business plan for a craft store

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How to Start a Craft Business in 13 Steps

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Written by: Carolyn Young

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

Edited by: David Lepeska

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

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

Investment range

$1,050 - $6,600

Revenue potential

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

Time to build

0 – 3 months

Profit potential

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

Industry trend

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

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

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

You May Also Wonder:

Can I really make money selling crafts?

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

Where is the best place to sell my crafts online?

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

What homemade craft sells the most?

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

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

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

What is the cheapest craft to make and sell?

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

Step 1: Decide if the Business Is Right for You

Pros and cons.

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

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

Craft industry trends

Industry size and growth.

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

Trends and challenges

Trends in the craft industry include:

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

Some challenges also face the industry including:

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

How much does it cost to start a craft business?

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

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

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

How much can you earn from a craft business?

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

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

What barriers to entry are there?

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

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

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Step 2: hone your idea.

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

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

Why? Identify an opportunity

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

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

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

What? Determine what products you’ll craft

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

How much should you charge for crafts?

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

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

Who? Identify your target market

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

Where? Choose your business premises

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

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

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

Step 3: Brainstorm a Craft Business Name

Here are some ideas for brainstorming your business name:

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

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

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

Find a Domain

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

Step 4: Create a Craft Business Plan

Here are the key components of a business plan:

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

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

Step 5: Register Your Business

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

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

Choose where to register your company

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

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

Choose your business structure

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

Here are the main options:

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

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

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

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

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

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

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

Step 7: Fund your Business

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

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

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

Step 8: Apply for Business Licenses and Permits

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

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

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

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

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

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

Step 9: Open a Business Bank Account

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

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

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

Step 10: Get Business Insurance

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

Here are some types of insurance to consider:

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

Step 11: Prepare to Launch

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

Essential software and tools

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

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

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

Develop your website

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

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

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

Here are some powerful marketing strategies for your future business:

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

Focus on USPs

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

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

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

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

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

Step 12: Build Your Team

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

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

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

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

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

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

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

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

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

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

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

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

What Do I Need to Start a Craft Business?

1. identify a gap in the market.

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

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

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

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

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

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

2. Get to Know Your Audience Better

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

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

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

When researching your audience, think about their:

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

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

3. Create a Business Plan

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

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

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

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

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

4. Get Crafting

  Now it’s time to have some fun! 

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

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

5. Find a Manufacturer or Supplier

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

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

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

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

6. Develop Your Brand

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

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

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

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

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

7. Fulfill Your Legal and Logistics Requirements

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

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

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

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

8. Build Your Online Craft Store

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

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

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

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

Some of the most important points to consider include:

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

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

9. Start Marketing Your Crafts

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

For instance:

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

Online Craft Store Examples

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

1. Artisaire

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

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

2. The Honeybunch Shop

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

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

3. Cedar and Sail  

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

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

Time to Get Crafty!

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

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

Summary: How to Start a Craft Business in 2021

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

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

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

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You have the skills and the style. You can craft like a professional and you want to get your creations in front of as many eyes as possible. What else does it take to start a craft business?

Well, there are a few things. But with a little creativity and elbow grease, it is possible to turn your passion into a full-fledged business.

10-step checklist for starting a craft business

Before you fire up your hot glue gun, you’ll want to consider these steps in order to learn how to start a craft business. These steps will help keep you on track and make sure that you don’t forget the important to-dos that can help you find success.

Step 1: Identify your niche.

As a creative, you know that there is a world of possibilities out there. Your crafting skills can likely translate to a lot of different products, but when starting a crafting business, choosing a niche market is important. For example, you may want to focus on a singular product that you’ve already mastered, like candles. The more scents and colors the better, but it is still technically one type of product.

Similarly, you might choose a particular theme to apply to a variety of products like holiday decorations or stationery goods. Whatever path you choose to go down, start with a focused one. That way, you can limit the number of supplies you need, form a brand identity, and master your production process quickly.

When choosing which niche you will build your craft business around, it’s important to not only consider your skills and interests but also the market. Are there already five candle stores in your small town? If so, that might not be the right niche for you.

Conduct a thorough market analysis to scope out your competition and find where there are openings for your unique products, as well as make note of how current businesses operate, what they’re doing well, and how your business can do better.

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.

Step 2: Write a business plan.

If you like the process of crafting, you probably also enjoy planning. Just like you plan the perfect craft, you need to plan how to make your business succeed. And that's where writing your business plan comes in. A strong business plan includes several sections that will help keep your business on track, outline your plans for your craft business, and prove your value to any potential investors. Even if you’ve already launched a business, you’ll want to pause and create a solid craft business plan.

While a formal business plan may not technically be necessary for a new business selling homemade crafts, it will help you plan out parts of your business that you may not have completely thought through, such as market research or marketing and selling strategies. Market research is especially important because even if you're able to create beautiful craft items, you need to demonstrate that there is a market for them. Otherwise, you won't have a profitable business.

This being said, not only is a craft business plan a vital tool for any business owner, but it will also be necessary if you choose to seek out funding to help launch or grow your business.

To make the process easier and make sure you’re not missing any vital information, you might use a business plan template or invest in business plan software.

Step 3: Choose a business name.

While compiling your business plan, you will want to decide on a business name. Ideally, your business name will be catchy, easy to remember, describe the types of products your business will sell, and tell the story you want it to.

But most importantly, it needs to be available. Before officially settling on a name, check with your secretary of state’s website to see if your chosen business name is already in use.

A quick Google and trademark search will also help you cover your bases. Once your name is decided, you should also consider reserving your business domain name and social media handles to establish your brand.

Step 4: Select a business entity.

Your business plan will also force you to decide how you’ll structure your business. Whether you are a solo entrepreneur or have a trusty team at your disposal, you’ll need to decide on the legal structure of your business.

If you haven’t decided which business entity is best for your craft business, now is a great opportunity to choose. You may want to consider a sole proprietorship, general partnership, limited liability company (LLC), or corporation for your business structure.

Generally, if you're just starting your craft business, a sole proprietorship will be the most popular legal structure because its the simplest and easiest to set-up. The downside, however, is that you are personally liable for any debt your business incurs and you may be subjected to lawsuits if your products cause injury or harm to a client. As your business grows, you can think about transitioning to other legal structures, such as an LLC.

If you don’t know what structure your business should be, you may want to chat with a business attorney or tax expert about what's the right decision for your craft business. You may not want to spend the extra money consulting a professional, but your business structure will affect your taxes, risk level, and other important factors.

Once you’ve made the decision, you will need to register your craft business with the necessary federal and state agencies.

Step 5: Define your products and services.

Remember how you defined your niche earlier? Well, it’s time to get even more specific and outline the products or services your craft business will provide. If you're a new craft seller, you may want to begin selling smaller crafts, such as jewelry, mugs, stickers, etc., because you won't have to pay large fees to ship the products.

To help you better define what type of products you want to sell, consider answering the following questions:

What types of craft products inspire you?

What crafts do you have experience making?

How do these crafts fit into your niche?

What's the market demand for these products?

Where will be the best place to sell these crafts?

What will you charge?

Where will you purchase your supplies?

How much will supplies cost?

How much will production cost?

Do you still need to research or develop your product?

Once you've answered these questions and have a polished business plan, you can use it as a roadmap to take your craft business from a daydream to a successful reality.

Step 6: Get the proper licenses, permits, and insurance.

Are you ready to roll up your sleeves and do some paperwork? Even if it’s not your favorite activity, it is vital when learning how to start a craft business. You’ll need to make sure you have any required licenses, permits, and insurance to start your craft business legally.

After all, the last thing you want is to get hit with a major fine or encounter legal trouble once you finally get your craft business off the ground. Depending on your location, business structure, and type of business, the types of licensing you need will vary. You may even need multiple business licenses at the state, federal, and local levels. The SBA is a great resource to help you get started, and you should also check with your local chamber of commerce.

In particular, if you're starting your craft business from home, you'll want to look into home business licensing and restrictions, as well as online seller licensing if you'll be selling your crafts online.

Additionally, if you’re going to hire some employees to help with your craft business, you will also have to obtain an employer identification number (EIN). An EIN is required for tax purposes, among other things. Even if you don’t think you’ll hire an employee anytime soon, there are additional benefits of getting an EIN worth considering.

Finally, you’ll want to look into obtaining business insurance. This is never a bad idea ever, especially if you have employees. If you’ve hired any employees, you have to carry workers compensation, unemployment, and potentially disability insurance.

You may also need general liability and commercial property insurance. Permits and insurance are another reason you may want to meet with a business lawyer. Their professional advice could help protect your business against future complications with the law and ensure you meet all the requirements to start your craft business legally.

Step 7: Decide where to sell your crafts.

You know what you want to sell, but where are you going to sell your goods? A local arts and crafts fair or a farmers market may be a low-key way to test the waters and get customer feedback. Or you can start by selling your products in local boutiques and consignment shops before opening your own storefront.

Of course, you can always create an ecommerce website or sell on a digital marketplace such as:

Etsy (one of the best places on the web to sell crafts)

These platforms provide great exposure to craft businesses and make it easy for customers to find and purchase your products. But, keep in mind that digital marketplaces will charge you fees for using their platforms, which can add up over time.

Additionally, these marketplaces also have a lot of competition, so you'll have to devote significant time and effort to get your business to stand out. There are plenty of great ecommerce platforms for you to choose from, so do your research on which platform will best suit your needs and then you can start building the perfect website for your craft business.

Step 8: Find small business funding.

Now that you're planning to take your crafting to a larger scale, you may need help covering expenses. Of course, your business can start as small or big as you want it to.

But if you need help making your craft business a reality, you may want to pursue some small business funding options. Luckily, there are a variety of options available to you. And remember, what works for one craft business may not work for yours. Take your time to make this decision and trust your gut.

Business loans: New business owners may struggle to obtain some business loans , such as SBA loans, but if your craft business has been operating successfully for a few years, you might qualify for this type of funding.

Business lines of credit : This type of credit has more flexibility than a standard business loan. That’s because a business line of credit gives you a set amount of money that you can draw from when you need to cover the cost of business expenses.

Business credit cards: Consider applying for a business credit card if you’re a startup business owner with a lack of credit history or time spent in business. You may find a business credit card is a more accessible option. Not to mention, a 0% intro APR credit card is like having an interest-free loan, as long as you pay off your balance before the introductory offer is over and a variable APR sets in.

Equipment financing: If you need equipment to produce your crafts, such as sewing machines, you might want to consider equipment financing . For this type of financing, a lender will loan you money specifically to fund equipment purchases. The equipment will be the collateral for the loan, which is why it may be easier to qualify for this type of funding.

Startup funding: For brand-new businesses, check out startup funding options. You may qualify for an SBA microloan or a business grant . Crowdfunding is also a popular option these days for quick startup funding—especially for fun and creative product-based companies (like a craft business).

All of this being said, once you have funding, expenses, or income, it’s important to keep your personal and business expenses separate. You can do this by opening a business bank account.

You’ll want to consider either a business savings account or a business checking account . Generally, new businesses opt for a business checking account. More established businesses that have a lot of cash on hand are better served by a business savings account so they can earn interest on their balance.

Step 9: Order and organize your craft supplies.

The next step in learning how to start a craft business? Finding supplies.

When crafting was just a hobby, you were probably content with running down to your local craft store for supplies. While that is still an option, you may want to think bigger. Chances are you can find your supplies cheaper by buying them in bulk from a wholesale supplier.

Shopping around (most likely online) for supplies will help you find the best deals possible. But before you start shopping, you should calculate how much inventory you need to carry. Knowing exactly what type of supplies you need, and in what quantity, will make finding a supplier much easier.

Not to mention, this will be the best way to estimate the cost of your supplies. Don’t be afraid to ask other all-star crafters where they purchase their supplies—surely plenty of fellow entrepreneurs will be happy to share their insider tips.

Once your supplies are on the way, you’ll need a reliable inventory system that you can follow. The last thing you need is to run out of supplies right before a big order is placed. An easy way to get organized is by using an inventory management app. These apps will help you keep track of the comings and goings of your supplies.

LLC Formation

Step 10: Start marketing your wares.

At this point, you've almost made it through our checklist for starting a craft business. Therefore, now that you have a business name and brand, a professional business website, and you know what products your craft business will sell, it’s time to start spreading the word so you can drum up a steady client base. A solid business marketing plan will make sure you’re taking a thorough approach to advertise your business.

As you develop this plan, you can think about how you can show off your goods in a fun and enticing way. If you haven’t already secured your social media handles, you'll want to do so now and start posting images of your unique crafts. Instagram and Facebook will be non-negotiables for your business marketing strategy.

Overall, when it comes to planning your marketing strategy and sales plan, consider two things—promotion and positioning. These two factors will help your marketing strategy succeed.

How can you successfully position your products to customers? By explaining what makes them special and valuable. Identifying your position is what your “sell” is. Once you have a sell, you can use that as the base of your promotional plan. The end goal of your promotional plan should be to get your products in front of as many potential customers as possible.

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

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The Ultimate Guide to Starting a Craft Business

Click a heading below to jump to that section of the guide.

What you need to know about starting a craft business Creating a business plan How long will staring a craft business take How much will it cost to start a craft business Understanding legalities and insurance for your craft business Marketing your craft business Where to sell your craft products How to promote your craft products

Starting a craft business can be an exciting and rewarding adventure. You can start completely from scratch and learn new skills with the potential outcome of creating a viable business. If you already have a crafty hobby or particularly enjoy a craft, then you can perfect these skills and start selling!

Our ultimate guide talks you through what you need to know before starting your craft business and how you can improve your craft and create your brand. We discuss the legal aspects of starting a craft business and help breakdown the costs that are often involved.

What you need to know about starting a craft business?

Starting a craft business yourself is not a simple process, but if you do your research and put the time and effort needed in, it can be made far easier!

Understanding the market and product demand is a key first step, as well as researching your potential customers and what will be, your current competition. The more knowledge you have behind you before you start, the better!

A fairly important step to make at the start of your craft business journey is understanding product demand. If you are starting from scratch and are unsure what products you’d like to make and sell, search for the latest trends and see what’s currently popular. Try to focus on what you’re interested in.

If you already know what products you’re going to sell, research is still important. Look into trends by season or holiday, so you have a potential plan on how to market and adapt your product according to sales figures. You could also tweak your products to fit the current demand, which will in turn help increase sales.

Without customers, you don’t have a business. Your customers are what drive your sales, your social media accounts and your brand identity. Pay close attention to what your potential customers want from you or from businesses similar to yours.

Following the latest trends will give you a better idea of what your customers want, especially when it comes to colour, pattern and design. It could be useful to search for products similar to yours and see what questions are being asked about them. This will provide insight into what your potential customers will be looking for and how you can cater to their needs.

Competition

Researching your competition is a good strategy that helps you understand what you could be doing better for your business. Keep track of businesses of a similar brand to yours and those who sell similar products.

Following their social media pages can provide useful insight into how they run their business and what works for them. Some businesses may be using a new product to help them in their craft, such as a physical tool or online software. That product could possibly be useful to you! Seeing what other small businesses use to help them craft is a great way to gain ideas for your own business and to enhance your skills.

Remember, researching your competitors is not to be used to copy ideas, but to merely keep an eye on what they are up to and what strategies are working for them.

Creating a business plan

A hugely formal business plan may not be necessary when starting a small craft business, but it is a great way to plan out your business strategies and create yourself a clear pathway. There are plenty of tools and templates online that can help you write an effective business plan- utilize these to ensure that you have a plan that can keep your business on track.

Having a business plan from the beginning not only helps you to organize your business better, but it also serves as a great document to outline your business to future investors or other involved parties.

A basic business plan should include:

• A detailed summary of your business, products/services and brand
• Target market and analysis
• Financial plan
• Future projections

You should refer back to your business plan for guidance when starting and running your craft business. Also, look into updating your business plan in the future when your company has changed and expanded.

How long will starting a craft business take?

This can vary massively. You have to factor in how long it takes you to make your products and whether, due to the nature of your goods, you can create surplus stock or have to create on-demand. If your products are reproducible, you may be set up quicker than someone who’s products are one-of-a-kind.

