How to Start a Craft Business


The craft industry is such a popular business for all ages. In fact, it contributes more than £3 billion to the UK economy and employs an estimated 149,510 people with 11,620 businesses in operation, according to Craft Councils data! Suppose you’re interested in making money through this thriving industry or want your own franchise by investing seriously. In that case, there are opportunities galore – from children’s painting lesson classes to producing pottery or perhaps artisan chocolate manufacturing. The possibilities are enormous for a suitable business model.

Even when the world is crumbling to pieces, it’s hard not to feel happy crafting. It may be small comfort in these dire times or just an escape from reality, but either way, you can’t deny that crafting programmes are more popular than ever.

 Somewhere in the world, countless people are sitting and watching on their TVs as a new artisan makes an intricate design. They may be making something for you, or they might have to wait until tomorrow’s episode airs before finishing it up – but that isn’t what matters anyway. What counts is how much joy these creative individuals bring into our lives every day with nothing more than some paintbrushes, beads, wire wrapped stones and other assorted pieces of jewellery-making supplies.

The development of new skills encourages many craftspeople to consider turning their hobbies into a business; This is possible with the most appropriate business model and carefully developed business plan.


How to Start a Craft Business Legal Requirements:

#businesspartnership I know you are excited to start your new craft business, but some essential steps need to be taken first for it to be successful and profitable. One of those is determining the best business entity and legal structure that suits the goals and objectives you have set out for this venture. There are several basic structures:-

·   Sole Trader:-  this is a sole proprietorship and is the most common business entity for a new small business

·   Partnership– this involves two or more business partners, and they all liable for all debts associated with the business

·   Limited Liability Company Limited Liability Partnership (LLP) -As a professional, you want to make sure your business operates efficiently. This entity is easily set up by running an LLP and running it with two or more members. The profits are distributed evenly among the partners but aren’t subject to their individual liabilities in case of debt defaults

·   Limited Liability Companies (LTD) – limited company The ‘limited liability company is one in which the shareholders are only responsible for their investment percentage, and not a larger share. This means that if someone invests 30% of the cost to start up this kind of business, they’re just liable for what they invested – including all debts- making it more prevalent among British businesses.

You should speak to an accountant or solicitor if you’re unsure which legal structure would suit your craft business style=”color: #48465b;”> best.

Do one of the following: or check the Helpline at www.gov.uk/business-support-helpline.

You need to keep accurate accounts to ensure that you submit your tax returns to the Revenue and manage your successful craft-based company daily. You should also be thinking about who will decide how best to raise money or what direction is taken with management to ensure your creative enterprise’s success!

You want to have a successful business, and planning is essential to achieve this goal. A well-planned enterprise will have fewer setbacks and more successes than an unprepared one! In this article, I’ll outline how you can create your plan for success using simple steps.

Insurance Products:-

Product Liability Insurance:-it is a vital way to protect yourself from the risks of running a business. It can cover you if someone gets injured or property damaged by something sold, even though the craft products don’t come with your name on them.

Public Liability Insurance:- When it comes to public liability insurance, you should make sure that your professional business voice shines through. It’s essential for various reasons: first and foremost is the potential personal injury compensation claims from public members caused by incidents connected with your business activities. 

You will be able to purchase these policies through an Insurance Broker, or you could buy them online from specialist insurance companies.

Crafting Business Business Plan:-

#howtostartacraftingbusinessOne of the simplest things any new entrepreneur should do before starting their venture is creating a solid craft business plan and a viable business without one; they may be setting themselves up for failure right from day 1!

For example:

·         Who are you selling to?

·         Where are these potential customers located?

·         What products or services will meet their specific needs?

·         Price Point at which customers will be prepared to pay to satisfy their demands?

·         Your profit to meet the expenses of the business and provide an income for you.

You can find examples of Business Plan templates from many of the UK Banks; the link I have attached is one provided by the Princes Trust



The best way to build a successful business is when you find your niche and stick with it. If you’re an artist, artisan or crafter looking for the perfect place in the market, determine the kind of craft business style=”color: #48465b;”> you will be running: a small scale production studio? One-person showroom shop? E-Commerce store with products on multiple platforms?










If you’re looking into starting a business, it’s essential to research the crafting area that interests you. For example, if your product is going to be clothes made from tie-dye or embroidery work, then identifying an industry standard for pricing may not be as relevant because there are few competitors in those craft areas yet.

You might need instead find out what similar products cost and how much they would take upon average store shelf space while considering where people shop for these types of items (e.g., big box stores vs boutique shops).

It would help if you researched the crafting area in which you want to start your business, looking at the types of products available and the pricing structure. Often it is helpful to purchase examples of these products to assess their quality and artistic appeal compared with your products.

Depending on your design and customer, you may want to pick a specific tone of voice for each individual. If they’re looking for handmade goods featuring original designs not found anywhere else – think about how they can make them stand out among other artists who sell similar goods. What would set yours apart besides price point or quality assurance guarantees which most sellers offer anyway?

 Customers are more conscious of the eco-friendly products that they use, so there is no need to worry if some buyers will be put off by colours such as black because these days, “eco” seems like it’s going mainstream

What could better represent sustainability than being able to reuse something infinitely rather than wear one piece until it falls apart before throwing away everything together after a while?



