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

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

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

10-step checklist for starting a craft business

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

Step 1: Identify your niche.

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

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

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

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

How much do you need?

with Fundera by NerdWallet

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

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

Step 2: Write a business plan.

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

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

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

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

Step 3: Choose a business name.

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

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

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

Step 4: Select a business entity.

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

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

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

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

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

Step 5: Define your products and services.

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

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

What types of craft products inspire you?

What crafts do you have experience making?

How do these crafts fit into your niche?

What's the market demand for these products?

Where will be the best place to sell these crafts?

What will you charge?

Where will you purchase your supplies?

How much will supplies cost?

How much will production cost?

Do you still need to research or develop your product?

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

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

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

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

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

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

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

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

Step 7: Decide where to sell your crafts.

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

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

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

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

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

Step 8: Find small business funding.

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

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

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

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

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

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

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

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

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

Step 9: Order and organize your craft supplies.

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

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

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

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

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

Start Your Dream Business

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...

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

Back to All Business Ideas

Written by: Carolyn Young

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

Edited by: David Lepeska

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

Published on January 13, 2022 Updated on March 13, 2024

Investment range

$1,050 - $6,600

Revenue potential

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

Time to build

0 – 3 months

Profit potential

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

Industry trend

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

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

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

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

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

Craft industry trends

Industry size and growth.

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

Trends and challenges

Trends in the craft industry include:

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

Some challenges also face the industry including:

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

How much does it cost to start a craft business?

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

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

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

How much can you earn from a craft business?

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

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

What barriers to entry are there?

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

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

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How to Start a Crochet Business

How to Open an Art Gallery

Step 2: hone your idea.

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

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

Why? Identify an opportunity

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

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

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

What? Determine your products or services

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

How much should you charge for crafts?

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

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

Who? Identify your target market

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

Where? Choose your business premises

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

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

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

Step 3: Brainstorm a Craft Business Name

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

Here are some ideas for brainstorming your business name:

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

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

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

Find a Domain

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

Step 4: Create a Craft Business Plan

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

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

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

Step 5: Register Your Business

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

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

Choose where to register your company

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

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

Choose your business structure

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

Here are the main options:

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

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

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

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

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

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

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

Step 7: Fund your Business

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

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

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

Step 8: Apply for Business Licenses and Permits

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

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

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

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

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

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

Step 9: Open a Business Bank Account

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

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

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

Step 10: Get Business Insurance

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

Here are some types of insurance to consider:

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

Step 11: Prepare to Launch

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

Essential software and tools

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

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

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

Develop your website

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

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

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

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

Kickstart Marketing

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

Digital Presence and Online Marketing

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

Content Marketing and Engagement

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

Experiential and In-Person Engagements

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

Collaborations and Community

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

Customer Relationship and Loyalty Programs

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

Promotions and Advertising

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

Focus on USPs

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

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

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

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

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

Step 12: Build Your Team

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

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

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

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

• Craft Business FAQs

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

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

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

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

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

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

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

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

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

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

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

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

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

What Do I Need to Start a Craft Business?

1. identify a gap in the market.

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

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

→ Click Here to Launch Your Online Business with Shopify

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

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

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

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

2. Get to Know Your Audience Better

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

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

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

When researching your audience, think about their:

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

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

3. Create a Business Plan

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

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

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

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

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

4. Get Crafting

  Now it’s time to have some fun! 

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

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

5. Find a Manufacturer or Supplier

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

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

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

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

6. Develop Your Brand

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

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

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

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

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

7. Fulfill Your Legal and Logistics Requirements

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

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

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

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

8. Build Your Online Craft Store

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

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

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

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

Some of the most important points to consider include:

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

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

9. Start Marketing Your Crafts

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

For instance:

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

Online Craft Store Examples

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

1. Artisaire

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

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

2. The Honeybunch Shop

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

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

3. Cedar and Sail  

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

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

Time to Get Crafty!

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

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

Summary: How to Start a Craft Business in 2021

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

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

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

Updated:   January 25, 2024

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

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

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

1. Conduct Craft Market Research

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

There are several factors driving growth in the craft industry:

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

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

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

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

2. Analyze the Competition

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

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

Use these methods to better understand your competition.

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

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

3. Costs to Start a Craft Business

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

Start-up Costs

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

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

Ongoing Costs

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

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

4. Form a Legal Business Entity

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

Sole Proprietorship

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

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

Partnership

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

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

Limited Liability Company (LLC)

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

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

Corporation

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

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

5. Register Your Business For Taxes

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

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

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

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

To complete the EIN application:

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

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

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

6. Setup Your Accounting

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

Accounting Software

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

Hire an Accountant

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

Open a Business Bank Account

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

Apply for a Business Credit Card

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

7. Obtain Licenses and Permits

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

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

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

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

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

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

8. Get Business Insurance

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

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

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

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

The application process includes:

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

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

9. Create an Office Space

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

Home Office

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

Coworking Space

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

Retail Shop

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

Commercial Office

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

10. Source Your Equipment

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

Here are some options for sourcing these startup necessities:

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

Buying Used

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

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

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

11. Establish Your Brand Assets

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

Getting a Business Phone Number

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

Creating a Logo and Brand Assets

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

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

Creating Business Cards and Signage

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

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

Purchasing a Domain Name

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

Building a Website

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

12. Join Associations and Groups

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

Here are some options to consider:

Local Associations

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

Local Meetups

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

Facebook Groups

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

13. How to Market a Craft Business

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

Personal Network

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

Digital Marketing

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

Traditional Marketing

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

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

14. Focus on the Customer

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

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

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

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BUSINESS STRATEGIES

11 craft business ideas combining creativity and entrepreneurship

• Nirit Braun
• Dec 24, 2023
• 12 min read

A craft business involves creating and selling handmade items or products and they’re good business ideas to start for several reasons. Foremost amongst these is the opportunity to turn your hobbies and artistic skills into a profitable venture. But before you go about starting a business , you’ll need to consider which crafts to make and sell. That’s why we’ve put together this list of craft business ideas to help you get started with making money as a crafter .

11 craft business ideas to start today

Unleash your creative spirit and explore the world of crafting with these 11 business ideas. From the art of candle making to crafting exquisite jewelry and offering craft classes, these DIY business ideas offer endless opportunities for artistic expression and entrepreneurial success.

Candle making

Jewelry business

T-shirt design

Soap making

Greeting cards

Flower business

Quilting, crochet and knitting

Craft supplies

Calligraphy

Ceramics and pottery

Craft classes and courses

01. Candle making

A candle business is a type of business that involves the making and selling of candles. Candles are typically made from wax and come in various shapes, sizes, and colors. Candle businesses can range from small, home-based operations to larger-scale enterprises. Here's why starting a candle business can be a good craft business idea for small business owners or artists.

Candle-making is an affordable business to start on a small scale, requiring minimal upfront investment in wax, wicks, fragrances, and basic equipment. Candles enjoy stable year-round demand with seasonal peaks during holidays and events, making them suitable for a broad target market, including home decor, wedding favors, and gifts. It also means candle making can be a lucrative way to make money as an artist . Embracing natural and eco-friendly materials can provide a unique selling point in response to consumer demands. The ability to operate from home reduces overhead costs and online sales platforms expand your reach.

Learn more: How to make a website

When it comes to promoting this type of craft business idea, participating in local craft fairs, farmers' markets, or artisan events can help you connect with your community and build a customer base. It's also an excellent way to test your products and gather feedback.

While starting a candle business has its advantages, it's important to conduct market research, understand the competition, and develop a solid business plan. Building a strong brand, marketing your candles effectively, and maintaining quality are key to success in this industry.

Be inspired: Candle business name ideas

02. Jewelry business

A jewelry business is a business that involves the designing, creation and selling of jewelry. This can include a wide range of items such as necklaces, bracelets, earrings, rings, brooches, and more. Starting a jewelry business can be a good craft business idea for several reasons.

Jewelry making allows for a high level of creativity and artistry. You can design and craft unique and personalized pieces that reflect your style and vision and then work to turn them into a profitable venture.

Darby Pritchards is a jewelry company based in Oldbury, England. Founders Andrew Darby, Faye Darby, Craig Pritchard, and Terri Pritchard sold their first piece of jewelry in January 2019. Their business began with the Wix eCommerce platform and a little inspiration from their loved ones, “Our wives love jewelry, so we thought, ‘Let's do something mid-range and affordable. Nice pieces that last well.’”

Many jewelry businesses can be started with a relatively low initial investment, especially if you're making the jewelry yourself from home. You can begin on a small scale and expand as your business grows. Jewelry can be sold online, through your own website , allowing you to reach a global audience from your own home or studio.

Be inspired: Jewelry business name ideas

It's important to note that while starting a jewelry business has many advantages, it also comes with challenges. Pivoting from a purely artistic undertaking to a business one is not always seamless. Researching your target market and ensuring the quality of your products are essential for success in the jewelry business.

03. T-shirt design

A t-shirt design business is a business that involves creating, designing and selling custom or creatively designed t-shirts. As part of this craft business idea, t-shirts can feature various graphics, illustrations, slogans or artwork. T-shirt design businesses can focus on various clothing business niches, such as sports, music, fashion, humor, activism or local culture.

Looking for an example? Worst Year Ever is a quirky and fun t-shirt design company that specializes in humorous and topical t-shirt designs.

Starting a t-shirt design business allows you to express your creativity and artistic talents, and gives you the freedom to create unique and visually appealing designs while building a profitable venture at the same time.

You can start this craft business idea with low startup costs, especially if you choose to start a print-on-demand business . Print on demand allows you to create custom-designed t-shirts and other apparel without the need for large upfront investments in printing equipment, inventory, or fulfillment services. You can use a print-on-demand provider, like Printify to do that while you focus on the designs.

T-shirt design is a craft business idea that can be started from home, you just need to create an eCommerce website or online store in order to launch and run it.

Then once you’ve established your brand and customer base, you can expand your product line to include other clothing items, accessories or merchandise related to your designs.

Be inspired: Clothing brand names , Clothing business ideas , Kidswear business ideas

It's important to consider trends, competition and customer preferences when starting this craft business idea. Additionally, understanding the legal aspects of design, such as copyright and trademark laws, is crucial to protect your intellectual property and avoid potential legal issues.

Tip: How to create a clothing line business plan

04. Soap making

A soap-making business is a business that involves creating, crafting and selling handmade soaps. This can include various types of soap, including bar soaps, liquid soaps and specialty soaps, often incorporating different scents, colors, textures and ingredients.

Soap making is a creative and artisanal craft business idea that allows you to express your creativity and artistry through the design and creation of unique soap products. You can experiment with various shapes, colors, fragrances and ingredients to create one-of-a-kind soap. Handmade soaps are popular as gifts for various occasions - holidays, birthdays, weddings and baby showers which can mean consistent demand for them.

Soap craft business examples for inspiration:

Ben’s Basics : real natural soap

The Soap BeeZZ : rich and indulgent all-natural soaps

404 Lather Soap Co: damn good handmade soap with essential oils

Soaps of Babylon : vegan handcrafted, organic soaps

Starting a soap-making business typically requires a relatively low initial investment compared to many other business ideas . You can begin on a small scale and gradually expand as your business grows. This can also make it a good potential business idea for kids .

Soaps can be sold online by starting an eCommerce business , meaning you won’t need to rent a physical store to sell them. Selling online via ecommerce also allows you to tap into a much wider potential market and customer base. Handmade soap can cater to a diverse market, from individual consumers to businesses such as boutique hotels, spas or gift shops.

It's important to conduct market research, understand customer preferences and invest in high-quality ingredients to produce soap that meets safety and quality standards. Additionally, marketing your products effectively, developing a strong online presence and complying with any legal regulations related to soap production are essential for success with this craft business idea.

05. Greeting cards

A greeting card business is a business that involves creating, designing, and selling greeting cards for various occasions and events. Greeting cards are typically made from paper or cardstock and feature messages and designs suitable for birthdays, weddings, holidays, anniversaries and graduations.

As a craft business idea, this type of business allows artists to make a business from their creativity and talents. There’s also lots of room to experiment with different styles, colors and techniques.

Check out this greeting card business Pat-orama for further inspiration.

Starting a greeting card business usually requires a relatively low initial investment. You can begin on a small scale, and as your business grows, you can invest in better equipment and materials. It’s also a business that can be started from home and promoted online this helps to minimize initial investment costs and the financial risk in starting this type of craft business idea.

Learn more: Online business ideas

With the right combination of creativity, business skills, and marketing, a greeting cards business can be a fulfilling and profitable craft business venture.

06. Flower business

A flower business generally involves the arrangement and sale of flowers and floral products. It can encompass various floral business niches, including floristry, flower farming or even flower-related crafts and products.

Depending on the specific niche within the flower industry that you choose to start, startup costs can be relatively low. For example, starting with a home-based flower arranging business, or pressing flowers to make greeting cards, can be a cost-effective way to start a craft business idea using flowers.

Flower business examples to inspire:

Sherwood Roots : local flower farm offering bouquets and arrangements

The Putnam Market: customized flower arrangements for events.

To make a flower business successful, it's essential to have a strong understanding of flowers, their care and various floral design techniques.

