How to Start a Craft Business in 2022
Some people think that craft businesses need to spend all their time doing their favorite hobbies. But there are many elements that go into legally starting a craft business and running the business. The following post will show you how to start a craft business and turn your passion into a source of income.
Craftsmanship in 2022
The handmade business industry is booming in 2022 as consumers look for unique products and online marketplaces that make them easily accessible. However, not all crafting projects are exclusively online. There are also craft markets, flea markets and local retail shops that can sell handmade items.
Why you should consider starting a craft business
If you are thinking of becoming a new craft business owner, here are some of the key benefits to consider:
- Turn your passion into a job: If you’re looking to start a crafting business, it’s probably because you already have some crafting skills that you enjoy. This can be a perfect way to create a job that you really enjoy.
- Enjoy flexibility in terms of time: Whether you sell online or at local consignment stores, you probably make most of your products from home on your own schedule. This can leave room for work-life balance or full-time work while you get your new business off the ground.
- Start for little money: Starting a craft business usually only requires some supplies and possibly domain or marketplace fees. It can be one of the least expensive industries to break into.
- Create multiple revenue streams: There is an option to create multiple product lines or offer your products in different ways to diversify your income. For example, you can offer finished products as well as surplus craft supplies that you didn’t use.
- build community: There are many ways to involve others in your crafting business. You can have your kids help you pack orders or collaborate with friends and local events. Many craft entrepreneurs are also happy about active online communities.
Start a craft business in 12 easy steps
Each crafting shop may look slightly different based on niche and skill level. However, here are some basic steps to help you go from just a hobby to a full-fledged business.
1. Research your niche
Most crafts have a niche, be it knitwear or hand-carved wooden figurines. Get to know the other companies that sell similar items so you know where there might be vacancies to differentiate your own offerings.
2. Choose a name
A name tells customers what to expect from your business and can help your brand stand out from the crowd. Search your state’s database and online to make sure your choice isn’t already taken.
3. Create a formal business plan
Your crafting business plan should detail everything from what you sell to how you reach customers. There are many templates online to get you started.
4. Select a company structure
Your business entity determines how your business is taxed and what legal form it takes. For example, sole proprietorships are generally treated as natural persons. But a limited liability company separates your business assets from your personal assets if there is a problem.
5. Get a business license
Depending on what you sell and where you operate, you may need to register your business with your local government. Check with your registrar and city clerk for the appropriate forms.
6. Select How to sell products
Are you planning to sell crafts online or use other opportunities like craft markets? You can even use a mix of strategies to reach customers.
7. Open a commercial bank account
Keep your business finances separate for easy tracking. Open a bank account and start tracking income and expenses.
8. Sources of supply
Think about what items you need to create your inventory and then stock up on supplies. Consider wholesale suppliers to save money on products you need in bulk. Also, don’t forget the shipping supplies like boxes and labels!
9. Create an inventory
Then it’s time to hone your craft and craft enough items to build your product line. Find places to store your products before they go on sale.
10. Photograph products
If you sell online or create marketing materials, you need photos of your products. Handmade products usually appear on a plain white background with natural light. Practice photography or work with a pro to take eye-catching photos.
11. Prize Article
To determine prices, calculate how much both materials and labor cost. Then compare similar items and do research to determine market demand.
12. Create a marketing strategy
Once the basics are in place, it’s time to get your business out there. Consider social media marketing, buying ads on marketplace sites, or getting press attention in your local community.
How much does it cost to start your own craft business?
The cost of starting a craft business varies widely depending on the type of products you sell and whether or not you need a physical location. Those with an online store can often start a craft business for less than $100. Those who require expensive inventory or physical location may need as much as $50,000.
Are craft businesses profitable?
Crafting can result in a profitable business, especially since these businesses are generally inexpensive to start. To keep the business profitable, you need to price the products high enough to cover all costs. Consider not only your materials, but also your website and marketing costs, your time, and support costs like shipping and storage.
How can you start an online craft business with no money?
Selling online through free marketplace sites can allow you to start a craft business with no money. Just use recycled materials or items you already have around your house. Then sell to friends or list items on free sites or social media. Then use your earnings to build your own website or list products on paid sites like Etsy and Amazon.
Image: Envato Elements