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Etsy Business Plan Template: Prepare For Selling On Etsy

Are you considering turning your hobby into a business using the Etsy marketplace?

Well, you’ll be joining a platform that gets around 81.9 million buyers these days looking for handmade goods just like yours.

Before you dive in though, we invite you to lower the tools for a moment and funnel that creative flow into a top-notch Etsy business plan. It’s crucial to understand exactly what your business does, its identity and how it’s going to function so that when it comes to making costly decisions, you have a road map to guide you.

If you put some groundwork and goals in place from the beginning, then making decisions later on can be based on a bigger picture.

If knowing what to include doesn’t come naturally that’s ok, we’re here to help outline what goes into great business plans, why they’re so important and how to get cracking.

In this guide on preparing to sell on Etsy:

Table of Contents

Are you ready to take the guesswork out of your etsy accounting.

Etsy is a great place to sell unique products, and it’s perfect for creative entrepreneurs who aren’t necessarily excited about accounting. Discover the easy way of looking after your Etsy finances so that you can spend more time doing what matters most to you.

Let’s get started.

Why You Need An Etsy Business Plan

A good business plan for Etsy shops should answer questions around who, what, why, how and when for your business, so that as the inevitable bumps in the road arise, you can fly over them.

A plan will start your business off in the right direction, it will give you measurable goals and a feel for your progress.

What you can do with a business plan

• Understand your competition and target market.
• Plan for cash flow and price your products accordingly.
• Create and track a marketing strategy.
• Develop goals and objectives and measure successes.
• Pitch your business to investors or business partners.

The content in a business plan will vary depending on the type of business, so we’ve prepared a guide specially curated for Etsy.

Before Starting Your Etsy Business Plan

Competition is rife online, including on Etsy .

You need to research before anything else to understand who and what your business will be, and where it fits into the bigger picture.

See what your competitors are doing, where you slot in and what niche you could fill.

Only by finding your point of difference will you be able to forge your own path and following.

Creating An Etsy Business Plan

Exciting! You’re at the first step in your Etsy career, congratulations.

This step is all about your brand identity. Creating this will give you the inspiration and roots you need on which to plan everything else.

Giving your store a personality will help customers connect with it, remember it and hopefully, keep returning to and talking about it!

Once you have a good idea of who you are, you can start figuring out what you want to do and how.

What to include in your plan

Executive summary.

Sum up your business goals and strategy in one or two lines. A sort of introduction to your store and your business plan.

Business description

Answer questions like:

• What is the purpose of your business?
• Why did it start, what problems does it solve?
• What makes it different from others?

Product description

Next up, talk about your product or product line. Think about including these areas:

• What is it and how is it sourced or made?
• How many items will be available for sale at any one time? Think about the time it takes to make the product yourself or to source.
• Are there any products you’d like to sell in the future or variations you’d like to add?

Your business takes more than just you to run it. Here, explore what you might need and want to do with regards to:

• Storing inventory.
• Fulfilment options.
• Packaging materials.
• Studio or facilities for making your products.

Bear in mind whether these solutions are scalable too, if you wish to grow.

Hopefully you’ve had a little dig into what your competitors are doing by this point. This should inspire marketing ideas and things to try out with your target audience.

To plan your marketing activity, think about the following questions:

• How does your brand interact with customers?
• Where do your customers spend time?
• How can you reach your customers in those spaces?
• What are your customers most interested in or concerned about?
• Can you play to those interests in your marketing?

Remember the basics too. Etsy will have its own SEO algorithms so learn what it looks for and leverage this free advantage.

It might be 6th on this list but it should be a top priority: Managing your money. Just some of the things that you’ll need to account for as an Etsy seller are:

• Listing and subscription fees.
• Fulfilment, shipping and packaging.
• Sales tax and VAT or GST if selling outside of the US.
• Returns and reimbursements.
• Costs of goods sold and profit margins.
• Costs of materials, studio facilities and equipment.

Be realistic about your time and production volumes. Can you produce enough product to sell and make a profit? If not, what can you automate or take away from your tasks to give you more time?

Crunch some numbers to find out whether your business idea is viable from the start. We highly recommend turning to a specialized ecommerce accountant for this step, if not for the long-term. Find one from our trusted directory here .

They can also help advise you about loans if you think you might need one to get started.

Finally, set some goals!

The best way to measure progress and most importantly, to feel like your business is succeeding and going somewhere is to set yourself some milestones.

These can be short-term or long-term and be simple or complex.

The key is to make them SMART : S pecific, M easurable, A ttainable, R elevant and T ime-based.

Don’t worry if you don’t meet them because each time, you’ll learn what worked and didn’t work, and adjust your goals more accurately as you go.

You’re off to a good start, but keep it going!

There we have it, you’ve now become a knowledgeable Etsy business planner and should be about ready to open your Etsy shop.

And don’t let all that hard work planning go to waste! With the right automation, you can free up your time to keep making and growing your business.

The place to start? Your accounts, the lifeblood of your business.

Including Accounting In Your Plan And How A2X Can Help

As you’ve probably gathered by now, a sole business owner has rather a lot on their plate. And one who makes their own products? They have even more.

Accounting is something that could get pushed to the side, but this can’t happen for a business to survive and thrive.

Fortunately, automation exists designed to take these tasks off your to-do list, ensuring that they still meet industry standards and provide you with accurate, reliable numbers.

Use A2X to integrate your Etsy store with QuickBooks Online or Xero today!

Do I need an Etsy business plan?

You don’t need a business plan to set up an Etsy shop, but it’s a great first step in your Etsy seller career. It enables you to make sound decisions based on long-term goals, track your progress and centralize your strategy.

How much does it cost to set up an Etsy shop?

It’s free to set up a shop on Etsy. Fees are charged when you list an item and when the item is sold.

Before you sell, Etsy does require a credit or debit card number and your checking account info (account and routing number).

How much does it cost to have a business on Etsy?

There is a fee of $0.20 for each item you list on Etsy, and when your item sells, a transaction fee of 5% is charged based on the sale price.