You shouldn’t feel pressure to have your craft business set up in a certain amount of time- focusing on making quality products is more important.

Allocate yourself time to create products, market and promote them and eventually ship them once you’ve made a sale. The only time limits you should stick to, are any times you have informed your customers of regarding product creation and shipping.

How long will it take before I start making a profit?

Again, this is dependent on many factors. Some of those factors include:

• How quickly you can make products
• How quickly you can sell products
• How many products you sell
• The price of your products compared to the price of materials

It is better to prepare for not making a profit for a while, than be caught out of pocket. You never know when your craft business will take off- take necessary precautions to ensure that you don’t go into any debt, but trust in yourself and your craft. Value your items fairly and don’t buy what you can’t afford- you can’t guarantee sales.

How much will it cost to start a craft business?

Here we break down some of the costs that are typically associated with starting a craft business and explain how these elements can be crucial to your success.

Insurance is an important factor to consider when starting a craft business. There are many incidents that could occur, even for a small business, that could be seriously financially damaging.

A few problems that a small business may run into include:

• Stock damage
• Equipment damage
• Injury or damage caused as a result of your product

These are problems that could be fatal to a new craft business. It is necessary to look into the differing insurance types to see what fits your business best.

CraftCover offers various types of insurance with prices that suit both you and your business. If you are wanting your craft business to grow, there will be added responsibilities that would be better protected by insurance.

Types of craft insurance:

• Public Liability Insurance
• Product Liability Insurance
• Craft Fair Insurance
• Craft Show Insurance
• Craft Stall Insurance
• Arts & Crafts Insurance
• Demonstration and Tuition

Each of these types of insurance cover different aspects of your craft business. If you are considering craft fairs and shows, you are usually required to have Public Liability Insurance before you can take part. Arts & Craft insurance can also be tailored to your specific craft.

Do I need insurance if I am only selling online?

Although you may not be attending craft events just yet, having public and product liability insurance is still essential to your small business. Your products affecting your customers can still cause a legal, public dispute and damages to your stock at home may not always be covered by home insurance. You may also want to cover your computer that enables you to sell online.

CraftCover can help you choose the right insurance plan for your business. Contact us now for further help. Materials

Buying materials for your crafts requires more thought than often allocated. You may be considering having a stock room with enough materials to cover an influx of sales. This may be an expense that you are not ready for- having minimal stock whilst starting a craft business is both acceptable and sensible. Keeping track of your average sales is a good way to understand what stock levels you may need.

Once your business shows an increase in sales, expanding your stock is helpful in ensuring that your products are always available to customers. This can be done easily through bulk buying the necessary craft materials that you require for your products. It usually works out cheaper to bulk buy as long as your sales reflect, or will reflect in the near future, this decision.

If you are just starting out in your craft business, then the chances are you will be based at home. This is a cost-effective approach you can take when you are beginning to create your brand. Once you are making a healthy profit, you may consider renting an office/work space, warehouse space or even renting specialist equipment that you can go and use. This is a large investment and should only be considered once you are sure that you can afford it.

In the meantime, whilst based at home, making an effective work space is key to improving productivity and a healthy work-life balance. Try to separate your craft work from your rest spaces, so that you can alternate between the two easily. Increased focus will result in you producing higher quality products.

Profit Margins

The price of your items could be the deciding factor in whether you make a sale, so you need to think carefully about how much you are going to charge. You should try to avoid extortionate prices but also shouldn’t sacrifice the quality of your crafts so that you can sell them cheaper.

Researching businesses that sell similar crafts to your own will help you to understand what customers are willing to pay. You could even conduct your own market research to gauge product prices. Don’t worry if you don’t get this right straight away, you can always adjust your prices once you are up and running.

Understanding shipping costs massively depends on the product you are selling. Factors that need to be included when deciding shipping costs include:

• Size of your product, therefore parcel size
• Weight of your product, therefore parcel weight
• Materials and their breakability
• Shipping location (locally and/or internationally)
• Shipping speed

These factors will each alter the price of shipping costs. You will need to take an average for each point and use those combined average parcel specifications, to calculate the right price to offer for shipping.

Alternatively, you can offer shipping that’s tailored to each order, making it easier to charge the correct price.

Understanding the legalities of starting a craft business

Figures from the Royal Bank of Scotland suggest that 1 in 5 adults in the UK are ‘hidden entrepreneurs’. This term applies to anyone that earns an extra income in their spare time, which includes selling your handmade crafts . Any exchange, whereby you receive money for your products or services, should be declared to HM Revenue.

If you have realised that your business should be paying tax, you need to give HMRC your income details as soon as possible. By voluntarily declaring your income you will still have to pay the tax that is owed, but fines will likely be reduced. To let HM Revenue know about your second income, you can fill out this online notification form.

Planning for the future of your craft business

Registering as a sole trader:

• Tell HM Revenue in advance of you starting your business
• Fill out a Self-Assessment Tax Return Form with your income details
• You will be personally liable for any problems or losses that affect your business in the future (hence why insurance is necessary)
• Cheaper in the short term

Registering as a company:

• Register with HMRC who will offer some protection – Offers structure in regards to responsibilities and ownership.
• More complex and requires more paperwork

No matter how small your business is, branding is a crucial element to success. Creating that brand identity for your handmade products can be one of the most successful marketing assets. What do I call my craft business?

Think about why you want to start your business, who inspired you and how you are going to do it. A lot of brand names have deep rooted meanings related to their backgrounds or their specific products.

Before finalising your chosen name, it may be helpful to see if it has been taken, or not, online by using a name checking website such as www.namechk.com. Remember, the name you choose doesn’t have a lot of meaning until you give it a meaning and visual identity.

The design element of your brand is a hugely important factor when starting a craft business. Your branding is one of the first things a customer sees when looking at your social media pages, website or craft stall; alongside your products. Getting this right from the beginning will benefit your business greatly when you start selling.

Your logo will determine your customer’s initial reaction to your brand, so it is worth taking time out to create your ideal logo. Research your favourite brands and think about why you like them.

Also, think about how your logo will appear in situ, for example, what it will look like on price tags. You can design a logo yourself if you are confident enough- alternatively, there are many small brands and designers out there who you can commission.

Tone of voice

Do your products portray a cheeky or joking personality, or are they quite formal and sensible? Make sure the brand reflects the products. Remember, your brand voice isn’t always your own voice.

Tone of voice can also be enhanced by fonts and colours. If you’re innovative, maybe an edgy, sans serif font might work best. If you’re a happy, chirpy type of brand, think bold, bright colours.

One thing that many craft business owners overlook is just how important it is to take professional photos of products. You need to have images that capture visitors and give them a reason to purchase from you. You could hire a photographer or take pictures yourself using a high quality camera and good lighting.

All of that hard work into developing your brand’s identity would go to waste, should you not use it consistently. Be sure to follow strict guidelines so that you portray the same image on websites and business cards as to what is used on the business’s social media.

Where will I sell my products?

There are many places where you can sell your handmade goods- choosing the right places is an important factor to consider for your business. Selling your products can be done successfully both in-person and online.

Exhibiting your crafts

Craft fairs and shows are a great way to sell products and promote your brand. There are usually great exposure opportunities and chances to be invited to other, more exclusive craft events. If you are confident in your craft, have an established brand and the necessary insurance, you are ready to start exhibiting!

There are plenty of sites that notify you of upcoming craft events. Take note of all the events you would like to attend in good time, and look into their application processes for participating.

Check out our quick tips on exhibiting your crafts here!

Selling your crafts online

Selling online not only gives you the chance to sell to people all over the world, but is also a cost effective way of marketing your company. It’s important to check that your insurance policy provides cover for selling into foreign countries, particularly the US and Canada.

If you choose to sell products on your own website, you will need to have one that not only looks good, but is also functional for users. This means ensuring that your customers can find what they want on the website with minimum hassle.

There are a variety of sites that can help you sell your products. These fall into different categories:

Your own pages such as a website, a Facebook page or an Instagram page. These pages aren’t specifically for selling, but you alter them to suit your business. These are the pages that you can typically get most creative with, and have most freedom with in regards to content.

Online Marketplaces

These are sites or apps whereby you create an account for your business and upload your items ready to sell. Marketplaces such as Etsy, Folksy, Ebay, Depop, Facebook Marketplace and Amazon Handmade are all free to list on- though some take a percentage of your sales.

These options are great starting points for small businesses as they are easy to set up and maintain, and are popular sites where you could generate lots of sales.

Print-on-demand Marketplaces

These marketplaces are slightly different to the ones listed above. Not every craft will work on these sites. Sites like Redbubble, Zazzle and Amazon Marketplace take your designs and print them on the customers desired product (such as t-shirts, posters or mugs).

This works well for designers, as there is little to no work to be done once the design is created and uploaded.

How do I promote my products?

Promoting your own products is crucial to the success of your small craft business. When your brand name isn’t widely known (yet!), it can be difficult to be seen over larger companies. Promoting your products in-person and online through many different formats will help to spread the word about your products.

There are a few ways in which you can do this:

Establishes you as a reputable brand and allows you to sell away from third-party sites. Setting up a website is not always that simple however, and can require help from a professional. You may want to look into this once you feel as though your business is more established.

A wonderful tool that promotes your brand and allows you to express your feelings and opinions on crafting. If you have the time for it, starting a blog can be simple and effective. You can promote your goods, promote other craft businesses you like and offer tips to other crafters. Blogs may not generate lots of sales but they can establish a loyal customer base and can potentially get picked up by larger bloggers or journalists.

There are plenty of online guides that can help you set up an email list. If you send follow-up emails to your customers after a purchase, or send those customers future emails regarding your business, offers you have or events you are attending, you can potentially find that many of these customers return. The added personalisation is often favourable to customers, especially when buying from a small brand.

Not all of these elements are necessary or suitable for your business. You need to decide what will work best for you, and go for it!

Utilizing social media

Social media is a vital source of communication between you and your customers. Billions of people use social media each day, which is why more and more businesses are utilising it as a marketing tool.

Your following won’t grow over night and you will have to put time into making social media work for your business, but it is definitely worthwhile for any craft business that wants to maximise their sales.

With around 1.35 billion monthly active users, Facebook is great for showing off your products, linking them to your website and getting involved with ‘Facebook Groups’, which are, in essence, communities. There’s a lot to explore on Facebook, including targeted advertising options at an additional fee.

Twitter should be kept quite chatty and requires the most amount of posts per day in order to get interaction. However, it’s a great site to see what your competitors are up to and gain insight into how you can appeal to your target audience.

Pinterest is great for sharing tips and inspiration with the occasional product image- just be sure to use your product selling platform’s link when uploading images.

Instagram is good for humanising your brand. Topics such as ‘behind the scenes’ and close-ups of products tend to go down a treat with audiences on Instagram. It’s worth spending time typing out hashtags in the description to allow people to find your pictures and increase your following.

Get your craft business started!

Now you should have all the knowledge, skills and support to start your own craft business. Be brave, have faith in your products and abilities and get started! We’d love to hear all about your business and how you are getting on, so let us know!

If you would like some extra support in your new craft business venture, take a look at our Business Advice section where we provide guidance relating to craft businesses, insurance and products. We also have a business news section that could reveal important information to you about the craft business industry.

If you are looking for support for your craft business, Craft Cover provides specialist insurance for handmade businesses throughout the UK. If you want to ensure your goods from theft, loss and damage, we can help!

Please call 0345 463 3003 or email [email protected] to speak to one of our friendly experts.

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How to Start a Handmade Craft Business

• Time to read: 20 min.

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

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

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

Understanding the Craft Market

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

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

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

Identify Your Unique Crafts

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

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

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

Writing a Handmade Craft Business Plan

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

Follow these detailed steps to create your business plan:

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

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

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

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

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

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

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

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

Building a Realistic Product Pricing Strategy

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

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

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

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

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

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

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

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

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

Legal Aspects to Consider

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

Here are some key legal aspects you should consider:

Permits and Licenses

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

Liability Protection

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

Tax Requirements

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

Labeling Requirements

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

Copyright and Intellectual Property

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

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

Choosing Your Handmade Craft Business Name

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

Step 1: Brainstorm Ideas

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

Step 2: Combine and Play with Words

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

Step 3: Keep It Simple

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

Step 4: Reflect Your Craft

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

Step 5: Check for Uniqueness

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

Step 6: Get Feedback

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

Step 7: Legal Registration

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

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

Crafting Your Digital Storefront

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

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

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

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

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

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

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

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

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

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

Elevating Your Craft Business with SEO

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

On-Page SEO

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

Off-Page SEO

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

Social Signals

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

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

Social Media and Promoting Your Craft Business

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

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

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

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

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

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

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

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

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

Selling Crafts on Online Marketplaces

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

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

Amazon Handmade

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

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

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

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

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

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

Building a Strong Brand

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

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

Mission, Vision, and Values

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

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

Aesthetics and Visual Identity

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

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

Packaging as a Brand Extension

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

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

Customer Loyalty and Differentiation

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

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

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

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

Customer Service in Your Craft Business

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

Consider these essential practices:

Responsive Communication

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

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

Issue Resolution

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

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

Word-of-Mouth Power

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

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

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

Packaging and Shipping Your Products

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

Thoughtful Packaging

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

Shipping Efficiency

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

Shipping Costs and Pricing

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

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

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

Prioritizing Self-Care

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

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

Rest and Relaxation

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

Maintaining Connections

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

Pursuing Hobbies and Interests

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

Wellbeing and Creativity

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

Embracing Innovation and Staying Relevant

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

Keeping Up with Trends

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

Exploring New Techniques

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

Lifelong Learning

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

Taking Calculated Risks

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

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

Frequently Asked Questions

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

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

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

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

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

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

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

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8 Simple Steps How to Start a Craft Business

Creators of custom hats and other handmade accessories have now found a ready market in millennials looking for unique items to round out wardrobes and make a personal style statement.

Wise Business Plans is offering design entrepreneurs the quality business plan for handmade crafts and services necessary to garner funding from investors and banking institutions, map a path for long-term goals solutions, and boost earnings.

How to Start a Craft Business

Often, hobbies become businesses. If you’ve ever thought about selling your crafts or turning your love of crafting into a business, here are some things you need to know about starting a craft business.

1. Study the Market Demand

To start a craft business, make sure there is a demand. Will people love your craft as a gift? Will people buy it?

The following are two ways to research a craft business. Attend a craft show or Browse online marketplaces such as Etsy and Handmade at Amazon.

Find out what’s already available. See if your products are already marketed (there’s probably demand), but make sure there aren’t a gazillion sellers selling the same items (too much competition).

Recommended Resources: Find out the 30 best gift ideas for entrepreneurs .

2. Write a Business Plan for Handmade Crafts

Crafting and planning go hand in hand. Your business should be planned in the same way that you plan your perfect craft. To do this, you need a business plan .

Having a business plan for handmade crafts is a great way to stay on track and plan your craft business, as well as prove you are worth the investment to any potential investors. You should still create a firm craft business plan even if you’ve already started your company.

Furthermore, a craft business plan is not only crucial for any business owner but also if you decide to seek funding to launch or expand your business.

Do You Need a Craft Business Plan?

Here’s the good news: you can minimize the time it takes to write a business plan by hiring wise business plans who have over a decade of experience writing business plans, spanning over 400 industries. Hire a business plan writer now!

3. Decide Where You Will Sell Your Crafts

Your goods are ready to sell, but where will you sell them? Local arts and crafts fairs and farmers’ markets are great ways to gauge customer interest.

You can also take your products to local boutiques and consignment shops before opening a store. There’s also always the option to create an eCommerce website or sell on a marketplace, such as:

• Etsy (the best online craft market)

The platforms help craft businesses reach a large audience and make it easy for customers to buy products. The flip side of this is that digital marketplaces may charge fees for using their platforms, which can add up over time.

4. Use Quality Materials

Crafting for fun is different from making products. You’ll need many materials from a reliable source. You can get discounts from brands like Darice and Warehouse Craft Supplies.

At first, you may want to visit a retail craft store until your bulk supply purchases can be justified. Make sure you know how much your materials will cost.

