What should craft businesses consider when first starting out?
Planning, planning and more planning are essential when first starting out to make a successful business from the start-up. Think:
- Do I need to register my business?
- Do I need insurance?
- Have I got a niche?
- Have I got a budget for set-up costs?
Once you have established your plan, that’s when the fun starts!
Trying different markets and events to showcase your work can help you to find where your products sell best and which are your customer’s faves, whilst also building up a presence. Start spreading the word about your business and shout about it! Customers don’t just come to you.
Use social media to advertise your business and showcase your products – this is a fantastic way to learn about your demographic and gain more presence.
What kind of craft businesses are popular?
There are many popular crafting businesses, including furniture upcycling, soap making, pottery, card making, screen printing, candle making and many more. If you are an avid and passionate crafter, pinning down which crafting business to set up can be confusing, as you could be really good at a lot of crafts!
Finding what you are most passionate about and love doing could be a perfect starting point. Once you have established your business niche, you can add more products to your portfolio once your business has gained momentum and the cash is rolling in.
Our top tips for new craft businesses
- CREATE A BUSINESS PLAN
When starting a new business, you’ll likely get carried away with the fine details, leaving no room for planning.
Building a business plan is a great way to get some perspective on your new business and will be beneficial in the long run.
We have created the following points. They guide you in the direction of what a business plan should look like:
- An executive summary
- A brief description of your business
- A mission statement
- Competitor analysis
- Financial projections
- Finance options for loans or investments
- Budgets
- Cashflow
Your business plan is a must-have in your new business. It’s a compass, guiding you through your business venture.
- GET THE RIGHT INSURANCE
Don’t put off getting insurance. It’s one of the most important steps to follow in creating your crafting business.
Before you start selling your products to the public, you should have your craft insurance in place; this will cover you during your production process and protect you from damage or theft, which can be extremely expensive and damaging for small or start-up businesses.
At CraftCover, we treat every crafter differently; we create bespoke craft policies to meet your specific business needs, including Public and Product Liability Insurance and one-off insurance to cover markets and events.
If you’re unsure how to sell your crafts legally, you can read our dedicated blog on that to help!
Get Your New Craft Business Insured
- DEVELOP YOUR BRAND
Once you’ve developed your business plan and have your bespoke insurance package in place, you can move on to the more exciting branding side!
Start considering the type of aesthetic you want to promote and a style that will represent you too. Having a mission statement will guide you, including what and who to appeal to, what your brand means and your brand goals. Collate design ideas, as this could benefit if you expand or take on external help.
- DECIDE WHERE YOU WANT TO SELL
Having a good understanding of different platforms to sell and showcase your work will benefit you. Many crafters choose only to sell crafts online, as this can be simple and convenient for themselves and the buyer.
Selling your crafts in person at craft fairs is a fantastic way to get to know your customers and build relationships. Be mindful that you will need craft fair insurance covering you if anything happens whilst you are selling to the public in person.
For more information on your insurance needs, contact a friendly member of our team at CraftCover.