Starting a craft business can be a fun and rewarding experience. Still, it can also be challenging if you don’t know where to begin. In this article, we will provide a step-by-step guide on starting a craft business in the UK. So whether you are just starting out or you have been running your craft business for some time, read on for helpful tips and advice.
Craft businesses are increasing in popularity as more and more people become interested in handmade goods. According to the US Association For Creative Industries, the craft industry is worth an estimated $43 billion in the United States. So there is undoubtedly potential for your business to be successful.
Benefits of Starting a Craft a.k.a. Handmade Business
There are several reasons people might want to start their own craft business. Perhaps you have always loved making things with your hands, and you want to turn this into a career. Maybe you are fed up with the nine-to-five grind and want to work for yourself. Or perhaps you just love crafting and would like to share your creations with the world.
Is starting a Craft business right for you?
No matter your reasons for starting a craft business, it is essential to have a clear idea of what you want to achieve. Do you want to be making a full-time income from your craft business? Or is it more important that you enjoy the process of crafting and don’t mind if you don’t make much money?
It is also essential to have a realistic idea of the amount of work running a craft business. Owning your own business can be a lot of hard work, so you need to be prepared for this if you decide to take the plunge.
Starting a Craft Business
Now that you have decided that starting a craft business is right for you, let’s look at what you need to do.
Step 1: Find your niche.
The first step in starting a craft business is to find your niche. What type of crafts do you enjoy making? Are there any specific products or services that you want to offer?
Do you have a current interest or hobby?
The best way to start a craft business is by starting with something you are already interested in or have some experience in. This will help you build a foundation for your business and give you the knowledge and skills you need to be successful.
If you’re not sure what sort of craft to focus on, that’s fine. There are many different types of crafts to choose from, so take some time to research and find the one that is right for you.
What products or services are you going to provide?
Once you have decided on the type of craft business you want to set up, you need to develop a range of products or services that you will sell. This could be handmade jewelry and accessories, home decor items, or children’s toys.
It is essential to have a mix of products to appeal to as many people as possible. Still, it is also vital to stay true to your own personal style. Selling products that you don’t feel passionate about will be reflected in your work, which could damage your business.
Your brand is what sets your craft business apart from all the others out there. You also don’t want to be selling the same thing as everyone else, so try to develop some unique products that will set you apart from the competition.
Step 2: Determine the Cost of Starting a Craft Business.
Before you start your craft business, it is crucial to understand the costs involved.
The cost of starting a craft business can vary depending on the type of business you want to set up. You will likely need some initial capital to get your business off the ground if you are just starting out. This could be in the form of savings, or you may need to take out a loan from a bank or other financial institution.
There are several things that you will need to factor in, such as:
The cost of setting up a home office or studio
If you are going to be running your business from home, you will need to factor in the cost of setting up a suitable workspace. This could include a desk, chair, computer, and printer.
The cost of materials and supplies
This can be a significant expense for craft businesses, so you need to find ways to keep these costs down. One way to do this is by sourcing materials from online suppliers or buying in bulk. You can also look for deals and discounts at your local craft stores.
Advertising and marketing expenses
This includes website design and development, printing costs for business cards and flyers, and the cost of advertising in local newspapers or online.
Equipment and tools
Suppose you are starting a craft business that involves making products. In that case, you will need to invest in essential equipment such as a sewing machine, an oven, or a kiln.
Professional fees
If you are setting up a business in the UK, you will need to register with HMRC and may also need to set up a company limited by shares. You may also want to consult with an accountant or lawyer to get some advice on tax and legal issues.
Step 3: Choose between a Limited Company and a Sole Trader.
When starting a craft business, you need to decide whether you want to operate as a sole trader or set up a limited company. There are pros and cons of both options, so it is essential to weigh up the advantages and disadvantages of each before making a decision.
A sole trader business is simpler and less expensive to set up. Still, you are personally responsible for any debts or liabilities incurred. This means that if your business fails, you will be liable for any losses.
A limited company offers more protection as the business is separate from the owner. Still, it is more complex and expensive to set up. It also requires more paperwork, and you will need to appoint a director and secretary.
Step 4: Name your Business.
Once you have decided on the type of business you want to set up, you need to come up with a name. This can be pretty difficult as you will want to find a name that is not already taken and is relevant to your products or services.
You can check if a business name is available by using the online register at Companies House.
It is also essential to check the domain name is available for your chosen business name, as this will be the web address of your website.
Step 6: Find your suppliers.
Once you have set up your business, the next step is to find suppliers for your products. This can be done by searching online or through trade directories.
It is important to find reputable suppliers who can provide you with quality materials and supplies at competitive prices.
Websites like Alibaba offer a range of suppliers worldwide, making it easy to find a supplier for your products.
When sourcing your materials, think about the shipping costs, as this can quickly add up if you are ordering from abroad.
Step 7: Market your Craft Business.
No matter how great your products are, you will not make any sales if no one knows about them. This is why it is crucial to market your business effectively. There are many ways you can do this.
Selling crafts online
One of the best ways to reach a global audience is by selling your products online. Several platforms available, such as Etsy, make it easy to set up an online shop. Etsy is free to use, but they take a commission on sales.
You can also create your own website using services such as Squarespace or Wix. This will give you more control over the design and content of your website, but it will require some basic web designing skills, which can be learned online very quickly. This is much cheaper than hiring a web agency, and you can always outsource this work if you don’t have the time or skills to do it yourself.
Approach retailers
If you want to sell your crafts in physical stores, you need to approach retailers and pitch your products. This can be a daunting task, but many resources online can help you.
You can also approach independent stores as they are more likely to take a chance on new companies.
Attend Craft Fairs
Another great way to market your business is by attending craft fairs. This allows you to meet potential customers and sell your products in person. A Google search for “craft fair” will show you a list of upcoming events in your area.
Set up a display(stand) of handmade items
Additionally, you can display your handmade items on the high street to promote your business. This can be a great way to get your products in front of potential customers.
Step 8: Create a business plan.
A business plan is a document that sets out your business goals and how you plan to achieve them. It should also include information on the products or services you offer, your target market, and how you will finance your business.
If you are looking for funding from a bank or other financial institution, they will usually require a copy of your business plan.
Step 9: Think about insurance for your craft business.
When setting up a business, it could be beneficial to think about insurance. This will protect your business in case something goes wrong, such as a fire or theft.
There are many different types of insurance available, so it is essential to do some research and find the best policy for your business.
Conclusion
Starting a craft business can be a lot of work, but it can also be gratifying. By following these steps, you will be on your way to starting a successful business.
Thanks for reading! We hope this article has been helpful. If you have any questions, please don’t hesitate to get in touch.