Also on the blog

• The Etsy Accounting Hub
• Etsy Integration Guide: Simplify Your Business
• Ecommerce Accounting and What Makes It So Different
• Ecommerce Accounting Principles
• Find an Ecommerce Accountant

Read similar posts

• Etsy Sage Integration: How to Set it Up
• eBay Business Plan Template [Highly Actionable]
• eBay Selling Guide: Strategies For Success
• eBay Growth Guide: How To Increase eBay Sales
• How To Save Time With eBay Automation [Sellers Guide]

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Etsy Business Plan Template

Written by Dave Lavinsky

Etsy Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their Etsy businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through an Etsy business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is an Etsy Business Plan?

A business plan provides a snapshot of your Etsy business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Business on Etsy

If you’re looking to start an Etsy business, or grow your existing Etsy business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your Etsy business in order to improve your chances of success. Your Etsy business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Etsy Businesses

With regards to funding, the main sources of funding for an Etsy business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings is the other most common form of funding for an Etsy business.

Finish Your Business Plan Today!

If you want to start an Etsy business or expand your current one, you need a business plan. Below are links to each section of your Etsy business plan template:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of Etsy business you are operating and the status. For example, are you a startup, do you have an Etsy business that you would like to grow?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the Etsy industry. Discuss the type of Etsy business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of Etsy business you are operating.

There are numerous shop and product categories represented in the Etsy marketplace. The most popular Etsy categories in 2020 were:

• Home & Living : this type of Etsy shop focuses on a range of products for home and garden, with categories such as décor, furniture, bedding, kitchen & dining, outdoor & gardening, office, and more.
• Art & Collectibles: this type of shop focuses on paintings, photographs, sculptures, fiber art, and collectibles such as figurines and coins.
• Jewelry & Accessories: this type of Etsy shop retails a variety of products like hats, scarves, sunglasses, bags, necklaces, rings, earrings, and bracelets.

In addition to explaining the type of Etsy business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers, number of positive reviews, number of products sold, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the Etsy industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the Etsy industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your Etsy business plan:

• How big is the Etsy industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your Etsy business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your Etsy business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: Millennials, Gen X, Gen Z, Baby Boomers.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of Etsy business you operate. Clearly, Gen Z would respond to different marketing promotions than Gen X, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other Etsy businesses.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes brick and mortar specialty shops or department stores, or other online marketplaces, such as Amazon or Facebook. You need to mention such competition as well.

With regards to direct competition, you want to describe the other Etsy businesses with which you compete.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Find out key things about them such as:

• What types of customers do they serve?
• What types of products do they sell?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide higher quality or trendier products?
• Will you provide product options that your competitors don’t offer?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

For an Etsy business plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of Etsy company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to the products in your main Etsy shop, will you provide customization, financing or any other services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Promotions : The final part of your Etsy marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Reaching out to websites to partner with
• Social media marketing

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your Etsy business, including fulfilling orders, researching and designing new products, logistics, store updates (photos, descriptions, options, etc.).

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sell your 1,000 th product, or when you hope to reach $X in revenue. It could also be when you expect to expand your Etsy business to offer new products or products in a new category.  

Management Team

To demonstrate your Etsy business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in managing Etsy businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in ecommerce or successfully running small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you maintain a product inventory, or will you operate on a just-in-time fulfillment basis? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your Etsy business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing an Etsy business:

• Location build-out including design fees, construction, etc.
• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include pictures and descriptions of your product range, or outline your production process.   Summary Putting together a business plan for your Etsy business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the Etsy industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful Etsy business.  

Etsy Business Plan FAQs

What is the easiest way to complete my etsy business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Etsy Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of Etsy business you are operating and the status; for example, are you a startup, do you have an Etsy business that you would like to grow, or are you operating a chain of Etsy businesses?

  OR, Let Us Develop Your Plan For You Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how Growthink’s professional business plan consulting services can create your business plan for you. Other Helpful Business Plan Articles & Templates

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Etsy Business Plan

Etsy is a well-known eCommerce site where you can buy anything handcrafted, including baby outfits and personalized jewelry. With over a million active sellers and over $1 billion in sales, it is a thriving online economy.

If you are creative & ambitious enough and thinking of opening an Etsy shop to earn money from your hobby, then you are at the right place. To start an Etsy shop, you will need a plan first.

Need help writing a business plan for your Etsy business? You’re at the right place. Our Etsy business plan template will help you get started.

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write an Etsy Business Plan?

Writing an Etsy business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Introduce your business:

• This section may include the name of your Etsy business, when it was founded, etc.

Market opportunity:

• For instance, you might make homemade jewelry, art pieces, etc.

Marketing & sales strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business description:

Describe your business in this section by providing all the basic information:

• Handmade goods
• Vintage items
• Digital products
• Custom products
• Home and garden, etc.
• Describe the legal structure of your Etsy business, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.

Mission statement:

Business history:.

• Additionally, If you have received any awards or recognition for excellent work, describe them.

Future goal:

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

• For instance, if your Etsy business is of jewelry, then ladies’ luck is all you need.

Market size and growth potential:

Competitive analysis:, market trends:.

• For instance, the trend for eco-friendly products and personalization is increasing a lot, mention if your business can cater the same thing to your customers.

Regulatory environment:

Here are a few tips for writing the market analysis section of your Etsy business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific products that will be offered to customers. To write this section should include the following:

Describe your products:

Mention the products your business will offer. This list may include products like,

• Handmade Jewelry
• Cute little keychains
• Customized products, etc

Describe each service:

• It can contain specifics on the product categories you’ll sell, the materials you’ll utilize, the custom choices you’ll provide, and any other pertinent information.

Quality measures:

In short, this section of your Etsy business plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique selling proposition (USP):

• For example, using eco-friendly material that lasts longer than any other material can be the USP of your business.

Pricing strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your Etsy business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your Etsy business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & training:

Operational process:, equipment & machinery:.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your Etsy business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founder/CEO:

Key managers:.

• It should include key executives including their education, professional background, and any relevant experience in the industry.

Organizational structure:

Compensation plan:, advisors/consultants:.

