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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. 

Want to Learn More?

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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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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?

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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.

On a similar note...

Small Business Trends

How to start a craft business.

The Handmade Crafts Industry

The arts and crafts industry is booming, with customers looking for unique products in e-commerce businesses, making these treasures easily accessible and expanding your market reach. Not all craft ventures run exclusively as an online business, though. There are also craft fairs, flea markets, and local retail shops that can sell handmade items.

Why You Should Consider Starting a Craft Business

How to start a craft business in 12 simple steps, 1. research your niche.

Moreover, understanding your competition’s strengths and weaknesses can offer insights into opportunities for growth and innovation in your craft business. Connect with community groups and online forums where your customers hang out to gain deeper insights into their needs and preferences.

2. Choose a Name and Build Your Brand Identity

Keep in mind that a strong business name is often simple, easy to pronounce, and memorable. Your business name should resonate with your target customers, while also reflecting the uniqueness and ethos of your craft business.

3. Get Started with Your Formal Business Plan

In addition to the traditional sections of a business plan, it may be beneficial to include a detailed SWOT analysis. This analysis will allow you to recognize your business’s strengths, weaknesses, opportunities, and threats. By taking the time to anticipate these factors, you can create strategies to capitalize on your strengths and opportunities while mitigating weaknesses and potential risks.

4. Select a Business Structure

5. get a business license.

Depending on what you sell and where you operate, you may need to register your business with your local government. Check with your state and city clerk for the relevant forms. Keep in mind that each jurisdiction may have different rules and regulations.

6. Choose How to Sell Products

When determining the best avenues to sell your crafts, it’s important to consider not only where your potential customers are but also how the platform aligns with your business goals and values. Selling crafts can be done through a variety of channels, each with its unique advantages and challenges.

7. Open a Business Bank Account

Opening a business bank account also presents a professional image to your customers and vendors. It adds legitimacy to your business, making it easier to set up payment processing and receive payments from customers. Plus, it can simplify things if you decide to apply for a business loan or credit in the future.

8. Source Supplies

9. build an inventory.

Then it’s time to hone your craft and create enough items to build your product line. Find places to store your products before they sell. Remember, building an inventory for your handicraft business is not only about quantity but also about variety. Having a wide range of products can appeal to a larger audience and increase your chances of sales.

10. Photograph Products

Consider investing in different types of photography like lifestyle shots, detailed close-ups, and images showing your products’ scale. It’s also useful to have a consistent style and theme across all your product photos. This helps create a cohesive brand image and makes your online store or catalogue look more professional.

11. Price Items

12. create a marketing strategy.

Once the basics are in place, it’s time to get the word out about your craft startup. There are lots od decisions to be made here!

FAQs How to Start a Handicraft Business

How do i decide on the type of craft business to start.

Consider your interests, skills, and target market. Explore different crafts and identify the ones you enjoy and excel in. Research market trends and demand to ensure your chosen craft aligns with your goals.

What are the legal requirements for starting a craft business?

How do i source materials and supplies for my craft business, should i sell my crafts online or through physical stores, how do i set prices for my crafted products.

Calculate your production costs, including materials, labor, and overhead. Research competitors’ prices and market demand. Set competitive prices that cover expenses while ensuring profitability.

How can I effectively market my craft business?

What are some tips for managing inventory and orders.

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

The Ultimate Guide to Starting a Craft Business

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

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

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

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

What you need to know about starting a craft business?

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

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

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

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

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

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

Competition

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

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

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

Creating a business plan

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

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

A basic business plan should include:

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

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

How long will starting a craft business take?

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

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

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

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

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

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

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

How much will it cost to start a craft business?

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

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

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

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

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

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

Types of craft insurance:

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

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

Do I need insurance if I am only selling online?

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

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

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

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

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

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

Profit Margins

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

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

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

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

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

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

Understanding the legalities of starting a craft business

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

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

Planning for the future of your craft business

Registering as a sole trader:

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

Registering as a company:

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

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

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

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

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

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

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

Tone of voice

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

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

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

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

Where will I sell my products?

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

Exhibiting your crafts

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

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

Check out our quick tips on exhibiting your crafts here!

Selling your crafts online

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

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

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

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

Online Marketplaces

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

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

Print-on-demand Marketplaces

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

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

How do I promote my products?

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

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

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

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

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

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

Utilizing social media

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

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

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

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

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

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

Get your craft business started!

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

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

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

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

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

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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.

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

How to Write a Craft Business Plan in 7 Steps:

1. describe the purpose of your craft business..

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

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

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

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

2. Products & Services Offered by Your Craft Business.

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

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

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

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

3. Build a Creative Marketing Stratgey.

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

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

Target market

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

Customer base 

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

Product or service description

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

Competitive analysis

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

Marketing channels

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

Form an LLC in your state!

4. Write Your Operational Plan.

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

In it, you should list:

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

What equipment, supplies, or permits are needed to run a 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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We're newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

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

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

How to Start a Craft Business

Starting a craft business can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful craft business.

Importantly, a critical step in starting a craft business is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

Download our Ultimate Business Plan Template here

14 Steps To Start a Craft Business :

• Choose the Name for Your Craft Business
• Develop Your Craft Business Plan
• Choose the Legal Structure for Your Craft Business
• Secure Startup Funding for Your Craft Business (If Needed)
• Secure a Location for Your Business
• Register Your Craft Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Craft Business
• Buy or Lease the Right Craft Business Equipment
• Develop Your Craft Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Craft Business
• Open for Business

1. Choose the Name for Your Craft Business

The first step to starting a craft business is to choose your business’ name.  

This is a very important choice since your company name is your brand identity and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your own craft business:

• Make sure the name is available . Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple . The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing . Come up with a name that reflects the desired brand and/or focus of your craft business.

2. Develop Your Craft Business Plan

One of the most important steps in starting a craft business is to develop your business plan . The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

Your business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your craft business.
• Company Overview – this section tells the reader about the history of your craft business and what type of craft business you operate. For example, are you a craft supply store, boutique, gallery, or an online craft business?
• Industry Analysis – here you will document key information about the craft industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing products like the ones you will offer?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
• Product : Determine and document what products/services you will offer 
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your craft business? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What startup costs will you incur?
• How will your craft business make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

Finish Your Business Plan Today!

3. choose the legal structure for your craft business.

Next you need to choose a legal structure for your craft business and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the craft business owner and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small business owners. It is an agreement between two or more people who want to start a craft business together. The partners share in the profits and losses of the business. 

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a craft business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a craft business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your craft business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

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4. Secure Startup Funding for Your Craft Business (If Needed)

In developing your craft business plan, you might have determined that you need to raise funding to launch your business. 

If so, the main sources of funding for a craft business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a craft business that they believe has high potential for growth.

5. Secure a Location for Your Business

When starting a craft business, you will need to find the right location for your shop. There are a few things to consider when choosing a location. First, think about what type of craft you want to sell. You will want to find a location that is convenient for your customers. You should also consider the cost of rent and other expenses, such as utilities and marketing. You also need to make sure that the location is zoned for commercial use.

6. Register Your Craft Business with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

7. Open a Business Bank Account

It is important to establish a bank account in your craft business’ name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your craft business to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

To start a craft business, you will need a business license and a sales tax permit. You may also need other permits, depending on the type of business you plan to run. Check with your local government to find out what licenses and permits are required for your business.

