How to Make Money from a Handmade Craft Business

Introduction to how to make money from handmade craft business

For many people making crafts is a hobby. If you’re crafty and have an interest in making crafts you can get some extra money from home. But, have the time and space to make your craft items in larger quantities, there are a variety of items you can create to sell. In another way, it is a king of relaxation to provide handmade gifts to family and friends. But some people make an additional income by selling crafts, or some people even do it as a full-time job. Now, let’s see how we can make money from a handmade craft business.

Ideas to make money from a handmade craft business

Crafts to make and sell from home is a nice way to generate some extra income and, at the same time, receive recognition for your beautiful creations. There are thousands of crafts that make money. And if you’re a stay at home mom that wants to make extra money from home, why not find some money-making craft ideas?

What’s great is that you can do all of this at home! There is no need to go out for shows in your city to sell your crafts, even no need to go to craft fairs too.

Okay, let’s go through the business side of selling crafts and then go into the types of crafts that make money.

Ideas to start a handmade craft business.
Ideas to start a handmade craft business.

Let’s go through some easy ways to market your craft business to the right audience.

  • Have More Than One Place to Sell Your Crafts
  • Start Writing Blog Posts
  • Get on Social Media
  • Run Giveaways
  • Start an email list

You need to strategize, prioritize, and advertising, among other things like

Choosing your craft to make money from handmade craft business

  • See what sells
  • Follow your passion
  • Focus on quality
  • Estimate the cost
  • Be optimistically realistic

Selling your wares

  • Market your product and yourself
  • Sell online
  • Set up shop at festivals
  • Get your product into stores
  • Sell products out of your home

Choose your outlet to make money from handmade craft business


There are several options for websites to sell your crafts such as Amazon, Etsy, and eBay, but they will charge for displaying your crafts. And take a percentage of your earnings from anything you do sell.


Teaming up with local businesses, such as a coffee shop or bookstore, gives you a substantially different experience. ‘Sale or return’ offers will be available in most of the small or medium scale businesses which you can avail, this means they essentially borrow and display your stock in their shop, you have to collect it back if it doesn’t sell. If it sells, they will take a percentage of around 40%. Alternatively, they want to buy the crafts from you at trade prices so that they can make more profit when they sell.

Many factors determine whether a business will be successful or not but there are a few basic factors that must be in place for crafts to make money:

  1. Profits
  2. Demand
  3. Great Product

There are costs directly related to making your crafts like materials and labor as well as indirect costs that are just a part of doing business:

  • Registering your business
  • Business licenses & permits
  • Tools & maintenance of those tools
  • Trips back & forth to the post office and craft store
  • Electricity required to run your sewing machine for 8 hours straight
  • Craft show fees
  • Display fixtures for craft shows
  • Business cards
  • Hiring a graphic designer or web developer, etc

Among the various types of businesses, handmade craft ideas for business are ones that require a minimum dependency on others and external resources. Hence, if it is your first time starting a business and you are interested in crafts and handiwork, craft businesses would be perfect for you.

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Some trending crafts that make and sell have profits are:

  1. T-Shirts designer

This is quite easy if you are interested in such sort of stuff. Designing T-Shirts is easy if you know what the current trends and demands are. You can have quotes and pictures printed onto T-Shirts, and then sell them off at a higher rate than you bought the bulk from. If your designs are unique and attractive, then people will flock to your T-Shirts business and even recommend friends and family to buy from you. The only real requirement here is you being able to design good and creative designs on the T-Shirts and the T-Shirts themselves too must be of good quality.

  1. Jewelry

When working with items such as beads, threads, wire, leather, etc. material costs can be kept fairly low. Getting into high-end silver and gold can increase your costs but most consumers understand the value of 24 karat gold or sterling silver and are willing to pay more for the better quality.

Some jewelry making techniques can drive labor costs up, so it’s important to hone your skills, find processes that speed up production and not spend too much time in a month coming up with new designs that require a learning curve.

When working with the jewelry you can make earrings too.

Earrings are easy to make and look gorgeous with any outfit. From casual to date night look, earrings can change the look.

Here are some DIY earring ideas:

  • Tassel Earrings
  • Terrazzo Earrings
  • Wood Burned Earrings
  • Gold Nugget Earrings
  1. The toy making

This does not only mean creating toys in the traditional sense as in building toys from scratch from nuts and bolts. Instead, you could be creative and create toys from existing materials you already have. Or perhaps you could create masterpieces from standard toys. If it is that impressive, people will buy it from you. And of course, you could sell off old toys by revamping them and turning them into brand-new, but it all will require some craftwork and imagination to work out.

