How to run a craft business

This step-by-step tutorial will teach you how to start your own craft business in the United Kingdom or the US. First determine your market niche then create a business plan. Find out which legal structure is best for you and choose your suppliers carefully. Make a decision about where you’ll sell your products and always keep your focus on opportunities for the future.

Do you need a license to sell crafts?

In most cases, craft licenses are not necessary in all places. A license is required for businesses that are not situated in your home, for example. The best thing a small business can do is open an account registered with HMRC and begin trading that way.

How Do You Start A Home-Based Craft Business?

Be certain there is a market for your product.  

You must research demand before starting a craft business.  Your product line should also be unique to differentiate yourself from others in the market. 

The importance of knowing your clients needs and wants cannot be overstated.

It’s best to go with names that have a lot of brand potential for marketing purposes. You want to have an identity that people will remember.

Keep your online assets secured and get hold of the best website name you can afford.

Check to see if your selling strategy is working and attracting the audience you have targeted.

Good photographs of your products are very important. It is worth investing in a basic lighting system and brushing up on your shooting skills. 

Is It Necessary To Register a Craft Business?

If you are running a business you’ll need to register for Self Assessment and declare any profits from your craft company on your tax return. In the United Kingdom, most craft enterprises are conducted by single proprietors, however some craft entrepreneurs set up limited companies as well. As a business owner, having HMRC on your side will also make things easier. As a self-employed individual, you must ensure you are responsible for paying your taxes. It’s unlikely that you’ll be allowed to work lawfully as a craftsperson without a license. If you expect to make a profit, you’ll need a business license in almost every country.

Many craft enterprises operate as sole proprietorships due to their low liability risk. Sometimes this means the business name may need to be changed, however. If you live in the US contact a state or county agency if you want your name to be registered. You should be able to find the state information you need on the where and how to register for a DBA in each state page. If you run your craft business as a sole proprietor in the US, you must pay self-employment taxes. According to US official data, there are 12 different rates. The Social Security and Medicare taxes are both 4% and 2% respectively. The Medicare tax rate is currently set at 9%. To calculate these taxes and account for them with the Internal Revenue Service, use Form 1040 SE.

How Do I Sell Handmade Crafts in the United Kingdom?

There are many websites which you can use to sell your producsts on. These include sites like Etsy, Bubble or Redbubble

You can also use Amazon Handmade which is a section of the site specifically dedicated to craft products.

Other sites include Depop, a peer 2 peer e-commerce site for fashion and crafts.

You should of course make your own personal webpage which you can sell from directly or link to the sites listed above.


Types of crafts

Ceramic, Clay, pottery and crafts.


A personalised greeting card 

A tote bag pattern 

Making personalised T-shirts