Crafts make us feel rooted, give us a sense of belonging and connect us with our history. Our ancestors used to create these crafts out of necessity, and now we do them for fun, to make money and to express ourselves. – Phyllis George

AIf you love crafts and make craft items that get a lot of compliments, you could turn this hobby into a successful home business.

But, how do I begin?

Here is a step-by-step guide on how you can start a handmade business the right way:

Step 1 – Business Plan

Planning is important for success so don’t forget to prepare a business plan  for your creative business. Strategize on how you introduce your products and fund your business. Include information about how you will run and promote your business as well.

Step 2 – License

Obtain a business license for your home craft business. If you live in a state that collects sales tax, and you intend to sell your products to the general public, you will need a Seller’s Permit or Resale License. Visit your state’s web site or call your State Board of Equalization for an application. There is usually no fee for a resale license; however, (depending on your state’s guidelines) you will be required to submit quarterly and annual reports that will determine the payment you will make to the state.

Step 3 – Business Name

Choose a business name that describes the type of crafting you will do may help customers understand what you sell at a glance.

This will help identify your brand so make sure that you choose wisely.

Step 4 – Craft Supplies

Look for reputable wholesalers of the craft supplies and equipment you will use on a regular basis. Buying supplies and equipment wholesale may help you save money and increase your profit.

Here’s a list of reputable online wholesalers for craft supplies. Also, here are 3 Tips For Finding The Cheapest Craft Supplies.

Step 5 – Bank Account

Do not mix your personal bank account with your business account. This will help you organize your savings and monitor your profits.

Keeping a good track of your finances is crucial to the success of any business.

Step 6 – Home Space

Find a good space at home where you will be comfortable making your products. You may also need a desk for handling your business paperwork, a filing cabinet for filing orders and receipts, shelves for storage and basic office supplies.

Step 7- Packaging

Buy attractive packaging, including wraps, bags and gift boxes for your crafts. Appealing packaging may help you sell them and might encourage your customers to buy more. Don’t forget to add labels with your company name on them as well.

Step 8 –Selling Your Products

It pays to have a professional-looking website for your business to help people find you easily. You may also display your products on popular websites such as Etsy and Artfire. Often, such websites will allow you to set up a free profile to which you can direct customers who want to learn more about your business. You can also offer your crafts for sale at consignment shops and through home parties.

Your Guide To Making A Professional Looking Online Craft Store will help you to make sure that your presentation online of your business looks as good as it can be.

You can also try free services like Homestead and Weebly to build your online store.

Step 9 – Connections

Meet new people and make more sales. Find people, family, or friends who may be interested in giving your samples to clients. Take brochures and business cards with you.

Step 10 – Find A Craft Management Tool

I may sound like a salesman here… but hey, time is money. You need more time with events, family and other day jobs. It pays to have a tool that will help you track your inventory, price modeling and invoicing.

Craft Maker Pro can help you stay on top of your inventory so you can spend precious time creating beautiful crafts not counting inventory.

Read the rest of our A-Z Handmade Business Guide here.

Gary Capps

I live in the one of the most beautiful places in the world on the Sunshine Coast in Australia with my wife and our 2 dogs, Poppy and Mia. Since 2009 I have helped over 15,000 handmade business owners to grow their business with our software and free tools designed for todays entrepreneurial artisan.

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