10. Get Business Insurance for Your Craft Business

The type of insurance you’ll need to operate a craft business will vary depending on the scope of your operations. 

Some business insurance policies you should consider for your craft business include:

• General liability insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
• Workers’ compensation insurance : If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
• Commercial property insurance : This covers damage to your property caused by fire, theft, or vandalism.
• Business interruption insurance : This covers lost income and expenses if your business is forced to close due to a covered event.
• Professional liability insurance : This protects your business against claims of professional negligence.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs. 

11. Buy or Lease the Right Craft Business Equipment

In order to run a craft business, you will need some basic equipment. This includes items such as a sewing machine, fabric, and scissors. You may also need a computer to create digital designs, and a printer to print your designs. Additionally, you will need to purchase any materials or craft supplies that you will be using to make your products. 

12. Develop Your Craft Business Marketing Materials

Marketing materials will be required to attract and retain customers to your craft business.

The key marketing materials you will need are as follows:

• Logo : Spend some time developing a good logo for your craft business. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
• Website : Likewise, a professional craft business website provides potential customers with information about the products you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
• Social Media Accounts : establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your craft business.

13. Purchase and Setup the Software Needed to Run Your Craft Business

To start a craft business, you will need some basic software, including a word processing program and a spreadsheet program. You may also want to consider using a customer relationship management (CRM) program to help you keep track of your customers and orders.  Additionally, you may want to use a graphic design program to create your marketing materials and product designs.

14. Open for Business

You are now ready to open your craft business. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

How to Finish Your Ultimate Business Plan in 1 Day!

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

How to Start a Craft Business FAQs

Is it hard to start a craft business.

No, it is not hard to start a craft business. There are some things you will need to do in order to get started. The most important thing is to have a clear idea of what you want your business to be and how you plan to manage it. You will also need to create a formal business plan and register your business with the state.

How can I start a craft business with no experience?

There are a few things you can do to start a craft business with no experience. First, you can do some research on the internet or in books to learn about the basics of starting a business. You can also attend craft shows, workshops, and classes to expand your skill set and prepare to open your business. You can also try to find a mentor who can help you get started in the craft business.

What type of craft business is most profitable?

The type of craft business that is most profitable is one that specializes in making and selling high-end crafts. These businesses often make crafts from expensive materials, such as gold and silver, and they typically sell their crafts for a high price.

Another profitable type of craft business is an online store. A successful online craft business can be profitable because it will typically have lower overhead costs than brick-and-mortar stores. Additionally, online stores can reach a larger audience than brick-and-mortar stores.

How much does it cost to start a craft business?

The amount of money you'll need to start a craft business varies depending on the type of business you want to start, the products you plan to sell, and your overhead costs. You may need as little as $100 or as much as $10,000 to get started.

What are the ongoing expenses for a craft business?

The ongoing expenses for a crafting business can vary depending on the size and scope of the business. However, some of the most common expenses include material, marketing, and shipping costs. It is important to track these costs carefully in order to stay on budget and maintain profitability.

How does a craft business make money?

Craft shop owners make money by selling their products to the public. This can be done in a variety of ways, such as through selling online, on consignment shops, flea markets, or at craft fairs. In addition, a handmade business may also offer custom orders or design work.

Is owning a craft business profitable?

Yes, it is a profitable business because a craft business offers unique products that people cannot find at big box stores. Customers appreciate the personal touch that craft businesses offer, and they love being able to support local businesses. In addition, craft businesses often have lower overhead costs than other types of businesses, which leads to greater profitability potential.

Why do craft businesses fail?

There are many reasons why other crafters fail, but the most common reasons are a lack of planning, marketing, and financial knowledge. Other factors may include not having a clear vision for the business, poor customer service, and not being able to produce a high-quality product.

Other Helpful Business Plan Articles & Templates

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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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.

Want to write a business plan?

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Transform your vision into reality: The ultimate business plan template

Crafting a detailed and effective business plan is crucial for any entrepreneur looking to turn a bright idea into a thriving business. Our business plan template is designed to guide you through the intricate process of laying down a solid foundation for your business idea. It's perfect for startups, small business owners, and innovators who are ready to make a significant impact in their industry.

What's inside this business plan template?

• Overview : Start by defining your business idea with a clear and concise description, setting the stage for what your business aims to achieve.
• Mission and vision : Detail your business's core purpose and the future you envision. This section helps clarify your business's driving force and long-term goals.
• Market analysis : Dive into industry trends, growth projections, and your target market. This part includes industry overview, target market identification, and competitor analysis.
• The product or service : Describe your product or service, focusing on its unique features, benefits, and the problem it solves for your customers.
• Business model : Outline how your business will generate revenue, highlighting different revenue streams, customer acquisition strategies, and your cost structure.
• Marketing and sales strategy : Explain how you plan to reach your target market and convert them into loyal customers. Get our marketing game plan template to efficiently plan your marketing strategy.
• Management and organization : Introduce your team and define the organizational structure, ensuring clarity in roles and responsibilities.
• Financial plan and projections : Provide an overview of your startup costs, revenue projections, and an expense budget to give a clear financial roadmap.
• Risk analysis : Identify potential risks and outline strategies for mitigation to prepare for uncertainties.

Key benefits of using this business plan template

• Structured approach : Break down the complex process of business planning into manageable sections, ensuring no critical aspect is overlooked.
• Clarity and focus : Helps you articulate and refine your business idea, mission, and goals, providing a clear direction for your team and potential investors.
• Market insight : Encourages in-depth market analysis, ensuring your business idea is well-positioned to meet customer needs and stand out from competitors.
• Financial planning : Guides you through outlining your financial strategy, helping to secure funding and manage your budget effectively.
• Risk management : Prepares you to identify and mitigate potential challenges, enhancing your business's resilience.

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How to start a craft business

• Free guides & templates
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If you’re thinking of starting a craft business, ait’s essential to plan out your journey. Discover how to start a craft business.

Mastering your craft requires plenty of talent, dedication and practice.

But if you’re thinking of turning your creative skills into a full time job or side hustle , you’ll need to get to grips with a whole other skill set: how to for run a company.

In 2021, we created a quiz to test small business readiness in the UK , and more than 1,200 budding entrepreneurs took part (so far). According to the data, just under a third of people (31%) who want to start an arts business currently lack the skills to do so.

In this article, we’ll look at how you can brush up on those business skills and go from an occasional hobbyist to a successful artisan business owner.

Here’s what we cover:

Starting a craft business online

Research demand for your craft product, create a business plan for your craft business, decide on your business structure, administration for a craft business, choosing markets to sell into, develop your craft business’s marketing plan, are you ready to start a craft business.

Allow yourself to daydream and picture your business 12 months from now: you’re running an e-commerce craft shop with many loyal customers.

You have thousands of followers on your social media channels, and you’re selling your products on a variety of websites and high street boutiques.

It’s an impressive achievement. But how did you get there?

Starting a craft business is achievable for anyone with creative skills, whether they want to run a side hustle or start up full time.

It can be serious business too.

Statistics from the Creative Industries Council show that the 11,620 craft businesses in the UK contribute some £3.4bn to the economy .

