7 Qualities of A Handmade Craft Business Idea

The new year may hold a lot of promises and hope for most of us. 

And as a long-term crafter, you may have thought about (finally!) letting go of relying on employment, taking on the reins, and starting your own handmade craft business.

"But I'm still unsure about leaving my 9-to-5, to be honest. The economy is so uncertain these days."

Worry no more, because the good news is you don't need to plunge deep into the world of a startup business immediately. 

You have the option to work on your handmade crafts part-time at first, before or after dinner, and during weekends. 

Having said all of the above, make sure that your handmade craft business idea has these 7 qualities in order to have the potential to thrive: 

(**DISCLAIMER: This blog post contains affiliate links. Every time you click on those links and make a purchase, I'll collect a commission.)

(1.) A Handmade Craft Business Idea Must Meet the Needs and Demands of the Market

Ideas for a handmade craft business must meet the needs and demands of specific groups of people. 

Why? Because everything boils down to people turning into customers. 

That's why you need to entice, convince, or persuade people to part with their hard-earned money by crafting products of good quality.  

The key is to set aside your ego and think about what people actually want or need, and not what you want, or think other people want.

To give you a head start, here are just a few ways to conduct a market study and do extensive research:

• Start scrolling through several social media platforms. Observe which handmade crafts get the most favorable response and volume of orders.
• Frequent weekend markets, bazaars, and craft fairs. 
• Drop by gift or souvenir shops. 
• Explore different pop-up stores or kiosks.
• Get in touch with organizers of events and parties, and ask which handcrafted items make for popular giveaways or souvenirs.

What about handmade crafts that are highly niched?

An example of a highly niched business idea is customized cupsleeve kits for KPop celebrities's cupsleeve events. 

BTS J-Hope & Suga
cupsleeve kits (Unofficial)
by Adore Hue

What's crucial about designing and customizing such kits is, as a crafter, you'll be highly likely to get a fairly huge volume per an organizer's order, even if the frequency might be irregular.

You need to go out, widen your network, and build your contact with numerous organizers of KPop cupsleeve events in order to assure of requests for customizing cupsleeve kits every month.

Another way to help stabilize your cash flow is to cater to the KPop-loving market by being familiar with handcrafted items for which members of fandoms are willing to spend. 

You can sew tote bags, design and print fan-made stickers and art prints (chibi-style is the most popular), bookmarks, "boyfriend" and "girlfriend" photos, keychains, chunky phone accessories, and button pins. 

Should a crafter consider seasonal crafts for a business idea?

You may also be considering business ideas like crocheting amigurumi for gift bundles for a baby shower, a house warming party, Valentine's, and anniversaries. 

Also, you may be concerned about the volume of sales if you wish to sell greeting cards, craft kits for occasions like children's parties or hen dos, and handcrafted products like Halloween decorations or ornaments for Christmas trees. 

While all these are examples of salable yet seasonal crafts, there are several ways to keep your small business afloat during off-season, when demand isn't as high. 

A crocheter or knitter can add other products, like scrunchies, coasters, pot holders, scarves, and plushies in bigger sizes. 

A crafter can supplement her craft kits with a scrapbook service (either physical or digital) showcasing photos of the children's party or wedding.

(2.) An Idea for A Handmade Craft Business Must Show A Competitive Advantage

It's a fact that the business of handmade crafts is saturated. As a crafter, you must come up with ways to stand out while meeting the demands of your market.

To illustrate, giving a framed caricature or cross stitched portrait used to be a unique idea for a gift, until a lot of artists and stitchers picked up on the trend. 

A good way for a crafter to set himself apart from caricature artists and stitchers would be to offer a photo rendered in diamond painting. 

She can further add services like doing a portrait of a client's pet, a favorite celebrity or athlete. 

A crafter can also pencil in a client's desired image onto fabric, and use the punch needle technique and have it framed within an embroidery hoop. 

(3.) A Handmade Craft Business Idea Must Be Scalable

Ever wondered why businesses need a 5-year or 10-year plan? Because a handmade craft business should be scalable in a sense that it needs to show growth potential.

(4.) A Handmade Craft Business Idea Must Have A Low Barrier Entry 

Depending on the type of crafts you plan to make and sell, you must be able to access raw materials, either through shopping at arts and crafts stores, or the hobbies section of a general merchandise store. 

Ordering craft materials online through apps like Shopee and Lazada is another option.  

(5.) You Must Be Able to Promote A Handmade Craft Business Idea, Even On A Shoestring Budget 

Marketing-wise, you can never compete with huge businesses and better known brands as a crafter. 

That's why to launch your handmade crafts business off the ground, you need to explore ways make your products known to your niche, or target customers.

Some of the least expensive ways is to come up with an official Facebook Page and Instagram account for your handmade crafts. 

All you need is to take clear photos of your handmade crafts and upload them, write a brief description along with appropriate hashtags (#).  

(6.) An Idea for A Handmade Craft Business Must Show Potential for Profitability 

As a crafter who's looking to make profit from a handmade business idea, several factors come into play. 

First, you need to compute your monthly overhead expenses, including utility and meals.

Second, how much are you willing to shell out during a certain period to buy raw materials for your handmade crafts?  

Sanrio Popmart-inspired
cute y2k phone strap
by babyrhian08

Third, if the creative process might be too complex, that you end up spending a lot of time crafting just one product, either simplify or streamline the process, or resolve to accept only pre-orders from customers.  

(7.) An Idea for A Handmade Craft Business Must Be Sustainable 

As a crafter who's looking to start a business, your idea must be sustainable. In its simplest term, sustainable means having the potential for long-term success. 

Even a business idea that's focused on seasonal products has the potential to be sustainable. 

Let's say you decided to customize or personalize gifts for different occasions -- birthday, Valentine's, Mother's Day, Father's Day, and Christmas. 

This business idea is sustainable because there will always be people celebrating their birthday everyday, Christmas every year, couples remembering each other on Valentine's and anniversaries, and adult children wanting to make their parents feel special on Mother and Father's Day.