The business of making and selling handcrafted products has become extremely popular over the last few years. With the growth of online handmade marketplaces like Etsy, you could say that after decades of being seen as tacky or inferior, handmade has at last come into its own.
But how do you start your own craft business? Starting your own business can be one of the most exciting things you ever do. But it can also be terrifying. Being self employed is no easy feat and it’s certainly not for everyone. There’s a reason people say, “Don’t quit your day job.” The key to being successful with your craft business is to think and plan ahead. As with any task or goal, a well researched plan of action will get you off to a good start.
Here are some basic tips on how to start a craft business from the ground up.
1. Choose a product line.
One of the first things you should do when starting a new craft business is to decide what it is you want to make and sell. Many new craft sellers make the mistake of trying to start with too many ideas. The best way to build a business is to begin with one or two good ideas, and then expand from there in time.
To help you decide what products you will sell first, think about your specific skills. What crafts are you best at? For instance, if you are an expert at quilting, but you also dabble in knitting or needle felting, start with quilted items. You want to put your best foot forward, so you should make your first available merchandise of the very best quality that you can produce. This will help your business to start off with a great public image, which will in time build your reputation. You can always add new product lines once you have been established for a while.
2. Choose a business name.
Your business name is generally the first thing that potential customers will see. It identifies you as a merchant, gives customers an idea of what you sell and gives a little insight into your personality. You should think very carefully about your business name because you want it to make an impact.
A lot of new business owners like to use their own name in their business name–such as Katie’s Cute Quilts. While there’s nothing inherently wrong with this idea, ‘Katie’ is a wasted word. Why? Because no one knows, or cares, who Katie is. Potential customers are not going to be searching for a business based on a first name. They are going to be looking for things like specific products, locations, crafting techniques, etc. ‘Cute’ is a wasted word as well, because the term is fairly subjective. What one person thinks is cute, another might just as easily think of as tacky.
Try to incorporate specific, descriptive words into your business name. This way, you will draw more traffic to your Web site or more customers to your craft table. Think about the impact of a business name like Greenville Country Quilts. This business name tells customers specifically where the company is located, what products they make, and the style of the products. It’s much more precise than Katie’s Cute Quilts.
3. Choose a selling venue.
Where and how you choose to sell your handmade products is also a major decision to make for any new craft business owner. Many people choose to sell exclusively online, while others prefer to sell at craft fairs and other events. You may also be interested in getting your products into local shops on consignment. There are many different ways of selling your wares. So, how do you decide which method of selling is best for you?
Research is key to choosing the right selling venue. If you’re interested in selling online, look at several different online craft marketplaces or social media platforms and find out what makes each one unique. If you can, talk to other sellers on those sites to get an idea of how happy they are with their experience. You can also look at reviews of these Web sites around the Internet. Or you could join a crafting forum to talk to other crafters around the world about how and where they sell online.
If you want to sell at craft fairs, the best place to start looking for events is by searching online. However, don’t forget to look into local events that may not be advertised on the Internet. You can often find out about local fairs by checking newspapers, reading announcement boards at libraries, or simply asking around. A lot of fellow crafters are happy to share their experiences with various craft fairs.
Getting your handmade products into local shops can seem intimidating. But it’s really not that difficult a process once you know where to start. Gather some good photographs of your work and create a portfolio, or pack some samples of your work neatly in a presentation case or box. Take your work or photos to any local shops you’re interested in and ask them if they take consignment. Many shop owners will happily look at your products and give you a form to fill out so that you can get started selling with them. If your products are good, there’s no reason to be timid about asking.
4. Decide on a business structure.
The final step, and probably the most important, is to get your business structure in order. Some countries require you to register as self employed before you begin selling, while others will allow you to simply file your self employment tax return at the end of your first year of business.
You may also want to look into separating your business and personal assets in the unlikely but possible event that you could be sued. I’m a big fan of having an LLC since it’s easier to run than a Corporation. This site has a lot of info on when and why you would choose to form an LLC.
It’s vital that you follow the tax laws of your state and country if you want to run a successful craft business that will grow and thrive for years to come. There’s no excuse for not filing your taxes, no matter how much of a pain you may find it to be. It’s always better to have your paperwork in order.
In conclusion, the Internet has made it easy for almost anyone to start a craft business. In fact, in today’s economy, many people are choosing self employment as a more certain way of earning money. If you love crafting and you’re good at it, you’re in the perfect position to start your own business. Just remember to start with a good, solid plan.
5. Make sure your business is properly registered.
Every state and community has different rules and regulations on starting a business. A nice resource with the steps to start a business in each state are located at StartingYourBusiness.com. In addition to the guide they have a free program that let’s entrepreneurs ask questions to help them start their business.