Start a Craft Business - Make Money Crafting

What Licenses Do Crafters Need to Sell at Craft Shows?

When operating a business selling handcrafted items at craft fairs, flea markets, farmers market, and festivals there are some licenses and other requirements to be aware of.

Let’s look at a few of these!

Business License

There isn’t a business license specifically for crafting business or attending craft shows, however, some areas require a general business license in order to operate.

Licensing requirements vary by state and in some, a business license will be needed in order to operate, while in some, only the local municipalities require one. And this goes for home-based businesses as well, so it’s important to research the basic requirements to start a business in your area.

When you first get started, nobody is likely going to notice your business, but as you grow, the business is more visible, making you a bigger target.

Business Entity

Owning a business means needing to select a business entity (sometimes referred to as a business structure). Some entities are simply the individual (sole proprietorship). However, if a sole proprietorship (and general partnership) business is sued, the owner’s personal assets are at risk. While that isn’t a likely scenario for most businesses selling crafts, it is worth researching to make sure the correct entity is selected. Here is a brief summary of the different types of entities:

Sole Proprietorship

A sole proprietorship is a business entity for either an individual or a married couple who pursue entrepreneurship. This entity has benefits such as:

The least expensive business entity to form
No need for a FEIN (Federal Employer Identification Number) unless the sole proprietorship has employees

Sole proprietorships are one of the most chosen entities of the four, with an estimation of 73% of American businesses being sole proprietorships.

There is potentially more risk with sole proprietorship because, unlike a corporation, the owner and business are considered the same entity.

General Partnerships

A general partnership is when a group of two or more people go into business together. This entity is similar to a sole proprietorship in that there isn’t a formal filing requirement in most states. The income that is generated from a general partnership is subject to self-employment tax and does not pay tax through business income but instead personal losses of the group making up the general partnership.

Corporations

Corporations, as a business entity, are separate from the individual. Unlike previous business structures like sole proprietorships and general partnerships, operating your business as a corporation protects your personal finances if the company were to be sued.

Limited Liability Company (LLC)

An LLC or Limited Liability Company is a business entity that sits in between a corporation and a sole proprietorship in the way that an LLC provides the security of personal assets if anything were to happen to the company.

Business Name

While most craft businesses will operate as a sole proprietorship, if they are operating under a business name that is different from the owner’s full first and last name, they may need to register to use their business name. In most states, a DBA sometimes referred to as a Doing Business As, Fictitious Name, or Assumed Name will need to be registered for in order to legally operate under that name.

Sales Tax Permit

Craft businesses selling their products at craft fairs and festivals will likely need to register for a sales tax permit (sometimes referred to as a seller’s permit sales and use tax permit, vendors license, or sales tax license) in order to collect sales tax. In some states, if a business is temporarily selling at events in different states they can get a one-time special event or temporary sales tax permit.

It’s important to note that the sales tax rate will vary on the location where the retail location is set up at.

The show organizers of craft shows are liable to the state for tax on sales made by their vendors, so they will be checking to make sure everyone is registered.

Sales tax requirements vary by state, so be sure to do your research before selling your crafts.

How to Start a Craft Business

The business of making and selling handcrafted products has become extremely popular over the last few years. With the growth of the craft industry, especially on the 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 will also be a lot of hard work. 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. Write a business plan

While you may not think you need a business plan, this will force you to get ideas about the business out of your head and on paper. It covers important things like who am I selling to, how do I market to them, is this full-time business or a side project to make some extra money, how many items do I need to sell to actually make a profit. You know, the important stuff.

Also see – How much money can you make with a craft business?

A formal business plan may be overkill, especially if you aren’t needing funding for the costs to start a craft business, but don’t skip this step. There are craft business plan templates out there to help you get started so you aren’t just staring at a blank piece of paper.

2. 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 unique products and then expand from there in time.

Also see – How to make craft products that stand out from the crowd

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.

3. 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 names 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 company 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.

4. 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, and some in their own retail shop, while others prefer to sell at craft fairs, flea markets, and other events. You may also be interested in getting your products into consignment shops. There are many different ways of selling your craft items. So, how do you decide which method of selling is best for you?

What Licenses do Crafters Need to Sell at Craft Shows?

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, like Facebook, Instagram or Pinterest, 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. Be sure to have lots of business cards, so people can find you after the shows.

Also see – Where to market a craft business

Getting your handmade goods 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.

Also see – How to market a craft business

Keep in mind that in addition to knowing where you are going to sell your handmade business wares, you will need to also look at collecting sales tax if you are selling in a state that charges it. Sales tax tends to vary depending on where products are being sold, such as when selling at a craft fair or craft show.

5. Decide on a business structure.

The final step, and probably the most important, is to get your business structure (sometimes called a legal structure or business entity) in order. Some states require you to register as self-employed (sole proprietorship) 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 small business and personal assets in the unlikely but possible event that you could be sued. I’m a big fan of having a Limited Liability Company (LLC) since it’s easier to run than a Corporation. Learn more about business structures and try the quiz to find which one is right for you.

