home based craft business plan

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.

Previous Post

Will Candle Wax Melt in the Microwave?

What are lava beads good for.

Related Posts

How Profitable Is a Candle Making Business

Candles have lit our world for centuries, providing warmth, ambiance, and lately, a lucrative business opportunity. Today, with the global candle market worth billions, crafting candles has emerged as a promising venture. In this article, we will look at the…

An official website of the United States government

Here’s how you know

Official websites use .gov A .gov website belongs to an official government organization in the United States.

Secure .gov websites use HTTPS A lock ( Lock A locked padlock ) or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.

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

• Business Ideas
• Registered Agents

How to Start a Craft Business in 14 Steps (In-Depth Guide)

Updated:   January 25, 2024

BusinessGuru.co is reader-supported. When you buy through links on my site, we may earn an affiliate commission. Learn more

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.

You Might Also Like

December 12, 2023

0  comments

How to Open an Art Gallery in 14 Steps (In-Depth Guide)

Now is the time for newcomers to consider opening an art gallery of their ...

December 4, 2023

How to Start a Graphic Design Business in 14 Steps (In-Depth Guide)

The graphic design business is on the way up, earning more than $7 billion ...

September 11, 2023

According to Business Research Insights, the global craft market could reach $74,457.88 million by ...

How to Start a Sticker Business in 14 Steps (In-Depth Guide)

Stickers are big business. The global die-cut sticker market is projected to reach $422.41 ...

Check Out Our Latest Articles

How to start a headstone cleaning business in 14 steps (in-depth guide), how to start a steam cleaning business in 14 steps (in-depth guide), how to start a dryer vent cleaning business in 14 steps (in-depth guide), how to start a yard cleaning business in 14 steps (in-depth guide).

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

Sharing is caring!

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.

Leave a Comment Cancel reply

© MakeMoneyForSure. All Rights Reserved.

Click here to view the FCA Business Interruption test case appeal outcome

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.

Using our fully automated service you could get your free no obligation quote today. Click the link below and take the first step towards bespoke coverage tailored to the unique needs of your business.

• Get A Quote
• Make A Claim
• Arts & Crafts Insurance
• Craft Workshop and Craft Class Insurance
• One Off Craft Fair Insurance
• Cake Making Insurance
• Candle Making & Wax Melts Insurance
• Ceramics and Pottery Making Insurance
• Cosmetic business insurance
• Fashion Accessories Business Insurance
• Flower Business Craft Insurance
• Jewellery Making Insurance
• Resin Art Insurance
• Craft Insurance Quotes
• Testimonials
• Existing User

Cricut Got You Overwhelmed? Crush Cricut Confusion & Start Crafting! Free Cricut Workshop

Trending Post : How To Stop Cricut from Ripping Cardstock

The Best Resources for Starting A Craft Business

This post may contain affiliate links that won’t change your price but will share some commission.

Starting A Craft Business from Home: Where to Begin

Starting your own successful craft business or small business of any kind is no easy task. Being your own boss means you do it all: social media manager, website builder, graphic designer, photographer, editor, marketer, and so on.

When I started my creative business 12 years ago, I spent much of my time stumbling around, trying to find answers so I could compete with the best of them. If you are considering starting a home crafting business, I don’t want you to have the same frustrating experience. I will share my top small business resources for my creative craft business that have helped me grow my profitable business into a multiple six-figure income!

Let me also preface this by saying there are many resources, apps, plugins, and companies bidding for your attention. It can get overwhelming.

While there may be a better fit for some, these are the resources I have consistently used to turn my craft hobby into a successful business. With that said, don’t be scared to do some of your own research and try new things, too.

Before diving into these details, you want to consider your target audience and the niche market demand you will focus on. Whether you want to earn extra income or turn your passion into a full-time job, these resources can help you grow a successful online craft business!

Where To Build and Sell Your Products

You already know what you want to sell, so let’s look at where you want to sell your handmade products or digital goods. A great way to sell is online. You can run your handmade business through an online marketplace, e-commerce shop, or self-hosted website.

There is one important thing I want you to remember: NEVER put all your eggs in one basket. If you are selling on a third-party platform (for example, Etsy ), you need to have a self-hosted site as well that no one can take from you. I am going to give you options for both in my list below.

First thing first: Marketplaces!

Etsy Marketplace

Etsy is one of the most widely known handmade marketplaces to sell on. With over 2 billion sales in 2022, you have likely shopped on Etsy yourself or at least know of them. Etsy is definitely an easy place to get started.

• Cost – 6.5% seller’s fee and .20 cent listing fee.
• Product Types Sold – handmade physical goods, supplies, and digital products.

Etsy Rank Or E-Rank (Keyword Tool For Etsy)

Now, if you are on a marketplace like Etsy, you may be searching for tools to help guide you with tags and titles. I recently started using E-Rank for this after switching from Marmalead .

Etsy Rank is AWESOME for Etsy sellers!

It will grade your listings and tell you how to improve them, let you track competition and search their keywords, tell you your Google and Etsy ranking, convey search trends, provide keyword searches, and so much more. With several of my listings, I saw immediate ranking improvement!

• Etsy Rank is free, or you can go pro for $10 a month.

Amazon Handmade

Amazon Handmade is an AMAZING place to sell because of the number of potential customers who flood Amazon daily. Furthermore, Amazon is a high-quality, trusted brand that buyers recognize.

Selling on Amazon can be accomplished on their main platform or on Amazon Handmade , which was opened in 2017. I sell my book on Amazon, but if I were to sell my paper flowers or craft templates, I would choose Amazon Handmade.

• Cost – 15% seller’s fee
• Product Type – physical goods

Creative Market

I LOVE Creative Market . I use them regularly for graphics and mockups for my websites and products. If you are a graphic content creator, then this is a fantastic platform to sell on. They select the best of the best, and the competition isn’t as saturated as other sites.

• Cost – You earn 70% commission
• Product Type – digital goods

Creative Fabrica

Creative Fabrica is a digital platform where you can sell SVG files, patterns, fonts, or anything digital that works as a design asset.

 Their fees are affordable, and they bring a significant amount of traffic. My favorite part about Creative Fabrica is that they handle customer support for you and only involve you when a file needs updating or correcting. Starting a craft business from home is a lot of work, and this feature is one of the best ways to save time without a lot of extra costs.

Self-Hosted Websites for Your Craft Business (DO THIS!)

Remember how I mentioned putting your eggs all in one basket is a bad idea? Having your own domain is one way to fix that. If you were to choose one of the marketplaces above to sell on, then ideally, you want to have your own website as well.

Why? Think of a marketplace as a rented space. If the landlord wants you out at some point, you don’t have any say in the matter.

Your own website, however, is yours alone. Plus, there are NO transaction fees to pay! That means more money in your pocket and more to invest!

I highly recommend a WordPress website for your online store for your craft business. With WordPress, you can create a store through the Woocommerce plugin and create a blog of your shop. A blog is a genius way to drive more traffic to your shop, which has been a key to my success at Abbi Kirsten Collections.

You will need a host for a WordPress site, and I HIGHLY recommend BigScoots – their customer support is fantastic!

WordPress offers many uses, but my favorites are…

Shopify is a prevalent choice for e-commerce solutions and is a great way to set up a shop for handmade products or digital goods. Shopify also integrates with countless apps to customize your site whole site!

• The Shopify basic plan starts at $39 per month.

2. Bigcommerce

Bigcommerce is very similar to Shopify, except it has existed longer. I have used Bigcommerce to make templates for my online shop. They also integrate with hundreds of apps beneficial to starting a craft business, and I have been delighted with them.

• Costs for these site setups vary depending on your host and the apps you choose. They can start as low as $10 per month.

Craft Business Search Engine Optimization

A website or shop is only as good as its SEO (Search Engine Optimization). You need your site or products to be found, whether starting a craft business or managing an established sole proprietorship. SEO is key in bringing in traffic and customers for any online business.

Luckily, there are tools to help you figure that out!

Yoast SEO Plugin

If you have a WordPress site, you need to ensure you have installed the Yoast SEO plugin. This plugin will help you nail your SEO, which will help your website get found on Google.

When using your Yoast plugin, it will ask you to input a focus keyword. This keyword is what that page or post will be ranking for in Google.

• Yoast is free to install, but they offer a paid plan with some additional premium features, too.

So, how do we find a focus keyword people search for on the internet? Use a keyword research tool!

Ahrefs is an excellent tool for keyword research when I am trying to determine if the keyword I have in mind is something people are looking for. You can have the best idea in the world, but it will never be seen if it doesn’t resonate with people.

• Ahrefs is $99 a month to start.

Keywords Everywhere

Keywords Everywhere is a fantastic browser extension that will help you see how many people are searching for the same things you are. I have this installed and use it to cross-reference words I find on Ahrefs.

• Keywords Everywhere works with credits and is as low as 1.25 per month.

Rank IQ is my favorite because it allows you to identify keywords by niche and topic. Beyond that, content optimization helps you learn what Google wants to see in your post, which will help you rank better.

If you are just starting a craft business, best practices include using Rank IQ above all else.

SEO Support

Search engine optimization can be overwhelming, especially if you know nothing about it! There are tons of SEO resources available to small business owners and bloggers that focus on teaching the ins and outs of SEO optimization. It’s worth it to take some time to familiarize yourself with SEO – take courses, join blogger Facebook support pages, and start with the basics! When you’re ready, reach out to an SEO expert and support team to help with aspects of optimization that you may not understand or have time to manage yourself.

Photography and Editing for Your Home Craft Business

When starting a home craft business, you need to learn some basics for taking good photos. Photography is key to the success of your product. No matter how pretty your product is in person, you can’t convey that with a dark, grainy photo.

If you are creating digital products, you still need to know how to make your screenshots attractive, create your own mockup designs, or learn how to use software to help you create mockups from stock image purchases.

Equipment For Product Photography

I will not recommend you buy fancy equipment immediately when starting out. You can use a basic camera or smartphone, but I recommend eventually working your way to a DSLR. A professional camera makes a huge difference!  You also want to check guidelines for photography sizes on social media platforms to ensure you sell your crafts using optimized photographs.

When you are just starting a craft business, it’s okay to use your smartphone camera (ideally one of decent quality and not super outdated). You will be fine if you have an iPhone under three years old. Use the internet to find tutorials on how to take the best photos with the equipment you have.

Once you can invest a little, I recommend upgrading to a DSLR camera because you will have many more options for fine-tuning your lighting, filming videos, using external cards for storage, etc. Both Canon and Nikon are great brands.

We don’t want dark or grainy images, so use proper lighting for your photos. Use natural light and adjust your settings to brighten the scene when possible. If natural light isn’t an option or is just not enough, opt for some studio lighting. I use these Newwer lights and love them.

If you are using a smartphone, a light ring may be your best choice and is a space saver.

There are several options for backdrops.

• Simple posterboards or a white wall and table (most affordable and easily accessible)
• Savage paper on rolls for a seamless backdrop (my personal favorite for larger styled scenes and flat lay photography
• Replica Surfaces – I love this brand for straight-on-styled shots with medium to small items.

Photo Editing

Once you take your photos, you need to edit them. Even the most perfect photo always needs a little bit of enhancement.

Photoshop is the obvious choice if you want the most robust tool and plenty of options to fine-tune your photos in a myriad of ways!

• Photo is a subscription service starting at $20 per month.

Picmonkey is the first site I ever started with when I began to edit my images. It is easy to use, beginner-friendly, and has affordable membership levels.

• The first membership tier is free, or you can upgrade to the $5 monthly plan for additional features.

Afterlight is a great app when you are using your smartphone to take pictures. It has tons of editing capabilities to brighten your images, add filters, change tones, crop, clarify, and more. It is worth it if you need to use your phone for photography!

• Afterlight is free to download, and you can go pro starting at $2.99 a month.

Adobe Lightroom

One of the reasons I love to use Lightroom is because it is a one-click-and-done process. I will upload my photos and find the best preset for that particular image. Once I select my preset, I am done and export my images. If you are looking for a way to add a professional touch to your photos, Lightroom presets can help with that.

• Lightroom and Photoshop are only $9.99 per month! And there are tons of free Lightroom presets online!

Once you are finished editing all your images, you are going to need a secure place to store them! Dropbox is my personal go-to choice. They have always been reliable, and I can store them according to my needs. You can start with a free plan.

• Dropbox plans are based on how much storage data you need, so they will vary for everyone, but you can start with a free plan.

Tiny PNG For Image Compression

Compressing final images is super important because you will save space wherever you upload them, such as a WordPress site. For this, I use Tiny PNG . Compressed photos allow your website to load fast (better user experience) and can reduce hosting costs when you have to store that data somewhere!

• Tiny PNG is only $39 per year for pro or free if your image is under a certain size.

After you complete your photos, you may need to take it up a notch with design elements or turn the photo into a Pinterest pin or carousel post for Instagram. Canva provides endless resources for social media templates, elements, graphics, animations, and stock photos.

• You can get Canva Pro for $14.99 per month.

Places To Find Mockups/Stock Photos To Use In Your Handmade Business

Mockups are so useful because they save you loads of time when you need to create a result showing how a product will look or could be used. I mostly used mockup images with my digital products, such as SVG cut files. Here are a few of my go-to resources

• Canva – if you have pro, you have access to stock images that can be used as mockups.
• Etsy – Etsy is full of styled mockups for various occasions and themes.
• Stock image sites like iStock, Shutterstock, Deposit Photos, etc.
• Placeit – Loads of custom smart mockups to place your images perfectly.
• Haute Stock – Beautiful themed collections that stand out from the crowd.
• Pixabay – A free stock photo site.
• Midjourney – AI-generated images great for producing your custom results.

Okay, I know this is long, so take a breather. But isn’t it great when you find a gold mine of resources?! Let’s keep going!

Marketing For Your Craft Business

You want your product in the hands of consumers, so you need a marketing plan. I’ve included online resources to ensure you advertise to your ideal customers, whether you find them at craft shows or in the digital handmade marketplace.

Social Media Marketing And Sharing

You have your product, your personal domain name website is set up, you’ve done market research, and your graphics and photos are ready to go. Now, you need ways to share them so you can start selling your products to a lot of people. After all, starting a home craft business isn’t any good if you don’t get the word out!

One of my favorite WordPress plugins to use is Milotree . It is so simple, yet very effective.

Milotree allows you to connect to your social media channels or email provider, so you can give a friendly popup to your customers, asking them to give you a follow.

This app is a great help for building up your social media channels. My Pinterest grew over 500% with this app!

Go Social Pro By Mediavine

For WordPress users, Go Social Pro by Mediavine is great for placing custom share buttons on your site to encourage readers and customers to share the item on their social platform of choice.

• This social plugin is $34 per year.

Tailwind For Pinterest

Ahh, Tailwind. You may have heard of it, and with good reason. It really is all it is cracked up to be.

Tailwind is a huge time saver when it comes to pinning on Pinterest, which, by the way, is the gateway to success for your products or digital goods!

I have been using Tailwind for two years and have seen consistent site traffic because of it. Plus, they are an approved partner of Pinterest, so you don’t have to fret about your account being shut down when using them.

Running a craft business operating on several social channels is great for exposure, though it can be difficult to keep up with. So choose the next few with care, and don’t overwhelm yourself.

Facebook Page And Groups

A Facebook page, group, or both are great ways to share and market your products or content to your online community. These take time to build and should never be solely relied on. Instead, make them just one piece of the puzzle that brings traffic and income.

Instagram works much like Facebook. The difference is the type of audience. Facebook tends to be a slightly older crowd, while Instagram is a younger crowd. Instagram is great for short-form videos and allows for a more personal touch in your posting.

YouTube has serious growth potential if you do it right and invest a hefty amount of time in it. An ad revenue stream can be opened with YouTube easily, but consistency is key here, and videos take time to learn how to do and are also time-consuming to create.

CraftGawker

This one may not apply to everyone, but if you have a blog alongside your shop where you can share craft-related posts or even your creation process, you may be able to share it on Craftgawker . Craftgawker is another social site, but it can be great if it fits your niche as another outlet to drive some traffic. Plus, it is fun to spend time on!

Email Marketing

When starting a craft business, learning to market your products is a big deal if you want to make some real headway. Email is a great way to generate sales when starting a home craft business. There are a lot of email providers out there.

I have personally tried Mailerlite, Mailchimp, Drip, and Convertkit. After much bouncing around,

I decided that Convertkit is by far the best option and the one I plan to stick with from here on out.

Convertkit allows you to tag subscribers so you can market more effectively to the right person on your email list. Plus, Convertkit has good deliverability, unlike its competitor, Mailerlite, which has had numerous issues. In the end, Convertkit won out.

• Prices will vary for this based on your number of subscribers.

Leadpages/LeadBoxes

Leadpages is a powerful marking tool. Leadpages is a landing page system that lets your readers or buyers focus their attention on one call to action.

They work wonderfully with tripwires (limited-time offers) and upgrades for products. Leadpages also integrates with your Convertkit account, so it will collect your sign-ups when you use their Leadbox function.

I also like to use Leadpages to build a page with all my social links, shop links, and blog links, then use that page as my URL on Instagram or Facebook to help people find exactly what they are looking for with one click. Nifty huh? The bottom line –  try Leadpages!

Shipping Materials

Unless you sell digital products only, you will need some shipping materials for your products.

To save money, it is always best to buy in bulk. I find places like Amazon often have bulk mailers that are easy to purchase in the size I need. I like to buy cute envelopes like these if I can!

When printing your customer’s shipping info, it is best to use sticker mail labels like these.

Adding a little something extra to your products, like thank you stickers , tissue paper, coupon flyers , and your business card, is always a plus; not to mention, it makes your customers feel like they’ve received the handmade shop treatment and will keep them coming back for more!

Good shipping providers are essential as well. Look into ShipStation , which can be integrated into many e-commerce sites to process orders and shipping details from your customers!

Craft Business Administration and Organization

Now that you know what you need when starting a home craft business, you will need tools to keep you organized!

Wave is a good free finance tool to use when you are starting out. However, I recommend switching to Quickbooks when finances grow and become more complex. It is important that, no matter how much or how little you make, you always report your taxes. We may not like it, but we do have to give Uncle Sam his cut.

Google Calendar

You can make your life easier by using a calendar system like Google Calendar as a scheduling tool. Chances are you won’t use this when you are just starting, but when you acquire some help or perhaps are working with people to build something in your business, you may need a tool to keep you all on the same page!

I love using Trello as a way of making lists. My head constantly overflows with ideas, so I need a way to write things out quickly. One reason I love Trello is that they have an app. So whether I am out with my phone or at home on my desktop, I can keep all my lists and notes synced!

I also use Trello to organize my completed content and attach images to their cards so it is visually easy to see what I am looking for!

Airtable is an advanced spreadsheet system that can create tables for project management, SOPs, tracking data or sales, and much more. Currently, we are using this to create detailed SOPs and project processes for our team!

Final Notes: Starting a Craft Business with the Right Resources

I know that was a mega-crazy brain dump. But I can say that I have personally used all these tools at one time or another and found them vital to starting a home craft business and keeping it running smoothly.

If you feel like your brain is running in circles with all this info, it’s okay. Take a breath. Pin it for later and work through it slowly. You don’t have to do all these things overnight. Work up to them.

Are there any other tools you recommend I add to this list for starting a home craft business? What are your favorites? Tell me in the comments!

Wishing you creativity and success!

