Business Idea

Start A Handmade Goods Business

About

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

If you're interested in how to sell handmade goods, or selling handmade goods 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 handmade goods business ➜

Key stats

market size
$664B
revenue (monthly)
$59.7K
starting costs
$42.5K
gross margin
50%
avg product price
$30
time to build
6 months
growth
Word of mouth
business model
E-Commerce
time investment
Side project
work from home?
Yes

About

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

If you're interested in how to sell handmade goods, or selling handmade goods 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 handmade goods business ➜

Key stats

market size
$664B
revenue (monthly)
$59.7K
starting costs
$42.5K
gross margin
50%
avg product price
$30

 

time to build
6 months
growth
Word of mouth
business model
E-Commerce
time investment
Side project
work from home?
Yes

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $35 $3,250
Employee & Freelancer Expenses $0 $5,500
Equipment & Supply Expenses $525 $5,500
Website Costs $232 $6,500
Business Formation Fees $5,600 $20,400
Retail Business Expenses $0 $16,150
Inventory Expenses $350 $14,750
Software Expenses $150 $3,044
Advertising & Marketing Costs $0 $2,750
Other Expenses $0 $300
Total Startup Costs $6,892 $78,144

Successful Businesses

Business URL Rank
Birch Lane birchlane.com #15,636
ART FIRE artfire.com #24,612
Nappadori nappadori.com #154,731
Ten Thousand Villages tenthousandvillages.com #243,974
Woodland Creek's Log Furniture Place logfurnitureplace.com #348,521
PortraitFlip portraitflip.com #371,776
Go Forth Goods goforthgoods.com #436,084
TIZZIT tizzit.co #484,550
Dallas Designer Handbags dallasdesignerhandbags.com #534,716
ICON4x4 • HAND MADE IN LOS ANGELES, CALIFORNIA icon4x4.com #557,036
Kodiak Leather Co. kodiakleather.com #565,877

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!
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 handmade goods 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.
High margins The gross margins for your handmade goods business are typically around 50%, which is considerably high and allows you to grow your business and manage costs easily.
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.
Stressful work This line of work can be stressful for both you and your clients. This type of transaction is a significant financial decision for your client, so expectations are very high for you. Although this career path can be very rewarding, it also comes with its challenges and stressful moments.
Niche Market A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience.
Churn In this business, customers can cancel their membership or subscription for your services - which can make revenue forecasting challenging and unpredictable. It's important to focus on your churn rates and trends so that you can prevent this as much as possible.
Time commitment With starting a handmade goods 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 handmade goods 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.

Marketing Ideas

  • 1

    Affiliate program

    An affiliate program is a way to reward people outside your organization to share your product.

  • 2

    Word of mouth

    The most tried and true way to grow a handmade goods business is through word of mouth - some entrepreneurs would say it's more important than all social media.

  • 3

    Advertising on social media

    Social media advertising is one of the leading ways to get the word out when it comes to handmade goods business.

    There are various different Social Media platforms available to you. Some may be more critical for your marketing efforts than others, however, it's important to have an understanding of what's out there and available to you.

    Learn more about advertising on social media ➜