How to Start a Craft Business That Makes You Money in 2025

17 de enero de 2025

John Modi

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John Modi, chief imagination officer at MakerFlo Crafts, blends creativity with over 15 years of e-commerce expertise. A lifelong artist and entrepreneur, he specializes in techniques like sublimation and UV printing to help crafters turn hobbies into successful businesses. Known for his quirky, fun style, John is passionate about empowering makers through creative branding and community.

You're creative and enjoy the act of creating beautiful things. As a kid, you may have preferred art class over gym or math or had a knack for upcycling your old things.

And now you're reading this article because you want to start a craft business. You're ready to graduate from crafting as a hobby and become a bonafide business owner, making money from your skills.

If you're nodding your head right now, you're in the right place!

In this article, I'll share how to start a craft business in 5 steps, drawing from my own background in the craft industry and the experiences of thousands of craft businesses in our MakerFlo crafting community.

We're not just sharing random theory here! We (Marc and myself) have the experience of starting and growing our own craft business before starting MakerFlo Crafts, so we're excited to share our hard-won learnings with you.

No time to waste! Let's talk about how you can start your own profitable arts & crafts business this year.

How to Start a Successful Craft Business in 5 Steps

Here's what we'll cover in this guide:

Find a Business Idea
Set Up Your Business
Assemble Your Supplies
Start Selling
Grow Your Business

#1 - Find a Business Idea

In order to build a successful business, you need to know what products you're selling, who you're selling them to, and how you'll sell your products to those people.

We don't recommend that you wake up one day and decide to start a business. You'll be better off if you take some time to look around and find a good idea first.

Steal these tips for finding a business idea:

Look at what people are buying and selling in your market (aka your local area or online platform of choice)
Figure out what you're passionate about. If you love what you're making, you'll naturally want to get better and people will feel your enthusiasm. If you don't love it, your enthusiasm will start to fizzle out over time.
Listen to what people are complaining about when it comes to products and crafts they buy (See if you can solve those problems and create something better). If you focus on providing solutions to the people you want to serve, it will be easier to succeed.
Look at what's trending and what people are talking about to find new product or design ideas

If you find an up-and-coming type of craft, a new design idea, or a type of customer who isn't being served yet, that's a huge business opportunity for you.

Next, you'll also want to figure out how much money you'll need to invest to set up and run your business. Factor in the cost of your time as well. Understand what people are paying for your craft type, and how much you could realistically earn.

If you're not sure what kind of craft business to start, check out our beginner's guides on these profitable craft types first:

We've also queued up these articles to help you find a good business idea:

With an idea in hand, it's time to set up your legal business so you can start selling.

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#2 - Set Up Your Business

Woman writing documents with a calculator on her desk

Before you can legally sell your stuff, you'll need to set up a business entity.

Set Up a Legal Business

The steps can vary depending on where you live and how you want to operate your business, but resources like the Small Business Administration or your local Small Business Development Center (SBDC) can help. You can also talk to a business attorney if you need more specialized help.

Start Collecting Receipts

Once you set up your business, you can start deducting expenses from your taxes. Consider tax write-offs like:

The rent or utilities for the part of your home you use as an office
Any supplies or materials you buy for your business
Equipment you buy
Advertising and marketing costs
Shipping costs
Professional fees to people who perform services for your business
And more!

The important thing is to keep clear records of your purchases and to be careful to only deduct things that you've truly used for your business. We are not legal experts, so this is only a suggestion and not to be taken as legal advice. Contact a local business accountant to be sure that you're doing taxes correctly.

Decide a Business Name

Of course, you'll also need a good name for your business. We've gathered more than 500 different craft business name ideas, tumbler & cup business name ideas, and laser engraving business name ideas to help.

Brainstorm Branding

This is also a good time to think about your branding, though you don't want to waste too much time here. Please don't spend hours on a logo; spend that time making and selling instead.

Figure Out Some Basic Business Policies

It's also smart to determine your terms of service as soon as possible. These include:

Your accepted payment methods
Order processing time (how long people can expect to wait for a product)
Policies for custom orders (what people can and can't request, the timeline for producing a custom order, etc.)
Shipping options & costs, which shipping carrier you use, how you handle international shipping
What happens if a package is lost or damaged
Your return or exchange policy (what you accept and what you don't, how you refund money or handle exchanges, how much time they have to return an item, return shipping costs)
Copyright issues, if you have the copyright to your designs or not
Liability—be clear that you are not responsible for damages or injuries that come from the use of your products

Put these terms & conditions on your website or product listings and in order confirmation emails if you sell online. If you're in person, have these in print where people can see them. It's also good to have contact information easily visible on your website and be ready to respond to questions via email, social media, and other methods.

Hashing this out ahead of time will save you from future headaches (and lost money). Your customers will know what to expect before doing business with you. (And you can always tweak these over time.)

But with business policies, keep this in mind: Your business will grow when customers are satisfied. That's why we recommend planning your policies with your customer in mind. These aren't just here to protect you, but they're really to make sure your customer has the best possible experience. So think how you can make ordering easy, manage their expectations, and fix any problems quickly while still helping them get what they want.

Next, you're ready to assemble your supplies and equipment (if you don't have them already) so you can get to the best part… making!

#3 - Assemble Your Supplies

Set of MakerFlo 40oz powder-coated tumblers for laser engraving in every color

If you don't already have your supplies and equipment ready, now is the time to start gathering them.

Where should you buy your supplies?

It depends on how much you're planning to grow your business. If you're just starting out and experimenting, or if you're planning to stay small and make things for a few friends or family members here or there, you can start with affordable products from places like Target, Walmart, Amazon, or even Temu.

