How to start a craft business?

How did you get your start in crafts?


What are the most profitable crafts to sell?


What are the easiest crafts to sell?


What are the easiest crafts to make?


Do you have to get permits and liscense to sell crafts?


How can you stay tax legal?


Is it easy to stay tax legal?


What is the easiest way to sell? (fairs, festivals, consignment shop, from home, internet,. . .)


Is advertising and marketing profitable?


What kind of banking and investments should be made for the business?


What is the proper way to sell?


How do you price effectively?


Where is the best place to get information on craft businesses?


Any other advice?


What is the best advice you could give to someone wanting to be in the business?

There is a big gap between crafts as a hobby and crafts as a business. It is only the traditional artists who earn their livelihood from crafts as a business. But these artists are not equipped to run a crafts business in today's market conditions. They neither have the capital nor the marketing skills to turn their crafts business into a profitable cottage industry. However, you can do so if you apply yourself.

Skills and qualifications:
You need not have a degree in business administration to start a crafts business. But you certainly need to be market savvy. You should know everything about book-keeping, inventory management, pricing and promotion. Of course, you need to know your craft.

First steps:
Before you start your crafts business you must find out about zoning regulations, licenses and permits. You must acquaint yourself with IRS regulations as well as federal regulations applicable to your crafts business. You need to register the name of your crafts business with local officials and obtain a retailer's occupation tax registration number.

You must also research your market. You must visit crafts fairs and crafts malls to find out what is selling; read trade publications, and talk to craftsmen to learn about their experience. You must also research your competition. Internet is a great place to research products. It is also quick and efficient. Spend as much time on the net as possible to find out how sites are selling products. Don't start a business in an area which is already crowded. You will be forced to compromise on costs, and your per customer acquisition costs will soar.

Pricing strategy:
There are two aspects to any pricing strategy for a crafts business. The first is the actual costs. You need to add every direct and indirect cost, including invisible costs like your efforts to promote the business. You should also remember costs like business licenses, accountant fees and promotional costs. Based on this, you can arrive at a per unit figure. Now add your expected profit to arrive at the sale price.

After this, check this sale price with the price being charged by other craft makers. You have a problem if this price is more than the price being charged for similar products. Your product may not sell. If you lower the price, it may become financially unviable. You therefore should work on those products that are competitively priced and which deliver good returns.

You also need to draw a business plan. This gives you a clear idea of your start up costs and returns. The business plan must be revised from time to time, to keep it in tune with the growth of your business.

More info and links to help you at the source

Check out the book "You Can Make Money From Your Arts And Crafts" by Steve and Cindy Long.This is a very good book to get you started.Very inspiring and lots of good info.

talk to your local craft shops. see how they started. pick a craft that you really love doing. ask them all your questions, they will be most happy to answer them.

for me, as i am in the process of opening my own webshop selling my Quilling, i did alot of research in my area of expertise, both locally in the card shops, newagents, internet etc.

the prices are dependant how on complex the design is and how much of embellishments, paper strips and so on would cost. i tested the market by selling to family and friends, and have so far been well received.

Quilling started out as a hobby, but since then, i've decided to take the plunge and open up a little store online. but first, i must complete a course in "Running a Small Business" as soon as that is done and my website completed, my business will be opened to the world.

All i can say is, if you have the love for a particular craft and you want to start a business with it, there is nothing holding you back. You won't know until you give it a try!