How to Start Your Small Business with Handmade Crafts

1. Research Your Niche

Finding a niche goes way beyond picking a random craft you want to tell. It requires research on competitors, discovering niche communities, understanding what customers are looking for, and identifying what sets your product apart from the rest. 

The most profitable handmade crafts offer is a combination of functionality and style. However, if you want to avoid risk, go for smaller crafts with lower production and shipping costs. This will help to save money and time, freeing you to focus more on other aspects. 

Consider these popular and profitable craft categories to start with:

Home Decors:

• Everlasting handmade felt flowers
• Wool coasters and tribets

Seasonal and Holiday Items:

• Christmas ornaments
• Halloween crafts
• Valentine's Day decor
• Easter decorations 

2. Choose a Trusted Supplier

In today’s business landscape, the most significant advantage is that one does not have to produce every item. Outsourcing felt products is a smart way for entrepreneurs to source high-quality, customized products faster without the burden of in-house production.

Here’s what to look for in a supplier:

• Reliable suppliers that ensure consistent product quality with responsive customer service. 
• Manufacturers that offer a custom option in size, shape, and ample color options.
• Competitive pricing with bulk discounts.
• Provide a strong commitment to fair trade practices.

 Starting an outsourcing partnership is easier than ever. Felt and Yarn makes it easy to source beautifully crafted, market-ready, wholesale products that reflect your brand and values without the complexity of manufacturing them yourself. Just choose the products and pick the colors that suit your brand. 

3. Differentiate From Competitors

Every business has competition, so to run a successful craft business, differentiation is a must. May it be through color combinations, distinctive packaging, or custom designs. 

Here are some ways to stand out from your competitors:

• Build your own brand identity 
• Choose a compelling business name 
• Design a logo to represent your craft’s personality
• Define your brand colors for marketing

Your brand identity should reflect on your products, too! To create a one-of-a-kind product, curate it based on your brand’s color palette and a packaging theme that reflects your logo. 

You can also collaborate with Felt and Yarn to create product bundles that match your brand and even opt for private-label packaging so you can build a product collection that’s uniquely yours without producing it yourself.

4. Choose Where to Sell Crafts

Once the products are ready, the real selling work begins. 

There are several options for selling crafts, both online and offline, in local marketplaces or exhibitions. 

To sell handmade crafts online, these are some of the best online platforms to start:

• Etsy is fantastic for handmade craft gifts, with an easy setup
• Amazon provides a larger audience to sell unique crafts
• Shopify, if you are thinking of creating your custom-themed website 
• Instagram is best for cost-free and craft storytelling promotions. 

Where you sell handmade crafts can make all the difference in reaching your ideal audience and growing your craft business. 

5. Scale Your Business

As your business starts growing, so should your operations. This can be done by expanding revenue opportunities and working on ways that serve more customers without burnout.

Here’s how to scale your handmade business:

• Expand your craft line by adding complementary products that align with your bestsellers.
• Create a bundle of products for seasonal gifting, like Christmas and Mother's Day. 
• Automate repetitive and minimum creativity required task email responses, or customer follow-ups.
• Provide crafting-related classes or workshops. 

When your hands are tied with work, Felt and Yarn can be your behind-the-scenes production partner as you focus on growing your business.