About Abbi Kirsten

Welcome to my colorful corner of the internet, where we play with vibrant crafts and unlock your creative magic! Hang out with me and get lost in a fun array of projects, tutorials, and products, from stunning papercraft ideas to flower templates, Cricut help for beginners, and endless crafter’s hacks. 

Join the  Member Vault  and participate in my monthly Craft-Alongs in my  Facebook group to access all the magic!

Similar Posts

How to Get Traffic From a Blog: 3 Ways to Start Networking

The Essential Pages Your Creative Business Website Needs

Ecommerce Product Descriptions: 5 Tips that Sell Your Product

Top Stock Photo Websites: 26 Beautiful Stock Image Sites for Your Business

Best Home Office Ideas for Women: 15 Feminine Decor Ideas

How to Make a Pin for Pinterest: Easy Ways to Create Pins

Leave a reply cancel reply.

Your email address will not be published. Required fields are marked *

Notify me of follow-up comments by email.

Notify me of new posts by email.

Thank you for these resources! This is one of the more helpful articles I have found. 🙂

WOW! Yes, this is a lot, but it is all very helpful for those of us still deciding if/when to launch a home craft business. I will be following you and your tips. Thank you. Thank you. Thank you.

This was very helpful. Thank you. I have been looking to start a small side business with the cards I make and this gave me a lot of ideas!

The course was awesome! I found it easy to follow and very helpful. I’m a bit overwhelmed with the “start your own business information. There is so much that I’m still left wondering where do I begin…

Hi! I am glad to hear you love the course! Starting your own business will pose a lot of specific questions to each person’s business. What are your top 2 or 3 questions specific to your business and what is your business about?

OMG WOW! I am so THRILLED to have stumbled onto you page. I am in the process of getting my business up/running and you just flat out made my life easier! Bless you for you thoughtfulness!!

• Starting a Sports Podcast: The to Dos and Don’ts
• Podcast Promotion Hacks: Clever Ways to Market Your Show and Grow Your Audience
• How to Create an Online Community Driven Business?
• Personal Branding for Solopreneurs: Strategies for Success

Welcome to our Boss Houz! We are thrilled to have you here as we embark on a journey to explore the dynamic world of entrepreneurship, innovation, and all things business-related.

Business Planning

Dropshipping

Home Business Ideas

Passion and interest

Setting up operations

Start A Business

How to start a craft business from home.

• June 5, 2023
• 31 minutes read
• 10 months ago

Starting a craft business from the comfort of your own home is a thrilling and gratifying journey. This venture not only ignites your creative prowess in transforming materials into stunning masterpieces but also nurtures your entrepreneurial spirit in a competitive landscape. While shaping a successful craft enterprise requires diligent planning and dedication, it’s entirely achievable for determined individuals. Let’s explore the essential steps to launch your thriving home-based craft business.

Table of Contents

ㅤ 1. Choose Your Unique Craft Niche 🔍💡

Your initial step is to pinpoint the specific craft niche you’ll focus on. The possibilities are endless, ranging from handmade jewelry to bespoke woodwork. To strategize this decision, you can:

• Research current craft trends and popular products
• Identify any gaps or unmet needs in the market

As author and entrepreneur Seth Godin advises,  “The way you break through to the mainstream is by targeting a niche instead of a huge market.”  Focusing on a specialized niche helps you stand out among competitors and cater to a dedicated audience.

2. Develop A Distinct Branding Strategy 💼🌟

With your craft niche established, it’s vital to craft a captivating branding strategy that sets you apart from similar products. Consider the following key elements:

• A memorable business name
• A visually appealing logo
• A unique selling proposition (USP) that highlights what distinguishes your brand

Marie Forleo, a business strategist and author, emphasizes the importance of branding:  “Your brand is what other people say about you when you’re not in the room.”  A powerful brand forms connections with customers, conveying trust and credibility.

3. Gather Essential Materials & Create Prototypes 🛠 ️ 📐

Before launching your craft business , ensure you have all necessary materials and equipment for production. Creating prototypes at this stage allows you to:

• Fine-tune your design
• Identify any manufacturing challenges
• Test your product’s market viability

As renowned inventor Thomas Edison once said,  “To invent, you need a good imagination and a pile of junk.”  Iterating on prototypes allows you to perfect your product before investing valuable resources into mass production.

4. Establish A Strong Online Presence 💻🌐

Harnessing the power of digital platforms such as Etsy, eBay, or even your own website can exponentially increase your brand’s visibility and extend your customer reach beyond local boundaries. Be sure to:

• Create engaging product listings and descriptions filled with relevant keywords
• Employ high-quality images to showcase your products
• Incorporate customer testimonials for social proof

Etsy CEO, Josh Silverman, emphasizes the significance of small businesses by saying,  “Entrepreneurship has the potential to unlock incredible opportunities for progress, equality, and shared prosperity.”  Embracing the digital realm can propel your home-based craft business to soaring heights.

By following these crucial steps, you’re well-equipped to transform your creative passion into a flourishing craft business from home. Here’s to your success in building an enterprise that brings joy, connection, and beauty to customers near and far! 🌟

Reinventing Business: The Art of Crafting Profits

A craft business artfully blends creativity with lucrative opportunities, delivering unmatched handmade creations that resonate with customers worldwide. But what exactly lies at the heart of this unique entrepreneurial venture?

“Crafts are not just about creating something beautiful, but also about expressing the soul and connecting with people.” – Joanne Chang, Renowned Pottery Artist

The term “crafts” paints a panoramic picture, encompassing a diverse range of activities, from the traditional world of painting, knitting, and quilting, to the innovative domains of sculpture, jewelry-making, pottery, and glasswork. Interestingly, even writing stories or books finds its place in this all-embracing terminology.

Unlike the monotonous, mass-produced outputs of large corporations, craft businesses celebrate exclusivity and personal touch. Often created as one-off masterpieces or limited-edition series, these artisanal products thrive on quality over quantity. As a result, their reach extends beyond localities, building an international customer base through popular online sales platforms, such as Etsy.

In an increasingly digital world, where human connections appear fragile, the allure of a craft business lies in its ability to forge personal relationships. Customers are not just customers; they’re enthusiasts, passionate about connecting directly with the talented creator behind their cherished handmade items.

💡  Are you considering launching your own craft business?  

It might be a thrilling yet intimidating endeavor, but it’s one overflowing with potential when executed the right way.

To sum it all up, a craft business is built upon a foundation of creativity, passion, and the desire to inject soul into the products that are designed, created, and sold. It’s more than just a business; it’s a timeless canvas that offers unending possibilities for artistic expression and meaningful connections.

Setting Up Your Dream Home Workspace

Starting a craft business from home is an exciting endeavor. Having the perfect workspace is crucial to support your creative journey and productivity. In this article, we’ll explore key considerations and tips to help you set up an efficient and comfortable crafting sanctuary.

Finding the Ideal Space

Identifying the right space for your home-based craft business might seem daunting, but with a little thought and planning, it can be an enjoyable and rewarding process.

“The ideal workspace should offer sufficient room to store materials, equipment, and finished products, while also providing an inspiring and comfortable environment to work.” – Marie Kondo, tidying-up expert and best-selling author.

Here are some factors to keep in mind when selecting your workspace:

• Size : Ensure the area is large enough to accommodate your crafting necessities.
• Natural Light : Prioritize spaces with ample natural light, or invest in quality artificial lighting to illuminate your detailed projects.
• Quiet & Distraction-Free : Choose a tranquil location (e.g., a spare room or dedicated corner) that allows for focused, uninterrupted work sessions.

Essential Equipment & Supplies

Depending on your chosen craft, the required tools and supplies may vary. Consider creating a detailed inventory of necessary items and invest in high-quality options that will last.

Common crafting essentials include:

• Sewing machines
• Specialized tools (e.g., knitting needles, brushes, etc.)

Internationally renowned crafting expert Martha Stewart emphasizes that having the right tools for your craft is essential, stating, “Having the proper equipment and materials will make your projects look polished and professional.”

Stay Organized with Smart Storage Solutions

To maintain a tidy and efficient workspace, use storage containers or customized organizing systems for smaller items and materials. This helps prevent clutter and simplifies inventory management.

“For every minute spent organizing, an hour is earned.” – Benjamin Franklin

Prioritize Comfort with Ergonomic Furniture

Long hours spent crafting can take a toll on your body. Invest in ergonomic furniture, such as adjustable chairs and crafting tables, to create a comfortable workspace that supports your health and productivity.

Renowned productivity expert David Allen states that “a comfortable, well-organized work environment can make a significant difference in your ability to focus and generate high-quality output.”

Take the time to set up a home workspace that meets your unique crafting needs and preferences. By selecting a suitable space, equipping it with essentials, staying organized, and prioritizing comfort, you’ll be well on your way to creating fantastic products. 

🎯 Mastering Your Market Research

Crafting a brilliant idea for a home-based business is just the beginning. Transforming it into reality requires thorough market research that delves into the foundation of your venture. Understanding your target market and devising strategies to impress them with ideal pricing, captivating advertisements, and irresistible promotions are paramount.

“The best way to predict the future is to create it.” – Peter Drucker

Diving headfirst into your business without diligent research could bring costly consequences later. 🚧 Give yourself a head start by investing time and effort in intelligent planning and preparation. Take the following steps to ensure you have the necessary insights for a thriving craft enterprise:

🔍 1. Evaluate Competing Businesses

Study businesses resembling your own and determine their success or failure rate. Uncover the reasons behind their outcomes to avoid the same pitfalls.

📈 2. Understand Market Trends

Gain insights from industry trends, such as popular products and marketing tactics employed by your competition. This valuable information will guide your decisions on sales channels, product features, pricing strategies, and more.

🗣 ️ 3. Listen to Your Potential Customers

As Bill Gates once said, “Your most unhappy customers are your greatest source of learning.” Keep tabs on customer feedback related to existing craft businesses. Utilize this data to differentiate your company by offering superior services or unparalleled craftsmanship.

By meticulously investigating the needs and expectations of potential customers, along with your competitors’ strengths and weaknesses, you’re building a strong foundation for your small business. This solid groundwork equips your venture with the resilience and adaptability needed for lasting success while mitigating the inherent risks of starting from scratch.

The Art of Crafting Your Unique Products

Crafting your products begins with finding a niche – a truly exciting and rewarding process. Passion plays a crucial role here, so let your enthusiasm lead you to an intriguing item, an innovative concept, or a timely trend. As renowned entrepreneur and author Seth Godin once said, “Instead of wondering when your next vacation is, maybe you should set up a life you don’t need to escape from.”

Step 1: Unleash Your Creativity through In-Depth Research

Begin by thoroughly researching your chosen niche. Explore the market landscape and keep an eye out for emerging trends, unmet needs, and potential challenges. This process lays the foundation for creating unique, innovative designs that captivate your target audience.

Step 2: Develop Prototypes that Speak to Your Audience

Next, bring your ideas to life with meticulously crafted prototypes. Use high-quality materials to ensure durable, long-lasting products that win over even the most discerning consumers. As Marie Kondo, the organizing and decluttering guru, advised, “The question of what you want to own is actually the question of how you want to live your life.”

Don’t forget that consumer preferences evolve, so design with adaptability in mind. Keep a keen eye on market trends and update your products regularly to stay relevant.

Step 3: Market Your Masterpieces and Reach New Customers

Once your line of products is ready, it’s time to show them off to the world! Utilize the power of online platforms like Etsy and eBay, which allow global shopping from the comfort of one’s home. Social media presents another fantastic opportunity for elevating your brand – use visually rich posts to highlight your offerings and connect with potential customers.

Continuously prioritize search engine optimization (SEO) to ensure your products are easily discoverable. Incorporate relevant keywords, LSI keywords, and Google NLP entities throughout your digital marketing efforts to stay ahead of the competition.

Step 4: Showcase Your Creations at Local Events

Finally, broaden your reach by participating in art shows, craft fairs, and local events. These engagements not only increase your visibility but also provide invaluable networking opportunities with fellow creatives, suppliers, and business enthusiasts.

By following these steps and leveraging your unique passion and expertise, you’ll soon find yourself at the helm of a thriving craft business, operating seamlessly from home. So, what are you waiting for? Dive in and start creating magic!

The Art of Crafting Profitable Pricing Strategies 💰

Creating a thriving craft business isn’t just about making unique products; it’s also about mastering the art of pricing them effectively. Determining the right pricing strategies is crucial to maximizing profits while ensuring your customers feel they’re receiving great value for their money. Discover the key aspects and important steps to craft the perfect pricing approach.

1. Spy on Your Competitors 🕵 ️‍ ♂ ️

“In business, you can’t make good decisions if you don’t know what your competition is doing.” – Lance Walker, SEO specialist

Take a look at what your competitors are charging for similar items and adjust accordingly. By staying informed of their prices, you can position yourself as a competitive player in the market.

2. Calculate True Production Costs 📝

Consider all the factors that contribute to production costs, such as:

• Overhead expenses

Incorporate these expenses when determining the price of your products. This ensures that you’re not only covering costs but also securing a reasonable profit margin.

## Tip:  Implement a cost-based pricing strategy by adding a markup percentage to your production costs. This ensures you’re covering expenses and maintaining a healthy profit margin.

3. Offer Discounts & Promotions to Boost Sales 🚀

“Discounts are powerful tools, and when used correctly, they can drive incredible results.” – Neil Patel, Digital Marketing Expert

Strategically offer discounts or promotions on select items throughout the year, which can:

• Increase sales volume
• Attract new customers
• Drive customer loyalty
• Bundles & Sets:  Offer bundles of multiple pieces at discounted prices, which often generate more revenue than selling individual items at full price.
• Free Shipping:  Provide free shipping incentives to attract more customers and encourage repeat purchases.

## Remember:  Thoughtful planning yields creative strategies that allow you to maximize profits while offering attractive discounts and promotions for customers.

How to Establish a Powerful Brand Identity for Your Craft Business

Did you know that nearly 40% of small businesses failed within their first five years as of 2018? One of the key factors that can propel your craft business to success is establishing a solid brand identity . A clear and consistent visual and messaging strategy that communicates your company’s values and mission statement will captivate your target audience and foster an emotional connection with your customers.

“Your brand is what people say about you when you’re not in the room.”  – Jeff Bezos, Founder of Amazon

Getting started with your brand identity can feel overwhelming. To help you rise above the competition, we’ve broken down the essential elements of a strong brand identity into two primary categories:  Visual Branding  and  Messaging/Copywriting .

Visual Branding:

• Logo Design:  Your logo is the face of your brand. Hiring a professional designer or using a logo maker tool will ensure you have a unique, memorable logo that reflects your craft business’s essence.
• Color Palette:  Colors play a pivotal role in expressing your brand’s personality. Pick colors that resonate with your target audience and evoke the right emotions.
• Font Selection:  Typography is crucial for maintaining a consistent visual identity. Choose a typeface that complements your logo and messaging.

Messaging/Copywriting:

• Tagline or Slogan:  A powerful tagline captures the essence of your brand in just a few words. Think of Nike’s “Just Do It” or Apple’s “Think Different.”
• Product Descriptions:  Craft compelling product descriptions that showcase the features, benefits, and unique selling points of your handcrafted products.
• Customer Service Messages:  Interacting with your audience in a consistent voice and tone builds trust and encourages repeat business.

“People don’t buy what you do; they buy why you do it.” – Simon Sinek, renowned marketing expert

Maintaining consistency across all branding elements allows your potential customers to recognize your products and develop loyalty. Utilize creative approaches like unique logos and engaging slogans that give consumers a lasting impression of your business while building trust and credibility, ultimately leading to increased sales and profits.

Moreover, harnessing the power of social media platforms such as Instagram and Twitter is an effective way to reach out to customers personally. Provide updates about new products or promotions that could draw attention away from competitors while creating an impactful online presence with minimal cost investment.

By implementing the essential elements of an influential brand identity, you’ll set the stage for long-term success in your craft business, fostering trust, loyalty, and an enduring connection with your customers.

Building Your Online Presence: The Foundation of a Successful Craft Business

Embarking on your journey to establish a thriving craft business from home begins with  creating a powerful online presence . Today’s digital world necessitates a robust online foundation for any modern enterprise, allowing you to showcase your unique creations, build rapport with customers, and seamlessly facilitate transactions.

“In today’s connected world, an online presence is essential for all businesses – not just e-commerce companies.”  – Neil Patel, marketing expert and best-selling author.

Step 1: Launch Your Home Base – Design a Captivating Website

Your website serves as the cornerstone of your craft business. It should be visually appealing, user-friendly, and provide vital contact information to your audience. To enhance your customer experience, consider integrating an e-commerce platform, enabling shoppers to comfortably purchase your products with just a few clicks.

Step 2: Leverage the Power of Social Media

Building brand awareness and fostering meaningful interactions with potential customers are best achieved through social media channels. Go beyond conventional platforms and explore niche networks that cater to the craft community, as this will help generate leads and expand your reach.

Thought-provoking question:

Are you utilizing all relevant social media platforms to tap into your target audience and attract prospective customers?

Step 3: Master the Art of SEO

To rise above the competition and stay at the forefront of people’s minds, your website must be optimized for search engines like Google and Bing. Develop engaging, informative content related to your craft business, embed relevant keywords, and utilize LSI and long-tail keywords to improve visibility in search results.

Step 4: Share Your Knowledge Through Blogging

Maintaining a blog is an excellent opportunity to share industry insights, showcase your craft, and engage potential customers. By consistently providing valuable content, you’ll foster a dedicated following who may become future patrons of your home-based craft business.

“Consistent content creation allows you to establish yourself as a thought leader in your industry.”  – Joe Pulizzi, founder of the Content Marketing Institute.

Step 5: Craft Compelling Email Campaigns

Personalized email marketing campaigns are crucial in maintaining brand interest and fostering customer loyalty. Additionally, joining online forums and actively participating in crafting communities can help bolster your online presence.

Optimize your product descriptions with strategic SEO techniques to further enhance online visibility, consumer reach, and conversion rates.

By diligently developing your online presence, you’ll draw in new prospects, build trust with your customers, and ultimately drive sales success for your home-based craft business. So go on, explore these steps, and watch your craft empire soar!

Crafting the Perfect Advertising Strategy 💡

Advertising  is an undeniable game-changer for the  success  of any  craft business . To skyrocket your visibility and reach, it’s crucial to hatch a cutting-edge advertising strategy that masterfully marries both  traditional  and  digital  methods.

Let’s explore these advertising avenues that hold the key to driving unparalleled success in the world of crafting.

Traditional Methods 📰

Proven to be effective in capturing the hearts and attention of local communities, traditional advertising methods like  flyers, radio advertisements, posters, and word-of-mouth  should never be underestimated.

Renowned marketer Seth Godin says, “Advertising is the science of arresting human intellect long enough to get money from it.”

Embrace the tried-and-true means of spreading the word about your craft business, and you’ll be well on your way to creating a buzz that resonates with your target audience .

Digital Domination 💻

In the digital age where possibilities are limitless, online platforms such as  Instagram, Facebook, and Pinterest  offer craft entrepreneurs the opportunity to connect with a global audience eager to discover unique and creative products.

Visual Storytelling 🌟

When it comes to crafting businesses, creativity is  king . For instance, if your expertise lies in  handmade jewelry  or  custom wood furniture designs , captivating visuals could be your secret weapon:

• Showcase your alluring products on Instagram with striking images that draw potential buyers in.
• Document behind-the-scenes peeks and artistic processes for your followers to share your journey and generate interest.

