sites like Etsy. You can also sell handmade products in person at craft fairs or flea markets.

What Craft Business Can I do at Home?

You can make many crafts at home and sell online or at local events. For example, you may make jewelry in your guest room or set up a candle making operation in your kitchen.

What is the Best Craft Business to Start?

Many craft business ideas can be profitable and enjoyable. Some examples include making Cricut crafts , creating custom portraits, and starting a candle business. See the list above for even more ideas.

Can a Small Craft Business be a Profitable Business?

Small craft businesses can certainly be profitable. However, you need to price items with both your business costs and time in mind. You also need to market your business to your target customers effectively in order to make enough sales to turn a profit.

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The Ultimate Guide to Starting a Craft Business

Click a heading below to jump to that section of the guide.

What you need to know about starting a craft business Creating a business plan How long will staring a craft business take How much will it cost to start a craft business Understanding legalities and insurance for your craft business Marketing your craft business Where to sell your craft products How to promote your craft products

Starting a craft business can be an exciting and rewarding adventure. You can start completely from scratch and learn new skills with the potential outcome of creating a viable business. If you already have a crafty hobby or particularly enjoy a craft, then you can perfect these skills and start selling!

Our ultimate guide talks you through what you need to know before starting your craft business and how you can improve your craft and create your brand. We discuss the legal aspects of starting a craft business and help breakdown the costs that are often involved.

What you need to know about starting a craft business?

Starting a craft business yourself is not a simple process, but if you do your research and put the time and effort needed in, it can be made far easier!

Understanding the market and product demand is a key first step, as well as researching your potential customers and what will be, your current competition. The more knowledge you have behind you before you start, the better!

A fairly important step to make at the start of your craft business journey is understanding product demand. If you are starting from scratch and are unsure what products you’d like to make and sell, search for the latest trends and see what’s currently popular. Try to focus on what you’re interested in.

If you already know what products you’re going to sell, research is still important. Look into trends by season or holiday, so you have a potential plan on how to market and adapt your product according to sales figures. You could also tweak your products to fit the current demand, which will in turn help increase sales.

Without customers, you don’t have a business. Your customers are what drive your sales, your social media accounts and your brand identity. Pay close attention to what your potential customers want from you or from businesses similar to yours.

Following the latest trends will give you a better idea of what your customers want, especially when it comes to colour, pattern and design. It could be useful to search for products similar to yours and see what questions are being asked about them. This will provide insight into what your potential customers will be looking for and how you can cater to their needs.

Competition

Researching your competition is a good strategy that helps you understand what you could be doing better for your business. Keep track of businesses of a similar brand to yours and those who sell similar products.

Following their social media pages can provide useful insight into how they run their business and what works for them. Some businesses may be using a new product to help them in their craft, such as a physical tool or online software. That product could possibly be useful to you! Seeing what other small businesses use to help them craft is a great way to gain ideas for your own business and to enhance your skills.

Remember, researching your competitors is not to be used to copy ideas, but to merely keep an eye on what they are up to and what strategies are working for them.

Creating a business plan

A hugely formal business plan may not be necessary when starting a small craft business, but it is a great way to plan out your business strategies and create yourself a clear pathway. There are plenty of tools and templates online that can help you write an effective business plan- utilize these to ensure that you have a plan that can keep your business on track.

Having a business plan from the beginning not only helps you to organize your business better, but it also serves as a great document to outline your business to future investors or other involved parties.

A basic business plan should include:

• A detailed summary of your business, products/services and brand
• Target market and analysis
• Financial plan
• Future projections

You should refer back to your business plan for guidance when starting and running your craft business. Also, look into updating your business plan in the future when your company has changed and expanded.

How long will starting a craft business take?

This can vary massively. You have to factor in how long it takes you to make your products and whether, due to the nature of your goods, you can create surplus stock or have to create on-demand. If your products are reproducible, you may be set up quicker than someone who’s products are one-of-a-kind.

You shouldn’t feel pressure to have your craft business set up in a certain amount of time- focusing on making quality products is more important.

Allocate yourself time to create products, market and promote them and eventually ship them once you’ve made a sale. The only time limits you should stick to, are any times you have informed your customers of regarding product creation and shipping.

How long will it take before I start making a profit?

