How to Start a Business Selling Crafts & Handmade Goods

Are you passionate about creating handmade crafts and thinking about turning your hobby into a business? Many Canadians are drawn to the idea of making crafts to earn money. Whether you’re planning to sell art online, at local craft marketplaces, or through an online store, selling items handmade in Canada can be a rewarding experience. This blog focuses on how to get started, places to sell your items, and the types of handmade products you can offer.

Why Start a Crafts Business?

Starting a crafts business allows you to turn your creativity into a source of income. Many people are drawn to handmade products because they appreciate the time, effort, and artistry that goes into each piece. Plus, there’s a growing movement toward supporting local artisans, especially with the rise of Canadian handcrafted goods.

Not only can you turn your hobby into a profitable venture, but starting as a side hustle can allow you to test the waters without a significant investment upfront. In Canada, many home-based businesses begin this way, slowly growing into full-time enterprises.

What Type of Crafts Can You Sell?

Many successful businesses create unique products that resonate with customers. The possibilities for what you can create and sell are endless. Here are some popular hand craft ideas:

• Home Décor: Items like wall art, custom signs, and decorative pillows are always in demand.
• Jewelry & Accessories: Handcrafted jewelry, scarves, and hats are popular among shoppers looking for unique pieces.
• Personalized Gifts: Monogrammed items, custom prints, and personalized stationery are great for gifting.
• DIY Craft Kits: For those who enjoy crafting, offering kits that include all the materials they need can be a profitable venture.
  

No matter what you decide to create, the key is to find a niche where your skills and passion align with consumer demand. Do some market research on handmade crafts trending in Canada to give you an idea of crafts that make money in your area.

Consider joining craft marketplaces like Etsy, where “handmade in Canada” is a popular category. Having an Etsy shop can make it easy to start selling online, and your online business can showcase your handmade products to a global audience.

How to Get Started With a Craft Business

1. Create a Business Plan

A business plan is essential, even for a small home-based business. Outline your goals, budget, production process, and how you plan to market your handmade products. Include where you’ll source your craft supplies and estimate your pricing. Starting with a clear plan helps you stay organized and ensures you cover all bases.

2. Register Your Business

The first step to opening your crafts business is to officially register your business. Registering gives your business credibility and can protect your brand name.

In Ontario, a Business Name Registration is the easiest and most affordable option. You can choose between Sole Proprietorship or General Partnership for small businesses. If you would like name protection, limited liability, and tax advantages Incorporation provides these benefits. Ontario Business Central can also help you set up your tax accounts to collect GST/HST sales tax.

If you’re wondering whether you can sell crafts without a business license, the answer depends on a few factors. If you are a business operating with a name different from your legal first and last name, you will need a business licence. Suppliers often require proof of business registration before agreeing to work with you. Similarly, you must show proof of registration to banks when opening a business bank account.

Registering your business can help to avoid problems later, and Ontario Business Central can assist you with the process. We have over 30 years of experience helping entrepreneurs navigate the business registration process. Our expert team ensures your business is set up properly from day one. We offer a seamless online registration portal that allows you to register your business quickly and easily.

3. Start as a Side Hustle

Many successful crafts businesses begin as side hustles. This lets you try out your product, brand, and marketing strategy without the stress of needing full-time income right away. As you build your customer base and find profitable crafts, you can scale up your business over time.

4. Choose Your Sales Channels

An important consideration is how and where you’ll sell your handmade items. Here are a few options:

• Online Marketplaces: Etsy is the go-to online craft store in Canada that users trust for handmade marketplace sales. It offers an established audience and easy setup. Other platforms include Shopify, and Amazon Handmade.
• Local Fairs & Markets: If you’re interested in connecting with local customers, selling at Canadian craft stores, farmers markets, or pop-up shops can be a great option.
• Own Website: Building your own online shop gives you complete control over your brand and customer experience. You can use platforms like Shopify or WooCommerce to create a user-friendly site. Don’t forget to set up a domain name, and Ontario Business Central can help you secure that for your new business.

Where to Sell Your Crafts

There are several great places to sell your crafts, whether you’re operating a home-based business or a fully-fledged operation. Here are some top options:

• Etsy: As mentioned, Etsy is a popular handmade marketplace for selling handmade crafts and artisanal marketplace products. With Etsy, you can easily set up an online store and start selling online immediately.
• Local Craft Markets: Many Canadian cities hold regular craft markets, especially during the holiday season. These are ideal for handcrafted products and give you a chance to engage with your customers directly.
• Social Media: Platforms like Instagram and Facebook allow you to market and sell your products directly to your audience. Creating a strong brand presence on social media can drive traffic to your online shop and local events.

Tips for Growing Your Craft Business

As you start your craft business, here are some tips to help you succeed:

• Offer Free Shipping: Many online marketplaces and customers value free shipping. While this might seem like a loss, you can adjust your pricing to cover the costs and attract more buyers.
• Brand Your Packaging: Create a memorable experience for your customers by using branded packaging. It’s a simple way to stand out and encourage repeat business.
• Stay Organized: Keeping track of your inventory, orders, and finances is crucial. Consider using digital tools to streamline these processes.
• Keep an Eye on Trends: The craft market is always evolving. Stay up to date with popular craft projects to make money to ensure your products remain desirable.

Ready to Launch Your Handmade Goods Business?

Starting a business selling handmade crafts in Canada is a fantastic way to turn your creative skills into a profitable venture. Whether you’re making crafts to sell for a local fair or creating home decor items for an online craft store, the opportunities are endless.

With the right planning, a solid business foundation, and the help of Ontario Business Central for business registration and tax accounts, you can set yourself up for success. Ready to get started?

Contact Ontario Business Central today to learn more about how we can help you launch your craft business.

inquiries@ontariobusinesscentral.ca
Toll-Free: 1-800-280-1913
Local: 1-416-599-9009
Fax: 1-866-294-4363
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Monday – Friday E.S.T.

Ontario Business Central Inc. is not a law firm and cannot provide a legal opinion or advice. This information is to assist you in understanding the requirements of registration within the chosen jurisdiction. It is always recommended, when you have legal or accounting questions that you speak to a qualified professional.