How To Start A Craft Store

How To Start A Craft Store - Background Info:

A craft store is an enchanting business for everyone involved. The multi-billion dollar craft store industry just continues to grow, and each craft store is unique.

There are really not too many industries that can claim this feature, but the craft store reflects the particular owner's skills and talents.

A craft store can sell any of a wide range of products and gifts, so the first order of business is to decide exactly what you want to sell.

Most people who decide to start a craft store know exactly what they want to sell. A craft store can cover a lot of territory including products such as homemade gift cards, gift baskets and flower arrangements. When you browse the internet you will find a craft store selling candles, picture frames, pottery and a host of other products.
What makes a craft store so enchanting and so appealing to so many people is the fact unique products are being sold. The seller gets to practice his or her craft. The buyer knows he or she is purchasing an item that is not mass produced. This adds a special quality to a craft store purchase.

There are several ways to open a craft store. You can work out of your home and sell your craft store products locally. You can also choose to build a home-based business craft store which relies primarily on web based selling. Of course, you can decide to sell both ways if you desire. You could also operate a storefront though this is the most expensive proposition.

Like any business, you should dedicate specific working space for your craft store. A craft store requires room for making and storing the final products.

You will also need storage space for the craft store supplies. For example, if you are making gift baskets you will need to decide what types of items will be included in the craft store baskets or what items you are willing to custom order.

How To Start A Craft Store - Tasks And Skills Needed:

Business Specific Tasks:

If you are planning to do all the business tasks or hiring or subcontracting tasks, here's a list of tasks that need to be attended to when it comes to the business side of running a craft store business:

Bookkeeping

Inventory Control

Retail Sales

General Office

Website Maintenance

Industry Specific Tasks:

Same as above if you plan to do everything yourself or get help, here are some of the tasks necessary to operate a craft store business:

Accounting

Advertising/Promotion

Classes/Instruction

Sales

Price-marking products

Shipping/Receiving

How To Start A Craft Store - Approximate Daily Hours Needed:

General Hours of Operation: - When your business is open - Craft stores hold retail store hours which generally run Monday through Friday with shorter hours on weekends.

Hours Needed to Prepare - Before Opening and After Hours Activities - Order inventory, clean store, recordkeeping, bank deposits, customer service call-backs, class signups.

Number of Employees Needed To Run This Business:

Minimum Number of Employees -During the Start Up Phase: You can start this business yourself on a full-time basis.

Number of Employees - Once Your Business is Up and Running Successfully:

Website maintenance

Record/Bookkeeping

General office

Customer Service

Sales

Teachers/instructors for different craft techniques

Shipping/receiving

Commercial cleaning

Ordering of inventory

Skill Requirements for This Business:

Good in sales

Great communication skills

Knowledge of a variety of crafts and how to get started in each area

Outgoing and friendly personality

Patience when teaching crafting techniques

Ability to participate in craft shows

Licenses:

In order to start your own craft store, you will need to create your products. The first step, of course, is to get a business license. Even if you decide to sell online, you should get a business license and a resale tax number for the purchase of supplies for your craft store.

It is also important to buy the right kind of insurance if you plan on delivering your crafts locally. You will need business insurance which covers your inventory and business use insurance on your car.

Approximate Minimum Start up Cost:

Bare essential: - The average startup cost is approximately $5,000 for stock and store overhead.

Minimal exposure - There are several ways to advertise for free online as well as offline by becoming a member of network groups, newspaper and radio advertising, and participating in craft shows where you can hand out flyers and business cards.

Necessary Equipment to Run this Business:

Necessary Start-Up Equipment & Supplies:

Computer

Printer

Cell phone

Website

Storefront

Craft supplies and books

Supplementary Equipment: - Equipment or helpful products that you can acquire to once your business is off and running:

You can expand to carrying different types of crafting materials as you grow.

You can provide framing services.

Tables and chairs/class space

Warehouse for excess inventory

Television with DVD/CD capabilities for showing 'how-to' techniques or presentations or laptop

Monthly Expenses To Consider:

Wages
Phone/cell phone
Internet access
Permits
Advertising/Marketing
Electricity
Water
Supplies
Display cases
Shelving units

Special Requirements and Considerations For This Business:

Find out all you can about the trends in the industry. Know your competition, in particular, their strengths and weaknesses. This will help you identify your competitive advantage. In other words, this will help you figure out what you can give your customers that they're not getting from the other businesses. And keep from emulating the competition's strategy. Instead, make the most of your own advantage points.
A craft store business is like any other business in another way. The craft store income and expenses need to be carefully tracked. When establishing a work area for your craft store, be sure to also dedicate a corner for your record keeping.
Before you begin selling products from your craft store, you will need to establish your method of delivery. If you are selling your craft store products locally, you can deliver your sales yourself. If you are planning on selling your craft store products online, it will be necessary to establish an account with a delivery service such as the post office or a private delivery carrier. It will be important to keep plenty of shipping supplies on hand.
Creating a marketing plan for your craft store products is necessary if you want to promote sales. Finding customers is a top priority once you have your office and work space in place. There are a number of ways to find customers.
- Hand out flyers with a description of your products
- Purchase online ads such as banner ads or pay-per-click links
- Attend craft shows
- Hold craft parties
- Offer business discounts to corporate offices
- Sell products to other craft stores
- Contact local businesses
For many people, a craft store offers a way to earn money while also providing a creative outlet. This unique blend of business and art is probably a major reason why the craft store industry continues to grow by leaps and bounds.

Craft Supplies

Pros And Cons of Opening A Craft Store Business:

The Pros of Running a Craft Store Business:

Fun business venture

Allows you to meet all kinds of people in your community

Simple to create specialties and niches

The Cons of Running a Craft Store Business:

May have to work weekends

Crafting interest can decline with a slow economy

I can be difficult to price items to what the market with bear and be able to profit

Type of Customers You Need to Attract:

You are looking for people who enjoy hobbies and crafting of all kinds such as in the needlearts, woodworking, oil painting, miniature making, clay and pottery.

You will find many of your customers locally and online through various hobby clubs, senior centers, and schools.

Craft Store Business Statistics:

Check Business.com or the U.S. Department of Labor for current statistics and revenue for different types of crafts and craft opportunities.

Craft Store Business Resources:

Industry-Specific Websites:

Crafting the Web

Start a Craft Store

Discount Crafts and Florals

Equipment and Supplies:

Factory Direct Craft

Darice

Craft Supply Directory

Forums:

Craft Forum

Craftster

Get Crafty

Index of Craft Forums

Franchises:

Franchise Genius

Associations:

CHA

Craft Central

Books:

Become a Craft Store Owner

Books on Amazon

Software:

Craft Central Station

Businesses To Related to a Craft Store Business:

Button/badge making
Selling promotional items
Teaching crafts
T-shirt business