07. Quilting, crochet and knitting

Quilting, crochet, and knitting businesses are versatile craft ideas centered on creating handmade textile items through various fabric or yarn-based techniques. Quilting, a beloved tradition, involves skillfully sewing together layers of fabric to create a warm and decorative quilt or blanket. These quilts can be tailored to the customer's preferences, making them a cherished personal item or a thoughtful gift. On the other hand, crochet entails creating fabric by interlocking loops of yarn using a hooked needle. This technique can be used to produce a wide array of items, from cozy clothing and baby blankets to scarves, hats, soft toys, and home decorations like tablecloths and sofa covers.

Knitting, the art of working with interlocking loops of yarn using needles, offers endless creative possibilities. Knitters can fashion unique clothing, stylish accessories, and beautiful blankets. One of the appealing aspects of knitting is the high degree of customer personalization it allows, as you can craft items tailored to specific preferences.

The beauty of these craft business ideas lies in their simplicity and flexibility. You can easily start them from the comfort of your own home, keeping initial overhead costs to a minimum. It can be started as a part-time business idea , depending on your other commitments. Depending on your marketing efforts, they can be scaled up to meet the demands of a growing customer base, making them accessible and accommodating even for those seeking a part-time or side hustle business.

08. Selling craft supplies

Selling craft supplies as a business idea involves sourcing, stocking and selling various crafting materials, tools and supplies to individuals and businesses engaged in crafting. These supplies can encompass a wide range of items, including fabrics, yarn, beads, paper, paints, brushes, sewing notions, needles, patterns and much more. This craft business idea allows you to help artists turn their ideas into creations even if you don’t have the same crafting talent or ability.

Crafting is a popular and growing hobby. People of all ages and backgrounds engage in various forms of crafting, from sewing and knitting to scrapbooking and woodworking. This growing market presents a steady demand for craft supplies that you can then meet. It also appeals to a broad customer base, including DIY enthusiasts, hobbyists, artists, schools and craft business owners. This diversity allows you to target a broad customer base.

You can also consider scaling your business by offering educational content, tutorials or workshops to help customers learn how to use the supplies you sell more effectively. It's also important to stock a wide variety of quality supplies and provide excellent customer service to sell crafts online .

09. Calligraphy

A calligraphy business offers calligraphy services, selling calligraphy artwork and potentially also teaching calligraphy. Calligraphy is the art of writing, often used for special events, personalized gifts, home decor and commercial purposes.

If you’re looking for a craft business idea that’s highly artistic and creative and allows you to express your unique style and talent, calligraphy may be the right venture for you. Calligraphy services can be highly personalized and interesting to create. You can create custom calligraphy for various occasions, including weddings, special events, awards, certificates and gifts. Calligraphy can also be used to make greeting cards or sold online through your website.

Looking to scale a calligraphy business? You can also consider offering calligraphy workshops, and classes as an additional revenue stream while helping others learn the art.

To succeed with this craft business idea, it's essential to market your services and products effectively, maintain a strong online presence with a business website and provide excellent customer service.

10. Ceramics and pottery

A ceramics and pottery business involves creating, designing and selling handcrafted ceramic and pottery items. This can include a wide range of products, such as pottery for everyday use, decorative ceramic pieces, dinnerware, mugs, vases and sculptures.

Handmade ceramics and pottery items have a personal touch and uniqueness that mass-produced items often lack. This can be a strong selling point for your business and make it easier to promote and market. It’s also a way to stand out in a competitive craft market. Another way to stand out is to create custom ceramics for specific customer needs and by offering personalized, bespoke pieces to set your skills and business apart.

Be inspired by these ceramics and pottery business examples:

Bliss with Clay Pottery by Judy Filler: handcrafted pottery artworks

Gigi Pottery : handmade ceramics and studio

Kloe k Pottery : handmade and poured pottery including mugs, bowls and earrings

11. Craft classes and courses

Craft classes and courses are versatile educational programs designed to teach a wide range of crafting skills and techniques. These classes cover an array of crafts, including painting, knitting, sewing, woodworking, pottery and calligraphy, and can be tailored to suit various skill levels, interests, and ages. You can offer beginner, intermediate, and advanced classes, as well as specialized courses for specific crafts or techniques.

One of the key benefits of offering craft classes and courses is the revenue they can generate. You can charge fees for participating in classes, workshops, and materials, making it a viable business opportunity. This business has very low startup costs and lower financial risk, making it accessible for those looking for a low-cost venture.

To diversify your course offerings, consider teaching various crafts to reach different target markets and appeal to a wide range of students with varied interests. Craft classes can be conducted in physical locations, such as studios, community centers, and schools, or offered online through virtual classrooms, making it a flexible business model.

To launch a successful craft class and course business, it's essential to have expertise in the crafts you teach and develop a curriculum that is both engaging and effective. Effective marketing through various channels, offering a range of course options, and providing excellent teaching materials and resources are key to attracting students.

How to turn a craft business idea into a successful business

Turning a craft business idea into a successful venture requires careful planning and focus. Here are some of the ways to do just that:

Master your chosen craft first and foremost. Invest time in developing your skills and ensuring your craft creations are of the highest quality.

Research the market to identify demand for your craft. Consider creating a portfolio of your products to test their appeal and gather feedback.

Create a detailed business plan that includes your mission, vision, goals, target market, competition analysis, pricing strategy, financial projections and marketing plan.

Register your business , obtain any necessary permits or licenses and set up your financial structure. Consult with an accountant to manage your potential business taxes, business banking and financial records.

Develop a strong brand identity that sets you apart. This includes deciding how to name your business , creating a logo and coming up with a unique selling proposition (USP).

Build an online presence through a website , social media profiles and online marketplaces like Etsy ( How to sell on Etsy ). Showcase your craft products or services with high-quality photos and clear product descriptions.

Something that I always heard growing up was that you could be the smallest fish in the sea, but if you have a professional website and branding, people will take you seriously.

When I sent my website to potential retailers early on, we were making seven candles at a time out of my small kitchen. I think it goes to show that when you have a professional brand, the goals and dreams that you have are limitless. (Coal and Canary now) produce more than 1000+ a day from their 10,000 sq foot warehouse.)

Amanda Buhse, Owner + Chief Creative Officer of Coal and Canary

Source materials and supplies efficiently, considering quality and cost. Keep track of your inventory and restock as needed.

Organize a dedicated workspace that's comfortable and well-equipped for your craft. Ensure safety measures are in place if necessary.

Calculate your costs (materials, labor, overhead) and set competitive yet profitable prices. Be prepared to adjust pricing as you gain more experience and market insights.

Develop a comprehensive marketing strategy that includes online and offline tactics. Utilize social media, email marketing, content marketing and participation in craft shows or local markets.

Connect with other artists and crafters. Collaborations and partnerships can help grow your business.

Stay updated on industry trends, continually improve your craft and be open to innovation. Listen to customer needs and adjust your offerings accordingly.

Don't hesitate to seek advice and support from mentors, business advisors and craft business communities. Learning from others can be invaluable.

Other business ideas to consider

Service business ideas

Businesses to start with little money

Unique business ideas

Online business ideas

Low-cost business ideas

Side business ideas

Outdoor business ideas

Home-based businesses

Mobile business ideas

Family business ideas

Business ideas for teens

Small town business ideas

Rental business ideas

Food business ideas

Clothing business ideas

Beauty business ideas

Kidswear business ideas

Dropshipping business ideas

Business ideas for students

Business ideas for teachers

Recession-proof busness ideas

Business ideas for kids

Craft business ideas FAQ

What are some popular craft business ideas.

Creating custom jewelry pieces, such as necklaces, bracelets, earrings, and rings, using various materials like beads, gemstones, metals, and wire. Crafting handmade candles in a variety of scents, shapes, and sizes for decorative and aromatic purposes. Producing artisanal soaps with natural ingredients and essential oils, catering to customers seeking high-quality, skin-friendly products. Designing and sewing handcrafted quilts, often created for warmth and decorative purposes. Crafting knitted and crocheted items, including scarves, blankets, clothing and accessories, are known for their warmth and style.

What are some of the most profitable craft business ideas?

How to start a craft business from home, which handmade crafts sell the most, related posts.

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Partners for life: 7 things to look for in a B2B partnership

The modern seller's guide to eCommerce photography

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Crafting a business plan: a step-by-step guide.

Are you eager to start a crafting business but unsure where to start? At BusyBead, we understand that it can be challenging to launch a successful crafting business without a clear roadmap. Sensible crafting business planning is crucial to achieve long-term success. Engaging in comprehensive research and formulating a business plan will help you understand your goals and lay a strong foundation for your business.

In this article, we aim to provide you with a crafting business plan step-by-step guide, which will comprehensively cover every aspect of the business and equip you with the tools you need to refine your vision for your crafting business. In the next sections, we will outline the essential components to help you establish a robust strategy for your crafting business plan. We'll begin by giving you a brief overview of BusyBead's experience and discuss why you need a crafting business plan in the first place.

Crafting Business Plan - Why is it required?

A crafting business plan is a fundamental tool that outlines your entire business vision. It is a roadmap that gives direction to your business, allows you to track your progress, and helps you stay focused on your goals. Here are some reasons why crafting a business plan is necessary:

Market Analysis of Crafting Industry Conducting market analysis is crucial to determine the demand and supply side of the crafting industry. A comprehensive understanding of the industry and competition is imperative in identifying the opportunities and challenges. Researching competition includes looking at their product range, pricing structure, and marketing strategies. The findings can help in determining the critical factors for your business's success and devise a unique business plan that stands out in the market.

Setting SMART Goals A crafting business plan should define your mission and vision by setting specific, measurable, achievable, relevant, and time-bound (SMART) goals. Each goal should align with your business objectives and have assigned resources that work towards accomplishing them. SMART goal setting allows you to stay on track, measure performance, and make informed decisions if anything goes astray.

Crafting Business Plan Checklist A crafting business plan checklist covers the fundamental areas that a business plan should address. It comprises an executive summary, market analysis, product descriptions, strategy development, sales and marketing plans, financial projections, and more. The checklist ensures that your business plan is comprehensive and covers all the essential parts that seek investors' attention.

A comprehensive and well-crafted business plan will increase your chances of success in the competitive crafting industry. The next section of our Crafting Business Plan guide discusses knowing your products, which is crucial in making informed business decisions.

Knowing Your Products

As a crafting business owner, it is essential to know your products inside and out. At BusyBead, we pride ourselves on offering high-quality silicone beads that cater to a range of different requirements for crafting, art, and design. Our beads are known for their durability, flexibility, heat and water resistance, and overall quality.

It is important to cater to your buyer personas to ensure you are delivering a product that meets their specific needs. Knowing the requirements of your target audience can help you create a product catalog that provides various options to choose from, meeting your audience's various requirements.

Creating a product catalog is essential to showcase your entire range of products, including new product launches, best-sellers, and special or seasonal collections. A well-curated catalog can provide the customer with comprehensive information regarding the products, making it easier for them to make an informed purchase decision.

It is essential to take the time to understand your products, and creating a comprehensive product catalog can help you stay organized and keep track of your products efficiently. At BusyBead, we ensure that our product catalog is updated regularly to include all our product information, making it easier for our customers to understand the products and make informed decisions.

Setting up your Crafting Business

Starting a crafting business can be an exciting and rewarding adventure, but it's important to set it up properly so that you can avoid legal issues and create a professional image. In this section, we will go over some of the essentials for setting up your crafting business.

Setting up Your Business Legally

One of the most important aspects of setting up your business is making sure you are doing it legally. It may be a good idea to start small and grow from there. Use the following steps to set up properly:

• Research and register your business name
• Acquire necessary business permits and licenses
• Decide on a legal entity status (sole proprietorship, partnership, LLC, etc.)
• Obtain an Employer Identification Number (EIN)
• Open a business bank account
• Install accounting software, if applicable

Crafting Space Essentials

Before setting up the physical space, it is important to understand the needs for your crafting business. Depending on the type of crafting you will be doing, your space needs may vary. However, envisioning these steps can help in preparation:

• Determine the types of supplies you will need and where they will be stored
• Decide on the amount of space you will need for crafting
• Evaluate workspace arrangements and seating
• Establish proper lighting and ventilation

Inventory Management

For the business to run smoothly, it is important to manage your inventory appropriately. Accurately handling supply and demand in the proper way will prevent overstocking or shortages. Follow these steps in inventory management:

• Determine what constitutes as "low" or "in need of reordering"
• Keep accurate records of when you place and receive orders
• Evaluate Inventory Turnover to see what products are selling best

By setting up a legal business foundation, creating an efficient workspace, and managing inventory, you will lay the groundwork for crafting business success.

Running Your Crafting Business

After setting up your crafting business, the next step is to focus on marketing and selling strategies to boost your business' growth. On that note, let's discuss some of the marketing and selling strategies to make your business successful.

Marketing and Selling Strategies

• Identify buyer personas: It is important to know your target customer. This helps you to understand what drives their purchasing decisions.
• Develop a well-planned marketing strategy: Determine what channels you will use to market your products. Will it be social media, email marketing, or SEO strategies?
• Use influencer marketing: Collaborating with bloggers and influencers can help you reach your target audience more effectively.