As photographer and creative entrepreneur Jasmine Star reveals, “A strong social media presence is the storefront of your business in the digital age.”

Interactive Engagement 🎬

Increase your business’s reach further by hosting  virtual workshops  on platforms like  Zoom  or  Skype .

• Use these events to engage with new audiences.
• Generate leads for sales by offering valuable insights on crafting techniques or DIY projects.

Seize Trends & Events 📅

Capitalize on trending themes and annual events to create compelling advertising campaigns that resonate with your audience:

• Tailor promotions around holidays like Christmas, Halloween, or Valentine’s Day.
• Collaborate with fellow craft businesses or influencers for limited-time collaborations and giveaways.

Blending both traditional and digital advertising methods, and harnessing the power of various promotional techniques, will propel your crafting business towards unparalleled success. In the wise words of advertising mogul David Ogilvy, “Don’t count the people you reach; reach the people that count.” Shape a strategy that connects with your ideal audience, and witness your craft business transform by leaps and bounds.

The Art of Building Supplier Relationships for Your Craft Business

Embarking on a home-based craft business journey calls for the crucial task of forging meaningful relationships with suppliers. These connections not only ensure that you have the resources and materials needed to create your crafts, but they also provide valuable insights on ever-evolving industry trends.

“The strength of your supplier relationships is one of the key determinants of your enterprise’s success.” – Richard Branson, Founder of Virgin Group

Researching Potential Suppliers:

Before committing to a supplier, it is prudent to research and assess their offerings diligently.

• Customer Feedback:  Analyze previous customer reviews to determine the supplier’s track record, reliability, and product quality.
• Policies and Procedures:  Make inquiries regarding their policies on ordering, shipping, returns, and warranties, ensuring a seamless relationship between you and the supplier.

Building Trust Through Effective Communication:

Consistent communication is the foundation upon which you build trust with your suppliers.

• Prompt Replies:  Respond to your suppliers promptly when needed, this reflects professionalism and reliability.
• Open Dialogue:  Engage in open communication to effectively address any operational hiccups, such as changes in inventory levels or turnaround times.

“Effective communication leads to stronger relationships, and stronger relationships lead to better outcomes.” – Marcel Schwantes, Founder of Leadership from the Core

Creating Lasting Partnerships for Mutual Growth:

By being proactive and professional, you can forge strong connections with suppliers, leading to lasting partnerships that mutually benefit both your craft business and their venture.

Actionable Tip:  Regularly connect with your suppliers, sharing valuable information and discussing any business concerns, to continually optimize the partnership.

In conclusion, thriving in the competitive world of home-based craft businesses necessitates the diligent cultivation of relationships with suppliers. By focusing on research, open communication, and trust-building, you can pave the way for lasting partnerships and drive the success of your dream enterprise.

Conquer the Art of Shipping and Fulfillment in Your Craft Business

Shipping and fulfillment hold the power to make or break your craft business, determining the success and longevity of your entrepreneurial journey. To guarantee a seamless and efficient delivery experience for your customers, it’s vital to master the realm of shipping and fulfillment, complementing the significance of building solid relationships with suppliers.

“Shipping and fulfillment are pillars in the temple of eCommerce success.” – Andrew Maffettone (Founder, BlueTuskr)

Let’s explore the crucial steps for crafting the perfect shipping and fulfillment strategy:

1. Explore a World of Options

Diving head-first into the logistics landscape, it’s crucial to forge strong alliances with reputable shipping or logistics companies. Analyze their rates, the array of services they provide, and their insurance coverage before making a commitment.

2. Strive for Cost-Effectiveness

Aim to strike a perfect balance between short-term expenses and long-term sustainability while scouting a service provider that caters to your craft business needs. Savvy entrepreneurs select their carriers by making well-informed comparisons between prices offered by various competitors.

“Cost efficiency should be a key driver in your choice of a shipping partner.” – Jan Bednar (CEO, ShipMonk)

3. Master the Art of Process Management

As the conductor of your craft business orchestra, it’s your role to efficiently manage all aspects of shipping and fulfillment. Keep tracking information updated, stay vigilant of possible delays, and touch base with customers to assure them about the status of their orders.

Quick Tip:  Use technology to your advantage, leveraging order management software for streamlined tracking.

Reaping the Benefits of Seamless Shipping and Fulfillment

Ultimately, your choice in shipping and fulfillment plays a starring role in how swiftly your products reach their destination, directly influencing sales opportunities and the overall growth of your business. Careful forethought and groundwork can lead you to form unyielding partnerships with top-tier providers that empower your venture to deliver high-quality goods effectively, efficiently, and affordably.

Mastering Accounting and Bookkeeping: The Key to Business Success

Accounting and bookkeeping are the lifelines of any business, including home-based craft ventures. Do you realize the significance of maintaining accurate records of every financial transaction for your home-based craft business? A well-organized system is paramount to success, as it enables you to track your income, expenses, payroll taxes, sales tax, accounts receivable/payable, and other vital information.

Ready to dive into the world of accounting basics? Let’s get started!

Accounting Tools: Spreadsheets or Software?

Begin with Excel or a specialized application:  To kickstart your accounting journey, consider using Microsoft Excel or hunting down small business accounting software. Having apt tools at your disposal can considerably ease tracking cash flow, generating reports promptly, and identifying potential issues on time. Moreover, historical data accessibility can empower you in making well-informed decisions about pricing strategies and budgeting.

“The best investment you can make is not in stocks, bonds, or mutual funds. It is in your financial education.” – Robert Kiyosaki, author, and entrepreneur.

Leveraging Professional Expertise

Contemplate engaging an accountant or bookkeeper:  As a business owner, think about outsourcing specialized services like annual tax return preparation and employee benefit/deduction regulation expertise to professional accountants or bookkeepers. This not only ensures precise record keeping but also frees up your valuable time to focus on your core business activities.

“Behind every good business is a great accountant.”  – Piyush Marwah, accounting thought leader.

Key Takeaways

• Embrace the importance of accounting and bookkeeping as crucial aspects of your home-based craft business.
• Leverage tools such as Excel spreadsheets or small business accounting software to manage your financial records effectively.
• Engage professionals for specialized services to maintain accurate records and navigate complex regulations associated with your business.

By mastering these accounting and bookkeeping basics, you’ll be well on your way to making your home-based craft business a true success story. Remember, knowledge is power – and in the world of business, powerful accounting insights can be the key that unlocks the door to growth and prosperity.

Unveiling the Legal Maze: Key Considerations for Your Thriving Home-Based Business

Setting up a flourishing home-based crafts business can feel like navigating a tightrope – a misstep might spell disaster. To ensure your venture complies with local laws and regulations, it’s critical to grasp the legal aspects of running a business from your residence.

1. Demystifying Zoning Ordinances

First and foremost,  get acquainted with zoning ordinances  that apply to businesses operating in residential areas. Investigate any constraints regarding signage, parking, or other factors that could impact your entrepreneurial journey. As the influential entrepreneur Tony Robbins says, “Knowing your outcome eliminates the noise and focuses your energy on what truly matters.”

Quick Tip:  Apply for the necessary permits  before  commencing operations. Depending on your state’s requirements, register as a Sole Proprietor or Limited Liability Company (LLC).

2. Licenses Galore

Make sure you’ve procured all the appropriate licenses, such as food handling licenses and sales tax permits. Compliance is crucial to safeguard your blossoming endeavor.

“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” – Warren Buffett

3. Insurance Implications

Homeowners’ insurance might not provide enough coverage for your home-based enterprise. Evaluate whether additional insurance is necessary. Some businesses mandate  specific liability coverage  to protect against accidents or damages tied to their services or products.

4. Hiring Employees? Know the Rules!

Lastly, when hiring employees for your home business, familiarize yourself with the applicable labor laws and taxes. This includes understanding minimum wage requirements, overtime pay regulations, and withholding federal income tax amounts according to Internal Revenue Service guidelines.

A Word from Industry Leader Gary Vaynerchuk:  “Skill acquisition, brand building, and proper tactical maneuvers are all part of the overall game, but  patience is essential .”

By taking these prudent steps, you’ll be better equipped to shield yourself and your business as you embark on the road to success. With a solid legal foundation, you can focus on nurturing your home-based business and transform it into a thriving enterprise. So, go bravely into the world of entrepreneurship and create the business of your dreams!

Mastering Inventory Management for Craft Businesses

Proper inventory management is the backbone of a successful home-based craft business. To excel in this area, focus on these key aspects and practical steps to optimize your inventory processes.

1. Upgrade Your Tracking Systems

Invest in a robust  inventory management software  to streamline your supply and purchase tracking. This ensures each transaction-related material purchase and product sale is accurately recorded.

“An efficient inventory management system will help you make better informed decisions about what to buy, when to buy it and how much to buy,” – [Megan Auman, Designer, Metalsmith & Educator]

2. Allocate Ample Storage Space

Designate sufficient room for storing raw materials and finished goods to maintain an organized and easily accessible inventory.

3. Conduct Regular Stocktaking

Perform stocktaking exercises  at least twice a year  or more, depending on your craft business’s turnover rate. Regular checkups help in identifying shortages or excesses and addressing them promptly.

4. Automate Reorder Points

To prevent stockouts and overstocking, set up automated reorder points based on your usage history. This ensures efficient usage of resources.

“Setting up reorder points ensures that you have the right amount of inventory when you need it.” – [Katrina McKinnon, Inventory Management Expert]

5. Implement Barcode or QR code Systems

Consider employing barcodes or QR codes to track individual items, particularly for large stock volumes. Investing in scanners and printers will make this process more efficient.

6. Partner with Reliable Suppliers

Forge alliances with trustworthy suppliers who offer high-quality materials at competitive prices. Reliable suppliers enhance your craft business’s profitability.

“Your suppliers are essentially an extension of your own business, and a good partnership with them is crucial for your success”, – [Patricia Weber, Founder, and CEO of PaperPapers]

Take your inventory management to new heights by implementing these steps and watch your craft business thrive.

Tax Deductions for Home-Based Businesses: Unlocking Savings for Entrepreneurs

The dream of working from home and launching a business lures countless entrepreneurs, but often questions about the tax landscape remain. Fear not, intrepid business owners— you can  enjoy the benefits of tax deductions for expenses incurred while running a home-based enterprise, albeit with certain limitations. To maximize your tax savings and comply with the Internal Revenue Service (IRS) rules, mastering these key principles is essential.

“In this world, nothing can be said to be certain, except death and taxes.” – Benjamin Franklin

Deductions Galore: Crafting Your Way to Tax Savings

Imagine  you run a craft business from the comfort of your home. You’re eligible for a  plethora of tax deductions , from work-related utilities to furniture, office supplies, and even transportation expenses for business travel. Understanding this vast scope and how deductions may apply to your business is crucial.

Home Office, Sweet Deductible Office

Do you use a specific space at home for your business? If so,  congratulations —you can claim deductions on operational costs associated with that area. This includes:

• Electricity
• Phone services
• Office supplies and furniture
• Any other required items to run your business

Don’t forget to   maintain precise documentation  of your work-related expenditures, as meticulous records ensure you can reap the maximum tax benefits.

Hit the Road (and Deduct Mileage)

Whether you embark on business trips or deliver your crafts, keeping track of the miles logged pays off— literally . Apart from documenting actual driving expenses, such as fuel and maintenance, you can choose the  standard mileage rate deduction , which the IRS updates annually. Embracing this option simplifies bookkeeping and may yield higher savings.

Retirement Savings: Self-Employed and Tax-Advantaged

Self-employment means you can bask in the glory of tax deductions with a retirement plan tailored to you. By contributing pre-tax dollars to retirement savings, you  reduce your taxable income —thus, slashing your tax bill. Here are a few options for self-employed individuals:

• Solo 401(k)

Each plan offers unique benefits, so it’s wise to consult seasoned experts to determine the most advantageous option for your situation.

Final Thoughts: Consult and Conquer

“Taxes are the price we pay for civilization.” – Oliver Wendell Holmes Jr.

Navigating the tax landscape as a home-based business entrepreneur may seem daunting, but the potential savings make it worthwhile. To cap off your journey into tax deductions, consider seeking counsel from tax professionals—enabling you to focus on your craft while ensuring adherence to both IRS rules and best practices.

5 Expert-Backed Tips for Growing Your Craft Business

Craft businesses have a unique advantage – they can be easily started from home and require minimal capital. Moreover, for those who are passionate about their craft, a business venture  presents a golden opportunity  to share this passion with others while making money in the process. To help you capitalize on this advantage, here are five essential tips endorsed by industry leaders for growing your craft business at home.

1. Develop a Solid Marketing Plan 📈

“The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.” – Peter Drucker

Your first crucial step is to  create a marketing plan  that outlines how you will reach potential customers. This includes deciding on the most effective advertising channels for your product, creating a website or social media page to showcase your products and services, and leveraging your online presence to attract and engage customers.

Additionally,  network with other crafters  and attend local events such as farmers’ markets and trade shows, where you can display your work while making valuable connections with new customers.

2. Embrace Organization 🗂

“Organization isn’t about perfection; it’s about efficiency, reducing stress and clutter, saving time and money and improving your overall quality of life.” – Christina Scalise

Running a small business from home demands exceptional organization skills. Invest in organizational tools such as filing systems, digital software programs, or online databases to  keep track of inventory and orders  in one place. This streamlined approach will alleviate some of the stress associated with managing multiple aspects of your operation.

3. Stay Ahead of Industry Trends 📚

Subtle changes in the industry can have significant consequences if overlooked. Stay up-to-date on industry trends by subscribing to magazines, joining trade organizations, and actively participating in online forums or groups.

Understanding  what’s happening in the market  will help ensure that your products are competitively priced compared to similar offerings, ultimately keeping your current customers engaged while attracting new ones over time.

4. Learn from the Pros: Collaborate with Influencers 🤝

Collaborate with well-known influencers in the crafting world, who can provide valuable insights and expertise on running a successful craft business. This partnership can lead to increased visibility, credibility, and appeal for your brand.

5. Deliver Unparalleled Customer Service 🌟

“Your most unhappy customers are your greatest source of learning.” – Bill Gates

Treat your customers with utmost importance, and they will reward you with loyalty and repeat business. Provide quick, personalized responses to queries or complaints, and ensure your products are of the highest quality. An  outstanding customer service  will set you apart from competitors, fostering a strong connection with your customer base.

By consistently implementing these expert-backed strategies, you can ensure that your craft business thrives beyond your wildest dreams. A growing, profitable business means living life on your own terms, sharing your passion with others, and enjoying the fruits of your labor. Isn’t that the ultimate goal? ✨

Turning Passion into Profit: Unraveling the Secrets of a Successful Craft Business

The  craft business  landscape offers a world of possibilities for talented and passionate creators. 🎨 More than ever, people crave unique and personalized products, which is excellent news for home-based craft businesses. But how can you transform your creative flair into a thriving business? Let’s break it down into  strategy ,  planning , and  engagement . Learn the art of successful businessmatic!

“Your success in the craft business can only be limited by your imagination and your passion.” – Handmadeology Founder, Tim Adam.

1. Conquering the Craft Market: Research, Standout Products & Pricing

Before leaping into the business world, you need a  solid foundation . Research the market and determine where you fit in. Analyze popular trends and ensure your products stand out among the competition to attract customers.

Pricing is a balancing act – you want your products to be  affordable , without compromising quality. Your pricing should also account for your time, materials, and costs involved in running your business.

“Price your products to represent how much love, time, and creativity you’ve put into them.” – Joanne Dewberry, Small Business Expert.

2. Legal & Tax Considerations: Playing by the Rules

Starting a home-based craft business comes with rules and regulations. Familiarize yourself with  legal requirements  to ensure a smooth sailing. Explore the benefits of tax deductions and stay compliant with laws governing your business.

“The success of your craft business may hinge on some of those weighty financial details.” – Barbara Brabec, author of  “Handmade for Profit!” .

3. Mastering Inventory Management: The Key to Growth

Keeping track of inventory can make or break your business. Effective inventory management streamlines your business operation and helps you make informed decisions about supply and demand.

4. Expanding Your Craft Empire: Building Relationships & Engaging Clients

The power of networking cannot be overstated. Connect with industry influencers and other craft business owners to open doors to new opportunities. Capitalize on social media and email marketing to establish long-lasting connections with your customers.

“You don’t need to do it all – just pick a few platforms where your ideal customers hang out and make the most of them.” – Fiona Pullen, author of “Craft a Creative Business”.

In Conclusion: Embrace the Craft Business Adventure 🚀

Embarking on the journey to create a successful craft business requires  passion ,  determination , and  hard work . By mastering strategy, planning, and engagement, you can turn your dreams into a reality – a thriving home-based craft business. So, are you ready to take the leap and transform your craft into a profitable venture? 💼💡

Share This Post:

How to launch a successful dropshipping business, the ultimate dropshipping business model guide: from a to z, leave a reply cancel reply.

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

• Start A Blog
• Start Business
• Grow Business
• Earn Online

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.

Crafts making is a creative business . It is a hobby for many individuals, especially housewives and moms. If you are one with similar creativity in making craft items, you can easily turn that hobby into a successful business venture. You just need some proper planning and dedication to succeed in this business. Find below a stepwise guide on starting a craft-making business from scratch.

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

There are several features of a craft business from home. Some of them are listed below:

Handmade Products: The core of a craft business is the creation of handmade, artisanal products. This often involves unique designs, attention to detail, and a personal touch that sets the crafted items apart from mass-produced alternatives.

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.

Online Presence: With the prevalence of e-commerce, home-based craft businesses typically establish an online presence through platforms like Etsy, Shopify, or personal websites. This allows them to showcase and sell their products to a global audience.

Creative Branding: Craft businesses often focus on creating a distinct brand identity. This includes choosing a memorable business name, designing a unique logo, and crafting a brand story that resonates with customers.

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.

Direct Customer Interaction: Crafters often engage directly with customers, whether through online communication, social media, or craft fairs. This personal connection helps build relationships and loyalty among customers.

Passion-Driven: Many individuals who start home-based craft businesses are driven by a passion for crafting. This passion not only fuels the creative process but also contributes to the authenticity and uniqueness of handmade products.

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.

Beginners generally make the mistake of starting with many products. It is always better to choose a single product at first. You can add on more products after you have successfully established the first product.

In choosing your first product, the decision must be based on your expertise. Your confidence in creating a specific product will be the key to the decision-making process. You can read our article on profitable craft business ideas if you are looking for ideas to get inspired.

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.

Some of the topics your craft business plan must address are the following:

• What are the products you will be selling?
• What is the market potential for those products?
• How much will the cost of production be?
• Where will you sell those crafts?
• What will be the pricing of the craft items?
• Where will you purchase supplies and the cost?

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

Though not taken seriously by most beginners, the name of the business carries huge importance. It is advisable to develop a distinctive brand that reflects your style and values. Choose a memorable business name , design a captivating logo, and establish an appealing visual identity. Consistent branding builds trust and recognition among your potential customers.

Read : Catchy Craft Business Names

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

To run a legal craft-making business, you need to have the required licenses and permits. Every state and country has different license regulations. Visit the nearest licensing authorities or check their online website to learn what licenses you need to run this business.

If you are from the United States, the SBA is a great resource to learn more about legal requirements. In addition, the local chamber of commerce is always there to help.