Again, this is dependent on many factors. Some of those factors include:

• How quickly you can make products
• How quickly you can sell products
• How many products you sell
• The price of your products compared to the price of materials

It is better to prepare for not making a profit for a while, than be caught out of pocket. You never know when your craft business will take off- take necessary precautions to ensure that you don’t go into any debt, but trust in yourself and your craft. Value your items fairly and don’t buy what you can’t afford- you can’t guarantee sales.

How much will it cost to start a craft business?

Here we break down some of the costs that are typically associated with starting a craft business and explain how these elements can be crucial to your success.

Insurance is an important factor to consider when starting a craft business. There are many incidents that could occur, even for a small business, that could be seriously financially damaging.

A few problems that a small business may run into include:

• Stock damage
• Equipment damage
• Injury or damage caused as a result of your product

These are problems that could be fatal to a new craft business. It is necessary to look into the differing insurance types to see what fits your business best.

CraftCover offers various types of insurance with prices that suit both you and your business. If you are wanting your craft business to grow, there will be added responsibilities that would be better protected by insurance.

Types of craft insurance:

• Public Liability Insurance
• Product Liability Insurance
• Craft Fair Insurance
• Craft Show Insurance
• Craft Stall Insurance
• Arts & Crafts Insurance
• Demonstration and Tuition

Each of these types of insurance cover different aspects of your craft business. If you are considering craft fairs and shows, you are usually required to have Public Liability Insurance before you can take part. Arts & Craft insurance can also be tailored to your specific craft.

Do I need insurance if I am only selling online?

Although you may not be attending craft events just yet, having public and product liability insurance is still essential to your small business. Your products affecting your customers can still cause a legal, public dispute and damages to your stock at home may not always be covered by home insurance. You may also want to cover your computer that enables you to sell online.

CraftCover can help you choose the right insurance plan for your business. Contact us now for further help. Materials

Buying materials for your crafts requires more thought than often allocated. You may be considering having a stock room with enough materials to cover an influx of sales. This may be an expense that you are not ready for- having minimal stock whilst starting a craft business is both acceptable and sensible. Keeping track of your average sales is a good way to understand what stock levels you may need.

Once your business shows an increase in sales, expanding your stock is helpful in ensuring that your products are always available to customers. This can be done easily through bulk buying the necessary craft materials that you require for your products. It usually works out cheaper to bulk buy as long as your sales reflect, or will reflect in the near future, this decision.

If you are just starting out in your craft business, then the chances are you will be based at home. This is a cost-effective approach you can take when you are beginning to create your brand. Once you are making a healthy profit, you may consider renting an office/work space, warehouse space or even renting specialist equipment that you can go and use. This is a large investment and should only be considered once you are sure that you can afford it.

In the meantime, whilst based at home, making an effective work space is key to improving productivity and a healthy work-life balance. Try to separate your craft work from your rest spaces, so that you can alternate between the two easily. Increased focus will result in you producing higher quality products.

Profit Margins

The price of your items could be the deciding factor in whether you make a sale, so you need to think carefully about how much you are going to charge. You should try to avoid extortionate prices but also shouldn’t sacrifice the quality of your crafts so that you can sell them cheaper.

Researching businesses that sell similar crafts to your own will help you to understand what customers are willing to pay. You could even conduct your own market research to gauge product prices. Don’t worry if you don’t get this right straight away, you can always adjust your prices once you are up and running.

Understanding shipping costs massively depends on the product you are selling. Factors that need to be included when deciding shipping costs include:

• Size of your product, therefore parcel size
• Weight of your product, therefore parcel weight
• Materials and their breakability
• Shipping location (locally and/or internationally)
• Shipping speed

These factors will each alter the price of shipping costs. You will need to take an average for each point and use those combined average parcel specifications, to calculate the right price to offer for shipping.

Alternatively, you can offer shipping that’s tailored to each order, making it easier to charge the correct price.

Understanding the legalities of starting a craft business

Figures from the Royal Bank of Scotland suggest that 1 in 5 adults in the UK are ‘hidden entrepreneurs’. This term applies to anyone that earns an extra income in their spare time, which includes selling your handmade crafts . Any exchange, whereby you receive money for your products or services, should be declared to HM Revenue.

If you have realised that your business should be paying tax, you need to give HMRC your income details as soon as possible. By voluntarily declaring your income you will still have to pay the tax that is owed, but fines will likely be reduced. To let HM Revenue know about your second income, you can fill out this online notification form.