Social Media Marketing

Social media marketing is one of the most effective ways to promote your craft business. It provides a great platform to showcase your products and interact with potential customers. Here are some tips for social media marketing:

• Identify your target audience and goals: Determine the type of content that resonates with your audience.
• Choose the right social media platforms: Understanding your audience helps you choose suitable social media platforms to promote your business.
• Create content that showcases your products: Make sure the content is visually compelling and showcases your products.

Developing a Launch Strategy

Developing a Launch Strategy can help you build a strong foundation for your business. Here are some tips for developing a launch strategy:

• Launch on social media: Share your launch date on social media platforms to generate buzz about your business.
• Utilize email marketing: Email marketing is an effective way to reach out to customers and introduce your brand.
• Host a launch event: Organizing an event to launch your business is a great way to get exposure and show off your products.

By integrating these strategies into your marketing plan and crafting a comprehensive launch strategy, your business can become the go-to source for quality craft supplies.

Expanding Your Crafting Business

Scaling up your crafting business is the ultimate goal of every business owner. You need to ensure that your business grows steadily to increase profits and gain more customers. Here are some tips on scaling up your crafting business:

Scaling Up Your Business

• Invest in high-quality equipment and materials – Upgrading your tools and using premium quality materials will help you to produce high-quality products. This will increase your reputation and attract more customers.
• Automate Processes – Automating your production process can increase your output and reduce labor costs. Consider using software that can streamline your business operations.
• Offer Different Products – Diversify your product offerings to avoid being dependent on one product. Determine your customer's needs and create new products that appeal to them.
• International Shipping
• Expand to international markets – You can increase your customer base and revenue by selling to international markets. However, it would be best to research and understand the legal requirements and cultural differences in the countries you are going to sell in.
• Select the right partner for shipping – Choose a reliable shipping company that can deliver your products efficiently and safely. Working with a company familiar with international exporting laws and customs is essential in minimizing shipping delays and customs hold-ups.

Hiring and Training Staff

• Hire a skilled team – Hiring the right team can help you to scale your crafting business. Find people who share your passion for crafting and who have relevant experience in your industry.
• Train your staff – Provide training opportunities that help your staff to develop their skills working in the crafting industry. Cross-training employees in more than one area can help streamline business activities.

If you want to scale a crafting business, you need to consider these points. Follow them to increase your revenue, gain more customers, and improve your business reputation.

Crafting Business Plan Conclusion

We hope that this guide has been helpful in providing detailed information to set up and grow your crafting business. Recapping the key points, the guide began with an introduction to BusyBead, followed by a comprehensive market analysis of the crafting industry. We also discussed the importance of creating SMART goals and crafting business plan checklists. Moving forward, we looked at the essentials of identifying buyer personas, creating product catalogs, and setting up your business legally.

Running your crafting business effectively is equally important. We provided several marketing and selling strategies, social media marketing tips, and a complete launch strategy. Further, we discussed growing your business by scaling it up, implementing international shipping solutions, and hiring/training staff.

The importance of a crafting business plan cannot be overstressed. A well-drafted plan helps you identify your goals, craft effective marketing strategies, and make informed decisions that can significantly impact your success in the crafting industry.

Finally, we hope that this guide encourages you to pursue your passion for crafting, and we wish you the very best as you embark on your journey towards becoming a successful crafter. Remember to stay creative, passionate, and driven towards achieving your goals while keeping your audience in mind.

Frequently Asked Questions

1. Why is a crafting business plan necessary? Having a crafting business plan helps you identify your goals, map out a strategy, and stay on track. It also helps you secure funding and attract investors.

2. What should I include in my crafting business plan? Your crafting business plan should include a market analysis, SMART goals, a product catalog, legal requirements, inventory management, marketing strategies, and a launch plan.

3. What are buyer personas and why are they important? Buyer personas are fictional representations of your ideal customers. Identifying your buyer personas helps you understand your target audience's needs and preferences, which helps you create and market products that appeal to them.

4. How do I legally set up my crafting business? You will need to obtain the necessary licenses and permits to operate in your state or municipality, register your business name, and obtain an EIN number for tax purposes.

5. How do I scale up my crafting business? You can scale up your crafting business by increasing your product offerings, expanding your customer base, and automating processes like inventory management and shipping. You can also consider hiring and training staff to help you manage bigger orders or to increase production capacity.

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Create a Craft Business Plan

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

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

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

Don't panic!

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

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

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

Create Your Craft Business Plan

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

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

Research craft trends for 2022

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

Action Steps:

1. Learn about craft trends for the current year

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

2. Find design trends on Pinterest

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

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

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

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

3. BONUS: Check out some trends reports yourself

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

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

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

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

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

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

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

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

Set realistic goals

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

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

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

6. Define your priorities

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

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

7. Consider where you want to be long term

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

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

8. Tie your goals to actions, not outcomes

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

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

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

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

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

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

Honestly, I didn't like many of them.

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

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

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

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

Build effective work habits

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

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

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

10. Determine the habit you want to build

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

Commit to building those one or two most impactful habits.

Stay focused.

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

11. Use proven habit building strategies

Habits work on a predictable cycle:

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

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

12. Manage your motivation

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

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

13. BONUS: Learn habit building strategies that Suit You

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

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

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

Research juried art shows & studio tours

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

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

14. Find craft shows & studio tours that interest you

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

15. Note important deadlines and application requirements

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

Important craft show dates include:

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

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

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

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

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

16. Get fabulous photos of your products

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

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

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

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

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

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

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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?

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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.

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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

Craft Business Plan Template & Guidebook

The creation of a detailed and comprehensive business plan is essential to the success of any craft business. The #1 Craft Business Plan Template & Guidebook provides aspiring entrepreneurs with all the necessary resources they need to make informed decisions and realize their dream of starting a business. This guide provides a detailed template along with helpful advice and guidance to help artisans plan the perfect craft business.

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

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How to Write a Craft Business Plan in 7 Steps:

1. describe the purpose of your craft business..

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

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

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

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

2. Products & Services Offered by Your Craft Business.

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

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

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

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

3. Build a Creative Marketing Stratgey.

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

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

Target market

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

Customer base 

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

Product or service description

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

Competitive analysis

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

Marketing channels

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

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

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

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

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How to start a craft business

Table of Contents

Find you niche

Register your business, make a business plan, insurance , find suppliers, choose your platform, online stores, physical shops, set up a craft stall, digital marketing, build a website, social media, make a google business profile , traditional marketing, record your business expenses, build a tech stack, save time on financial admin with a simple app.

Starting a craft business is the perfect way to make money from your passion, but it’s not all sequins and watercolours. Getting your craft business off the ground requires a few essential steps. 

This guide will tell you all the bases you need to cover when starting a craft business, including:

• Find your niche

Most craft businesses start off by specialising in a certain area. You’ll most likely have an idea of the kind of crafts you’d like to create, but in terms of options, you can produce anything you like – that’s the best thing about crafts. 

To get a rough idea of what customers like, here are some of the top-selling craft products:

The important point is to sell something that there is a market for. Often you won’t know what will work until you give it a try, so don’t be afraid to keep creating. But always pay attention to your sales figures. They should be the driving force behind the approach to your products. 

In order to pay the right tax for your business, you’ll have to register with HMRC. The process will be slightly different depending on how you decide to set up your business. 

You can register as:

• A sole trader
• Self-employed
• A limited company 

The structure you choose will also affect the amount of tax you pay on the income you earn. If you’re self-employed or a sole trader, you’ll have to pay the standard rates of income tax with a self-assessment tax return . Your tax rate will increase as you get more income, like this:

• Personal Allowance: Up to £12,570 – 0% 
• Basic rate: £12,570 to £50,270 – 20% 
• Higher rate: £50,271 to £150,000 – 40%
• Additional rate: Over £150,000 – 45%

If you decide to set up a limited company, you’ll instead have to pay corporation tax. It’s just a flat rate of 19% for any profits you earn after you’ve deducted business expenses. 

The flat rate is more forgiving when you start to see some serious income, but it’s usually not worth it for new business owners. 

Every business should begin with a detailed business plan. It’ll clearly outline all your main goals while giving you step by step guidance on how to achieve those goals. 

Not only that, your business plan will be useful if you’re trying to secure investors. Whether you’re applying for a bank loan or working with a private individual, a business with a well-made plan is going to be a much safer bet for them.

At the very basic level, every business should be made up of:

• Market research
• A SWOT analysis

There’s a lot to unpack in those three steps, so check out our article, How to write a business plan , for a more detailed explanation. 

Most insurance brokers will offer tailored insurance policies depending on your industry, but generally, these are the most common insurance policies you’ll need:

• Public liability insurance – if your business comes into contact with members of the public.
• Employers’ liability insurance – if your business employs staff.
• Business buildings insurance 
• Business contents insurance – protects the contents of your business premises, your business equipment, and tools.
• Stock insurance – if you hold any stock, whether on your premises or in storage.
• Product liability insurance – protects you should a customer of yours suffer damage as a result of a faulty product you provide.
• Personal accident insurance 
• Business interruption insurance – if your business is disrupted by material damage caused by an event such as a flood or fire.
• Business legal protection insurance – covers your commercial legal expenses and protects against the potential costs of legal action brought by or against your business.

Craft businesses rely on the quality of their materials. Working with low-quality supplies will just make your life more difficult and dissuade customers from coming back to you. 

Early on, you might find it difficult to get any discounts when buying supplies in bulk. Also, as a new business, you probably won’t be able to get supplies on credit before you’ve built up your relationship with suppliers. 

Once you’ve built up a good working relationship, suppliers will probably be more open to offering you discounts and deals, as they see you as a valued customer.

To find the best possible prices and service, consider shopping around. Order from a few different suppliers at first to test out their reliability and quality. 

Deciding where to sell your crafts will have a huge impact on sales. The goal is to get your products in front of as many of the right people as possible.

Your best bet is to try a combination of these three:

• Craft stalls

There are loads of places to sell your crafts online. Etsy is the most popular in the craft world, so it’s a safe bet. But you can also advertise over social media marketplaces or even build your own website – we’ll mention more on this later in the marketing section. 

Actual shops are always a good idea for crafts too. There are some things you can’t tell by seeing pictures online, so letting customers physically browse your products will work in your favour, as long as they’re actually good quality. 

Start with local arts and crafts shops, souvenir shops, or even independent coffee shops. Before you ask, make sure you’re ready for the negotiation. Think about the number of units you have, the prices of each, and the cut you’re willing to give to the business owner. 

Finally, keep an eye out for pop-up craft fairs in your area and set up a stall. They all run a little differently, but usually, it’s just a case of paying a fee then you’re good to go. 

Craft fairs are a great way to introduce your business to smaller communities while meeting new industry contacts along the way. 

The first port of call for any marketing strategy should be building a strong online presence.

Your website is the face of your business. Most people will find you online, so it’s crucial that it makes a good first impression. At the very least, your website should include contact information, products, prices, and location. 

As a rule of thumb, ask yourself how quickly and easily a new visitor could figure out what your business is all about, what they can buy, and how they can buy it. 

Building a website isn’t as difficult as it used to be. You can ask a professional service to do it for you, but a cheaper option would be to use a website builder (CMS software). There are loads on the market that are beginner-friendly and can guide you through the whole process to help you make a professional website. 

A good website will make sure you appear when people search for craft stores on search engines like Google. You can improve your search engines rankings by:

• Paying for Google ads.
• Making your site SEO (search engine optimisation) friendly.
• Asking your customers to leave a Google review.

Sites like Facebook and Instagram put a real emphasis on images, so it’s the perfect place to show off all the beautiful things you have on offer. 

Sites like Youtube, on the other hand, are great places to post more engaging, long-form content. Tutorial videos are always popular forms of social media content – they’ll attract followers and add a familiar, personal touch to your business. 

Youtube is also the world’s seconds largest search engine, so it’ll have a positive impact on your Google search rankings, and you might end up making some extra money just from monetising your channel.

As we mentioned above, paying for Google ads is a great way to get your website at the top of search engine results. 

But you should also register on Google maps. It’s easy to do and will make it much easier for people to find you. To register, just go to Google My Business and follow the instructions. 

Alongside digital marketing, some more traditional forms of marketing can also be effective. 

You should consider:

• Making business cards to hand out.
• Printing flyers and posting them locally.
• Teaming up with other local businesses to refer each other’s businesses.
• Encouraging customers to spread the word.
• Encouraging friends and family to recommend your business.

Finally, you’ll want to think about the name and logo of your craft business. 

Both should be unique to help you stand out from the competition. You’ll need to register your logo as a trademark with HMRC to prevent others from using it and to make sure you’re not using one that already exists. 

You don’t have to register your name unless you’re a limited company, but it’s a good idea to check it’s not already being used to prevent confusion. 

Trademarking can be an expensive process and involves a few steps, so read our guide for more information. 

Business expenses are defined as any money you’ve spent that’s “wholly and exclusively” for the purpose of running your business.

When the time comes to pay income tax, you can deduct any business expenses you’ve made throughout the year from your total to decrease your taxable income. 

