Growth & Customers

How to start a craft business in the UK

Thinking of turning your passion into a job by setting up a craft business? Find out everything you need to know to get set up, from validating your idea and writing a business plan to choosing where to sell and registering with HMRC.

Published 5 August, 20269 min read Share

Mastering your craft requires plenty of talent, dedication, and practice. 

But if you’re wondering how to start a craft business and turn your creative skills into a full-time job or a side hustle, you’ll need to get to grips with a whole other skill set: how to actually run a company. 

After creating our quiz on small business readiness in the UK, we discovered that just under a third of people (31%) want to start an arts business but currently lack the skills and confidence to do so. 

If that sounds like you, we can help you change that. Brush up on those business skills and you could go from an occasional hobbyist to a successful artisan business owner. 

Key takeaways

• Craft is a viable route into self-employment with unusually low barriers to entry — around 11,620 UK craft businesses contribute £3.4bn to the economy, and marketplaces like Etsy, Folksy, and Not On The High Street give you global reach from day one.
• Validate demand before you spend anything — browse marketplaces for similar products, talk to independent shop owners at fairs, and survey potential buyers; a healthy number of competitors is a good signal rather than a warning.
• Most craft businesses can start for £200–£500 if you already own your tools — the bigger variables are specialist equipment, a website subscription, craft fair pitch fees, and public liability insurance at roughly £50–£150 a year.
• Most makers register as sole traders, which is free and light on admin — a limited company gives more legal protection but brings filing and reporting obligations, and either way you register before you start trading.
• Get the admin right from the first sale, not the fiftieth — separate business banking, records of all income and expenses, and roughly 20–30% of profits set aside for tax will save you an unpleasant surprise at year end.

Here’s what we cover:

Is starting a craft business worth it?

Starting a craft business in the UK is a genuinely viable route into self-employment, and it’s easier to do than ever.  

Recent statistics from the Creative Industries Council show that around 11,620 craft businesses in the UK contribute £3.4bn to the economy, and platforms like Etsy, Not On The High Street, and Amazon Homemade mean you can reach buyers around the world from day one. 

The business model is flexible, too, because you can start small as a side hustle and scale up over time or build something full-time from the outset. Either way, the barriers to entry are low, and the demand is real. 

How do you research demand for your craft product?

The quickest ways to research demand for your craft product are browsing online marketplaces, visiting local craft fairs, and running a simple survey.  

It’s worth doing this before investing significant time or money, because even the most beautiful product won’t sell if the demand isn’t there. 

Here’s how to do just that: 

• Browse online marketplaces: search for products similar to yours on Etsy, Not On The High Street, or Amazon Homemade. A healthy number of sellers in your category is a good sign. 
• Visit craft shops and fairs: see what’s selling locally and strike up a conversation with shop owners; they’ll often tell you honestly whether your product would sell. 
• Run a simple survey: use a free tool like Google Forms to ask potential customers how often they buy products like yours, where they buy them, and what they’d pay. 

Where can you sell your craft products?

Craft businesses in the UK typically sell through online marketplaces, their own e-commerce website, craft fairs, or direct sa to independent shops. Many actually use a combination of all four. 

Online marketplaces 

There are many online craft marketplaces around today. Etsy is the best known, with around 60 million buyers every year. It’s worth exploring other platforms too, like Folksy, Crafty Fox Market, or Crafter’s Market.

These marketplaces all target specific niches and may be a better fit depending on what you sell, so always try to browse a variety of sites to see which one is right for you. 

Your own e-commerce website 

Having your own website means selling direct to the customer and keeping all your profits. Website builders like Shopify make this straightforward, even without technical skills. 

It’s worth considering once you have an established product range and some initial customers. 

Craft fairs 

There are thousands of craft fairs taking place across the UK every year, and these events are a great place to test your products, meet customers face to face, and build a local following. 

You can often find craft fairs listed on Facebook, or you can use a website such as Eventbrite to find events in your local area. 

Selling direct to craft shops 

Independent high street craft shops are often open to stocking new products. Visit the owner directly and bring samples—a face-to-face conversation is often far more effective than an email. 

How much does it cost to start a craft business?