5. Choose a Name with Strong Brand Potential

Choose a business name that appeals to buyers and communicates what you sell. Don’t be too obscure. Choose something with meaning and strong brand potential — catchy is good. Make sure the name is available. A business attorney can guide you through the legal process.

6. Choose a Business Entity

You must also decide how your business will be structured in your Business Plan for Handmade Crafts. It is imperative to decide the legal structure of your business, whether you are a solo entrepreneur or have a team behind you.

Choosing the right entity for your craft business can be a challenge if you haven’t decided yet. For your business structure, you might consider a sole proprietorship , general partnership, limited liability company (LLC) , or corporation.

Need to Register a Business Entity?

Registered agents at Wise Business Plans offer you a wide range of business formation services to make it simple for you to incorporate a business and allow you to focus on other important tasks.

Register Your Craft with Our Business Formation Services

7. Find Funding for Small Businesses

Taking your crafts to a larger scale may mean you need financial assistance. Small or large, your business is up to you. However, if you struggle to raise the funds you need to start your business, you might want to consider a small business loan.

Today, there are many choices available. Keep in mind that what works for one craft business may not necessarily work for yours.

• Business loans: A new business owner may have difficulty obtaining certain loans, such as SBA loans, but if you’ve run your craft business for a while, you might be eligible for secured loans.
• Business lines of credit: It is more flexible than a standard business loan. A business line of credit gives you a set amount of money you can use to cover business expenses.
• Business credit cards: Those who are just starting out or who have little business experience should consider getting a business credit card. This could be a more accessible option for you.
• Equipment financing: Consider equipment financing if you need equipment to produce your crafts, such as sewing machines. This type of financing involves a lender lending you money exclusively for equipment purchases. This type of loan will have collateral, so it may be easier to qualify.
• Startup funding: Start-up funding is an option for new businesses. SBA microloans and business grants may be available to you. Today, crowdfunding plays a more important role in startup funding , especially for companies with fun products (like craft businesses).

After you have funding, expenses, or income, it is important to keep your personal and business expenses separate. Open a business bank account to do this.

Funding is a Problem for You?

8. get the right permits, licenses, and insurance.

Are you ready to get your hands dirty and do some paperwork? To start your craft business legally, you will need the necessary licenses, permits , and insurance.

License requirements vary by location, business structure , and type of business. There could even be multiple license requirements at the federal, state, and local levels.

When starting a craft business from home, you’ll need to look into home business licensing and restrictions and online seller licensing if your business involves selling crafts online.

If you plan to hire some employees to help with your craft business, you will also need an employer identification number (EIN) . Among other things, you need an EIN for tax purposes. Although you don’t think you’ll hire workers anytime soon, getting an EIN offers other benefits that are worth considering.

Last but not least, you should obtain business insurance. This is always a good idea, especially if you have employees.

Do you need a Business License for Craft Business?

Wise business plans have eased the process to obtain a business license for craft, which is generally needed to operate a craft business.

Let Wise Help you to Get your Business License for Craft

Business Plan For Handmade Crafts by Wise Business Plans

“Most people enjoy having a few one-of-a-kind items in their wardrobe and being able to corroborate on the details of a special hat or accessory while it is being created,” said Joseph Ferriolo, Director of Wise Business Plans.

“At Wise, when crafting a business plan for handmade crafts , we consult with the client every step of the way to make sure that all details are correct and the interests and unique ideas of that client are included.”

SBA Business Plan

Wise Business Plans specializes in helping small businesses present an SBA plan to raise capital, define specific business goals, and guide owners in meeting market demands, including the tools needed to manage a thriving business. Each unique millinery business plan  is offered at an affordable price, with an option for a free revision.

Business Plan For Handmade Items

“Partnering with Wise Business Plans to create a business plan for handmade items that leads to sustained future profits and ensures a quality long-term business life can allow millinery entrepreneurs to relax and enjoy the creative side of their business,” said Ferriolo.

Looking for business plan samples? You can use our sample business plans to create a plan that looks just as good as our real-world business plan examples .

Wise Business PlansWise Business Plans (www.wisebusinessplans.com), staffed with professional MBA Business Plan writers , researchers, and financial experts, is a trusted partner for businesses across a broad spectrum of products and services.

Our mission is to empower our clients to make the best possible business decisions, boost company performance and facilitate their funding success by laying the groundwork for strong businesses that excite, inspire and retain talented and exceptional employees.

Other Major Business Services for Craft Business

Do you want to start a craft business? As a client of Wise Business Plans, you’ll receive both a quick and easy guide for starting your craft business and assistance for every step along the way, including funding, registering or licensing a business entity, branding, and marketing.  Following are our main services

• Business Marketing
• Small business loan
• Business Credit Cards
• Logo Business Branding
• Business Entity

Wise business plans also offer a  net 30 account application . A Net-30 account allows you 30 days to pay the bill in full after you have purchased products. Managing your business finances is also easier with Net 30 accounts.  Apply for your net 30 business accounts now

Access our free business plan examples now!

Hire a business planner now.

To start a craft business, begin by identifying your niche and target market, creating a business plan, determining your pricing and costs, setting up an online presence, and developing a marketing strategy. It’s also essential to comply with any legal and licensing requirements.

While having a particular skill or talent in crafting can be advantageous, it’s not always necessary. You can start a craft business by exploring various crafts, learning new skills, or collaborating with artisans who possess the skills you need.

The capital required to start a craft business can vary depending on factors such as the type of craft, scale of operations, and your business goals. It’s important to create a budget and estimate the costs of materials, tools, marketing, and other expenses to determine your initial investment.

Selling crafts online offers a wider reach and potential customer base, while physical stores provide opportunities for local sales and direct interaction with customers. It’s beneficial to consider a multi-channel approach by having both an online presence and exploring local retail partnerships or craft markets.

To stand out from competitors, focus on creating unique and high-quality crafts, offering personalized or customized options, providing excellent customer service, and leveraging effective branding and marketing strategies. Find your unique selling proposition and showcase it to attract customers.

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Checklist for Starting a Craft Business

Starting a craft business requires more than making products and setting up at a craft show or on Etsy. But you likely know that since you’re checking out a startup checklist.

Success is more likely when you plan for it and take your business seriously.

Although you may not need to apply for a loan, hire employees, or fill a brick-and-mortar store with inventory, a small business still requires a lot of planning.

Use the free checklist as a general overview of the steps you’ll likely want to take to get started, and read over the article for more details and tips.

You can also use this checklist to audit a craft business that’s already up and running. It can help you find areas of improvement.

Click here to download a printable version of the checklist

Craft Startup Checklist

Business registration.

• Licenses & permits

Regulations

Business insurance, startup costs, financial goals.

• Product Pricing
• Define a target market by a commonality your customers share

Describe your ideal customer or brand ambassador

• Uncover your target market’s pleasures & stressors
• Learn what preconceived notions your target market has about your business
• Research competition and identify market gaps

Define benefits your business/products offer

• Explore your USP/UBP/UVP
• Develop a brand that will help your business/products stand out among the competition

Choose 1 product category to focus on

• Narrow down 3 – 5 products to focus on

Develop a signature style

Create a product collection to launch with, search engine optimization (seo), email marketing.

• Social Media
• Print marketing
• Press Releases

Etsy or other online marketplaces

• Craft Shows

Quarterly reviews & goal setting

High-value tasks, projects & events that boost sales.

*Find a detailed explanation of each checkpoint below

Legal Requirements

Registration, taxes, permits, regulations, etc. will vary depending on the type of business you set up, what you’re selling, where you’re operating your business, where you’re shipping products to, etc.

If you’d like a more detailed guideline, check out Laws for Selling Handmade .

You’ll be required to research the exact steps you must take for your business. Some areas you’ll want to investigate are:

Depending on the structure (e.g. sole proprietorship, LLC, corporation, etc.) and what you name it, you may need to register your business.

You may need to register for a tax identification number and research how to properly charge and remit taxes based on where your business is located and where it operates (e.g. if you ship products outside of your location).

Licenses and permits

Most businesses require some form of license or permit to operate legally. For example, you may need a business license or zoning permit to run your business out of your home.

Depending on what you sell, there may be regulations to follow, which are generally in place to protect the consumer. For example, if you’re selling cosmetics or children’s products you may have safety and labeling regulations to follow.

Depending on how your business is structured (e.g. sole proprietorship vs. an LLC), what you sell, and potential risks, you may want some form of business insurance.

Check out  Laws for Selling Handmade for more details

Numbers to Know

For a business to succeed, it must have profits. To help ensure your business profits, you’ll want to pay close attention to its numbers. Such as:

How much money do you need to spend to get your business up and running and when do you expect to break even? It’s important to consider costs outside of materials and to factor in your wage for any hours spent working on your business. You’ll find several examples of expenses a handmade business has here .

It’s a good idea to set a budget for each month and to adjust that budget based on profits. If you didn’t profit last month, you should find ways to cut costs next month. Don’t spend money without thinking about its return on investment (ROI) or continuously dip into your personal bank account to keep your business running. The Success Planner will help you take a closer look at the number side of your business and run it properly.

How much revenue do you hope to generate in a year and what must you sell each month to reach that goal? These numbers should influence the projects you plan and the tasks you schedule each week. The Success Planner will help you set realistic goals and plan projects that help you reach them.

Product pricing

Many crafters underprice their work and set prices based on what they think consumers will pay. You must price your products for profit. Here’s the right way to price handmade products and the pricing formula to avoid .

You must know how much you’re profiting with each sale and at the end of each month. First, you must work profits into your prices. But before you can do that, you must know what your expenses are. At the end of each month, when you add up your revenue, you must then deduct every dollar you spent on your business, included the hourly wage you want to pay yourself. What you’re left with are your profits.

For a business to stay afloat, to grow, and to succeed, it must have profits.

To determine this number, you need to track all of your expenses. Here are some examples of the costs a craft business will have when selling online or at craft shows.

Knowing how many hours you have to work on your business will help you set realistic goals, create an effective schedule, and price products properly to be sure you’re getting paid for the hours you work.

Consider how many hours you’ll have available each month to work on your business. Multiply those hours by the wage you’d like to be paid. Those wages should be factored into the prices you set, and you must sell enough product to cover your wages (and all expenses). I explain pricing in more detail here .

You should also be tracking your time. Small tasks such as running to the post office or packing for a craft show quickly add up.

You may plan to only work 20 hours/week on your business, but if you end up working 30, you want to be sure your business can pay you for those hours. If you constantly run over your allotted work hours, but your prices stay the same, it means you’re either not being paid for all of your time, or your profits decrease.

Keep track of any time you spend on your business and if you’re spending more than you planned for, you may need to raise your prices or cut back on non-essential/low-value tasks.

Who your Target Market is

Before you can start making products that are sure to sell, you must know who you’re making them for. Although most business owners define their target market by demographics, general information such as “women in their 30’s” isn’t enough to help you create a bestseller.

Imagine you’re given the task of buying a gift for someone. To buy something they’re going to love, you’d need to know who the gift is for, right?

And would “a woman in her 30’s” be enough information to help you pick the perfect gift for them?

But if I told you that woman in her 30’s loves yoga, you’d have a much easier time finding a gift she’s almost certain to love.

Think of your products as gifts and apply the same idea to your business. You need to define more than just demographics if you want information that will help you create products your target market is sure to love and will spend money on.

Some of the key steps to take are:

Determine a target market by a commonality your customers share

A target market is a group of people that share something in common. As mentioned, we don’t want that commonality to be based solely on demographics. Instead, consider what your customers might bond over.

This will help you find a profitable target market and uncover important information beyond demographics.

It’s unlikely you’d bond with someone simply because they’re the same gender, age, or have the same marital status as you. But if you love yoga, you might bond with others who also love yoga.

That commonality is what forms a good target market and is also something that drives purchasing. If you love yoga, you’re likely to purchase yoga-related products.

It also helps you find your potential customers.

For example, you can find people who love yoga: at yoga studios, reading yoga magazines & blogs, following yoga-focused social media accounts/groups/hashtags, etc.

Consider a commonality your customers would share.

I’ll teach you a secret method for finding profitable commonalities that will help you target the right market in How to Find a Goldmine of Customers .

Being able to imagine a specific person will help you create a business your target market can relate to and products they want to buy.

I’m not a fan of typical ideal customer Q&A templates that have you listing your ideal customer’s favorite ice cream flavor or TV show. Information you define should be based on what influences your target market to buy .

I also find it helps to think of your ideal customer as someone who best represents your entire customer base.

Every one of your customers will be slightly different, but if your target market elected one person to best represent what the entire group wants, who would that person be?

Once you have a clear picture of them, you can keep them in mind when making business decisions.

You can also think about that person from a business perspective and define a brand ambassador. They’re a person your target market will be attracted to because they want to be like them.

Consider big brands that have hired celebrity ambassadors (e.g. Britney Spears for Pepsi, Tiger Woods for Rolex, Jennifer Aniston for Aveeno). Aveeno sees their customers as down-to-earth, girl-next-door type of women who appreciate natural beauty; they’re trying to improve their skin, not cover it up with layers of makeup. Jennifer Aniston embodies that, so it makes her the perfect brand ambassador. People who love Jennifer Aniston (her looks, her style, her vibe, etc.), perk up and pay attention when they see her in an ad.

You obviously won’t be hiring a celebrity or spokesperson at this point. But it can help to imagine who your target market would be drawn to.

Let’s say Jennifer Aniston would be the perfect ambassador for my craft business selling jewelry. When creating products, writing text for product descriptions, developing a brand, etc. I would think about Jennifer Aniston and what she would wear, how she might describe the products, colors and styles she would be drawn to, etc.

Learn more in How to Find a Goldmine of Customers .

Uncover your target market’s pleasures & stressors

Once you know who your target market is, get to know what makes them happy and what stresses them out.

This is information that will help you create better products for them, write marketing messages and product descriptions that connect with them, and make it easier to sell to them (I teach you how to uncover this information in How to Find a Goldmine of Customers ).

Learn your target market’s preconceived notions about your business

Your target market already has expectations of your business. They’ve shopped with your competitors and are expecting the same standards or better from your business.

Think about it this way, if you visit a new fast-food restaurant, you’ll have certain expectations of it (e.g. fast service, cheap prices, good-tasting food, etc.). Those expectations are based on your experiences at other fast-food restaurants.

If the new fast-food restaurant doesn’t meet those basic standards, you may not become their customer (or a repeat customer).

The same idea applies to your business. You need to know where your target market has previously shopped for products like yours. Then you must meet or exceed the standards those competitors have provided to your target market.

>> How are your competitor’s products photographed?

>> What do their websites look like?

>> What type of customer service do they provide?

For help uncovering your target market’s preconceived notions and how to alter your business to meet or exceed them, check out How To Find a Goldmine of Customers .

Why your Business/Products are Different

Your craft business needs a “why”. Why people will buy from you when they have so many other businesses to choose from.

Your “why” is what sets your business apart from competitors and gives your target market a *valid reason to buy from you.

*Valid meaning, your “why” matters to your target market. Many craft business owners will claim “one-of-a-kind designs” or “handmade with love” or “unique materials” are what make their products stand out from competitors. However, those aren’t typically product features consumers shop for and are willing to pay double the price they might pay at a big box store.

Research competition & identify market gaps

Before you can determine how you’ll set your business apart, you must know what’s out there to differentiate from.

Look for big and small competitors. Although you may not be aiming to compete with a big chain, it’s likely your target market is aware of them and considering them as an option to buy from.

For example, if my craft business sells yoga accessories, I may not be trying to “compete” with Lululemon. However, people within my target market are aware of Lululemon and will compare my products to their’s before buying.

Get to know what your competitors are already offering your target market and any gaps they’re leaving that your business can fill.

For example, if I make and sell yoga mat bags, I would look at smaller business on Etsy, as well as big competitors, such as Lululemon. I might notice that most of my competitors are offering a one-strap style of bag and realize there’s a gap in the market for a backpack-style yoga mat bag.

It’s important to step into your customers’ shoes when thinking about benefits to highlight, and consider which ones they’ll be willing to spend money on.

You may think “original designs” is a benefit, but consider if consumers really care who designed the products or if there are product features that are more important to them.

