Starting a Craft Business 

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Guide author

Guide to Starting a Craft Business

Make starting a craft business a successful endeavor by following the right steps

By Tai G., Writer

Starting a craft business can be a very exciting endeavor, but one that will require careful budgeting and attention to the tastes and needs of your customers. Many people consider the entrepreneurial route, but it is a risky road to take, especially if you don't set yourself up for success. You don't have to sell a unique product, but you should offer a one-of-a-kind service.

Anyone can open an arts and crafts corporation with the right attitude and financial backing. Competition will be fierce. You can't expect to put your feet up because it's your own business. On the contrary, you should expect to work very hard in the beginning. Before quitting your full time job in the hopes that you become your own boss and open arts and crafts store service, ask yourself the following:

1. Are you committed? It takes more than just a good idea to open your own crafts company. It takes time, money and hard work.

2. If applicable, do you have the right partners? Friends are not always good business partners. Vet potential partners as objectively as possible.

3. Have you done your research to make sure there's demand for your product or service? You may have a great idea, but how many others have the same idea?


Action Steps
The best contacts and resources to help you get it done


Start your own crafts shop with credibility and get licensed

All businesses are legally required to obtain some type of government license. Other official documents include seller's permits, federal and state employer tax ID numbers and trade name certificates. There are many online resources and state departments that can help you file these documents.

I recommend: FindLaw offers an online checklist for you to confirm that you have not missed any necessary filings. The Internal Revenue Service can help you obtain a federal tax ID number.

Join an association and build industry credibility when you launch an arts and crafts company

When you open crafts store services, you don't have to go it completely alone. Consider joining an industry association for support. Organizations bring together professionals with the same goals and challenges. As a member you have access to certification and educational opportunities. You'll also attend networking events, so you can meet industry peers, vendors and suppliers.

I recommend: The Craft & Hobby Association and CRAFT, the Craft Retailers Association For Tomorrow, both organize events for educational and networking opportunities. They also offer access to publications and other tools to help you get started.

Partner with reliable vendors when you launch an arts and crafts store

As a business owner, it's imperative that you partner with vendors who can help you build your business. Your vendors must be dependable, accommodating and reasonably priced. You want to build a long-term relationship with your suppliers, and they must also share your interest in pleasing your clients. Additionally, they should offer a wide variety of products.

I recommend: CWI Gifts and Crafts requires you to have a tax ID number or vendor's license to purchase wholesale. J & R Industries also offers an online catalog that businesses can access through a personal account.

Tips & Tactics

Helpful advice for making the most of this Guide

  • •  Marketing is a very significant step when you launch an arts and crafts small business. Consider advertising in trade magazines and newspapers to begin with, and think about publishing a website.
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Guide author

Guide to Starting a Craft Business

Take your creative passion to the next level

By Judy Artunian, Freelance Writer

You love to make handcrafted ceramic bowls. Your friends rave about them. A local shop has offered to sell them. Is it time to turn your hobby into a business? The answer could be yes, but only if you’re ready to pay as much attention to the nitty-gritty details of running a business as you are to the art of creating your product.

Before you start a craft business, you should be able to answer “yes” to these questions:
1. Have you determined what it would cost per unit to mass produce your product, and whether you can price it high enough to make a profit?
2. If you got a large order from a wholesaler, could you fulfill it? If not, could you call on other skilled crafters to help you out?
3. Do you have the time and desire to keep tabs on the trends in your market, and the wherewithal to quickly revamp your product line to keep up with those trends?

Action Steps
The best contacts and resources to help you get it done


Gather your raw materials

One of the most challenging aspects of starting a craft business is unearthing sources for affordable, high-quality supplies and equipment.

I recommend: The National Craft Association sells wholesale source directories for 12 craft categories. At Create for Less you can buy supplies in bulk and at wholesale prices. Wholesale distributor J&R Industries specializes in art and craft supplies for businesses. And don’t forget two sources that are right under your nose: By searching for “craft supplies” on eBay, you can find bargains on materials that are sold in lots. Also, look for suppliers in your local business community by consulting the online phone book, Superpages.com.

Set your prices

Calculate your costs and research what the market will bear for your products. What else do you need to consider before you put a price tag on your merchandise?

I recommend: See how William Lasley, a veteran craft manufacturer, breaks down the pricing process. Find tips on pricing and other aspects of running a craft business in The National Craft Association’s Business Builder Kits.

Meet your market

Attend national craft shows, wholesale gift shows and similar events to meet the industry’s movers and shakers, and to stay on top of who’s selling what.

I recommend: Start planning your sales and marketing tour by checking The National Craft Association's event calendar. If you want to sell direct to consumers, Craftmaster News lists consumer craft shows by state. Once you have a track record, consider expanding your market by hiring a sales rep who will sell your products at wholesale. Find a rep by consulting the Nationwide Directory of Wholesale Reps.

Stay on their radar

You don’t have to spend a fortune to create memorable marketing materials to distribute to business contacts as well as family members and friends.

I recommend: Send postcard mailers that feature photos of your products, to. The United States Postal Service’s low-cost NetPost Premium Postcard Service makes it easy to design your own postcards. Download HP.com's how-to guide for creating a marketing brochure. Entice people to make return visits to your Web site by adding fresh content on a regular basis. That could be in the form of a weekly contest for free merchandise (a good way to introduce new customers to your products). Or start a blog, which you can establish through a service such as Typepad.

Discover your inner accountant

Running a business means recording, juggling and analyzing numbers. Fortunately, there is software for nearly every kind of recordkeeping and number-crunching you might need.

I recommend: Invest in a bookkeeping program such as Quicken Home & Business so that you can quickly record your income and expenses. You can’t accurately price your products if don’t know how long they take to produce. Use time sheet software such as Timesheets Lite. One of this program’s helpful features is its ability to create activity charts that show you how much time was spent on each project.

Tips & Tactics

Helpful advice for making the most of this Guide

  • •  Before you take on a national marketing campaign, sell your products at local arts and crafts shows. Consider hosting a show at your own home. By starting out on a smaller scale, you can hone your sales techniques and gain insight into your customers’ tastes and buying habits.
  • •  Don’t be too emotionally attached to your craft. Be ready for harsh comments from professional buyers and others in the business. Don’t take it personally. They know what sells and their advice could save your business.
  • •  When looking for outlets that might want to sell your product, go beyond the obvious. Check out Web sites that might relate in any way to your product. Investigate catalogues. Take a second look at retail stores (including chains) that you’ve dismissed as inappropriate. You might be surprised by what they carry.
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Guide author

Starting a Craft Business

Make starting a craft business a successful endeavor by following the right steps.
Starting a craft business can be a very exciting endeavor, but one that will require careful budgeting and attention to the tastes and needs of your customers. Many people consider the entrepreneurial route, but it is a risky road to take, especially if you don't set yourself up for success. You don't have to sell a unique product, but you should offer a one-of-a-kind service.Anyone can open an arts and crafts corporation ... Read more