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

In making craft items, you will be in need to purchase several items. Contact your nearest manufacturer and wholesalers of those items and set up purchasing terms. You can also search online to find the most appropriate suppliers for the products you are looking for. Nowadays it is extremely easy to find out. Just search Google for the items you are looking for. You will find the addresses of tons of such suppliers.

9. Create Workspace

If you are a starter and starting from home or garage space, you must ensure a properly designed dedicated workspace to make crafts items. You must differentiate your personal life and your work life. You must have an undisturbed working space to work peacefully. Additionally, arrange some space for stocking inventories. A well-organized and inspiring workspace enhances your creativity and productivity.

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

You must ensure a smooth buying experience for your customers by offering secure and convenient payment options. There are some trusted payment gateways like PayPal and Stripe that you can consider tying up with.

12. Price Your Products

You are advised to determine the pricing strategy that aligns with the market and reflects the value of your craftsmanship. While pricing, consider material costs, time invested, and market demand when setting prices.

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.

• You can start the promotion of your crafts-making business by displaying your products in gift stores and crafts fairs.
• You can also propose potential corporate clients for their company’s customized gifts requirement.
• Also, have contact with local interior designer professionals.
• Emphasizing excellent services to the customers such as standardized products and timely order fulfillment is important.
• You can establish your own crafts retail store.
• You can sell your product from an online marketplace like eBay, Amazon, etc.
• Another effective way of advertising your business is via chat rooms, social networking sites, blogs, etc. Also, you can go for a business membership with a craft association to get the current news, trends, and happenings. 

There are many other low-cost ways of promoting your crafts-making business. Check this article to learn more.

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.

As per this report, the global arts and crafts market size was USD 44120 Million in 2021 and is projected to touch USD 74457.88 Million by 2031, exhibiting a CAGR of 5.4% during the forecast period. This substantial market size indicates a growing demand for handmade and crafted products globally.

What types of products can be sold in a home-based craft business?

The range of products in a home-based craft business is diverse and depends on the crafter’s skills and interests. Common items include handmade jewelry, artwork, textiles, candles, and customized home décor.

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?

Yes, many crafters sell their products on various online platforms simultaneously. Platforms like Etsy, Shopify, and Amazon Handmade offer opportunities to reach different audiences. It’s important to manage inventory and orders efficiently across platforms.

How do I price my handmade products?

Pricing handmade products involves considering the cost of materials, labor, and overhead, along with market demand. Research similar products in your niche, factor in your unique craftsmanship, and set a price that reflects both the value of your work and market expectations.

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?

Promote your business through social media, such as Instagram and Facebook, by showcasing your creations, engaging with your audience, and utilizing relevant hashtags. Participate in craft fairs, collaborate with influencers, and consider paid advertising to increase visibility.

Are there legal considerations for a home-based craft business?

Yes, there are legal aspects to consider, such as registering your business, understanding tax obligations, and ensuring compliance with local regulations. Consult with legal professionals or local business authorities to address specific legal requirements.

About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their businesses.

Share This Article:

• Social Media
• United States
• United Kingdom
• Telegram Community
• Blogging Course

How to Start a Home-based Craft Business Online

Remember that success in this field is a journey, so be open to refining your strategies, learning from your experiences, and adapting to meet the demands of your target market.

Do you love making crafts? Have you ever thought about making money from your skills? This article will show you how to start your own craft business online, right from your home.

We’ll guide you through everything you need to know. Starting an online craft business is a great way to turn a hobby you love into a way of making money while working from home. Whether you’ve got lots of experience or you’re just starting out, this guide has lots of helpful tips to get your online craft business up and running. But before we discuss how to start your home-based craft business, let’s clarify what this business is.

What is a Craft Business?

Table of Contents

A craft business is a type of enterprise that focuses on creating and selling handmade or handcrafted items. Some great examples are items like handmade jewelry, pottery, woodworking, knitting, painting and other unique and creative products. These businesses often prioritize quality, originality, and craftsmanship over mass production and low prices. They often appeal to only customers who value uniqueness and quality.

• How to Start a Money Lending Business (Step-by-Step Guide)
• Top 10 Small Business Opportunities to Start in Australia as a Foreigner
• How to Start a Senior Home Care Business in the U.S.

Step-by-step guide on how to start your home-based craft business

Step 1: Define Your Craft Niche

The first step in starting a home-based craft business is to define your niche. To choose a niche, you will consider your interests, skills, and passion. It’s essential to have a clear understanding of what sets your craft apart and identify your target audience for your products.

Step 2: Market Research

You should conduct thorough market research to assess the demand for your craft products. Identify your target market and understand their preferences, and also determine the competitive landscape. This information will help you refine your offers and develop a unique selling proposition.

Step 3: Create a Business Plan for Your Home-based Craft

Developing a business plan is very important for laying out your goals, strategies, financial projections, and marketing approaches. A comprehensive home-based craft business plan will guide you through the different aspects of your venture. That will include pricing, production, marketing, and sales strategies.

Step 4: Set Up Your Home Workspace

Designate a dedicated space in your home to serve as your workspace. Organize your tools, materials, and equipment in an efficient and accessible manner. Ensure that you have proper storage and a comfortable working environment to maximize productivity.

Step 5: Source Quality Materials and Tools

Identify reliable suppliers for your craft materials and tools. Look for high-quality materials that align with your craft’s requirements and budget. Building relationships with suppliers can also provide you with discounts or special offers This is a great way to maximize your profit margins.

Step 6: Develop a Brand Identity

Create a distinctive brand identity that reflects the essence of your craft and appeals to your target market. This includes designing a memorable logo, choosing a color scheme, and creating a cohesive visual presence across your packaging, website, and social media platforms.

Step 7: Build an Online Presence

In today’s digital age, having an online presence is essential for any business. Set up a professional website or online store to showcase your products. Use social media platforms to engage with your target audience, share your work, and promote your brand . Take high-quality photographs and videos of your products to entice potential customers.

Step 8: Pricing and Profitability

Determine your pricing strategy by taking into account the cost of materials, the time and effort invested in creating each item, and your desired profit margin. Conduct regular cost analysis to ensure your pricing remains competitive and profitable.

Step 9: Marketing and Promotion

Implement effective marketing strategies to create awareness and generate sales. Utilize online platforms, such as social media and online marketplaces, to reach a wider audience. Participate in craft fairs, local events, or collaborate with influencers in your niche to expand your visibility.

Step 10: Customer Service and Feedback

Deliver exceptional customer service to cultivate loyalty and positive word-of-mouth recommendations. Respond promptly to customer inquiries and feedback. Implement a feedback system to gather insights from customers and improve your craft products and services continuously.

• How to Start a Subscription Box Business
• Guide on How to Start a Textile Printing Business
• How to Start a Greeting Card Business with Ease

Some FAQs about How to Start a Home-based Craft Business

Here are some FAQs about how to start a home-based business.

What are the key steps to legally starting a home-based craft business? 

Setting up a home-based craft business requires ensuring compliance with various legal and regulatory norms. Firstly, be sure to verify that your local zoning laws allow for a home-based business. Each region might have different rules relating to noise and traffic. 

Next is to decide on your business structure – you could opt for a s ole proprietorship , partnership, LLC, or corporation, depending on your needs. If required, register your business with the state or local government. 

Opening a separate bank account specifically for your business could simplify handling finances and taxes. Be aware of your tax obligations, which may include collecting sales tax and filing business income taxes. Consider consulting with an accountant or a tax professional to ensure you comply with all tax regulations.

 What are some effective marketing strategies for a home-based craft business?

An effective marketing strategy for a home-based craft business often involves combining both online and offline methods. Build an online presence through a professional website or online retail platform to showcase your products and connect with your audience. 

Use social media platforms for promotion and customer engagement. Offline, you could participate in local craft fairs and events to market your products and engage with your community. Having the right offline marketing strategies is a huge advantage. 

Word-of-mouth marketing also remains a powerful tool, incentivizing satisfied customers to recommend your products. Collaborations with influencers and bloggers, or partnerships with local businesses, can amplify your brand visibility and attract a wider customer base. Instagram influencers are making a decent income through this method.

How can I correctly price my crafts for my home-based business?

Pricing products requires careful consideration and a balance between covering costs and maintaining competitiveness. Begin by calculating your total costs of production including materials, labour and overheads. Then add your desired profit margin. This gives you a base cost for each unit. 

Research the pricing of similar products in your market to give an idea of what customers might expect to pay. Consider your target audience’s purchasing power, the uniqueness of your product and the price ranges of your competition when setting your prices. Remember, pricing is not static and can be adjusted based on customer feedback, market response and changes in cost structures.

Starting a home-based craft business requires a combination of creativity, dedication, and entrepreneurial skills. By following this comprehensive guide, you can lay a solid foundation for your craft business and increase your chances of success. 

Let friends know you read this:

• Click to share on Twitter (Opens in new window)
• Click to share on Facebook (Opens in new window)
• Click to share on LinkedIn (Opens in new window)
• Click to share on Pinterest (Opens in new window)
• Click to share on Reddit (Opens in new window)
• Click to share on Telegram (Opens in new window)
• Click to share on WhatsApp (Opens in new window)

RELATED ARTICLES MORE FROM AUTHOR

9 Ways to Get Customers to the Door of Your Small Business

5 Reasons to Invest in Vacation Rentals

Top 20 Lucrative Business Ideas That You Can Start with Little or No Capital

Leave a reply cancel reply.

Save my name, email, and website in this browser for the next time I comment.

Notify me of follow-up comments by email.

Notify me of new posts by email.

Connect with Us

Editor picks, 7 dangerous habits all commercial drivers must stop, how to start your own t-shirt printing business from home, top 7 dreamhost alternatives & competitors for business website hosting in 2023, how to set up your own clothing brand in the united states.

EVEN MORE NEWS

Top 6 Places to Visit in Dubai for Free: Visiting Dubai...

How to Find the Best Voiceover Artists for Your Project

9 Ways to Get Customers to the Door of Your Small...

Popular category.

• Business 595
• Finance 188
• Marketing 171
• Business Tips 137
• e-Commerce 133
• Privacy policy
• Write for Us

Join Our Email List For Weekly Business Tips & Strategies

Thank you for subscribing to our newsletter. Click here to join our Telegram community.

👋 Welcome! Are You New Here?

We’re so happy to have you! Here at How to Entrepreneur, our focus is on helping you start or grow a business from idea to full-time income, and from full-time income to enterprise. We know how the business journey can be, and we want to help you grow your business confidently, and with clarity. After you’ve finished checking out the article below, we invite you to  learn more about how we can help here.

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

Home » How To Entrepreneur Full Library – Articles to help Start or Grow a Business » How to Start a Craft Business – A Step-by-Step Guide

Disclosure: This page may contain affiliate links, meaning we receive a commission if you decide to make a purchase through our links, but this is at no additional cost to you. Please read our  disclosure  for more info.

If you’re looking for step-by-step guidance on how to start a craft business, you’re in the right place.

The COVID-19 pandemic has impacted so much more than health. With the recent pandemic, many people have lost their jobs, many people are working from home, and lots of people have time on their hands.

As a result, there’s been a resurgence of crafting. Sites like Pinterest, Etsy, and Google are seeing more searches than ever for DIY and crafting topics.

More people are looking to do things themselves to cut back on expenses, and others are looking for opportunities to make money in new and creative ways.

You might be able to relate.

If you’re here, it’s likely, you’re passionate about crafting, and you’re trying to decide if you could “craft and make a living” at the same time, and I’m here to tell you, “yes, you can!”. In this article, I’ll be answering common questions about craft business like:

• Can you make money crafting?
• How do you make money crafting?

Can a craft business be profitable?

• and, How to get started with a Craft Business?

When you’re done reading this article, it’s my hope that you’re empowered, and ready to pursue a new area of life that you’re passionate about.

What is a Craft Business?

The craft industry includes anything that’s handmade, so it includes a wide range of products. A craft business is any person or organization that takes handmade products and makes money from them.

Crafting Hobbies

There are so many different crafts, but as you can see below, a resurgence of interest in crafting has taken place in 2020.

Crafting hobbies include:

• Scrap-booking
• Cross-stitch
• Calligraphy
• Wordworking
• and so many more

Hobbies vs. Business

A hobby is something that’s done for personal satisfaction, and it’s done at the frequency you want to do it. For example, if you like to sew, you may sew things you like, and do it whenever you like.

When you decide to convert a hobby into a business, it comes with:

• Additional discipline – You have to create at the pace of the market demand versus as often as you want
• A customer-centric product development focus – As a business owner, you have to be more interested in what the customer wants to buy versus what you want create
• And, you have to be more disciplined about things like how much it costs to create the product, legal liability surrounding the products, how much it costs to ship the product, how much are you selling for, how are you selling the product, how will you get people to know about you, and more.

The Traditional Way to Start a Craft Business vs. The Modern Way

Just a decade ago, the process for starting a craft business was much different than the opportunities available today. The traditional way of starting a craft business meant that you’d:

• Build an inventory – You’d have to create your crafts in enough volume that you have something to sell
• Find venues – You might be looking for trade shows, retail stores, flea markets, and other places to sell your handmade products
• Manage the fulfillment of clients – After you’ve built your inventory and found a venue, then in a traditional handmade business, you’d need to manage client satisfaction, billing, shipping, returns, questions, and other client support tasks.
• Do administrative tasks – And, you’d have admin tasks like patents, copyright, trademark, incorporation, finding venues, coordinating new events, and more.

The Modern Way of Starting a Craft Business

Now, with the growth of the internet, startup entrepreneurs are entering into craft businesses with less overhead costs and larger potential markets. Now, rather than solely selling your crafts at a local flea market, it’s possible to build an audience, sell them online, and reach people all over the world. The opportunities are much different.

The amount of inventory required by a traditional craft business is no longer required today because you can create products based on the demand you’re receiving, and actual purchases. Online shoppers simply need an image that represents the handmade product you’ll be making and a good description, and they can decide whether or not to purchase–this saves a lot of time and money because craft business owners don’t have to create lots of inventory to see what will sell versus what will not. For this reason alone, the startup costs of a modern day craft business startup can be reduced drastically.

Now, rather than paying fees for venues and inventory, you can focus more of your startup budget on advertising, setting up a website, and getting the word out online.

Like businesses of other types, a craft business can be profitable if:

• and Sales volume

Work well enough mathematically that you still have money after all is done. For example, let’s say your craft business earns $5000 per month in sales when you sell 50 of your woodworking craft kits. You spend $2500 on website hosting, advertising, materials, equipment, processing fees, and shipping, which leaves you with $2500. After you pay yourself $2000 and pay your taxes $250, then the profit of $250 is what you’d have left.

It’s possible, but you have to be willing to budget regularly , be disciplined, put in the work, and make good finance decisions.

Successful Craft Business Stories

With the growth of the internet, more and more craft businesses are finding ways to connect with people who love what they do. There are countless examples of people who have set up a blog, built an audience, and sold products and services. Here are a few:

• Laura Burton from Mom Envy has 4000-6000 people coming to her website every day. From that, she has 100-400 people signing up for her email list daily, and makes $2000+ in monthly income. Despite the fact that her blog earns significantly less per visitor than norms, she still makes $2000/mo and considering the amount of visitors to her website daily, she’s working to improve how her website is monetized, so she can get better results.
• Sarah Titus makes and sells printables to help with home organization, productivity, and entertainment. She started building an audience online, and later began selling the printables. Her business earns more than $200,000/mo with her crafts.

How to Start a Craft Business – Step-by-Step

If you’re interested in starting a craft business, these are the modern-day steps you should take…

1. Choose a Niche

It’s important to decide who you’ll be helping with your craft. Are you going to be selling woodworking crafts? Who would need the woodworking crafts you create? Who might be attracted to them?

It’s important to choose an audience you’ll serve, and focus on solving their problems with your handmade products, then expand from there.

• 100+ Website Niche Ideas

2. Build a Website

Once you’ve chosen a niche, it’s important to build a website that can help you grow an audience. A craft business can’t make money if people don’t know about your handmade products, right? By starting a blog, you can introduce your business and the products you create to people all over the world.

You can test out how easy it can be to create a WordPress website with the website builder below. Choose a name, it will tell you whether it’s available, and you click the “build it now” button, then…Voila…you’ll have a WordPress website that can be transferred to any custom domain name you want.

3. Monetize the Website

As a craft business owner, you have to think like a small business owner. Small businesses have products and services they sell: whether their own or someone else’s. Once you’re website is built, you have to make it clear what you sell, so your website visitors can make purchases.

How do Craft Businesses Make Money?

Successful craft businesses make money in a variety of ways including selling physical products, selling affiliate products, finding sponsors, selling digital products, selling services, and offering advertising on their website or elsewhere.

The Importance of Diversification

Regardless of what business you’re in, it’s important to diversify your income. There may be times where one of your products is selling very well, and it’s times like that where entrepreneurs become complacent, but what happens when it’s no longer selling as well?

When you diversify and have other things that are bringing in income , then it helps to stabilize your cashflow, and prevents you and your team from having income roller coasters.

Physical Products

As a craft business owner, it’s likely, you have physical products that you sell because this is a common way for craft businesses to make money.

Affiliate Products (#1 Recommendation for Getting Started)

In addition to your own physical products, you can also sell affiliate products–these are products and services that could help your audience, but you don’t create them. You can sell products from other craft businesses. You can sell affiliate products you use to make your crafts. There are so many options of what affiliate products you can sell, and the top benefits with affiliate products are:

• You don’t have to do customer support
• You don’t have to manage the fulfillment of the products and services
• You can use affiliate products to validate business ideas
• You can join affiliate programs for free
• and, You get a percentage or dollar amount from each sale (and sometimes, you make money simply by sending a lead without selling anything)

Sponsorships

There are companies who are looking for the same customers you are. They likely have products and services they want to reach an audience like yours, so they’d be willing to sponsor a post, event, or other content you make, in exchange for a mention of their brand or a promotion they’re doing. Sponsorships can be an alternative way of generating income in a craft business.

Digital Products

Maybe, you want to teach others how to do crafting like you do? Maybe, the crafts you do connect to habits that need to be changed, and you can make a course to show people how to make the full transformation? For example, maybe you sell home management printables that show people how to keep their homes clean, but you know it takes more than a checklist to keep a home clean, so you create a course.

Digital products include:

• Online courses
• Audio downloads
• Video content

Digital products are nice because you can create them once, and they don’t require new materials and equipment to distribute them. Instead, the same download can be sold time and time again, which can make it very profitable.

As a craft business, you could also offer services like:

• Custom crafts
• Custom blueprints or patterns
• Or even custom projects
• Advertising

Once you have an audience, the opportunities for making money with advertising increase. Similar to sponsorships, advertisers who want to reach the same audience as you will likely pay to display banners and ads that your audience could see.

4. Create Content

Once you’ve built your website and decided on your monetization strategy, then it’s important to create content on your website: beginning with your About me page, your privacy policy, and your first few blog posts. Once your initial content is out, then it’s important to create blog posts that would be helpful to your potential customers. These posts can help explain solutions to problems that might bring them to you, help overcome objections before making a purchase, and more.

5. Build an Audience

As you’re creating content and sharing it with people who need it, you’ll be able to build more and more trust and interest. When you have things on your website for sale, the attention, trust, and interest that develops can be translated into sales and income.

6. Incorporate

As your business grows, there’s also more potential for lawsuits and higher taxes. For this reason, it’s important to incorporate to help mitigate some of the legal and tax liability that comes along with running a growing business. You can get help with incorporating from a legal service like Incfile .