For example, if you saw a top in a store and the salesperson said it was designed by a person you’ve never heard of, would that compel you to buy? Probably not. But if they told you the top is made with material that will never shrink or fade, that’s a benefit that may encourage you to buy.

You understand the benefits of the materials/ingredients/processes you use, but your customers may not. So be sure you’re highlighting benefits in terms they’ll understand.

For example, “serged seams” may not mean much to someone who doesn’t sew. However, “strong seams that won’t split” puts the benefit into terms a consumer immediately understands.

Highlighting too many benefits will overwhelm consumers and your message will be lost. Focus on one or two key benefits your target market will care most about. If you’ve chosen wisely, they will help your business stand apart from competitors.

Explore your USP, UBP, and UVP

Unique selling proposition (USP), unique buying proposition (UBP), and unique value proposition (UVP) are different ways to look at how your business is unique.

You might not need all three but they’re different angles you can explore to help you find something that makes your business/products stand out.

Here’s how I like to think of each:

• USP – (unique selling proposition) is step one in communicating how your business is unique. It should be immediately obvious to a shopper and be what drives/attracts consumers to your business/products. For example, if I’m selling a yoga mat backpack , instead of a regular over-the-shoulder-style bag, the backpack style is what immediately sets my yoga mat bags apart. Shoppers notice that at first glance and it makes my bags stand out among all other yoga bag mats. Other factors such as branding or packaging can also initially communicate a USP.
• UBP – (unique buying proposition) is information that your target market needs to hear to buy. It’s communicated to shoppers as they hear your sales pitch at a craft show, read a product description on Etsy, or read a product tag. For example, pointing out how a backpack-style yoga mat bag is more comfortable to wear, or is better for the back, or won’t move around when walking/running/biking is the type of information that encourages someone to buy .

*Which UBP I point out would depend on my target market or the segment within it I’m targeting. For example, if I’m targeting yogis who walk, run, or bike ride to yoga practice, I would point out how the bag will stay in place as they move.

• UVP – (unique value proposition) is the value customers gain after they make a purchase. The information may also be communicated through a sales pitch or product description, but it helps shoppers see the long-term value or the “bigger picture” value of buying from you. For example, someone buying a yoga mat backpack may not initially care about or buy because of: waterproof fabric, or machine washable fabric, or ethically sourced fabric. But those are elements that would be valuable to them long-term/after purchasing/bigger picture.

Your unique proposition(s) should be simple to understand and to communicate. You don’t have a lot of time to capture the attention of consumers. They must immediately understand why your business/products are unique and they must care about that unique factor if it’s going to help you make sales.

Develop a brand that will help your business and products stand out among the competition

A brand is another element that helps your business stand out and entices consumers to buy. A brand isn’t about a logo; it’s about a feeling consumers get from your business.

I can’t tell you how many skincare products I’ve purchased (that I didn’t need to) because of the packaging, wording, colors, etc.

Pura Botanicals is a perfect example of a skincare brand that makes me feel I need their products, simply because of branding. The packaging, colors of the creams and serums, scents, fonts, product names, photography, etc. all have a feminine, clean, and luxurious feel. I imagine I would have a spa-like experience every morning and night using their products and that I’ll have the most amazing skin if I use their products.

You can take an ordinary product and make it unique with branding.

It doesn’t have to be expensive. Just think about the feeling you want consumers to have when they see your products, visit your website, stop at your craft show booth, speak to you, etc.

Then consider the colors, fonts, words, tones, materials, and even tastes and smells that communicate that feeling. Keep those consistent across each element of your business.

What you’re Selling

Many crafters make products on the fly, based on what they feel inspired to create each day. While inspiration is important, if you want your products to sell, you must put your customers first.

Think about your target market during every step of creating products.

As a creative person, you may feel compelled to make a variety of items. After all, more options mean more opportunities for sales, right? Wrong.

Too much selection can actually harm sales. Check out  The Easiest Way to Increase Craft Business Sales by 27%

It can also make your business seem less professional. When selling handmade products, you want to come across as an expert. Selling everything from candles and soap to knitting and jewelry can make you come across as a Jack of all trades, master of none.

It’s typically best to stick to one category, or subcategory, of product. For example, focus on jewelry or knitting, but not both. This helps to create cohesion within your business, refine your craft, and keep profits high (switching between different materials, techniques, tools, etc. can slow production down, increase costs, and eat into your profits).

Narrow down 3 – 5 products to focus on

Even when you’ve limited your products to fit within one category/subcategory, it’s still important to limit the types of products you offer within that category/subcategory.

Again, too many types of products can have a harmful impact on sales, make your business appear less professional, and reduce your profits. Here’s how to know if you’re offering (or planning to offer) too many products) .

3 – 5 is a good range to start with when it comes to the types of products you offer within a category/subcategory.

For example, if I’m selling products under the category of jewelry, there are many types of products I could make: earrings, necklaces, bracelets, rings, toe rings, anklets, belly chains, etc. However, I would want to stick to 3 – 5 product types, especially to start.

I may start my business by offering earrings, necklaces, and bracelets. As my business grows, I can add more types of jewelry.

I would also want to limit the types of earrings, necklaces, and bracelets I offer. For example, I could make stud earrings, drop earrings, hoop earrings, huggie earrings, climbers, etc. But to start, I would want to focus on just a few styles.

A signature style will create cohesion among your products and will help boost sales.

If a product line isn’t cohesive, it creates confusion and makes customers question if a brand is right for them.

Imagine a teenager shopping in a clothing store and they find a top they love, but the store also sells clothes their mom would wear, as well as clothes their grandma would wear. Even though the teenager loves the top, they don’t want to shop in the same store as their grandma.

Cohesion strengthens a message and a brand and ensures shoppers who discover your business through one product, will love the rest of your products and be interested in buying more than one item.

If the teenager finds a top they love and the rest of the store is full of similar items, they’re likely to buy multiple items, or come back and buy again.

A signature style also helps create products that are exclusive to your business and require consumers to come to you to buy.

For example, Aveda products have a signature scent. If I want hair and body products that have that clean, slightly spicy, botanical scent, I need to buy from Aveda. And if I like the clean, earthy smell of one of their products, I’m going to like all of their products because they all incorporate aromatherapy and use flower and plant-based scents.

You can easily create a signature style by focusing on a few key product features and repeating them across all products. Be sure to keep your target market in mind and what they’ll be drawn to.

Examples of product features are:

• Style/feel (e.g. classic, bohemian, romantic, etc.)
• Materials/ingredients
• Techniques/processes (e.g. wire-wrapped, beadwork, stamped, etc.)
• Colors/scents/patterns

I could take 3 – 5 product features and implement them into each product. The fewer product features that are repeated, the clearer a signature style will be.

For example, let’s say I’m targeting people who practice yoga and I sell jewelry. The key elements I focus on may be:

• Mindful messages

Each piece I create would be either gold, silver, or rose gold, and be stamped with a mindful message (e.g. “be present”, “deep breath”, “namaste”, etc.). My business would become known for yoga-themed stamped metal jewelry.

Learn more about creating a signature style here .

A product collection should convey a story, message, or feeling, be cohesive, and encourage sales.

Story/Message/Feeling

A product collection might be a group of skincare products that tell the story of a relaxing spa day at home. Or, it may a collection of bags that share a back-to-school message . Or, a jewelry set may evoke the feeling of romance for Valentine’s Day.

Consider the time of year you’re launching your business, and what your target market will be shopping for. What’s the story, message, or feeling that might encourage them to buy?

The products you sell, especially within a collection, should all work together and have repeating elements.

For example:

• Jewelry – a product collection should include a necklace, earrings, and bracelet that can be worn together.
• Bath & Body – a bar of soap, lotion, and body spray within a product collection should have the same scent or benefit (e.g. moisturizing).
• Art – a collection should include pieces that can be hung together or displayed in the same room.
• Accessories – a product collection of knitted goods should offer mittens, scarves, and hats that can be worn together.
• Home goods – a product collection of pottery dishes should look like they all belong on the same table.

A business may have several product collections at any given time. 1 – 3 is a good average for how many product collections a small craft business should focus on.

When you’re launching a business, it’s perfectly fine to start with just one product collection. But depending on what you sell, you may want to have more than one. Don’t overwhelm yourself, or your customers, with too many though.

Encourage Sales

People within your target market will have varying budgets and comfort levels when it comes to how much they spend with your business. So products within a collection should keep those different types of shoppers in mind.

You also don’t want to put a limit on how much someone can spend with your business.

For example, if I love the smell of a handwash, I also want to be able to buy the hand cream and body lotion in the same scent. But if the business only offers handwash in that scent, I don’t have the opportunity to spend more money with them.

For these reasons, it’s important to consider having:

• Entry-level products ( learn more )
• Upsell products ( learn more )
• Add-on products ( learn more )

How you’ll Market

You need to know how you’ll reach your potential customers. Anyone can make a product, and it’s easy to make a sale once your product is in front of the right person. But getting your products in front of those people, and getting them to pay attention to your marketing message, is one of the most difficult parts of running a business.

Choosing a profitable target market is key ( How to Find a Goldmine of Customers will help you with that). With the right target market, you’ll have a good idea of where to find your potential customers. Then you need a plan for how to constantly market to them.

There are many marketing channels and methods you can implement. But you don’t want to try and do it all from the start. Choose a few that cater to your strengths, your target market, and that you’ll be able to keep up with.

You may consider the following marketing channels and methods you’ll use to promote your business/products:

If you plan to sell your products online, understanding and implementing search engine optimization techniques is a must.

Here are a couple of guides to get you started if you have an Etsy shop. But the techniques can also be applied to a website.

• Etsy SEO: 3 Easy Steps to Boost Traffic
• How to Increase Traffic to your Etsy Shop

Starting a newsletter is something many business owners put off. But email marketing is one of the most effective forms of marketing.

People who sign up for your newsletter will be much more engaged with your business than someone who follows you on Instagram. Not to mention, when you post something to social media, only a fraction of your followers will see your post.

On the other hand, when you send out an email, every single subscriber will receive that email.

The following will be helpful:

• How To Start a Newsletter for your Handmade Business (quick setup guide)
• 365+ Newsletter Ideas (for your handmade business)
• How to Start Send & Grow a Successful Newsletter

You can sign up for the Made Urban newsletter here .

Social media

Start with the social media platforms you personally use, enjoy, and are good at. If you prefer to talk, rather than write, YouTube may be a good option. If you love taking pictures and writing short captions, Instagram could be a good fit.

You also want to consider the social media platforms your target market uses. For example, a younger target market may be on TikTok more than they are Facebook. And someone interested in yoga may follow their influencers on Instagram, rather than Pinterest.

You can pay to get your business or products into search results, feeds, or platforms such as social media, Google, Etsy, blogs, etc.

If you find a platform that reaches the exact target market your products are perfect for, it may be worth spending money on advertising. Start small, and if you see results, invest more money with additional rounds of ads.

For example, let’s say I sell prenatal yoga accessories and I discover a prenatal yoga blog. Every reader of that blog is the right fit for my products, so I would look into the costs of placing an ad on the blog. Even though the readership of a general parenting blog may be much bigger, it’s hit or miss as to whether my ad will reach the right people.

Print marketing (business cards, flyers, signs)

If you mainly run your business offline (e.g. sell through crafts shows and shops), you may require printed marketing tools such as:

• Business cards (check out: What to Put on a Craft Business Card )
• Signs for craft shows
• Posters to put up around your city
• Lookbooks to market your products to local boutiques (check out: How To Create a Lookbook For Your Handmade Products )

Press releases

If your business has a unique angle, or is doing something unique (e.g. running a sale with all profits going towards recovery from a recent local disaster), the press may be interested in writing a story about your business.

Creating a press release and sending it to different media outlets, could help get your business featured. You may consider sending press releases to the following types of outlets:

• News stations

You can start a blog for your business and write articles for it, or, you may write articles to be posted on someone else’s blog.

The key is to write about topics your target market will search for, and that will allow you to mention your products so a blog post can lead to a sale.

For example, if I’m selling prenatal yoga accessories, I would explore the different topics my target market might search. E.g.:

• Prenatal yoga poses
• When to start prenatal yoga
• Prenatal yoga classes near me

I could write a blog post on each of those topics, which would help bring my ideal customer to me. When they type “when to start prenatal yoga”, the goal is for my article to appear near the top of search results. However, I could also share these articles through my newsletter.

When they’re reading each article, I could mention my products and link to them. This is an effective form of marketing, which I think of as the Trojan horse strategy (learn how to effectively use it: How To Use the Trojan Horse Strategy to Sell your Handmade Products ).

Where you’ll Sell your Products

Marketing should lead consumers to a sales channel. A sales channel is where consumers buy your products. There are several ways to sell your handmade products, but don’t try to do too much to start.

It’s also important to consider your target market and how they shop for your products. For example, if I sell clothing, shoppers likely want to try items on, so I may focus on getting into local boutiques. If I sell hard-to-ship items, craft shows may be a good option. And if I sell niche products, my shoppers are more likely to go online and type a specific term into Google, so a website or Etsy shop would be the best fit.

Some of the sales channels you may want to explore are:

Online handmade marketplaces make it cheap and easy to quickly set up an online shop. You may be interested in:

• Is Selling on Etsy Worth it?
• Where to Sell Handmade Online (Besides Etsy)

You may set up your own website if you’re more technically advanced and hope to grow your online presence. Websites can take months, if not years, to gain traction organically. But you’ll benefit from a website long-term. You have full control over a website, whereas Etsy can make changes to its platform at any time that can have a negative impact on your shop.

Craft shows

Events such as craft shows, festivals, and markets are a great way to grow your business locally. You’ll be face to face with your customers and can gather important information. When someone buys from you online, you don’t have the opportunity to ask them questions or to get a general idea of their demographics. At craft shows, you can observe as shoppers view your products for the first time and see what they’re drawn to, what they ignore, what they put down after seeing the price, etc.

You’ll find Make More Money at Craft Fairs helpful if you plan to dive into the craft show world.

If you’ve priced your products properly and have good profit margins, you may consider selling your products wholesale to retailers.

The downside is that you’ll be selling your products at lower prices than you would if you sold directly to consumers online or at craft shows. But the perk is, you can sell multiple items in one order, and you don’t have the costs of marketing and selling your products to consumers; the retailer takes care of that part.

Selling through consignment is a similar option.

You may be interested in:

• How To Create a Lookbook For Your Handmade Products
• Consignment vs. Wholesale (Which is Better?)
• What’s a Fair Consignment Percentage? (How To Negotiate an Increase)
• How to Attract Wholesale Orders at Craft Shows

When you’ll Schedule Tasks

If you want a successful craft business, you can’t wing it. You’ve got to make a plan you can follow throughout the year and ensure you’re not spending your limited time and money on tasks that don’t give you a return on investment.

It’s important to always look and work ahead. If you hope to get your spring product collection into stores, you must start planning and preparing it months in advance. Most retailers research and buy products at least one quarter in advance. Meaning, they buy spring products in winter. The same idea applies to craft shows; you must apply to and prepare for months in advance.

Take the time at the end of each month, and year, to review the previous month/year to get a clear understanding of effective marketing and sales channels, products that brought in the most revenue, and tasks that were worth your time and money.

In The Success Planner , I’ll teach you what to track so you have valuable information that will help you improve your business each month.

High-value tasks should take priority in your schedule. They’re ones that are more likely to give you a return on investment (ROI).

Meaning, if you spend an hour per day posting to Facebook, but no one clicks on your posts to visit your online shop, that task isn’t helping to generate any revenue. You’re not making a return on your time investment. So posting to Facebook should not take priority over tasks that do help generate revenue.

As I explain in The Success Planner , I like to break business tasks into 3 main areas, which should each have high-value tasks:

Many crafters spend the majority of their time creating, and will quickly post to social media and get an Etsy listing up when it comes to marketing and selling. To start, you should split your time evenly among the three areas, and then adjust as necessary.

If you don’t market your products, you can’t sell them. And if you don’t sell the products you create, creating will not give you a return on investment.

The more you uncover which tasks are high-value (which is done by calculating ROI, conversion rates, etc. I’ll teach you how in The Success Planner ), the more efficiently your business will run and the more successful it can be.