It’s vital that you follow the tax laws of your state and country if you want to run a successful 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.

6. Make sure your business is properly registered.

Every state and community has different rules and regulations for starting a business. Many owners set-up as home-based craft businesses to keep overhead low, so be sure to check at the local level to see if there if a home-based business needs to get a business license.

A nice resource with the steps to start a business in each state is located at StartingYourBusiness.com.

How Much Money Can You Make with a Craft Business?

So, you’ve decided to give up the rat race and start working from home running a craft business. The idea of working for yourself, creating your own hours, and having a much more flexible lifestyle, is appealing to many people. But have you considered how much money you will need to make for this new career choice or side hustle to really work for you?

A lot of people starting new businesses assume that it’s easy to make money and make ends meet. But in order to pay your bills, buy food, and afford any of life’s little luxuries, you will need to make a reasonable salary from your business. How much you need to make will depend on a lot of things, such as the cost of your rent and whether or not you have any dependents living under your roof.

Also see – How to start a craft business

Making money selling crafts is not an easy job. It often requires long hours that you would never have to work if you had a 9-5 office job. Many new craft business owners don’t even last a year before they decide that they can’t make a living this way.

So, how much money can you make with a craft business?

The answer to this question is not simple. But if I could quantify it, I would say that you get out of your business what you put in. In other words, if you are willing to work hard, dedicate yourself to long hours, and give up other time-consuming tasks and hobbies that may interfere, you can make enough to live on. If you are wanting to make some extra money in your spare time, a craft business can help with that as well.

It may not be a lot. In fact, it will probably be less than what you would make at most other jobs, especially for the first year or two. I’m not going to lie to you–in my first year of business, I only made around $100. But I wasn’t dedicating myself to the task and putting in the work that I could have. It can be done.

Here’s how to make enough money to live off your craft business.

1. Plan ahead

Know what you’re planning to do and how you’re going to do it. Decide how much you want to make in a year, then break that down to how much you need to make a month, week, or even day if that’s easier for you to concentrate on.

You will also need to work out how much you want to make per hour to help you determine prices for your handmade items. Don’t forget to take into account things like the cost of materials and time spent buying materials too.

Once you have priced items, you can figure out how many things you will need to sell in a day in order to make the monthly salary you require for your living expenses and bills. Knowing how many items you need to sell in a day can also help you to plan your productivity levels, because you will also need to make a certain number of items a day in order to keep your shop, Web site, or craft table well-stocked.

2. Make a schedule

One of the hardest things about working for yourself is staying motivated. Being your own boss is not always easy. Getting up early in the morning can seem unnecessary since you’re already at your place of work. Getting dressed can seem pointless too. Why make an effort when no one is going to see you?

First off you need a schedule. Yes, a schedule, as in a calendar. If you don’t plan out your workday, or at the very least plan a rough schedule for the week, you will find it difficult to get anything done. You, and only you, are responsible for every single aspect of this craft business and if you seriously want to make enough money to live on, you will absolutely need to whip yourself into shape.

One way to make a schedule is to choose certain days for certain tasks. For instance, you could reserve Monday to Thursday for creating new stock, Friday for listing that stock online, Saturday for going to the post office, and Sunday for marketing your business. This is just one example of how you can schedule your week. There are infinite options, of course, and you should choose whatever works best for you.

3. Eliminate distractions

Even if you plan to just operate online with your own website, Facebook page, or an Etsy shop, it’s important to stay focused. When friends and family learn you are working from home, they will stop by and interrupt you or ask you to do things for them. If you don’t have a long-term plan in place on how to deal with these interruptions, it’s going to be harder on you. You’ll also want a quiet place to work where you won’t easily be distracted or often interrupted. You don’t have to have an office but it helps if you can dedicate a specific area of your home to work.

Work in an area where you won’t be distracted by things like the TV, the phone, music, or even computer games or social media. If you use social media, E-mail, and Web sites for your business, try to dedicate a specific day, or time of day, to computer use so that you aren’t constantly switching back and forth between crafting and browsing the Internet.

Make sure you tell those you live with what your schedule is and that you expect that to be respected, as it would be with any other job. If you make this a priority from the beginning, family members and friends will be less likely to bother you during work hours.

4. Be professional

Professionalism and good customer service are vital to the success of your craft business. You need to present a professional image to your potential customers at all times. This means you need to be professional in your communication, your photography, your product descriptions, business cards, and your finances.

Good communication with your customers is key. Not only when you are selling at events like craft fairs, flea markets, farmers’ markets, but also with online stores or even your social media replies on Facebook, Instagram, Twitter and Pinterest as well. How you communicate with them can make the difference between a one-time purchaser and a regular, repeat customer. Make sure that you respond to questions in a timely manner. Always be polite and helpful. Customers will come back if they feel like they’ve been treated well and with individual care.