It’s also easier than ever to start a craft business today, thanks to the growth of websites that let you sell to customers anywhere in the world.

Keep reading on to find out how to start a creative business.

You could produce the most beautiful designs in the world, but if there aren’t enough people to buy the product, your business won’t go anywhere.

So, before investing time and energy into your ideas, you should first conduct some market research.

Here’s how to do just that:

• Visit online marketplaces: Head to websites such as Etsy, Not On The High Street or Amazon Homemade and browse for products similar to yours. It’s a good sign if there are several companies working in your category, but it does not yet feel saturated. The aim here is to get a feel for the market – you don’t need to spend days browsing these sites. Rather, you want to find out what’s out there so you have an idea of how to differentiate yourself.
• Check out craft shops and fairs: Visit local craft shops and fairs in your area to see what they’re stocking. Do they already have products like yours for sale? You might even find you can strike up a conversation with the owner to find out if they think your products would sell.
• Do a survey: Try using an online survey tool to gauge interest in your products. If you were selling handbound notebooks, you could ask people how often they buy notebooks, what they use them for, where they buy them and what kind of budget they have. Share your survey on social media and see what response you get.

A business plan is a simple document that summarises what your business is. It doesn’t have to be complicated or full of charts and graphs.

Instead, it’s like a mission statement for why your craft business is awesome, and how it’s going to work.

It should cover:

• What products you will sell
• Who you expect to buy your products
• Where you’ll sell goods (in shops, your own website, online marketplaces, at craft fairs)
• Any other services you’ll offer (such as made-to-measure or teaching)
• Your financial goals
• Pricing for your product.

How they did it: Listen to our Sound Advice podcast (or read the transcript ) for our interview with Autumn Rabbitts , founder of creative cake-making studio Plumb and Rabbitts.

Deciding on your company’s structure is an important consideration when you are starting a craft business. The structure you choose will affect your tax bill, how you pay yourself and the amount of admin you need to do.

If you have decided you want to commit to turning your skills into a business, you’ll need to choose a structure before you can begin trading:

• Sole trader: This is the easiest business model to set up. You just need to register with HMRC and you can begin trading. As a sole trader you are personally responsible for all the business’s debts and losses.
• Partnership: If you are running your business with a friend or relative, it might be worth starting a partnership . This structure is similar to a sole trader, but all partners share responsibility for any losses.
• Limited company: This structure means you are only liable for the amount that you invest in the company. If the business were to fail, you wouldn’t personally go bankrupt. Limited company owners might find they pay less tax too.

Crafters who’ve been there before

“Starting a business can be a bit like taking a walk and up ahead there’s a corner – you won’t find out what’s round that corner unless you are prepared to keep walking” – Alastair Bell of Belfast artisanal food business Irish Black Butter .

All business owners need to set aside time each week for administration. It typically includes things like:

• Setting aside tax from any sales
• Calculating your profits and loss
• Monitoring your inventory
• Storing records of all your receipts and expenses.

Read more: How to manage finances for your creative side business

Where will you sell your craft product?

Deciding on markets to sell into is an important decision and should be based on thorough research:

Online marketplaces

There are many online craft marketplaces around today. The best known is, of course, Etsy, which has some 60 million buyers every year.

It’s worth remembering that there are many other sites that sell specific kinds of products or that target certain niches. Whether it’s Folksy , Crafty Fox Market or Crafters Market , try browsing other sites to see if they’re right for you.

Building your own e-commerce website

Depending on how many products you plan to sell, it might be worth setting up your own e-commerce website using a website builder such as Shopify .

Having your own website allows you to retain all your profits by selling direct to the customer.

Attending craft fairs

There are thousands of craft fairs taking place across the UK every year.

Although these numbers declined quite drastically throughout 2020 and much of 2021, due to the pandemic, they are starting to return.

You can often find craft fairs listed on Facebook or you can use a website such as Eventbrite to find events in your local area.

Selling direct to craft shops

High-street craft shops are often a great place to sell your products. Visit the store owner to find out if they’d be interested in selling your goods.

“When you’re thinking about starting a new business, use your skills and your passion” – Kate Findlay, of Coventry’s online boutique gift shop Peach Perfect .

Next on your checklist for starting a craft business is to figure out your marketing plan. This will help you to get your designs out there and generate interest.

1. Use social media

Almost all craft businesses today use social media.

These platforms have clever algorithms that promote your content to audiences who would likely be interested in your goods. Each social media platform requires a different sort of marketing strategy and has its own audience.

Unless you’ve got enough time to produce content for them all, it might be better to focus your attention on just one or two:

• Instagram: You will need to create attractive photos of your products that will stand out on people’s feeds.
• TikTok: This is a great place to post interesting videos showing how you create your products.
• Facebook: A mixture of written text, photographs and video content will work well here, particularly if you are considering using paid advertising to reach a wider audience or target a specific demographic.

Each platform has slightly different audience types in terms of age range, and their reasons for using the platform. Take some time to research which platforms your ideal customer spends time on.

2. Build a website

If you’re starting a creative business, you will need a website.

There are many helpful website building tools such as Wix or SquareSpace , which allow you to quickly and easily create a presence online.

As mentioned above, building a strong social media presence will help drive traffic to your website.

You should also create high-quality content to sustain traffic from search engines such as Google or consider using pay-per-click (PPC) advertising to drive prospective customers to key product pages.

3. Invest in branding

As a crafter, you’ve probably got a pretty good eye for design. But it’s worth taking some time to brand your business.

Think about a consistent colour theme, photography and writing style.

Choose a name that is memorable but which also tells people what kind of product you sell.

“Starting out, I felt the pressure to learn marketing, PR, business development, financing for my business and this seemed totally daunting… I wish I knew would be to take advantage of freely available resources and classes to help me quickly develop these invaluable skills” – Lucy Arnold of Manchester-based leggings company Lucy Locket Loves .

4. Don’t scrimp on photography

It is vital you have high-quality photography that puts your products in the best light, especially if you’re starting a craft business online.

The good news is that you don’t necessarily need expensive equipment to begin with. Today’s mobile phones take excellent photos.

That said, if you’re selling higher-value goods, using a professional photographer can be a worthwhile investment.

5. Plan for Christmas and other seasonal peaks

If you’re starting a craft business, it’s important to think about seasonal events where demand is highest so you can prepare your stock and marketing activities.

Christmas is, of course, the most popular season for buying craft gifts. But other periods will also be important, such as Easter, Valentine’s Day, Mother’s Day, Father’s Day and other holidays.

“A few months go by and then you look back and realise how far you’ve come” – Paul Lenihan of Leeds gift card company OPEN Gift Card .

Your passion for your craft will carry you a long way, but it’s just as important to nurture business skills that will turn your dream into a reality.

Try our business readiness quiz today to see how prepared you are for starting a craft business and get personalised tips on what to do next.

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See advice specific to your business

Step-by-Step Sample of a Craft Business Plan

• Mary Rajotte
• Categories : Entrepreneurs , Business
• Tags : Office entrepreneurs topics business planning

Reality Check

Having a passion for arts and crafts is a great place to start, but that does not mean you should completely overlook the importance of having a solid plan to back up your interests.