But if you're planning to grow your business and make a steady income from it, you'll want to find a reputable and reliable supplier.

If you buy from Target, Walmart, Amazon, or Temu, you may find good products, but the options are changing all the time. You might get something good one time, then the product changes and suddenly it's not the same anymore. Or your product might come damaged, and there's no one to contact for help.

That's why it's best to find a reputable supplier who is committed to YOUR success and making sure you get what you need, when you need it, without any damages, and that the supplies you get are always the same, high-quality item.

That's what we do at MakerFlo Crafts! Our products are carefully designed and tested with the craft business in mind. We maintain the same items so you can create a consistent product line. We ship quickly and with care, and our team is ready to help troubleshoot any problems. Check out our products for laser engraving, sublimation, epoxy and UV resin, and tumblers here!

Make sure to calculate your cost of materials and your time so you can set the right prices for your products. (Now, that doesn't mean you can charge whatever you want, but you do want to be profitable!)

We hope to create more resources to help you price your products, because we know this is a tricky area to figure out.

If you're looking for product recommendations, we have a bunch of articles that can help you find products for each craft type:

Laser Engraving

Sublimation

Others

#4 - Start Selling

Sam from MakerFlo Crafts does a demonstration with customers at a trade show

At this point, it's time to do your best, make things you think people will want, and start selling them! Alternatively, you can take custom orders and make products to order.

Where to start selling? Members of our crafter community have suggested these places to start:

Craft shows & events
Local stores and malls
Taking orders from friends and different groups in the community (like sports teams, real estate agents, retirement homes, etc.)

Here's our #1 tip for starting to make sales. People like to do business with people. Don't be a faceless company. Show yourself, let people know who you are, and interact with people. Help people to get to know you, so they like and trust you. And provide them with good service.

We love to think, how can we make this a seamless experience for our customers? How can we make finding products, buying, and using them as fun and easy as possible?

Giving your customers a good experience is really all it takes to start getting those first important sales in your community or online.

Now, here are our best articles to help you learn how to sell your creations and make that dough!

And let's be real. This is the hardest part of the journey. If you're feeling overwhelmed, that's a sign that you're doing the right things. Don't give up!

From here, it's a process of trial and error as you discover what you enjoy making, what people pay for, and how to sell your crafts for the most profit.

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#5 - Grow Your Business

Woman smiles at camera while working on the computer

You're doing it! You've got your business set up, you're selling stuff, and you're learning what works and what doesn't. You're slowly finding your niche and making some money here and there. 🤑

From here on out, it's time to grow your business and your profitability.

You'll do this by slowly figuring out what products sell best, streamlining your production, finding ways to save time and money, increasing your prices, and (simply) selling more stuff!

One big tip we have for marketing your business and getting more people to notice and remember your business is to share your story.

We've found that sharing our story as MakerFlo Crafts has helped us to build deeper connections with our customers. Plus, those customers remember us the next time they need craft equipment and supplies!

Try it yourself: Practice your origin story and be ready to share it with customers at your next pop-up or event. Write it out and share it on your social media and website, or print it out on a poster and post it at your next craft fair.

Here are some articles we've written to help you continue to grow your business and bottom line:

Final Thoughts

You can do this! Just start where you are and focus on your very next step. We're cheering you on every step of the way 🥳

Now before you go, join us in our Official MakerFlo Facebook Community with thousands of other craft business owners (and our team) who can answer your burning questions about starting your business! We'll see you inside 😊

Finally, if you're looking for amazing deals on craft supplies and equipment, make sure to join our mailing list below. We send out incredible sales exclusively to our mailing list all year round 💌

Frequently Asked Questions

Is a crafting business profitable?

It definitely can be! It's always a risk when you're starting a business, and success is not guaranteed. Consider if you're really passionate and willing to see it through until you find success.

What do I need to start my own craft business?

You need to set up a legal business. Then you need to buy equipment and supplies. Finally, you'll need a good business idea and the will to work hard until you succeed!

How can I legally sell my handmade products?

You'll need to set up a legal business with your state. (See more details above.) If you're making food or beauty products, there are more legal restrictions you'll need to follow.

What is the most profitable craft to sell?

The short answer: The most profitable craft is one that your market wants the most! There's no simple answer to this question. You'll need to figure out where you're selling, who you're selling to, and what needs or desires haven't been met yet.

What is the easiest thing to sell?

The easiest thing to sell is the thing you're most passionate about. If you're passionate, people can feel your enthusiasm and will be more interested in buying from you. That said, if you're getting into this to make a quick buck, this probably isn't a great path for you. If you really love crafting and are willing to work at it to succeed, you can make it work. But running a business is never easy!

What handmade things are in demand?

That depends on your market! If you want to sell online, check Etsy. If you want to sell locally, look at other craft shows, craft markets, and what people around you are buying and selling!

How can I compete with cheap prices like those on Temu and similar marketplaces?

You can compete on price, but you'll be fighting with these low-price companies to win low-paying customers. Instead of competing for the lowest price, serve the people who want high-quality items and are willing to pay a good price for it. If you are creating things that are truly unique and people want them, you can price your products high enough to be profitable for you. Temu and Amazon can't give the same level of customer service and care that you can. You can provide reliable good service, and that's a huge advantage for you.

How can I compete with big companies like Target or Walmart that also make similar items?

Don't try to be like Target or Walmart. They make more generic items that everyone likes. You'll need to find something different that the big stores aren't making. At the same time, Target and Walmart are always changing their products, so if you can consistently create what people want, they will learn to go to you instead of hoping that the big-box stores have what they want. And one big advantage you have is customization! You can create custom products, and the big stores cannot. Yes, there are a lot of ways you can differentiate yourself from bigger stores and still capture your part of the market.