Put these tactics into practice when running your craft business and you will more than likely be able to make enough money to live on. Don’t be discouraged if it takes a few months, or even a year, to work up to a sales level that brings in enough. Keep putting the time and effort in and eventually, you have a successful business and make consistent money.

How To Market a Craft Business

One of the most important features of any successful craft business is a great marketing plan. How you choose to market can make or break your business. But how do you go about marketing your business? And what if you can’t afford to advertise?

When I first began my craft business, I knew very little about how to market my products. Although in the past I studied creative writing, corresponded for a newspaper, and even worked in the marketing department of a publishing house, I knew very little about advertising. I also had no money to invest in advertising my business, so I knew that all of my advertising was going to have to be done through my own persistent hard work. And I was going to have to teach myself almost everything.

Here are some things I have learned over the years on how you can start successfully marking a craft business. [keyword says ‘marking’ instead of marketing’]

1. Take advantage of social media.
Social media networks like Facebook, Twitter, Tumbler and Pinterest are a great way of marketing your craft business for free. It takes time to build up a network of people on these Web sites, but you can easily get started by adding everyone you know in real life. Ask your friends to share your photos or like your business page. The more you share on these social sites, the more traffic you will get to your page or store.

Keep in mind that social media is always changing, and while one platform may be popular right now, another may become more popular in time. For instance, when I first started marketing my craft business, Facebook was the be-all and end-all in social media marketing. However, the trend has now turned more toward Twitter and Pinterest. Keep your eyes open for changes, and instead of shying away from them, try to embrace them so that you can keep up with the trends.

You can also vary the kind of material you post based on the networks you use. For instance, Pinterest is best for images, such as photos of your latest line of products, while Twitter is great for short bursts of texts, such as a discount offer on one of your items.

2. Create a blog for your business.
A blog is another great way to market your craft business. Again, it’s free, and it’s a fun way to interact with your potential customers. When you sell online you can often use Google analytics to find out where your traffic is coming from. I’ve had a lot of traffic come to my Etsy shop straight from my blog, or from another crafting blog that has featured some of my work.

You can use your blog to talk about the process of your work, share photos of your products, and even host contests. Giving away free products is a great way to drive traffic to your blog.

To get your work featured on another blog, contact fellow craft sellers on social media networks, your preferred selling Web site, or simply ask a friend. Many bloggers are happy to do a feature for free, or in exchange for being featured on your blog. Some will also do product reviews if you offer them a freebie.

3. Network at local fairs and events.
Craft fairs and other local events are a great place to network with other crafters as well as potential customers. Hand out business cards or fliers with your business information on them so that everyone you meet can connect with you on Facebook or your Web site. Include any other relevant information too, such as if you take custom orders.

Make sure that you have plenty of business cards or fliers printed in advance. I have always felt that professionally done business cards are best, but there is no reason why you can’t make your own as long as they look good and do the job. Have a stack of cards or fliers on your craft table and be sure to slip one into every shopping bag too.

When you present your wares in a physical location to a live customer base, you can also talk to people to get feedback about your work. It’s a wonderful way to meet more people who are interested in the handmade business. Even if I don’t sell anything at one particular fair, I generally find that the networking I get done makes the experience worth it.

If you plan to sell, be sure to make sure your business is licensed to sell at craft shows.

4. Ask as many questions as you can.
The very best way to learn as much as you can about marketing your craft business is to ask questions. Every time you meet a new crafter or you find a new craft business that you admire, ask how they market their work. Some people may not wish to share the details with you, but many are happy to help. Be polite and explain that you’re new to the business and would like to try different advertising ideas.

Almost everything I learned about social media networking was learned from other crafters. I did gain a lot of insight by reading articles online and experimenting with my own ideas, but I would have to say that my most invaluable tips came from other successful craft business owners. You could fairly say that we’re all in this together.

5. Always put your best foot forward.
Finally, when marketing your craft business, always remember to present your very best work. Choose high quality photos, proofread your text and be professional at all times.
By showing your professionalism through your marketing plan, you will send a clear message to potential customers that you know what you’re doing and that you’re one of the best in the business.

I hope that these tips from my own personal experience will help you as you create a marketing plan for your craft business.

Where To Sell Your Craft Products

You’ve chosen a name for your business. You’ve designed some wonderful products. Maybe you’ve even built a Facebook page and a Pinterest account especially for marketing your craft business. But how do you know where to sell your products?

There’s much debate amongst craft business owners about where to sell your crafts. Some swear by selling online and only online. Others insist that selling in person works better for them. And even if you already know which method you prefer, there are many different specific options for selling online or in person, so how do you decide amongst those?

Here are some pros and cons of a few online and physical locations for selling your craft products. I hope that this will help you to decide the best place for selling your handmade wares.

1. Online Sales Venues

Online sales venues offer a lot of conveniences, and often fewer costs, that you wouldn’t get selling in a physical location. For instance, selling online doesn’t require paying rent for a shop space or paying a percent of consignment sales. But there can be some negative sides to online selling too, such as Paypal fees.

