F.A.Q’s of Selling Crochet
Starting a crochet business is exciting. Being able to work at home selling crochet is your dream, what more could you ask for? FAQ’s include Where do I start, Do I need a business license, Where do I sell, Where do I find crochet patterns and How much do I charge?
Your dream of working from home is finally coming to pass. Before you take that last leap of faith – being official – ask yourself these frequently asked questions.
1. Where Do You Start?
Start by coming up with your goals for selling crochet. Is it to supplement your income or do you want it to be a full-time business? How much product do you need to sell to meet your goals? Are you financially prepared to start and maintain a business? What is your schedule like? Do you have time to work your business and create your product?
2. Do You Need a Business License?
It depends on where you live whether you need a business license or not. You’ll need to check with your local government, your state government and then with the Federal government. Some states require both a business license and a home business license so do your homework. A good place to start is your city hall or your local small business association.
3. Where Do You Sell?
There are many places to sell both online and offline. People have been selling their wares at craft fairs and flea markets for years. You might consider visiting a couple of boutiques that cater to your market and set up a consignment relationship. Another option is to start an online shop. You can start your own website or join a selling site like Etsy or Artfire.
4. Where Do I Find Patterns?
Many designers will give you permission to sell the finished item from their patterns. You do need to give credit to the designer on your tags and on your website. Always ask before using a pattern even if the policy is straightforward on their site. It is not only a courtesy but the designer might have a directory of businesses that use their patterns which is a great way to get your name out there.
You can also find cottage industry licenses which give you the right to make and sell a specified amount of the pattern. Yarn companies are another great resource for crochet patterns – just be sure the copyright belongs to the yarn company and not the designer. It is always best to read the terms of use if you use someone’s pattern.
5. How Much Do I Charge?
This has been debated in the craft industry for years. Some people start out by setting an hourly wage and adding the cost of materials to that – then they multiply it by 2.
For example, if you make $8.25/hour [5 hours] and your supplies are $15 (remember supplies include shipping materials and promotional items like stickers and business cards) your total price should be $56.25 * 2 = $112.50.
Now I don’t know about you but that is pretty steep for some of the products I make. Eventually you’ll come up with a way to compensate for your supplies and time plus make a profit. It is a work in progress and as long as your customers know this and value your work, they will understand.
Prepare for Success with a Mentor
Preparing yourself before officially launching your crochet business will save you time and money plus many headaches. Still have questions? Contact your Small Business Association or S.C.O.R.E. which is a volunteer organization of business owners who mentor those who are just starting out.
About Sara Duggan
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