Some common business expenses include:

• office costs: for example, stationery, or phone bills.
• travel costs: for example fuel, parking, train, or bus fares.
• clothing expenses: for example uniforms.
• staff costs: for example salaries or subcontractor costs.
• things you buy to sell on: for example, stock, or raw materials.
• financial costs: for example, insurance, or bank charges.
• costs of your business premises: for example, heating, lighting, business rates.
• advertising or marketing: for example, website costs.
• training courses related to your business.

Alongside business expenses, you can claim capital allowances too. They work in pretty much the same way but they’re for one-off expenses like:

• business vehicles

It sounds simple enough, the tricky part is keeping a detailed note of all your business expenses throughout the year. You should consider downloading accounting software like Countingup. It’ll automatically save and categorise all your transactions so you’ll never miss a beat. 

A tech stack is a collective term we use to talk about a bunch of different apps used together. Any kind of software or application your business uses on a daily basis is all part of your tech stack.

Things like accounting software, customer management software, or group chat platforms would be part of your tech stack. They’re often called software solutions or platforms but it really just means any fancy technology you use to run your business.

The best way to decide on the things to include in your tech stack is by thinking about these key ideas:

• Your business needs
• Integration and scaling
• Building your stack slowly

You may not think you need all that much tech as a sweet business, but there’s plenty of software out there that’s useful for any business. You might want to consider:

• CRM (customer relationship management) software 
• Accounting Software
• Collaboration Platforms
• Automation Software
• Integration Software

There are loads of software solutions so it can be quite confusing. Just take your time and eventually you’ll have the perfect tech stack for your small business. 

When you’re starting your own business, it’s important to keep your personal and business finances separate from day one – to save yourself from time-consuming admin headaches further down the line. 

When you sign up for a Countingup business current account, you’ll receive free accounting software with a range of time-saving tools. 

Simply log into the app to create and send invoices, get financial insights, and confidently manage your new business finances. Find out more here .

• Counting Up on Facebook
• Counting Up on Twitter
• Counting Up on LinkedIn

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How to Start a Profitable Craft Business from Home

Do you want to start a craft business at your home or on a small scale? If yes, you are in the right place.

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

What is a Home-Based Craft Business?

A home-based craft business is a venture that involves creating and selling handmade products from the comfort of one’s home. This type of business typically revolves around crafting unique and artistic items, such as handmade jewelry, home décor, art pieces, textiles, or personalized gifts. The artisan or craftsperson operates the business entirely or primarily within their residence, utilizing a dedicated workspace for crafting, managing orders, and handling administrative tasks.

Key Features of a Home-Based Craft Business

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

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

Home Workspace: Crafters set up a dedicated workspace within their home where they can create and design their products. This space is organized with tools, materials, and equipment needed for the crafting process.

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

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

Flexible Schedule: One of the advantages of a home-based craft business is the flexibility it offers. Crafters can choose their working hours, allowing them to balance their business with other responsibilities.

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

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

13 Steps to Start a Small Craft Business

1. finding the right niche.

Selecting the right niche is the most critical decision you need to make while starting a craft business. Start by identifying your craft niche. Whether it’s handmade jewelry, custom home décor, or personalized gifts, choosing a specific craft allows you to target a defined market and stand out in the crowded online space.

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

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

2. Research the Market

Before you finalize the product you are going to sell your customers, you must check whether there is a demand for that product in the market or not. Do some market research with the local market to understand the feasibility of making the craft product you have conceived.

3. Create a Craft Business Plan

If you are seriously interested in making good money in crafts making business, you must have an effectively planned business plan. Take some time off and write your home-based craft business plan. You can get help from a local professional business plan writer or online business plan-building software.

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

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

Try to write in detail covering these aspects in your craft business plan so that it can work as a roadmap for future success.

4. Create a Unique Brand

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

Read : Catchy Craft Business Names

5. Register Your Craft Business

If you want to run a headache-free business, it is better to register your business. Different countries have different terms and formats for registering a business. Check with local authorities to understand the options you have in forming a company. For individuals living in the United States, forming an LLC brings you certain added benefits like protecting your assets.

6. Licenses & Permits for Craft Business

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

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

7. Bookkeeping

If you want to keep your crafts business financially organized, you must have a properly planned bookkeeping method. If you are experienced in bookkeeping it is fine. In that case, having reliable accounting software will be enough. But if you are not confident, hire a professional who can do the work best.

8. Set up the Purchasing Policy

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

9. Create Workspace

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

10. Craft a Strong Online Presence

Create an online platform to showcase your crafts. Consider utilizing online store platforms like Etsy, Shopify, or your website to reach a global audience. High-quality photos, detailed product descriptions, and a user-friendly interface are key to attracting customers.

11. Implement Secure Payment Methods

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

12. Price Your Products

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

13. Promote Your Crafts Making Business

The key to being successful in the crafts-making business is your ability to network. You must create a website with good-quality photographs uploaded there.

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

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

Finally, it is your hard work and dedication that will decide the scale of success. If you are passionate about making crafts, surely it will be a huge advantage to becoming a successful craft business owner.

Frequently Asked Questions

Is craft business profitable.

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

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

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

How can I set up a dedicated workspace for my craft business at home?

Creating a dedicated workspace involves designating an area in your home for crafting activities. Organize it with the necessary tools, materials, and storage. Ensure good lighting and make the space comfortable and inspiring for the creative process.

Can I sell my handmade products on multiple online platforms?

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

How do I price my handmade products?

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

What are the essential steps for starting a craft business from home?

Key steps include identifying your craft niche, conducting market research, creating a unique brand, setting up a dedicated workspace, establishing an online presence, determining pricing strategies, and implementing efficient shipping and customer service.

How can I promote my home-based craft business?

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

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

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

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

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Structure Of Making A Complete Business Plan (All 4 Sections)

If the phrase ‘business plan’ sounds ominous, think of it in its basic avatar – ‘a plan’. That’s all that it is. It’s your plan of how you want to start and do business. You make plans every single day for the simplest things that you do, shopping, vacationing. So why not for a business? A business plan can be written to fill a few dozen pages, or it can be a single page. The most important thing is to get started.

We will discuss the different sections and topics of a business plan later, but essentially you can start making a plan by thinking – what am I going to do and how am I going to do it.

Why Do You Need A Business Plan

Making a business plan will force you to think ahead, anticipate and eventually plan for events. That is why it is important to follow the prescribed format and sequence of making an effective business plan. This process will force you to acknowledge the things you do not know as you ask yourself more questions regarding the business start up. This makes it a very effective learning process and therefore a very productive tool for someone starting something new. assembleandearn.com

Without getting intimidated by the whole idea, start off in a very conversational tone and start writing only about your goals and aspirations. Here is a small example for someone wanting to start a sewing business from home.

A conversational beginning to a plan

Start with “I want to start a custom sewing business from home”. Then go on to…

• I want to specialise in making custom evening gowns.
• There is a healthy demand for the service in my area and I intend to service it by placing local ads in local medium like newspaper and flyers.
• I already know a few people who want to place orders with me which would also result in world of mouth publicity.
• I intend to hire more people as soon as i start getting more than 3 orders in a week.
• I also intend to design and make my own gowns that I will sell as ready-made products locally and online. Over the course of the next few months I want the ready-made section of my business to grow and become bigger than the custom tailoring as that would provide me with a greater degree of freedom.
• I need to start with choosing a company/brand name that reflects both these sides of my business”…. • and so on and so forth.

As you can see this was a pretty conversationally of writing a business plan. But it presents things in a systematic form. It also raises questions and brings a certain areas to light. For example you know that you will need to hire other people to work for you but do you know if you can find these people easily in your area?

And how much do you expect to have to pay them? All these things will filter down to the cost of running a craft business and the eventual pricing of your craft. Are your customers ready to be that kind of a price for your product?

In this manner you can tackle a lot of issues with a business plan even before they happen.

Tackling potential issues before they happen

A business plan can tell you when something is not a good idea and what changes you might need to make. For example in the above plan, if extra help is not available for hire you can change your product from evening gowns to some other garment that you can finish faster working by yourself.

We would like to keep reminding you not to be intimidated by what you read. We gave an example of a custom sewing business that almost always requires hiring others to process a sizeable number of orders.

On the other hand there is the candlemaking business. This craft business requires the absolute minimum in terms of investment, hiring help as well as the required workspace and equipment.

Handmade candles are an extremely popular craft. Quality home-made candles sell at an insane profit margin. It is not uncommon to find candles selling for three figures a piece.

Of course the price that you can put on your candles will depend on the quality for which you will need to invest in superior equipment, materials and perhaps even in a professional candlemaking course. Once again, all these things come out in a business plan.

A business plan can be formal as well as informal

Remember, you can make a formal or an informal business plan. Both will serve you well. Although the more formal plan is usually required if you are looking for an investment from banks, lending institutions or individuals.

Formal business plans tend to include more details such as the exact amount of investment required, expected income, marketing strategies etc. Even if you do not intend to take your business plan to a bank or lending institution, try and deal with as many details as possible.

Do not get impatient if it seems difficult to start. Getting started might take time. However, give yourself a few days to think of every aspect of starting and running a business and keep noting down whatever comes to mind. At the end of a few days you will be in a good place to start formulating the sequence of the things that you need to do.

Even small sized businesses need a proper plan

Remember, a business plan will always help you avoid costly mistakes before they happen. One of the commonest mistakes that people make is thinking – “I’m just starting small. I don’t need to make a business plan.” Just as commonly – “I’m just starting small right now. I will make the business plan later.”

a small business needs a business plan even more because of limited resources and the need to utilise the resources to absolute best efficiency. assembleandearn.com

If you are making a big investment, you have every reason to do everything to protect it and to do your best to see that it flourishes.

Four main parts of a business plan

Introduction, company plan, financial plan, marketing plan.

The introduction of a business plan covers the entire entity of the business as a whole.  It serves as an overview of your business product, organisation and the strategies that you may want to implement. 

The introduction can be short and brief or it can be a few pages long depending on how you want to build upon it.  It can be a mere summary for your business, or an extended description of your business with personal notes aspirations, goals and dreams.

The company plan covers details of the business which are more formal in nature such as the description of the products or services, the research involved in developing your product, an overview of the market, the operational procedures and the organisational structure.

A company plan can also list the deadlines dates and objectives that you wish to achieve during a certain period of time.  There can be benchmarks made in the company plan to help you determine the growth process.

Putting down details of how much you want to accomplish by when is also part of the company plan.

A marketing plan helps to determine which section of the consumer will be the most responsive to the product or service.  Thousands upon thousands of products and services created every single year.  Yours may either be something entirely novel or it might be a product that it faces competition from several other similar ones.  Having a successful marketing plan shows you how to target and advertise to people who are most suited to your craft and likely to spend money on it.

Whether you are starting a full-time or part-time craft business, you need to have a financial plan that helps you realise and manage your financial needs. Taking control and managing the effect of starting a craft business is an essential step. Making a financial plan will help you sort this out.

1. Making the Introduction (Business Plan Part I)

The introduction section of the company business plan is used for the purpose of summarizing the entire business and it’s different aspects such as the product/services, the operation and any goals or deadlines that you may want to achieve.  It also lists the major benchmarks that you want to achieve in the given timeframe.

In order to make an introduction to your business plan you can have a simple cover sheet which lists the basic details of your business such as date of establishment, address and other of contact details and the objective of the business.  You can further elaborate the introduction to include a sort of an index of all the other contents of your business plan.

• If summarizing the entire business plan, you can list the various different headings and subtopics in the introduction so that you know where to find what information at the time that you need it.
• You can further extend the scope of the introduction section by speaking about your business as a whole.  Your aspirations, goals, and the strategy that you may want to deploy can all be listed here.
• The concept that you have for your business in terms of the product or service that you want to provide and how you visualize this service is growing over the years should also be a part of this section.
• Any important and key issues that are crucial to the establishment and growth of your business can be summarized here.
• Different aspects of your business such as details of your competitors, your marketing tactics and also the financial requirements can be mentioned in this section of the business plan.  Any research that has been done by you in your field of business can be mentioned here for an easy future reference.
• Since this is a summarization of the entire business you can mention any and all important and relevant facts in this section.

2. Making the Company Plan (Business Plan Part II)

The company plan covers all aspects of the company that are intrinsic to its day-to-day operations as well as the past and the future.  External factors such as the market and finance are not considered while making a company plan and the operations are described and spoken of as if not dependent on such external factors.

Product Profile Section

This section is used to describe the service of the product that you will be putting out into the market.  This is a section where you outline the estimated sales and plan your inventory.

• If you have multiple products or services you can include details about their strength, weakness and a comparison as competing products with other such businesses in the market.
• Focus on what makes your product or service unique and different from your competitors person.
• Try and outline details about your product or service such as the pricing structure, technology used to make it and the infrastructure you will require to make this product will provide this service.
• The success of any product or service largely depends on it having a demand in the future.  Described how you see the demand for your product growing in the future or how you intended to make it grow.
• Lastly focus on just your product and list all your suppliers, manufacturers, and dealers and retailers.  You may have an extensive list in this section although you may choose to use only a few number of them for the time being.
• Mention reasons as to why you chose the ones that you did and file away the other names for future use.
• Any discount policies or sales offer and promotional offers that you may want to implement on the launch or on special occasions can also be mentioned.