• So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your Etsy business, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

• This exercise will help you understand how much revenue you need to generate to sustain or be profitable.

Financing needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your Etsy business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample Etsy business plan will provide an idea for writing a successful Etsy plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our Etsy business plan pdf .

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Essential Elements of Business Plans

Frequently asked questions, why do you need an etsy business plan.

A business plan is an essential tool for anyone looking to start or run a successful Etsy business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your Etsy company.

How to get funding for your Etsy business?

There are several ways to get funding for your Etsy business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your Etsy business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your Etsy business plan and outline your vision as you have in your mind.

What is the easiest way to write your Etsy business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any Etsy business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Etsy Business Plan Template [Updated 2024]

Etsy Business Plan Template

If you want to start an Etsy business or expand your current Etsy business, you need a business plan.

Fortunately, you’re in the right place. Our team has helped develop over 100,000 business plans over the past 20 years, including thousands of Etsy business plans.

The following Etsy business plan template and example gives you the key elements you must include in your plan. In our experience speaking with lenders and investors, the template is organized in the precise format they want.

You can download our business plan template (including a full, customizable financial model) to your computer here.

Etsy Business Plan Example

I. executive summary, business overview.

[Company Name], is an e-commerce company that owns a shop under the Etsy platform. The Company retails high-quality handmade and vintage items, as well as craft supplies. The Company aims to become one of the highest-selling shops on the Etsy platform in the United States.

Products Served

[Company Name] will provide the following products:

Customer Focus

[Company Name] will serve individuals who shop online. The Company will primarily offer its products to:

• Millennial Women
• Gen X Women
• Gen Z Women

Management Team

[Company Name] is led by [Founder’s Name], who has been crafting jewelry and décor for over [xx] years. While [Founder] has never sold her products on an ecommerce platform, she has a loyal and rapidly growing following. She will have the help and support of her business partner, [Insert Name], who will handle the marketing and admin tasks for the company.

Success Factors

[Company Name] is qualified to succeed due to the following reasons:

• There has been significant growth in general demand for unique, handcrafted jewelry and décor over the past few years. In addition, [Founder’s name] is a maker with some notoriety, and her clients have provided highly positive feedback pointing towards a national demand for her products.
• The management team has a track record of success in the e-commerce business.
• Easy access to the internet will be a major success factor for the company.
• The e-commerce business is a proven, successful business in the United States.

Financial Highlights

[Company Name] is currently seeking $200,000 to launch its shop on the Etsy platform. Specifically, these funds will be used as follows:

• Professional photography and listing service: $10,000
• Working capital: $190,000 to pay for marketing, salaries, equipment and supplies until [Company Name] reaches break-even.

Top line projections over the next five years are as follows:

II. Company Overview

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Who is [Company Name]?

[Company Name], is an e-commerce company that owns a shop under the Etsy platform. The Company retails high-quality handmade and vintage items, as well as craft supplies. The Company’s primary product line includes jewelry, bags, clothing, and home décor. The Company aims to become one of the highest-selling shops on the Etsy platform in the United States.

[Company Name]’s History

[Founder’s Name] is an entrepreneur with a passion for hand-crafting unique jewelry, accessories, and décor. [Company Name] will establish itself as a well-respected business on the Etsy platform.

Upon surveying her existing customer base and finding a potential location for ecommerce expansion, [Founder’s Name] incorporated [Company Name] as a jewelry and décor production company on [date of incorporation].

Since incorporation, the company has achieved the following milestones:

• Developed the company’s name, logo, and website
• Created the list of hand-crafted products
• Determined equipment and inventory requirements
• Began recruiting key employees with experience in ecommerce or in artisanal crafts.

[Company Name]’s Products/Services

Iii. industry analysis.

[Company Name] competes against small, individually owned brands in the industry and major regional or national chains. The coronavirus pandemic supercharged Etsy’s growth, from $818 million revenue to $1.72 billion over the past three years. Etsy also doubled active buyers in that time period. Last year, the number of active sellers on the Etsy.com platform stood at 4.3 million and the site had 81.9 million active buyers who had bought goods through the platform.

Going forward, the hand-crafted goods market is forecast to reach a value of $448.5 billion in the next five years, registering a CAGR of 10.8%. Moreover, North American hand-crafted goods market reached a value of around $242.4 Billion. With the emergence of online retailing and proliferation of various e-commerce websites, the accessibility to artisanal products has significantly increased. Consumers can now buy artisanal items with the click of their smartphones and have them shipped anywhere in the world. Moreover, social media and the internet have made it more convenient for craftsmen to directly access their target markets.

IV. Customer Analysis

Demographic profile of target market.

[Company Name] will serve individuals with an eye for unique, artisanal jewelry and décor, who shop online.

Customer Segmentation

The Company will primarily target the following customer segments:

• Millennial Women – this demographic comprises the most significant market for [company name]. These women are comfortable making ecommerce purchases, and are established in their careers, which gives them disposable income.
• Gen X Women – this demographic is more likely to purchase higher-end products online, as their incomes are typically higher than the other target demographics for this industry.
• Gen Z Women – these women are digital natives, and are the most comfortable buying products online. While their disposable incomes are typically lower, the volume of purchases made by this age group make them a significant market.

V. Competitive Analysis

Direct & indirect competitors.

Competitor 1 The most widely recognized eCommerce platform around the world, Competitor 1 is accepted as the gold standard for corporate brands and small business owners alike. With Competitor 1, one can take advantage of an eCommerce platform that offers a website builder with hundreds of templates, all of which can be customized with the brand’s specific logos, images, videos, and text. With vast customization control and strong analytics, Competitor 1 offers the most powerful eCommerce functionality on the company’s list while also being user-friendly enough for most beginners to manage.

Competitor 2 Competitor 2 is an online marketplace that deals in artistic products of all kinds developed by independent experts. It not only provides a personalized platform for sellers to display their handmade goods but also helps them in creating a unique website/online gallery for the same. Competitor 2 provides a wide range of templates that can be modified with a simple bit of training. It accepts sellers of authentic artistic items on their platform for displaying their products, which they then allow the customers to buy. Competitor 2 ideally makes money through commissions from sales, but it also has paid plans for sellers wishing to utilize more resources on their platform.

