Welcome to the world of fiber arts! It has a little name, but a big selection. Often, crafters are familiar with, and want to sell, several different forms of fiber arts. While this is great for selection purposes, it makes streamlining and marketing your products more difficult. Narrowing your art form down to like techniques or products makes this easier. Explore all that fiber arts has to offer!
What the heck is "niche-down"? "Niche Down" is a term used to describe the process of simplifying your business model and deciding on your product line. Simply promoting yourself as a "crochet business" isn't very descriptive. What do you sell? Who is your audience? There's a couple ways to go about this process - you can pick a sector of an art form and go from there (crochet clothes, for example) or brainstorming who your ideal client would be and create a line of products based off what that fictional person would buy. Use the sector chart and the ideal client worksheet to decide where to go from here.
This is where your need to decide what type of business you want to be. There is no wrong answer, but it will determined what you need to do going forward. For simplicity, we're going to call the two different types of business "Craft Jr." and "Craft Sr." Click on the names to explore the business types and decide which one is right for you. Read over them and still struggling? This guide can help you decide which is best for you.
When choosing your business name, it's important to keep two things in mind: one, choose something with potential, and two, remember that changing your businesses name down the line can be tricky. Choosing a name with potential is a good way to ensure that your business has room to grow. If you choose something too specific, it could stunt to ability for your business to expand its product line in the future. Also, you'll want to avoid changing your business name in the future, especially if you chose the Craft Sr. plan. Going through the process of changing your businesses name on legal documents, marketing materials, and retail websites is complicated and costly. Choose wisely - no pressure! Having trouble? This business name generator from Shopify.com allows you to describe your business in one word, then you're provided with business names that are not already trademarked! This is especially helpful if you chose the Craft Sr. plan.
As far as brainstorming your brand goes, a good way to do this is to envision to vibe that you want your website to have. While your brand does expand past your website, this is often the first place people interact with your business, so their impression should be strong. Contemplate your ideal client from step 2. What social media channels are they on? What would their Pinterest boards look like? An aesthetic is important. A good exercise to figure out what you want your businesses aesthetic to be is to create a mood board.
First and foremost, no matter where you eventually decide to sell, you're going to want your own website. Platforms like Etsy and eBay are great and come with a built in network of customers, but they don't provide much in the way of branding or marketing. Usually when customers are searching on sites like those, they are looking for a specific product, not a brand. Having a brand identity of your own outside of the small descriptions that are provided on third-party websites is critical in attracting repeat customers and growing within your community.
As far as launching a website goes, you have a few options. The most basic option is Google Sites, which is free option, but it lacks the ability to sell online - this is the better option for Craft Jr, in my opinion. A work-around to the online sales problem is structuring the website like a catalog where customers can browse your product line, then reach out to you via email or google form to order products. Once you've communicated with the buyer, you can charge them through CashApp, Venmo, or PayPal. Be careful, though. Starting last year, Venmo announced that payments made for the sale of goods and services (meaning that when you pay your sibling for lunch, for example, this doesn't apply to you) in excess of $600 a year are required to be reported on tax returns. Now, this isn't a problem if you won't hit that $600 mark, but if you do and even if you aren't at a place where you are filing taxes yet, you have to report those earning to the IRS, which means they will be taxed. Also, charging through these services allows for higher potential of fraud because you don't have the security of a bank behind you - all of these payments function like cash. Watch out for generic or mass emails, obvious and repeated spelling mistakes, odd fonts, or other strange behaviors.
Another option when launching a website is using a web hosting platforms. Companies like these, for a fee, offer services in building and maintaining a website and make the website accessible on the World Wide Web. URL's are usually customizable, which is good, but they can feel amateur and empty if you're first starting out. Some popular platforms are BlueHost, GoDaddy, and WordPress. They vary largely in price and plan, so it's worth doing some research. This article from DreamHost can help you decide which platform is right for you.
When selling on Etsy, you need to know a few things. First, there is a fee for listing on their site. It's low, about $.20 an item, but it does exist and it needs to be renewed after a few months if you choose to keep the product up. Also, it's important to note that the majority of Etsy sellers never make any money. There's a good and a bad side to everything - and the large customer base is no exception. Because there is so much traffic on the website, lots of sellers and their products are lost in the shuffle.
Next, theres eBay. It's less common to sell handcrafted items on here, so there is less of a presence of people buying them. People rarely build business off of only selling on eBay, but it doesn't hurt to list your items there, so long as you're willing to keep track of cross-site inventory, which can be a headache, so beware!
Finally, there's Facebook Marketplace. This is a tricky one - people have negative connotations associated with Facebook, but handcrafted items are hot right now. When selling on Facebook, it's important to remember to focus on the local market. Shipping through Facebook can be dicey, so it's best to avoid it.
