Tips On How To Start A Home Based Craft Business

Are you the artsy type? In regards to the crafts that you produce, do you often hear from family and friends that you should "sell this stuff"? They may be on to something there! You may be the perfect candidate for starting a craft business.

Crafts are all the rage in every part of the country. People love the uniqueness of something that is handmade, the folksy "down home" charm or the contemporary flair of arts and crafts. If you have dreamed of being in business for yourself, setting your own hours, and making enough money to quit your day job, then a craft business may be your way to a better life! The tips that follow can help you start a successful business that allows you to profit from what you love best - crafts.

The red tape. When starting any type of business, including a craft business, there is always a few miles of red tape to encounter. You will need a business license, and dependent upon the type of crafts that you are making, you may need a fire permit to work out of your own home, that is if you plan to do so. You will also need a use permit or resale license. If you live in a state that collects sales tax, you will also need a seller's permit. Find out the exact requirements for your particular state by doing an online search or visiting your local courthouse.

Buying your supplies. Establish a working relationship with companies that sell the supplies you will need for your company, whether it is floral products, paint, fabric, or tools. Buying your supplies direct from wholesale dealers or manufacturers will require a sales permit and business license, but you will save a significant amount of money over buying them retail.

Become a staunch bookkeeper. If you want to maximize the profit to be made, you will likely want to keep your own records rather than pay an accountant. You can buy basic record keeping/bookkeeping software that will simplify the process, like Quick Books.

Keep your day job (for now). While many new businesses do well, some falter and die within a year. If you are working in a job that you need right now to make ends meet, then stick with your job until you are better able to judge how your new business will do.

Determine where you will sell your crafts. Will you be selling your creations online, out of your home, at festivals and shows, or elsewhere? Make a plan before you build a big inventory. There are also consignment shops that will sell your wares for you.

Build a website. A website can be the best way to make money in a crafting business, and most of your customers and clients will expect you to have one. Establishing a custom website is not that expensive, and you can have a full shopping cart feature that allows your customers to order your products online and pay you immediately. This is also a good way to build brand awareness, when coupled with other marketing efforts.

Good luck with your craft business!

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