Are you gifted in the most creative of the ways? Do you wish to showcase your work and earn profit from it? Is having a craft business something that you have had in mind for a while? Don’t know where to begin? Don’t worry we have just the checklist for you.
Read on.
Table of Contents
Checklist for Starting a Craft Business
So for any business, you need a blueprint, a plan on which your business will be built, lucky for you we have just the list for you to have a craft business, you just need to follow these simple seven steps. Strap on.
Step 1: Make Craft Business Plan
Before you are ready to start you will have to consider a few things, it will begin with having a plan. This business plan works like any other business, it has the important dos and don’ts for you to consider. It has all the basic questions for the framework of your business that you must know the answers to. Let’s begin.
How much does it cost to start a craft business?
The general idea could be gathered through this table-
| General Cost | Minimum Startup Costs | Maximum Startup Costs |
| Small Business Insurance | $500 | $2,000 |
| Lawyer Fees | $0 | $1,500 |
| Permit and License Fees | $50 | $700 |
| Set up business: LLC & Corporations | $50 | $500 |
This should give you a basic idea of what the initial setup cost would look like, it could be more or less too depending on how you are willing to go about it.
Decide your Niche
The possibilities of what you can and can’t do are endless, depending on what you know best you can decide what will be the niche of your craft business. You can pick from the wide range of choices in the field of crafts. It could be holiday-specific or an all-year thing. The important thing is that no matter what you choose it has to be something that you should stick to. It can be a singular product or it could be a couple of them, whatever you know you can easily succeed in, you should go for that. The identity of your band depends on your skills entirely. After you have picked what your niche will be you will have to know a thing or two about the market. See what your town doesn’t have and capitalise on that, you can’t put five craft businesses in one area and expect them to all workout. You will need to know who your competitors are. More on that ahead.
Know your Target Audience
You have to know who your target audience is, who it is that you are catering to is the most important question that shouldn’t go unanswered. See the trends and population, see what the folks in your area like to invest in terms of craft. See how you can reach them in the most efficient way. There are a lot of ways in which one can understand the market knowing who buys what and why is one of the most effective ways to understand it. Your understanding of a target audience will reflect in your work as well.
Crafting Equipment and Material
Once you have answered these questions in detail you can get into the logistics of it and focus on occurring crafting equipment and material.
Know what crafts make the most money?
Holiday-themed craft does very well, anniversary-birthday crafts and accessories also are all time hot, one can argue that it is seasonal but it’s simply not true every season is filled with something or the other to celebrate. Rest depends on you and your marketing.
How much should you charge per day for crafts?
You should start by doing some unpaid work for your family and friends, through that their friends and family will see how skilled you are and then you can decide the rates depending on how much equipment you are using plus some profits for your skill and labor. You can start easy and slow in the beginning unless you are doing a big project.
How much profit can you make with the Craft business?
Just as much as you can with any other business, depends on your marketing as well as your talent.
How can you grow your business and make it profitable?
You can start with establishing your business and then marketing it well enough for others to hire you for your talent and skill. Once you have acquired an honest customer base then you can start slowly taking orders from different areas through the help of social media.
Decide Your Business Name
It is important to pick a name that is catchy and is easy to remember. It should also be something that defines the soul of your business the best.
Once you decide on a name make sure you check that it is not previously used, a simple internet search would help you do that.
After which you can register the name and work on the mood board for your business card.
Step 2: Form a legal entity & Taxes Registration
This is a crucial step even though it is the most boring one. All you have to do is know what paperwork is required for setting up your business. You will need to know what are the licenses, permits, and insurances you need for your business for it to fit the legal requirements.
The legal papers depend on your location, business structure and that would mean that the licenses would be different for each. You might also need multiple licenses ranging from state, federal, and local levels. The SBA is a very resourceful website for the same. You will also have to check your local chamber of commerce. If you are going to work from home then you will need a home business license, you will have to be aware of restrictions as well. If you are sure of taking your business online then you will need online seller licensing.
If you will be hiring employees you will need to get an employer identification number (EIN). An EIN is important because of tax purposes and it’s quite mandatory if you’re willing to hire employees.
