The fantasy of turning your hobby into a billion dollar business bug has bitten us all, at one time or another. However, the biggest misconception about starting a craft business is that you have to start with a personal hobby. Although, this is how many craft businesses get started, it is by no means a prerequisite for success.
Before you start
First things first, you need an idea or a craft. Typical craft businesses include gift baskets, personalized merchandise, sculptures, knitted items, woodcraft items, or models. While this isn’t an all-inclusive list, it’s a great starting point if you don’t have a hobby. You should also brainstorm things you like or are interested in for additional home craft business ideas.
Next, you need to know how much it costs to make one of your crafts. This is important because knowing your costs will help you set your price. And, it should prevent you from selling your craft for less than it costs to make it.
The start-up costs for a crafting business depend on the type of craft you are making and the cost of the materials required. As this can only be done individually, we will focus on other costs to consider. Like web hosting and design, because a handicraft business must have a website to showcase its products. You could even consider starting an eBay craft business and operating through their site. A good ordering program, like Quicken, is also great to invest in for long-term growth and survival. This will facilitate good record keeping for tax purposes and the ability to track costs and profits over time. Make sure you enter the costs associated with the required permits or licenses.
Matters to Consider
An important aspect of starting a craft business is finding your niche. It is easy to try to make a variety of crafts, but it is more likely to start with a small product line and increase over time. You should also think about ways to maintain that personal touch, be it with your choice of packaging, small notes with your craft, or follow-up. This personal touch will help set you apart in another sea of craft businesses.
If you are considering a full-time craft business, keep in mind that the craft business can be seasonal or trendy. So you need a plan to stay afloat during times of famine. Also consider joining forums, groups and associations that target your expertise to stay up to date with new trends and opportunities.