Planning for the future of your craft business

Registering as a sole trader:

• Tell HM Revenue in advance of you starting your business
• Fill out a Self-Assessment Tax Return Form with your income details
• You will be personally liable for any problems or losses that affect your business in the future (hence why insurance is necessary)
• Cheaper in the short term

Registering as a company:

• Register with HMRC who will offer some protection – Offers structure in regards to responsibilities and ownership.
• More complex and requires more paperwork

No matter how small your business is, branding is a crucial element to success. Creating that brand identity for your handmade products can be one of the most successful marketing assets. What do I call my craft business?

Think about why you want to start your business, who inspired you and how you are going to do it. A lot of brand names have deep rooted meanings related to their backgrounds or their specific products.

Before finalising your chosen name, it may be helpful to see if it has been taken, or not, online by using a name checking website such as www.namechk.com. Remember, the name you choose doesn’t have a lot of meaning until you give it a meaning and visual identity.

The design element of your brand is a hugely important factor when starting a craft business. Your branding is one of the first things a customer sees when looking at your social media pages, website or craft stall; alongside your products. Getting this right from the beginning will benefit your business greatly when you start selling.

Your logo will determine your customer’s initial reaction to your brand, so it is worth taking time out to create your ideal logo. Research your favourite brands and think about why you like them.

Also, think about how your logo will appear in situ, for example, what it will look like on price tags. You can design a logo yourself if you are confident enough- alternatively, there are many small brands and designers out there who you can commission.

Tone of voice

Do your products portray a cheeky or joking personality, or are they quite formal and sensible? Make sure the brand reflects the products. Remember, your brand voice isn’t always your own voice.

Tone of voice can also be enhanced by fonts and colours. If you’re innovative, maybe an edgy, sans serif font might work best. If you’re a happy, chirpy type of brand, think bold, bright colours.

One thing that many craft business owners overlook is just how important it is to take professional photos of products. You need to have images that capture visitors and give them a reason to purchase from you. You could hire a photographer or take pictures yourself using a high quality camera and good lighting.

All of that hard work into developing your brand’s identity would go to waste, should you not use it consistently. Be sure to follow strict guidelines so that you portray the same image on websites and business cards as to what is used on the business’s social media.

Where will I sell my products?

There are many places where you can sell your handmade goods- choosing the right places is an important factor to consider for your business. Selling your products can be done successfully both in-person and online.

Exhibiting your crafts

Craft fairs and shows are a great way to sell products and promote your brand. There are usually great exposure opportunities and chances to be invited to other, more exclusive craft events. If you are confident in your craft, have an established brand and the necessary insurance, you are ready to start exhibiting!

There are plenty of sites that notify you of upcoming craft events. Take note of all the events you would like to attend in good time, and look into their application processes for participating.

Check out our quick tips on exhibiting your crafts here!

Selling your crafts online

Selling online not only gives you the chance to sell to people all over the world, but is also a cost effective way of marketing your company. It’s important to check that your insurance policy provides cover for selling into foreign countries, particularly the US and Canada.

If you choose to sell products on your own website, you will need to have one that not only looks good, but is also functional for users. This means ensuring that your customers can find what they want on the website with minimum hassle.

There are a variety of sites that can help you sell your products. These fall into different categories:

Your own pages such as a website, a Facebook page or an Instagram page. These pages aren’t specifically for selling, but you alter them to suit your business. These are the pages that you can typically get most creative with, and have most freedom with in regards to content.

Online Marketplaces

These are sites or apps whereby you create an account for your business and upload your items ready to sell. Marketplaces such as Etsy, Folksy, Ebay, Depop, Facebook Marketplace and Amazon Handmade are all free to list on- though some take a percentage of your sales.

These options are great starting points for small businesses as they are easy to set up and maintain, and are popular sites where you could generate lots of sales.

Print-on-demand Marketplaces

These marketplaces are slightly different to the ones listed above. Not every craft will work on these sites. Sites like Redbubble, Zazzle and Amazon Marketplace take your designs and print them on the customers desired product (such as t-shirts, posters or mugs).

This works well for designers, as there is little to no work to be done once the design is created and uploaded.

How do I promote my products?

Promoting your own products is crucial to the success of your small craft business. When your brand name isn’t widely known (yet!), it can be difficult to be seen over larger companies. Promoting your products in-person and online through many different formats will help to spread the word about your products.

There are a few ways in which you can do this:

Establishes you as a reputable brand and allows you to sell away from third-party sites. Setting up a website is not always that simple however, and can require help from a professional. You may want to look into this once you feel as though your business is more established.

