Many artists paint, stitch and print. Crafting can be a great way to unwind and let your creative side shine.
What if you were told that craft could be much more than a hobby?
Statista estimates the global crafts market will reach approximately $50.9 billion in 2024. It’s easier than ever before to start a craft shop online.
Building an online craft shop can turn your passion into a money-making business. You can later decide if you want to do it full-time or if you want it to be an extra income.
How do you start? This 9-step guide will help you create your own craft business.
What do I need to start a craft business?
Find a Gap In The MarketDecide what you want to sell before starting your crafts business. What you “craft” depends in part on what you enjoy making. It’s essential also to do market research and find out what your business can sell.
Ask yourself what products you can offer your customers through your brand that will make them more inclined to purchase from you. You might be a great soap maker, but many others do the same thing. How will you stand out from the crowd? You could offer soaps that are 100% organic or made from unique ingredients.
To understand trends, you can use secondary market research by groups such as MarketResearch.com, Nielsen, or NPD. You might consider the following:
Custom Art People love to commission pieces explicitly tailored to their needs. You can sell portraits of customers or pets or create art based on what your clients like.
Gift Baskets Many people need help choosing the right gift for someone special. Why not relieve your audience of stress by providing them with pre-made baskets specially designed for specific occasions?
Beauty and skincare: This is a massive industry in its own right. Selling perfumes, soaps, and bath bombs will allow you to combine your love for beauty with your passion for creation.
Jewelry – Make double pearl earrings. Try your hand at making a DIY necklace. Jewelry is an excellent option for easy crafts. You can turn your passion for jewelry design into a profitable business if you discover that people like your designs.
Use Google Trends for extra inspiration to see what’s being talked about in your field. Ask your friends to tell you what they’d love to purchase.
You could sell hat boxes in your craft shop.
Learn more about your audience
The crafts industry offers a lot of diversity for those interested in starting a business. You can sell to various demographics and segments based on your products.
You can target older customers who have the money to purchase items for their homes. You can target a younger audience if you sell handmade friendship bracelets or bath bombs.
Consider the people most likely to fall in love with your product. If you start a small business selling blankets for babies, you may find that the primary customers are new parents. You could also target relatives looking for baby shower presents.
Consider the following when researching your target audience:
The primary reasons for purchasing your product
Pushing the pain points
Likes and dislikes
Age, gender, and location
You can find additional data about your customers on sites like the U.S. Census Bureau website, Nielsen, and even Facebook Audience Insights tools for better social media targeting. Census Bureau, Nielsen, and Facebook Audience Insights are all great tools for improving social media targeting.
Create a Business plan
You may get carried away when learning how to sell crafts online. For example, plan which products to sell or find your target market. It’s best to plan first.
A craft business plan should be created. Imagine it as a compass that will guide you in the right direction no matter what the industry is doing.
Business plans help you to remember your vision and mission. These documents can also be handy when securing business funding from a lender or investor. Here are some points that your plan should contain:
You can use video tutorials to help you create your business plan if you are still trying to figure out how to start a business. You can also use a template. You can change the information to reflect your vision and company.
This step is where you will develop a plan for creating your craft. You can jump right into the process in several ways. You could explore online lessons or webinars to learn how to improve skills that you already possess. For example, if you enjoy making jewelry, you might learn how to design your earrings or make chains. Try:
Online workshops. There are various sites, such as CreativeBug, where you can learn knitting, crocheting, sewing, quilting, and more. YouTube and Facebook may have videos to assist you.
Experimenting: Start with the craft you like most. If you like the idea, it’s worth researching the ingredients available online. If you are considering starting a ceramics business, invest in the necessary tools to create beautiful ceramics.
Create a space in your home. You must be well prepared if you are learning to run a home-based craft business. Create an area where you can do things such as upcycling furniture and knitting customer blankets. Be sure to have the right tools and enough storage space.
As part of your checklist, you should ensure that your business is correctly set up from a legal and logistical perspective. You don’t need to register a business just because you run a small company that sells handmade scarves.
You can get a lot of information on how to set up a business in the craft industry online legally, or you can speak to a professional tax advisor.
Consider consulting a professional if you are worried that you may not have all the documents you need or do not know what some documents mean.