Etsy

Etsy is a very popular online selling venue with more than 800,000 registered users. The site ranked second in the 2014 Sellers Choice Top Online Marketplaces and also ranked second in overall profitability in the same study, Ebay being the only site ranking higher in profitability.

Advantages of Etsy:

• Low listing fees of $0.20 per item for four months.
• A community of fellow sellers who share tips and ideas.
• User friendly interfacing for buyers and sellers.
• A great reputation for the site worldwide.

Disadvantages of Etsy:

• Slow communication from help desk due to so many users.
• Percentage of sales taken by Etsy.
• More competition with products similar to yours.
• Links and content from other shops is always visible to buyers.

ArtFire

ArtFire is another popular online marketplace for handmade products. While it’s not as popular, it does have some advantages over Etsy.

Advantages of ArtFire:

• Not as much competition as larger handmade sites like Etsy.
• Buyers can post ‘wanted ads’, similar to Etsy’s former ‘Alchemy’ requests, which no longer exists.
• No listing fees for individual products.
• Lots of customization features for your shop.

Disadvantages of ArtFire:

• Less well known site which lacks the reputation of bigger sites like Etsy.
• Monthly fee of $12.95, regardless of if you sell anything in that time.
• Less media attention to the site as a whole.
• Less traffic to individual shops than bigger sites like Etsy.

DaWanda

DaWanda is a German based online marketplace that allows sellers worldwide to create shops and sell their handmade merchandise. It’s another venue that’s gaining popularity fast but still doesn’t rank as high as Etsy when it comes to customer traffic to the site.

Advantages of DaWanda

• No fees taken on postage costs.
• No listing fees for individual items at present (though this could change.)
• Free to create an account and a shop.
• Items can be listed in more than one category at a time.

Disadvantages of DaWanda

• Not as well known as Etsy.
• 5% commission on sales (increasing to 10% in July 2014.)
• Limitations on how much you can change the prices of your listed items.
• Buyers have 7 days to pay for an item that they purchase.

Other online handmade marketplaces you may want to look into include: Folksy, Not on the High Street, Bonanza, Zibbet and iCraft.

Alternatively, many crafters also sell a lot of products using social media and blogging platforms like Facebook, Twitter, Pinterest, Tumbler, Blogger, and WordPress, to name a few of the most popular options. Some people have even found success in selling handmade products on Ebay.

2. Physical selling venues.

Physical selling venues, such as craft fairs, offer some great advantages over online marketplace selling. There are, of course disadvantages too. Here are some pros and cons of various physical selling venues for your handmade products.

Craft Fairs

Craft fairs are one of the most popular physical selling venues for handmade products. But are they actually profitable? Here are some advantages and disadvantages of selling at craft fairs.

What Licenses do Crafters Need to Sell at Craft Shows?

Advantages of Craft Fairs:

• Customers can see your products in person and handle them. They can try things on.
• You can hand out business cards to everyone you meet, even if they don’t buy.
• You can change your prices based on the reactions you get from people looking at your products.
• You can network with crafters, other business owners and potential customers.

Disadvantages of Craft Fairs:

• You will pay a table fee, often ranging anywhere from $20 to $200, depending on the location and venue.
• You may have competition with other tables selling similar products in close proximity.
• You have to present a friendly and professional front at all times–there’s no computer screen to hide behind.
• You have little control over how much marketing gets done for the event.

Local Craft and Gift Shops

Another great option for selling at a physical location is to get your handmade goods into local craft and gift shops. Many local shops are happy to add handmade goods to their stock if you just ask them for more information about the process.

Advantages of Local Shops

• You have the benefit of someone else doing the selling and marketing for you.
• Your goods appear for sale next to other quality products.
• You can network when you leave business cards with your products.
• You can learn more about selling and marketing from the shop owner.

Disadvantages of Local Shops

• You will pay a percentage of the sale to the shop owner– often 40 to 50% of what you charge.
• Small shops don’t always get a lot of regular footfall.
• Items can sometimes become damaged over time from too much handling by customers.
• Items may sometimes get stolen through no fault of your own. You have to trust someone else to guard your goods.

Besides local shops, you can also try marketing your goods to gift and craft shops located outside of your town, state or even the country.

Other physical selling venues you many want to consider for your crafts include: school fairs, church bazaars, bake sales, festivals and concerts, and any other event where you can rent a table or stall.

What You Need to Know to Start a Craft Business

Crafting has probably never been a more popular hobby than it is today. And running your own crafting business is often the next natural step for those who love to make things. After all, why shouldn’t you make a living doing what you love?

Almost anyone can run their own craft business. But there are some things that you should know before you start so that you can be prepared to run an organized, profitable company. I certainly wish that I had spent a bit more time planning before starting my craft business.

So, what do you need to know to start a craft business? Here are some basic things you should know before you start.

1. Doing your books and filing self employed tax returns.

One of the most important things to know about starting a craft business bookkeeping and how to file self employment tax returns. Many people find taxes overwhelming, even without the added complication of being self employed. It pays to research the process well ahead of time so that you’ll be prepared to deal with the paperwork efficiently and in a timely manner.