Business Operations Section

This will cover how you see here business functioning to produce your product or service.

• Cover all aspects such as accounting banking and legal requirements.
• You may need certain permits to operate or you may require a certain kind of banking service for example in the case of an online store you may need a credit card processing service to be offered by bank.
• Make a schedule of your operations here. What are the steps that are taken to finish the final product, how long does it take and what bottom line targets of production are you looking to achieve.
• Outline the various stages that will be involved in order to meet these deadlines.

Business Organization Section

This section has to do with the human factor involved in the business.  A large part of running a business can be a delegation of duties and the running of various different departments in good synchronisation with each other. 

There may be a lot of people working in your business or it may be just you.  This section will list the duties and responsibilities for each and every person working for your business even if it is only you.  You will also factor in future growth and hence the requirement for further personnel.

3. Making a Marketing Plan (Business Plan Part III)

Making a marketing plan for your home business involves covering all the details, which could influence your business sales. It has to take into account who your target consumer is, who your competitors are and how you will make new inroads into an already existing market.

It is like an initial framework on which your actual business will stand. It is a summary of all the plans, which will help you reach your destination.

Market Description Section

The target market needs to be understood thoroughly and the details regarding it form the basis of your marketing plan. An evaluation of the market trends over a period of time and how the trends will affect your profitability are included here.

The market place already has a host of products and services. In such a scenario it is important to determine the need for your own product or service and how you intend to go about fulfilling it.

Analyzing trends over the past couple of years as well as the predicted trends for the coming years along with certain demographics of the target market such as age and income are also essential parts of the plan.

Product Competition Section

The competition in the market place cannot be taken lightly. In order to make a good marketing plan it is important that the competitors be assessed and their strengths and weaknesses understood.

• Your marketing plan should include a detailed description of your competitors, what they are doing, how they are going about it and whether they have successful techniques to capture the market
• You need to assess what it is the competition is doing that gives it the competitive edge and what it is that you will do to compete successfully. Focus on what they are not doing which could in turn provide you with a competitive edge.
• Make a list of strengths and weaknesses of your competitor vis-à-vis yourself but be sure to have solid proof to back your claims.

Selling Strategy Section

The customer or rather your target market will ultimately decide how well your business does, so it is imperative that you outline your plans regarding how you intend to reach the customers.

• Describe how you intend to get them to buy your product or service. Give a detailed account of your advertising strategies as well as the promotional activities you intend to organise.
• Allocate a budget for all advertising and promotions. You should also have a yardstick to measure the success of your advertising.
• Outline your customer service policy, terms of payments and also how the product or service will be made available to the customers i.e. whether it will be through retail outlets or wholesalers.
• Mention the packaging of the product and how it will cater to the tastes of the customers. If you have already done some marketing in the past discuss the methods that you used, which methods were most successful and what were the costs incurred on them.
• The pricing structure should come next and here you may discuss the costs that you incur while making the product or service available to the customers.
• Work out the price at which it will be available to the customer after including a profit margin.
• Mention how the costs incurred relates to how you price the products, what is the lowest price you can sell it at after covering your costs and your profit and the maximum price that a customer is willing to pay, based on the current market trends.

Marketing Approach Section

• Summarize your entire marketing strategy, research and analysis here.
• Describe how you intend to create a niche in the target market and how you plan to satisfy the needs of the customers.
• Cover all the important parts of your marketing plan in this section.
• Focus largely on the needs of the target market, how your product will fill the gap and the profitability of the venture.
• The emphasis should be on what the customer requires rather than your product or the volume of sales.

4. The Finance Plan (Business Plan Part IV)

The financial plan for a home based business has to cover all of your financial needs at present and also in the future and it’s a very important part of planning a business.

This home based business plan or action plan is necessary even if you do not intend to apply for finance. It is useful to have all the information regarding your home based business in the form of a plan so that you can see where you are headed.

When you start a business it is important to know how much capital you need to get it off the ground. This is the start up cost and is the first thing that you need to calculate.

Make a list of your start up costs as well as operating costs i.e. the cost incurred in manufacturing and reaching the goods to the customers before getting any money from sales.

How much of the capital needed is available with you? It is imperative that you have enough to cover at least your start up costs. You may have to apply for a loan but even then the investors will need to see that you are making a sizeable contribution, in order to give you a loan.

If applying for a loan give a detailed account of how much is required, what you can offer as collateral, when and how it will be paid back. If possible back all this up with proof of purchase orders as well as any other document which will help prove your good credit history. Describe in detail as to how the funds will be allocated and the purpose for which they will be utilized.

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Candle Making Business Plan Template

Written by Dave Lavinsky

Candle Making Business Plan

You’ve come to the right place to create your Candle Making business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Candle Making businesses.

Below is a template to help you create each section of your Candle Making business plan.

Executive Summary

Business overview.

The Countryroad Candle Company is a startup candle manufacturing company located in Augusta, Georgia. The company is founded by Emily Reynolds, a creative and driven individual who wants to turn her favorite pastime into a thriving business. Emily has a background of seven years in marketing housewares to the retail sector and she has a keen eye for design, which brings her to the startup phase of her candle making company.

Countryroad Candle Company will provide a wide array of candles in scented, decorative and pure iterations of the concept Emily Reynolds is bringing to the company. Each candle will have unique properties, including a small candle within each large candle, which doubles the light and beauty of the decoratives on the candles. This unique feature has not been shared or adopted by anyone else, hence Emily has the drive to get this unique candle making product line into the market.

Product Offering

The following are the services that Countryroad Candle Company will provide:

• Small to large uniquely-designed candles, in sizes of 3 to 8 inches in diameter and in height up to 17-inches.
• A selection of carefully curated candle holders, glass bases, and other complementary items to highlight the candles.
• Candle accessories, including candle snuffers, long decorative matches, and scented bottled oils to add to the fragrance of the candles.
• 12-pack cartons for sale at retail; 6-pack boxes for sale to smaller shop or outlets.
• Single candle pricing for sale online, in addition to 12-pack cartons
• Special discounts for disabled or elderly individuals who will use candles for healing properties

Customer Focus

Countryroad Candle Company will target all consumers in the greater Atlanta area. They will target retail stores and store chains. They will target gift shops, flower shops and other related independent stores in the region of Atlanta. They will target event venues, party planners and event coordinators.

Management Team

Countryroad Candle Company will be owned and operated by Emily Reynolds. She has recruited Sarah Thompson, the former production manager of her last employer, a large candle making company called Glow & Co.

Emily Reynolds is a graduate of the University of Georgia, where she graduated with a Bachelor’s degree in Marketing. She previously was employed by Glow & Co., but decided to branch out and create unique candles that would offer new designs and new fragrances to the boutique candle offerings of the area. Emily’s stellar marketing efforts and courtesy with clients led her former employer to win the 2022 title of “Best Customer Service in Atlanta.”

Sarah Thompson has been creating and overseeing the manufacture of candles for over thirty years. She specializes in long-burn candles and produces the combination of ingredients that lead to fragrant, high-end candles with a beauty that cannot be surpassed. The new company offers her an opportunity to create distinctive “candle within a candle” design and manufacturing experience and she’s excited to begin the tasks ahead. She has the expertise and extensive background in candle-making to produce superior candles with the practicality of high burn time combined with stellar beauty.

Success Factors

Countryroad Candle Company will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly-qualified team at Countryroad Candle Company
• Extensive product line of unique candles, with properties that are highly-desirable.
• Curated candle accessory assortment prepared and vetted for retail sales
• Packaging in quantities that will support all retail customers, small to large
• Industry knowledge and contacts that are extensive and international
• Countryroad Candle Company will offer the best package pricing for the highest-quality candles offered. Discounts will also apply to disabled and elderly customers who use the candles for healing properties.

Financial Highlights

Countryroad Candle Company is seeking $200,000 in debt financing to launch its Countryroad Candle Company. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the various marketing strategies to be employed. The breakout of the funding is below:

• Office space build-out: $20,000
• Office equipment, supplies, and materials: $10,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph outlines the financial projections for Countryroad Candle Company.

Company Overview

Who is countryroad candle company.

Countryroad Candle Company is a newly established candle design and manufacturing company in Atlanta, Georgia. Countryroad Candle Company will offer unique candles, designed with beauty and carrying delightful fragrances, to the retail markets of the Atlanta region. The candles will be a proprietary offering by Countryroad Candle Company and the production of the candles is a patented process. Countryroad Candle Company will provide a mix of carton and box packaging assortments so that customers can purchase in bulk or in smaller configurations to suit their retail outlets. Their full-service approach includes a comprehensive price structure and delivery options to suit every buyer.

  Countryroad Candle Company will be able to bring a new aspect of candle-making to the candle customers within the housewares and giftware industry sector, providing a superior product line and one that contains both practicality and beauty combined. The team of professionals are highly-qualified and the production manager is a seasoned veteran at candle-making and all aspects of packaging and shipping products. Countryroad Candle Company offers everything that other candle manufacturers cannot: a unique product line, beautiful decor on each candle, fragrances that complement each candle and packed cartons in a variety of sizes for all levels of retail.

Countryroad Candle Company History

Since incorporation, Countryroad Candle Company has achieved the following milestones:

• Registered Countryroad Candle Company, LLC to transact business in the state of Georgia.
• Has a contract in place at one of the Atlanta area buildings to set up its candle-making production line and office space within 10,000 square feet.
• Reached out to numerous former buyers and associates to announce the establishment of the new business and discuss advance orders.
• Began recruiting a staff of six and office personnel to work at Countryroad Candle Company.

Countryroad Candle Company Services

The following will be the services Countryroad Candle Company will provide:

Industry Analysis

• The candle manufacturing industry is expected to grow over the next five years to over $190 million.
• The growth will be driven by an increased number of consumers using candles for self-healing and stress-relieving properties.
• The growth of the demographic strata of Gen Z, Millennials, and other younger-aged groups who will use candles extensively in homes, offices and areas of relaxation.
• The growth of fragrances with known healing properties and their use in candles.
• The increased number of wedding and party planners looking for unique lighting.
• Costs will be reduced by lower-priced candles imported into the U.S.
• Costs will also be reduced by sales online, reducing the need for transport of goods.
• The industry sector of candle manufacturing is on the rise and outsourcing of materials, marketing strategies, procurement, etc. will lower the costs overall, as well.

Customer Analysis

Demographic profile of target market.

Countryroad Candle Company will target residents within the Atlanta, Georgia region. This includes outlying communities and targets in the general Georgia area. They will target consumers in age from 12 years to 99 years. They will target those individuals who use candles as part of self-healing exercises or as naturopathic wellness support. They will target event planners and party coordinators. They will extensively target retail buyers and retail chain buyers to purchase quantities of candles at reasonable prices.

Customer Segmentation

Countryroad Candle Company will primarily target the following customer profiles:

• Small to large retail buyers for gift stores, flower shops, large chains
• Event planners and wedding coordinators
• Disabled and elderly who use candles for wellness
• Spas and med spas; natural health clinics

Competitive Analysis

Direct and indirect competitors.

Countryroad Candle Company will face competition from other companies with similar business profiles. A description of each competitor company is below.

Karlan’s Gift Supply

Karlan’s Gift Supply is a large wholesale company that supplies retail stores with products made in local or regional manufacturing companies. This is an indirect competitor to Countryroad Candle Company, as Karlan’s Gift Supply does not carry candles or candle accessories. However, the wholesale company does carry a variety of related gift products and is well-known for advantageous pricing.

Bridget Karlan started Karlan’s Gift Supply twenty years ago and has grown the company into a 2M wholesale business. She is frugal in purchasing her wares and she is rigid in demanding prices to cover her targeted profit margins of 55% and up. She has very wisely created a powerhouse wholesale supply company.

Glow & Co.

Glow & Co. is the former employer of Emily Reynolds and Sarah Thompson. As a direct competitor, Glow & Co. sells candle assortments and individual candles into the retail gift and specialty markets throughout the southern region of the U.S.

Glow & Co. is a ten-year-old company founded by Nick Parsons, the son of a candlemaker father who engaged his family of fifteen in the business with him. The father passed the company on to his son ten years ago and, during the ensuing time, the son changed the name of the company and expanded it exponentially by selling candles of all kinds in several configurations and pack sizes. All current offerings are imported from Asia and carry low price points as a result. There are no unique designs or fragrances in the current product line.

Hanson’s Tabletop Company

Hanson’s Tabletop Company is a high-end design company that sells multiple gift and houseware products into retail. The company does not manufacture candles, but acquires candles and all other products via importing. The company holds a design office in the large Atlanta Gift Market in downtown Atlanta and sells curated product lines to national chains in addition to local retailers who want to place small orders.

Hanson’s Tabletop Company sells a variety of candles and candle accessories. The company owners, Teri and Craig Walters, are enthusiastic about the trend-forward designs in candle manufacturing and rarely purchase standard candles in case packs. They purpose one-of-a-kind candles and hope their suppliers can fill any voids when designs become popular.