7. Add E-Commerce

When you have an audience and you have products you want to sell from your website, then you have to add e-commerce functionality–this means people will be able to shop and checkout from your website. E-commerce solutions typically add onto your overhead costs, which is why I haven’t recommended it until after you’ve built an audience, and ideally, after you’re getting affiliate sales that prove you’ve attracted people who are ready to buy from you.

Recommended Resources:

• SamCart- eCommerce Software
• Podia – Digital product, webinar, and email marketing software
• Shopify – eCommerce Software

8. Make Money

When you have a website, you have people visiting your website, and you have products and services to sell–that’s when your craft business should be making money. You can build a very profitable craft business with this formula.

You came here looking for advice on how to start a craft business, and now, you’ve seen how it’s done broken down into 8 simple steps. If you really want to start a craft business, and make money doing something you’re passionate about, don’t hesitate. Join me here for coaching, networking, and to learn the skills you need to build a thriving craft business online.

Are You Ready to Start Your Craft Business?

Get started by joining the enterprise builder community.

Join our community of Entrepreneurs. Follow the 10 Steps to Grow your Business. Get training that shows you the modern way of starting a craft business. Don't go at it alone. Get the support and encouragement you need to grow a massively successful craft business.

Ready to Take the Next Step to Grow Your Business? If so, Start Here

• Phase Two: Come up with Your Idea

Hey! I'm Tiffany.

• By Hey! I'm Tiffany.
• June 3, 2020
• No Comments

If you thought this content was helpful, share it with friends and family that can benefit from it. Help others start or grow their businesses.

• Pyramid Scheme vs. Network Marketing: What’s the Difference?

Have you wondered what’s the difference between a pyramid scheme vs. network marketing? Maybe you saw an interesting offer, but wondered if it’s too good

• Primerica Review (2022): Pros, Cons, and Alternatives

Looking for a thorough and in-depth Primerica Review? If so, you’re in the right place. If you’re here, it’s likely you’re trying to decide if

• Is Instagram Marketing Right for Me? Pros and Cons.

Today we’ll be answering the question, ‘Is Instagram Marketing right for me?’ Now we all know the struggle. You can get so much information online—different

Snag the Startup Entrepreneur's Toolkit - Learn how to Get Consistent Sales Online

Recent Posts

• Care.com Review (2021): Pros, Cons, and Alternatives
• Is Dropshipping Right for Me? Pros, Cons, and Alternatives

Reader Interactions

Leave a reply cancel reply.

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

• [FREE] Marketing Consultation

Get Started

• [Free] Affiliate Marketing eBook
• [Free] Business Plan Template
• Join the Community
• Subscribe on Youtube
• Follow us on Pinterest
• Share us with Friends
• Our Founder
• Become a Partner

Product reviews

• Learning Management
• Marketing Automation and Sales Funnels
• Website Hosting
• Email Marketing
• Business Training

Ready to Start or Grow Your Business Online?

Join 1000+ entrepreneurs in the enterprise builder community..

• Credit cards
• View all credit cards
• Banking guide
• Loans guide
• Insurance guide
• Personal finance
• View all personal finance
• Small business
• Small business guide
• View all taxes

You’re our first priority. Every time.

We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.

So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners .

How to Start a Home Business: The Ultimate Guide

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

If you've ever been interested in learning how to start a small business from home, now might be the perfect time. Due to the global COVID-19 pandemic, more people than ever before are working from home and launching their own startups.

Although starting a business from home has its perks, like starting any business, there is a lot to go through in order to set yourself up for success. In this guide, we'll break down everything you need to do, step-by-step, to learn how to start a home business.

ZenBusiness

How to start a home business in 9 steps

So, if you're wondering how to start a small business at home, you'll find that the process requires planning, preparation and the documentation to make it official (and legal).

Although it may seem overwhelming — as starting a business often is — if you take things one step at a time, you'll find that the process becomes much more manageable. Plus, when you're starting and running a business from home, there are a number of details you don't have to worry about, like finding an office or retail space.

1. Decide on a successful idea

The first step in starting a business from home is determining exactly what kind of business you want to start.

Of course, there are a number of different home business ideas out there — and within certain industries, home businesses are far more popular (and feasible) than others. As an example, according to the SBA, a business in the information industry has a 70% chance of being home-based, closely followed by businesses in the construction industry, at 68.2%.

So, how do you decide on the perfect (and profitable) idea for your home-based business?

In essence, this part of the process is a process in itself. After all, deciding what type of business you're going to run will influence all of the other steps from here on out.

With this in mind, to make this important decision, you can consider the following:

What skills or talents do you have? Thinking about the skills, talents and passions you already have is a great way to start brainstorming the best business ideas . For example, if you're good at sewing, you might consider starting a seamstress business, or you might consider making and selling your own apparel.

How can these skills or talents translate into a business idea? Unfortunately, not every talent or skill will translate into an actual business idea. For instance, you might be a great soccer player, but it may not be feasible to start a soccer coaching business.

Can this business idea actually be run from home? It's not only important to find an idea that plays to your talents, but also one that can be run from home. If you're a skilled cook, you may be able to start a private chef business where your home serves as your office, but you may find it difficult (with laws and regulations) to start a catering business from home.

Once you've gone through this exercise and have an initial idea for your home-based business, you'll want to ensure that it's worth investing in. To make this evaluation, you'll want to do a few things:

Conduct market research: First, you'll want to perform some research to ensure there's market demand for your product or service. Through this process, you'll also want to consider who your competitors are, what your value proposition is and what your target market looks like.

Consider startup costs: Before you decide to run with any given idea, you'll want to think about how much it will cost to start this type of business from home. If you're going to start a freelance writing business, your startup costs may be very low — especially if you already have a computer and internet access. On the other hand, if you're planning on starting an Amazon selling business, you might need to invest more in terms of inventory, packing and shipping, etc.

Test your idea: There are a variety of ways you can test your idea to decide whether it's a worthwhile investment. If you're starting a service-based business, you might offer your services for free to test the market. On the other hand, if you're planning on selling a product, you might test it out with a select group of people or advertise it on a crowdfunding platform to gather responses before moving forward.

Ultimately, people arrive at their successful home business idea in all sorts of ways. Scottie Yang, a Tempe, Arizona-based business owner, decided to go all-in on his home business after he lost his job. After a career in television and video production, he switched gears to start his own clothing company called Heights Apparel, which creates clothing specifically for men who are above-average height.

"Once I got a taste of getting to work from home, it made it really hard to want to go work in an office every day," Yang says. "I love the flexibility. I love not having to deal with office politics."

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

2. Write a business plan

Once you've decided on a profitable home business idea, your next step will be to write a business plan .

Writing a business plan can often be one of the most time-consuming parts of learning how to start a small business at home, however, it's essential to the potential growth and progression of your operations.

In this way, your business plan should contain all of the information you need to prepare you to run your business from home. Although there are different methods for writing a business plan, generally, you'll want your business plan to include:

An executive summary .

An overview of your business.

A market analysis .

A description of your product or service.

A marketing and sales plan.

A financial plan and projections.

By going through this process, you'll have an opportunity to expand upon the considerations you made in the first step — thinking about the way your business will operate in more detail. Along these lines, you can think of your business plan as a roadmap for how you'll grow into a profitable home business.

Moreover, your business plan will also help you later on when you need to apply for funding or seek investors to start or grow your business. Showing potential investors or lenders that you have a funding plan for your business and have considered all of the risks is essential.

This is also a great time to do more research if you aren’t experienced in the field you’re starting your home business in. Yang was doing research on his business three years before he even started it.

"Because of my lack of experience and knowledge, I began researching the concept in 2015. I did tons of research," he says. He officially formed his LLC in 2018 and started selling online in 2019.

For Yang, his research centered around understanding the challenges and pitfalls of the business.

"I'm 6'7'' myself, and I grew increasingly frustrated with the [clothes] options available to me, and the large amount of additional money I had to spend in order to get pieces of clothing to fit my frame the right way. It really has an impact on how you feel."

This lack of clothing options revealed a gap in the market that he decided to capitalize on.

3. Choose a name and business entity

After you've written your business plan, you'll want to officially decide on the name of your business .

You'll want to choose something that's memorable, but also something that makes it clear what your business is or does.

Once you have a name in mind, you’ll have to make sure it’s actually available to use. There are a few places you can check this — including your secretary of state's website or business bureau website, the U.S. Patent and Trademark Office and by doing a simple Google search.

This being said, extending your search beyond your state is especially important if you plan on launching an online component to your home business, as you'll want to make sure that a potential domain name is available for your business's website.

In addition to deciding on a name, you'll need to choose a business entity type to define your business structure. The business entity you choose for your home business will affect how your business is taxed and the legal risk you’re exposed to, as well as whether or not you need to officially register your business with the state.

At this point, you might decide to consult an attorney or online legal service to ensure you're choosing the right entity type for your unique business. The chart below can help you determine which of these options will work best for your business:

If you choose to structure your home business as a sole proprietorship or a general partnership, you won’t actually have to register your business with the state where you’ll be operating.

Therefore, because you won’t be registering with a specific business name, the name of your business will default to your legal name. In this case, if you'd prefer to start your home business with a different name, you can file a DBA, or “doing business as,” with your state in order to operate your business under that name.

» MORE: Best business credit cards for LLCs

4. Register your home business

If you decide to form your business as an LLC or C corporation, you'll need to register with your state to start and run your business from home legally.

The exact process that you'll need to follow to complete this registration will be unique to your state. Therefore, you'll want to consult your local Secretary of State or business bureau for guidelines on how to complete your business registration.

This being said, regardless of whether or not you have to register with the state, you'll want to register your business with the federal government by applying for an employer identification number. This number (also called an EIN) comes with a number of benefits, making it a worthwhile choice whether or not you’re technically required to obtain one.

In short, this number will be useful for hiring employees, opening a business bank account, filing business taxes and more. You can easily apply for an EIN online with the IRS.

5. Get a business license

Once you've completed your necessary registration with the state and federal governments, the next step in learning how to start a home business is getting a business license.

As a home-based business, your business license requirements may differ from other types of businesses. Nevertheless, the licenses and permits that you need will also vary based on the state where you're located.

Generally, when you're starting a small business from home, you'll want to look into the following types of business licenses:

Home occupation permit: Most home-based businesses will require a home occupation permit to operate legally. Essentially, this permit shows that by running your business out of your home, you're not adding significant traffic, noise, or harmful environmental conditions to your area.

Property use and zoning permits: When you're starting your business from home, you'll want to check into local zoning ordinances that apply to home-based businesses in your area. Some residential areas have strict zoning regulations that may limit or even prevent home-based businesses from operating. You'll want to check with your local or city government office to find out what regulations might apply to you.

General business licenses and permits: On top of the two previous permits that are more specific to home-based businesses, you'll also want to consider any general business licenses you need to operate legally. Along these lines, you might need a business operating license, professional or trade license, sales tax permit and more.

Overall, even if you're just starting an online consulting or freelance business from your home, you shouldn't assume that you don't need a business license. In addition to consulting local and state business resources, you might also work with a legal professional or service to ensure that you've taken all the necessary steps to run your business from home legally.

6. Separate your business and personal finances

At this point, you've taken the steps necessary to make your home-based business official and legal. Now, you're ready to take the steps to learn how to run a business from home legally — starting with managing your finances.

Although you may be a one-person operation, it's essential to separate your business and personal finances, especially when you're just starting out. As we mentioned briefly above, one of the downsides of some of the most common business entity types for home-based businesses is that you're personally responsible for your business's debts and liabilities.

For this reason, it's even more important to ensure that you protect your personal assets by separating your finances — plus, keeping your finances separate will be crucial for bookkeeping, tax filing and general organization.

Open a business bank account

In addition to applying for an EIN, one of the best ways to separate your finances is to open a business checking account .

You'll use your business bank account to manage any money coming into your business, as well as for paying suppliers, services, or employees.

There are a variety of business bank accounts to choose from — however, you might start with the bank where you have your personal account, or look for a free business checking account .

Since you're running your business from home, you may want to focus your search on a business bank account with online and mobile banking, mobile check deposit and free ACH payments.

Apply for a business credit card

After you've opened a business bank account, the next step you can take to separate and start managing your finances is to get a business credit card . A business credit card can help you establish business credit and can be used for any transactions related to your business — which will make filing your taxes much easier to navigate.

Once again, there are a variety of options for business credit cards — so you might start by looking at the bank where you opened your checking account — or narrow down your search by your rewards preferences — such as cash back or travel points.

Choose accounting software

Finally, the last important piece of learning to manage your finances as a new home-based business is to choose accounting software .

Although you may not think you need an accounting software platform, successful home businesses often use one of these automated systems to make bookkeeping and taxes much easier. Plus, if you're concerned about cost, there are options for free accounting software, as well as specifically designed home-based business accounting software options.

7. Secure funding

One of the benefits of starting a business from home is that you can eliminate some of the costs associated with renting an office space or opening a brick-and-mortar location.

In some cases, you might not have any business startup costs at all. This was the experience that Alexis Haselberger, a time-management and productivity coach, had when launching her business.

What surprised me most was how easy it was to get started; as a service-based business working from my home, I had virtually no startup costs. Even without investing money into her business to start, Haselberger was able to gain clients from big-name companies like Google, Lyft, San Francisco State University and more.

However, depending on the type of business you're launching, you may need to secure financing to help cover some of your startup costs. If you’re starting a business that requires a lot of inventory or equipment, you will definitely have some initial costs. Luckily, about 44% of home-based business owners are able to start their businesses with less than $5,000 — but if your home business requires more capital, you'll want to explore your options for financing.

Typically, it's difficult for newer businesses to access traditional financing methods, so you might start with a simple business credit card or line of credit , as well as consider more creative forms of financing — like working with friends or family or starting a crowdfunding campaign.

8. Set up your office

Next, you're ready to move from starting a home business to actually running a successful home business.

The first thing you'll want to do to set yourself up for success in this regard is to set up your home office. Although there are a number of benefits to starting a business from home, there are also some drawbacks — namely, that you'll be working in the same place that you live.

For this reason, it's important to designate a specific home office space in order to promote productivity and separate your work from your home life.

As Yang said, it's easy to get distracted with other things. You will need discipline to start a home business, since no one will be monitoring your work — it’s really up to you. But once you successfully make the shift, the pros can vastly outweigh the cons.

Therefore, to set up your home office, you'll want to do things like:

Choose a designated space.

Invest in the right furniture, tools and technology.

Decorate your office in a way that works for you.

Take steps to minimize distractions.

Once you have the space you need to start running your business from home, it will be much easier to get going from there.

9. Set up tax accounts and learn about deductions

Understanding business taxes can be one of the most difficult parts of running a business — and as a home-based business, you may have unique tax obligations. We've already talked about how to obtain an EIN (if needed) and the different ways you can be taxed, depending on your business entity. As a business owner, you'll need to get set up to pay self-employment taxes quarterly, to both the federal and state government. If you have employees, you'll need to establish payroll withholding accounts, and if you collect sales tax, you must set up sales tax accounts with your state.

You'll also want to consider some key home office tax deductions you can enjoy when running a profitable home business. If you use your office regularly and exclusively for your business, you'll qualify for the home office deduction (in most cases). You can claim this deduction by calculating your square footage (the simplified way) or calculating specific home office expenses on Form 8829 (the regular method).

Taking advantage of this deduction can help you save money come tax season.

Use our guide to learn more about home business tax deductions.

Start Your Dream Business

Tips for running a successful and profitable home business

Even if you've technically completed all the steps necessary to start a home business, the learning process will continue as you begin your day-to-day operations. Therefore, once you've gotten to this point, you might consult these tips to successfully running a small business from home.

Consider investing in business insurance: Although insurance might not be one of your initial priorities, investing in business insurance can be crucial to mitigating your risks and protecting your personal assets. At a minimum, you'll want to look into general liability insurance for your home-based business.

Create a business website and social media profiles to promote your business online: One of the best ways to establish and promote your business's presence is to create a website and social media profiles. These online resources make it easier to interact with customers — giving customers an opportunity to learn about who you are and what your business does, as well as reach out for more information.

Always be marketing your business: Marketing is always essential to a business, but even more so when you're first starting out. You can start your marketing strategy by referring back to the plan you developed as part of your overall business plan. As you learn more about your customers and what works and what doesn't, you can adjust your strategy accordingly.

Determine when it's the right time to hire your first employee: Finally, when your home-based business grows to more than you can manage on your own, you'll want to consider hiring your first employee. Being an employer, however, will mean that you need to meet additional requirements for insurance, taxes and more. Therefore, you'll not only want to ensure that you complete all of the steps necessary to hire an employee, but that you can afford and it's the right time to do so.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

On a similar note...

Everything that you need to know to start your own business. From business ideas to researching the competition.

Practical and real-world advice on how to run your business — from managing employees to keeping the books.

Our best expert advice on how to grow your business — from attracting new customers to keeping existing customers happy and having the capital to do it.

Entrepreneurs and industry leaders share their best advice on how to take your company to the next level.

• Business Ideas
• Human Resources
• Business Financing
• Growth Studio
• Ask the Board

Looking for your local chamber?

Interested in partnering with us?

Start » business ideas, how to start a business selling homemade crafts.

From identifying your product to creating a marketing plan, this guide will help you get started in the business of selling crafts.

Whether selling homemade crafts is your dream business or a fallback in tough times, financial success requires a solid plan. Here’s how to get started.

Do your research

Before you start any business, it’s essential to understand where you fit in the market and how your competition operates. Research should include:

• Your unique selling proposition: This differentiates you in a crowded market, so start by identifying it.
• Who else is creating the same product? Where are they selling it and how much are they selling it for?
• Know your costs: Raw materials, supplies, shipping, overhead (don’t forget listing fees) and labor (yes, you get paid for your time).
• Do you have exclusive or better than average access to materials? Do you already own equipment that gives you a leg up? Have you developed a new, better process?
• Identify challenges: Is your product extremely fragile? Does it have a shelf life? Does it require you to create a demand, rather than satisfy an existing one?

[Read more on how to research your competition .]

Identify your business

Once you’ve established what kind of craft you are going to make and who your competition is, it’s time to start your business. Here’s how to do that:

• Choose a name that communicates information about your product(s), then Google it. Is the name in use on Etsy, Instagram or Facebook? If it is, could confusion cost you business or damage your reputation?
• Choose a business type. To register your business name, you need to decide between a corporation type, such as a sole proprietorship, partnership or LLC. Take the time to investigate the differences. Be sure to plan for the future.
• Open a business bank account.
• Determine your sales channels. You may sell on your own website or, more likely, on an existing platform like Etsy or Artsy . Or you may choose to sell via social media like Instagram . Research each option and decide what makes the most sense for you, your product and your target customer.

[Read: Turning Your Hobby Into a Business: 3 Entrepreneurs Offer Advice ]

Before you start any business, it’s essential to understand where you fit in the market and how your competition operates.

Build your inventory

Once your business is up and running, it’s time to build your inventory. Inventory management — knowing what to make and how much of it — is a science in itself, and a skill you will develop over time. Be sure to consider where and how you’re selling when you determine your inventory mix and quantity. Two options to consider are:

• In-person sales: Whether you’re renting space in the mall, attending craft shows or lining up consignment arrangements, more inventory will lend your new business legitimacy. Create enough to avoid a panic situation when a buyer falls in love with your product, but not so many that you can’t respond to feedback or unexpected shifts in customer preference.
• Online: Given that you will have a few days to ship a product, you may feel comfortable keeping fewer in stock. Time and money might be better spent marketing. Make sure whatever customer expectations you are setting match your inventory replenishment capabilities.