First, you will need to find the relevant tax documents for your area of trade. You can find this information on the IRS Web site, or the relevant tax Web site for your country if you do not live in the USA. If you can’t figure out what forms you need, or how to fill them out, you can contact the IRS, use a tax filing computer program, or hire an accountant to assist you. BasicAccountingHelp.com has free spreadsheets and resources to better understand the accounting basics.

The main thing to remember about tax returns is that you can’t avoid them. You have to do them, so you may as well learn everything you can about how to do them correctly to save you trouble later.

2. Managing your time.

When you become self employed, regardless of what kind of business you start, you will soon realize that you suddenly have less time for leisure and spending time with your family. You will have to dedicate long hours to your work, which can alienate you from your spouse, put a damper on your social life, etc.

To keep yourself from becoming a workaholic hermit, you’ll need to learn to manage your time more efficiently. Try to plan out how much time you will spend on work in a day, and set aside at least one day a week to be your day off. You won’t always be able to stick to your schedule rigorously but if you at least have a schedule, you will be less likely to waste time, freeing up a few hours for family time during the day or evening.

Talk to your family, or whoever you live with, about your schedule so that they will know when to expect you to be busy with work and when you are free to hang out with them. Open communication is the key to making sure everyone understands how your business schedule works now that you plan to work from home on a permanent basis.

3. Living on a strict budget.

While you may dream of making a lot of money from your craft business, you should be aware when starting one up that it may take years to build up your income to a comfortable level.

You will more than likely have to live on a strict budget for at least the first year. This will probably also affect everyone in your household, unless your spouse or someone else in the house earns a full time wage at the same time.

You will need to talk to those you live with about how your income will be limited for some time. They may not understand why you are choosing to work for yourself when you won’t make as much money but they still need to be informed. Hopefully, in time, they will understand and you can prove to them that your income will increase as you invest time and effort into your business.

If you need some money to get started but not sure of the options, check out this site on small business funding.

4. Handling the disapproval of others.

Speaking of people not understanding, many times small business owners find that family members and friends vocally disapprove of their self employment choice. Those who don’t understand will often make fun of what you do, say you can’t hold down another job, or even ask you why don’t get a “real job.” You will have to develop a thick skin.

Develop confidence in why you do what you do. If it will help, create a standard response you will give when people question your work choices. This way you won’t ever have to be at a loss for words and you won’t be left defenseless when others disapprove.

You should also enlist the help of those friends and family who do support you. They can say positive things to support you and your business when others are don’t seem to approve or understand what you’re doing.

5. Learn to experiment with different methods.

Many who start a new business will stick with the usual methods for everything. For instance, many people always ship orders via the USPS when they could use UPS, Hermes or another private courier.
Learning to think outside the box when it comes to your business can really help you to stand out from the crowd.
Try different ways of making products, marketing your business and selling your wares. Any time you can learn something new, you are adding another tool to your business tool box. The Businesses that are open to changing and evolving with the changing times and trends are often the ones that succeed.

These are just a few of the things you should think through as you are starting your craft business. Of course there are other things to consider too.

Do further research to find out what other craft sellers are doing. Consider taking a business class or reading some books on the topic of self employment. No harm is ever done by spending time in planning. Trust me, you’ll thank yourself later.

Starting a Craft Business: Partner Up Or Go It Alone?

There are a lot of different ways to run a craft business. Many people choose to run their business alone, as a sole trader without any employees. Other people decide to partner up with a friend or acquaintance when starting their craft business.

There are some pros and cons to either way of starting your business and you should spend a lot of time thinking before you decide what is best for you. It’s a lot easier to change your mind about how you run your business before you actually get started than after you are deep into the process.

Here are some pros and cons of partnering up for a craft business or going it alone. I hope these tips help you decide what you will work the best for you as you start your craft business.

PROS OF PARTNERING UP

1. You always have someone to work with.

One of the main benefits to partnering up with someone to start your craft business is that you will almost never have to work alone. For a lot of people, being self employed can mean a lot of long hours at home by themselves with no one to talk to. But, if you have a business partner, you’ll always have a co-worker to talk to while you work.

2. You have someone to bounce ideas off.

Another great pro of partnering up with someone is that you have someone to bounce ideas off. When you work with someone else you can often come up with new ideas that you might not have thought of when working alone. And brainstorming is a lot more fun when you have someone to do it with!

3. You can share and receive criticism.

When you have a business partner, you can enjoy the benefit of sharing and receiving criticism. Constructive criticism can help both of you improve your products and work procedures. In this way, having a work partnership gives you a lot more opportunity to grow and learn than working by yourself.

CONS OF PARTNERING UP

1. Disagreements are inevitable.

Of course disagreements are inevitable if you do choose a partnership for your craft business. It’s simply human nature that two people will not always agree on everything. And when you don’t have a supervisor in charge of you and your business partner, it can be a lot harder to resolve issues between the two of you. Disagreements between business partners can easily halt the progress of your work and the growth of your business.

