Crocheting might begin as a creative outlet, but it can evolve into a business. That’s how it happened for Genna Tatu, who became “hooked” after receiving a crochet kit for Christmas.
After crocheting as a hobby, she launched CrochetByGenna, a six-figure business selling crocheted stuffed animals and downloadable patterns. While she started her business accidentally, she has scaled it while avoiding burnout.
Read on to learn how to start a successful crochet business, with advice from Genna.
Products crochet businesses can sell
There are many different types of crochet businesses you can start. Here are a few ideas:
Handmade crochet items
If you enjoy crocheting sundresses, throw blankets, and doilies from start to finish, this might be the right business model for you. It is labor-intensive because you make everything by hand, so make sure you choose something you love to make.
For Genna, this was amigurumi (Japanese crocheted stuffed animals). “I know other people are getting into amigurumi because it’s hot right now, but I personally just did it because I love making stuffed animals,” Genna says.
With this type of business, you must balance growth with sustainability. While she was excited about her business, Genna realized she could only do so much and had to set a cap on how many orders she could receive.
Even then, she still sometimes has a hard time preventing burnout. “I was like, ‘How is my business going to grow? How am I able to expand it and sustain long-term growth?’” she says. “That’s where crochet patterns came in.”
Crochet patterns
Once you create a digital product like a pattern, you can sell it many times over. Adding patterns to your offerings can help increase passive income from sales without adding more work.
With Shopify, you can use the Digital Products app: When a customer places an order, they automatically receive a link to download the asset, which means you don’t have to do anything else to fulfill the order.
“[Patterns] are passive income, which is key in a market like crochet where it is so manually intensive for you,” Genna says.
Genna uses social media to call for volunteers to beta test her patterns to ensure they’re easy to follow. When she’s confident the patterns are ready for her customers, she posts them on her website and promotes them on social media.
Crochet kits
Craft kits are another product your crochet business could sell. Create crochet boxes that include all the tools buyers need to complete a project, such as a pattern, the right amount of yarn, and hooks.
You can sell one-off kits or get inspiration from the brand Hooks & Needles, which sells a monthly subscription box with three to six patterns and the yarn needed to complete them.
Crochet instruction or classes
To share your expertise with beginner crocheters, set up a Shopify store and use a booking app so customers can schedule one-on-one or group classes with you.
One passive income idea is to sell educational materials like ebooks, prerecorded classes, and online courses on demand. Similar to selling patterns, this business model allows you to create an asset once and sell it many times over with digital delivery.
Crochet supplies
You can also choose to sell a curated selection of yarn, hooks, crafting scissors, stitch markers, tape measures, pattern books, and other crochet supplies.
Brooklyn General Store sells crochet supplies and patterns alongside knitting and sewing materials, both online and at their brick-and-mortar location.
If you’d like to eliminate up-front inventory costs and shipping logistics, you might consider a dropshipping business model.
With Shopify, you can find dropshipping suppliers on the Shopify App Store. Or you can try Shopify Collective, which connects you to other Shopify businesses who are dropshipping suppliers. These brands ship their products when a customer places an order on your website.
How to start a crochet business
- Decide what you want to sell
- Conduct market research
- Decide where to sell
- Register your business and get permits
- Price your products
- Develop your brand identity
- Create a marketing plan
- Set up your online store
Follow these eight steps to move your love of crochet from hobby to business:
1. Decide what you want to sell
The first step is choosing what you want to sell when you launch. If you’re selling handmade items, you’ll need to decide if you’ll make items to order, have items readily available, or plan limited drops.
“When I first started out, I was just doing plushies. I was a made-to-order shop,” Genna says. “Now, I’ve kind of gone to the other side of selling plushies through drops. I sell whatever I have made over the course of about two months. I’ll list it on the website for sale and people can buy it, and I’ll ship it out immediately.”
2. Conduct market research
Market research is the process of gathering and analyzing information about your potential customers and competitors. Your findings should validate that there’s demand for what you want to sell, and it will inform your pricing strategy.
You can start by referencing data from online marketplaces like Etsy to understand how much competitor businesses are selling and if customers are happy with their products.
For example, an individual Etsy shop displays total sales, average customer rating, and customer reviews; all useful competitor data to learn from as you build your business.
Genna also recommends getting involved in the crochet community. Ravelry is a good place to start.
3. Decide where to sell
The next step is to decide where you’ll sell your products. You can sell through an online store using an ecommerce platform like Shopify, use an online marketplace like Amazon Handmade or Etsy, sell at local craft fairs or markets, or approach local craft stores about carrying your crocheted products.
Genna started on Etsy. “Etsy is a platform that’s very easy for you to dive into. It’s pretty low risk,” she says.