You also have to consider shipping when selling online. There are shipping calculators that can be added to personal websites, but larger sites like Etsy and eBay have them built in, so that is also something you will want to consider.
Generally, if you are Craft Jr., stick to local sales, Shipping products get logistically and financially challenging very quickly. Looking for local craft fairs and farmers markets is a great way to sell your product. Often, there is a table fee at these types of events, but there is a dedicated customers base attending these events, so that's a bonus. When selling locally, keep in mind that a good story is important. This article by Cobble Hill Farms is a great place to start when considering venues like this.
Finally, remember that a combination of these methods can be used, as well. It's not uncommon to see people selling on more than one platform, and it can work in your favor, as well.
This step is important, especially if you are looking to get outside small-business funding. Having a list of tangible skills and pre-existing supplies is a great way to show investors that you are serious, focused, and good at what you do. Sorting this out now will help you when writing your business plan.
Next, you have to make a decision about whether or not you want to use your personal supplies. For clarities sake, we will be referring to traditional supplies like yarn, fabric, or anything else that you product will be made of as "consumable supplies", and any tools that you use to make your product will be called "fixed supplies." Likely if you are following Craft Jr., you will use your own personal supplies because this plan does not allow for separate business expenses or a budget for craft supplies.
Finally, you can use this worksheet to assess your skills and existing supplies. Save the finished version of it, so when it comes time to write your business plan, you have a really great starting place!
This will look different depending on what you chose in step 3. If you're on the Craft Jr. plan, this will probably just be for your purposes. Helping to organize your thoughts and set up specific goals is the point of creating your business plan. It really doesn't have to have particular format - it can even be an entry in your journal! This is just your space to work out a few things - what you want to sell, who your audience is, where you will source supplies, where you will sell, your selling strategy, when you launch, and anything else that you feel is important to include.
However, if you're on the Craft Sr. plan, this will play an integral role in securing small business funding. There are many templates out there for a good business plan. The U.S. Small Business Administration has a great guide on how to make your small business plan. You can follow that one, or find your own. When you're finished, it's a good idea to have a trusted friend or family member look it over. Make sure that everything is spelled correctly, the grammar is correct, and it looks professional. The people who decide if you get funding or not will be the ones to see this, so make sure to "wow" them!
If you're in the Craft Jr. crew, you can probably go ahead and skip this one! It's always a good idea to do some research on your local regulations, but typically, if you are running a really small business, and sell under a certain amount of product every year, you don'y need permits.
For Craft Sr., you're going to want to get the proper permits and licensing. This process can look really different depending on a lot of factors. This webpage from Vermont State Website lists several different types of businesses, and gives helpful resources on getting them permitted, so check it out.
As far as insurance goes, this can also look very different. Look at this article from the U.S. Small Business Administration. It goes through the process of getting insurance, and all the technicalities associated.
Funding is important for purchasing supplies, making necessary payments to get permitting and insurance, and so much more. This guide from the U.S. Small Business Administration can walk you through it. There are several ways to get your business funded. Additionally, this page on our website has some helpful resources regarding local funding and organizations that can help you launch your business.
First, you'll want to get a grasp on what you'll be selling. From there, make a list of the supplies and tools that go into making that item. Do this for each item in your product line, and multiply it by your starting stock. From there, you can use small business funding or personal funds to buy the supplies. Depending on how much you're making, buying in bulk may be a more cost-effective option.
If you decide to keep your personal craft supplies separate from your business supplies (discussed in the next step), you'll want to find a separate space to store your items. If you're lucky enough to have an extra room in your home to dedicate to crafting, this would be a great place to set up. If not, a closet or a bin will do just fine. Pinterest has loads of ideas on how to store different types of craft supplies, so definitely check it out.
Building up stock is really important - especially from a client retention perspective. If someone goes to your website and and it looks bland and empty, they won't be very impressed and are less likely to come back and buy something. If you have a good stock built up, it allows you to represent your entire product line upon launch, and take opportunities without having to stress about making a lot of product in a short period of time, like selling at a craft fair.
Regardless of what plan you're on, you're going to want a healthy stock - whatever that may look like to you. If you're on just starting out on the Craft Jr. plan, a good plan of attack is to choose a couple of items that you are good at making, you know how to make well, and can make quickly. When you're first starting to get your business going, doing custom or individualized orders that take lots of resources may not be worth your time. If you're on the Craft Sr. plan, the key is to plan ahead. Starting your product development and making a week out from launch isn't a great idea. Allow yourself plenty of time to properly develop and make your product line - make sure you have a diverse and cohesive range of products.
Product photography is so important, especially if you're selling online! For online businesses, pictures are probably the only interaction that potential customers will have with your products when deciding to buy, so you need to "wow" them. Sure, selling in person does allow the person to interact with the product IRL, but great pictures do wonders for marketing material and websites.