2. Sometimes it’s hard to trust.

The person you choose to partner up with will be someone that you initially trust. But even if you have never doubted this person before in your life, once you start mixing friendship with business, at some point or another, doubts will creep in. Can you trust them with the finances? How do you know they have your best interests at heart? You can always add a second person to your business if you start alone but it’s a lot harder to switch to trading alone once you have established a partnership.

3. What happens if one of you quits?

Another con to partnering up in the craft business is that it can get really messy if one of you decides to quit suddenly. Maybe your friend suddenly gets a full time job doing something they love and they decide that crafting is no longer a priority, leaving you in the lurch.

Taking care of all aspects of the business on your own after being used to doing it with a partner can be overwhelming at the least. It may even mean the end of your business if you aren’t able to handle everything yourself.

PROS OF GOING IT ALONE

1. You are your own boss, period.

One of the best pros about going it alone with your craft business is that you are always going to be the boss. There is never anyone else there telling you what to do or how to do it. You get to make all of the executive decisions about product lines, suppliers, where to sell, prices and more. It can be very freeing to have everything under your own control.

2. You have complete control of the finances.

Another pro of going it alone is that you have complete control of the finances. You will never have to worry about how the money is being spent, or whether or not you can trust your partner, because you are the one holding the purse strings at all times.

3. You can make any changes you want.

Without having someone else to worry about, you can make any changes you want to your business. You change your schedule at the last minute to accommodate family time or even take two weeks off without having to ask permission. The beauty of going it alone is that you can make any changes you want, whenever you want, without having to ask for permission or approval.

CONS OF GOING IT ALONE

1. You can’t always take time off.

While going it alone does mean you can work your own hours, sometimes it also means you can’t always take time off when you want to. You are your own boss, and have control of the schedule, but if fourteen rush orders come in on the weekend and you’re the only one to fill them, you probably can’t take the weekend off.

2. You have to do everything yourself.

There’s no room for sharing and trading off tasks when you go it alone because, quite frankly, you have to do everything yourself. With all of the record keeping, product making, selling and mailing orders, you can become very stressed and bogged down when you have no one there to help you.

These are just a few of the pros and cons of partnering up or going it alone. I hope this helps you to decide what will work best for you as you start your craft business.

How To Make Craft Products That Stand Out From The Crowd

The craft marketplace is saturated with handmade items from all different kinds of artists and designers. Many people are making the same types of products and even using the same patterns and materials, making it very difficult for small craft businesses to succeed at standing out.

I’ve been running my own craft business for about four years now and I can tell you firsthand how frustrating it is trying to keep your products unique and up-to-date. The temptation to copy other people’s successful ideas is also high. But I’ve learned through a lot of trial and error that the very best way to stand out is to use your own imagination to come up with the best, creative ideas.

If you want to succeed at making a living by selling crafts, you will need to produce products that are unique and desirable enough to rise above the competition. Here are some tips on how I ensure that I make craft products that stand out from the crowd.

1. Start with something that inspires you.

When you’re trying to come up with a new product line or design, start your brainstorming session by thinking of things that inspire you. I’ve found that my very best products have started with a thought about something that I love or admire greatly.

Incorporate your senses. What is beautiful to you? What do you love the sound, smell or taste of? Ask yourself other questions too. What makes you laugh or smile? What makes you want to be a better person? The answers to these kinds of questions will be your inspiration.

A lot of my best selling products are animal related. I absolutely adore foxes and hedgehogs and I was an owl fanatic well before they became fashionable. I incorporate my love for these creatures into a lot of my jewelry and collectibles and it’s obvious to both me and my customers that my love of wildlife shines through in what I make.

Maybe you’re passionate about sustainable living, you enjoy volunteering at a children’s hospital or you love collecting old books. Whatever inspires you, use this to feed your creativity.

2. Come up with workable product concepts.

Now that you’ve spent some time dwelling on inspiration, you can begin forming some workable product concepts. Brainstorm about the different types of things you’d like to make and form a list of possibilities.

For instance, you may have an interest in making earrings, but find the thought of creating plush toys equally appealing. Don’t be afraid of having too many ideas. Write down everything you think of, because even if you don’t use all of your ideas immediately, you can always come back to old ideas at another time.

After you have a list of ideas, choose a couple that especially stand out to you. Now you can begin to design your actual products.

3. Sketch your own designs and patterns.

Once you have an idea of what you want to make, you can do some rough sketches. Sketching your ideas will help you to visualize your finished products and figure out how to actually begin constructing them.

Even if you aren’t very good at drawing, making sketches of your ideas can still be a great help as you begin the design process.

If you’re going to be working with fabric, paper or even wood, you can make patterns and templates with your sketches that you can use to actually cut out the material that you will be using. If you’re crocheting or knitting, you can use your drawings as a rough guide to help you construct your written pattern.