Competitor 3 Competitor 3 is an online marketplace for artists that supports only US-based entrepreneurs. The seller needs to have US citizenship to sell on the platform, but the buyer ideally can be from anywhere in the world. Essentially, this C2C company focuses on promoting handmade products made by Americans for everyone! Competitor 3 provides a unique website for its customers. Its website builder is so easy to understand that even a novice can readily navigate through its technicalities.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

• Management : The Company’s management team has xx years of business and marketing experience that allows them to market and serve customers in an improved and sophisticated manner than the competitors.
• Relationships : Having lived in the community for xx years, [Founder’s Name] knows all of the local community, media, and other influencers. Furthermore, she will be able to draw from her existing personal and professional relationships to grow her client base.
• Great service at an affordable price : The array of hand-crafted products offered by [Company Name] nearly equals the most premium positioned competitor, [Competitor Name]. However, [Company Name] will offer these products at a much more affordable price.

VI. Marketing Plan

The [company name] brand.

[Company name] seeks to position itself as an upper-middle-market competitor on the Etsy platform. Customers can expect to receive premium-quality, authentic, hand-crafted items. The [Company Name] brand will focus on the company’s unique value proposition:

• Offering a unique range of products
• Good packaging, which can enhance the safety of the products
• Affordable prices
• Providing excellent customer service and support.

Promotions Strategy

[Company Name]’s promotions strategy to reach the audience includes:

Pre-Opening Events Before opening a shop under Etsy platform, [Company Name] will organize pre-opening events designed for prospective customers, local merchants and press contacts. These events will create buzz, and awareness for [Company Name] in the area.

Advertisement Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. The Company will advertise its products in popular magazines and news dailies. Obtaining relevant placements in industry magazines and journals will also help in increasing brand visibility.

Local Publications [Company name] will announce its opening several weeks in advance through publicity pieces in multiple local newspapers and publications. It will run regular advertisements to maintain exposure to relevant markets.

Social Media Marketing Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The Company will use social media to develop engaging content in terms of different handmade products and customer reviews that will increase audience awareness and loyalty. Engaging with prospective clients and business partners on social media platforms like Facebook, Instagram, Twitter, and LinkedIn will also help understand changing customer needs.

Word of Mouth Marketing [Company name] will encourage word-of-mouth marketing from loyal and satisfied clients. The Company will use recommendations and word-of-mouth marketing to grow the customer base through the network of its existing customers. The Company will be incentivizing its existing customer base to encourage their friends to come and try their unique, hand-crafted products.

Special Offers Offers and incentives are an excellent approach to assisting businesses in replenishing the inevitable customer churn each year. The Company will introduce special offers to attract new consumers and encourage repeat purchases, which will be quite advantageous in the long run.

Pricing Strategy

[Company Name]’s pricing will be moderate, so customers feel they receive great value when purchasing products listed in the Etsy shop. The customers can expect to receive quality products at a more affordable price than what they pay on a luxury e-commerce platform.

VII. Operations Plan

Functional roles.

To execute on [Company Name]’s business model, the company needs to perform several functions, including the following:

Service & Administrative Functions

• Product creation
• Logistics and Operations Manager
• Sales manager
• Customer service
• General & administrative functions including legal, marketing, bookkeeping, etc.
• Inventory management

VIII. Management Team

Management team members.

[Company Name] is led by [Founder’s Name], an entrepreneur with a life-long passion for hand-crafting unique jewelry, accessories, and décor. She has been crafting jewelry and décor for over [xx] years. While [Founder] has never sold her products on an ecommerce platform, but she has a loyal and rapidly growing following.

[Founder] graduated from the University of ABC where she majored in art. She has also earned an MBA in Sales and Retail Management from XYZ University.

Hiring Plan

[Founder] will serve as the Chief Executive Officer. In order to launch its shop on the Etsy platform, the company will need to hire the following personnel:

• Inventory and Quality Assurance Manager
• Sales and Marketing Manager
• Shipping and Logistics manager

IX. Financial Plan

Revenue and cost drivers.

[Company Name]’s revenues will come from the sale of products on the Etsy platform. The major costs for the company will be production and shipping costs, and salaries of the staff. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market.

Capital Requirements and Use of Funds

[Company Name] is currently seeking $200,000 to launch its shop under Etsy platform. Specifically, these funds will be used as follows:

• Design and build-out: $10,000

Key Assumptions

  5 Year Annual Income Statement

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How to write an Etsy Business Plan

If you’re creative, have an entrepreneurial mindset, and want to sell your crafts on Etsy, writing an Etsy business plan is the first step.

Do you want to start an Etsy shop but don’t know how? You can make the process of writing an Etsy business plan fun and can do it within one hour. You want to create a strategy for selling your products to the world, so ensure that it’s an enjoyable experience. Ensure that your plan is also creative like you.

On this page:

What is an Etsy Business Plan?

What should be your business plan outline, why do you need a business plan, what should be included in your etsy business plan.

It’s a written document in which you provide an overview and the future of your business. Whether starting a physical business or an online business, there must be a business plan.

It should describe your business strategy and your targeted goals. Moreover, it would help to tell where you’re now and where you want to go. Consider the following things:

• How can you make a profit through your business and build assets?
• Where do you see your business in the next 3 to 5 years?
• How many growth chances are there in your target market?

Anyone wanted to start a new business must have a business plan. It’s a vital tool for existing and established companies if they’re going to move in a new direction.

In your business plan outline, you must be clear about what you want to achieve and how will you achieve it? Moreover, you must be clear about your marketing and operational plans.

Business Overview

It means you must have a clear business strategy and action plan. Mention the following things in your business plan outline:

• What are your goals, and what will be your action plan to achieve them?
• How will you make money and increase resources?

When you are clear about your long-term goals, you can take steps towards success and keep your business on track. Moreover, consider your competitors in your target market and determine why your business will succeed and others might fail. A competitor analysis can better indicate where you stand and which innovations can help you grow your business?