While being passionate about your product is a great place to start, you need to put a plan into place that will help you to start, build and grow your business. That is where this sample of a craft business plan can help you to focus on your goal of being a small business owner.

After putting all the pieces into place, implementing them is much easier, and your excitement for your passion project will translate into a passion that is reciprocated by your customers.

Photo: Melodi2

Creating a business plan will provide you with a solid basis from which to start your craft business. Generally, most business plans follow a similar format , and this sample of a craft business plan includes the following areas:

Executive Summary

Mission statement.

• Product/Service Descriptions
• Marketing Plan

Financial Information

The Executive Summary pinpoints the main bulletpoints of your business, offering a quick glance at the most important aspects of your small business and what you hope to achieve. These can include:

• contact information for your business
• a brief description of you & your business
• your objectives & how you will achieve them

Sparkle Jewelry Designs is a handcrafted jewelry business with a focus on modern styles with an edge.

Our ideal customers are females between the ages of 20 to 40. Our clients pride themselves on wearing fashions that express their individuality and they choose our designs for their creative styles that are both fashion-forward and can be worn for years to come.

The Mission Statement should include your intentions for your company

• trends and how you fit into the marketplace
• be specific with your goals & think beyond simply being a success in your target market

Our clients love fashion but they are not satisfied with mass-produced, cookie-cutter accessories. They seek out our brand for our attention to detail, custom designs, and the personal touch that comes with our handcrafed designs.

Product/Service Description

This section should include information on what makes your product special.

• What is your unique selling point?
• How is your product different than what is currently available in the marketplace?
• Do you do something faster, better or in a way that is innovative when compared to your competition?
• What benefit does your product have for your customers? Does it solve a problem or fill a hole in the marketplace? How does your product uniquely enhance their life?

Each piece in the Sparkle Jewelry Designs line is handcrafted in limited edition batches.

This provides a much sought-after appeal to our pieces, while offering unique designs that are handcrafted to the highest standards specifically for our customers.

This also allows us to apply the highest level of craftmanship to every piece in the Sparkle Jewelry Designs line.

Marketing Plan: Reaching Your Target Market

This section should be completed following a market analysis that will determine the three main components of your marketing plan.

• your target market

• your competition and how you plan to compete

• marketing expenses & how you will market your crafts

Sparkle Jewelry Designs are currently sold via our online website, which receives traffic flow from our various social media pages on Facebook, Twitter and LinkedIn.

We plan to market our jewelry via these online spaces, as well as through various blogs that our shoppers read. Our sales will be tracked online via Paypal, which we will use to collect payment, as well as run & print monthly reports of all sales & expenses.

Sparkle Jewelry Designs is located in downtown Toronto, which gives us access to various crafts shows, artisan markets and trade shows where we rent space to sell our wares .

Our clients love fashion but they are not satisfied with mass-produced, cookie-cutter accessories. They seek out our brand for our attention to detail, custom designs, and the personal touch that comes with our handcrafted designs.

Photo: Andres Rodriguez

This section should include information on sales, expenses and cash flow expectations .

• what start-up costs will you have?
• how will you source supplies?

Since Sparkle Jewelry Designs will be run from our home, our start-up expenses will be minimal. Our expenses will be web hosting, domain registration and minimal advertising costs. We will also need to purchase packaging materials for our orders, and to pay a minimal fee for each sale by using Paypal as our payment processor.

We expect our cash flow to be more lucrative during Fall (for holiday shoppers) and Spring, with a slow-down in Summer months, as online traffic and shopping in general seems to slow down in those periods.

Final Thoughts

While your aim is to make your business plan as professional as possible, don’t think that you cannot be creative with your business plan. Creating a small craft business plan will allow you to see your entire business laid out before you, and give you a snapshot of how you can live your dream and make money doing so.

Inserting your personality and the passion you have for your craft business idea will translate into a compelling document that will help you propel your business forward.

• How to Write a Simple Business Plan
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9 Business Plan Examples to Inspire Your Own (2024)

Need support creating your business plan? Check out these business plan examples for inspiration and guidance.

Any aspiring entrepreneur researching how to start a business will likely be advised to write a business plan. But few resources provide business plan examples to really guide you through writing one of your own.

Here are some real-world and illustrative business plan examples to help you craft your business plan .

Business plan format: 9 examples

The business plan examples in this article follow this template:

• Executive summary
• Company description
• Market analysis
• Products and services
• Marketing plan
• Logistics and operations plan
• Financial plan
• Customer segmentation

1. Executive summary

Your executive summary is a page that gives a high-level overview of the rest of your business plan. While it appears at the beginning, it’s easiest to write this section last, as there are details further in the report you’ll need to include here.

In this free business plan template , the executive summary is four paragraphs and takes a little over half a page. It clearly and efficiently communicates what the business does and what it plans to do, including its business model and target customers.

2. Company description

You might repurpose your company description elsewhere, like on your About page , social media profile pages, or other properties that require a boilerplate description of your small business.

Soap brand ORRIS has a blurb on its About page that could easily be repurposed for the company description section of its business plan.

You can also go more in-depth with your company overview and include the following sections, like in this business plan example for Paw Print Post:

Business structure

This section outlines how you registered your business —as an LLC , sole proprietorship, corporation, or other business type : “Paw Print Post will operate as a sole proprietorship run by the owner, Jane Matthews.”

Nature of the business

“Paw Print Post sells unique, one-of-a-kind digitally printed cards that are customized with a pet’s unique paw prints.”

“Paw Print Post operates primarily in the pet industry and sells goods that could also be categorized as part of the greeting card industry.”

Background information

“Jane Matthews, the founder of Paw Print Post, has a long history in the pet industry and working with animals, and was recently trained as a graphic designer. She’s combining those two loves to capture a niche in the market: unique greeting cards customized with a pet’s paw prints, without needing to resort to the traditional (and messy) options of casting your pet’s prints in plaster or using pet-safe ink to have them stamp their ’signature.’”

Business objectives

“Jane will have Paw Print Post ready to launch at the Big Important Pet Expo in Toronto to get the word out among industry players and consumers alike. After two years in business, Jane aims to drive $150,000 in annual revenue from the sale of Paw Print Post’s signature greeting cards and to have expanded into two new product categories.”

“Jane Matthews is the sole full-time employee of Paw Print Post but hires contractors as needed to support her workflow and fill gaps in her skill set. Notably, Paw Print Post has a standing contract for five hours a week of virtual assistant support with Virtual Assistants Pro.”

Your mission statement may also make an appearance here. Passionfruit shares its mission statement on its company website, and it would also work well in its example business plan.

3. Market analysis

The market analysis consists of research about supply and demand , your target demographics, industry trends, and the competitive landscape. You might run a SWOT analysis and include that in your business plan. 

Here’s an example SWOT analysis for an online tailored-shirt business:

You’ll also want to do a competitive analysis as part of the market research component of your business plan. This will tell you which businesses you’re up against and give you ideas on how to differentiate your brand. A broad competitive analysis might include:

• Target customers
• Unique value proposition , or what sets the products apart
• Sales pitch
• Price points for products
• Shipping policy

4. Products and services

This section of your business plan describes your offerings—which products and services do you sell to your customers? Here’s an example for Paw Print Post that explains its line of custom greeting cards, along with details on what makes its products unique.