4. Create a prototype of your new product.

Once you’ve designed your product or made a pattern for it, you can create your first prototype. A prototype is like an experimental first product. It gives you the chance to make a finished physical item that’s not necessarily ready to sell, but that gives you an idea of how well your idea will work.

As you make your prototype, don’t be afraid to tweak it while you go. You can make changes either by changing your sketches or by changing the physical item you are actually working on. Don’t be afraid to get messy. Cut, tear and make marks where necessary. You aren’t making something to show off yet, so don’t worry about mistakes.

Once you’ve played around with your design, you should be able to make a finished item that you’re happy with. Spend as much time as you need to get it right. As the old adage says, you can’t rush art.

5. Get feedback and make any final changes.

Once you have a prototype you can get some feedback. You don’t need to show potential customers. You aren’t ready for that yet. Show some friends or fellow crafters who can help you by giving honest, helpful criticism.

Take some notes as you get feedback so that you can incorporate any final changes that you think will make your finished products better. Obviously, you don’t need to use all of the suggestions you get but it’s good to take note anyway for future reference. It’s good market research.

6. Create a batch of salable products.

Now that you have a prototype finished, you’re ready to make a batch of salable products.
Using your prototype as a guide, make five or ten more of the same item.

It’s good to make multiples before you begin selling so that you will have a variety of colors or styles available. It will also give you a chance to change any last minute, niggling issues that you may notice in your finished items.

This process for creating unique products has always worked well for me. I hope that my design tips help you to create wonderful handmade items that stand out from the crowd. Your craft business will naturally attract sales because of your one-of-a-kind creations.

How to Take High Quality Photos That Will Sell Your Crafts

One of the most important things I have learned about selling crafts online is that the quality of your photos makes a huge difference. Many new craft business owners make the mistake of using lower quality photos because they are in a hurry, don’t own a good camera, or simply are not aware of how much of an influence the photo has on how many things you sell and what prices you can charge.

The quality of your photos absolutely affects the success of your online craft business. You need to be taking good, clean and attractive photos in order to succeed at selling handmade products online. It simply won’t happen unless you do.

Here are some tips for taking high quality photos that will sell your crafts.

1. Use a decent camera.

You don’t have to have an expensive camera, or be an expert photographer, to take good photos of your craft products. Basically, you need a camera that will take sharp photos that show off the detail of your work. A smart phone with a good, 8 megapixel camera will do.

When you use an inferior camera, you run the risk of not being able to get clear, focused photos. Photos with lots of shadows, grainy backgrounds or that are out-of-focus will detract from your work. You might as well list the item for sale without a photo rather than list it with a poor photo, because a poor photo will absolutely discourage a customer from buying.

2. Shoot your photos in good light.

The best way to ensure that you get really good photos of your crafts is to shoot them in good, direct light. There are a number of ways that you can accomplish this and you won’t need any fancy or expensive equipment.

The easiest way to get good lighting for your photos is to take your camera outside on an overcast day. A slightly cloudy or gray day will give you direct light that’s not too bright or glaring, which usually results in stunning photos.

If it’s raining, or you don’t have a good place to take pictures outside, you can get a similar effect by shooting in a windowsill. A white windowsill with no curtains or blind makes an ideal place for taking pictures of your crafts.

Further, if you want to ensure good lighting but the weather isn’t cooperating, or you need to take photos at night, you can build a light box very inexpensively. You can find lots of tutorials for building them around the Internet.

3. Use simple backgrounds.

When photographing your craft products, you want your creative work to be the star of the photos. Shooting photos with a very simple background will ensure that the focus is on your handmade products and not on whatever’s behind or underneath them.

Plain white walls and hard surfaces make wonderful backgrounds for photos of your crafts. You can also use simple backdrops like flat stones, brick walls and grassy fields. But avoid busy and complicated backgrounds like colorful flower gardens or patterned fabric that might distract customers from the real purpose of the photo.

4. Use a limited number of props.

The concept of using a limited number of props in your craft photos goes hand in hand with the simple backgrounds. Sometimes a prop or two will help enhance a photo and show off an item but other times props just get in the way and distract.

For instance, a good prop to use when photographing a handmade ring is a metal ring sizer or a mannequin hand. Bad props, which might distract the customer from the main attraction, might be other rings that are not for sale in that listing, piles of other jewelry or a full mannequin figure.

A good rule of thumb to remember is: keep it simple. This way you can ensure that potential buyers will be focussed solely on the item for sale and not on the props.

5. Wearable products should be modeled.

When you’re selling wearable handmade products, such as scarves and hats, jewelry, or sweaters, you should have these items modeled in your photographs. Being able to see what an item will look like on someone really helps to sell the garment or piece. Think about all the clothing catalogs and Web sites you have used in the past to purchase items. All of the items are modeled, aren’t they?

You don’t have to hire a professional model to get good photos of your wearable items. Anyone can model and do a great job, they just need to look clean, presentable and happy. You can ask friends or family members of all ages to model for you.