Know your business best

Your business plan will indicate that you understand your business and the target market. You must be clear about how to deal with the potential obstacles and what are your expectations in the coming years? Your business plan must be a helpful tool to:

• Focus and develop ideas
• Find your business priorities
• Explore different options to find opportunities and get the most out of them

Be clear about your Funding Requirements

You need to have a clear financial plan because all the banks want you to have a detailed business plan for loans. You can convince banks and other potential investors to fund and grow your business when you have an in-depth plan in place. So, when you’re clear about your funding requirements, you can have a clear financial plan.

Plan for Hiring employees

When you plan to start a business, you can’t do it alone. You need to hire employees to expand your resources and increase your assets. This plan can help you attract new senior management, distributors, and business partners. You must be clear about:

• Your company’s vision
• Company’s mission statement
• Why does someone need to work with you

As mentioned earlier, it’s a detailed and written document that describes your business. It should cover business objectives, sales, marketing strategies, and financial predictions. A clear business plan can help you to:

• Set business goals
• Spot potential obstacles
• Clarify your business idea
• Measure your progress

Moreover, you must have a business plan to get investors or a loan from the bank. It also helps employees, suppliers, and customers to support you.

Let’s include a brief detail of what should be included in your Etsy business plan. Ensure that it’s under 140 characters and keep the Twitter example in mind.

• Value Proposition – Think, if you have only 140 characters, then what would you tweet to describe your business? It will encourage you to share only something unique about your business.
• Market Need – If you’re unsure about the market need, you can’t market your product. You can speak with potential customers to obtain feedback and understand what they like about your product. It will give you an answer to market needs.
• Your Solution – Describe why your product is unique and when someone would ask, what do you sell? What will be your answer?
• Target Market – Be clear about your target market: whom you want to buy your product, for example, gender, age, shopping habits, and geography.
• Competition – Identify where you and your buyers will buy if your products are out of stock. Knowing your customer is essential. Knowing your competition is also crucial.
• Funding Needs – You need loans from banks to purchase material. Be sure about how to use these funds and how much time will you take to pay the debt?
• Sales Channel – Here, Etsy is your selling platform. You can sell at a local boutique, but your goal should be to have wholesale accounts. You must have multiple sales channels.
• Marketing Activities – How will you market your products? You can advertise on a design blog or use Etsy Search ads for marketing. You need to perform different activities for each market segment.
• Financial Projections – How much will it cost you to make and market your products? How many sales can you generate in a specific time? Answer to these questions can help you set financial projections.
• Milestones – What you have achieved so far and what you want to accomplish in the future. It will help you to stay on track.
• Management Team – Let your employees know why you’re the right person to lead this venture. Hire employees that you need to run your business.

The Etsy Business Plan Checklist

This Etsy business plan checklist can help you a lot:

• Business Proposition – A brief description of your business can be even one sentence.
• Market Need – Which problems will your product solve by being in the market?
• Your Solution – Description of your products, and you can also add photos.
• Competitor Analysis – Who else is selling the same products in the market? How are your products better than theirs?
• Target Market – Who will be your potential customers?
• Budgeting and Forecasting – How much is your product’s manufacturing cost, and how much are you expecting to sell this year? Moreover, what will be your profit margin?
• Marketing – Which channel will you use, and what will be your marketing strategy?
• Milestones – What are your business goals, and what do you want to achieve in the next few years?
• Management Team – Do you have the guts and expertise to lead a team?
• Funding Resources – It’s optional because you might already have enough capital and not need any sponsor or bank to grow your business.

Pia has consulted for a number of digital startups and small businesses in Asia before coming to the UK. Pia writes about a wide range of SaaS and B2B products, including trends and issues on e-commerce, accounting and customer service software. She’s also covered a wide range of topics in business, science, and technology for websites in the U.S., Australia and Singapore.

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Etsy Business Plan Template & Guidebook

Are you ready to start an Etsy business and don't know where to begin? The #1 Etsy Business Plan Template & Guidebook is the perfect solution for busy entrepreneurs who need a straightforward, step-by-step plan for launching their dream business. This comprehensive guide helps users identify their business goals, define their target audience, and develop a solid monetization strategy, all while saving a tremendous amount of time in the process. With this tool in hand, getting started on your Etsy store has never been easier.

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

• How to Start a Profitable Etsy Business [11 Steps]
• 10+ Best & Profitable Etsy Business Ideas [2023]

How to Write a Etsy Business Plan in 7 Steps:

1. describe the purpose of your etsy business..

The first step to writing your business plan is to describe the purpose of your etsy 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 etsy business:

Our mission at [Etsy business name] is to provide unique and meaningful products to foster joy, connection, and creativity. We strive to create a safe and open space for customers to express themselves and increase the accessibility of handmade goods. We are dedicated to seeking out the best quality, craftsmanship, and artistry in each product we offer. We are committed to connecting artisans from around the world with accessible and meaningful products that bring joy and life into our customer's homes.

2. Products & Services Offered by Your Etsy Business.

The next step is to outline your products and services for your etsy 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 etsy 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 etsy 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 etsy 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?

Form an LLC in your state!

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 etsy business?

To run an Etsy business, you will need a computer or laptop, internet access, an Etsy account, a method of payment (credit card or PayPal), a printer, packaging materials (bubble wrap, tape, shipping boxes), postage or shipping labels, a digital camera (for photographing products), editing software (for cropping and resizing images), and any relevant permits or licenses required depending on your location and the type of business you are running.

5. Management & Organization of Your Etsy Business.

The second part of your etsy 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 etsy 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. Etsy 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 etsy business varies based on many different variables, but below are a few different types of startup costs for a etsy 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 etsy 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 etsy 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 etsy 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 Etsy Business Plans:

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

A business plan for an Etsy business is important because it provides a roadmap of the business and serves as a valuable tool for decision-making. It outlines goals, strategies, and tasks to accomplish them, and should include a budget, financial projections, a marketing plan, and other key information that can help ensure the success of the business. Additionally, having a business plan can help ensure that a business is run professionally and efficiently.

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

You can ask an experienced business advisor, accountant, or ecommerce consultant for help with your Etsy business plan. Additionally, it's helpful to research and read up on Etsy success stories and best practices for creating an effective business plan so that you can apply the lessons learned from the experiences of others.