There's mostly two types of product photography - posed and simple. Posed is just what it sounds like, when someone like a model is wearing the object showing its use, or the picture is showing how the product is used. These are harder to pull-off than simple photography, but they can be used for context. Simple product photography is a picture of only the product, usually in front of a white or solid-color background.
When you're just starting out with product photography, simple is best. If you're not familiar with photography, incorrectly composed or focused shots can completely ruin the sale of a product, even if the product itself is great.
We recommend getting a photo box - they are cubes made of special fabric that diffuses light and makes for great pictures. You can find a tutorial on how to use them here. The concept behind every box is the same, but they vary in price. Some have extra features like internal lighting devices or tripods. If you're just starting out opt for an inexpensive one (or even DIY it!) and use a cellphone camera. If you're on the Craft Sr. plan, consider investing in one - you can usually put small business funding toward something like this because it's a business expense.
The old saying rings true here - practice makes perfect! A good way to practice is by taking lots for pictures of your own products, or take pictures of random things around your house. If you want to take it a step further, look at professionally-done pictures and try to recreate them. Also, the general rules of photography apply here, too, so taking a class or reading a book on photography isn't a bad idea.
Like we discussed earlier, having your own website is critical, regardless of which plan you're on. It doesn't have to be super fancy. For example, Google Sites is a great, free option that is very user friendly. If all you really need to do is set up a home-base for product display and contact information, this may be the platform for you (especially if you're on the Craft Jr. plan). However, if you're looking for something for advanced, you may want to look for web hosting platforms. The benefit of these is that you can start an online store complete with payment and shipping options, create a custom URL, and have more say over the user interface. The downside is that these are usually paid options, and the knowledge barrier can be high.
From Step 5:
"Another option when launching a website is using a web hosting platforms. Companies like these, for a fee, offer services in building and maintaining a website and make the website accessible on the World Wide Web. URL's are usually customizable, which is good, but they can feel amateur and empty if you're first starting out. Some popular platforms are BlueHost, GoDaddy, and WordPress. They vary largely in price and plan, so it's worth doing some research. This article from DreamHost can help you decide which platform is right for you."
This article from Digital.com is a really comprehensive guide on what you should include in your website.
Marketing can be really complex. People go to school for years to understand marketing techniques, but it can be simplified for your purposes.
It's really important to have a strong brand identity. A good place to start is to think back to your ideal client from Step 2. What do they care about? Where do they shop? How would they decorate their home? Some examples of really strong brand identities can be seen on Headspace, Lululemon, and ASOS. Each of these brands have very different looks, connotations, and images. On Headspace, an app for mindfulness and meditation, they use calming and happy colors, and their art is happy and cheerful. Lululemon is an athletic brand, and their look is very clean, and shows images for athletic people wearing their clothes is active settings. Finally, ASOS is an inexpensive clothing brand marketed toward young people. Their clothes are low-priced and trendy, and their art shows young people having a good time. A good way to better understand brand identity is to look at your favorite brands - what do their websites, social media, or stores tell you about them?
One of the most popular ways to market your brand is on social media. This tool gives you access to people with similar interests, which is handy when selling a niche product. Something to consider when launching social media channels is researching where your target audience is. Different groups of people tend to gravitate to similar social media channels. For example, TikTok is very popular with young people right now, and the algorithm tends to push people who view similar content together, so that is super handy. Facebook is popular with older generations. Instagram is great for showing off product photography, and tends to attract more "artsy" people. This article from Aventi Group can help you make this decision.
Additionally, business cards can be a great tool. They are timeless, and allow someone to have physical piece of your business. You can make them inexpensively on Canva or Vistaprint. Make sure that your card design matches your brand identity. Make sure to include your name, your businesses name, your phone number, email, website, social media handles, and your logo, if you have one. Look for public bulletin boards or forums related to your niche. These can be great places to post your business cards. Remember to carry a few on you at all times - you never know when you could be talking to the right person!
Finally, word of mouth is really valuable. Telling your friends and family about your business can help spread the word!
Like we mentioned before, shipping can be complicated! For some, especially those in the Craft Jr. camp, avoiding it may be the best plan for you. Craft fairs and farmers markets are great places for in person sales, and Facebook Marketplace has a local delivery option, so consider those. If you're in the Craft Sr. crew, this article can walk you through the entire process.
As far as pricing goes, there is a pretty set structure that businesses have been following for a long time. The formula goes like this:
Time + Materials = Cost
Cost x 2 = Wholesale Price
Wholesale Price x 2 = Retail Price
Congratulations! You've launched your business, and you're a huge success! Now, it's time to tell your story. This can be done on your website, in a bio, or on social media. Regardless of where you do it, talk about your journey. Why did you do this? How did your business come to be? What challenges did you face? This is not only great for making people feel more connected to your business, but it can also inspire people looking to start their own business, as well!