This is a guest post
Crafting is a rewarding passion, and many people have dreamed about turning their crafting passion into a small enterprise. It isn’t so surprising, though, because the handicraft industry has boomed so much over the past several years.
According to the Global Arts and Crafts Market Report 2019, the crafts industry continues to thrive and climb, mainly because more and more people are leaning into DIY home projects. Additionally, the global crafts market is expected to grow by 5.6 percent. It is poised to be worth over $53 million, from $38 million in 2019.
For the artisans and crafters, a DIY hobby or a passion project has the potential to generate an income because there’s the demand for it. So if you want to take your DIY project to the next level and start a small business, here are the steps to successfully making that transition.
Have a Game Plan
Starting a small business is not an easy task, and having a plan makes all the difference. All entrepreneurs need to carry out market research before actually launching the business. Analyze the market, define the target audience, and understand the competition.
Do not enter an already-saturated market where the product can easily get lost in the sea of similar items. Define what sets the product from the competition, what makes it unique, and how people will benefit from it. Do not enter the business landscape blindly, so draw out a solid plan before doing anything.
Sort Out the Technicalities
If a DIY project or crafting hobby is to become a business, then it needs to follow the formalities and protocols to make it one. Start sorting out the technicalities of a soon-to-be enterprise, and work on the following:
- Picking up a brand name
- Deciding on the structure: sole proprietorship or limited liability (LLC)
- Understanding the tax laws in one’s state
- Financial planning for the business
Set Profitable Pricing
Next, it is essential to set up a profitable pricing strategy. Factor in the costs of labor and materials and other things included in the business costs. Do not undervalue the hard work by setting a low price for the products, but figure out the best price that provides rightful compensation.
Work out a price that takes into account the materials, equipment, and labor used for the production of the products. Remember to add in a decent hourly wage and some margin at the bottom.
This may be a little tricky to maneuver, and there isn’t a universal pricing formula that can apply to everyone, but always remember to choose a sustainable route.
Sell Your Crafts
Now, for the exciting part: selling. Pick a platform, and start selling crafts online. People who sell homemade products have the benefit of selling their products online, which significantly widens the reach and market.
There are plenty of places to sell craft products online. There’s also the option to sell products via social media and other online marketplaces.
Think of It as a Real Job
Finally, consider the business as more than just a hobby. The goal is to monetize the passion, so stop treating it as a mere pastime; instead, think of it as a real job.
Carve a consistent work schedule to keep up with the demand and avoid backlogs. Make sure to keep the books, perform inventory, and file taxes. These may sound a little too much for one individual, but it’s an excellent start to have a great grasp of how to run the business more efficiently.
Moreover, make the time to study the niche further and the market in general. Look up the trends, and see whether they apply to one’s business. Research how to better serve one’s clients and give the product more distinction in the marketplace.
Parting Words
Turning a DIY hobby into a small business requires effort, determination, and commitment. Crafting is a fulfilling activity on a personal level. Most people even think of it as therapeutic.
But bringing the craft into the business arena opens a whole new world of challenges and opportunities. You can turn your works of art into cash, and it’s possibly one of the best and enjoyable ways to earn money.
Great information!! I’m trying to plan on doing something like this soon. Things have been quiet, so it doesn’t hurt to drum up new business, in another way. 🙂
Agreed! I think it’s a great idea.
During these times, it’s definitely nice to have different ways to make money. Turning something you love doing into a business is such a great idea!
I completely agree too.
I wish I had the talent and craftiness to make a business like that. Like anything else it takes hard work and dedication and if it is something you love it could really work
It sure does take lots of work, but fun at the same time.
great tips here- i have a friend that’s starting to get her business off the ground so ill share this with her
That’s always great to hear.
What a beautiful post to begin with. Setting one’s mind on something they want is the first step for sure.
Right! Great for anyone wanting to run a business for sure.
I know I buy from a lot of people on Etsy. I wish I were better at DIY but alas, I am not, so I pay others!
I hear of a lot getting from Etsy as well. That would be a good place to start.
How great to make money doing something you love! Sounds like the ideal dream job!
Right!
My daughter keeps wanting to sell something. 🙂 We’ve been doing a lot of thinking about what she could make to sell!
I hope she’s able to find something.
I’ve sold some crafts at craft fairs, but I’ve never sold them online. Some day I may try selling crafts online.
That’s always fun too.
I really enjoyed reading this post. These are really helpful tips. Looking forward to implementing some of them.
Glad to hear that.
It would be great to be able to turn something you do for fun, into a business and to be able to make money from it! I guess in a way, it is how I ended up blogging. We have a cricut and it would be cool to make some designs to sell.
I need to get a cricut. I think you could make so many items to sell with that.
These are great tips. I love to support small business and people just starting out.
I do as well.
My sister and her best friend are very crafty. I keep telling them they need to turn their hobbies into a business, maybe this will help convince them!
I love to see how crafty people can get. It’s amazing.
These are really great tips!! Thank you so much! I totally agree, turning your hobby into a small business needs proper planning, determination, and effort.
It can be so rewarding too.
I am a floral designer and struggle with putting a price on my designs for people. I enjoy making things for my church or for friends. I have a hard time with the business side of it.
I know how that can be too. When I turned hobbies in to a business, I had trouble with prices too.
Great tips! I have a friend whose hobby is creating handmade jewelry. And now she turned it into a business.
That is so great to hear.
People don’t often think about it like this and I don’t know why. If you love to do something it makes sense to try to make money from it.
I agree.
My friend asked me these day if i know an on-line job. But you just gave me a brilliant idea. She has a lot of hobbies that can transform into a job.
I hope she’s able to do that. I love seeing everyone be able to turn hobbies in to a business.
These are some smart tips. Turning a hobby into a business is a smart move for anyone in this economy. I will share this post with a few friends.
I completely agree. It’s great for anyone with a great hobby.
It really isn’t as hard as you think. Just remember to always have fun doing it.
Exactly.
Love all the information you shared! It’s definitely nice to have different ways to make money.
It sure is.
At least once a week my nine year old tries to turn something she’s doing into a business. She has the right idea though. Right now she’s making jewelry. I’m setting her up a website and she will donate half of the profits to the food bank.
That is so great! How wonderful.
These are great ideas! I am trying to earn some extra income from home too!
I think many of us certainly are right now too.
Always it will be fun to make hobby into business. Blogging is hobby, I want to expand that too.
I completely agree too.