Run your business

Running a business requires the donning of a lot of hats. Identify the ill-fitting ones and concentrate on those. If you need help, enlist it. Three areas to focus on when running your business are:

• Marketing. You know what makes your work stand apart from the crowd. Now tell the world. Perfect your product photography. Invest in the right equipment. Study not only your competitors posts, but those of successful marketers in other spaces and emulate their work.
• Bookkeeping. Set up a system to record your expenses. You should know exactly what each piece costs to produce. Tracking purchases of raw materials and supplies will help you price your work and identify bulk buy opportunities. Knowing what’s profitable will tell you what products to concentrate on.
• Packing and shipping. Your work doesn’t stop with product creation. Once sold, your handiwork deserves proper presentation and protection. If you’re selling online, the right packing materials can make or break your profits. Be sure your choices are brand consistent.

[Read: 5 Easy Ways to Use Social Media to Promote Your Business]

Selling something you made by hand can be emotionally rewarding. A business plan — well written and thoughtfully executed — can make it financially rewarding as well. Read more about how to write a business plan here .

CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.

Want to read more? Be sure to follow us on LinkedIn!

CO—is committed to helping you start, run and grow your small business. Learn more about the benefits of small business membership in the U.S. Chamber of Commerce, here .

Join us for our Small Business Day event!

Join us at our next event on Wednesday, May 1, at 12:00 p.m., where we’ll be kicking off Small Business Month alongside business experts and entrepreneurs. Register to attend in person at our Washington, D.C., headquarters, or join us virtually!

Subscribe to our newsletter, Midnight Oil

Expert business advice, news, and trends, delivered weekly

By signing up you agree to the CO— Privacy Policy. You can opt out anytime.

More Business Ideas

11 self-care business ideas for entrepreneurs, how to start a brewery, how to start your own real estate business.

By continuing on our website, you agree to our use of cookies for statistical and personalisation purposes. Know More

Welcome to CO—

Designed for business owners, CO— is a site that connects like minds and delivers actionable insights for next-level growth.

U.S. Chamber of Commerce 1615 H Street, NW Washington, DC 20062

Social links

Looking for local chamber, stay in touch.

We earn commissions if you shop through the links below.  Read more

How to Start a Craft Business

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 March 13, 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

Crafting is a popular pastime for many. The list of things you can do in crafting is endless – jewelry, pottery, woodwork, knitting, sewing, painting, and on and on. If you do crafts for fun and you’re good at it, why not turn your craft into a business?  The market for crafts is huge, which is evidenced by the success of Etsy’s marketplace, which doubled its revenue in 2020 to more than $1.7 billion. 

You will face some challenges, however, when starting a craft business. You’ll need to do some preparation and information gathering before you launch. Fortunately, you’ve come to the right place, as this step-by-step guide has everything you need to craft your way into entrepreneurship.

Looking to 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 .

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

Related Business Ideas

How to Start an Embroidery Business

How to Start a Crochet Business

How to Open an Art Gallery

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 your products or services

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

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

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”
• Avoid location-based names that 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

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• 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 2023

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. 

For your craft business, the marketing strategy should focus on showcasing the uniqueness, quality, and handmade nature of your products. Emphasize the creativity, skill, and passion that go into making each item, and highlight how your products can add a personal touch or artistic flair to customers’ lives. Here are some powerful marketing strategies for your future business:

Kickstart Marketing

• Professional Branding : Your branding should reflect the creativity and artistry of your craft. This includes your logo, packaging, and the aesthetic of your online presence.
• Direct Outreach : Connect with local art and craft communities , attend craft fairs, and engage with local businesses for potential collaborations or consignment opportunities.

Digital Presence and Online Marketing

• Professional Website and SEO : Develop an attractive, easy-to-navigate website that showcases your products, shares your story, and allows for online purchases. Use SEO best practices to optimize your site for search terms related to your craft and handmade goods.
• Social Media Engagement : Utilize platforms like Instagram, Pinterest, and Etsy to showcase your products, share behind-the-scenes glimpses of your crafting process, and engage with your audience.

Content Marketing and Engagement

• Crafting Blog : Share blog posts about your creative process, tips for fellow crafters, and the stories behind your creations.
• Customer Spotlights and Testimonials : Feature satisfied customers, especially those who have creatively used or displayed your products.
• DIY Guides and Tutorials : Create content that engages fellow craft enthusiasts, such as how-to guides or tutorials related to your craft.

Experiential and In-Person Engagements

• Pop-Up Shops and Craft Fairs : Participate in local craft fairs, markets, and pop-up events to sell your products and connect with customers in person.
• Workshops and Classes : Offer classes or workshops that allow participants to learn a craft or make something they can take home.

Collaborations and Community

• Collaborations with Local Artists and Businesses : Partner with other artists for collaborative projects or with local businesses to offer unique, locally made products.
• Community Involvement : Engage in community events, sponsor local activities, or collaborate with community groups on crafting projects.

Customer Relationship and Loyalty Programs

• Loyalty Rewards for Repeat Customers : Implement a loyalty program offering discounts or special access to new products for returning customers.
• Custom Order Incentives : Encourage custom orders by offering a personalized experience or special pricing for unique commissions.

Promotions and Advertising

• Targeted Online Advertising : Use platforms like Facebook and Instagram to reach potential customers who have shown an interest in handmade goods or crafts.
• Email Marketing : Keep your customers informed about new products, upcoming events, and special offers through regular newsletters.

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!

• Craft Business FAQs

Sure! You just need to be able to make a unique product and sell it for more than the cost to make it. You won’t have many ongoing costs other than for the supplies, so you should be able to keep most of your revenue in your pocket.

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.

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

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. 

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.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

• 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!

Subscribe to Our Newsletter

Featured resources.

15 Glowforge Business Ideas

Victoria Yu

Published on December 21, 2022

Thinking of turning your crafting talent into a business? A Glowforge 3D Laser Printer can produce valuable goods and big profits with its precisecu ...

15 Cricut Business Ideas and Projects

Natalie Fell

Published on June 6, 2022

One of the few industries that experienced a pandemic-driven boom is crafting. And within that market one of the segments that performed best isCric ...

No thanks, I don't want to stay up to date on industry trends and news.

• New Business? Start Here
• Latest Articles
• Weekly Craft Business Tips
• Craft Tent Guide
• 1000+ Craft Booth Photos
• Craft Show Tips
• Printable Craft Booth Signs
• Craft Business Ideas
• Where to Sell Your Crafts
• Craft Photography
• How to Name Your Business
• Marketing Strategies
• Business Management
• Accomplish Your Goals
• Craft Projects
• Printable Calendars
• Craft & Business Books
• Online Business
• Craft Business Plan

Create a Craft Business Plan

Develop a craft business plan for the upcoming year, and set your business up for success.

This 18-step action plan will guide you through strategic choices and help you become more focused and ready to maximize opportunities as they arise.

When you see the words "business plan" you might immediately think of the traditional kind of plan that requires things like market analyses, organizational charts, and detailed financial projections.

Don't panic!

We're not talking about writing a colossal formal business plan. As a craft business owner, you probably don't need a formal business plan.

You do require a roadmap designed for the needs of a handmade business to help you:

• create products shoppers will love
• meet important deadlines (like craft show application closing dates)
• set smart goals
• and use your time productively

Create Your Craft Business Plan

Here's what we're going cover to develop a craft business plan that will help set you up for success for the upcoming year:

• Research craft trends for 2022  - So you can create products that reflect what shoppers want to buy.
• Set realistic goals  - So you have a clear vision of what you want to accomplish in the upcoming year.
• Build effective work habits  - So you can get down to work and get things done.
• Research juried art shows & studio tours  - So you don't miss important application deadlines. Selling at craft shows requires a surprising amount of advance preparation.

Research craft trends for 2022

In December, companies like Etsy and Pinterest release trend reports for the upcoming year. January a great time to dig into some of these reports, see what customers might be searching for in the coming year, and decide if and how you want to reflect some of those trends in your own business.

Action Steps:

1. Learn about craft trends for the current year

Each year, I review the newest trend reports with an eye toward understanding trends that are most relevant to craft business owners. Check out my article  Crafts That Sell Well - updated for 2022  to see what design trends might impact your sales in the coming year.

2. Find design trends on Pinterest

I follow several companies that publish fashion and decor trends predictions and share their reports on Pinterest, so you can find them quickly.

I have three boards for 2022 - one for color trends, one for spring / summer, and one for autumn / winter.

Here's where you'll find my 2022 boards:

• 2022 Color Trends
• 2022 Spring / Summer Trends
• 2022-2023 Fall / Winter Trends

3. BONUS: Check out some trends reports yourself

If you want to take a more comprehensive look into trends predictions for 2022, go beyond my article and Pinterest boards, and check out the original reports yourself.

I couldn't possibly report on every trend for the year, so there are plenty I didn't cover. You might find something inspiring for your own business in one of these reports:

• Pinterest Predicts 2022  (Pinterest's report on searches trending for 2022)
• Etsy Marketpplace Handbook Early 2022 Trends Report  (Report on searches trending on Etsy going into 2022)
• More Home & Fashion Trend Forecasting  (List of several trend forecasting sources I follow)

4. Decide if you want to reflect any of the trend predictions for 2022 in your business

Do current trends fit with your brand? Would embracing certain trends advance your craft business plans and goals? You'll need to determine for yourself the right balance between trendy and classic for your company.

5. Decide how you will reflect 2022 trends in your business

If you do want to embrace a trend or two, you'll need to decide how that will look. Will you incorporate hot colors? design motifs? a specific type of product? a particular frame of mind or philosophy?

Of course, you can reflect trends in your product design, but there are also other ways to embrace trends. You could reflect trends in your craft booth merchandising, your product packaging, or your communication with customers as well.

Set realistic goals

Realistic, motivating goals that are in line with your values should be at the heart of your craft business plan.

A business plan is a road map to get to a specific destination. Your goals are the destination.

Time spent reflecting on your core goals and values will help ensure you make plans, decisions, and commitments throughout the year that will lead you to create the type of business you really want.

6. Define your priorities

You can't possibly do it all, so you need to decide what's really important. What do you want to do extraordinarily well, and what are you willing to let go of to achieve that goal?

If you  set compelling priorities , you can actually accomplish more by doing less but doing it better.

7. Consider where you want to be long term

When you know where you want your business to be next year, you'll be able to make better decisions about how to invest your time.

With your  ideal business goals  in mind, you can work out the steps you need to take to get from where you are to where you want to be. You'll be better equipped to make strategic decisions to work on projects that support your vision instead of bouncing from day to day on tasks that don't lead to your big picture goal.

8. Tie your goals to actions, not outcomes

For the most part, you can control whether you follow through on a commitment to action. You can not control the outcome. So if you want to stay motivated to accomplish something big, your goal needs to revolve around actions, not outcomes.

The  SMART goal setting  technique is all you need to set realistic, motivating goals that are tied to actions.

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

9. BONUS: Reassess your values, priorities, and goals

If you're up for investing some time to make sure you're really building a business that's in line with your values, you need to read Busy: How to Thrive in a World of too Much by Tony Crabbe.

I've read stacks of popular books about setting and achieving goals.

Honestly, I didn't like many of them.

Most other books on the subject assume you have total control over vast swaths of time. You just need to learn to use all of that time well.

I don't have vast swaths of wide open time. I'm willing to bet you don't either.

That's why Busy is the one book about priorities and goal setting that completely blew me away.

The book centers around the assumption that your time is finite and precious. It completely changed my perspective and transformed how I approach life and business goal planning.

Build effective work habits

What's at the heart of achieving your smart goals and following through on your craft business plan? 

Habits will get you further than willpower. Willpower is finite and requires emotional effort and energy. Habits, once established, happen automatically.

Research shows that habits account for a full 45% of our daily behaviors ! If you can consciously develop more constructive habits, you could potentially get 45% of your day right automatically.

10. Determine the habit you want to build

Remember, you can't do everything, and often you can accomplish more by doing less. So choose one or two habits that will have the biggest impact on the goals you set for your business.

Commit to building those one or two most impactful habits.

Stay focused.

Don't let yourself get distracted by other enchanting ideas. You can add more habits in the future once the first one is more firmly established.

11. Use proven habit building strategies

Habits work on a predictable cycle:

• cue (the trigger)
• routine (the established behavior)
• and reward (the benefit from the routine)

If you can recognize and redirect the  habit cycles  that drive your own routines, you have a much better chance at changing them successfully.

12. Manage your motivation

Even with the best habit cycle in place, you'll need a degree of motivation to persist through inevitable low points. Your reasons to continue have to outweigh your reasons to stop.

If you find your motivation is slipping, use some of these strategies to  boost self motivation .

13. BONUS: Learn habit building strategies that Suit You

There's another book in the achievement genre that has actually been extremely helpful to me — Better Than Before by Gretchen Rubin.

The book is written around the premise that were are all different, so different types of habit building strategies will work for different types of people.  It shows you how to use practical, actionable strategies that suit you and work with your natural inclinations, not against them.

If you want to take a more comprehensive look at habit building, I think you'll find a lot of value in the strategies that are taught in Better Than Before

Research juried art shows & studio tours

If you're new to selling at craft fairs, January might seem shockingly early to start planning for shows that won't happen for another 6-11 months.

Many shows open up the application process several months in advance. If you want to start selling at a few craft shows this year, you need to start planning sooner rather than later.

14. Find craft shows & studio tours that interest you

Your local arts association or crafts guild will be an excellent resource for finding shows in your area. They probably even publish an annual  craft show directory  for your area. 

15. Note important deadlines and application requirements

A craft show directory is a great starting point for finding shows in your area, but occasionally craft show directories contain mistakes. When you check deadlines, go directly to the show's website so you can be sure you're getting important information directly from the source.

Important craft show dates include:

• when applications will be available / the first day you can submit your application
• the application deadline
• when those who are accepted will be notified
• booth fees due date
• show date(s)

While you're checking deadlines, you can also look for other important information about the craft shows that interest you such as:

• organizer contact information
• how to apply
• where to get an application
• application requirements (be sure to check the requirements for product and booth photos)
• show location
• any unusual show rules
• information about past show attendance if available
• any information available about types of vendors (e.g. Is the show for handmade items only? Are there limits on the number of vendors allowed in each category?)

All of that information will help you to  assess each craft show  and decide which ones you'd like to attend. 

Art studio tour  organizers also typically start accepting applications for both spring and fall tours quite early in the year. If you think you might like to participate in your local studio tour, start your research now. Your arts association will have information about that event as well.

16. Get fabulous photos of your products

Your product photography can make or break your craft show application. Whether you hire a pro or take the photos yourself,  craft product photography  is no place to cut corners in your juried art show applications, particularly if you're applying to more competitive shows or if you're applying to a competitive category like jewelry or painting.

You might not need to start your applications in January. That will depend on the deadlines for shows you'd like to attend.

Just don't wait until the last minute to  apply to juried art shows  that interest you. Complete your applications thoroughly, carefully, and in a timely manner.

18. Plan to attend as a customer if you won't be a vendor

There may be shows that interest you but you can't attend this year because you're not ready for them, or you were not accepted. Put those show dates in your calendar, and plan to attend them as a customer if at all possible.

You'll be able to check out the vendors, see whose booths are full of paying customers, and learn what works so you'll be ready to apply to those shows in coming years.

More Craft Business aCtion Plans

Craft photography tips.

15-step craft photography action plan shows beginner product photographers everything you need to know to take great photos of the items you make to sell.

Where to Sell Crafts Beyond Art Fairs

Where to sell crafts beyond art fairs. 12 ways to build a handmade business for people who don't want to sell at craft shows.

Craft Show Set Up Ideas - Easy 8 Step Guide to Create a Great Display

Craft show set up ideas & photos. Use this easy 8 step guide to create your own fantastic craft fair display booth.

New! Comments

Get craft business tips when you need them! subscribe to the Craft Business Newsletter

Click to see this site's Advertising Disclosure , Terms of Use and Privacy Policy .

Click here to Contact Me . Return to the Home page.

Copyright © 2006-2024 CraftProfessional.com - All rights reserved.

Monthly Plan & Checklist for a Handmade Business

“Organization” may not be at the top of everyone’s goal list by I’m sure “making money” is. In order to make money and run a profitable business…you must be organized. You should have a plan well before you go into a month and have implemented tasks that are going to bring you sales.

Sales are not instant.

Sure, you can send a newsletter to your email list and generate a few sales instantly. But getting those people signed up for your newsletter, creating content and building trust and interest so subscribers open your newsletter, click links and buy, typically takes months of work.

To get sales next month, you should already have a plan and be implementing the steps.

Let’s stop treating our businesses as a hobby and flying by the seat of our pants.

Instead, let’s take a hard look at our numbers, what we need to make in revenue and profit to be able to call our operations a successful business and determine what it will take to get there this month.

This is a general guide for a handmade business BUT it absolutely requires your expertise.

Depending on the type of business you run, the products you make and the schedule you follow, you may be able to use all of the ideas mentioned here, some or none of them.

No one (myself included) can give you be-all and end-all advice to run your business. Use articles like this to inspire and guide you but apply your expertise and knowledge to make the ideas work for you.

DOWNLOAD THE WORKSHEETS HERE:

Monthly Checklist & Planner

The free checklist & planner worksheets no longer include the weekly calendars to plan each day of your week. For a full planner and explanation on how to plan your entire year, right down to each day, please view THE SUCCESS PLANNER .

GOALS & PLANS

You should already have a sales goal you’d like to hit for the year. If you don’t, set that goal now, subtract your earnings from the months that have passed and distribute the remaining amount between the months that are left, giving a higher goal for busy months and a lower goal for slower months.

For example, if you’d like to earn $15,000 for the year and you made $3500 in January/February/March, you’d divide $11,500 by 9 (for the 9 remaining months from April – December) to have a goal of $1278 each month. But you may know April is a slow month, May is busy and June falls in between. So you might set your sales goal to $800 for April, make up that $478 in May with a $1756 goal and $1278 for June.

*Be sure you’re mindful of revenue vs. profit when setting goals. If you’ve priced your products following the popular formula: materials + time = costs x 2 = wholesale price x 2 = retail price , your profits will be 75% of your revenue.

Meaning, if you sell $1250 revenue, you profit $937.50. If you want $1250 profit, you must sell $1667 in revenue.

Each month, you must pay attention to your:

• Return on Investment (ROI) for tasks you spend your time and/or money on
• Conversion rates

Please check out THE SUCCESS PLANNER if you need help understanding your profits, ROI, or conversion rates, how to calculate them and how to improve them.

Use the printable worksheets ( Monthly Checklist & Planner ) to:

1) Write down your sales goal from last month

What did you hope to earn last month?

2) Write down what your actual sales were for last month

Did you hit your goal? Exceed it? Come in under? Adjust your future goals accordingly.

For example, if you were $200 under your goal, you may tack that $200 on to your next month’s goal to stay on track for your yearly goal. Or that $200 may be distributed evenly among the remaining months.

3) Write down your sales goal for this month

What do you hope to earn this month?

4) Write down your main focus for this month

If Mother’s Day is a holiday that generates a lot of sales for your business, “Mother’s Day sales” might be your focus for May.