A wonderful tool that promotes your brand and allows you to express your feelings and opinions on crafting. If you have the time for it, starting a blog can be simple and effective. You can promote your goods, promote other craft businesses you like and offer tips to other crafters. Blogs may not generate lots of sales but they can establish a loyal customer base and can potentially get picked up by larger bloggers or journalists.

There are plenty of online guides that can help you set up an email list. If you send follow-up emails to your customers after a purchase, or send those customers future emails regarding your business, offers you have or events you are attending, you can potentially find that many of these customers return. The added personalisation is often favourable to customers, especially when buying from a small brand.

Not all of these elements are necessary or suitable for your business. You need to decide what will work best for you, and go for it!

Utilizing social media

Social media is a vital source of communication between you and your customers. Billions of people use social media each day, which is why more and more businesses are utilising it as a marketing tool.

Your following won’t grow over night and you will have to put time into making social media work for your business, but it is definitely worthwhile for any craft business that wants to maximise their sales.

With around 1.35 billion monthly active users, Facebook is great for showing off your products, linking them to your website and getting involved with ‘Facebook Groups’, which are, in essence, communities. There’s a lot to explore on Facebook, including targeted advertising options at an additional fee.

Twitter should be kept quite chatty and requires the most amount of posts per day in order to get interaction. However, it’s a great site to see what your competitors are up to and gain insight into how you can appeal to your target audience.

Pinterest is great for sharing tips and inspiration with the occasional product image- just be sure to use your product selling platform’s link when uploading images.

Instagram is good for humanising your brand. Topics such as ‘behind the scenes’ and close-ups of products tend to go down a treat with audiences on Instagram. It’s worth spending time typing out hashtags in the description to allow people to find your pictures and increase your following.

Get your craft business started!

Now you should have all the knowledge, skills and support to start your own craft business. Be brave, have faith in your products and abilities and get started! We’d love to hear all about your business and how you are getting on, so let us know!

If you would like some extra support in your new craft business venture, take a look at our Business Advice section where we provide guidance relating to craft businesses, insurance and products. We also have a business news section that could reveal important information to you about the craft business industry.

If you are looking for support for your craft business, Craft Cover provides specialist insurance for handmade businesses throughout the UK. If you want to ensure your goods from theft, loss and damage, we can help!

Please call 0345 463 3003 or email [email protected] to speak to one of our friendly experts.

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How to Start a Craft Business in 14 Steps (In-Depth Guide)

Updated:   January 25, 2024

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According to Business Research Insights , the global craft market could reach $74,457.88 million by 2031. Since it hit $44,120 million in 2021, the craft market is estimated to grow at a compound annual growth rate (CAGR) of 5.4%. This makes the arts and crafts market a lucrative option for new entrepreneurs.

Whether you want to sell your creations online or open up a small brick-and-mortar store, starting a craft business allows you to make money doing something you love. You get to set your schedule and be your boss. Plus, with the right strategies, you can build a brand that stands out from the competition and attracts a loyal following of customers.

In this article, you’ll learn step-by-step how to start a craft business. From choosing a business structure to marketing your products, we’ll cover everything you need to know to transform your handmade hobby into a successful venture.

1. Conduct Craft Market Research

Market research is crucial to learning how to start a craft business. It offers insight into successful craft business services, current trends, market saturation, and more. To build a realistic craft business plan, you’ll need to use primary and secondary research.

There are several factors driving growth in the craft industry:

• The rise of e-commerce and sites like Etsy have made it easier for crafters to find a broad customer base online.
• Social media enables crafters to market their products and build an audience organically.
• Consumers increasingly want unique, handmade, and customizable products with a story behind them. The DIY ethos has gained mainstream appeal.
• Sustainability and ethics matter more to buyers. Many prefer to support small, local artisans over mass retailers.

While the market is competitive, several opportunities exist for successful online craft business owners:

• Focusing on a niche style or product can help differentiate your brand.
• Offering virtual craft classes and workshops can create an additional revenue stream.
• Partnering with other local artists and makers can help cross-promote.
• Consider an e-commerce plus brick-and-mortar hybrid model to get the benefits of both.
• Using digital marketing and social media to tell the story behind your products and processes.

Starting a craft business today provides huge potential to tap into the growing demand for artisanal, handmade goods. With the right product, branding, and marketing strategies, craft entrepreneurs can build sustainable ventures that stand out in this thriving industry.