Can you write a etsy business plan yourself?

Yes! Writing your own Etsy business plan is a great way to ensure that you have a clear understanding of your goals and objectives, the resources needed to achieve them, and the necessary steps for successful implementation. A thorough business plan should include an executive summary, market analysis, financial projections, and an action plan. There are also a variety of helpful resources available online to help you develop an effective Etsy business plan.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

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.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

Creating an Etsy Business Plan

Creator Economy Expert & Etsy Seller

Lindsey Becker

Creating an Etsy business plan is essential for anyone looking to start a successful Etsy shop. A business plan can help you define your goals, identify your target market, and develop a strategy for achieving your objectives. It can also help you secure funding if you need it and provide a roadmap for measuring your progress.

When creating an Etsy business plan, it’s important to consider your products, target market, competition, and marketing strategy. You should also include financial projections, such as your startup costs, revenue projections, and profit margins. By taking the time to create a thoughtful and well-researched business plan, you can increase your chances of success and avoid common pitfalls that many new Etsy sellers face.

Understanding Etsy

Etsy is an online marketplace where people can buy and sell handmade, vintage, and unique goods. It was founded in 2005 by Rob Kalin, Chris Maguire, and Haim Schoppik. Since then, it has grown into a global community of millions of buyers and sellers.

One of the unique aspects of Etsy is that it is a platform for creative entrepreneurs. It allows sellers to showcase their creativity and connect with buyers who appreciate handmade and unique items. Etsy also provides a variety of tools and resources to help sellers grow their businesses, such as analytics, marketing tools, and educational resources.

To sell on Etsy, sellers must create a shop and list their items. Etsy charges a small fee for each listing and takes a commission on each sale. Sellers can customize their shops with branding, policies, and more. Buyers can search for items by category, keyword, and location.

Overall, Etsy is a vibrant and diverse community of creative entrepreneurs and buyers who value handmade and unique items.

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Setting Up Your Etsy Shop

Before creating a business plan for your Etsy shop, you need to set up your shop. This involves choosing a shop name and creating a shop logo.

Choosing a Shop Name

Choosing a shop name is an important step in creating an identity for your business on Etsy. Your shop name will be displayed at the top of your shop page and part of the URL or web address of your unique Etsy shop. It’s important to choose a name that’s memorable, easy to spell, and relevant to your products.

To choose a shop name, consider the following tips:

• Keep it short and simple.
• Make it easy to remember and spell.
• Use keywords that describe your products.
• Avoid using special characters or numbers.
• Check if the name is already taken on Etsy.

Once you’ve chosen a name, you can customize your shop URL to match your branding. Learn how to change your Etsy shop URL here .

Creating a Shop Logo

Creating a shop logo is another important step in establishing your brand on Etsy. Your logo should be eye-catching, memorable, and reflect your brand’s personality. You can create a logo yourself using free design tools like Canva or hire a professional designer.

To create a shop logo, consider the following tips:

• Keep it simple and easy to read.
• Use colors that match your brand’s personality.
• Incorporate relevant symbols or images.
• Make sure it looks good in different sizes.

Once you’ve created your logo, you can add it to your Etsy shop page and use it on your product listings.

• How to Change Your Etsy Shop URL
• How to Close Your Etsy Shop
• What is an Etsy Shop Announcement? (+ 10 Examples!)

Creating a Product Line

When creating a business plan for an Etsy shop, it’s important to consider the product line that will be sold. This includes developing products and determining pricing strategies.

Product Development

To create a successful product line, it’s important to start with brainstorming and researching. Consider what types of products are currently popular on Etsy and what niche can be filled. Look for inspiration and ideas from other successful shops, but also ensure that the products are unique and have a personal touch.

Once product ideas have been generated, it’s important to develop prototypes and test them out. This can involve creating a small batch of products and testing them with potential customers to gather feedback. This feedback can be used to refine the product design and make necessary improvements.

Product Pricing

Pricing is an important aspect of creating a successful product line. It’s important to determine the cost of materials, production, and labor, as well as overhead costs such as shipping and Etsy fees. Researching competitors and the market can also help determine a fair and competitive price.

It’s important to find a balance between pricing that is fair to the seller and attractive to customers. Offering discounts, bundle deals, and free shipping can also be effective strategies for attracting customers and increasing sales.

• How to Make and Sell SVGs on Etsy
• How to Make and Sell Cricut Designs on Etsy
• Ideas for 3D Printed Products to Sell on Etsy
• What Art Sells Best on Etsy?
• How to Make and Sell PNG Files on Etsy

Marketing and Promotion

To increase sales and attract more customers, it is essential to have a solid marketing and promotion plan for your Etsy shop. Here are some effective strategies to consider:

Social Media Marketing

Social media platforms such as Facebook, Instagram, and Pinterest can be powerful tools for promoting your Etsy shop. Create a business account on each platform and share high-quality images of your products. Use relevant hashtags to increase visibility and engage with your followers by responding to comments and messages.

Consider running social media ads to reach a wider audience. Facebook and Instagram ads can be targeted based on demographics, interests, and behaviors, making them a cost-effective way to reach potential customers.

Email Marketing

Email marketing is a great way to nurture relationships with existing customers and encourage repeat purchases. Collect email addresses from customers who make a purchase and send regular newsletters with updates on new products, sales, and promotions.

Integrating your Etsy shop with an email marketing platform such as Mailchimp can streamline the process of sending targeted campaigns to your subscribers. Use personalized subject lines and high-quality images to increase open rates and click-through rates.

• Mailchimp Etsy Integration
• Are Etsy Ads Worth It?
• How to Set up Google Analytics for Your Etsy Shop
• How to Run Facebook Ads on Etsy
• How to Run a Sale on Etsy

Managing Finances

When it comes to managing finances for an Etsy business, there are a few key things to keep in mind. This section will cover setting up a business account and understanding Etsy fees.

Setting Up a Business Account

It’s important to have a separate bank account for your Etsy business to keep your personal and business finances separate. This will make it easier to track your expenses and income, and will also be helpful when it comes time to file taxes.