If the upcoming month is typically slow for your business, you may focus on “product planning” or “producing stock” to prepare for upcoming busy months.

List one or two areas of business that will get your focus this month.

5) Write down your focus for each week of the month

Look at the current/upcoming month by week 1, 2, 3 and 4. What are the important tasks, events, dates, etc. of each week?

You don’t need to get into details, simply write the big events for each week. For example:

Week 1 – Update online shop with new seasonal theme

Week 2 – Run promotion to clear out last season’s stock

Week 3 – Launch new collection

Week 4 – Participating in craft show this week

6) Write down important to-do’s for this month

List any important tasks that must be completed this month.

Again, don’t get into details, simply jot down anything you must remember (e.g. application deadline for Father’s Day craft show, take sewing machine in for servicing, etc.).

7) Write down important dates in upcoming months

Look at least 3 months ahead to see what’s coming up and what impacts your “plan” and “prepare” tasks.

You don’t want to go into a month without a plan. This month you should be prepping for next month (e.g. prepping stock), planning for the month after that (e.g. planning new product lines) and have the month after that in the back of your thoughts (e.g. be aware of events you want to participate in or important dates).

List important events, holidays, deadlines, etc. for the 3 months following the month you’re about to head into. For example, if you’re heading into, or are in the beginning of May, look ahead to June, July & August.

BUSINESS STAGES

To help stay organized, I’ve found it helpful to look at business in three main areas:

First, you must create a product, then you must market that product so people are aware of it and then you must sell that product.

Each area (create, market & sell) requires your attention each month. The tasks that fall under each area will depend on the sales channel(s) you use. Here I’ll cover the main channels for handmade businesses:

• Online (e.g. your website or Etsy shop)
• Events (e.g. craft shows, farmers’ markets, etc.)
• Retail (e.g. selling wholesale to shops & boutiques)

For more sales channels, marketing channels and marketing methods handmade businesses should be using, check out HOW TO SELL HANDMADE BEYOND FRIENDS & FAMILY  or THE SUCCESS PLANNER

You can also join the free 5 day challenge: BEAT LAST YEAR’S SALES , to receive a free sample chapter and a few lessons from HOW TO SELL HANDMADE BEYOND FRIENDS & FAMILY. Check out details and join the challenge here .

To ensure I’m not just focusing on tasks that need my immediate attention, I like to break tasks into:

• Plan – looking 3+ months in advance, these are tasks that require thought, but not a lot of action yet.
• Prepare – looking 1+ month(s) in advance, these are tasks that must be completed for next month. Working on them now ensures I’m prepared and staying ahead of schedule.
• Present – looking at the current month, these are tasks that must be completed this month.

Take a look at the sales channel(s) you use (which are broken into: online, events, & retail on the checklist) and read my suggestions for tasks you could work on this month when it comes to planning, preparing and presenting: creating tasks, marketing tasks and selling tasks.

I would love to say I’m always this organized and am always prepared months in advance, but of course, there are times I get off track, become overwhelmed, lazy, etc. It happens to all of us.

Don’t let this plan, or anyone else’s, let you feel like you’re off track or doing something wrong.

If you’re currently feeling overwhelmed, eliminate low-value tasks and focus on ones that are going to make you money. Before you go into any task, question whether it will directly or indirectly lead to a sale.

Are you spending time posting to Facebook when no one seems to be paying attention to your posts and it always leads to distractions? Maybe skip Facebook posts for now and focus on that next newsletter, which always seems to generate a couple of sales.

Are you spending time in your craft room making more products when you haven’t sold any of the first ones or figured out why they’re not selling? Take a break from creating and focus on your USP, brand, marketing skills, sales channels, etc.

It’s easy to feel like you  have to do it all in order to be successful. But the successful businesses got to where they are by prioritizing what’s most important to get those sales, getting their head above water and then slowly building on.

Look ahead 3+ month in advance and start thinking about new products you may want to introduce based on holidays or shopping events.

Begin creating stock for next month. Purchase materials at the beginning of this month (if they haven’t already been purchased) and begin production (or continue with production).

Tag and package current product so it’s ready to be shipped.

Prototypes for next month’s products should be completed so they can be photographed and photos can be uploaded and edited in time to update your shop at the end of this month or beginning of next month.

Start planning your marketing for 3+ months in advance, based on the marketing channels and methods you currently use.

Plan your newsletter schedule and topics.

Look ahead several months if you plan to send press releases. Magazines operate similar to retailers; several months in advance. Download the media kits of magazines you’d love to be featured in and get an idea of when deadlines are for advertising. Although you’re hoping to be featured, not advertise, it gives you an idea of when they plan to have an issue of a magazine drafted.

Generally, you should be planning 4 – 6 months in advance for any magazine issues you’d like to be featured in. For example, if it’s the end of May, it’s likely too late to be featured in magazines issues coming out before September; it will be less rushed for you to focus on pitching ideas for October, November and December issues.

If you need help in the marketing department and ideas on marketing channels and methods, check out HOW TO SELL HANDMADE BEYOND FRIENDS & FAMILY  or join the free 5 day challenge to receive a sample chapter and a few key lessons from the ebook.

Prepare marketing for next month. If you’re running ads, prepare the text and images so they’re ready to go.

Do you need to prepare images or text for social media marketing? For any social media platforms that allow you to schedule posts in advance, do so.

Draft blog posts for next month.

Keep in mind, with blogging, it takes time for your blog post to bring in traffic. You can generate immediate traffic to a blog post through your newsletter but if you’re hoping to build your organic traffic through SEO, get those time-sensitive posts up weeks before a holiday so Google has time to pick them up and show them in search results.

If you rely on the press for marketing, start drafting press releases for issues 4+ months away so you’re ready to send them next month (remember, magazines typically work 3 – 6 months in advance so you must follow their schedule if you hope to be featured).

*Search the name of the magazine you want to pitch to along with “media kit 2018 (or current year)” to see if they post their media kit online. In their media kit, they may share the topics that are covered in each issue of their magazine or the general theme for each month, which gives you a good guideline to follow. If their November issue is all about Thanksgiving and winter prep (hair, skin, wardrobe, etc.) you should be thinking about product or story ideas that can fit within the Thanksgiving/winter prep theme.

You should be marketing your current products by sharing them on social media posts, in blog articles, in newsletters, etc.

Send any press releases this month to meet closing dates for issues coming out in 3+ months.

Look ahead 2 – 3 months and determine what type of online shopping events are coming up.

Plan what it means for your shop to implement a new theme based on the season, a holiday, a shopping event, etc. Will you need to update your banner, props in your photos, run a promotion?

Photoshoots for next month’s products should be scheduled this month. Photos should be edited and uploaded so you’re ready to create listings and update your banner at the end of the month or beginning of next month.

Be sure you don’t go overboard with props or themes and keep everything on-brand. Here are some tips on properly photographing your products .

The banner or home page image can get a refresh, shop announcements may be updated with order deadlines to receive shipments in time for certain holidays, promotions you’re running, listings updated with new images, titles, tags, etc. to align with current month/season/holiday and what people are searching for.

For example, you may be selling the same product in summer as you did in spring but updating the images to use more colorful/summery props or changing titles from “Bridesmaid Earrings for Spring Wedding” to “Bridesmaid Earrings for Summer Wedding” may give your listings a boost.

You may want to clear or give less of a spotlight to last month’s products so your online shop doesn’t look outdated. You may run a promotion and mark down stock, move listings to a different category/page of website/location, or simply update photos and listings to give them a refresh.

Start thinking about and researching products for events you plan to sell at that are 3+ months away. If you’re participating in Farmer’s Markets and outdoor festivals in the summer, keep in mind; people likely don’t want to haul big or heavy objects around the market or festival so you may want to plan some smaller, impulse-buy items.

Work on building stock for any events coming up next month, or even the month after.

If you’re participating in craft shows this month, stock should be completed. Work on finishing details for that stock: tagging, packaging, pricing and packing into containers for transport.

If you have craft shows coming up in 3+ months, plan when, where and how you’ll market the event to your fans, followers and existing customers.

You may roughly mark the week that marketing will begin through social media, newsletters, etc. plan when to start sending mailers or handing out flyers, etc.

Marketing materials should be prepared this month for any events coming up next month. You’ll need flyers, images to share on social media, newsletter drafts, etc.

What’s the benefit of someone visiting you at the event? Are they going to find some of the best upcoming trends? Be sure to share the benefit in your marketing.

If you’re participating in craft shows this month, your marketing can begin now. Start posting to social media, encouraging people to mark the date in their calendar and post reminders in the days leading up to the event. What you post and how often will depend on the marketing platform. MAKE MORE MONEY AT CRAFT FAIRS explains in detail how to properly market for a craft show.

Mailers to existing (local) customers should be sent and flyers for the event should be handed out.

A newsletter should be sent this month, the week of the event, to encourage local customers to show up. Give them an incentive to shop with you at the event, instead of online (e.g. special discount if they print a coupon you share, new products available at the event only, etc.).

Look ahead at least 1 – 3 months to be aware of upcoming events you’d like to participate in and mark the application deadlines in your calendar. It’s also never too early to start thinking about how you might create an attractive display. Event organizers love to hear you’re putting thought into it.

If you have events scheduled in the next few months, you should be working on your display and gathering props, display fixtures, signage, etc.

Consider props and colors that will be a fit for the month or holiday the event is organized around.

If you’re participating in a craft show this month, you’ll be setting up your display and selling on those allotted days. Be sure all display props are gathered and ready to go. You should also have your sales pitches determined (if selling doesn’t come naturally to you).

If you need help when it comes to researching, applying, preparing and selling at craft shows, check out MAKE MORE MONEY AT CRAFT FAIRS  or sign up for the free 5-day challenge: 5 DAYS TO A STANDOUT DISPLAY . It’ll walk you through how to create an amazing display with a strong message.

Retailers typically buy product for their stores 3 – 6 months in advance. The bigger the retailer, the further in advance they shop for and buy product.

If you’re planning to work with small boutiques, they may buy a month or two in advance. You’ll have to get to know each retailer you want to get your products into and inquire about their buying schedule.

Prepare prototypes so you’re able to create lookbooks and line sheets for seasons that are 3 – 6 months away.

You may be continuing to work on stock for orders placed last month/this month.

Retailers typically update their sales floor with seasonal stock, a couple of months before the season arrives. For example, summer stock typically hits the sales floor in April or May.

Be sure your product is completed and ready to be shipped so it arrives at stores in time for when they’re updating their sales floor.

Define how you will market your upcoming (3 – 6 months away) product line to retailers and which retailers you will market to. What’s the theme of your lookbook? When is your photoshoot and do you need to line up a photographer or props?

Set up appointments with any local retailers to stop by with the *appropriate season’s lookbook, line sheets and/or samples. (*appropriate meaning if it’s May and they complete their buying 3-6 months in advance, you’re presenting fall or winter products). Here are 10 steps for getting your products into new stores.

Mark dates in your calendar to follow up with retailers after you’ve had your initial contact (after they’ve received your lookbook in the mail, by email or after your meeting).

You may follow up with retailers you’ve met with but who haven’t been in touch to place orders. Check to ensure they received your lookbook (if you mailed/emailed it) or ask if they have any questions/want to place an order if you had an in-person meeting.

Plan which retailers you will approach in 3 – 6 months and how you would like to expand the retail side of your business, 3 – 6 months down the road.

Prepare invoices for retailers you’ve sold the current season’s or upcoming season’s stock to. Some retailers will want to pay net 30, 60 or 90 (meaning they pay their invoice 30, 60 or 90 days after they receive your product) so prepare invoices to be sent based on the payment terms you agreed to.

Each retailer will specify when they want orders shipped so prepare any orders so they can be shipped and arrive at their store on time. You may be shipping seasonal stock 1 – 3 months before the season arrives.

If it’s been 30 days since your order arrived at a retailer with net 30 terms, send the invoice this month. If it’s been 60 days since your order arrived at a retailer with net 60 terms, send the invoice this month. And if it’s been 90 days since your order arrived at a retailer with net 90 terms, send the invoice this month.

As mentioned, be sure you’re not blindly following the plan and you’re adjusting it to fit your business.

This article does not cover any operational tasks, such as paying bills, filing taxes, answering emails, etc. Please be sure to mark any important operational tasks in your calendar as well.

If you’d like an even more detailed guide, additional worksheets, and a plan that makes hitting your sales goals inevitable, please check out THE SUCCESS PLANNER.

When you’re not sure what a business like yours should do when it comes to creating, marketing, and selling (e.g. you’re not sure which social media platforms to use), try researching your competitors. This article will walk you through how to uncover your business’s best practices before you even launch your business.

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

Join over 18,000 others and sign up for the Made Urban newsletter

Success! Please check your email to confirm your subscription.

There was an error submitting your subscription. Please try again.

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!

Have been reading and following your tips and advice for several weeks now. Have been working on a new Shabby Chic line of practical items, not just frou frou shelf sitters. I am giving this line one year to succeed. If it does not go over in this southwestern little mountain community I will use it in my own living room and sewing room as they are already Shabby chic and have been for over 20 years LOL I just didn’t know it at the time I put together this look. I appreciate all the good advice you have given us and will let you know if this season is better than last and try to analyze why it is so I can continue to be successful. Thank goodness Hubby and I do not have to make a living at this. We are retired and doing it for fun, and a way to stay brain active.

Thank you so much for this post! It is awesome to see it written out this way, so precise and easy to follow. This will help me get more organized and boy do I need that!

Such detail is so appreciated!

Erin; Thanks for another great update on organization. I hope to approach some retail businesses for my Garden Artwork. I thought of a new aspect to make it different from others in the market place. I am getting positive feedback from my newsletter. Joyce

wowwwww Thank you so much I really appreciate all the good advice you have given. Sometimes we need to recognize the simple true in life, and that is THERE IS ANGELS AMONG US, people who love to help others, and are there quiet helping, Made Urban THANK YOU so much!!!

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

10 Profitable Home Business Ideas to Make Money From Home (2024)

Looking for work-from-home business ideas? Good idea.

Renting commercial real estate, warehousing, or office space can put massive financial strain on a new business. In contrast, many home business opportunities are quick and easy to start.

But there are so many home-based business ideas out there — which one should you consider?

Some work-from-home business ideas require an upfront investment to get the ball rolling — and some require just $39. Also, some home-based businesses are easier to start if you can turn a spare bedroom into an office or workshop — others are easy to run from your dining table.

So, what's the best work-from-home business idea for you? In this article, we'll explore 10 of the best home business ideas that you can start quickly and easily.

(Disclosure: This website is a part of Shopify inc. media properties. Although we strive to publish objective, accurate, and factual content, this article may contain biased opinions.)

Start selling online now with Shopify

10 Profitable Home Business Ideas You Can Start Today

While there are countless ways to start a home-based business, here are 10 of the most approachable home business ideas to consider:

• Sell handmade products
• Purchase products in bulk and sell them online
• Start a dropshipping business
• Start a print-on-demand business
• Purchase an existing ecommerce business
• Start a subscription box business
• Teach online classes
• Start a service-based business
• Sell digital products online
• Build an online following that you can monetize

1. Sell Handmade Products

Do you love to create things at home? If you love crafts or art, why not sell your handcrafted products online? For example, you could:

→ Click Here to Launch Your Online Business with Shopify

• Make candles
• Create jewelry
• Create pieces of art
• Make homemade food
• Design and sew clothing
• Knit clothes and blankets
• Craft wooden furniture

Whatever you like to create, selling handmade products is a great way to turn a passion into a work-from-home business opportunity.

There are two main ways to start selling handmade products online:

• Sell through a marketplace such as Etsy
• Create your own online store using a platform like Shopify

That said, you could also sell via both channels with Shopify's Etsy integration .

If this home business idea has caught your eye, start by writing a list of everything you could create. Then, do some online research to see what other people are selling.

2. Start a Dropshipping Business From Home

If you like the idea of running an online store, but you're not sure what to sell, consider starting a dropshipping business from home. Plus, this is a home business idea with low startup costs.

Dropshipping is a type of ecommerce in which sellers don't need to purchase or store the products they sell. Instead, sellers partner with dropshipping suppliers who manage the inventory and ship products directly to customers on the seller's behalf.

Check out the image below to see the dropshipping business model in action:

Pretty cool, right?

The best part is that starting a dropshipping business from home is as easy as 1-2-3 thanks to dropshipping apps like DSers .

Here's why: You can use DSers to start selling dropshipped products online today — just sign up for Shopify , install the Dsers app , and search for products to add to your store.

3. Start a Print-on-Demand Business From Home

Similarly, if you like to create art and eye-catching designs but don't want to make products yourself, you could start a print-on-demand business from home.

Print-on-demand is a type of dropshipping in which you can sell products that are customized with your designs, such as:

• Apparel: T-shirts, hoodies, leggings, yoga pants, etc.
• Footwear: Sneakers, boots, flip flops, etc.
• Accessories: Jewelry, watches, phone covers, bags, bottles, face masks, notebooks, stationery, etc.
• Homeware: Mugs, towels, bedsheets, cushions, blankets, throws, etc.
• Art: posters, wall hangings, stickers, magnets, etc.
• Electronics: Headphones, speakers, etc.

Check out some common print-on-demand products in the image below from Printful :

To start this work-from-home business idea, sign up for a Shopify account and choose a print-on-demand app to install , such as:

4. Purchase Products in Bulk and Sell Them Online

Another way to sell products online is to buy products in bulk — also known as 'wholesale' — and sell them individually. 

When you purchase products in bulk, you can get a lower cost-per-unit than if you buy them individually. Then, when selling the products one-by-one, you're able to increase the prices to create a profit margin.

So, where can you buy fantastic goods in bulk?

Start by researching products on business-to-business (B2B) ecommerce marketplaces like Alibaba and DHgate.com .

You can then create an online store with Shopify to sell your products to consumers.

Plus, instead of selling products individually to consumers, you could also purchase products in bulk and sell them to retailers in smaller quantities — this is called wholesaling.

5. Purchase An Existing Ecommerce Business

If you don't have the time — or the inclination — to set up a home-based business from scratch, you could always buy an existing home business opportunity via the Exchange marketplace .

This website facilitates the sale of ecommerce businesses in a range of niches. Plus, you can buy an established business or a relatively new business.

This may sound pretty complicated at first, but in practice, it's pretty straightforward.

Start by browsing the home business opportunities listed on Exchange. When you find a business you like, consider reaching out to the buyer to find out more information. Then, if you decide to purchase the business, Exchange will facilitate the… well, exchange.

On the other hand, if you want to start businesses but you're not interested in growing them to their full potential, you could create and sell ecommerce businesses on Exchange. 

It's also possible to 'flip' businesses — or to put it another way, buy a business, improve it, and then sell it for a profit.

6. Start a Subscription Box Business From Home

Why sell one product at a time when you can sell a bundle of products every month to the same person? This is what subscription box businesses like Birchbox do. 

Plus, Google Trends shows how interest in subscription boxes has boomed in recent years:

This home business idea is a fantastic way to grow a sustainable income, thanks to the recurring revenue generated by ongoing purchases.

You can sell almost anything as a subscription box, too, such as:

• Fashion accessories
• Indie records
• Homeware and kitchen gadgets
• Information products (such as up-to-date industry reports)
• Food, such as snacks or sauces

What's more, you don't necessarily have to sell products — you could also rent them. For example, Haverdash rents clothes.

To get started with this home business idea, sign up for Shopify and use the built-in subscription management tools. 