2. Analyze the Competition

Thoroughly analyzing the competition is crucial when starting any business, and craft ventures are no exception. Here are some tips on assessing competitors both in your local area and online.

For brick-and-mortar competitors, start by identifying other craft shops within a 15 to 20-mile radius. One way to better understand what it takes to create a successful online craft business is to learn about competitors.

Use these methods to better understand your competition.

• Visit their stores and take notes on their product selections, pricing, store layout, promotions, and customer service.
• Look at their social media and websites to see how they market themselves. This will give you an idea of what your potential customers are already buying locally.
• Evaluating online competitors can begin on marketplaces like Etsy and Amazon Handmade where you plan to sell.
• Look at top sellers in your product category and analyze listings with 50 reviews.
• Make notes on pricing, product photography, descriptions, and shop branding. Look at their production capabilities.
• Search for competitors selling through their websites. Look at their SEO, product offerings, website design, email marketing, and social media presence.
• Review their traffic sources, engagement levels, and conversion rates using tools like SimilarWeb and Google Analytics.

Compiling notes on competitors across all these channels will illuminate what is selling well. It also helps benchmark your capabilities and plan how to excel in areas like photography, branding, and customer service. Analyzing the competition is a key first step in crafting your business strategy.

3. Costs to Start a Craft Business

When starting a craft business, there are a variety of one-time start-up costs to consider before you can begin selling your products.

Start-up Costs

• Business Registration Fees – Expect to spend around $100-$800 to formally register your business as an LLC or corporation depending on your state. This includes paperwork and filing fees.
• Equipment – For crafting, this could include sewing machines, jewelry-making tools, kilns, printing equipment, etc. Expect to invest at least $500-$2,000 on the key equipment needed for your type of craft.
• Website – Developing a website to sell your products online will cost around $200-$1500 depending on complexity. This assumes a DIY site builder vs. hiring a web developer.
• Branding – Logo design, branding, and packaging design can cost $500-$2,000 if hiring professional help.
• Inventory – Initial inventory of materials and supplies to make enough products to open can cost anywhere from $1000-$5000 depending on your craft.
• Real Estate – The average cost of commercial real estate for a small retail space is $15-$30 per square foot per month. Plan for 500-1000 sq ft for around $750-$3000 per month.
• Insurance – General liability insurance typically costs $30-$150 per month depending on industry risk. Product liability insurance may also be required.
• Licenses & Permits – Local business licenses average $50-$500 per year. Seller’s permits for sales tax range from $10-$800 annually.

In addition to one-time start-up costs, online craft business owners also face a variety of ongoing monthly and annual expenses.

Ongoing Costs

• Rent – If in a retail space, rent of $750-$3000 per month. Even home-based businesses should factor in utility costs.
• Loan Repayment – Monthly repayments on small business loans, if secured, range from $100-$500 on average.
• Inventory Costs – Replenishing materials and supplies for production will be an ongoing cost, likely $200-$1000 per month depending on volume.
• Employee Wages – If hiring staff, wages plus payroll taxes and workers comp could cost $2,500+ per month per employee.
• Selling Fees – Marketplace fees like Etsy charge $0.20 per listing plus 3.5% of each sale. Budget 5-10% for total selling costs.
• Marketing – Budget for paid advertising and marketing costs like social media ads at about $300 per month early on.
• Transaction Fees – Credit card processing and other transaction fees add 1-3% per sale.
• Taxes – Federal and state quarterly income taxes, workers comp, unemployment insurance, etc. will need to be budgeted for.
• Shipping Supplies – Budget around $100-$300 monthly for shipping materials like boxes, tape, labels, etc.

Careful forecasting of both start-up and ongoing costs ensures crafting business owners are financially prepared for the investment required to establish and sustain their venture. Building out a detailed 12-to-month budget is highly recommended before launching.

4. Form a Legal Business Entity

When starting a craft business, one of the first legal decisions is choosing your business structure. To start a craft business legally, you must choose from a sole proprietorship, partnership, limited liability company (LLC), or corporation. The four main options each have pros and cons to weigh:

Sole Proprietorship

This is the simplest structure where you and the business are one entity. No formal registration is required beyond licenses.

• Pros: Easy and inexpensive to set up. You retain complete control and get all profits. Minimal paperwork.
• Cons: You are personally liable for all debts and obligations. No separate business identity. Difficult to raise investment capital. Limited options for taxes and growth.