Competitive Advantage

Countryroad Candle Company will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

Countryroad Candle Company will offer the unique value proposition to its clientele:

• Highly-qualified team of skilled employees who are able to provide a unique product line that is both decorative and fragrant to be sold into the retail market.
• The team of employees will also offer a variety of packaging sizes and pricing that adjusts with quantity sizes.
• Discounts for disabled and elderly customers who use candles for self-healthing or wellness.
• Reasonable pricing for retail clients that enables everyone in any sized retail business to purchase on a regular basis with profitable outcomes.

Promotions Strategy

The promotions strategy for Countryroad Candle Company is as follows:

Word of Mouth/Referrals

Countryroad Candle Company has built up an extensive list of client contacts over the years by providing exceptional service and expertise to their former clients. With the announcement of the new company launching soon, these clients were approached and have agreed to purchase retail candle supplies from Countryroad Candle Company. The wide range of packaging plus the unique properties of the candles has encouraged buyers to make initial orders early.

Professional Associations and Networking

There are several professional associations which Emily Reynolds and Sarah Thompson have already joined. Their networking efforts will intensify with this new company and they will offer special packages for first-time buyers.

Print Advertising

Direct mail efforts will be employed in the two weeks prior to the launch. Every buyer will receive a promotional package announcing the launch of Countryroad Candle Company and will be offered special discounts for purchases made in the first month of the company.

Website/SEO Marketing

Countryroad Candle Company will utilize their website as an informational outlet and as a place for smaller retail establishments to order. The website will be well organized, informative, and list all their products and services that Countryroad Candle Company provides. The website will also list their contact information and list their available candles in stock or on hand. Their website presence will contain SEO marketing tactics; anytime someone types in the Google or Bing search engine “candle company selling to retail” or “candle company near me”, Countryroad Candle Company will be listed at the top of the search results.

The pricing of Countryroad Candle Company will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.

Operations Plan

The following will be the operations plan for Countryroad Candle Company. Operation Functions:

• Emily Reynolds will be the Owner and President of the company. She will oversee all staff and manage new client relations. She has spent the last year recruiting the following staff:
• Sarah Thompson will be the Production Manager of the company. She will curate, plan and oversee operations of the candle-making process at the company and will work with Emily Reynolds to effectively add decorative and fragrance elements to each candle design.
• Tad Newsom will be the Production Facilities and Maintenance Manager, overseeing the maintenance and any needed repairs of the facility.
• Shelia Abramson will be the Shipping Manager. As such, she will oversee the packing and shipping process as cartons and packages are prepared for shipment to retail.

Milestones:

Countryroad Candle Company will have the following milestones completed in the next six months.

• 5/1/202X – Finalize contract to lease manufacturing and office space
• 5/15/202X – Finalize personnel and staff employment contracts for the Countryroad Candle Company
• 6/1/202X – Finalize buyer orders for Countryroad Candle Company
• 6/15/202X – Begin networking at industry events
• 6/22/202X – Begin moving into Countryroad Candle Company facility and office
• 7/1/202X – Countryroad Candle Company opens its doors for business

Financial Plan

Key revenue & costs.

The revenue drivers for Countryroad Candle Company are the wholesale prices they will charge to the buyers for their products and services.

The cost drivers will be the overhead costs required in order to staff Countryroad Candle Company. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.

Funding Requirements and Use of Funds

Countryroad Candle Company is seeking $200,000 in debt financing to launch its candle-making business. The funding will be dedicated toward securing the manufacturing facility and office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the marketing strategies and association memberships. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of Purchase Orders Per Month: 56
• Average Sales Revenue per Month: $53,000
• Office Lease per Year: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, candle making business plan faqs, what is a candle making business plan.

A candle making business plan is a plan to start and/or grow your candle making business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Candle Making business plan using our Candle Making Business Plan Template here .

What are the Main Types of Candle Making Businesses? 

There are a number of different kinds of candle making businesses , some examples include: Scented Candles, Specialty Wax Candles, and Novelty Candles.

How Do You Get Funding for Your Candle Making Business Plan?

Candle Making businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Candle Making Business?

Starting a candle making business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Candle Making Business Plan - The first step in starting a business is to create a detailed candle making business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your candle making business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your candle making business is in compliance with local laws.

3. Register Your Candle Making Business - Once you have chosen a legal structure, the next step is to register your candle making business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your candle making business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Candle Making Equipment & Supplies - In order to start your candle making business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your candle making business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful candle making business:

• How to Start a Candle Making Business

The Ultimate Guide To Starting Your Own PC Building Business

Are you passionate about computers and looking to turn that passion into a profitable venture? Starting your own PC building business might just be the perfect fit for you. A PC building business entails designing, assembling, and selling custom-built personal computers.

To ensure its success you, of course, need to have a great understanding of the PC building business.

But to stand out in the PC market, which is estimated at $204.07 billion in 2024, you’ll require more than just technical prowess. You also need a deep understanding of the PC building market, a good business plan, an effective marketing strategy, and a strong brand among other strategies.

This comprehensive article will walk you through all the key steps while providing great tips on how to start a PC building business successfully. Let’s get started!

1. Conduct market research and identify the niche

Before diving headfirst into starting your custom PC business, it’s crucial to conduct thorough market research to understand the landscape and identify your niche.

Start by researching the demand for custom-built PCs in your niche market. Identify the types of customers who are interested in custom PCs. Are they gamers, content creators, professionals, or businesses? Also, analyze market demand and industry trends, like the popularity of certain components, gaming genres, or emerging technologies like VR or AI.

Then dive deep into understanding your target customers’ specific needs and preferences. What are they looking for in a custom PC? Is it high-performance gaming rigs, silent workstations, compact HTPCs, or something else entirely?

It’s also equally important that you understand the competitive landscape. So ensure you research existing custom PC builders. Identify their strengths, weaknesses, pricing strategies, and target demographics. Look for gaps or underserved segments in the market where you can differentiate your business and carve out a niche for yourself.

Then armed with that information, define your unique selling proposition (USP)—which helps you stand out from your competition. See how MAINGEAR mainly highlights their rear-side cable connectors.

Your USP could be your superior craftsmanship, personalized customer service, exclusive partnerships with component manufacturers, or innovative customization options.

2. Craft a comprehensive business plan

We can’t discuss how to start a PC building business without covering creating a great business plan since it serves as the roadmap for your building journey. Here are some of the key details you must include in your comprehensive business plan as a custom PC builder:

• Executive summary : Provide the key highlights of your business plan, including your goals, target market, USP, and financial projections.
• Product and service offerings : Outline the products and services you plan to offer, including the types of custom PCs, customization options, additional services (e.g., overclocking, system optimization, warranty support), and pricing strategies.
• Marketing strategy : Develop a comprehensive marketing strategy to promote your business and attract a loyal customer base. This may include online marketing tactics such as SEO, social media advertising, email campaigns, content marketing, as well as offline strategies like networking events and word-of-mouth referrals.
• Financial projections : Create detailed financial projections for your PC building business, including startup costs, operating expenses, revenue forecasts, and profit margins.
• Operational plan : Define the day-to-day operations of your business, including inventory management, order fulfillment, customer service, and post-sale support.
• Risk assessment and contingency plans : Identify potential risks and challenges that may affect your business, such as supply chain disruptions, changes in market conditions, or competitive threats. Then include contingency plans and mitigation strategies to minimize risks and ensure business continuity.

With a comprehensive business plan, you can demonstrate your readiness to investors, lenders, and other stakeholders. Additionally, it will guide your decisions, helping you confidently navigate any challenges you face.

3. Register your business

With your business plan in hand, it’s time to make things official by registering your business. This is essential when starting any sort of business, whether it’s an online business like a call center business or an offline business like a cleaning business .

Start by choosing a suitable business name and structure, whether a sole proprietorship, partnership, or LLC. Each structure has its own advantages and disadvantages in terms of liability, taxation, and regulatory requirements, so choose wisely based on your specific circumstances.

Next, register your PC building business with the appropriate government authorities. The registration processes will vary based on your location and chosen business structure. So check with your local business registration office for guidance on the registration process in your area.

However, the process will typically involve filing registration forms, paying registration fees, and obtaining necessary licenses or permits to operate legally.

Additionally, consider trademarking your business name, logo, or any unique product designs or inventions to protect your intellectual property.

4. Source quality components and forge partnerships with suppliers

You’ll need to source a wide range of components to build high-quality custom computers tailored to your customers’ needs. Some of these components include RAM modules, solid-state drives (SSDs), hard disk drives (HDDs), central processing units (CPUs), graphics cards, motherboards, and cooling solutions.

To ensure you source quality components start by researching reputable component suppliers and distributors. Look for suppliers with a track record of reliability, quality, and customer satisfaction. Then consider factors like product selection, pricing, delivery times, return policies, and customer service.

You can use a platform like PC Builder to easily find the right supplier. Additionally, the platform offers building guides and gives feedback on the most compatible components for your PC.

While it’s tempting to prioritize price when sourcing components, quality should always be your top priority. Invest in high-quality components from trusted brands to ensure great performance, reliability, and product longevity, customer satisfaction.

A poorly built PC device will only lead to poor system performance and slow processing, which affects tasks like gaming, video editing, and web browsing. In fact, even the fastest web hosting platform cannot compensate for a poorly built PC device.

Over time, build strong relationships with your component suppliers by making repeat orders, communicating regularly, and providing feedback. Establishing a good relationship with your suppliers can lead to better pricing, priority access, and personalized support, which will give you a competitive advantage.

However, it’s also key to know when to diversify your supplier base to mitigate the risk of supply chain disruptions, shortages, or quality issues.

5. Build your brand and market your services

Once your products are ready for the market, it’s time to focus on building brand awareness and visibility.

Start by creating a professional website showcasing your services, portfolio of past builds, and customer testimonials.

Your website should be visually appealing, easy to navigate, and optimized for search engines to attract organic traffic and generate leads. Additionally, include helpful resources to show your customers how your products work or how well they work. For instance, you can record screen activities to prove your device is high-performing.

Digital Storm is a great example of an exceptional PC building business website. See how they use a clean design, images, product videos, consistent brand colors, and customer testimonials, among other design elements to capture potential customers’ attention.

You can also use guest blog posts , social media platforms, online forums, and key industry events to spread the word about your business and engage with potential customers. Besides sharing valuable content, consider offering special promotions or hosting giveaways, as shown below, to incentivize purchases and encourage repeat business.

Additionally, you can collaborate with tech influencers , bloggers, YouTubers, and streamers in the gaming and tech community to reach a wider audience and gain credibility.

6. Provide exceptional customer service and support

Providing exceptional customer service and support can set you apart from the competition. In fact, research shows that 80% of customers believe the experience a company provides is just as important as its products and services.

So how do you provide exceptional customer service and support? Here are a few effective ways:

• Expert recommendations : Offer expert recommendations and guidance to help customers make informed decisions about their custom PCs. Use your technical expertise to suggest the most suitable components, configurations, and customization options based on their needs. This will ensure they get the best value for their investment.
• Transparent communication : Keep your customers informed and updated throughout the PC building process. Provide regular updates on the status, any delays or issues encountered, and estimated completion times. Additionally, be transparent about pricing, component availability, and potential limitations to manage customer expectations effectively.
• Quality assurance : Conduct thorough quality assurance checks on each PC build to ensure that it meets the highest standards of performance, reliability, and aesthetics. This also enables you to address any issues or defects promptly before delivering the system to the customer.
• Post-sale support : Provide comprehensive post-sale support to assist customers with setup, installation, troubleshooting, and optimizing their custom PCs. You should also offer clear instructions, documentation, and tutorials on your website to guide customers through common tasks and issues they may encounter with their new systems.
• Warranty services : Reassure your customers they are making the right investment by offering generous warranties. Clearly communicate warranty terms and conditions, including coverage periods, repair or replacement policies, and any exclusions or limitations, to ensure transparency and accountability.
• Responsive communicatio n: Respond promptly to customer inquiries, feedback, and support requests through various channels, including phone, email, live chat, and social media. Quick responses demonstrate your commitment to customer satisfaction, which helps you easily earn their trust.
• Continuous improvement : Continuously seek customer feedback to identify areas for improvement and opportunities to enhance your custom PC building services. Then actively implement the changes to match customer expectations in the future.

Keep in mind, happy customers are more likely to return for future purchases, recommend your business to others, and contribute to your long-term success and growth.

Starting your own PC building business can be a rewarding and lucrative endeavor. While it’s not an easy task, like with any venture, it is not impossible.

By following our steps on how to start a PC building business, you can easily turn your dream of owning a successful PC building enterprise into a reality.

Start by conducting market research and identifying a niche. Then craft a business plan, register your business, source quality components, forge supplier partnerships, build your brand, market your services, and provide great customer service and support.

Above all stay adaptable, stay curious, and stay connected to keep building great PC products for your customers. Best of luck!

About the author

Nicholas Prins

I'm the founder of Launch Space. We work with global companies helping them scale lead generation through SEO and content marketing. Head over to the homepage to find out more.

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How to Make a “Good” Presentation “Great”

• Guy Kawasaki

Remember: Less is more.