There will be some tasks that won’t help you make a sale but are necessary. For example, answering emails or submitting taxes won’t necessarily help you sell more product, but they’re tasks that are required when running a business. I consider these:

• Admin tasks

Although they may not be “high valued” (i.e. help generate revenue), they should make it onto your schedule as well.

It’s a good idea to look at your year and roughly schedule bigger projects and events that will give you a boost in revenue.

Think of a project as a bigger task that requires several steps to complete and will help drive sales.

Launching a new product line is an example of a project. You may plan a product launch for spring, summer, fall, and winter, which will give you a reason to market new and exciting products. It also gives shoppers a reason to buy. If you simply sell the same products year-round, there isn’t much incentive for consumers to come back month after month and check out what’s new.

Events such as craft shows also give you a boost in revenue. Research local craft shows and choose a few you’d like to participate in each quarter. If there’s a popular craft show that happens each November, you’ll want to note the application date in your schedule so you don’t miss it. And once you’re accepted, you’ll need to plan an inventory schedule to be sure you have enough stock prepared.

The Success Planner will help you set realistic (and important goals) for your business, and then create a realistic plan that makes reaching those goals inevitable.

I hope this checklist has helped you create a plan to launch your craft business. Or, has helped you audit your existing craft business to find areas of improvement 🙂

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

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

Related Posts

• How to Promote a Craft Show Last Minute
• How to Price a Quilt to Sell (the Correct Formula)
• The Top 7 Complaints from Craft Show Shoppers
• How to Sell Stock from Canceled Craft Shows

Wow! This checklist is an absolute goldmine. I started my own list, but you have gone over and above what I would have thought of.

Your checklist has saved me hours and hours of work. I love all your guides, which I follow religiously. Thank you, thank you, thank you.

Thanks so much Anne! I’m so glad you like it and will find it helpful! Thank you for all your support over the years 🙂 ~Erin

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

Updated:   January 25, 2024

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According to Business Research Insights , the global craft market could reach $74,457.88 million by 2031. Since it hit $44,120 million in 2021, the craft market is estimated to grow at a compound annual growth rate (CAGR) of 5.4%. This makes the arts and crafts market a lucrative option for new entrepreneurs.

Whether you want to sell your creations online or open up a small brick-and-mortar store, starting a craft business allows you to make money doing something you love. You get to set your schedule and be your boss. Plus, with the right strategies, you can build a brand that stands out from the competition and attracts a loyal following of customers.

In this article, you’ll learn step-by-step how to start a craft business. From choosing a business structure to marketing your products, we’ll cover everything you need to know to transform your handmade hobby into a successful venture.

1. Conduct Craft Market Research

Market research is crucial to learning how to start a craft business. It offers insight into successful craft business services, current trends, market saturation, and more. To build a realistic craft business plan, you’ll need to use primary and secondary research.

There are several factors driving growth in the craft industry:

• The rise of e-commerce and sites like Etsy have made it easier for crafters to find a broad customer base online.
• Social media enables crafters to market their products and build an audience organically.
• Consumers increasingly want unique, handmade, and customizable products with a story behind them. The DIY ethos has gained mainstream appeal.
• Sustainability and ethics matter more to buyers. Many prefer to support small, local artisans over mass retailers.

While the market is competitive, several opportunities exist for successful online craft business owners:

• Focusing on a niche style or product can help differentiate your brand.
• Offering virtual craft classes and workshops can create an additional revenue stream.
• Partnering with other local artists and makers can help cross-promote.
• Consider an e-commerce plus brick-and-mortar hybrid model to get the benefits of both.
• Using digital marketing and social media to tell the story behind your products and processes.

Starting a craft business today provides huge potential to tap into the growing demand for artisanal, handmade goods. With the right product, branding, and marketing strategies, craft entrepreneurs can build sustainable ventures that stand out in this thriving industry.

2. Analyze the Competition

Thoroughly analyzing the competition is crucial when starting any business, and craft ventures are no exception. Here are some tips on assessing competitors both in your local area and online.

For brick-and-mortar competitors, start by identifying other craft shops within a 15 to 20-mile radius. One way to better understand what it takes to create a successful online craft business is to learn about competitors.

Use these methods to better understand your competition.

• Visit their stores and take notes on their product selections, pricing, store layout, promotions, and customer service.
• Look at their social media and websites to see how they market themselves. This will give you an idea of what your potential customers are already buying locally.
• Evaluating online competitors can begin on marketplaces like Etsy and Amazon Handmade where you plan to sell.
• Look at top sellers in your product category and analyze listings with 50 reviews.
• Make notes on pricing, product photography, descriptions, and shop branding. Look at their production capabilities.
• Search for competitors selling through their websites. Look at their SEO, product offerings, website design, email marketing, and social media presence.
• Review their traffic sources, engagement levels, and conversion rates using tools like SimilarWeb and Google Analytics.

Compiling notes on competitors across all these channels will illuminate what is selling well. It also helps benchmark your capabilities and plan how to excel in areas like photography, branding, and customer service. Analyzing the competition is a key first step in crafting your business strategy.

3. Costs to Start a Craft Business

When starting a craft business, there are a variety of one-time start-up costs to consider before you can begin selling your products.

Start-up Costs

• Business Registration Fees – Expect to spend around $100-$800 to formally register your business as an LLC or corporation depending on your state. This includes paperwork and filing fees.
• Equipment – For crafting, this could include sewing machines, jewelry-making tools, kilns, printing equipment, etc. Expect to invest at least $500-$2,000 on the key equipment needed for your type of craft.
• Website – Developing a website to sell your products online will cost around $200-$1500 depending on complexity. This assumes a DIY site builder vs. hiring a web developer.
• Branding – Logo design, branding, and packaging design can cost $500-$2,000 if hiring professional help.
• Inventory – Initial inventory of materials and supplies to make enough products to open can cost anywhere from $1000-$5000 depending on your craft.
• Real Estate – The average cost of commercial real estate for a small retail space is $15-$30 per square foot per month. Plan for 500-1000 sq ft for around $750-$3000 per month.
• Insurance – General liability insurance typically costs $30-$150 per month depending on industry risk. Product liability insurance may also be required.
• Licenses & Permits – Local business licenses average $50-$500 per year. Seller’s permits for sales tax range from $10-$800 annually.

In addition to one-time start-up costs, online craft business owners also face a variety of ongoing monthly and annual expenses.

Ongoing Costs

• Rent – If in a retail space, rent of $750-$3000 per month. Even home-based businesses should factor in utility costs.
• Loan Repayment – Monthly repayments on small business loans, if secured, range from $100-$500 on average.
• Inventory Costs – Replenishing materials and supplies for production will be an ongoing cost, likely $200-$1000 per month depending on volume.
• Employee Wages – If hiring staff, wages plus payroll taxes and workers comp could cost $2,500+ per month per employee.
• Selling Fees – Marketplace fees like Etsy charge $0.20 per listing plus 3.5% of each sale. Budget 5-10% for total selling costs.
• Marketing – Budget for paid advertising and marketing costs like social media ads at about $300 per month early on.
• Transaction Fees – Credit card processing and other transaction fees add 1-3% per sale.
• Taxes – Federal and state quarterly income taxes, workers comp, unemployment insurance, etc. will need to be budgeted for.
• Shipping Supplies – Budget around $100-$300 monthly for shipping materials like boxes, tape, labels, etc.

Careful forecasting of both start-up and ongoing costs ensures crafting business owners are financially prepared for the investment required to establish and sustain their venture. Building out a detailed 12-to-month budget is highly recommended before launching.

4. Form a Legal Business Entity

When starting a craft business, one of the first legal decisions is choosing your business structure. To start a craft business legally, you must choose from a sole proprietorship, partnership, limited liability company (LLC), or corporation. The four main options each have pros and cons to weigh:

Sole Proprietorship

This is the simplest structure where you and the business are one entity. No formal registration is required beyond licenses.

• Pros: Easy and inexpensive to set up. You retain complete control and get all profits. Minimal paperwork.
• Cons: You are personally liable for all debts and obligations. No separate business identity. Difficult to raise investment capital. Limited options for taxes and growth.

Partnership

A partnership is formed when two or more people share ownership of a craft business. You can divide management duties, skills, and investment costs.

• Pros: Easy to establish with a partnership agreement. Shared capital, workload, and abilities.
• Cons: Partners are jointly and severally liable. Disagreements can dissolve the business. Profits are passed through to personal taxes.

Limited Liability Company (LLC)

An LLC combines aspects of partnerships and corporations. It limits personal liability and allows more flexibility for profits, losses, and operation.

• Pros: Liability protection for owners. Separate business identity. Ownership can be easily transferred. Less paperwork than a corporation.
• Cons: Requires more startup paperwork and fees than sole proprietorships. Profits directly pass through to your taxes.

Corporation

A corporation is a separate legal entity from its owners. Shareholders own stock rather than having direct ownership.operations

• Pros: Personal assets are shielded from corporate liabilities and debts. Additional options for funding through investors.
• Cons: Most complex and expensive entity to set up and maintain. Double taxation on profits unless organized as an S-corp. Significant legal paperwork.

5. Register Your Business For Taxes

One key legal task when starting a craft business is obtaining an Employer Identification Number, commonly known as an EIN. This unique identifier is used by the IRS to track tax obligations for business entities.

An EIN is required for any craft business structured as an LLC, partnership, or corporation. It also allows you to open business bank accounts. An EIN is needed even if you only plan to sell crafts online as a business owner.

Applying for an EIN is free and can be done entirely online via the IRS website .

The process only takes about 15 minutes. You will need to provide basic information about your business entity such as name, address, and ownership details.

To complete the EIN application:

• Go to the IRS EIN Assistant and select the option to “Apply Online Now”
• Choose your entity type and enter the legal name/address for your business
• Select “View Additional Types, Including Tax-Exempt and Governmental Organizations”
• Choose Sole Proprietor, Partnership, or Corporation based on your business structure
• Specify if you want the EIN for banking purposes and submit your contact details
• Review all entries to ensure accuracy before submitting the application

Once submitted, you will receive your EIN immediately. This number should be included on all tax paperwork and government forms related to your craft business.

You will also need to register with your state revenue department to obtain any required seller’s permits, sales tax IDs, and business licenses. These can be applied for on your state government’s website.

6. Setup Your Accounting

Proper accounting is crucial for craft businesses to track expenses, manage cash flow, and remain tax-compliant. With so many potential deductions for supplies, equipment, home office use, and more, having organized records will optimize your tax liability.

Accounting Software

Using small business accounting software like QuickBooks can automate the categorization of income and expenses when synced to your business bank accounts and credit cards. Features like invoicing, inventory management, and financial reporting save significant time. Expect costs of $10 to $50 per month.

Hire an Accountant

For optimal oversight, partnering with an accountant as your bookkeeper provides an extra layer of financial expertise. They can handle tasks like reconciling accounts, producing monthly profit and loss statements, and identifying potential write-offs. This ongoing service averages $100-$300 per month but ensures accuracy.

Open a Business Bank Account

Keeping business and personal finances completely separate is key. Have a dedicated business checking account and credit card solely for craft business purposes. This makes tracking deductible expenses simple while protecting your finances should the business struggle.

Apply for a Business Credit Card

Applying for a small business credit card also helps build credit history and provides flexibility in financing larger purchases. Limits are based on both personal and business credit scores. Have your EIN ready to include on the application.

7. Obtain Licenses and Permits

Before opening your craft business, it is crucial to ensure you have obtained all required local, state, and federal licenses and permits. Check with the U.S. Small Business Administration for federal requirements. The SBA also offers a local search tool for state and city permits.

One of the first permits you’ll need is a business license from your city or county government. These require completing an application and paying a small fee, typically under $100 annually. Business licenses demonstrate you have approval to operate within that jurisdiction.

If selling products in-person or online across state lines, you will also need a seller’s permit. This grants authority to collect sales tax from customers and remit to the state. Permit fees vary but expect $10 to $800 per year depending on location. Some states may combine this with a sales tax ID number.

For any business with a physical retail space, commercial zoning permits and occupancy permits will be required from your local zoning board. These confirm your business is allowed under current zoning rules and meets building codes for safety.

If producing food products, you must register with the U.S. Food and Drug Administration (FDA) which oversees safety regulations. There is no cost but you will need to comply with rules on packaging, labeling, and food handling. Specific certifications may be needed as well.

Businesses with employees also need both federal and state tax IDs to process payroll. State departments of labor can provide details on requirements. You may need to carry workers’ compensation insurance and unemployment insurance depending on state law.

8. Get Business Insurance

There are risks involved in turning crafting from just a hobby to a full-on crafts business. Obtaining adequate business insurance is highly recommended for craft ventures to mitigate risk. Policies protect against losses that could otherwise devastate your company.

General liability insurance covers third-party bodily injury, property damage, and legal defense costs if customers ever sue your business. Product liability protects against claims directly related to product defects or harm. For crafts, these policies average $30 to $150 per month.

Going without coverage can have severe consequences. A customer injured by an unsafe product could sue you for bankruptcy. A defective candle could cause a fire that destroys your entire inventory. You could face huge losses if a pipe breaks in your studio and ruins equipment.

To get insured, first, assess your risks and required coverage levels. Compare quotes from providers like Hiscox, The Hartford, and Travelers. Apply for general liability, product liability, property/casualty, and other relevant policies. Have your business registration, licenses, and financial details ready.

The application process includes:

• Selecting an insurance provider based on coverage, reputation, and premiums.
• Completing their small business insurance questionnaire in detail.
• Providing any supplementary documentation requested.
• Make your first premium payment to activate policies.
• Reviewing policy documents to ensure adequate protection.

With insurance secured, craft businesses gain peace of mind knowing they have a safety net against unexpected catastrophes that could otherwise sink their company.

9. Create an Office Space

Having a dedicated office space provides craft businesses room for essential tasks like packaging orders, managing inventory, and handling administration work. It also projects a professional image when meeting clients.

Home Office

Converting a spare room into a home office is cost-effective, with no rent needed beyond increased utility costs. It offers convenience and flexibility for crafters working solo. However, it can be distracting to balance professional and personal lives in one space.

Coworking Space

Coworking spaces like WeWork provide an affordable office environment by renting access to shared amenities and workspace. For $200 to $500 per month, you can gain a collaborative community and professional atmosphere without the cost of commercial real estate. It also accommodates growth.

Retail Shop

For crafters selling products locally, combining a small retail space and a back office area can be the ideal setup. Storefronts build visibility and walk-in traffic while allowing room for inventory and order fulfillment. Average retail rental rates range from $15 to $30 per square foot.

Commercial Office

Leasing dedicated office space in a business complex provides the most privacy and room for significant inventory or multiple employees. However, leases average $20 to $35 per square foot with additional buildout, utility, and maintenance costs. Only recommended once established.

10. Source Your Equipment

Craft entrepreneurs need reliable access to quality materials and equipment to produce their products. Equipment depends on the types of crafts you produce and how you sell/ship them.

Here are some options for sourcing these startup necessities:

Purchasing brand-new equipment from specialty retailers allows you to get precisely what you need while covered by warranties. Look for deals at stores like Michaels , Jo-Ann Fabrics , Blick Art Materials, and Woodcraft . Expect higher costs but longevity from new equipment.

Buying Used

Saving money by purchasing used equipment is common among crafters. Scout deals on Facebook Marketplace , Craigslist , eBay, and Nextdoor . Also check for used equipment at consignment stores, auctions, estate sales, and liquidation centers. Be prepared to repair or restore equipment.

Renting equipment on a short-term basis provides access without a large upfront investment. Many retailers offer equipment rentals for fees ranging from $25 to $150 per day. This allows you to test tools before purchasing. Renting extra equipment helps handle temporary production peaks as well.

Leasing essential equipment through dealerships or third-party leasing companies is a fixed monthly expense that can preserve capital. Typically 12 to 36-month terms with buyout options. Useful for large machinery, but confirm lease terms fit your needs first.

11. Establish Your Brand Assets

Developing a strong brand is crucial for craft businesses to stand out and attract loyal customers. Some key assets to focus on include:

Getting a Business Phone Number

A professional phone number establishes credibility and provides customers with an easy way to reach you. Cloud-based providers like RingCentral offer virtual phone services with vanity numbers, call routing, voicemail, and more for $20 to $100 per month.

