Business Idea

Start A Craft Business

About

Starting a craft business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell craft , or selling craft online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a craft business ➜

Key stats

market size
$718B
starting costs
$31.6K
gross margin
50%
avg product price
$10
time to build
9 months
work from home?
Yes

About

Starting a craft business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell craft , or selling craft online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a craft business ➜

Key stats

market size
$718B
starting costs
$31.6K
gross margin
50%

 

avg product price
$10
time to build
9 months
work from home?
Yes

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $750 $7,000
Employee & Freelancer Expenses $151 $352
Equipment & Supply Expenses $566 $5,700
Website Costs $303 $7,215
Business Formation Fees $600 $4,700
Retail Business Expenses $1,250 $11,650
Inventory Expenses $350 $14,750
Software Expenses $150 $2,470
Advertising & Marketing Costs $75 $4,786
Other Expenses $0 $300
Total Startup Costs $4,195 $58,923

Successful Businesses

Business URL Rank
With Love From T To You etsy.com/shop/withlovefromttoyou #74
Craft craft.co #7,267
Craftsy craftsy.com #33,799
Craftybase craftybase.com #133,602
Creativebug creativebug.com #178,074
GLC Craft Mall glccraftmall.com #184,289
CraftBot craftbot.com #243,167
Herrschners, Inc. herrschners.com #259,792
Craft Outlet craftoutlet.com #285,468
Wholesale Printing & Custom Online Print Services : Navitor navitor.com #287,089
Craft Industry Alliance craftindustryalliance.org #329,268

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Ability to start your business from home It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!
Rewarding work Starting a craft business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
Scalable With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.
Meaningful business connections You never know who you will meet as a craft business. This could be the start of an incredible business opportunity!
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Time commitment With starting a craft business, all responsibilities and decisions are in your hands. Although this is not necessarily a negative thing, work life can take over at times. This can place a strain on friends and family and add to the pressure of launching a new business.
Difficult to build trust with your customer With starting a craft business, there can be minimal face-to-face interaction, which means it can be a lot more difficult to establish trust with your customers. You'll need to go the extra mile with your customer to grab their attention and business.
Impatient customers You may offer an engaging user experience for your customer, but customers expect a lot and may be impatient if they aren't pleased with your product or service.
Learning Curve When you start your own business, you no longer have upper management to provide you with a playbook for your roles and responsibilities. You should know the ins and outs of every aspect of your business, as every decision will come down to you.
Equipment Breakdowns Over the years, your equipment can get damaged, break down, and may need repairs which can be expensive. It's important you prepare for these expenses and try to avoid damages/wear & tear as much as possible.

Marketing Ideas

  • 1

    Affiliate Program

    Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.

    Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.

    The affiliate typically gets a unique link where clicks and conversions can be tracked.

  • 2

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

  • 3

    Social Media Advertising

    Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

    According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.

    Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.