Platforms like Etsy and Amazon Handmade don’t require you to create a website, and your product listings become instantly searchable to their built-in audiences.
However, they don’t provide the opportunity to build a unique brand through a shop design or custom visual identity. There’s also no customer data, which can help you prioritize and plan marketing campaigns.
Some platforms, including Amazon Handmade, also don’t let you sell digital products. Eventually, Genna wanted more control over her business, so she launched a Shopify store.
“I opened my Shopify store a year after having my business on Etsy,” she says. “With Shopify, you can customize everything. You can make it exactly how you want it. It comes off more professional when you have a standalone website.”
Genna still sells on Etsy to reach the widest possible target audience.
If you want to sell at in-person markets, browse those markets to see what kinds of items and price points other sellers have. For markets, Genna recommends selling less expensive items that are quick and easy to make.
“Maybe it’s no-sew, very easy to make in bulk, and something that would sell at a low price point,” she says. “At markets, people like buying the cheaper items.”
4. Register your business and get permits
Next up are the formalities of creating a business. A business with one owner is a sole proprietorship by default. Sole proprietorships are treated the same as their owners for legal and tax purposes: you’ll report your business income and deduct business expenses on your personal tax return.
You also have the option to create a limited liability company (LLC) for your business. A limited liability company is a business entity that’s legally separate from you, which can protect your personal assets from debts or liabilities incurred by the business.
With either option, you can decide what name you want to operate under and register your business with your state. If you’re a sole proprietor but you want to choose a unique name for your business, you’ll register a “doing business as” (DBA).
If you choose to form an LLC, you can register it under any business name not currently taken. Note that most states require you to include “LLC” at the end of your business name.
Finally, check your secretary of state’s office for any applicable business license requirements.
5. Price your products
Planning your finances is an important step in starting a profitable business. Genna set up two different pricing structures for her business.
When it comes to pricing her patterns, Genna mainly looks at competitor pricing. “I really like to look at the market,” she says. “I like to go on Etsy and search up similar patterns. I go see what the competition is doing and then place myself within the average. A very expensive pattern, while you earn more money per pattern, is not going to capture as many buyers.”
When it comes to pricing her plushies, there are more considerations. “I do try to break even,” she says. “I take into account the cost of materials and how long it took me. Some people like to add in another factor, like, ‘I want to get paid this much an hour.’”
When calculating your expenses, remember to include the cost of shipping and shipping materials (if you aren’t passing that directly on to the customer in the form of a shipping fee).
You may also factor in your overhead costs, which could include the equipment you use to make each item, expenses related to your website, and even the extra money you spend preparing your business taxes.
Add those costs up for the year and divide by 12 to get an average monthly overhead cost. Then divide that cost by the number of sales you expect to make per month. This is your approximate overhead cost per item, which you can incorporate into your pricing.
Revisit these numbers every few months as expenses change and/or you discover seasonal patterns in your sales volume.
6. Develop your brand identity
Think of your brand identity as your company’s unique personality. It includes your business name, logo, typography, color palette, and voice and tone.
A strong brand identity represents your work and influences how you communicate with your customers. For example, if you sell crocheted baby clothes and other baby items, you might select pastels and a playful tone of voice. Meanwhile, if you make cottagecore doilies and table runners, you might opt for a more vintage aesthetic.
Toni Lipsey, founder of TL Yarn Crafts, wants her brand to be accessible to beginners. She accomplishes this by speaking to her primary audience casually and honestly, just as a friend would.
For example, one of the thumbnails on her YouTube channel reads, “How to read crochet patterns for real this time!” The thumbnail taps into the confusion and frustration crocheters experience when learning to read patterns and promises to explain it in a way that’s easy to understand.
For CrochetByGenna’s branding, Genna channels coziness, creativity, and positivity. “I’m passionate about spreading the magic of crochet and turning joyful ideas into the cutest crochet plushies and patterns,” she says.
Genna says her brand identity took shape naturally because she wanted to create positive content that welcomes everyone. To create a brand identity, Genna suggests that business owners “do some self-reflection and ask themselves what the main mission of their business is, what values guide their work, who their audience is, and what they want to provide to their customers.”
7. Create a marketing plan
A marketing plan outlines how you will reach your customers. It includes your marketing goals, primary selling points, and key marketing channels.
Here are a few marketing ideas to try:
Run ads
When Genna began her business, her priority was to make sales and build a reputation, even if she wasn’t making a profit, so she started by running digital ads.
“I did invest in ads from the start,” she says. “I always tell people, ‘Invest in marketing up front.’ This is the way you’ll get your initial sales. That’s how you build your shop’s reputation. You build credibility and then people will come back to you.”
