Have a craft hobby that you want to monetise? Side hustles are all the rage right now. But how do you get started? Read on for top tips on how to create a small craft business in 2023.
Nail your niche
Small businesses often start from hobbies which expand into something more as time progresses. In an ever-expanding market, general crafts can be an oversaturated field, making it difficult to be seen. By working with a niche (a smaller area of specialisation), it becomes far easier to sell your goods.
Create a business plan
Your business plan is your bible, the most important document that you’ll create during your first steps in business. It tends to change as you grow and you’ll revisit it time and again, but it makes a massive difference in how successful your business becomes.
Choose a tax structure
Whether you choose to be a sole trader or register as a limited company, there are legal requirements to consider. Initially, if you’re seeing less than £1,000 a year coming in (gross income) from your business you may not have to register at all. See this article for more information:
Find your suppliers
Your suppliers can make or break your business as they set many of your expenses and are your key to keeping costs down.
Some companies sell pre-made kits which can save you money on wasted materials. For example, a knitting kit is a brilliant way of preventing wool waste since it provides you with the amount needed to complete the included pattern. A knitting kit would also alleviate the stress and time of sourcing different suppliers for each element. Remember, your biggest expense is your time so save it where you can.
Selling platform
Whether you plan to create your own website, sell in person, or use a larger marketplace such as Etsy, where you sell impacts the size of your potential audience and trading fees. It’s one of the biggest decisions you’ll make when starting out, so don’t rush and make sure to research thoroughly.