Creating a Logo and Brand Assets

A polished logo and visual identity help craft businesses build memorability and recognition. Services like Looka makes logo design quick and affordable at $20 to $100.

Complement your logo with branded colors, fonts, patterns, and other elements that reinforce your visual style across marketing materials, packaging, etc. Maintain consistency for maximum impact.

Creating Business Cards and Signage

Business cards serve as convenient “leave-behinds” when networking, selling at fairs, or speaking with prospective wholesale partners. Order professional cards showcasing your logo, website, and contact info from printers like Vistaprint for as low as $10 for 500 cards.

Signage with your logo and branding helps drive traffic and sales. Window, sidewalk, and interior signs start around $50.

Purchasing a Domain Name

Securing a short, memorable .com domain builds your web presence. Check name availability with Namecheap and buy for $10 to $15/year. Incorporate your business name and keywords relevant to your craft.

Building a Website

A website establishes an online hub for your business and e-commerce shop. Options include DIY builders like Wix costing $5-$50 monthly, or hiring a web developer on Fiverr for $500 to $5,000 or more.

12. Join Associations and Groups

Joining relevant local organizations provides craft businesses with invaluable connections and resources.

Here are some options to consider:

Local Associations

Industry associations like the American Craft Council and local chapters offer networking, education, and marketing support. Joining grants access to trade shows, seminars, and membership directories to connect with fellow artists and makers. For example, the Texas Commission on the Arts . Membership fees vary but average $50 to $100 annually.

Local Meetups

Attending meetups and trade shows allows craftspeople to interact face-to-face with others in their community. Sites like Meetup make finding local events easy. Look for maker fairs, craft shows, studio tours, classes, and niche meetups to showcase work and gain insights from peers and buyers.

Facebook Groups

With over 1 billion users, Facebook hosts countless special interest groups relevant to crafters. Search for terms like “[City] Makers”, “Handmade Crafts”, or more specific interests to find communities. Larger groups like Small Craft Business Networking – USA and Handmade Craft & Business Network offer discussions and advice amongst thousands of fellow entrepreneurs.

13. How to Market a Craft Business

Implementing an effective marketing strategy is essential for craft businesses to gain visibility and grow their customer base.

Personal Network

To start, tap into your existing network and focus on delighting early customers. Offering discounts or free items in exchange for reviews, referrals, or social media posts can generate word-of-mouth buzz. For example, provide a 10% discount code for every new paying customer they refer.

Digital Marketing

• Run Google Ads with targeted keywords, location, and audience filters to promote your site, products, or grand opening to local searchers.
• Use Facebook and Instagram ads to share visually engaging posts that highlight your products and story. Target by interests like DIY, handmade, and specific crafts.
• Start a YouTube channel creating tutorials, product demos, and vlogs showing behind-the-scenes of your process and business.
• Write blog posts with SEO-optimized titles focused on your products and expertise. Include how-tos, gift guides, and inspirational ideas.
• Leverage Pinterest to curate eye-catching boards showcasing products. Link pins back to your site.
• Share exclusive offers and previews through email and text marketing providers like Mailchimp .

Traditional Marketing

• Design postcards and flyers to distribute at local shops, fairs, and community boards. Include a special offer.
• Take out affordable ads in local newspapers and magazines focused on arts, shopping, and events.
• See if you can donate a product or gift certificate to silent auctions at nearby fundraisers. Include promo materials.
• Partner with complementary local businesses for cross-promotions. Offer packages or joint events.
• Invest in billboards or radio spots on stations your target audience listens to if the budget allows. Tailor copy and offer to medium.
• Reach out to local art galleries that may be interested in showcasing your work during an event

Blending digital and traditional methods that feel authentic will maximize your reach as a craft business and nurture an engaged community around your products and brand. Test different ideas to see what resonates.

14. Focus on the Customer

Providing exceptional customer service is crucial for craft businesses to nurture loyalty and build a profitable business. When you make each buyer feel valued, they become powerful evangelists. Some ways to improve customer focus in your own craft business include:

• Include handwritten thank you notes with each order, which takes little effort but leaves a lasting impression.
• Offer timely responses to questions and customized service that shows you care.
• Include gifts like stickers or earrings with purchases over a certain amount.
• Follow up to see if they have any feedback on your products.
• Aim for quick shipping, responsiveness across communication channels, and constantly impressing customers with your service-oriented mindset.

Satisfied buyers are likely to leave glowing reviews, repurchase regularly, and recommend you to friends and on social media. This organic reach through word-of-mouth referrals is invaluable for craftspeople.

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Crafting a Business Plan for a Small Scale Craft Store: A Comprehensive Guide

By henry sheykin, get full bundle.

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Welcome to our blog post on how to write a business plan for a small-scale craft store! With the rising popularity of handmade and unique items, the craft industry continues to experience tremendous growth. According to recent statistics, the craft market in the US reached a value of $44 billion in 2020, a staggering increase of 52% from the previous year. As more and more people seek out one-of-a-kind products, now is the perfect time to start your own craft store and tap into this thriving market.

In order to successfully launch your craft store, it is crucial to have a well-developed business plan that outlines your goals, strategies, and step-by-step actions. By following the nine essential steps in this checklist, you will be on your way to creating a solid foundation for your craft store venture.

First and foremost, conducting thorough market research is essential. This will help you gain valuable insights into customer preferences, market trends, and potential opportunities. Understanding your target audience is equally important, as it will allow you to tailor your offerings and marketing efforts to meet their specific needs.

Another crucial step is analyzing your competition. By identifying their strengths, weaknesses, and unique selling points, you can differentiate your craft store and carve out a distinct position in the market. The ideal location for your store is also an important consideration, as it can greatly impact visibility, foot traffic, and accessibility.

Next, you need to define your product offerings. Whether you choose to sell handmade items through an online platform or at local craft fairs, it is important to curate a diverse and appealing range of crafts that will attract your target audience. Offering workshops and classes can also be a great way to engage customers and establish your store as a hub for creativity.

Startup costs and funding options are another vital aspect to consider. It is important to accurately assess the initial investment required and explore various funding options, such as loans or grants, to ensure adequate financial resources. Developing a pricing strategy that covers your costs while remaining competitive is also essential for long-term sustainability.

In order to attract customers and build a strong brand presence, creating a comprehensive marketing plan is crucial. This should include strategies for online and offline promotion, social media engagement, and building partnerships with local artists and crafters. It is also important to evaluate and comply with legal and regulatory requirements to operate your craft store smoothly and avoid any potential legal pitfalls.

By following these nine steps, you will be well-prepared to embark on your journey of owning and operating a successful small-scale craft store. So grab a pen and paper, and let's start crafting your business plan today!

Conduct Market Research

When starting a small-scale craft store, it is crucial to conduct market research to gather valuable insights about the industry, target audience, and competitors. This research will help you make informed decisions and develop a solid business plan. Here are some important steps to follow:

• Identify the craft market trends: Stay updated with the latest trends in the craft industry. This includes understanding popular craft categories, emerging techniques, and sought-after materials. Keep an eye on social media platforms, craft blogs, and forums to gain insights into what customers are looking for.
• Analyze customer preferences: Determine the preferences and demographics of your target audience. This includes understanding their interests, buying behaviors, and purchasing power. Consider conducting surveys or interviews to gather valuable feedback from potential customers.
• Study the competition: Research and analyze your competitors in the craft industry. Identify the types of products they offer, their pricing strategies, and their target audience. This will help you differentiate your craft store and find a unique selling proposition.
• Explore market demand: Assess the demand for craft products in your chosen location. Look for local craft fairs, markets, and existing craft stores to gauge the interest and purchasing power of potential customers. This will help you determine the viability of your craft store in the chosen market.
• Attend local craft fairs and markets to observe customer preferences and buying patterns.
• Join craft-related online groups and forums to connect with other craft enthusiasts and understand market trends.
• Consider conducting focus groups or surveys to collect data directly from your target audience.
• Collaborate with local artists and crafters to gain insights into the challenges and opportunities in the craft industry.

Identify Target Audience

Identifying your target audience is a crucial step in writing a business plan for a small-scale craft store. Understanding who your customers are will help you tailor your product offerings and marketing strategies to meet their needs and preferences. Here are some important factors to consider when identifying your target audience:

• Demographics: Start by gathering information about the demographics of your potential customers. This includes their age, gender, location, income level, and educational background. These details will help you understand the characteristics and preferences of your target audience.
• Interests and Hobbies: Determine the interests and hobbies that align with the products and services you provide. For example, if you specialize in handmade jewelry, your target audience may include individuals who are interested in fashion, accessories, or unique and personalized items.
• Online Behavior: Consider how your target audience engages with online platforms. Are they active on social media? Do they prefer purchasing items through e-commerce websites or online marketplaces? Understanding their online behavior will help you choose the most effective marketing channels.
• Customer Personas: Develop customer personas to further define and understand your target audience. A customer persona is a fictional representation of your ideal customer, based on research and analysis. It includes details such as their age, occupation, preferences, and goals. Creating customer personas will help you tailor your products, services, and marketing efforts to meet their specific needs.

Tips for Identifying Your Target Audience

• Conduct surveys or interviews with potential customers to gather insights about their preferences and needs.
• Utilize online analytics tools to analyze data about customer behavior on your website or social media platforms.
• Attend local craft fairs and markets where your target audience may be present to observe and interact with potential customers.
• Stay updated with industry trends and market research reports to identify emerging market segments that align with your business concept.

Identifying your target audience will not only help you understand who your customers are, but it will also guide your decision-making process throughout the business planning stage. By knowing your target audience, you can create a business plan that effectively addresses their needs and preferences, ensuring the success and profitability of your small-scale craft store.

Analyze Competition

One crucial step in writing a business plan for your small-scale craft store is to analyze the competition in your market. Understanding your competitors can provide valuable insights into the industry, help you identify gaps in the market, and allow you to differentiate your store from others.

Here are some key points to consider when analyzing the competition:

• Identify direct competitors: Research and list down other craft stores in your area or online platforms that offer similar products and services. Take note of their strengths, weaknesses, and unique selling propositions.
• Study their product offerings: Evaluate the range of products your competitors offer, their quality, pricing, and any special features or customization options they provide.
• Assess their target audience: Determine the demographic and psychographic profiles of your competitors' customers. Understand what drives their purchasing decisions and how your craft store can appeal to a different or niche audience.
• Analyze their marketing strategies: Examine your competitors' marketing efforts, including their online presence, social media engagement, advertising campaigns, and promotional activities. Identify what sets them apart and how you can create a unique selling proposition.
• Visit their physical locations or websites: Gain firsthand experience of your competitors' shopping experience, whether it's visiting their physical stores or navigating their online platforms. Pay attention to their store layout, customer service, and overall brand image.
• Look beyond immediate competitors and consider indirect competition, such as general gift shops or online marketplaces that sell handmade products.
• Consider conducting a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis for each of your key competitors to understand their positioning in the market better.
• Regularly monitor and update your analysis to stay informed about changes in the competitive landscape.

By carefully analyzing your competition, you will be well-equipped to refine your business strategy, differentiate your craft store, and position your products and services uniquely in the market.

Determine The Ideal Location

Choosing the right location for your small-scale craft store is crucial to attract customers and maximize sales. Consider the following factors when determining the ideal location:

• Demographics: Research the demographics of the area where you plan to open your store. Look for areas with a high concentration of potential customers, such as creative individuals, art enthusiasts, or tourists.
• Foot traffic: Identify areas with high foot traffic, such as busy shopping districts, tourist attractions, or popular local markets. This will increase the visibility of your store and attract potential customers.
• Competition: Assess the presence of existing craft stores in the area. While some competition can be healthy, too many similar stores may limit your potential customer base. Look for locations where you can stand out and offer a unique experience.
• Affordability: Consider the cost of rent or purchasing a retail space. Ensure that the location fits within your budget and that the potential revenue justifies the expenses.
• Accessibility and parking: Evaluate the accessibility of the location, including proximity to public transportation, parking availability, and the ease of reaching the store for customers.

Tips for determining the ideal location:

• Visit potential locations at different times of the day to observe foot traffic and evaluate the area's ambiance.
• Consider renting a pop-up space in a popular market or collaborating with existing stores to test the market without committing to a long-term lease.
• Research local zoning regulations and ensure that your business is compliant with any restrictions or requirements in the area.
• Engage with the local community to understand their preferences and needs, which can help you tailor your store's offerings and marketing strategies.

Define The Product Offerings

When defining the product offerings for your small-scale craft store, it is important to carefully consider the unique value proposition you want to provide to your customers. A clear and well-defined product offering will help you stand out in the market and attract the right target audience.

First, determine the type of crafts you want to focus on. Consider your own skills and interests, as well as the current trends in the craft industry. Are you specializing in a particular type of crafting, such as jewelry making, knitting, or painting? Or do you want to offer a diverse range of crafts to cater to a wider audience?

Tip: Research popular crafts in your local area and online to identify gaps in the market that you could fill with your product offerings.

Next, decide whether you want to sell exclusively handmade items or if you are open to featuring a mix of handmade products and commercially produced craft supplies. Handmade items have a unique appeal and can command higher prices, while craft supplies attract a broader customer base and can generate consistent sales.

Tip: Consider sourcing unique and high-quality materials for your customers who enjoy making their own crafts. This can include specialty threads, organic fabrics, or eco-friendly materials.

In addition to physical products, think about offering workshops and classes to teach customers how to make their own crafts. This not only generates additional revenue but also provides a unique experience that can differentiate your craft store from competitors.

Tip: Cater to different skill levels and interests by offering a variety of workshops, from beginner-level classes to advanced techniques.

Lastly, consider offering custom orders and personalized gift options. This allows customers to request specific designs or modifications, adding a personal touch to their purchases. This service can be a valuable revenue stream and also helps to build relationships and customer loyalty.

Tip: Ensure that your customers are aware of your custom order and personalized gift options through effective marketing and clear communication on your website and social media channels.

By defining your product offerings with strategic consideration of your target audience and market trends, you can create a compelling range of crafts that will attract customers and set your small-scale craft store apart from the competition. Take the time to revise and refine your product offerings regularly to stay relevant and meet the evolving needs of your customers.

Assess Startup Costs And Funding Options

One of the crucial steps in starting a small-scale craft store is assessing the startup costs and exploring funding options. It is important to have a clear understanding of the financial requirements to launch your business and determine the most suitable sources of funding.

Firstly, make a comprehensive list of all the expenses involved in setting up your craft store. This may include costs such as equipment and supplies, rental or lease fees for the store space, website development and maintenance, marketing and advertising expenses, and salaries or wages for employees if necessary. It is essential to be thorough and accurate when estimating these costs to ensure you have a realistic assessment of your financial needs.

Once you have determined the startup costs, consider your funding options. These may include:

• Personal savings: Using your own savings is a common option for funding a small-scale craft store. This allows you to maintain complete control over the business and avoid the obligation of paying back loans or sharing profits with investors.
• Friends and family: If you are unable to cover all the startup costs on your own, you may consider approaching friends and family members who may be interested in providing a loan or becoming a silent partner in your venture.
• Business loans: Explore the possibility of obtaining a business loan from a bank or financial institution. Prepare a detailed business plan and financial projections to present to potential lenders to increase your chances of securing a loan.
• Grants and small business assistance programs: Research grants and programs specifically designed to support small businesses in the craft industry. These opportunities may offer funding or resources to help you launch and grow your craft store.
• Consider combining multiple funding options to meet your startup costs.
• Maintain meticulous financial records and track your expenses closely.
• Don't forget to include ongoing operating costs, such as inventory restocking and utilities, in your financial projections.
• Regularly review and update your financial plan as your business evolves.

By assessing your startup costs and exploring various funding options, you can create a solid financial foundation for your small-scale craft store. It is important to conduct thorough research, seek professional advice if needed, and make informed decisions to ensure the financial sustainability and success of your business.

Develop a Pricing Strategy

Developing a pricing strategy is a critical step in creating a successful business plan for your small-scale craft store. It involves carefully considering various factors to ensure that your pricing aligns with your target audience and allows you to cover your costs while generating a profit.