Offer discounts
Offering discounts is another way to get people to buy your products. “In the beginning, it is not about profits; it’s about making those sales,” Genna says. “I ran a lot of sales on my shop, like 25% off, 30% off. Slowly, over time, I was able to increase the prices, take away the incentives, and then really just go from there.”
Post on social media
Social media can help you grow your brand. Genna started on marketing on Instagram, posting consistently to build an audience of followers.
You can share new products, updates on crochet events you’ll attend, and other types of content. Process videos are popular on Instagram, TikTok, and YouTube because people often find it interesting and even soothing to see how things get made.
Use videos to connect with your audience
Genna wanted to connect with her audience in a more personal way, so she started a YouTube channel. This decision has paid off.
“YouTube opens up a whole new world, a whole new audience,” Genna says. “On Instagram, people saw my products, but I found it’s very important to connect with you as the business owner, the person behind the business. YouTube is a really important and great platform if you want to further connect with your audience and build a community.”
Putting yourself out there can be intimidating, but Genna encourages just going for it. Start small and slowly include yourself more in your social media.
“I definitely am a shy person,” she says. “Eventually, it will get easier. The first time I shot a YouTube video, I was like, ‘How do people do this? This is so weird.’ Over time, you just get more and more natural, but you won’t be able to get to that point if you don’t try.”
8. Set up your online store
While starting on a marketplace like Etsy might help get your items to market quickly, building your own website helps you establish your brand, boost your online presence, and strengthen your credibility.
Here are a few things to keep in mind while setting up your store:
Consider the user experience
Ecommerce user experience (UX) entails creating a seamless, enjoyable shopping experience in an online store.
Ecommerce UX includes:
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Load time: How quickly your website loads across devices
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Website navigation: How easy menus are to navigate and how it affects the user’s experience
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Accessibility: If your store meets the latest standards for accessibility to people with disabilities
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Responsive design: If the website functions properly on all devices, including mobile and tablet
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Copywriting: How effectively your website copy conveys information and represents your brand
The ecommerce platform you choose should let you create a good user experience without spending too much time or money.
Take high-quality photos
Whether you sell patterns, supplies, or wares, product photography shows your goods in their best light. Aim for crisp images taken from different angles, so that customers easily understand what they’re buying.
You don’t need a fancy camera or expensive photo editing software; you can DIY your product photos using your smartphone and then use Shopify Sidekick to transform the product image background. Sidekick is included for free with Shopify plans.
Make your shop listings useful
As a crochet business, your product pages help customers understand and appreciate the uniqueness—and price point—of your products, especially those who don’t crochet or who are new to the craft. For example, if you sell handmade items, you can include information about the quality of materials and the techniques used to make it.
“Vendors get a lot of backlash, like, ‘Why is this turtle $50?’” Genna says. “Well, it took a lot of time and effort. It can’t be mass-produced. I handmade it. I’m just one person. Crocheters understand that, but from an outside perspective, they’re like, ‘Oh, isn’t it $20 at Walmart or something?’”
If you sell yarns and hooks, you might explain what types of projects those materials work best for. If you sell patterns, you can also follow in Darn Good Yarn’s footsteps and include a yardage calculator, yarn suggestions for different patterns, and customer reviews.
Reviews are especially helpful to learn the difficulty of a project or how well made it is. You can download an app (like Judge.me) through the Shopify App Store to start collecting customer feedback and reviews.
How to start a crochet business FAQ
Do you need an LLC for a crochet business?
You don’t need to form a limited liability company, or LLC, to sell crochet products. Many small craft business owners operate as sole proprietors, or solopreneurs, although you might consider a DBA to operate your business under a different name.
A legal adviser or tax professional can help you understand the pros and cons of forming an LLC versus operating as a sole proprietorship.
Can I start a crochet business from home or do I need a separate workspace?
You don’t need a separate workspace to start a crochet business. Many crochet and craft business owners operate out of their homes.
Should I focus on selling online, in-person at markets, or both?
Many crochet business owners sell products online and in person. Selling online can allow you to reach a larger customer base and minimize the inventory you need to hold by allowing made-to-order projects. Selling in person can help you form personal connections with your target market and grow local brand awareness.
Is a crochet business profitable?
A crochet business can be profitable. Some skilled crochet enthusiasts have turned their crochet businesses into their full-time jobs. Standing out from other makers with unique products, making a connection with your audience, and creating a solid marketing plan can help you create a profitable crochet business.
Do you need a license to start a crochet business?
Business license requirements vary by state, county, and city. Before selling your crochet items online or in-person, check local regulations.
