Start a Handicraft Business

How to Start a Handicraft Business

Do you have the talent for creating eye-pleasing, inventive and interesting craft items? If yes, you can turn your passion for crafts into an income-generating business.

Have you realized that you could be earning from what you love to do most. Now what could be greater than that?

In the past few years the handicraft industry has seen an increase in demand. More and more people are seeking out original handmade items that are functional and eye-catching, yet more affordable relative to artworks such as paintings.

Areas of the country that have experienced a surge in tourism also encounter a heightened demand for craft items as tourists purchase unique cultural items as souvenirs for family and friends, as well as for their own personal use.

Even where you may have the skills for creating beautiful handiwork, starting a successful crafts business demands a whole different set of expertise.

Start-Up Concerns

If you are planning to turn your love for crafts into a business, there are a number of factors that you need to consider:

Decide why you're really starting this business. Your goals for converting your hobby into a business can spell the difference in the level of success that it can generate. If you want your craft business to generate or supplement your family's income, then you have to get serious and start treating it as a business.

Verify the demand for your products. You need to know with certainty that people will want and buy your handicrafts. There are crafts that cater only to a very small market and cannot profitably support a business.

Creating crafts is one thing; knowing how to turn a profit from it is another. Understand all the requirements and have reserve capital to meet expenses before you are able to produce sales and earn a profit.

Do your homework. If you have no previous background in business, now is the time to begin learning about the basics of managing and running a small business. You will not only produce the products, but you will handle its marketing, selling, bookkeeping, purchasing and a thousand other things.

Find out about local regulations. As a business owner, you should familiarize yourself with local regulations, including licenses and permits that you need to operate your business.

Find an area where you can work, giving consideration to efficiency and the eventual expansion of your business. Whether you will be working in a spare room or rent a workshop area, your studio must fit your needs in terms of size, services, security and safety.

You may want to work from home to help you operate with lower overhead and start with a smaller amount of capital.

Make sure that your workplace has an adequate electrical service and ventilation system, particularly if you are using chemical dyes.

Craft items can be sold in a variety of outlets.

Here are a few of them:

Retail stores. The most popular way of selling craft items is through specialty craft or gift stores. You can also try selling your items to department stores.

Approach the owners or the merchandisers about carrying your products. You can first start-off with the smaller boutique stores, offering them discounts.

Consignment stores. Consignment stores are another excellent venue for selling your products. They will pay you only after they sell your work, keeping 20 percent or more of the sales amount.

Craft and flea markets. Craft shows, flea markets and local fairs are a great way to sell your merchandise. People who visit these markets are on the lookout for unique pieces not commonly found in department stores.

Check professional craft associations and your county's business information center about schedules of craft shows and markets. If there's a regular flea market in your area, get in touch with the person in charge.

Craft markets can offer you the chance to get to know buyers and what they are looking for, as well as check out your competitors.

The Internet. The Internet has become an important distribution channel for crafts. You can create your own e-commerce site, join virtual craft malls, or sell your products at online auctions.

To use the Web you need to learn how to take good quality pictures: your sales depend on it. Note, however, that successful online marketing takes time, patience, persistence and knowledge of marketing principles.

Marketing Your Crafts

Be aware the most effective form of marketing a craft business is your reputation for high quality work. By consistently producing fine craft products that are exciting and innovative, your reputation can serve as your word-of-mouth advertising.

Word-of-mouth, especially if given by an opinion leader, such as a newspaper columnist, is a powerful tool that can build your business.

Other marketing ideas that work well - include:
Business cards and pamphlets illustrating and describing your work. Choose your best product to showcase and ensure that its photograph is first-rate.

An interesting story about your craft business. It could be the unique way with which you produce your crafts, the indigenous materials that you use, or how you started doing what you love. You can put your story in your web site, pitch the story idea to a newspaper editor, or include it in your brochure.

Portfolio of your works. Create a portfolio of your best works using quality photography.

Direct mail. Make certain that you get a targeted mailing list. Use a printed postcard, instead of flyers or brochures to cut costs.

Online advertising. There are many forms of advertising on the Web that you can try: buying targeted banner ads, Google ad words for your keywords, or even donating a craft item for web site contests.

Marketing your business will take up a significant amount of your time. Make sure that you develop a plan on how you can effectively get the word out about your business and move your craft items

Start slowly, but surely.

This is particularly important if you are starting on a very limited budget. If you do not have enough resources, you have little room for trial and error.

Discover what the market wants before spending too much on inventory, supplies and marketing. You also need to know how to cost-effectively run your business and learn the skills that you need to manage your cash flow.

Price your products right.

How to price your products is often a challenge for craft business owners. You do not want to price yourself too low that inadequately covers your costs; but you also do not want to overprice yourself out of the market. The key is to price your crafts for profit.

Dolly Kraft

(Art and Dolly Kraft are authors of the step-by-step book - "Start Your Own Highly Profitable Home-Based Craft Business" A Complete Guide to Starting and Running Your Own Home-Based Craft Business.)