How To Start a Craft Business

• 1). Consider what craft you plan to offer and who your buyers and/or prospective students will be. Plan the shop around their craft supply needs. Set up a list of goals with a timetable to stay on track. Acquire a shop location with adequate space. Have at least six to 12 months' rent set aside. Set up business phone, electric service and a one-page website.
  
  
• 2). Hire an accountant for bookkeeping. Apply for a state resale tax permit and a store permit from your town. Apply for a tax number from the Internal Revenue Service. Research companies that sell used racks, counters, cash registers, tables and chairs. (This can save you money.) Buy all shop supplies and merchandise wholesale when possible.
  
  
• 3). Set store hours and write a press release for the opening date. Offer special rates for groups of children, seniors, women's classes, a teens class or parent/child classes to interest consumers. Submit press releases to newspapers and free online sites such as Facebook, MySpace and Craigslist. Set up advertising and attend local business association meetings to make your announcement and network with other businesses.
  
  
• 4). Provide examples within the shop of what can be made with the supplies carried. Shoppers need to see ready-made samples. Label the samples with skill levels. Arrange window and interior displays to attract customers. Consider use of colors and samples for attractive displays.
  
  
• 5). Crafts in the United States is big business. The Craft & Hobby Association (CHA) holds a conference each year where wholesalers display new lines of merchandise geared toward all craft businesses. Craft business owners meet with sales reps and company owners to network and set up sales accounts. This is an important step for any business owner, and conference expenses are tax deductible. A company that sells supplies may sponsor or send a rep from their company to teach a class at your business free of charge.