When determining the pricing for your products, it is essential to consider the following:

• Cost of Materials: Calculate the cost of the materials used to create your handmade crafts. This includes the cost of raw materials, tools, packaging, and shipping materials.
• Overhead Expenses: Take into account the costs associated with operating your craft store, such as rent, utilities, insurance, marketing, and any staffing expenses.
• Profit Margin: Determine the profit margin you wish to achieve for each product. Consider factors like market demand, competition, and the perceived value of your crafts.
• Competitor Pricing: Research the pricing strategies of your competitors to ensure your prices are competitive but still reflect the unique value of your handmade products.

Tips for Developing an Effective Pricing Strategy:

• Consider offering different price points to cater to a diverse range of customers.
• Regularly review and adjust your prices based on market trends, customer feedback, and changes in costs.
• Offer discounts or promotions strategically to attract customers and encourage repeat purchases.
• Keep track of your margins and analyze your sales data to identify opportunities for revenue growth and cost optimization.

Remember, your pricing strategy should balance your desire for profitability with the value you provide to your customers. By carefully considering all these factors, you can develop a pricing strategy that helps you achieve your business goals while building a loyal customer base for your small-scale craft store.

Create A Marketing Plan

Once you have defined your target audience, it's time to create a comprehensive marketing plan to promote your small-scale craft store. A well-executed marketing strategy can help you reach and attract potential customers, generate sales, and establish a strong brand presence in the market.

Start by identifying the most effective marketing channels for your business, such as social media platforms, online marketplaces, craft fairs, and local events. Consider the preferences and behaviors of your target audience to determine where they are most likely to discover and engage with your products.

Here are some key steps to include in your marketing plan:

• Set clear goals: Establish measurable objectives that align with your business goals. These could include increasing online sales, gaining a certain number of social media followers, or attracting a specific number of customers to your craft workshops.
• Identify your unique selling points: Highlight what sets your craft store apart from the competition. Emphasize the quality, uniqueness, and handmade nature of your products to appeal to customers looking for something special and authentic.
• Develop a brand identity: Create a consistent and appealing visual brand identity to represent your craft store. Use a professional logo, choose a color scheme that reflects your brand values, and develop a captivating brand story to connect with your target audience.
• Utilize social media: Leverage the power of social media platforms, such as Instagram, Facebook, and Pinterest, to showcase your products, engage with your audience, and drive traffic to your online store. Regularly post high-quality images, videos, and compelling content that showcases your crafts and workshops.
• Optimize your website: If you have an online platform, ensure it is user-friendly, visually appealing, and optimized for search engines. Use relevant keywords, incorporate captivating product descriptions, and make it easy for customers to browse, purchase, and inquire about your crafts.
• Collaborate with influencers: Forge partnerships with influential bloggers, content creators, or local artisans who align with your brand values. They can help amplify your reach by sharing their experiences with your store, products, and workshops.
• Offer promotions and incentives: Attract and retain customers by offering discounts, freebies, or loyalty rewards. Encourage word-of-mouth referrals by implementing a referral program that rewards customers for spreading the word about your craft store.
• Track and evaluate your marketing efforts: Monitor and analyze the performance of your marketing campaigns. Use analytics tools to measure website traffic, customer engagement, and sales conversions. Adjust your strategies accordingly to maximize results and optimize return on investment.
• Consider hosting contests or giveaways on social media to increase engagement and attract new followers.
• Create visually appealing and informative product catalogs or brochures to distribute at craft fairs, workshops, and local events.
• Join online communities or forums related to crafts and handmade products to connect with potential customers and share your expertise.
• Collaborate with complementary businesses, such as local coffee shops or boutique stores, to cross-promote each other's products and expand your reach.

Evaluate Legal and Regulatory Requirements

When starting a small-scale craft store, it is essential to understand and comply with the legal and regulatory requirements that apply to your business. Failing to do so can result in fines, penalties, and even the closure of your store. Here are some key areas to consider:

• Business Licenses and Permits: Research and obtain the necessary business licenses and permits required by your local and state authorities. This may include a general business license, sales tax permit, and any specific permits needed for selling handmade items or conducting workshops.
• Trademark and copyright: Ensure that your store name, logo, and any original designs or artwork are not infringing on someone else's intellectual property rights. Consider consulting with an attorney to trademark your own brand identity and protect your unique creations.
• Tax Obligations: Familiarize yourself with your tax obligations as a business owner. This includes collecting and remitting sales tax on applicable items, reporting income, and keeping accurate financial records.
• Product Safety and Labeling: If you are selling items that may be subject to safety regulations, such as toys or cosmetics, make sure they comply with relevant consumer product safety standards. Additionally, ensure that your product labels provide adequate information, including ingredients and care instructions.
• Employment Laws: If you plan to hire employees, familiarize yourself with applicable employment laws. This includes understanding minimum wage requirements, overtime regulations, and any necessary paperwork, such as W-4 forms and I-9 verification.
• Online Business Regulations: If you are selling crafts through an online platform, such as Etsy, be aware of any additional regulations that may apply. This can include disclosure requirements, privacy policies, and compliance with online payment systems.

Tips for Evaluating Legal and Regulatory Requirements:

• Consult with an attorney or business advisor who specializes in small business and craft industry regulations for guidance tailored to your specific needs.
• Stay up-to-date with changes in regulations that may affect your business through industry associations, online resources, or newsletters.
• Maintain thorough documentation of compliance efforts, including permits, licenses, and safety certifications, to demonstrate your commitment to operating within the law.
• Build a network of fellow craft business owners who can offer advice and share their experiences in navigating legal and regulatory challenges.

By carefully evaluating and meeting legal and regulatory requirements, you can establish a solid foundation for your small-scale craft store and ensure the long-term success of your business.

Conclusion:

In conclusion, writing a business plan for a small-scale craft store requires careful consideration of various factors. By following the 9-step checklist outlined in this blog post, entrepreneurs can develop a solid foundation for their business. Market research, defining target audience, analyzing competition, determining the ideal location, defining product offerings, assessing startup costs, developing a pricing strategy, creating a marketing plan, and evaluating legal and regulatory requirements are all crucial steps to success. By implementing these steps and staying focused on the business idea, entrepreneurs can build a thriving craft store and attract a loyal customer base.

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How to Start a Successful Craft Business in 8 Easy Steps [2023]

The information in this article is intended for general information purposes only. You should not rely on it as the sole basis for making any business, legal, or other decisions. While we make every effort to ensure that facts stated are correct at the time of publication, we do not accept any responsibility for keeping this information up to date. Any views expressed in this article are those of the author and do not necessarily represent those of Pay.com.

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

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

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

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8 Steps to Start a Craft Business

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

1. Find Your Market Niche

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

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

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

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

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

2. Visualize Your Customers

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

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

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

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

3. Choose a Name for Your Business

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

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

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

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

4. Create a Business Plan

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

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

Think of the following and put it in writing:

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

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

5. Set Up Your Licensing and Insurance

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

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

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

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

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

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

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

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

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

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

7. Set Up Your Payment Framework

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

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

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

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

Click here to get started with Pay.com.

8. Market Your Business

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

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

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

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

The Pros and Cons of Starting Your Own Craft Business

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

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

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

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

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

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

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

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

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

How can a craft business accept payments?

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

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

Are craft businesses profitable?

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

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

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

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

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

How can I legally sell my homemade products?

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

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

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

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Turning your love of crafting into a successful business will take time to research as well as a substantial startup investment in inventory. For those who not only enjoy crafting but also helping people create their own crafts, running a craft store can be an ideal match. Crafting is a billion dollar industry in the United States, according to the Craft Organization Directors Association. Whether you decide to sell crafts or craft supplies, retail crafting is a huge business with many opportunities for an entrepreneur.

Write your business plan. Opening a craft store can feel like a daunting task, no matter how much you want to do it. Writing a clear business plan will help you determine what you want to sell, such as crafts, supplies or both; how much of it you need; whether you will target a niche, such as scrapbooking, or want a variety of crafts or supplies; where you will get it; how much it will cost and how you'll market it when you're ready.

Find your location. Once you've decided what you want to sell and how you're going to get it, you'll need to buy or lease a suitable retail location. The ideal location for your store will depend on the city or town you will be selling in. Some cities have dedicated downtown areas where there are cafes and lots of foot traffic. Others have well-traveled thoroughfares. Houston is the fourth-largest city in the United States and the largest city in Texas. Rather than look at Houston as a whole to find a place for your store, look at individual neighborhoods. Most will have a large store such as Michael's or Joann Fabrics in strip mall locations, but smaller neighborhoods can benefit from a craft store that is home-like and comfortable. These types of craft shops are often run out of an old house, for example, or near a popular church or other community center. Because Houston is so large, you don't have to worry about competing with chain stores, but rather finding a niche area that the many crafters of Houston will want to visit and discuss crafting.

Look for a place where you would like to shop for supplies or crafts. Be sure there isn't a competitive store nearby. Arrange to purchase or lease the location through a local real estate agent or the building owner.

Set up your store. Once you have found your location, you will need to set up your store so that it is conducive to browsing and buying. Arrange your supplies by niche. If you are offering crafted items, design areas that are interesting to look through. You may also want to consider a children's area, if you have space, so parents can be encouraged to look around, without worrying about children damaging items.

Design a logo for a sign and your promotional materials. You may want to engage a professional graphic designer for this purpose. Your logo can be used in your advertising, brochures, website and all other promotional materials.

Promote your new store with a grand opening celebration. Send press releases to your local media outlets about your opening. You will want to make a habit of sending out press releases periodically to let the media know about events you will be having at the store. Develop a website and if you can, enable it so that people can order online, and pick things up at the store or have you ship them out. Using a website as an online "brochure" is also an excellent way to advertise. Another good way to promote your store and sell supplies is to offer classes in various crafts. Even if you don't know a lot about a certain craft, you can look for and engage a local expert and ask them to teach a class. This will help them promote their business as well.

Open your store. Have coffee available and invite the public inside. Be friendly and energetic. Show people your enthusiasm for your products without overwhelming them. Allow people to browse and don't be discouraged if people don't buy a lot in the beginning. Often people like to check out a new business and then tell their friends about it. Even though you've invested a lot in your business, be patient. If you are getting a lot of foot traffic, people are talking to you a lot about your business, your prices are reasonable and you provide a fun and relaxed experience, you should see sales start to take off.

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Michelle Hogan is a writer and the author of 13 books including the 2005 bestselling memoir, "Without a Net: Middle Class and Homeless (With Kids) in America." Hogan studied English at American University and has been writing professionally since 1998. Her work has appeared in "The New York Times," "Redbook," "Family Circle" and many other publications.

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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.

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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.

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Handicraft Business Plan

If you are planning to start a new handicraft business, the first thing you will need is a business plan. Use our sample business plan created using Upmetrics business plan software to start writing your business plan in no time.

Before you start writing your business plan for your new handicraft business, spend as much time as you can reading through some examples of retail store-related business plans .

Reading sample business plans will give you a good idea of what you’re aiming for. Also, it will show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this sample for you to get a good idea about how perfect a handicraft business plan should look and what details you will need to include in your stunning business plan.

Handicraft Business Plan Outline

This is the standard business plan outline which will cover all important sections that you should include in your business plan.

• Business Overview
• Mission & Vision Statement
• Business Model
• Non-Financial Objectives
• Financial Objectives
• Our Corporate Social Responsibility In Action
• Our Core Values
• Keys To Success
• Guiding Principles
• 3 Year profit forecast
• Company Conceptualization
• Registered Name and Corporate Structure
• Company Ownership
• Company Location And Resources
• Startup cost
• Handicrafts
• The United States Market
• Model Types Insights
• SWOT Analysis
• The Threat Of New Entry
• Competitive Rivalry
• Buyer Power
• Supplier Power
• Threat Of Substitution
• Marketing Plans
• Growth Plan
• Important Assumptions
• Brake-even Analysis
• Profit Yearly
• Gross Margin Yearly
• Projected Cash Flow
• Projected Balance Sheet
• Business Ratios

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After getting started with Upmetrics , you can copy this sample business plan into your business plan to modify the required information, and download your handicraft business plan pdf and doc file. It’s the fastest and easiest way to start writing your business plan.

Download a sample handicraft business plan

Need help writing your business plan from scratch? Here you go;  download our free handicraft business plan pdf  to start.

It’s a modern business plan template specifically designed for your handicraft business. Use the example business plan as a guide for writing your own.

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Craft Business Plan Template & Guidebook

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

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

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How to Write a Craft Business Plan in 7 Steps:

1. describe the purpose of your craft business..

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

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

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

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

2. Products & Services Offered by Your Craft Business.

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

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

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

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

3. Build a Creative Marketing Stratgey.

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

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

Target market

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

Customer base 

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

Product or service description

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

Competitive analysis

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

Marketing channels

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

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4. Write Your Operational Plan.

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

In it, you should list:

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

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

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

5. Management & Organization of Your Craft Business.

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

This section will cover all of the following:

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

6. Craft Business Startup Expenses & Captial Needed.

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

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

Startup Costs

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

Running & Operating Costs

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

Marketing & Sales Expenses

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

7. Financial Plan & Projections

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

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

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

Frequently Asked Questions About Craft Business Plans:

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

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

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

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

Can you write a craft business plan yourself?

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

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How to Start a Craft Business in 9 Steps

Want to earn money selling your crafts? Here’s how to start a profitable craft business in 9 steps.

If you’re blessed with a knack for taking a raw material—wood, wool, wax, you name it—and turning it into something beautiful, you’re lucky. Research shows crafting can reduce stress, build self-esteem, and promote healthy aging.

Beyond the health benefits, crafting can offer a chance to make money. As of 2022, the global handmade items market was valued at more than $752 billion, and the industry is forecast to grow at an annual rate of 9.1% between 2023 and 2028.

If you have a passion for creating, launching your own craft business can allow you to enter a growing industry and earn money doing something you love. Here’s your guide for how to start a craft business.

How to start a craft business

• Conduct market and audience research
• Design your products
• Decide where to sell your products
• Create your brand identity
• Create a marketing plan
• Plan your business finances
• Form your business
• Purchase supplies and make products
• Set up your online store

Starting a business is a lot of work. You’ll need to acquire new skills, expand your knowledge base, and build your professional community. 

As a skilled craftsperson you already possess vision, dedication, and attention to detail, all qualities that will serve you well as an entrepreneur. Follow these nine steps to develop your craft business plan and start earning money selling your products.

1. Conduct market and audience research

Market research involves gathering data about your target customers, your competitors, and the potential market demand for your products. You can read competitor websites, consult trade journals, and browse industry blogs for ecommerce and small business trend reports relevant to your target market.

This research also helps you define your target audience and gather information about your target customers’ desires. You can use this information to create your product line, develop your brand identity, and plan marketing outreach. 

You can refine your initial ideas as you conduct market research. For example, if you make wooden birdhouses, you might identify your target audience as homeowners between ages 40 and 75 who live in the countryside or suburbs and have an interest in wildlife. Further research might tell you that a specific subset of this demographic—women aged 55 to 75 in the Southeast and Midwest—purchases 70% of all novelty garden products, and 20% have an interest in birding. You might take this smaller demographic group as your target audience, further research their needs and purchasing patterns, and use this information to develop your brand identity and initial product line.

2. Design your products

The next step is designing your product line. To maximize your chances of success, build your products around the needs of the target audience you identified in your market research. You can also look for gaps in competitor offerings. If birding message boards are flooded with queries about where to find birdhouse replicas of famous buildings like the Chrysler Building or the US Capitol, you might offer these products to take advantage of the unmet market need.

Know if your products or industry has regulations you must follow in order to manufacture or sell them. For example, food safety standards, and soap and cosmetic guidelines and regulations outline the best practices for making and selling these goods to the public.

3. Decide where to sell your products

Many craft business owners sell at local craft markets or through partnerships with local merchants. Others join an online marketplace like Amazon Handmade or Etsy. 

You can also start an online craft business by launching your own online store. You don’t need an expensive and complicated website to get started. You can set up a Shopify store using a free theme, customized with your photos, fonts, and colors. 