When setting up a business account, it’s important to choose a bank that offers low fees and good customer service. Some popular options for small business accounts include Chase, Bank of America, and Wells Fargo.

Understanding Etsy Fees

Etsy charges fees for listing items, selling items, and processing payments. It’s important to understand these fees so you can price your items accordingly and avoid any surprises when it comes time to pay your fees.

The current fees for selling on Etsy are as follows:

• Listing fee: $0.20 per item
• Transaction fee: 5% of the item’s sale price (including shipping costs)
• Payment processing fee: 3% + $0.25 per transaction

It’s also important to note that if you offer free shipping on your items, Etsy will still charge you a transaction fee based on the total sale price (including shipping costs).

By keeping these fees in mind and factoring them into your pricing strategy, you can ensure that you’re running a profitable Etsy business.

• Can I Sell My Etsy Business? How to Sell Your Etsy Shop
• Should I Charge A Handling Fee On Etsy?
• Why Etsy Requires Your SSN for Selling
• When Do Etsy Sales Pick Up?
• How to Sell on Etsy Without a Bank Account

Customer Service

Customer service is an essential part of any business, and an Etsy shop is no exception. As a seller, it is crucial to provide excellent customer service to ensure customer satisfaction and repeat business. This section will cover two critical aspects of customer service: handling customer queries and managing returns.

Handling Customer Queries

Prompt and friendly communication is vital when it comes to handling customer queries. As an Etsy seller, it is essential to provide customers with quick and accurate responses to their questions. Setting response times is a good practice to ensure that customers know when to expect a response. The response times should be clearly communicated to customers, and it is recommended to respond within 24 hours.

It is also essential to be polite and professional when communicating with customers. Sellers should avoid using negative language or being dismissive of customer concerns. Instead, they should be empathetic and try to find a solution that works for both parties.

Managing Returns

Returns are an inevitable part of any business, and Etsy shops are no exception. As a seller, it is essential to have a clear and easy-to-understand return policy. The return policy should be communicated to customers upfront and should include information on how to initiate a return, the timeframe for returns, and any other relevant details.

When handling returns, it is crucial to be prompt and professional. Sellers should respond to return requests promptly and provide clear instructions on how to return the item. Once the item is returned, it should be inspected promptly, and the refund should be processed in a timely manner.

• Returning or Exchanging Items on Etsy
• How to Block a Buyer on Etsy
• What to Do if Your Etsy Package is Stolen
• How to Edit Review on Etsy
• How to Cancel an Etsy Order for Buyers

Scaling Your Business

Once your Etsy business takes off, you may want to consider scaling it to reach a wider audience. Here are a few ways to do so:

Hiring Help

As your business grows, it may become challenging to manage everything on your own. Hiring help can take some of the load off your shoulders and allow you to focus on the bigger picture. Consider hiring a virtual assistant to help with administrative tasks or a freelance designer to create new products.

Expanding Product Line

Expanding your product line can help attract a wider audience and increase sales. Consider adding complementary products to your existing offerings or expanding into a new niche altogether. However, be sure to conduct market research and ensure that there is demand for the new products.

• How To Use Etsy Search Analytics Tool as a Seller
• Selling Manufactured Goods on Etsy
• How to Sell Google Sheets on Etsy
• How to Sell Excel Templates on Etsy
• Selling on Etsy vs. Selling on Instagram: A Comparison

• Search this website

Starting an Etsy Shop – FREE Printable Shop Planner

So you want to start an Etsy shop, but you’re not sure where to begin. I’m here to help!

I opened my Etsy shop on February 28, 2016. I had no guidance whatsoever, so I had no clue what I was doing. I just knew that I wanted to sell my paintings.

I searched all over Google, read so many articles, surfed the Etsy forums, and joined several Facebook groups for Etsy sellers. I fully immersed myself into the Etsy world. By June 2016, I had sold most of my paintings and started offering my vinyl creations and typography prints in addition to my paintings… and things just kept going up from there.

For those of you thinking about opening up an Etsy shop, I wanted to save you hours of searching the internet and give you a quick start guide to get you on the path to success. I’ve also released an entire planner for Etsy and Online Shop Owners, and I’m giving you the first section of that planner for free ! To have the first section of my planner sent to your inbox for free, be sure to click the link at the bottom of this post!

Disclaimer: Some links in this post may be affiliate links. At no cost to you whatsoever, I may receive a small commission from the merchant if you choose to purchase a product or service through an affiliate link. For more information, please read my  disclosure policy .

Perfect Your Craft

Whatever you make, make sure you make it well. Research everything you possibly can and practice, practice, practice. If you open up a shop and you’ve only made a handful of the things that you plan to sell, you’ll get off to a rough start and you’ll open yourself up to negative reviews from customers. I’m sure if you’ve been wanting to open an Etsy or Online shop, you’ve already done this step — but I feel it’s important to mention just in case !

Pick a Shop Name

First, you need to come up with a shop name. Make it as catchy as possible. Something that truly represents you and/or your craft.

I’m going to be honest with you here. I opened my Etsy shop in a spur of the moment decision, and I didn’t think twice about my shop name. I couldn’t even tell you what the original name was (I want to say it was ClydeArt but I might be wrong). I realized that I needed to come up with a new name less than an hour after opening my shop. I kept that name for a mere 2 days before coming up with a better name — Nap Time Acrylics. Nap Time Acrylics was a perfect name for my shop at the time, because I created all of my paintings during my son’s nap time, and all of my paintings involved acrylics. Once I started offering vinyl products in addition to paintings, I changed my shop name to Nap Time Design Co… and the rest was history!

If you don’t come up with a shop name you’re totally happy with in the beginning, you can always change it like I did! However, it’s important to know that Etsy allows you to change your shop name automatically only once. After that, if you’d like to change your shop name again, you will have to submit your new name, along with the reason why you’re wanting to change your shop name, for approval from Etsy. It’s honestly not a big deal to submit a new name for approval, but if you come up with an awesome name from the beginning — you’ll never have to go through that step!