Partnership

A partnership is formed when two or more people share ownership of a craft business. You can divide management duties, skills, and investment costs.

• Pros: Easy to establish with a partnership agreement. Shared capital, workload, and abilities.
• Cons: Partners are jointly and severally liable. Disagreements can dissolve the business. Profits are passed through to personal taxes.

Limited Liability Company (LLC)

An LLC combines aspects of partnerships and corporations. It limits personal liability and allows more flexibility for profits, losses, and operation.

• Pros: Liability protection for owners. Separate business identity. Ownership can be easily transferred. Less paperwork than a corporation.
• Cons: Requires more startup paperwork and fees than sole proprietorships. Profits directly pass through to your taxes.

Corporation

A corporation is a separate legal entity from its owners. Shareholders own stock rather than having direct ownership.operations

• Pros: Personal assets are shielded from corporate liabilities and debts. Additional options for funding through investors.
• Cons: Most complex and expensive entity to set up and maintain. Double taxation on profits unless organized as an S-corp. Significant legal paperwork.

5. Register Your Business For Taxes

One key legal task when starting a craft business is obtaining an Employer Identification Number, commonly known as an EIN. This unique identifier is used by the IRS to track tax obligations for business entities.

An EIN is required for any craft business structured as an LLC, partnership, or corporation. It also allows you to open business bank accounts. An EIN is needed even if you only plan to sell crafts online as a business owner.

Applying for an EIN is free and can be done entirely online via the IRS website .

The process only takes about 15 minutes. You will need to provide basic information about your business entity such as name, address, and ownership details.

To complete the EIN application:

• Go to the IRS EIN Assistant and select the option to “Apply Online Now”
• Choose your entity type and enter the legal name/address for your business
• Select “View Additional Types, Including Tax-Exempt and Governmental Organizations”
• Choose Sole Proprietor, Partnership, or Corporation based on your business structure
• Specify if you want the EIN for banking purposes and submit your contact details
• Review all entries to ensure accuracy before submitting the application

Once submitted, you will receive your EIN immediately. This number should be included on all tax paperwork and government forms related to your craft business.

You will also need to register with your state revenue department to obtain any required seller’s permits, sales tax IDs, and business licenses. These can be applied for on your state government’s website.

6. Setup Your Accounting

Proper accounting is crucial for craft businesses to track expenses, manage cash flow, and remain tax-compliant. With so many potential deductions for supplies, equipment, home office use, and more, having organized records will optimize your tax liability.

Accounting Software

Using small business accounting software like QuickBooks can automate the categorization of income and expenses when synced to your business bank accounts and credit cards. Features like invoicing, inventory management, and financial reporting save significant time. Expect costs of $10 to $50 per month.

Hire an Accountant

For optimal oversight, partnering with an accountant as your bookkeeper provides an extra layer of financial expertise. They can handle tasks like reconciling accounts, producing monthly profit and loss statements, and identifying potential write-offs. This ongoing service averages $100-$300 per month but ensures accuracy.

Open a Business Bank Account

Keeping business and personal finances completely separate is key. Have a dedicated business checking account and credit card solely for craft business purposes. This makes tracking deductible expenses simple while protecting your finances should the business struggle.

Apply for a Business Credit Card

Applying for a small business credit card also helps build credit history and provides flexibility in financing larger purchases. Limits are based on both personal and business credit scores. Have your EIN ready to include on the application.

7. Obtain Licenses and Permits

Before opening your craft business, it is crucial to ensure you have obtained all required local, state, and federal licenses and permits. Check with the U.S. Small Business Administration for federal requirements. The SBA also offers a local search tool for state and city permits.

One of the first permits you’ll need is a business license from your city or county government. These require completing an application and paying a small fee, typically under $100 annually. Business licenses demonstrate you have approval to operate within that jurisdiction.

If selling products in-person or online across state lines, you will also need a seller’s permit. This grants authority to collect sales tax from customers and remit to the state. Permit fees vary but expect $10 to $800 per year depending on location. Some states may combine this with a sales tax ID number.

For any business with a physical retail space, commercial zoning permits and occupancy permits will be required from your local zoning board. These confirm your business is allowed under current zoning rules and meets building codes for safety.