Select a website theme that matches your business and showcases your products. You can also sell directly through social media like Instagram, Facebook, and TikTok with Shopify.

Once you’ve made a plan, estimate the costs associated with selling on each platform and choose the best option for your business. 

4. Create your brand identity

Your brand identity is your company’s messaging and visual style. It includes your business name, logo, typography, color scheme, voice and tone, and brand imagery. Think of it as a graphical and narrative representation of your company’s unique personality. 

Business owners use market research to develop brand identities that both reflect their company values and resonate with their target audiences. If you sell handmade sporting gear to a target audience that values personal challenge, adventure, and novelty, you might select a bright color palette and a bold visual style. If you sell aromatherapy candles to an audience seeking tranquility, you might opt for soothing pastels and low-contrast images. 

5. Create a marketing plan

A marketing plan is a strategy for getting your products in front of potential customers. Although you will continue to refine your marketing strategy over time, creating an initial plan can help you estimate your marketing budget so you’re ready to hit the ground running after launch. 

The plan includes your marketing goals, key messages, and marketing channels, such as social media, email, online advertising, and influencer marketing. If you plan to use social media sites, you can also set up social media accounts for your business during this stage.

Some ways you can consider marketing your new business include:

• Social media marketing
• Email marketing
• Collabs and influencer marketing
• Public relations and earned media

6. Plan your business finances

Financial planning is essential to running a profitable business. It involves estimating your expenses, pricing your products, and calculating your profit margin. If you plan to approach potential investors or apply for a small business loan , you’ll also need to create a formal business plan .

Consider the following types of expenses at the outset:

• Startup costs. The cost of licensing fees, necessary equipment, and initial marketing and branding investments.
• Direct costs. The cost of craft supplies, packaging, shipping, and any other costs associated with making a product and completing an order.
• Overhead costs. Software licensing expenses, marketplace selling fees, marketing costs, insurance, and other recurring expenses associated with running your businesses.

Once you’ve estimated your expenses, you can use this information to price your products. This process has three steps:

1. Calculate the direct cost of each product

2. Factor in overhead costs and startup expenses

3. Apply a markup

You determine your product costs by adding up expenses for materials, any overhead , and your startup costs, or how much it costs to get the business up and running.

Determine your selling price by adding a markup. This is your profit, which typically ranges from 20% to 100% of the item’s cost to produce. You can use a profit margin calculator to determine your markup. 

Check your price against rival offerings to see how they compare. You may need to adjust them based on what you find or how the market responds to your product and price. If sales are disappointing, resist the urge to simply reduce your markup to be more competitive—if you do, you risk taking a loss on every sale. Instead, see if you can reduce overhead or production costs. If you can’t, you might be comparing yourself to the wrong businesses. Look for competitors selling premium products at a price comparable to yours.

7. Form your business 

The next step is forming your craft business. This involves selecting a business structure , such as a sole proprietorship or a limited liability company ( LLC ). Consult your state’s website—usually the Department of Revenue and Taxation page—to determine if you need a business license or to register your business. 

In some cases, your additional obligations will depend on your business entity type. Many states don’t require sole proprietorships to obtain business licenses, but you’ll still need to register your business name using a doing business as (DBA) to open a business bank account, accept payments, and keep your personal and business finances separate.

If you plan to sell outside of our own state, you may also need to register and be prepared to remit sales taxes to those states or regions. 

8. Purchase supplies and make products

Once you’ve formed your business, you're ready to start making products. Research wholesale suppliers, select vendors, and order the supplies you need to launch.

The number of products you’ll need to make will depend on your business model and estimated sales volume. If your products are custom or made-to-order, you might only make enough to use in high-quality product photographs. If you plan to sell at craft fairs or in brick-and-mortar stores, or you anticipate large order volumes, you may decide to build up an inventory before launch. 

9. Set up your online store

If your plan is selling crafts online, your final pre-launch step is setting up your online store. You can use an ecommerce platform like Shopify to design an ecommerce website, list your products, and accept various payment methods . You can also list and sell your items on an online marketplace like Amazon Handmade or Etsy.

Sell your crafts on TikTok

Shopify comes with powerful tools to help you tell your brand story and create TikTok in-feed ads in minutes. Make sales on TikTok and manage all your orders, returns, and payments from Shopify.

How to start a craft business FAQ

Can you start a craft business with no money.

Craft businesses can have low startup costs, but at minimum, you’ll need to factor in equipment and materials expenses. If you plan to sell products online, you’ll also need to pay for setting up an online store or listing your products in an online marketplace.

Do I need a business license to sell my crafts?

Whether you need a business license to sell crafts depends on the legal structure of your business and applicable state and local laws. Consult your state’s Secretary of State or Department of Revenue and Taxation for specific guidance.

Can I sell my crafts at local craft fairs and markets?

Yes. You can sell products at local craft fairs and markets, on an online marketplace, or through your own online store.

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Harris offers proposals to cut food and housing costs, trying to blunt Trump’s economic attacks

Vice President Kamala Harris announced a sweeping set of economic proposals meant to cut taxes and lower the cost of groceries, housing and other essentials for many Americans. Harris unveiled her plans Friday in the battleground state of North Carolina.

Democratic presidential nominee Vice President Kamala Harris speaks at a campaign event at Hendrick Center for Automotive Excellence on the Scott Northern Wake Campus of Wake Tech Community College in Raleigh, N.C., Friday, Aug. 16, 2024. (AP Photo/Mike Stewart)

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Democratic presidential nominee Vice President Kamala Harris walks to board Air Force Two at Raleigh-Durham International Airport, Friday, Aug. 16, 2024, in Morrisville, N.C., after a campaign event. (AP Photo/Julia Nikhinson)

Democratic presidential nominee Vice President Kamala Harris visits Bayleaf Market with North Carolina Gov. Roy Cooper in Raleigh, N.C., Friday, Aug. 16, 2024. (Erin Schaff/The New York Times via AP, Pool)

Democratic presidential nominee Vice President Kamala Harris greets supporters at a campaign event at Hendrick Center for Automotive Excellence on the Scott Northern Wake Campus of Wake Tech Community College in Raleigh, N.C., Friday, Aug. 16, 2024. (AP Photo/Mike Stewart)

President Joe Biden and Vice President Kamala Harris finish speaking about their administration’s efforts to lower prescription drug costs during an event at Prince George’s Community College in Largo, Md., Thursday, Aug. 15, 2024. (AP Photo/Stephanie Scarbrough)

Democratic presidential nominee Vice President Kamala Harris greets attendees after speaking about the administration’s efforts to lower prescription drug costs during an event at Prince George’s Community College in Largo, Md., Thursday, Aug. 15, 2024. (AP Photo/Susan Walsh)

Democratic presidential nominee Vice President Kamala Harris greets Bayleaf Market owner Courtney Pernell in Raleigh, N.C., Friday, Aug. 16, 2024. (Erin Schaff/The New York Times via AP, Pool)

RALEIGH, N.C. (AP) — Vice President Kamala Harris announced a sweeping set of economic proposals on Friday meant to cut taxes and lower the cost of groceries , housing and other essentials for many Americans.

“Look, the bills add up,” she declared, trying to address the financial concerns that are at the top of voters’ minds and that Republican Donald Trump is attempting to blame on her.

During a speech in the battleground state of North Carolina, Harris said that “building up the middle class will be a defining goal of my presidency” as she promoted her plan for a federal ban on price gouging by food producers and grocers. She also proposed $25,000 in down payment assistance for certain first-time homebuyers and tax incentives for builders of starter homes.

“Every day across our nation, families talk about their plans for the future, their ambitions, their aspirations for themselves, for their children. And they talk about how they’re going to be able to actually achieve them financially, because, look, the bills add up,” Harris said. “Food, rent, gas, back to school clothes, prescription medications. After all that, for many families, there’s not much left at the end of the month.”

She stressed tax breaks for families, as well as middle- and lower-income people, promising to expand the child tax credit to up to $3,600 — and $6,000 for children in their first year of life. The vice president also wants to enlarge the earned income tax credit to cover people in lower-income jobs without children — which the campaign estimates would cut their effective tax rate by $1,500 — and lower health insurance premiums through the Affordable Care Act.

Overall, the plans represent a continuation of many Biden administration priorities.

Harris isn’t looking for any radical departures from President Joe Biden, who stepped down from the race last month and endorsed her. Still, the vice president has embraced a dash of economic populism, shifting away from Biden’s emphasis on job creation and infrastructure to matters more closely tied to easing the cost of living -– food prices, housing costs and tax breaks for families.

Much of what she’s proposing would require congressional approval, which is far from assured in the current political environment, though, and Harris’ campaign has offered scant details on how to pay for the ideas.

The vice president is seeking to blunt Trump’s attacks on her. He responded to her speech by posting on his social media account, “Kamala will implement SOVIET style price controls.” He gave his own speech Thursday , during which he displayed popular grocery store items meant to represent the high cost of food.

Some of Trump’s economic advisers offered further rebuttals to Harris’ plans before she spoke on Friday, with Brian Hughes, a spokesman for the former president’s campaign, calling them representative of a “socialist and authoritarian model.”

Kevin Hassett, a former chairman of the Council of Economic Advisers during the Trump administration, called it “completely preposterous” for the government to play a role in setting food prices, a reference to Harris’ proposed federal ban on “corporate price-gouging” on food.

In her speech, Harris offered stark contrasts with Trump’s economic proposals, including his call for steep tariffs on foreign goods. She said that her opponent “wants to impose what is, in effect, a national sales tax on everyday products and basic necessities that we import from other countries.”

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“It will mean higher prices on just about every one of your daily needs,” Harris said. “A Trump tax on gas, a Trump tax on food, a Trump tax on clothing, a Trump tax on over-the-counter medication.”

She added, “At this moment, when everyday prices are too high, he will make them even higher.”

Year-over-year inflation has reached its lowest level in more than three years, but food prices are still 21% above where they were three years ago. A Labor Department report this week showed that nearly all of July’s inflation reflected higher rental prices and other housing costs, a trend that, according to real-time data, is easing. As a result, housing costs should rise more slowly in the coming months, contributing to lower inflation.

Harris’ grocery pricing proposal would instruct the Federal Trade Commission to penalize “big corporations” that engage in price spikes and it singles out a lack of competition in the meat-packing industry for driving up meat prices.

Monica Wallace, a county clerk who attended Harris’ speech, called the vice president’s economic plans “what we need.”

“I have a mother who is receiving services, and just in food stamps alone, she’s still not able to afford food that will last her,” Wallace said.

Comparing Harris to Trump, Wallace said she sees the vice president as someone “definitely for the middle and lower class,” whereas the former president is “for the people who make the money to do any and everything that they want.”

Polls nonetheless show that Americans are more likely to trust Trump over Harris when it comes to handling the economy: Some 45% say Trump is better positioned to handle the economy, while 38% say that about Harris. About 1 in 10 trust neither Harris nor Trump to better handle the economy, according to the latest Associated Press-NORC Center for Public Affairs Research poll .

Riding a resurgence of enthusiasm since the Democrats’ campaign reboot , Harris has embarked on a battleground state blitz in recent weeks that has broadened the number of races viewed as competitive by strategists. In North Carolina, Democrats are navigating renewed energy with caution in an economically dynamic state that hasn’t been won by a Democratic presidential candidate since Barack Obama in 2008.

Gov. Roy Cooper told Friday’s crowd, “I have that 2008 feeling.”

“That’s the last time we voted for a Democratic nominee for president, Barack Obama,” Cooper said.

North Carolina State University political science professor Steven Greene said that the state “went from a situation where Joe Biden was almost surely going down in defeat here, whereas Kamala Harris has a very real chance of winning,”

Deborah Holder, a 68-year-old Raleigh resident who runs six McDonalds restaurants, said of the vice president, “Her culture is something that is going to be a huge strength for her, because she’ll be able to look at the rest of us not just as her constituents, but as people that she has dealt with in all walks of life,”

Harris is trying to strike a balance in defining her own image and economic agenda while still giving credit for the Biden administration’s track record. Her speech in North Carolina came a day after the president was asked if Harris might distance herself from his economic record and responded, “She’s not going to.”

In their first joint speaking event since Biden dropped out, he and Harris were in Maryland on Thursday where they showcased successful negotiations to lower prices for Medicare recipients on 10 prescription drugs .

But Harris spent far more time talking about Trump than Biden in North Carolina, promising “to build an America where everyone’s work is rewarded and talents are valued, where we work with labor and business to strengthen the American economy.”

“And where everyone has the opportunity,” she said “not just to get by, but to get ahead.”

Associated Press writers Meg Kinnard in Chapin, South Carolina, and Will Weissert in Washington contributed to this report.

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NASA Says Boeing Starliner Astronauts May Fly Home on SpaceX in 2025

The agency had insisted for a couple of months that it was confident that Suni Williams and Butch Wilmore would return on Starliner.

By Kenneth Chang

For weeks, NASA has downplayed problems experienced by Starliner, a Boeing spacecraft that took two astronauts to the International Space Station in June.

But on Wednesday, NASA officials admitted that the issues might be more serious than first thought and that the astronauts might not return on the Boeing vehicle, after all.

The agency is exploring a backup option for the astronauts, Suni Williams and Butch Wilmore, to instead hitch a ride back to Earth on a spacecraft built by Boeing’s competitor SpaceX.

The astronauts’ stay in orbit, which was to be as short as eight days, could be extended into next year.

“We could take either path,” Ken Bowersox, NASA’s associate administrator for the space operations mission directorate, said during a news conference on Wednesday. “And reasonable people could pick either path.”

The announcement adds more headaches and embarrassment for Boeing, an aerospace giant that has billions of dollars of aerospace contracts with the federal government and builds commercial jets that fly all around the world.

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AI Won’t Give You a New Sustainable Advantage

• Jay B. Barney
• Martin Reeves

Generative artificial intelligence (gen AI) has the potential to radically alter how business is conducted, and there’s no doubt that it will create a lot of value. Companies have used it to identify entirely new product opportunities and business models; to automate routine decisions, freeing humans to focus on decisions that involve ethical trade-offs, empathy, or imagination; to deliver customized professional services formerly available only to the wealthy; and to develop and communicate product and other recommendations to customers faster, more cheaply, and more informatively than was possible with human-driven processes.

But, the authors ask, will companies be able to leverage gen AI to build a competitive advantage? The answer, they argue in this article, is no—unless you already have a competitive advantage that rivals cannot replicate using AI. Then the technology may serve to amplify the value you derive from that advantage.

But using it may amplify the ones you already have.

Idea in Brief

Early adopters of gen AI can eclipse rivals by using it to identify entirely new product opportunities, automate routine decisions and processes, deliver customized professional services, and communicate with customers more quickly and cheaply than was possible with human-driven processes.

The Reality

Far from being a source of advantage, even in sectors where its impact will be profound, gen AI will be more likely to erode a competitive advantage than to confer one, because its very nature makes new insights and data patterns almost immediately transparent to anyone using gen AI tools.

The Silver Lining

If you already have a competitive advantage that rivals can’t replicate using gen AI, the technology may amplify the value you derive from that advantage.

History has shown that technological innovation can profoundly change how business is conducted. The steam engine in the 1700s, the electric motor in the 1800s, the personal computer in the 1970s—each transformed many sectors of the economy, unlocking enormous value in the process. But relatively few of these and other technologies went on to become direct sources of sustained competitive advantage for the companies that deployed them, precisely because their effects were so profound and so widespread that virtually every enterprise was compelled to adopt them. Moreover, in many cases they eliminated the advantages that incumbents had enjoyed, allowing new competitors to enter previously stable markets.

• JB Jay B. Barney is a Presidential Professor of Strategic Management and the Lassonde Chair of Social Entrepreneurship at the University of Utah’s David Eccles School of Business. He is a coauthor, with Manoel Amorim and Carlos Júlio, of The Secret of Culture Change .
• Martin Reeves is the chairman of Boston Consulting Group’s BCG Henderson Institute. He is a coauthor, with Jack Fuller, of The Imagination Machine (Harvard Business Review Press, 2021) and a coauthor, with Bob Goodson, of Like: The Button That Changed the World (Harvard Business Review Press, April 2025).

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