A strong presentation is so much more than information pasted onto a series of slides with fancy backgrounds. Whether you’re pitching an idea, reporting market research, or sharing something else, a great presentation can give you a competitive advantage, and be a powerful tool when aiming to persuade, educate, or inspire others. Here are some unique elements that make a presentation stand out.

• Fonts: Sans Serif fonts such as Helvetica or Arial are preferred for their clean lines, which make them easy to digest at various sizes and distances. Limit the number of font styles to two: one for headings and another for body text, to avoid visual confusion or distractions.
• Colors: Colors can evoke emotions and highlight critical points, but their overuse can lead to a cluttered and confusing presentation. A limited palette of two to three main colors, complemented by a simple background, can help you draw attention to key elements without overwhelming the audience.
• Pictures: Pictures can communicate complex ideas quickly and memorably but choosing the right images is key. Images or pictures should be big (perhaps 20-25% of the page), bold, and have a clear purpose that complements the slide’s text.
• Layout: Don’t overcrowd your slides with too much information. When in doubt, adhere to the principle of simplicity, and aim for a clean and uncluttered layout with plenty of white space around text and images. Think phrases and bullets, not sentences.

As an intern or early career professional, chances are that you’ll be tasked with making or giving a presentation in the near future. Whether you’re pitching an idea, reporting market research, or sharing something else, a great presentation can give you a competitive advantage, and be a powerful tool when aiming to persuade, educate, or inspire others.

• Guy Kawasaki is the chief evangelist at Canva and was the former chief evangelist at Apple. Guy is the author of 16 books including Think Remarkable : 9 Paths to Transform Your Life and Make a Difference.

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What to Do When Your 401(k) Leaves Something to Be Desired

Over the course of a career, the high fees and a lower-quality menu of investment options found in some plans can shrink your balance significantly.

By Mark Miller

Chris Gentry is meticulous about his craft — he’s a professional woodworker at a small company in Brooklyn, N.Y., that makes custom dining and coffee tables, cabinets and interiors.

He creates pieces on his own from start to finish and enjoys that freedom. “It’s nice to have control over the way something should be done,” he said.

Mr. Gentry, 36, is equally conscientious about saving for retirement. He has contributed the maximum allowable amounts to his employer’s 401(k) plan over the past two years and also topped out a Roth individual retirement account. He hopes to buy an apartment and start a family soon with his partner. “It seems like all that will be expensive, so I’m trying to get an early start on retirement savings while I can,” he said. Between the two accounts, he has managed to save $80,000.

His employer kicks in a generous 5 percent of his salary to the 401(k) no matter how much Mr. Gentry contributes. But he worries about the plan’s high-cost mutual funds. “They’re expensive compared with what I can get in the I.R.A.,” he said. He even wonders if he should contribute to the plan at all. “I’m not sure how to determine at what point the fees become so expensive that the benefits of the 401(k) are outweighed by the fees.”

Fees are one of the most important factors of successful retirement investing. They determine how much ends up in your pocket after mutual funds and 401(k) plan providers take their cut. The bite especially hurts younger workers, who face the risk that high fees will compound over time.

“Fees compound in the same way that returns compound,” said Scott Puritz, managing director at Rebalance , a firm that often works with clients on 401(k) rollovers and advises companies on ways to improve their plans. “People are numb to the differences, but it’s a major determinant of long-term returns.”

Costs are usually much higher in plans sponsored by small businesses, like the 10-person firm where Mr. Gentry works. His plan doesn’t offer low-cost passive index fund choices. He is invested solely in a target date fund made up of actively managed mutual funds that have lagged the overall market’s returns during the past decade. The fund charges an annual expense fee of just over 1 percent.

That amount is typical for small plans, according to data compiled for the 401(k) Averages Book, which surveys companies that provide plans to employers. For example, the survey shows that among plans with 10 participants and $1 million in assets, average investment costs are 1.10 percent. At larger firms, those fees are far lower: At companies with 1,000 to 5,000 plan participants, target date fund fees average just 0.33 percent, according to data compiled by the Investment Company Institute and BrightScope. (Target date funds shift gradually toward bonds from stocks as a worker approaches an expected date for retirement.)

It’s not unusual for small plans to carry total expenses far higher. “We often see plans that charge 2 or 3 percent all in — sometimes more,” Mr. Puritz said.

A key reason for the varying amount of fees is the fixed costs of administering a plan and how those costs are spread across companies of different sizes. “If I have a small coffee shop plan with $100,000 in assets, the costs are spread across fewer people compared with a very large company,” said Joe Valletta, principal with Pension Data Source, which publishes the 401(k) Averages Book. “The big plan has higher fixed costs, but it’s spread over a lot more employees and a larger asset base.”

Mr. Gentry is fortunate to work for an employer that offers any kind of plan. Only about half of private-sector U.S. workers are covered by an employer retirement plan at any given time, and the gap is driven by lower participation in the system by small employers, according to the Center for Retirement Research at Boston College . Workers often gain and lose coverage as they change jobs.

The coverage gap helps explain why many workers reach retirement with savings unlikely to last the rest of their lives. According to the Federal Reserve, the median retirement account holdings for workers aged 55 to 64 years old was $185,000 in 2022.

But fees also play a leading role, especially for young workers who face the compound effects over many years of saving. The difference in account balances when they retire can be staggering.

The New York Times worked with Rebalance to create a hypothetical example, illustrating the career-long effect of plans with a variety of fee levels. We considered a 28-year-old worker with a starting salary of $75,000 who saves diligently in her 401(k) account throughout her career. She contributes 6 percent of her salary annually and receives a 3 percent matching contribution from her employer. The scenario shows the effect of what she will have at three possible retirement ages. At 65, her portfolio is nearly 66 percent smaller in a high-cost plan compared with the lowest.

High Fees Can Take a Huge Bite Out of Your 401(k)

We used the example of a hypothetical 28-year-old worker who saves diligently in her 401(k) account throughout her career. At the time of her retirement, her 401(k) balance varies greatly depending on how high the plan’s fees are and when she retires.

Hypothetical balances at retirement

Plan balances in millions of dollars

Percentage difference from the low-fee plan.

Low fees (1.25%)

High fees (3%)

Medium fees (2%)

Plan balances in

millions of dollars

Percentage difference from low-fee plans.

Determining the fees that you pay is not simple. Fees can be charged for plan administration, investments and sometimes for individual services provided to participants; all 401(k) plans are required to send an annual notice that explains the fees that can be deducted from your account, but understanding them is another matter.

“It’s very difficult for people to understand their fees unless they’re investment professionals, which most retirees are not,” said Lisa M. Gomez, assistant secretary for employee benefits security at the U.S. Department of Labor.

The Secure 2.0 legislation of 2022 directed the department to examine ways to improve plan information, including how to understand fees. It expects to report to Congress with recommendations by the end of 2025, Ms. Gomez said. The department publishes a guide to 401(k) fees and has a toll-free line with advisers who can help participants understand their fees (866-444-3272).

But asking your employer about fees is a good starting point. “You have the right to know what you’re paying, so go to your human resources department, and ask them to tell you about your options and what they cost,” Mr. Puritz, the managing director at Rebalance, said. The Financial Industry Regulatory Authority offers an online tool that analyzes how fees and other expenses affect the value of mutual funds and exchange-traded funds over time.

Your plan is mediocre. What now?

If your employer’s plan offers an annual matching contribution, save enough to capture it — doing otherwise leaves money on the table. “If they are matching dollar for dollar or 50 cents on the dollar, that’s a 100 percent or 50 percent return with almost zero risk,” said Heath Biller, a financial planner with Fiduciary Financial Advisors in Grand Rapids, Mich.

Pay careful attention to your investment choices, and look for the least expensive options. If possible, find a low-cost index fund that tracks the entire stock market. “Even if the investment menu is larded with high-expense funds, you may be able to find an index fund or a decent quality target date fund series,” said Christine Benz, director of personal finance and retirement planning at Morningstar.

You can also push for change. Mediocre 401(k) plans can get better. Employers are usually the fiduciary with a legal responsibility to consider only the interest of participants, and it’s in their own best interest to take your misgivings under consideration. “You can raise your concerns about high fees or poor investment options with your employer and ask if the company is able to consider adjustments,” Mr. Biller said.

After you’ve captured the employer match, consider low-cost options outside your 401(k) for additional saving. This year, you can contribute up to $23,000 to a 401(k) and $7,000 to an I.R.A.; savers 50 and older can contribute more via catch-up contributions. Eligibility to deduct the I.R.A. contributions phases out at certain income levels . Establishing one low-cost I.R.A. also lets you roll balances over to a single account as you change jobs through the course of your career, which is a great way to stay organized.

If you have self-employment income in addition to wages, a Simplified Employee Pension I.R.A . or Solo 401(k) offer routes around the I.R.A. contribution limits. Solo 401(k) accounts have higher contribution limits and are not available if you operate a company with employees; the government reporting requirements vary between these two options.

Yulia Petrovsky, a financial planner in San Francisco, has many clients working for large technology companies who also have side businesses. “Some of them are doing start-up work,” she said. “Some have marketing or other consulting gigs, especially when in between jobs, so these accounts can be a real slam dunk.”

Taxable investment accounts offer another route around I.R.A. contribution limits, especially for older retirement savers. Unlike 401(k) and I.R.A. accounts, they don’t come with an upfront tax benefit. Investment gains are subject to capital gains rates, although these are more favorable than ordinary income tax rates imposed on withdrawal from tax-deferred accounts.

Tax deferral is less important for older investors, who have less time to benefit from the tax-deferred compounding available in such accounts than younger investors.

It’s also possible to use tax-efficient investments in taxable accounts, such as broad-market equity exchange-traded funds, which have become very tax efficient, and municipal bonds — which generally are not subject to federal income taxes — for fixed income, Ms. Benz added.

“It’s not that difficult to simulate some of the tax-sheltering characteristics of a tax-deferred account in a taxable account,” she said.

A Guide to Making Better Financial Moves

Making sense of your finances can be complicated. the tips below can help..

Credit card debt is rising, and shopping for a card with a lower interest rate can help you save money. Here are some things to know .

Whether you’re looking to make your home more energy-efficient, install solar panels or buy an electric car, this guide can help you save money and fight climate change .

Starting this year, some of the money in 529 college savings accounts can be used for retirement if it’s not needed for education. Here is how it works .

Are you trying to improve your credit profile? You can now choose to have your on-time rent payments reported to the credit bureaus  to enhance your score.

Americans’ credit card debt and late payments are rising, and card interest rates remain high, but many people lack a plan to pay down their debt. Here’s what you can do .

There are few challenges facing students more daunting than paying for college. This guide can help you make sense of it all .

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10 ways to save money at the grocery store before you're shocked in the checkout line

Using coupons, planning meals in advance and shopping at different stores based on sales can help you save money on your groceries.

Americans feel the pinch at the grocery store and gas pump: Sen. Marsha Blackburn

Sen. Marsha Blackburn, R-Tenn., reacts to President Biden's new student debt relief plan as Americans struggle to pay for groceries on 'Kudlow.'

Does your grocery store bill make you nauseous? 

Grocery bills can rack up very quickly for families. With high grocery prices, it can seem impossible to save money when it comes to food and sustenance for your family. While it can be challenging to cut down on food costs, it's not impossible.

Below are 10 things you can do to save money at the checkout line. 

Food can be a big bill for families. Using coupons, taking advantage of sales and planning meals ahead of time can help you save money.  (Paola Chapdelaine for The Washington Post via Getty Images / Getty Images)

SAVE MORE MONEY: 10 CLEVER WAYS TO CUT SPENDING ON UNNECESSARY ITEMS 

• Don't skip the coupons
• Shop at different stores
• Buy in bulk if it makes sense for your family
• Don't shop on an empty stomach
• Buy generic
• Check expiration dates on items
• Take advantage of cash back credit cards
• Sign up for store loyalty programs
• Avoid delivery

1. Don't skip the coupons 

It can be a pain to go through coupons, but they can save you in the long run. 

Luckily, the process of finding coupons today is easier than it used to be. While stores do offer paper coupons you can still cut out, many stores also have digital coupons that you can pull up on your phone. 

Before heading to the store, look for coupons you can use to bring your bill down. 

2. Meal plan

If you head through the doors of the grocery store with no idea what you're going to cook for the week, you're going to overspend. 

Before you go, think about what dishes you plan on making, check to see what ingredients you already have and then write down those you need. 

Plan out your meals ahead of time and make a grocery list of everything you need before heading to the store.  (iStock / iStock)

When it comes to snacks and meals for the week, take inventory of your pantry and fridge first to make sure you aren't wasting money on duplicate items. 

Once you have your list together, stick to it as best you can.

3. Shop at different stores

Different stores have different weekly deals. One store may be having a sale on fruit, while another may have a sale on chicken.

If you have the time, going to different stores to buy items on sale can save you money. When you have your list together, figure out if any of your items are on sale. If they are, make a note to buy that specific item at that store. 

MISSISSIPPI, KANSAS, OTHER TOP STATES WHERE YOU CAN COMFORTABLY SAVE MONEY

If the multiple stores you are stopping at are far apart, and you'll be spending more on gas than saving, so this hack is not worth it. But if there are stores in proximity, it may be worth the extra trip.