Next up you will need business insurance, this is important with or without employees. Mostly it helps you cover worker’s compensation, unemployment, and potential disability insurance. You will also need general and commercial property insurance. You will have to check what permits you need and for this, you will need to consult a business lawyer. A professional would help you through the complications with the law and they would guarantee that the basic legal requirements to establish a craft business are met.
These are some of the basic legal requirements you should keep in mind.
Step 3: Registration for Business Bank Account
Once you have decided what kind of business entity you will be, you can decide what kind of credit you will take. The business lines of credit have a lot more flexibility than a standard business loan so that’s something you should consider. You can also apply for a business credit card since it gives you the benefit of a 0% intro APR credit card. It is almost as if you have an interest-free loan as long as you pay off the balance before the introductory offer. The other option is taking separate financing for your craft equipment. In this, a lender will loan you money only to fund equipment financing. The equipment will work as collateral for the loan and it’s much easier to qualify for this kind of funding. Finally, you will need to know if you will have a business saving account to a business checking account. New businesses generally go for business checking accounts and if a business is more established with more cash influx go for a business savings account so that they can earn interest on their balance.
Step 4: necessary licenses and permits
- As discussed earlier legal papers depend on your location, business structure and that would mean that the licenses would be different for each. You might also need multiple licenses ranging from state, federal, and local levels.
- If you are sure of taking your business online then you will need online seller licensing.
- If you will be hiring employees you will need to get an employer identification number (EIN). An EIN is important because of tax purposes and it’s quite mandatory if you’re willing to hire employees.
Get a professional business lawyer to help you seek this out.
Step 5: Business Insurance
As discussed earlier you will need business insurance, Mostly to help you cover worker’s compensation, unemployment, and potential disability insurance. You will also need general and commercial property insurance.
Step 6: Spread Your Brand
Crafting is no longer a hobby for you, go for a wholesale supplier and order in bulk since you will have the chance to do big projects. You can also check online for better deals, before you are putting things in your cart you must calculate how much inventory you will need to carry. You must know the kind of supplies you are looking for and what is their quantity that will make the search for a supplier easier. It is also a helpful way to estimate the cost of your supplies. Research how your favorite craters have done it. Once your inventory system is figured out you can download an inventory management app that will help you keep track of the coming and going of your supplies.
Once you have the inventory out of the way you can start working on spreading your brand, do that by going to the local schools and stores. Offer your craft service for free for a while waiting for word of mouth to serve you and then go ahead with taking up craft projects that are niche-based.
Try to take up holiday-based projects, those will guarantee an honest customer base.
Step 7: Create your business website
You can do that at the beginning of your business or you can wait to be a little more established and then take this call. You will need to do this professionally since the website would work as the face of your business. Investing in a website at the outset is usually a wise call. You can do that easily by checking the available domain names and buying the suitable domain yearly. Remember to buy the business website since it will give you payment options that will make it easier for you and your business to thrive.
How to promote your Craft business?
Social media marketing happens to be a godsend. There are various ways to do this. You can use platforms like Google ads, Instagram, Facebook, and Twitter to market your business.
Google ads- These can be bought and come in handy especially if you are targeting a specific geographic area.
Instagram – Instagram has become one of the most used social media apps, most businesses exclusively use this app since its aesthetic is ideal for art, craft, and fashion-based business. Use reels to make small trailers of what your craft skills can do and then see the magic.
Facebook- This platform has groups you can target and post your work there can help you acquire more audience.
Twitter- Not the most ideal platform for a craft business but still necessary to be active there, you can use it as a customer service tool since it’s easier for people to reach you there and talk about their grievances.
Where you can sell your crafts online
After your website is up and running you can sell there or you can sell them through Amazon. You can also use Facebook or Instagram to sell your products.
Conclusion
There are many ways to sell your craft but the most important thing to do is to know what’s more important to you in this business, set your goal, and then follow them without flinching. People may tell you craft business is just another hobby but if you have a business plan then you could do wonders with it. Remember the 7 steps and you are good to go, all the best.
About Carson Derrow