5. Marketing plan

It’s always a good idea to develop a marketing plan before you launch your business. Your marketing plan shows how you’ll get the word out about your business, and it’s an essential component of your business plan as well.

The Paw Print Post focuses on four Ps: price, product, promotion, and place. However, you can take a different approach with your marketing plan. Maybe you can pull from your existing marketing strategy , or maybe you break it down by the different marketing channels. Whatever approach you take, your marketing plan should describe how you intend to promote your business and offerings to potential customers.

6. Logistics and operations plan

The Paw Print Post example considered suppliers, production, facilities, equipment, shipping and fulfillment, and inventory. This includes any raw materials needed to produce the products.

7. Financial plan

The financial plan provides a breakdown of sales, revenue, profit, expenses, and other relevant financial metrics related to funding and profiting from your business.

Ecommerce brand Nature’s Candy’s financial plan breaks down predicted revenue, expenses, and net profit in graphs.

It then dives deeper into the financials to include:

• Funding needs
• Projected profit-and-loss statement
• Projected balance sheet
• Projected cash-flow statement

You can use a financial plan spreadsheet to build your own financial statements, including income statement, balance sheet, and cash-flow statement.

8. Customer segmentation

Customer segmentation means dividing your target market into groups based on specific characteristics. These characteristics can be demographics, psychographics, behavior, or geography. Your business plan will provide detailed information on each segment, like its size and growth potential, so you can show why they are valuable to your business. 

Airsign , an eco-friendly vacuum cleaner company, faced the challenge of building a sustainable business model in the competitive home appliance market. They identified three key customer personas to target:

• Design-oriented urban dwellers
• Millennials moving to suburbs
• Older consumers seeking high-quality appliances

The company utilized Shopify’s customer segmentation tools to gain insights and take action to target them. Airsign created targeted segments for specific marketing initiatives.

Put your customer data to work with Shopify’s customer segmentation

Shopify’s built-in segmentation tools help you discover insights about your customers, build segments as targeted as your marketing plans with filters based on your customers’ demographic and behavioral data, and drive sales with timely and personalized emails.

9. Appendix

The appendix provides in-depth data, research, or documentation that supports the claims and projections made in the main business plan. It includes things like market research, finance, résumés, product specs, and legal documents. 

Readers can access detailed info in the appendix, but the main plan stays focused and easy to read. Here’s an example from a fictional clothing brand called Bloom:

Appendix: Bloom Business Plan

Types of business plans, and what to include for each

This lean business plan is meant to be high level and easy to understand at a glance. You’ll want to include all of the same sections in one-page business plan, but make sure they’re truncated and summarized:

• Executive summary: truncated
• Market analysis: summarized
• Products and services: summarized
• Marketing plan: summarized
• Logistics and operations plan: summarized
• Financials: summarized

A startup business plan is for a new business. Typically, these plans are developed and shared to secure funding . As such, there’s a bigger focus on the financials, as well as on other sections that determine viability of your business idea—market research, for example:

• Market analysis: in-depth
• Financials: in-depth

Your internal business plan is meant to keep your team on the same page and aligned toward the same goal:

A strategic, or growth, business plan is a big-picture, long-term look at your business. As such, the forecasts tend to look further into the future, and growth and revenue goals may be higher. Essentially, you want to use all the sections you would in a normal business plan and build upon each:

• Market analysis: comprehensive outlook
• Products and services: for launch and expansion
• Marketing plan: comprehensive outlook
• Logistics and operations plan: comprehensive outlook
• Financials: comprehensive outlook

Feasibility

Your feasibility business plan is sort of a pre-business plan—many refer to it as simply a feasibility study. This plan essentially lays the groundwork and validates that it’s worth the effort to make a full business plan for your idea. As such, it’s mostly centered around research:

Nonprofit business plans are used to attract donors, grants, and partnerships. They focus on what their mission is, how they measure success, and how they get funded. You’ll want to include the following sections in addition to a traditional business plan:

• Organization description
• Need statement
• Programs and services
• Fundraising plan
• Partnerships and collaborations
• Impact measurement

Set yourself up for success as a business owner

Building a good business plan serves as a roadmap you can use for your ecommerce business at launch and as you reach each of your business goals. Business plans create accountability for entrepreneurs and synergy among teams, regardless of your business model .

Kickstart your ecommerce business and set yourself up for success with an intentional business planning process—and with the sample business plans above to guide your own path.

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Business plan examples FAQ

How do i write a simple business plan.

To write a simple business plan, begin with an executive summary that outlines your business and your plans. Follow this with sections detailing your company description, market analysis, organization and management structure, product or service, marketing and sales strategy, and financial projections. Each section should be concise and clearly illustrate your strategies and goals.

What is the best format to write a business plan?

The best business plan format presents your plan in a clear, organized manner, making it easier for potential investors to understand your business model and goals. Always begin with the executive summary and end with financial information or appendices for any additional data.

What are the 4 key elements of a business plan?

• Executive summary: A concise overview of the company’s mission, goals, target audience, and financial objectives.
• Business description: A description of the company’s purpose, operations, products and services, target markets, and competitive landscape.
• Market analysis: An analysis of the industry, market trends, potential customers, and competitors.
• Financial plan: A detailed description of the company’s financial forecasts and strategies.

What are the 3 main points of a business plan?

• Concept: Your concept should explain the purpose of your business and provide an overall summary of what you intend to accomplish.
• Contents: Your content should include details about the products and services you provide, your target market, and your competition.
• Cash flow: Your cash flow section should include information about your expected cash inflows and outflows, such as capital investments, operating costs, and revenue projections.

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FREE Checklist for starting a craft business

Free checklist for starting a craft business.

However you decide to do it the key if your are turning your passion or hobby for crafts into a thriving business online or off is selling your products. I have this great Free checklist for starting a craft business. This is a great quick craft business planner to get you started on the right track. So if you want a FREE Printable Business Startup Checklist for Launching Your Creative business then keep reading this post.

(If this post contains affiliate links please see our full disclosure policy although I have to say I tried really hard to make it interesting and even I struggled to write it so if you really must read it you can find it here)

How do I start a craft business?

For a lot of people setting up online can be the first step without too much cost to set up their own craft business. It doesn’t matter whether you set up online or offline there are a few important considerations, to begin with:

• Have a plan
• Figure out your costs
• Identify your customers so you can target what you make to an ideal audience eg. young new moms – this will help you decide what to make that will actually sell not what you necessarily love to make.
• Have gorgeous photos of your products to show people both on or offline
• Don’t spread yourself to wide only make a few items
• Make items that are reproducible
• Check out the competition
• Decide if you want to go for the offline or online route
• Online means you need to choose a domain name and hosting my preference has been using Siteground for hosting as I have had no issues with this company my site speed is fast and they can answer queries quickly plus if you already have a site they can migrate you over for FREE. You will need to add a shop to your Website and one of the main options is Shopify which also allows you to sell products directly through Instagram.
• You can use social media for driving traffic on and offline too
• Contact magazines
• Consider taking more classes so you are advanced at what you do these can also give you the opportunity to network with other crafters in your area of interest
• Set up your workspace

Do you need a business license to sell crafts?