If you’re struggling with coming up with a name, try out this awesome shop name generator !

Listing Photos

Having great photos is an essential part of becoming successful on Etsy… and you don’t have to be a professional photographer with an expensive camera to have great photos! You can use your phone! You can edit photos directly on your phone by using a free mobile app called PicMonkey (the desktop version is $5.99/month) — or you can use image editing software such as Photoshop or Lightroom to edit your photos! Etsy allows you to have up to 10 images per listing.

Personally, I find Photoshop to be the software that I use the most for both my shop and my blog. Not only can you edit your listing photos in photoshop , you can also create awesome graphics for your social media accounts!

This is another essential to success on Etsy. SEO stands for Search Engine Optimization. SEO is essential for getting found on the web, period. Etsy makes its own set of rules for SEO, and I believe Etsy’s SEO is much more simple than the SEO for most other websites.

The best piece of advice I ever received regarding SEO is to  think like a buyer . If you didn’t make your products, and were looking to purchase products just like yours, what words would you use to search for it?

You will need to come up with several “search terms” for each listing, and use these terms in your Title, Description, and Tags . The same terms need to be used in all three sections to optimize SEO.

Your keywords need to be 2-3 word phrases. Try to avoid one word phrases as much as possible. What I typically do is enter as many keyword phrases as I can into the title and separate them by commas. The title allows for 140 characters. Then I copy the title to the first line of the item description, then I copy it into my tags. Sometimes the keyword phrases are too long for the tags, and that’s ok! Tags allow for 20 characters, so you can divide your keyword phrases up. Also, you’ll usually have space for a few extra tags after copying the title (you’re allowed to have 13 tags), so use a few more of the keyword phrases you had come up with for that particular product!

Once I improved my listing images and SEO, these things paired together  significantly  increased my views, favorites,  and  sales. Before I knew it, my Etsy shop became a full time job.

Creating great listing images & mastering Etsy’s SEO are the two most important things you need to do in order to be successful on Etsy.

However, there are other things you can do to significantly increase your exposure and sales — AND I will also share the program that I use for bookkeeping that’s made specifically for crafters!

First, you’ll need a logo! You can create your own logo using Photoshop or Illustrator , you can hire someone to create a logo for you using Fiverr or Etsy , OR you can purchase a logo kit from Creative Market (you’ll usually need a software such as canva , photoshop , or illustrator to edit the pre-made logos).

In order to promote your shop outside of Etsy, you need to start business pages for your shop! You can create a business page on Facebook , and create business accounts on Instagram , Pinterest , and Twitter . Organize a giveaway or sale to promote the launch of your shop — this will lead to more followers and customers!

Another way to promote your shop outside of Etsy is to purchase a domain name (use your shop name for the URL), and start a blog! You can blog about your craft, post tutorials, talk about things that will pair well with your items, or what inspires you! The possibilities are endless with blogging. For this, I recommend purchasing a plan through BlueHost . BlueHost is a web hosting service that is partnered with WordPress, so you can build your blog from the ground up with little to no knowledge of coding! They are extremely user friendly and affordable, and all of their plans include a  free domain name .  My blog planner and guide on how to set up a blog is coming soon!

Order promotional products, such as business cards, flyers, and coupons, to include with your packaging! I recommend using VistaPrint or Moo for this. You can design your own using Photoshop or Illustrator , or you can fill in your information using the pre-made templates that are available on both websites!

Set up a newsletter for your shop! You can do this using MailChimp . MailChimp is totally free up to 2,000 subscribers, and it’s a great way to keep your followers informed of your new products, sales, or giveaways!

When you’re self-employed, knowing how to organize your business related finances can be tricky. CraftyBase is an online based accounting software that I used specifically for my Etsy shop, and I recommend it to  all people in the crafting business. You can create “recipes” for each of your products, and it will deduct your materials as they’re used. If you choose the pro plan, you can also sync it with your Etsy, Shopify, Square, PayPal, or WooCommerce account so it will instantly add your sales and revenue!

Lastly, I recommend signing up for EBates . EBates is not a way to promote your Etsy shop, but I always recommend this because you can get cash back for some of your business related purchases! I use EBates for both personal and business purchases. Any time I order supplies from Etsy or Hobby Lobby , I make sure to connect through EBates for cash back. It is completely free to sign up, and they will either send you a check or deposit your cash back directly into your PayPal account every 3 months! I have received over $1,000 cash back in 3 years by using EBates .

Remember… Life Happens!

Running an Etsy shop full time (or even part time) is completely different than having a “regular” job. You are your own boss, but you also have to play by Etsy’s guidelines . Etsy is understanding that life can happen, which is why they have a feature called “vacation mode” which allows you to temporarily disable your shop for as long as you need. I’ve had to do this several times, and that’s ok! Every time I’ve re-opened, my sales have continued.

I opened my shop on February 28th, 2016 and worked on my shop and orders everyday until I put my shop in vacation mode on December 6, 2016. During that year, I made 976 sales.

I took my shop out of vacation mode on January 1st, 2017. In March of 2017, I found out I was pregnant with my daughter. I had a lot of sickness during the pregnancy, and I was receiving 20+ orders per day, so I made the decision on April 8, 2017 to put my shop in vacation mode again. My shop remained closed until September 25, 2017, when I briefly re-opened. I went on vacation mode again for maternity leave on November 2, 2017. Even though I was closed for half of the year, I still made 858 sales that year.

I took several months for maternity leave, and took my shop out of vacation mode on March 20, 2018. When I re-opened, I had to deactivate several of my listings because a lot of my inventory is packed until I can get settled into my new office. Even with over half of my listings deactivated, I have made over 200 sales this year since re-opening.

Ready to Open an Etsy Shop? CLICK HERE to use my referral link, and get your first 40 listings FREE!

Online/etsy shop planner, click here to purchase the entire etsy/online shop planner. click here to get the shop details section of the planner for free.

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Hi! I’m Kathryn! I’m a wife, mom, blogger, and small business owner! I love to create things — anything from graphic design to DIY home decor — and I love to share my experiences with creating!

Tags : etsy seo , etsy shop , etsy shop planner

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