Starting a craft business in the UK can cost as little as £200–£500 if you already have your tools and materials.

Costs rise if you need specialist equipment, a website, or market stall fees, but it remains one of the most accessible types of businesses to start on a tight budget.

Item	Estimated cost
Materials and supplies	£100–£500
Etsy shop setup	Free (listing fees apply)
Your own e-commerce website	£10–£30/month
Craft fair pitch fee	£20–£150 per event
Branding and logo	£0–£200
Photography equipment	£0–£300
Business registration (sole trader)	Free
Business registration (limited company)	£100
Public liability insurance	£50–£150/year

Costs will vary depending on your craft, your sales channels, and how quickly you want to grow. Many craft business owners start small and reinvest early profits into equipment and marketing. 

Do you need a business plan for a craft business?

Every craft business benefits from having a business plan before starting to trade. It doesn’t need to be complicated, but it should set out what you’re selling, who you’re selling to, where you’ll sell it, and how you’ll make money. 

Your craft business plan should include: 

• What products you’re selling and what makes them stand out. 
• Who your target customers are. 
• Where you’ll sell: online marketplaces, your own website, craft fairs, and/or direct to shops.
• Any additional services, such as made-to-measure orders or teaching workshops. 
• Your pricing and financial goals. 

How they did it: Listen to our Sound Advice podcast (or read the transcript) for our interview with Autumn Rabbitts, founder of creative cake-making studio Plumb and Rabbitts. 

How do you start a craft business in the UK? A step-by-step guide

To start a craft business in the UK, you’ll need to validate your idea, register with HMRC, set up your sales channels, and build a basic marketing presence. 

Most people can complete all of these steps before making their first sale—and many do it alongside a full-time job before going all in. 

Here’s what to do: 

Research demand for your product  

Browse marketplaces like Etsy, visit craft fairs, and survey potential customers before investing time or money. Look at what’s already selling, what customers are saying in reviews, and where there might be a gap you can fill.

A healthy number of competitors is a good sign—it means the demand is there. 

Choose your business structure  

Most craft businesses register as sole traders, which is free and straightforward and requires minimal admin.

A limited company offers more legal protection and can look more professional, but it comes with additional responsibilities around filing and reporting.

HMRC’s business structure guidance can help you decide which is right for you. 

Register your business  

Sole traders register with HMRC for Self Assessment; limited companies register with Companies House for around £50.

Either way, you’ll need to do this before you start trading, and if you’re selling on platforms like Etsy, they may ask for your tax details, too. 

Handle your admin  

Open a dedicated business bank account to keep personal and business finances separate, keep records of all income and expenses, and set aside roughly 20–30% of profits for your tax bill.

Accounting software from Sage can help you stay on top of this from day one and avoid any nasty surprises at the end of the tax year. 

Build your brand  

Choose a business name, create a simple logo, and make sure your packaging and product presentation are consistent across every channel.

First impressions matter, especially on visual platforms where your products are competing with thousands of others. Investing a little time in your branding early on pays dividends as you grow. 

Set up your sales channels  

Start with online marketplaces like Etsy to test demand with minimal upfront cost, then consider building your own e-commerce website via Shopify or Wix once you have an established product range and some early customers.

Craft fairs are worth adding to the mix, too, because they’re one of the best places to get direct feedback and build a loyal local following. 

Build your marketing presence  

Set up social media profiles on the platforms your customers use. Instagram and Pinterest work particularly well for visual crafts.

Take high-quality product photos, post consistently, and start collecting reviews from your first sales.

Word of mouth is powerful early on, so make it easy for happy customers to share and recommend your work. 

Start selling and reinvest  

Start small, learn what sells, and use early profits to grow your product range, improve your branding, and invest in better equipment.

Most successful craft businesses grow gradually, so don’t feel pressure to have everything perfect before your first sale. 

Are you ready to start setting up a craft business?

Your passion for your craft will carry you a long way, but setting up a craft business on solid foundations is what turns a hobby into a sustainable income.

Research your market, get your admin in order, and build your presence one step at a time. 

Ready to find out how prepared you are? Take our business readiness quiz to get a personalised view of where you stand and what to focus on next. 

Frequently asked questions

 

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