Models wearing simple clothes , neutral colors and minimal makeup and jewelry will help to keep the focus on the items you are trying to sell.

6. Edit your photos.

Once you have taken a good selection of photos, upload them to your computer and use an editing program of your choice to make them even better. A few simple changes can make a big difference in the quality of your photos.

Cropping the photos can help to really focus the photo on the craft product. Cut out any extraneous background or anything that shouldn’t be, or doesn’t need to be, in the photo.

Adjusting the lighting of the photos can help too. Brighten photos a little to enhance the colors, especially if they appear different in the photo to how they appear in real life. You want your photos to offer the most true-to-life presentation of the product as possible.

With these simple tips, you can easily learn to take great, high quality photos of your craft products. Remember to take your photos as seriously, or even more seriously, as you do your descriptions, pricing and everything else involved in selling online.

The photo is probably the first thing a customer will see. Make it a photo that they won’t easily forget so they’ll want to see more.

Costs to Start a Craft Business

When preparing to start a new craft business, there are many important things to keep in mind. But one thing that you will want to consider fairly early in the process is the cost of starting the business. How much of a budget will you have to work with and what do you actually need to buy?

As I was getting ready to start my craft business about five years ago, I didn’t consider many of the start-up costs and, as such, kind of had to make it up as I went along. But I’ve learned a lot since then and my business has grown and thrived in spite of having to learn on my feet.

Here are some things I wished I’d known years ago about the costs to start a craft business.

1. I wish I hadn’t bought so many supplies and materials at the beginning.

As a new business owner, it’s easy to think you’re going to need a lot of everything right away. And it’s sometimes tempting to get caught up in the purchasing process imply because you enjoy crafting as a hobby anyway.

For instance, if you crochet like I do, you’re probably already familiar with that overwhelming desire to buy every different kind of yarn you see in the craft store. But imagine how that desire can be justified in your mind when you start telling yourself, “It’s okay, it’s for the business.”

Personally, I would advise starting off with only the basic supplies you need to get started. You can always stock up again when you’ve got some cash flow, plus this way you will have more money to invest in other things that your business will need to get off the ground.

2. I wish that I had ordered business cards on day one.

As soon as I started telling people that I made and sold crafts for work, immediately people wanted to see photos. I found myself jotting down my Facebook URL or my E-mail address on scraps of paper for people when it would have been so much easier, not to mention more professional, to have had business cards printed in advance.

Business cards are an investment. You may think you won’t use them that often but, trust me, you should be giving a card to every single person you meet. You should be enclosing one with every order. You should have them ready to give people at fairs. Before you ever open up shop, I highly recommend that you make an order of at least 500 business cards.

3. I wish I’d invested in a good camera.

If you are planning to sell your crafts online, you’ll definitely want a good camera that can take high quality photos. When I first started selling on Etsy, I only had a very old, refurbished camera that really wasn’t up to the job. I probably used that and a cheap cell phone camera for about a year before I upgraded my phone to one with a much better camera.

The quality of your photos will absolutely influence how much you sell online. Think about some of the last purchases you made on the Internet. Would you have still bought the items if the photos were dark or unfocused? Probably not. Consumers like to see exactly what they are buying, which means if you’re going to sell online, you need to offer the next best thing with extremely good photos.

Along with the things I wish I’d known, there are some things I did know that might be of help to others who are starting a new business.
Sometimes new business owners think they need to make certain purchases or hire help because they have heard of others doing so. But there’s really a lot you can do with what you already have. Why spend unnecessary money?
Here are some things I’m glad I didn’t spend money on when I was first getting started.

1. A Web site.

Paying for Web hosting and design when you are a fledgling business can be an investment that does more harm than good. While it’s wonderful to have a Web site for selling your crafts, it’s not entirely necessary since you can sell for free on social media networks and you can sell very inexpensively on craft marketplaces like Etsy.

Additionally, when you’re first starting out, you’re more likely to get more traffic to your shop if you choose to sell on an established site known for handmade products. Save the cost of a personal Web site for the future when you are more established.

2. A new computer.

While buying a new computer might be really tempting, especially since you can count it as a business expense when filing your taxes, you probably really don’t need one. If you already own a desktop or laptop, even if it’s not high-end, you can get most things done with what you already have.

If you don’t own a computer, consider borrowing a friend’s, or using a laptop at a library for the first few months so that you can focus your investments in other areas and build up your cash flow. If you really want a new computer, at least try to wait until you have saved up the money.

3. An accountant.

Many new business owners are afraid of doing their won taxes, so they hire an accountant. However, what you may not realize is that doing your taxes is not as hard as it might seem. The instructions are all there for you and anyone can learn to do it.

While having an accountant to do my taxes for me would have been nice, I’m glad that I didn’t invest in one at the star of my business. Now it’s something I can look forward to in the future when my business has grown bigger and I don’t want to invest that much time doing paperwork.

I hope that my experiences with start-up business costs can be a help to you as you get your craft business up and running.