  1. Homemade candles

Making candles is an easy one to learn, and can get a nice profit. People never get tired from buying candles for their homes and as gifts, so purchase some wax and get candle-making for a craft that’s easy and profitable to make and sell candles on Etsy.

  1. Clothes designer

The main-stream business in this crafts is a clothes designer and you have to compete with big brands to make it a success. But with enough imagination and creativity, you really can design clothes that beat out the local competition. If the designs are good enough people will buy from you and recommend you to others, especially if you are offering your clothes at a lower price than the competition.

  1. Decorate mugs

If you have an eye for design and love to dabble in paint, why not decorate mugs and sell your craft for profit? It’s budget-friendly and the sky’s the limit on what types of designs you create.

  1. Art/Décor

By sharing your quirky or lovely creations or by making personalized wall decorations, you allow consumers to decorate their homes with distinct pieces. If you can create something with your thought is nothing but unique and you can market those crafts.

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Handmade wood crafts.
Handmade wood crafts.

People will love and enjoy special works that are unique to display in their homes and office. Art doesn’t have to be a painting. It can also include photographs, wall stickers, wall hangings made from fabric, and more. Further, it doesn’t have to hang on a wall. You can make some decorative items that sit on a table, showcase, or in a bookshelf.

  1. Painting

Starting a painting business is inexpensive.  If you have painted as a hobby, you can earn good cash by transforming your side interest to business. If you have ever hired a painter and given away a large sum for his labor, then you’ll surely concur that painting business is highly profitable. Not only having the option of painting houses or wooden furniture, if you have the skills of painting or sketching the features of your customers or requested faces then undoubtedly your earnings in this business can reach towering heights as people are willing to spend lots of money for their sketch or a picture.

  1. Costume designer

Who doesn’t love a good costume? Costume parties, Halloweens, etc. all require a good costume. While there are plenty of standard costumes available in the market, creating new and unique ones will spark interest from the public, and they will be interested in buying them.

  1. Sewing

Some of the sewing crafts can make you money. It’s dependent on the type of material used and how many items are cut out of a meter of fabric. In most cases, you can’t purchase fabric for less than $5/meter so if you can create two or more products from one meter and very few notions, your costs could below.

  1. Handmade soap

Soap is a fun craft to make, and it’s an easy thing to make and sell! You don’t need a lot of tools too. Making a soap may not be profitable in the beginning but mastering processes, reducing labor time, and buying ingredients in large quantities at wholesale prices, reduces costs per bar.

With a low investment, you can purchase materials and start making soap and creating unique DIY crafts to sell within the market.

Most soap businesses drive profits through volume so for a soap making business to be profitable selling $6 bars of soap, they must sell several bars per month.

Estimated cost and equipment to make money from handmade craft business

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The cost to start a handmade craft business.
The cost to start a handmade craft business.

The cost will vary for a different craft business. It will incur on the raw materials we need. For instance, raw materials for painting will be on different color paints and painting brush, obviously, it estimates less than $50. It might be more for jewelry business as it is based on metal we prefer. Since the remaining process will be with our own hands there will be nothing else.

If your business grows and you need to improve productivity, you might have to recruit a few people who are familiar with your business. Salaries added to your cost.

How to sell your items

Once your items are created, it’s time to sell handmade items online. Here are some tips to transform your crafts into money.

Price your items for profit. While you don’t want to overprice your goods, you want to be careful that you cover not only the cost of materials but your time as well.

Brand your items. You have to include your name, contact information, business name, website, and other details on a sticker on each of your items or a business card. If your customers want more, they’ll be able to get in touch with you.

Consider targeting a specific type of customer. Customizing your goods can take more time, but you can also charge more.

Tie into the time of year. While many of your items can be good at any time of year, you can boost sales by offering seasonal items such as Christmas decor or gift items, or making items for special occasions like wedding or birthday.

The pros of starting a handmade craft business

Starting a crafts business has a lot of benefits:

  • You can make money from your hobby
  • You can work from home, anytime whenever you want
  • There are many options if you want to sell your crafts online
  • You can develop your business by selling your crafts in local craft shows
  • You can use waste materials
  • You can improve the creativity and skills

The cons of starting a handmade craft business

Some of the challenges you need to face in handmade crafts business include:

  • It can be challenging to find the perfect market and target audience
  • Your products have to be of exceptional quality
  • You may get tired of making the same craft over and over again
  • Not noticeable by the market
  • The number of types of products you can make yourself is rather limited
  • Some process takes a lot of time, so it can be inconvenient


  1. It’s really amazing get to know about hand made craft business. Bcz I’m also verry interesting about hand crafts and I’m doing it as a hobby. This guidance lead me to start it as a new business.


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