How to Start a Crafts Business

A craft business can be a great way to make some extra cash, though it may be a little overwhelming to move from point A to point B in your entrepreneurial goals. Before you can hit the ground running, take a little time to plan ahead and think about the customer base you plan on selling to. With enough preparation, you can put your best foot forward as the owner and manager of a crafts business!

Method 1

Method 1 of 4:

Picking a Niche for Your Business

1
Choose a crafting hobby that you’d like to pursue. Think about your own interests and hobbies, like jewelry-making, crocheting, card making, and more. Choose a specific category that you can center your business around. Pick a skill that you have some background in, so you’ll have an easier time making products for your store.^{[1]XResearch source}
- For instance, if you have a lot of expertise with a certain hobby, like welding or woodworking, you may want to center your business around those crafts.
- Try to think outside of the box. There are a lot of different craft sellers out there, and you want to make yourself as unique as possible. For instance, instead of just knitting throw blankets, you can knit blankets that represent different LGBTQ pride flags.
2
List potential clientele for your business. Think about specific demographics, like age and economic status. Will your ideal customer have a lot of money to spend on artisan goods, or will they be an individual who’s more pressed for cash? This list can give you a basic idea of who you’re selling to and how much you’ll want to charge in the long run.^{[2]XTrustworthy SourceU.S. Small Business AdministrationU.S. government agency focused on supporting small businessesGo to source}
- For instance, if you’re selling high-quality earrings, you can assume that your customers have a bit of spending money. If you’re selling something that’s more of a necessity, like handmade furniture, your customers may have different budget needs.
- It is important to understand your clients before you invest money in building a brick-and-mortar store.
- Then choose a suitable location. For example, if your target customers are working mothers, you can choose a place near a school.
- It is better to start at a small level before opening a big business. For instance, you can do something on an Instagram shop or Spotify. So you do not have to pay a huge rent. You can earn money while you build the shop.
3
Visit craft shows to see what goods artisans are selling. Look online to see what craft shows are happening near you. Browse the different stalls and aisles to see what types of products artisans are selling, and what they’re selling specifically. Observe how many sellers make crafts in your designated niche—if you have a lot of competition right off the bat, you may want to send your craft business in another direction.^{[3]XTrustworthy SourceU.S. Small Business AdministrationU.S. government agency focused on supporting small businessesGo to source}
- For instance, if you want to make a custom photo frame business, you won’t want to set up shop in an area where there are already 2-3 established framers.
- Craft shows can be a great place to find inspiration for your own displays in the future.
4
Check crafting sites to see how much competition is out there. Log onto websites like Handmade at Amazon and Etsy to see the kinds of products that people are selling. Look at how many customers have bought those goods in the past, and if those products seem to be in high demand. This can give you an idea of how popular or unique your business idea is.^{[4]XTrustworthy SourceU.S. Small Business AdministrationU.S. government agency focused on supporting small businessesGo to source}
- You don’t want to start up a business on a website with people who are already well-established in your crafting niche.
- For instance, if you make custom quilts for newborn babies, check Etsy to see how many artisans sell similar goods.
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Method 2

Method 2 of 4:

Figuring out the Logistics of Your Business

1
Create a unique brand identity for yourself. Think of a name and unique logo that really capture the essence of what you’re trying to sell. Don’t reinvent the wheel—instead, focus on a catchy, informative brand name that attracts customers without sounding too cliche or boring. Check that your brand and logo really match the goals of your brand, so your business looks really cohesive and professional.^{[5]XResearch source}
- For instance, if you sell calligraphy prints, you may name your brand something like “Looped Luxury” or “Inked Dreaming.”
- If you make your own baskets, you can name your brand something like “Brittany’s Baskets” or “Bushels of Love.”
2
Register your business with your state or region. Check online to see what your state or region’s small business laws are. If you plan on making a decent chunk of income from this business, you’ll likely need to register yourself with the government for tax purposes. Check your state or regional website for specific information.^{[6]XResearch source}
- For instance, if you’re registered as a small business in the United States, you get an Employer Identification Number, which you use to pay taxes later on.
3
Choose a competitive price for your products. Visit craft shows and check on craft marketplaces to see what the average price is for the type of craft you’re selling. Try to mark your own prices at a similar price so customers don’t write your products off as too expensive.^{[7]XResearch source}
- For instance, if other sellers list their rubber stamps for $15, you may want to undercut their prices slightly by selling your products for $12.
- Always consider the cost of your materials when pricing a product. If you undersell your products, you may end of losing money in the long run.
4
Find a reasonable supplier where you can buy supplies in bulk. Check online to see if there are any wholesale stores that sell the supplies you need for your craft. Think about how much you’re willing to spend on these—keep in mind that you’re trying to make a profit with your business, so your supplies shouldn’t cost more than your actual crafts.^{[8]XTrustworthy SourceU.S. Small Business AdministrationU.S. government agency focused on supporting small businessesGo to source}
- Stores that sell in bulk are a good starting point to work with. Once you make a steady profit, you can purchase supplies from more expensive/luxury brands.
Take some time to create a “stock” for your store, so you can accept lots of orders at once. Set your products aside in a safe place so they’re ready to mail out once you open your business.^{[9]XResearch source}
6
Sign up with a shipping provider who can mail your goods. Look up different pricing information from different postal or shipping offices in your area. Pick a group that has reasonable rates and won’t break the bank when you start making sales.^{[10]XTrustworthy SourceU.S. Small Business AdministrationU.S. government agency focused on supporting small businessesGo to source}
- Your local post office is a good option, depending on the type of product you’re selling.
- Some websites, like Etsy, help you print out a shipping label for your local post office.
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Method 3

Method 3 of 4:

Photographing Your Products

1
Set up a nice backdrop so you can take nice product photos. Drape a white sheet over a chair or wall so you have a clean, crisp backdrop to use for your pictures. Choose something light-colored so your product is really clear and distinguishable in a picture.^{[11]XResearch source}
- If you have a bit of money to spare, buy an official backdrop to use for your product pictures. You can buy these for under $20 online.
- If you have a bit of technology expertise, you can use a green screen as a backdrop instead.
Place extra lights around your product so the picture can look clear and focused. If you’re really committed to a photo studio setup, you can buy lighting from special companies, like SHOTBOX or B&H.^{[12]XTrustworthy SourceU.S. Small Business AdministrationU.S. government agency focused on supporting small businessesGo to source}
3
Take your pictures with a nice camera. Rent or invest in a nice, high-quality camera, or snap pictures with your camera phone. Double-check that the product is centered and well-lit in the photos before you upload them anywhere.^{[13]XTrustworthy SourceU.S. Small Business AdministrationU.S. government agency focused on supporting small businessesGo to source}
- Ask a professional to take pictures if you don’t have a lot of experience.
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Method 4

Method 4 of 4:

Marketing Your Business

1
Predict who your ideal customer will be. Pretend that you’re shopping from your own craft business, and think about how you’d describe your crafts from a shopper’s perspective. Try and form an identity based on this experiment, like where your ideal customer lives, when they’re most likely to shop, and why they choose certain products over others.^{[14]XResearch source}
- For instance, if you make costumes for a living, your ideal customer might be a cosplayer or performer looking for costumes that are higher quality than a standard retailer.
- If you make your own ceramics, your ideal customer may be a middle-aged or older adult looking for art to place in their home.
2
Cater your product descriptions to your ideal clientele. Narrow down your ideal customer’s reason for shopping, then try to address it in your product’s description and website. Think about really specific reasons why the customer might be looking for a certain craft—this can help you narrow down your description.^{[15]XResearch source}
- For instance, if you make custom lotion, you can write something like: “Our summer soap is made with aloe, which will soothe your skin after a hot day in the sun.”
- If you design custom T-shirts, you can say something like: “Our T-shirts are great for a variety of occasions for all ages, whether you’re getting ready for a soccer tournament or a family reunion.”
3
Separate yourself from the competition. Look online to see what other crafters in your field are selling. Give yourself a unique angle that no other crafter has, which will really set you apart from other sellers. Advertise the unique product you offer customers, and explain why it’s noteworthy.^{[16]XTrustworthy SourceU.S. Small Business AdministrationU.S. government agency focused on supporting small businessesGo to source}
- For instance, if you make amigurumi toys, you can use pastel yarn to give your products a unique color scheme.
- If you want to open a woodworking shop, you can use local or recycled wood to make all of your products.
4
Draft a personal story that describes your backstory. Write down a few inspirational paragraphs about your origin story as an artisan. Let them know when you started crafting, and if there are any special causes that are near and dear to your heart. Keep your passage concise and to the point, so buyers feel like they can trust you and your products. Connect with your clients through this story, but make sure they can understand your background in as simple a way as possible. ^{[17]XTrustworthy SourceU.S. Small Business AdministrationU.S. government agency focused on supporting small businessesGo to source}
- For instance, you can say something like: “I’ve been sculpting clay since I was 12 years old, and it’s turned into a lifelong passion. I love challenging myself and creating unique designs for my customers.”
- Let buyers know if your goods support a certain charity.
5
Design a website for your business. Build a website that helps give your customers a full scope of what you offer as an artisan. Include an “about” tab, along with a place for people to shop and view your products. Additionally, include a “contact” page that helps potential clientele get in touch with you more easily.^{[18]XTrustworthy SourceU.S. Small Business AdministrationU.S. government agency focused on supporting small businessesGo to source}
- You can use a free website builder, like Wix or Weebly, but it’ll look more professional if you purchase your own domain.
Make an account on a third-party site, like Etsy or Handmade by Amazon, which will help you sell and ship your products to a variety of locations. These sites usually charge you per listing, and pocket a small portion of your sales.^{[19]XResearch source} If you want to seek directly from your own website, set up your shop on a platform like Shopify or BigCommerce.^{[20]XTrustworthy SourceU.S. Small Business AdministrationU.S. government agency focused on supporting small businessesGo to source}
Did You Know? You may not need a business permit to sell on sites like Etsy, but you’ll still have to pay taxes based on how much you sell.^{[21]XResearch source}
7
Create social media profiles for your business. Sign up on Facebook, Twitter, Instagram, Pinterest, and any other network where you think your customers will be active. Upload content on a regular basis so you can stay in touch with your customers while also promoting yourself.^{[22]XTrustworthy SourceU.S. Small Business AdministrationU.S. government agency focused on supporting small businessesGo to source}
- You can use social media to host fun giveaways for customers, or to show off new merchandise that you’re planning to sell.
8
Sell your products at craft shows for in-person networking opportunities. Register for craft shows in your area if you’d like to interact with customers personally to get your name out there. Always bring a credit card reader with you to accommodate for all buyers. Keep in mind that many shows require a registration fee to rent a booth, so only sign up for events in your price range.^{[23]XResearch source}
- You can use craft shows as an opportunity to share your business card, or set up a mailing list.
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Double-check your state’s website to see what their requirements are. A business lawyer might be able to help you iron out the details of your exact situation.
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Check with your local city for requirement for internet business, and also your state. This varies depending on where you are in the world but remember that regulation is a signal of quality and reassurance to customers, so it's not just red tape but a quality assurance too.
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Tips

Be sure to list any staff members on your website.^{[24]XTrustworthy SourceU.S. Small Business AdministrationU.S. government agency focused on supporting small businessesGo to source}
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A craft business can be a great side job if you’re looking to make extra money.
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It may help to make a unique email domain specifically for your craft business.
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Warnings

Be prepared for anything when you first start a craft business. There’s no guarantee that you’ll sell enough to make a living, so you’ll want a back-up plan in place.
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