Start A Craft Business
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Thanks to the abundance of information from books, magazines, and the internet, anyone can easily learn a craft. Today, many American households participate in crafts and hobbies. Most people make crafts for fun or stress relief, but when properly developed enthusiasts can turn their craft into cash.

Maria Edwards co-owns Edwards and Catacutan, a home based jewelry business. She believes crafting for profit is an excellent option. "Most people think crafts are simple diversions for women and children…not a legitimate way to make an income. Since I started in the eighties, the crafts industry has grown at a rate which exceeded my original expectations."

Here are the major aspects of starting a home based crafts business.

Make Up Your Mind
Decide to pursue your craft as a legitimate business venture – not just a hobby. Edwards says: "I feared not being good enough. There were so many other crafters who were better. Then I also noticed there were so many who were worse."

Some craft enthusiasts are wary of selling their handmade items. They make excuses like:

• "My crafts aren’t good enough."
• "I'm not good at selling."
• "What if I fail?"
• “I don’t have the time.”

• Market Analysis:
  Research potential competitors both locally and on the internet. This will reveal whether your market is already flooded with similar items. If so, create a plan to set yourself apart from the competition. For example, you can offer faster shipping, unique designs, or excellent customer service.
  
  
• Production Plan:
  Identify the materials and supplies needed to produce your crafts. Also, determine where you’ll obtain these supplies. When starting out, create a plan to produce your crafts efficiently. You’ll want to avoid making huge quantities of one item because it may not be a top seller. Test each item in the marketplace before committing to producing more.
  
  
• Cost Analysis:
  Many crafters make the mistake of either under or over pricing their wares. Although a cut and dry formula does not exist, Charles says he considers the following: "I take into account materials, labor, overhead, taxes, and profit. Depending on my clientele, I experiment with the value of my products and adjust accordingly."
  
  
• Business Operations:
  Select the hours you’ll devote to your business each week. Of the hours selected, devote specific blocks of time to production, marketing, and administrative tasks. This ensures an adequate balance in your business operations.
  
  
• Income Goals:
  Estimate your start up costs and create a five year income projection. Income goals motivate you to continue working, especially in the beginning when sales may trickle in slowly.

• Art & Craft Fairs And Festivals:
  The four main festival venues are: street fairs; juried art and craft shows; shopping malls; and flea markets. Street fairs typically offer food, entertainment, and crafts. Juried art and craft shows involve a selective application process. Shopping malls periodically host craft exhibits, especially during the holidays. Flea markets display many types of products, both craft and non-craft.
  
  "I’ve made extraordinary profits from fairs and festivals," Edwards says. "However, take into account the event’s popularity and expected traffic. I try to figure out how many other crafters sell similar products and where they'll be set up. Booth location is important."
  
  
• Home Shop And Studios:
  You can also set up a shop in your home. Check with local zoning officials on their requirements. To advertise a home based shop, donate items for raffles or send special invitations to local clubs and organizations offering them a "private showing." This will spread the word about your store.
  
  
• Open Houses:
  If a home based shop doesn’t appeal to you, host an occasional open house at your home. Open houses are a great way to resell to regular customers. Invite a select list of customers to see a product display. Again, check with local authorities.
  
  "Get your nerve up and try a home sale," Charles advises beginners. "It'll give you the chance to know people you wouldn't meet otherwise and it's better than selling at fairs because you have the undivided attention of your customers without all the work."
  
  
• Party Plans:
  Find a hostess whose home you can utilize for a party and send invitations to the hostess' friends and family. For a party to be profitable, you will need at least ten people to attend. During the party, display product samples and take orders. You can deliver or ship the products after the party. Also, encourage customers to book their own party. This will expand your customer reach.
  
  
• Local Retailers:
  Study small retail businesses in your community and note what sideline merchandise they offer. If you believe your product line fits with a particular retailer, show the owner or manager how they can profit from your product. Potential businesses include gift shops, floral shops, clothing stores, and beauty shops.
  
  
• Businesses:
  Many businesses, like realtors and banks, need employee or client gifts. Select one item from your line which you could make in quantity and at a reasonable cost to buyers. Then contact some local businesses and make an appointment to discuss their needs.
  
  
• Schools:
  Speak with school administrators and show how your products will benefit the teachers (make holiday shopping easier) or the school (donate a percentage of sales to a school fund). Pushcart merchandising: Many shopping malls offer pushcarts for rent. The rent is typically high but you won't compete with other crafters. As an added bonus, profits may be higher because thousands of people visit shopping malls every day.

• Etsy.com:
  Etsy is a website designed for crafters. They charge both a listing and transaction fee. However, Etsy is well known to those looking for hand crafted items. You may find other crafters selling similar products so your market analysis will come in handy when selling through Etsy.
  
  
• Ebay.com:
  Although Ebay is well known for auctioning, you don't have to auction your crafts. You can sell them at a set price. Like Etsy, it has a listing fee and takes a percentage of each item sold. Ebay offers merchants the opportunity to open an Ebay store for additional fees.
  
  
• HandmadeCatalog.com:
  Handmade Catalog is one of the original online craft markets. They have a selection of merchant packages available. The most affordable package costs only $4.95 per month or $40.00 per year (if paid up front). HandmadeCatalog.com is indexed by all the major search engines and many small ones. Items listed on their site are searchable on froogle.com, Google's shopping network, shopwiki.com, and thefind.com.
  
  
• ArtisansMarket.com:
  Artisan’s Market charges merchants $10.00 per month (or $100 per year up front) and ten percent of sales. You will receive 90% of your sales once a month. If you don't mind the delay in payment, this would be another good place for your crafts.