7. Teach Online

If you have in-demand skills or knowledge and a talent for teaching, consider sharing your knowledge via online video calls

Popular subjects taught online include languages, maths, science, and business. But there are no limits to what you can teach, so you could also teach things like music, sewing, or even DIY!

According to PayScale , most online teachers earn between $10.18 and $39.87 per hour, depending on their level of experience.

There are countless online teaching marketplaces that will help you to connect with students and manage your classes, such as:

Plus, there are plenty of feature-rich online teaching platforms to help you create incredible virtual learning experiences, such as:

8. Start a Service-Based Business From Home

The need for digital services is rampant — from designers and developers to digital marketers and doodlers, there's a need for virtually every talent.

If you're wondering what service you can offer, here are 20 service-based home business opportunities to consider:

• Graphic designer
• Web designer
• Transcriber
• Marketing writer
• Resume writer
• Photo or video editor
• Social media manager
• Digital advertising manager
• Data entry clerk
• Virtual assistant
• Career coach
• Marketing consultant
• Management consultant
• Finance consultant
• Calligrapher

Some of these home business ideas offer more income potential than others. So, make sure to do your research to choose the right service-based home business idea for you.

To get started, consider signing up to a freelance marketplace like People Per Hour , Upwork , or Fiverr .

You could also create a website and then find clients independently by networking and pitching.

9. Sell Digital Products Online

If you've mastered a particular skill or subject and don't want to teach online or provide a service, you could package your knowledge and experience in a digital product.

Selling digital products is a fantastic home business idea because — like dropshipping — there's no need to source or manage inventory or ship products to customers. Plus, once you've created a digital product, it doesn't cost anything to replicate.

So, what types of digital products can you sell? Here are 20 to consider:

• Written templates (résumés, scripts, marketing emails, etc.)
• Spreadsheets
• Illustrations
• Graphic templates
• Editing presets (for videos, images, or audio)
• Online tools
• Membership sites
• Audio (music, samples, podcasts, etc.)
• Research (statistics, reports, etc.)

For example, Gabriella and Andrew Morrison sell courses and house plans to help people build tiny houses on their website Tiny House Build .

10. Build An Online Following That You Can Monetize

If you love creating content, you could build an online following around a particular topic or niche and monetize your audience.

If you're interested in this home business idea, you need to choose a way to build an audience. Now, there are many ways to create a following online — for example, you could:

• Grow an Instagram following
• Build a YouTube audience
• Create a blog and grow your readership
• Grow a Twitch following
• Build a TikTok following

Once you have a relatively large following or plenty of website traffic, how can you make money? In essence, there are three ways to monetize an online audience:

• Brand sponsorships: Get paid to promote a company's products (also known as ' influencer marketing .'
• Affiliate marketing: Promote a company's products or services and earn a commission.
• Sell products: Create and sell physical or digital products to your audience.

For example, Adam Enfroy built a blog that reviews many software products. In the image below, you can see his blog post reviewing the Shopify platform:

This blog post contains Adam's affiliate link to Shopify . As a result, whenever someone reads the post, clicks the affiliate link, and signs up for Shopify, Adam will receive a small sales commission.

FAQs About Home Business Ideas

• How do I start a small home business?

Wondering how to start a small home business? Here are 8 steps to starting an online business:

• Choose an online business model that suits your business
• Identify your target market
• Identify the problem that your business is solving
• Know your competitors and how you are different from them
• Choose a sourcing strategy that your customers will love
• Set up your payment system so you can get paid 
• Test your business idea in the simplest way possible
• Create your marketing strategy to start promoting your business
• How do I make money from home business ideas?

There are many ways that online home business ideas make money. You could charge per product, create subscriptions, build affiliate links, and so much more. Once you have decided your business model you can start brainstorming the exact home business idea for you and get started.

Choose A Home-Based Business Idea and Get Started Today 

There are tons of profitable home business ideas out there to choose from. So, if you're wondering, "What business can I start from home?" Here are 10 of the best home-based businesses to consider:

• Sell products you make at home online
• Start dropshipping products with Dsers
• Sell print-on-demand products
• Buy products in bulk and sell them online
• Purchase an existing business on Exchange
• Sell subscription boxes
• Teach online
• Sell digital products
• Build and monetize an online following

When deciding which home business opportunity to pursue, try to capitalize on any skills and experience you have — and consider following your interests or passions.

Which home business idea has caught your eye? Let us know in the comments below!

Want to Learn More?

• How to Use Shopify: A Quick and Easy Shopify Tutorial for Beginners
• What is Dropshipping: Things You Need To Know Before Getting Started
• Shopify Pricing Plans: Which Shopify Plan is Best For Me?
• Do You Have an Entrepreneurial Spirit? Find Out Here (With Quotes)

SEO Report: Definition, Components, and How to Create

Craft an impactful SEO report with this guide. Learn actionable tips and expert insights to ensure your report achieves…

Advantages and Disadvantages of Ecommerce in 2024

Are you considering starting an ecommerce business? We've compiled a list of the advantages and disadvantages of ecomme…

11 Top Search Engines to Optimize For in 2024

Discover 11 leading search engines of 2024. Find out where to direct your optimization efforts for maximum impact.

Oberlo uses cookies to provide necessary site functionality and improve your experience. By using our website, you agree to our privacy policy.

Step-by-Step Sample of a Craft Business Plan

• Mary Rajotte
• Categories : Entrepreneurs , Business
• Tags : Office entrepreneurs topics business planning

Reality Check

Having a passion for arts and crafts is a great place to start, but that does not mean you should completely overlook the importance of having a solid plan to back up your interests.

While being passionate about your product is a great place to start, you need to put a plan into place that will help you to start, build and grow your business. That is where this sample of a craft business plan can help you to focus on your goal of being a small business owner.

After putting all the pieces into place, implementing them is much easier, and your excitement for your passion project will translate into a passion that is reciprocated by your customers.

Photo: Melodi2

Creating a business plan will provide you with a solid basis from which to start your craft business. Generally, most business plans follow a similar format , and this sample of a craft business plan includes the following areas:

Executive Summary

Mission statement.

• Product/Service Descriptions
• Marketing Plan

Financial Information

The Executive Summary pinpoints the main bulletpoints of your business, offering a quick glance at the most important aspects of your small business and what you hope to achieve. These can include:

• contact information for your business
• a brief description of you & your business
• your objectives & how you will achieve them

Sparkle Jewelry Designs is a handcrafted jewelry business with a focus on modern styles with an edge.

Our ideal customers are females between the ages of 20 to 40. Our clients pride themselves on wearing fashions that express their individuality and they choose our designs for their creative styles that are both fashion-forward and can be worn for years to come.

The Mission Statement should include your intentions for your company

• trends and how you fit into the marketplace
• be specific with your goals & think beyond simply being a success in your target market

Our clients love fashion but they are not satisfied with mass-produced, cookie-cutter accessories. They seek out our brand for our attention to detail, custom designs, and the personal touch that comes with our handcrafed designs.

Product/Service Description

This section should include information on what makes your product special.

• What is your unique selling point?
• How is your product different than what is currently available in the marketplace?
• Do you do something faster, better or in a way that is innovative when compared to your competition?
• What benefit does your product have for your customers? Does it solve a problem or fill a hole in the marketplace? How does your product uniquely enhance their life?

Each piece in the Sparkle Jewelry Designs line is handcrafted in limited edition batches.

This provides a much sought-after appeal to our pieces, while offering unique designs that are handcrafted to the highest standards specifically for our customers.

This also allows us to apply the highest level of craftmanship to every piece in the Sparkle Jewelry Designs line.

Marketing Plan: Reaching Your Target Market

This section should be completed following a market analysis that will determine the three main components of your marketing plan.

• your target market

• your competition and how you plan to compete

• marketing expenses & how you will market your crafts

Sparkle Jewelry Designs are currently sold via our online website, which receives traffic flow from our various social media pages on Facebook, Twitter and LinkedIn.

We plan to market our jewelry via these online spaces, as well as through various blogs that our shoppers read. Our sales will be tracked online via Paypal, which we will use to collect payment, as well as run & print monthly reports of all sales & expenses.

Sparkle Jewelry Designs is located in downtown Toronto, which gives us access to various crafts shows, artisan markets and trade shows where we rent space to sell our wares .

Our clients love fashion but they are not satisfied with mass-produced, cookie-cutter accessories. They seek out our brand for our attention to detail, custom designs, and the personal touch that comes with our handcrafted designs.

Photo: Andres Rodriguez

This section should include information on sales, expenses and cash flow expectations .

• what start-up costs will you have?
• how will you source supplies?

Since Sparkle Jewelry Designs will be run from our home, our start-up expenses will be minimal. Our expenses will be web hosting, domain registration and minimal advertising costs. We will also need to purchase packaging materials for our orders, and to pay a minimal fee for each sale by using Paypal as our payment processor.

We expect our cash flow to be more lucrative during Fall (for holiday shoppers) and Spring, with a slow-down in Summer months, as online traffic and shopping in general seems to slow down in those periods.

Final Thoughts

While your aim is to make your business plan as professional as possible, don’t think that you cannot be creative with your business plan. Creating a small craft business plan will allow you to see your entire business laid out before you, and give you a snapshot of how you can live your dream and make money doing so.

Inserting your personality and the passion you have for your craft business idea will translate into a compelling document that will help you propel your business forward.

• How to Write a Simple Business Plan
• Best Craft Business Ideas
• Top 5 Work-from-Home Arts & Crafts Jobs

11 Craft Jobs for Stay-at-Home Moms

Are you a talented artist, crafter, knitter, or seamstress? Would you like to make money from home with a craft job?

Great news! There are lots of money-making opportunities for artisans and crafters--and the market for handmade and DIY products has never been better, particularly with the growing availability of online resources.

From selling your crafts on Etsy to writing about your projects to sharing how-to instructions with others, the opportunities for crafters are wide open.

If you're artsy and crafty, check out these great craft jobs for stay-at-home moms.

1. Craft Blogger

If you're full of ideas or ingenious solutions to crafting problems—you've already found your perfect blog topic! Craft blogging is a huge niche that encompasses a wide variety of mediums, including paper, photography, painting, printmaking, jewelry design, and home decor, all fall under crafting.

Perhaps you enjoy creating crafts with your kids, making pottery, or even holiday-specific craftwork . Maybe you're interested in blogging about knitting, sewing, or quilting; the topics are endless.

Many stay-at-home moms who want to start a blog struggle with what to write about, but for crafters, simply doing what you love provides you with an endless well of ideas and topics surrounding your crafts. If you're an expert crafter, setting up and starting a blog is a natural extension to share your talents.

Get started by reading other craft blogs in your niche to learn the best practices. Try recording your process on video. Share detailed, step-by-step instructions to help your audience connect with your projects and content. Use Pinterest and other social media sites to drive traffic to your blog .

With work, it's possible to turn your crafting blog into a full-time source of income. That's what Jennifer Maker has done -- in fact, she earns seven figures a year from her craft blog!

2. Craft Instructor

If you love to fuel the creative spark in others, becoming a craft instructor is a great work-at-home opportunity. With a wide array of online teaching platforms, you can record your own instructional videos, teach a class for a specific organization, or create tutorials for other bloggers.

Teaching classes online is an excellent way to supplement your income. Instructors earn thousands of dollars annually by recording and posting craft tutorials on different in-demand craft topics. With the trend toward the DIY mindset, crafts, and artistic endeavors are a great area to explore.

There are plenty of places to search for teaching opportunities. Some opportunities will pay you per class, and others will pay per registrant, so check out all the details before applying.

Here are a few places to check out for craft jobs:

• Creativebug

3. Join a Direct Sales Craft or Scrapbook Opportunity

Do you prefer selling a tangible product? Then consider joining a direct sales craft opportunity. These opportunities are great if you have a wide social network, enjoy meeting new people, and selling products.

Chalky & Company offers a direct sales opportunity providing supplies for painting parties. During painting get-togethers, customers create beautiful decorative items for their homes, learn techniques such as crackling, and even work on projects with kids. Customers order online, and consultants get their own website for free for the first three months ($10/month after). You can purchase a starter kit for $99 and maintain an active status with $150 in orders every three months. Consultants earn a 30% commission.

Did you know there are direct sales companies that focus solely on scrapbooking ? If you love the social aspect of craft get-togethers and creating paper projects with a group, this may be the perfect work-at-home business opportunity for you.

One popular scrapbooking company is  Kiwi Lane , which offers cute scrapbooking kits, greeting cards, and photo frame kits. Consultants earn a 30% commission on sales, plus freebies and rewards. They also receive their own website.

Related content: Best Direct Sales Craft Companies to Join

4. Home-Based Embroidery Business

A mom at my daughter's school owns an embroidery and personalization business. She monograms and personalizes items like t-shirts , hats, bags, lunch boxes, Yeti tumblers, and lots more.

If you're interested in starting your own monogramming business , machine rental is a good way to begin. You can build up your customer base by working on small jobs first and then asking for referrals. Eventually, you can invest in your own machine and take on even more orders.

Many businesses, schools, and sports teams love working with a local vendor, especially when they can get a feel for the product, see samples firsthand and approve the design in person. If you love sewing, starting an embroidery business may be a great way to make money doing something you enjoy.

5. Online Craft Seller

If you love making soap , jewelry, candles , hair clips, Cricut crafts , or some other creative wares, you can turn your creative skills into cash!

Many of us think of Etsy as the go-to platform when we envision selling our crafts online. After all, Etsy offers a platform to sell any handmade creation you imagine.

Selling your crafts on Etsy is easy, especially if you don't have money to invest in your own crafting blog or e-commerce website. With Etsy, you set your own prices and promote your products. Etsy charges a small listing fee of $.20 per item and a 3.5% transaction fee for items sold. Pricing your creation at a competitive rate and offering reliable, fast shipping and customer service will ensure you receive repeat customers and build your ratings.

Another platform you may not have thought about is Amazon Handmade . With Amazon, you'll create a seller's account, and you can either pay $39.99 a month to join or get your products pre-approved. List as many products as you'd like; Amazon only takes a 15% fee once you make a sale.

If you have an excess of crafting supplies, you can sell your surplus on eBay or Etsy. 

Once you've chosen a selling platform, you can use social media platforms to drive people back to your shop. You can also keep customers coming back by offering discounts to repeat customers and sending out an email newsletter with new product releases.

6. Pattern Maker and Seller

When you hear the word pattern, you probably think of a sewing pattern, but there is a wide range of patterns one can create and sell online. From Cricut and SVG files and digital designs to knitting, quilting, sewing, and more! If you're skilled at creating patterns, templates, and designs, you can earn money selling your patterns on sites like Craftsy, Creative Market , LoveCrafts , or Patternbank .

The great thing about selling patterns is it's a great source of passive income! Create the pattern once and sell it over and over again for cash! If you have a blog, you can sell your patterns directly from your own site, giving you an additional source of blogging revenue. My friend, Julie, sells crochet patterns on her blog, I Can Crochet That .

If you need more places to sell your patterns, check out these posts from Creative Howl and Real Ways to Earn .

7. Craft Book Publisher

Popular craft bloggers like Jamie Dorobek and Holly Homer have created and published their own craft books. Many bloggers find that repackaging their stand-out posts with additional content and then adding a well-formatted design is all they need to create a best-selling craft book.

Self-publishing an eBook is easy, especially as you're just feeling the market out for your book. Offering downloadable or e-reader-friendly formats will ensure your ideas get into the hands of crafters and creators right away.

Choose an area of focus (knitting, crocheting, felting, quilting) or compile your tutorials based on a common theme (holiday crafts, crafts for kids, easy crafts for beginners). Get to know your audience and create a craft book your niche will love.

8. Sample Knitter or Tester

If you're great with a pair of knitting needles, craft stores, pattern makers, and yarn shops will often pay knitters to test patterns and create samples. Test knitters look for mistakes in patterns and alert the pattern maker to any problems or areas where clarification is needed. Whenever you see a sample sweater or scarf hanging in the store, chances are a test knitter created it.

While test and sample knitting isn't high paying (most projects offer compensation between $50-$200 per project, which comes out to less than minimum wage), it's fun, and it's exciting to see your projects hanging or photographed.

You'll also build your knitting speed and skill level by crafting samples. Plus, test knitting is an excellent stay-at-home income option with flexible hours. To learn more about becoming a test knitter, read this great tutorial from The Penny Hoarder.

You can also check out these sites for sample knitting jobs:

• Brooklyn Tweed
• Knitting Today

9. YouTube Crafting Content Creator

YouTube is constantly growing, and approximately 5 billion videos are watched on YouTube per day! The good news is starting a YouTube crafting channel doesn't require much in terms of initial investment.

Some YouTubers earn a solid living, but there's a lot of promotion and work involved. Success and popularity rarely happen overnight. YouTubers who find the most success are great at cross-promoting their channel on social media and blogging. Earning money on your channel is dependent on its popularity and the advertising revenue you can generate. Creating solid, helpful content that's clear and easy to follow will boost your views and help you connect with your audience.

10. Join a Contest on Instructables

Instructables is a massive online community of DIYers and creators. With Instructables, you create an account and upload your DIY projects in writing, photos, videos, or uploads. You can submit projects in various categories, from crafts and cooking to living, outdoors, and more! Each month, they give away thousands of dollars in prizes, such as Amazon gift cards, laser cutters, 3D printers , and more. Some creators on the site have been featured in major publications and started businesses because of their involvement with the site!

11. Other Online Craft Jobs

Another way to find craft jobs is by looking at your favorite craft retailers, bloggers, and product lines. Many of these companies use freelance craft writers and makers to help them with step-by-step tutorials, ideas, and special projects.

For instance, Jennifer Maker has posted numerous crafts jobs on FlexJobs for video creators, social media experts, craft education writers, and more! If you have a favorite craft blogger, sign up for their email list and get involved in their Facebook Group (if they have one). These are often the places they will post their remote job openings. You can also pitch them your ideas and services. If you're not sure how to pitch your services, take a look at this article for helpful tips.

You can also search on Upwork for freelance arts and crafts gigs. A couple of interesting projects available were for crochet pattern makers and a cat-proof Christmas tree. You can also set up a profile on Fiverr , offering your crafting services to business owners and individuals alike. 

Alert: Watch Out for Home Assembly Jobs!

Sadly, there is one area where crafters are often taken advantage of. If you find job ads to perform home assembly jobs or product assembly jobs -- it's usually a dishonest opportunity where you'll lose money. These gigs usually work by setting up nearly impossible expectations for the finished product.

For example, you pay for a craft kit upfront and will supposedly be paid by the number of items you can put together in an hour, only to find it takes much longer to assemble them than was promised in the ad. Then when you send in the finished products, they don't meet quality control standards, so you never make any money. 

When researching craft jobs, check reviews on Google and look for good standings on the Better Business Bureau website. Search for a customer help number, and try getting ahold of them by calling the phone number listed on their website. People promoting shady opportunities often try to hide behind PO Boxes, fake accounts, and non-working contact details. Make sure to do your due diligence before purchasing a kit and wasting your precious time and money.

As you can see, there are plenty of legit craft jobs where creatives can put their skills to good use. If you have artistic and creative talent, use it to earn money from home. Selling your handiwork is a great way to make money and an excellent way to express your creativity!

Are you ready to start a craft business from home? Be sure to grab our free business plan template .

Holly Reisem Hanna is the Founder and Publisher of the award-winning career website  The Work at Home Woman.