So You Want to Open a Craft Business?  Discover the 10 Basics of Starting a Craft Business

Craft Business Tip No. 1 - Don't Expect to Make a Fortune Overnight

As they say, do what you love and the money will follow.  To start with, don't focus on the money.  It will come in time.  If you are hoping to make a quick buck, then starting your own craft business is not the way to go. It usually takes months to see a return on your investment and years to see major profits from your hand made craft (if you ever do see major profits). Crafters engage in their small businesses because it is their passion, not because they expect to make thousands of dollars every week from selling their products. That’s not to say that there isn’t money to be made – it just takes a lot of time and perseverance on your part.

Craft Business Tip No. 2 - Start Small to Keep the Overhead at Bay

When starting your new craft business, you should try to avoid borrowing money, whether from a bank or off of your credit card.  Having to meet monthly loan payments can create financial stress on your new business and quickly zap your enthusiasm. Try to use your extra money or some savings for purchasing initial supplies, and then try selling your products at local shows and to family and friends to recoup your initial costs.  You might also want to consider setting up a web site to sell your crafts or offering them on EBay.

Craft Business Tip No. 3 - Do a Bit of Research

To have a successful craft business, you need to know what people are willing to buy and how much they'll pay.  You'll also need to figure out your bottom line; that is, how much it is going to cost you in terms of supplies and time in creating your crafts. Because this is a business, you need to keep costs and time low enough to turn a profit.  In determining your market, peruse the Internet or magazines in y our local grocery store to see the types of crafts that are popular.  It is important to figure out who makes up your target market and what the best way to connect with them.  You can learn a great deal about what is selling by checking out EBay's recently closed auctions.

Craft Business Tip No. 4 - Discover Your Niche

Making a splash in the crafting industry usually means setting yourself apart with something that's unique and has appeal. Try experimenting at the upcoming county fair.  People passing by your booth will comment on your crafts that you have to display and if they love your product, will buy.  County fairs are a great way to test your market and niche, and it doesn't cost an arm and a leg to rent a booth.

Craft Business Tip No. 5 - Be Prepared to Market Yourself

It may sound obvious, but many of the best crafters aren’t the best sales people. When you start out, you are most likely going to be selling your craft yourself at local shows. You have to make sure that you are comfortable talking to people about your craft and make those much needed sales. If you're in a small town and have some appealing crafts, consider talking to your local newspaper.  Many times, the paper will feature your unique business.  Your local chamber of commerce is another way to get excellent referrals and support.

Craft Business Tip No. 6 - Develop a Support System

When you first start out, you’ll need to rely on your family and friends. They will probably be your first customers and if they like what you're doing, will spread the word.  When you start showing your products at local craft shows, your network of family and friends can help with manning your booth and with setting up and tearing down your display.

Craft Business Tip No. 7 - Add the Personal Touch 

Craft Business Tip No. 8 - The Market is Fickle

Be prepared for some dry spells. Your sales are often seasonal because there are more people looking for unique crafts around the holidays. You need to prepare your stock for these surges in demand, but you also need to be prepared financially for any lulls.

Craft Business Tip No. 9 - Other Crafters - Friends or Foes? 

Other crafters can be your best resources. They can give you tips and helpful expertise. They are also your competition. There is only so much money that people are willing to spend on home made crafts, so you need to set yourself apart from other crafters and try to steer clear of those who will copy your ideas for their own gain.

Craft Business Tip No. 10 - Patience 

Good things come to those who wait. Don’t get discouraged if your new home made craft business is not a success right away. It takes time to establish your reputation and your customer base. If you enjoy working in crafts, persistence is key!  Do what you love and the money will eventually follow.

"So You Want to Open a Craft Business?  Discover the 10 Basics of Starting a Craft Business" contributed by Shari Van Eck