You may have to visit different stores to find the best deals.  (Gabby Jones/Bloomberg via Getty Images / Getty Images)

4. Buy in bulk if it makes sense for your family

Buying in bulk from wholesale stores like Costco can save you money if it makes sense for your family size. 

There are memberships for these stores. So, if you aren't shopping there often, the membership cost may not be worth the price.

You'll also need to keep in mind that you'll need more storage space for larger items. If you live in a small apartment, buying in bulk might not work for you.

Again, compare the prices at stores like Costco to other grocery stores to determine if buying in bulk makes sense for you.  

5. Don't shop on an empty stomach

If you're shopping while hungry, you're most likely going to buy more than you would if you were full. 

Maybe you'll grab a snack while you shop, the cookie aisle will look more enticing, and you will find yourself with more items in your cart than planned. 

Plus, being hungry is distracting. You'll be more worried about getting in and out of the store as fast as you can, so you can get something to eat instead of focusing on saving money.

6. Buy generic

An easy money-saving swap you can make is buying generic rather than buying name-brand items.

FIGHTING INFLATION: EXPERTS SHARE WHAT BEHAVIORAL CHANGES, HABITS CAN SAVE YOU MAJOR CASH IN 2024 

Even just switching some of your purchases to store-brand is a good start to saving money. 

7. Check expiration dates on items

Before you put an item in your cart, especially dairy and meat, check the expiration date. 

It's better to check this while you're at the store, rather than at home realizing that you have a few days to guzzle a gallon of milk. 

8. Take advantage of cash back credit cards

Cash back credit cards are exactly what they sound like. You get cash back for the money that you spend. Since you have to spend money on food, you may as well be rewarded for it. 

You can then use your cash rewards on future grocery purchases. 

Sign up for a rewards credit card that gives you cash back for your purchases.  (Thomas Cooper/Getty Images / Getty Images)

9. Sign up for store loyalty programs

Sign up for loyalty programs at your favorite stores. Signing up can unlock perks, like exclusive deals, special coupons and sometimes even gas savings. 

GET FOX BUSINESS ON THE GO BY CLICKING HERE 

Many loyalty programs are free and easy to sign up for, but others have fees associated with them. Make sure you read the fine print before signing up. 

10. Avoid delivery

While the convenience of having your groceries delivered right to your door is hard to beat, this method of shopping is not going to help your wallet. 

If you intend to save money, do your shopping on your own. Make it a more enjoyable experience by popping in a headphone and listening to music while you shop or going shopping with a friend so you can engage in conversation as you look for the items you need. 

America's facing a retirement disaster. There's a better way.

• Australia's superannuation system mandates employer-funded retirement contributions.
• US retirement plans, by contrast, depend on employee contributions to accounts like 401(k)s. 
• If the US adopted Australia's retirement model, it could impact wage levels.

For many around the world, retirement can be a mixed bag .

Australian retirees rate their retirement happiness at 70 out of 100, according to a survey of 1,000 Australians over 60 in February by the independent researcher YouGov and investment management company Challenger Limited. Money was ranked behind good physical health as the key to a happy retirement.

Meanwhile, the US retirement system has become anxiety-inducing for many, as older adults struggle to make ends meet . More than half of Americans over the age of 65 are earning under $30,000 a year, according to a report from Sen. Bernie Sanders published in March and based on National Retirement Risk Index data.

What's more, Pew Research Center data shows that Americans over 75 are the fastest-growing age group in the workforce, a demographic that could double in the next decade. That's because many can't afford to stop working.

In the US, retirement accounts are a company benefit that employees can choose to contribute some of their paychecks to throughout their careers. Companies are not federally required to offer any kind of retirement savings account for employees or provide any monetary support for retirees. And many Americans living paycheck to paycheck aren't able to save enough to stop working.

Australia , however, requires that employers make regular contributions to a retirement fund for each employee — a system called superannuation.

Catherine Reilly, a fellow at the financial research firm TIAA Institute and a non-resident scholar at Georgetown University's Center for Retirement Initiatives, said Australia's system makes sure all adults have a retirement fund.

"Everybody is put into a plan," she said. "Whereas in the US, you only get put into a plan if you'd work for an employer that offers it."

Seventy-one percent of nonretired Americans said they are at least moderately worried about being able to fund their retirement , according to a Gallup poll of 1,013 US adults in April 2023.

Reilly said there are structural differences in how America and Australia handle savings for older adults. And while it may be tough to implement Australia's system halfway around the world — but the US could get close, she said.

Australian retirement system puts saving responsibility on employers, not employees

America's current retirement infrastructure includes two major categories: defined contribution plans and Social Security .

Defined contribution plans , which include 401(k) and IRA accounts allow employees to save and invest money that they make throughout their career, usually by depositing a percentage of their regular paycheck directly into the accounts.

Companies might also contribute to an employee's 401(k), but they are under no federal requirement to do so. The retirement accounts an employee has access to and what benefits they retain after they stop work all depend on what retirement package an individual company offers.

In a 2024 letter to investors , BlackRock CEO Larry Fink said the US retirement system puts undue pressure on employees to decide how much money to save and invest. With the rising cost of living in many US cities, it can be difficult for Americans to predict how much money they are going to need, an issue Fink called an "impossible math problem."

Fink encouraged American policymakers to study Australian superannuation , saying the "benefits could be enormous for individual retirees." 

Related stories

Social Security also comes into play when Americans retire, providing monthly government income benefits based on an individual's reported earnings. The federal insurance program is funded by taxes and provides income to retirees and workers with disabilities. Many retirees collect Social Security checks in addition to living off their 401(k) savings.

However, the Social Security trust is expected to be depleted by the mid-2030s unless there's an invention.

Traditional fixed-income pensions are no longer a common company benefit in the US, but are still offered by select government and public service jobs .

In Australia, however, companies are legally required to contribute 11% of an employee's monthly paycheck into their retirement account. This money can go into stocks, property, cash, or bonds — the employee has a choice. Employees can also contribute money, but much of the savings responsibility falls on their employer.

The employer contribution amount is set to increase to 12% next year.

Once they reach retirement age, which is between 55 and 60, depending on birth year, Australians can access the fund with their savings and investment earnings.

"It does level the playing field because everybody is put into a plan," Reilly said, adding that Australians have more choice in where and how their retirement money is saved.

As Reilly explained, superannuation also allows retirees to access their money all in one place.

This differs from the American system, where retirees' money is often held between a 401(k), other accounts, and outside investments. If an American employee works at multiple different companies during their career, Reilly said it can also complicate their retirement funds.

Additionally, Australian government age pensions aren't the same as Social Security. Retirees must meet a low enough asset criteria to access the age pension. Reilly said the more limited pension might be a disadvantage of the Australian system because many people's retirement is almost entirely dependent on their superannuation funds.

If the US adopted superannuation, it could impact employee salaries

Although the Australian government sets the terms for superannuation, it is managed by the private sector. Employers manage the retirement funds for their employees without much political oversight.

If America adopted superannuation, Reilly expects the system would work similarly — the federal government could establish what percentage of an employee's income employers need to contribute, but then companies could organize the retirement funds on their own.

She pointed to pooled-employer plans , a retirement fund strategy that is already being tried in the US, allowing multiple companies to contribute to a single retirement fund for an employee if that person chooses to work at different companies throughout their career. Some individual states, such as California and Colorado, also require that employees are automatically enrolled in some kind of retirement plan.

"In the US, the infrastructure for having the private sector manage these funds — that all exists already," Reilly said. "And I think that would be a sensible way to do things."

Still, Reilly cautioned that applying Australia's retirement system to the US could negatively affect employee wages . Because, for companies, it would be "very unpopular," she said.

When a company hires someone new, she said they consider the total cost of employing that person. This includes salary, bonuses, and benefits . If US employers become legally required to contribute to retirement funds, Reilly said companies may lower their employees' salaries to offset this new cost.

Still, a system like superannuation could help ensure a retirement fund for the 56 million private sector employees who don't have retirement benefits through their employer, The Pew Charitable Trust reported in January.

Did you retire and later choose to return to work? Do you feel like you can't retire because of your financial situation? Reach out to this reporter at [email protected] .

Watch: Nearly 50,000 tech workers have been laid off — but there's a hack to avoid layoffs

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This couple bought a rundown abandoned house for $1.5 million and plan to make it their forever home: Take a look inside

In October 2023, Nick Volkov came across a unique listing for a house and just knew he had to show it to his girlfriend, Jenna Phipps , a 28-year-old content creator.

Though the listing included pictures of the exterior only and described the house as a "tear-down," the 27-year-old program manager tells CNBC Make It that what stood out the most about the property in Vancouver, British Columbia, Canada, was that it was undervalued, had a water view, and wasn't a standard modern house.

Phipps says she fell in love with the property and knew they had to go see it immediately, but "when we finally got to see the house [in person], we saw it was a lot worse."

"There was a reason they didn't show photos of the inside," she says.

The property in question is a 2,757-square-foot single-family home built in 1961. It has three bedrooms, 2.5 bathrooms, a pool, and 0.30 acres of land.

The house was so dilapidated that the realtor had the couple sign a waiver before entering.

"You can really see this property had not been cared for at all," Volkov says. "Once you got inside, there was a really musky smell with the old furniture and old things there."

Still, they were able to find some beauty in the space: "The architecture showed through all of that. You could see what it was in its former days," Volkov says. "Even with it half falling apart, it was still really pretty."

One of the most significant issues the couple encountered immediately was that the roof needed to be replaced. Other issues included completely overgrown landscaping, mold throughout, and high levels of moisture from all the water that had come into the house over the years.

Despite all the flaws, Phipps knew she and Volkov had found their forever home.

"I think the biggest thing that stood out to me was the architecture of the home because mid-century modern homes are so rare for the area," she said. "We looked past how bad it was because we knew that we could really transform ourselves. This house has so much potential and we felt very special to be the people to see that."

The couple decided to make an offer.

The house was valued at $3.4 million CAD or $2.5 million USD with an asking price of $2.6 million CAD or $1.9 million USD.

Because of the property's condition, Volkov and Phipps could not get a traditional mortgage and had to opt for a private two-year loan instead.

The couple met with the seller and shared their plans to restore the home instead of tearing it down. The seller then agreed to their bid of $2.1 million CAD or $1,525,923 USD.

The median list price of homes in Vancouver, BC, overall was $1,578,540 in March 2024, according to Houseful , a subsidiary of the Royal Bank of Canada.

The couple split the 20% down payment evenly.

"People were very shocked at how we were able to get that price, especially in that area," Phipps says. "We kind of bought the worst thing in a great neighborhood."

Phipps and Volkov agree that, for them, landing in their desired neighborhood means they got a pretty good deal.

The couple plans to use the two years they have to repay their private loan to fix up the house as much as possible and then refinance and get a traditional mortgage.

When the two took possession of the home, it had been empty for four years. A family built it in the 1960s, and then it was passed down to two siblings, a son and a daughter. The son, an architect, lived in the home for many years, and then, when he passed away, the house went to his sister, who then sold it to Phipps and Volkov.

Because the seller lived several hours away, she would rarely visit, which is why the property was so deteriorated, the couple says.

"It was in a state that probably no one should have lived there," Phipps says. "She would come to visit and take things out, but no one lived there for years."

After closing on the house, the real work began

The couple closed in January 2024 and started the clearing-out process immediately. The first step was to put tarps all over the roof to ensure no more water or moisture entered the house.

"It was a very eventful first weekend of just trying to maintain what the house looked liked and not letting it get worse," Phipps says.

While cleaning out the home, they found some of the original furniture, old photos of what the house looked like before, and a record player that was hooked up to speakers all over the house. Volkov found that discovery pretty exciting.

"Imagine having a house back in the day and you could play music everywhere in it from a record player," he says. "The record player was still there when we bought the house, so that was really cool."

There was a lot of mold and potentially hazardous areas in the house, that the couple tackled themselves. The two bought full-face gas masks and got to work. It was also a way for them to save money.

After several months of cleaning, the two enlisted their parents' help to get it down to the studs. Now, the couple is working with an engineer to get a new roof on before winter starts this year and has shifted to clearing out the house's grounds.

"The property was very overgrown, and unfortunately, a lot of the greenery will have to be taken out," Phipps says.

The couple plans to keep as much of the house's original design as possible. They are still in the process of getting the permits they need to start construction.

Volkov and Phipps plan to keep the mid-century modern look and feel for the exterior with modern appliances and features throughout the house inside.

To date, the couple estimates they have invested $10,000 CAD and hopes to keep the full renovation under $300,000 CAD.

"Over the next two years, we're putting everything we have into the home and living the frugal lifestyle," Phipps says.

They plan to do much of the work themselves and will split the costs, with Volkov paying off the private loan and Phipps paying for all the renovation expenses.

"We decided to do that to keep the flow going and help keep costs down," Volkov says. "The really fun part of it all is that you get to witness every stage of the construction."

Conversions to USD were done on April 19, 2024, using OANDA conversion rates of 1 CAD to 0.73 USD. All amounts are rounded to the nearest dollar.

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