If producing food products, you must register with the U.S. Food and Drug Administration (FDA) which oversees safety regulations. There is no cost but you will need to comply with rules on packaging, labeling, and food handling. Specific certifications may be needed as well.

Businesses with employees also need both federal and state tax IDs to process payroll. State departments of labor can provide details on requirements. You may need to carry workers’ compensation insurance and unemployment insurance depending on state law.

8. Get Business Insurance

There are risks involved in turning crafting from just a hobby to a full-on crafts business. Obtaining adequate business insurance is highly recommended for craft ventures to mitigate risk. Policies protect against losses that could otherwise devastate your company.

General liability insurance covers third-party bodily injury, property damage, and legal defense costs if customers ever sue your business. Product liability protects against claims directly related to product defects or harm. For crafts, these policies average $30 to $150 per month.

Going without coverage can have severe consequences. A customer injured by an unsafe product could sue you for bankruptcy. A defective candle could cause a fire that destroys your entire inventory. You could face huge losses if a pipe breaks in your studio and ruins equipment.

To get insured, first, assess your risks and required coverage levels. Compare quotes from providers like Hiscox, The Hartford, and Travelers. Apply for general liability, product liability, property/casualty, and other relevant policies. Have your business registration, licenses, and financial details ready.

The application process includes:

• Selecting an insurance provider based on coverage, reputation, and premiums.
• Completing their small business insurance questionnaire in detail.
• Providing any supplementary documentation requested.
• Make your first premium payment to activate policies.
• Reviewing policy documents to ensure adequate protection.

With insurance secured, craft businesses gain peace of mind knowing they have a safety net against unexpected catastrophes that could otherwise sink their company.

9. Create an Office Space

Having a dedicated office space provides craft businesses room for essential tasks like packaging orders, managing inventory, and handling administration work. It also projects a professional image when meeting clients.

Home Office

Converting a spare room into a home office is cost-effective, with no rent needed beyond increased utility costs. It offers convenience and flexibility for crafters working solo. However, it can be distracting to balance professional and personal lives in one space.

Coworking Space

Coworking spaces like WeWork provide an affordable office environment by renting access to shared amenities and workspace. For $200 to $500 per month, you can gain a collaborative community and professional atmosphere without the cost of commercial real estate. It also accommodates growth.

Retail Shop

For crafters selling products locally, combining a small retail space and a back office area can be the ideal setup. Storefronts build visibility and walk-in traffic while allowing room for inventory and order fulfillment. Average retail rental rates range from $15 to $30 per square foot.

Commercial Office

Leasing dedicated office space in a business complex provides the most privacy and room for significant inventory or multiple employees. However, leases average $20 to $35 per square foot with additional buildout, utility, and maintenance costs. Only recommended once established.

10. Source Your Equipment

Craft entrepreneurs need reliable access to quality materials and equipment to produce their products. Equipment depends on the types of crafts you produce and how you sell/ship them.

Here are some options for sourcing these startup necessities:

Purchasing brand-new equipment from specialty retailers allows you to get precisely what you need while covered by warranties. Look for deals at stores like Michaels , Jo-Ann Fabrics , Blick Art Materials, and Woodcraft . Expect higher costs but longevity from new equipment.

Buying Used

Saving money by purchasing used equipment is common among crafters. Scout deals on Facebook Marketplace , Craigslist , eBay, and Nextdoor . Also check for used equipment at consignment stores, auctions, estate sales, and liquidation centers. Be prepared to repair or restore equipment.

Renting equipment on a short-term basis provides access without a large upfront investment. Many retailers offer equipment rentals for fees ranging from $25 to $150 per day. This allows you to test tools before purchasing. Renting extra equipment helps handle temporary production peaks as well.

Leasing essential equipment through dealerships or third-party leasing companies is a fixed monthly expense that can preserve capital. Typically 12 to 36-month terms with buyout options. Useful for large machinery, but confirm lease terms fit your needs first.

11. Establish Your Brand Assets

Developing a strong brand is crucial for craft businesses to stand out and attract loyal customers. Some key assets to focus on include:

Getting a Business Phone Number

A professional phone number establishes credibility and provides customers with an easy way to reach you. Cloud-based providers like RingCentral offer virtual phone services with vanity numbers, call routing, voicemail, and more for $20 to $100 per month.

Creating a Logo and Brand Assets

A polished logo and visual identity help craft businesses build memorability and recognition. Services like Looka makes logo design quick and affordable at $20 to $100.

