Business Advice

Starting a Craft Business in the New Year

With many people seeing the new year as a fresh start, there comes a time for new and exciting opportunities. If you’ve been thinking of starting a craft business, the new year is the perfect time to make your dreams a reality.

At CraftCover, no matter what craft business you wish to start in the new year, we can provide the correct level of cover to suit your business needs.

Why should you start a craft business in the new year?

The new year is a great time to start new hobbies, as well as expanding your current skill set. Turning current hobbies into new business ventures has become a viable stream of income for many crafters.

Starting a business is a great way to encourage yourself to set new goals, and make achievable short-term milestones.

Many people view the new year as a clean start, which is why it is a good idea to create a plan for your desired business in November or December that you can stick to when the new year rolls around.

This way, you can set your new year off with a bang, reaching small achievable goals throughout the year.

Is it a good idea to set up a new craft business?

Setting up a craft business is a great way to join an exciting industry, especially if your business is based around a craft you love.

Many people dream of their hobbies making them a living. Craft businesses provide crafters the opportunity to keep enjoying their hobbies, all while having successful businesses based off the back of it.

Once you’ve found your niche and created a business plan, the next steps are to make your dream a reality.

Crafting trends for 2023

If your looking to expand your skill set to make trending crafts for the new year, some of the top crafts trends for 2023 include:

What to know about starting your own craft business

When you’re starting a craft business, the first thing you should consider is finding your niche. If you are unsure what route you wish to take, it can make the start up process much harder.

If you can’t decide on a specific niche, really consider the aims and ambitions of your business, as well as who you want your target market to be. This may help you decide which route to go by.

You should also be aware that it may take time to build your business, so if you aren’t getting in as many sales as you wish, try not to be disheartened.

Businesses can take some time to take off, which is why starting a craft business in the new year is a great time to start with a fresh, positive mindset.

How much does it cost to start a crafts business?

The cost of starting up your craft business may depend on the type of business you plan on creating. You should consider prices for the different materials you may need, such as equipment and raw materials.

For example, if you wish to start a pottery business, you may need to consider the prices of a turntable and the clay itself.

Other costs you may need to consider include:

  • Branding
  • Websites
  • Business cards
  • Electricity
  • Technology
  • Business insurance

Five tips to starting a craft business in the new year

Find a gap in the market

The first step in creating a craft business is deciding what products you want to sell.

Examine the industry you’re in and ask yourself: what kind of products would attract customers? If you’re looking to start a business with a new craft, it’s worth looking at craft business ideas to get an idea of which crafts you’re interested in.

For extra inspiration, you can use software such as Google Trends to discover what craft products people are talking about in your industry.

Create a business plan

When you’re starting a new business, it’s likely you’ll get carried away with the fine details that could be addressed later on.

To start, outline your plan by including the following points:

  • An executive summary
  • A brief description of your business
  • A mission statement
  • Competitor analysis
  • Financial projections
  • Budgets

Your business plan is a must have. Think of it as a compass that will guide you through your business venture, keeping you going in the right direction.

Get insured

One of the most important steps in creating a craft business is getting your business insured as soon as possible. You should have your craft insurance in place before you actually start selling your products to the general public.

At CraftCover, we create tailored business plans to meet your specific business needs, including both Public and Product Liability Insurance.

Without the correct level of insurance, you could be held liable should an accident happen due to your products or production process. This can be extremely costly and damaging for small businesses, especially if you’re just starting up.

If you’re unsure about how to sell your crafts legally, read our dedicated blog here.

Develop your brand

Once you’ve developed your business plan and got the correct level of insurance, you should start thinking about your branding.

Take into consideration your target market, the type of aesthetic you want to promote and a style that will represent you too.

If you’re unsure what branding you would like, make a mission statement outline who you want to appeal to, what your brand represents and the goals for your brand too.

This can help you collate design ideas, and it may be helpful for designers if you choose to hire external help.

Decide where you want to sell

You should consider where you actually want to sell your craft products. Many crafters choose to sell crafts online due to how easy and convenient it is for themselves and the buyer.

Popular sites to sell on include:

  • Etsy
  • Facebook Marketplace
  • Not on the High Street
  • Folksy
  • Depop

You can also sell your crafts in person at craft fairs, however, you should be aware that you will also need craft fair insurance to cover you should anything happen whilst you are selling to the public in person.

For more information, read our full guide on where to sell handmade crafts, or for more in depth information on starting your own craft business, read our ultimate guide to starting a craft business.