How to Start a Handmade Craft Business
During the COVID-19 lockdown, a number of people established their own businesses, with a lot of them being craft-related. The lockdown is now well and truly behind us, causing many of these lockdown businesses to expand. From sourcing quality equipment, such as multitool blades, to finding the right selling platform for your niche, there are a number of aspects to consider.
Detailed below are just some of the steps involved in establishing a handmade craft business; the entire process is obviously a lot more detailed – the below just provides you with a snapshot of what’s required.
Establish Your Niche
First things first, starting a successful handmade craft business means establishing your niche. The whole point of handmade crafts is that every piece is unique; even if two pieces have the same design, their appearance will never be identical. As a result, your niche is your superpower. A buyer wouldn’t be shopping with you if they didn’t want something different, so this needs to be a huge part of your marketing or selling strategy. Whether you specialize in soap making or upcycling, you need something that sets you apart from your competition.
Create a Business Plan
It goes without saying that a business plan is incredibly important for the planning of a business. This will essentially be your guide for the early stages, and you should constantly be returning to it to ensure goals are being met. Don’t forget the notion of the niche when it comes to creating your business plan; this needs to be at the forefront. This niche will help you determine how you’re going to sell your products and identify your audience. If you’re stuck on how to go about building a business plan, there are numerous templates online to make your life a little easier.
Decide on a Legal Structure
Unfortunately, establishing a business isn’t about making goods and simply selling them. Instead, there are a lot of legalities involved. Whether you opt for a sole proprietorship or limited company, you need to register your business in some way. Before you decide on your legal structure, you might consider talking with an accountant. They will be able to point you in the right direction when it comes to making this decision. It’s extremely important to get this right, as this will determine how you pay your taxes. Obviously, when establishing a business, paying tax is non-negotiable.
Source the Supplies
Naturally, you won’t be able to establish a homemade craft business without the right supplies. Therefore, it’s important to have a good supplier on standby. Not only can top-quality materials help maximize your profit by making your products attractive, but getting your supplies for the right price can make a world of difference.
Unfortunately, the beginning of your business will see you needing your suppliers more than they need you. Therefore, you won’t likely be able to negotiate prices with them in the early stages. As your business grows and your relationship develops, though, you’ll be able to barter with them a bit more.
Find a Selling Platform
Last but certainly not least, you need to find the right selling platform for your business. The most popular option is to sell online, and there are a number of ways this can be achieved (e.g., your own eCommerce site, Etsy, eBay, Depop, Vinted, social media, etc.) Other selling platforms include independent retailers or even your very own craft stall. The most effective platform will depend on your company’s unique requirements, and you don’t have to be limited to just one. Just learn what works for you.