Complement your logo with branded colors, fonts, patterns, and other elements that reinforce your visual style across marketing materials, packaging, etc. Maintain consistency for maximum impact.

Creating Business Cards and Signage

Business cards serve as convenient “leave-behinds” when networking, selling at fairs, or speaking with prospective wholesale partners. Order professional cards showcasing your logo, website, and contact info from printers like Vistaprint for as low as $10 for 500 cards.

Signage with your logo and branding helps drive traffic and sales. Window, sidewalk, and interior signs start around $50.

Purchasing a Domain Name

Securing a short, memorable .com domain builds your web presence. Check name availability with Namecheap and buy for $10 to $15/year. Incorporate your business name and keywords relevant to your craft.

Building a Website

A website establishes an online hub for your business and e-commerce shop. Options include DIY builders like Wix costing $5-$50 monthly, or hiring a web developer on Fiverr for $500 to $5,000 or more.

12. Join Associations and Groups

Joining relevant local organizations provides craft businesses with invaluable connections and resources.

Here are some options to consider:

Local Associations

Industry associations like the American Craft Council and local chapters offer networking, education, and marketing support. Joining grants access to trade shows, seminars, and membership directories to connect with fellow artists and makers. For example, the Texas Commission on the Arts . Membership fees vary but average $50 to $100 annually.

Local Meetups

Attending meetups and trade shows allows craftspeople to interact face-to-face with others in their community. Sites like Meetup make finding local events easy. Look for maker fairs, craft shows, studio tours, classes, and niche meetups to showcase work and gain insights from peers and buyers.

Facebook Groups

With over 1 billion users, Facebook hosts countless special interest groups relevant to crafters. Search for terms like “[City] Makers”, “Handmade Crafts”, or more specific interests to find communities. Larger groups like Small Craft Business Networking – USA and Handmade Craft & Business Network offer discussions and advice amongst thousands of fellow entrepreneurs.

13. How to Market a Craft Business

Implementing an effective marketing strategy is essential for craft businesses to gain visibility and grow their customer base.

Personal Network

To start, tap into your existing network and focus on delighting early customers. Offering discounts or free items in exchange for reviews, referrals, or social media posts can generate word-of-mouth buzz. For example, provide a 10% discount code for every new paying customer they refer.

Digital Marketing

• Run Google Ads with targeted keywords, location, and audience filters to promote your site, products, or grand opening to local searchers.
• Use Facebook and Instagram ads to share visually engaging posts that highlight your products and story. Target by interests like DIY, handmade, and specific crafts.
• Start a YouTube channel creating tutorials, product demos, and vlogs showing behind-the-scenes of your process and business.
• Write blog posts with SEO-optimized titles focused on your products and expertise. Include how-tos, gift guides, and inspirational ideas.
• Leverage Pinterest to curate eye-catching boards showcasing products. Link pins back to your site.
• Share exclusive offers and previews through email and text marketing providers like Mailchimp .

Traditional Marketing

• Design postcards and flyers to distribute at local shops, fairs, and community boards. Include a special offer.
• Take out affordable ads in local newspapers and magazines focused on arts, shopping, and events.
• See if you can donate a product or gift certificate to silent auctions at nearby fundraisers. Include promo materials.
• Partner with complementary local businesses for cross-promotions. Offer packages or joint events.
• Invest in billboards or radio spots on stations your target audience listens to if the budget allows. Tailor copy and offer to medium.
• Reach out to local art galleries that may be interested in showcasing your work during an event

Blending digital and traditional methods that feel authentic will maximize your reach as a craft business and nurture an engaged community around your products and brand. Test different ideas to see what resonates.

14. Focus on the Customer

Providing exceptional customer service is crucial for craft businesses to nurture loyalty and build a profitable business. When you make each buyer feel valued, they become powerful evangelists. Some ways to improve customer focus in your own craft business include:

• Include handwritten thank you notes with each order, which takes little effort but leaves a lasting impression.
• Offer timely responses to questions and customized service that shows you care.
• Include gifts like stickers or earrings with purchases over a certain amount.
• Follow up to see if they have any feedback on your products.
• Aim for quick shipping, responsiveness across communication channels, and constantly impressing customers with your service-oriented mindset.

Satisfied buyers are likely to leave glowing reviews, repurchase regularly, and recommend you to friends and on social media. This organic reach through word-of-mouth referrals is invaluable for craftspeople.

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December 12, 2023

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