This depends on which country you are located in.

Here is a handy resource so you can check for each state what is required with regards to a business license.

StartingYourBusiness

Your company structure

Don’t forget as well you will need to decide how you are going to set your company up is it going to be registered as self-employed or an LLC?

You will need to organize this so that you pay taxes properly.

Here is another handy resource to help you decide which one you may want to do.

( In the UK you can set your self up as self-employed or create a limited company look at HMRC.org to decide how you want to structure your business in the UK)

How can I promote my craft business?

Social media is great for getting the word out.

Pinterest and Instagram are two routes you should explore as they are image focused.

What I would say is avoid spreading yourself too thin on social media try one avenue master it rather than two or three.

If you have a website/ blog and sell things directly via your site you may want to consider using Pinterest as its currently free for business users and can drive potentially hundreds of visitors to your website every day whereas Instagram prefers to keep people on their website rather than send them across to your blog so be aware of this if you are planning to have your own site.

Business cards will help if you are attending crafts fairs to give to potential customers.

Where can I sell my Crafts online for free?

One of the best things you can do is have your own website to promote your products with a shop.

You should definitely go self-hosted which means you will need to buy hosting and a domain name –

I recommend Siteground as they have been excellent.

If you want more information then check my other blog for how to start a blog full of information to get you started.

BLOG Resources

If you don’t want to have your own site then consider having a shop on another platform one of the biggest for handmade items is of course

Amazon Handmade has a similar option as well.

You can also consider smaller options like

• Folksy (UK)
• Bigcommerce

Resources for Starting your Craft business

• How to Show & Sell Your Crafts: How to Build Your Craft Business at Home, Online, and in the Marketplace
• The Handmade Marketplace, 2nd Edition: How to Sell Your Crafts Locally, Globally, and Online
• How to Sell Your Crafts Online: A Step-by-Step Guide to Successful Sales on Etsy and Beyond
• The Handmade Entrepreneur how to Sell on Etsy, or Anywhere Else: Easy Steps for Building a Real Business Around Your Crafts
• Crafters guide to taking photographs

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Where should you sell your handmade items?

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Promotional material.

Like business cards- make sure you have plenty to give out when you are different events like craft fairs so you can promote your business even if you don’t initially get may orders. This can be especially lucrative if you can direct customers to your online shop as they may purchase later rather than on the day.

Craft Fairs

Make sure you go to the right craft fair for your business

They can be a great way to gauge your new products and talk directly to consumers about changes you may need to make if something isn’t quite right.

Selling wholesale

If you can negotiate good deals with shops some crafts can do this sometimes almost exclusively selling wholesale for their products.

Again it’s important to work out your costs and still have a profit margin.

Drop shipping can be another route too.

Not as complicated as it sounds – you will ship and package your products but the retailer deals with the website and online store set up and any time someone purchases you will receive the order to supply.

How to start a craft workshop for your business

If you have bricks and mortar place for your business can be a great route to get you known and add to your income.

Make sure whatever you plan to teach at a workshop is something you know inside out.

Consider the amount of time it will take to complete the project will it be done within the time of the workshop or will students need longer to complete it.

Doing a test run with friends will allow you to work out any issues in advance and help you set up a lesson plan for the workshop.

Keeping Records for your Craft Business

Don’t forget whatever you decide to do you should keep records of

• Expenditure
• Whats creations have worked
• Whats creations have not worked

I hope this gave you some thoughts about setting up your own Craft business.

It doesn’t need to be hard.

New year new start set your own Craft business up today.

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Simple Business Plan Template (2024)

Updated: May 4, 2024, 4:37pm

Table of Contents

Why business plans are vital, get your free simple business plan template, how to write an effective business plan in 6 steps, frequently asked questions.

While taking many forms and serving many purposes, they all have one thing in common: business plans help you establish your goals and define the means for achieving them. Our simple business plan template covers everything you need to consider when launching a side gig, solo operation or small business. By following this step-by-step process, you might even uncover a few alternate routes to success.

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Whether you’re a first-time solopreneur or a seasoned business owner, the planning process challenges you to examine the costs and tasks involved in bringing a product or service to market. The process can also help you spot new income opportunities and hone in on the most profitable business models.

Though vital, business planning doesn’t have to be a chore. Business plans for lean startups and solopreneurs can simply outline the business concept, sales proposition, target customers and sketch out a plan of action to bring the product or service to market. However, if you’re seeking startup funding or partnership opportunities, you’ll need a write a business plan that details market research, operating costs and revenue forecasting. Whichever startup category you fall into, if you’re at square one, our simple business plan template will point you down the right path.

Copy our free simple business plan template so you can fill in the blanks as we explore each element of your business plan. Need help getting your ideas flowing? You’ll also find several startup scenario examples below.

Download free template as .docx

Whether you need a quick-launch overview or an in-depth plan for investors, any business plan should cover the six key elements outlined in our free template and explained below. The main difference in starting a small business versus an investor-funded business is the market research and operational and financial details needed to support the concept.

1. Your Mission or Vision

Start by declaring a “dream statement” for your business. You can call this your executive summary, vision statement or mission. Whatever the name, the first part of your business plan summarizes your idea by answering five questions. Keep it brief, such as an elevator pitch. You’ll expand these answers in the following sections of the simple business plan template.

• What does your business do? Are you selling products, services, information or a combination?
• Where does this happen? Will you conduct business online, in-store, via mobile means or in a specific location or environment?
• Who does your business benefit? Who is your target market and ideal customer for your concept?
• Why would potential customers care? What would make your ideal customers take notice of your business?
• How do your products and/or services outshine the competition? What would make your ideal customers choose you over a competitor?

These answers come easily if you have a solid concept for your business, but don’t worry if you get stuck. Use the rest of your plan template to brainstorm ideas and tactics. You’ll quickly find these answers and possibly new directions as you explore your ideas and options.

2. Offer and Value Proposition

This is where you detail your offer, such as selling products, providing services or both, and why anyone would care. That’s the value proposition. Specifically, you’ll expand on your answers to the first and fourth bullets from your mission/vision.

As you complete this section, you might find that exploring value propositions uncovers marketable business opportunities that you hadn’t yet considered. So spend some time brainstorming the possibilities in this section.

For example, a cottage baker startup specializing in gluten-free or keto-friendly products might be a value proposition that certain audiences care deeply about. Plus, you could expand on that value proposition by offering wedding and other special-occasion cakes that incorporate gluten-free, keto-friendly and traditional cake elements that all guests can enjoy.

3. Audience and Ideal Customer

Here is where you explore bullet point number three, who your business will benefit. Identifying your ideal customer and exploring a broader audience for your goods or services is essential in defining your sales and marketing strategies, plus it helps fine-tune what you offer.

There are many ways to research potential audiences, but a shortcut is to simply identify a problem that people have that your product or service can solve. If you start from the position of being a problem solver, it’s easy to define your audience and describe the wants and needs of your ideal customer for marketing efforts.

Using the cottage baker startup example, a problem people might have is finding fresh-baked gluten-free or keto-friendly sweets. Examining the wants and needs of these people might reveal a target audience that is health-conscious or possibly dealing with health issues and willing to spend more for hard-to-find items.

