The fantasy of turning your hobby into a billion-dollar business bug has bitten us all, at one time or another. Yet, 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.
The fantasy of turning your hobby into a billion-dollar business bug has bitten us all, at one time or another. Yet, the biggest misconception about starting a craft business is that you have to start wit
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 will need an idea or craft. Common craft businesses include gift baskets, personalized merchandise, figurines, knitted items, wood working items, or models. Though this is not an all, inclusive list, it's a good starting point if you do not have a hobby. You should also brainstorm the things you enjoy doing or have an interest in learning to gain additional craft business ideas.
Next, you will need to know how much it costs to create one of your crafts. This is important because knowing the cost will help you set the price. And, should prevent you from selling your craft for less than it costs to make.
Start Up Costs
The start up costs for a craft business will depend on the type of crafts that you are creating and the cost of the materials needed. Since this can only be on an individual basis, we will focus on other costs to consider. Such as website hosting and design, since a craft business should have a website to showcase the products. You may even consider starting an eBay craft business and operating through their site. A good booking program, such as Quicken, is also good to invest in for long-term growth and survival. This will facilitate good recording keeping for tax purposes and the ability to track costs and profits over time. Be sure that you include the costs associated with any permits or licenses needed.
Things to Consider
An important aspect of starting a craft business is finding your niche. It is easy to try to create a variety of crafts, but it is more feasible to start with a small product line and increase over time. You should also think of ways to maintain that personal touch, be it with your packaging choice, a small note with your craft, or follow up. These personal touches will help differentiate you in a sea of other craft businesses.
If you are considering a full time craft business, remember that the craft business can be seasonal or trendy. So, you will need a plan to stay a float during lean times. Also consider joining forums, groups , and associations that target your craft to stay on top of new trends and opportunities.
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