#smallbusinessfranchiseIf you are starting a craft business, it is essential to know whether to go for a franchise or a business independent of any franchise. There are some pros and cons to a franchise that you should be aware of. While you may be thinking that starting a franchise is more straightforward than starting your own business, it is not always the case.

Franchisees are provided with a reproducible and established business model and business plan to develop their business quickly. If you are looking for funding, the franchisee usually has access to the financing from one or more of the High Street Banks. The franchisor will provide training and additional support, including a marketing package to establish a profitable business quickly. You must comply with your contract, which may mean you have a defined territory and must have a standard selling price for your products and services. The number of franchises in the Craft sector is increasing; before following this route, you must seek professional advice

Marketing Your Craft Products:-

#smallbusinessmarketing2021Being a craft business owner has many complex aspects to it. Selling your products is just one of them, and choosing where you want to sell can be another tough choice that needs consideration. Some people choose only to sell their goods online; if this is to be your focus make sure that your photos capture the essence of your products and are of high quality and definition. In contrast, others will set up at various events like Craft Markets, Flea Markets, and make sure you distribute your Business Cards around the city or even in person at consignment shops they might have nearby. It’s essential for these new artisans (or anyone with an Etsy store) not just to think about how much money they’re making but also what kind of exposure selling through those avenues their other benefits brings-are besides monetary gain?

You want to sell your craft products online, make sure to investigate the various platforms and social media sites that are available. For example, on Facebook or Instagram, there is a greater focus on user-generated content than other networks such as Pinterest, which focuses more on creative images from brands themselves. The most important thing when choosing an online platform for craft sellers should be whether they can build enough of their own followers within those selected channels, so they don’t have to rely solely upon what buyers find through Google search results pages – this will help them create direct connections with potential new customers who may not otherwise come across one’s work while browsing these types of websites organically without expressly looking for it specifically first either by keyword searches or popular hashtags


Craft Websites:-


is a website that connects people with crafts from all over the world. It was founded in 2005 and, as of 2018, has 60 million items available for purchase, which means there’s likely something on Etsy you’ll enjoy! You can use Etsy as a vehicle to create an income because it offers you opportunities to rent out your space or even sell artwork through their marketplace services.


is a popular site for artists of all sorts to showcase their work and make money. It’s also great if you need your art digitally printed on anything from mugs, t-shirts, or cushions!

Customers purchase these items by submitting a custom order through Redbubble’s website or mobile app, which provides designers with real-time notification of orders as well as customer feedback to help make future decisions about pricing and inventory updates easier than ever before!

Redbubble has made it easy for independent artists looking to get started in business without any initial costs associated; just sign up on their site free of charge, then start designing your first item! Registering for the site is free.

The ‘base price’ (i.e., what you pay to the site) can vary depending on how much commission you want them to take from your sales, and it varies by item type, so check out their explanation of rates before setting anything in stone!


 Not on the High Street

Not On The High Street is a website for handmade items and crafts. The UK based, it has over 5,000 sellers or ‘partners’ as they are called. It’s a popular location for shoppers looking to find unique gifts made by skilled independent craftspeople who have their own personal touch to every product sold on the website!

Setting up an account involves applying for partner approval; partners pay a setup fee o £199 Ex Vat and pay 25% commission on the sale of all products


This is often called the UK equivalent of Etsy, is a website that allows you to sell your craft items online. It’s like their British equivalent! You can quickly set up your account in just minutes to get started with Folksy. Listing an item will cost 15p, and then they charge a 6% commission on any sales made once someone buys one of your products. They also offer three free listings when signing up for the site, which means as soon as I created my account, there were already three things available for sale right away!

Use Your Own Website

Get your website up and running with a minimal investment of time; if you want an e-commerce site that will help increase your sales, Wix or Shopify are perfect. For just £8.5 to £25 per month, it’s possible to create websites for crafters that offer all necessary templates and features from blogs to online shops – so get designing today!

You can build your own website to show off all of your handcrafted masterpieces, but you’ll need some technical knowledge. Another alternative is to arrange for a designer from Fiverr to construct your website and arrange the hosting for your site.

Training Workshops:-

#crafttrainingMy crafters specialise in manufacturing products such as jewellery, pottery, and sewing have run workshops on their YouTube channel to demonstrate their skills and offer a learning experience to help others develop their skills. These have usually been free courses, but it opens the way for starting an additional income stream for your business by running a subscription model for crafters becoming paid members of your online presence. Once life is more normal following the Pandemic to run workshops for individuals to attend, painting schools have been held in picturesque locations. The craft and accommodation become part of a holiday.

It is very rewarding teaching skills to others and a career that can be very financially lucrative. Consider taking on the task as weekend retreats or for more extended periods with children and adults alike to help encourage their skills in your craft while gaining satisfaction from both financial success and developing new talent


You want to follow your dream and start a Craft business style=”color: #212529;”> to employ your talent and enthusiasm and develop a finally rewarding asset. The time is ripe to take your talents and create a business that will provide you with financial security. Don’t forget the research, planning, and hard work it takes to make this dream of yours come true!


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