However, it’s essential to have a customer base that can support your business. You can be too specialized. For example, our baker startup can attract a broader audience and boost revenue by offering a wider selection of traditional baked goods alongside its gluten-free and keto-focused specialties.

4. Revenue Streams, Sales Channels and Marketing

Thanks to our internet-driven economy, startups have many revenue opportunities and can connect with target audiences through various channels. Revenue streams and sales channels also serve as marketing vehicles, so you can cover all three in this section.

Revenue Streams

Revenue streams are the many ways you can make money in your business. In your plan template, list how you’ll make money upon launch, plus include ideas for future expansion. The income possibilities just might surprise you.

For example, our cottage baker startup might consider these revenue streams:

• Product sales : Online, pop-up shops , wholesale and (future) in-store sales
• Affiliate income : Monetize blog and social media posts with affiliate links
• Advertising income : Reserve website space for advertising
• E-book sales : (future) Publish recipe e-books targeting gluten-free and keto-friendly dessert niches
• Video income : (future) Monetize a YouTube channel featuring how-to videos for the gluten-free and keto-friendly dessert niches
• Webinars and online classes : (future) Monetize coaching-style webinars and online classes covering specialty baking tips and techniques
• Members-only content : (future) Monetize a members-only section of the website for specialty content to complement webinars and online classes
• Franchise : (future) Monetize a specialty cottage bakery concept and sell to franchise entrepreneurs

Sales Channels

Sales channels put your revenue streams into action. This section also answers the “where will this happen” question in the second bullet of your vision.

The product sales channels for our cottage bakery example can include:

• Mobile point-of-sale (POS) : A mobile platform such as Shopify or Square POS for managing in-person sales at local farmers’ markets, fairs and festivals
• E-commerce platform : An online store such as Shopify, Square or WooCommerce for online retail sales and wholesale sales orders
• Social media channels : Facebook, Instagram and Pinterest shoppable posts and pins for online sales via social media channels
• Brick-and-mortar location : For in-store sales , once the business has grown to a point that it can support a physical location

Channels that support other income streams might include:

• Affiliate income : Blog section on the e-commerce website and affiliate partner accounts
• Advertising income : Reserved advertising spaces on the e-commerce website
• E-book sales : Amazon e-book sales via Amazon Kindle Direct Publishing
• Video income : YouTube channel with ad monetization
• Webinars and online classes : Online class and webinar platforms that support member accounts, recordings and playback
• Members-only content : Password-protected website content using membership apps such as MemberPress

Nowadays, the line between marketing and sales channels is blurred. Social media outlets, e-books, websites, blogs and videos serve as both marketing tools and income opportunities. Since most are free and those with advertising options are extremely economical, these are ideal marketing outlets for lean startups.

However, many businesses still find value in traditional advertising such as local radio, television, direct mail, newspapers and magazines. You can include these advertising costs in your simple business plan template to help build a marketing plan and budget.

5. Structure, Suppliers and Operations

This section of your simple business plan template explores how to structure and operate your business. Details include the type of business organization your startup will take, roles and responsibilities, supplier logistics and day-to-day operations. Also, include any certifications or permits needed to launch your enterprise in this section.

Our cottage baker example might use a structure and startup plan such as this:

• Business structure : Sole proprietorship with a “doing business as” (DBA) .
• Permits and certifications : County-issued food handling permit and state cottage food certification for home-based food production. Option, check into certified commercial kitchen rentals.
• Roles and responsibilities : Solopreneur, all roles and responsibilities with the owner.
• Supply chain : Bulk ingredients and food packaging via Sam’s Club, Costco, Amazon Prime with annual membership costs. Uline for shipping supplies; no membership needed.
• Day-to-day operations : Source ingredients and bake three days per week to fulfill local and online orders. Reserve time for specialty sales, wholesale partner orders and market events as needed. Ship online orders on alternating days. Update website and create marketing and affiliate blog posts on non-shipping days.

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6. Financial Forecasts

Your final task is to list forecasted business startup and ongoing costs and profit projections in your simple business plan template. Thanks to free business tools such as Square and free marketing on social media, lean startups can launch with few upfront costs. In many cases, cost of goods, shipping and packaging, business permits and printing for business cards are your only out-of-pocket expenses.

Cost Forecast

Our cottage baker’s forecasted lean startup costs might include:

Gross Profit Projections

This helps you determine the retail prices and sales volume required to keep your business running and, hopefully, earn income for yourself. Use product research to spot target retail prices for your goods, then subtract your cost of goods, such as hourly rate, raw goods and supplier costs. The total amount is your gross profit per item or service.

Here are some examples of projected gross profits for our cottage baker:

Bottom Line

Putting careful thought and detail in a business plan is always beneficial, but don’t get so bogged down in planning that you never hit the start button to launch your business . Also, remember that business plans aren’t set in stone. Markets, audiences and technologies change, and so will your goals and means of achieving them. Think of your business plan as a living document and regularly revisit, expand and restructure it as market opportunities and business growth demand.

Is there a template for a business plan?

You can copy our free business plan template and fill in the blanks or customize it in Google Docs, Microsoft Word or another word processing app. This free business plan template includes the six key elements that any entrepreneur needs to consider when launching a new business.

What does a simple business plan include?

A simple business plan is a one- to two-page overview covering six key elements that any budding entrepreneur needs to consider when launching a startup. These include your vision or mission, product or service offering, target audience, revenue streams and sales channels, structure and operations, and financial forecasts.

How can I create a free business plan template?

Start with our free business plan template that covers the six essential elements of a startup. Once downloaded, you can edit this document in Google Docs or another word processing app and add new sections or subsections to your plan template to meet your specific business plan needs.

What basic items should be included in a business plan?

When writing out a business plan, you want to make sure that you cover everything related to your concept for the business,  an analysis of the industry―including potential customers and an overview of the market for your goods or services―how you plan to execute your vision for the business, how you plan to grow the business if it becomes successful and all financial data around the business, including current cash on hand, potential investors and budget plans for the next few years.

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Krista Fabregas is a seasoned eCommerce and online content pro sharing more than 20 years of hands-on know-how with those looking to launch and grow tech-forward businesses. Her expertise includes eCommerce startups and growth, SMB operations and logistics, website platforms, payment systems, side-gig and affiliate income, and multichannel marketing. Krista holds a bachelor's degree in English from The University of Texas at Austin and held senior positions at NASA, a Fortune 100 company, and several online startups.

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The Benefits of Using a Sample Business Plan Template for Your Startup

Starting a new business can be an exciting yet challenging endeavor. One of the most important steps in setting up your startup is creating a solid business plan. A well-crafted business plan serves as a roadmap for your company’s success, outlining your goals, strategies, and financial projections. While writing a business plan from scratch may seem daunting, there is a valuable tool that can simplify the process – the sample business plan template. In this article, we will explore the benefits of using a sample business plan template for your startup.

Provides Structure and Guidance

One of the primary advantages of using a sample business plan template is that it provides structure and guidance throughout the planning process. Templates are designed to cover all essential aspects of a comprehensive business plan, including an executive summary, market analysis, marketing strategy, financial projections, and more. By following the template’s sections and prompts, you can ensure that you don’t overlook any critical components necessary for creating an effective plan.

Saves Time and Effort

Developing a well-rounded business plan requires extensive research, analysis, and careful consideration. Writing each section from scratch can be time-consuming and overwhelming, especially if you lack experience in business planning. However, by utilizing a sample business plan template as your starting point, you can save significant time and effort. Templates provide pre-written content that you can customize to fit your specific industry or niche. This allows you to focus on tailoring the details to align with your startup’s unique vision rather than starting from scratch.

Offers Industry Best Practices

A high-quality sample business plan template often incorporates industry best practices into its structure and content. These templates are typically created by experienced professionals who have expertise in various industries or have successfully launched their own startups before. By leveraging their knowledge through these templates, you gain insights into what works well within your industry when it comes to business planning. This can help you avoid common pitfalls and identify key strategies that have proven successful for similar businesses.

Facilitates Collaboration and Communication

Creating a business plan is not a solo endeavor – it requires collaboration and communication with your team, advisors, or potential investors. Using a sample business plan template can facilitate this collaboration by providing a standardized format that everyone can easily understand and work with. Templates offer clear sections for each aspect of the plan, making it easier to assign tasks, gather input, and ensure consistency throughout the document. This collaborative approach fosters better communication among team members and stakeholders, leading to a more cohesive and well-rounded business plan.

In conclusion, utilizing a sample business plan template offers several benefits for startups. It provides structure, saves time and effort, incorporates industry best practices, and facilitates collaboration and communication. By leveraging these templates as starting points for your business planning process, you can set your startup on the right path towards success. Remember to customize the template to fit your specific needs and vision while maintaining a clear focus on your goals.

This text was generated using a large language model, and select text has been reviewed and moderated for purposes such as readability.

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The Best Project Plan Template

• Michaela Rollings
• August 23, 2024

Table of Contents

In any organization, project plans are essential documents that outline the goals, objectives, scope, timelines, resources, and potential risks associated with a specific project.

These plans provide a roadmap for all team members to follow and help ensure that everyone is on the same page and working towards a common goal. Better yet, having a project plan template make that roadmap even more clear and replicable across teams.

The Main Benefits of Project Plans

One of the key benefits of project plans is that they provide a clear direction for all team members involved in the project. By clearly outlining the goals and objectives of the project, team members can understand what is expected of them and how their individual contributions fit into the bigger picture. This helps to align everyone’s efforts towards achieving the desired outcome – and that’s even easier with a project plan template.

Project plans also help to ensure that projects are completed on time and within budget. By outlining the specific timelines and resources required for each phase of the project, project managers can better track progress and make adjustments as needed to keep the project on track.

Hive’s to-do list view pictured above.

This helps to mitigate the risk of delays and cost overruns, which can have a significant impact on the overall success of the project.

Additionally, project plans help to identify potential risks and challenges that may arise during the project. By considering these factors early on, project managers can develop strategies to address them proactively and minimize their impact on the project.

This can help to improve the overall chances of success and reduce the likelihood of unforeseen issues derailing the project. Making project plans repeatable with a project plan template also helps the reduction of issues that could arise.

What Does A Project Plan Template Help You Do?

What’s even better than any old project plan? A free project plan template, built custom for your team and needs. When you’re just starting out, you don’t always have the money, time, or energy to spend on paying someone to build out a complex plan. But our free project plan plan template will cover that for you.

Set Clear Goals

One of the key reasons why project plans are important is that they help teams to clarify their vision and set concrete goals for their project. By outlining the project’s mission, objectives, and strategies, a project plan provides a framework for decision-making and helps to keep the team or organization on track towards its long-term goals – it can even help you automate them.

Without a clear plan in place, it can be easy for teams to lose focus and become overwhelmed by day-to-day operations. That’s why we’re helping you develop this project plan template – it will take you 60 seconds to create, and it will save you HOURS down the line. Here’s why it’s helpful to have a project plan template.

Communicate With Stakeholders

In addition to providing a roadmap for the business, a well-developed project plan also serves as a communication tool for stakeholders. Whether it’s potential investors, employees, or suppliers, a project plan can help to convey the project’s goals and objectives in a clear and concise manner. There’s no easier way to ensure you’re all on the same page than a project template.

This can be particularly important when seeking financing, as lenders and investors will want to see a well-thought-out plan that demonstrates the company’s potential for success.

Anticipating Future Challenges

Another key reason why project plans and a project plan template are important is that they help store and replicate successful past projects. If you’ve got a project template that has been battle-tested and used throughout the course of months and years, it’s easier to guarantee project success.

This level of preparation can also help the business to navigate unforeseen challenges and adapt to changing market conditions.

6 Steps to Writing A Project Plan

Writing a project plan is essential for effectively managing and executing a project. To ensure success, it is important to follow a systematic approach to develop a comprehensive and well-thought-out plan.

The following are the steps needed to write a project plan, whether it’s from a project plan template for Word, or something more complex, like an agile project plan template:

1. Define the project scope: Identify the objectives, deliverables, timeline, budget, and resources required for the project. Clearly outline what needs to be accomplished and the constraints that need to be considered.

2. Identify key stakeholders: Determine who will be involved in the project and their roles and responsibilities. This includes team members, sponsors, clients, and any other relevant parties.

3. Create a work breakdown structure: Break down the project into smaller tasks and subtasks to organize and prioritize the work that needs to be done. This will help ensure that all aspects of the project are considered and accounted for.

4. Develop a timeline: Create a schedule that outlines the start and end dates of the project, as well as key milestones and deadlines. This will help keep the project on track and ensure that tasks are completed in a timely manner.

5. Assign resources: Allocate resources, such as personnel, equipment, and budget, to each task in the project plan. This will help ensure that the necessary resources are available to complete the project successfully.

6. Monitor and control progress: Establish metrics and key performance indicators to track progress and measure the success of the project. Regularly review and update the project plan to address any deviations or issues that arise.

By following these steps, you can develop a well-structured and detailed project plan that will guide the successful completion of your project.

Get Hive’s Free Project Plan Template

We know how hard it is to get started with a business – we started one too! Hive has been around since 2016, but we know that it can be so tricky to get out of the gate.

The good news is that we’ve used our project planning and AI superpowers to bring you a free business plan template that can be customized to your EXACT needs. How you might ask? Our super impressive new AI tool .

All you have to do to get your own personal business plan is visit mind.hive.com and type in the following command: “Create a project plan for me.”

You’ll be able to add in the amount of days you’d like it to plan across, and you can also interact in real-time and add feedback to the AI planner. So if it spits out something that you don’t like, you can just ask the AI to change it.

From there, you can get and download your project plan, get started, and head for world domination. Getting a free business plan template has really never been easier. And you’re in total control!

Best Prompts to Generate a Great Project Plan

With Hive’s project action plan template generator, you’ll need to feed a prompt to the AI. Here are a few places to start:

• “Generate a project plan for a new startup in the cosmetics space looking to launch their first product”
• “Build out a project plan for a construction company looking to kick off three local house builds at once”
• “List the steps I’d need to take to start a business in Colorado”
• “Generate a free startup plan for a non-profit dog adoption agency in Minnesota”

These are just a few places to start! The sky is the limit, and we want this project plan template to be as customized as possible.

Have any feedback for us about project plans? Email us at [email protected].

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