How to start a crochet business: A step-by-step guide

Love crafting cozy blankets, playful amigurumi, or stylish accessories, but not sure how to go from hobbyist to entrepreneur? This guide is here to help.

We talked with real-life crochet entrepreneurs to find out how they are running their craft businesses online.

In this article, you’ll learn how to start a crochet business step by step, from choosing your niche and designing your product line to setting up your online store and marketing your creations. 

Even if you are a seasoned entrepreneur, this guide will make the process simple and achievable.

How to start a crochet business in 10 steps

1. Identify your niche

Start by reflecting on the types of projects you enjoy most and feel confident creating. For example, if you love making quick and satisfying items like hats or scarves, these could be excellent starting points. 

Alternatively, if you excel at intricate patterns, such as amigurumi toys or lace décor, these appeal to more specific audiences. Focus on items you can produce efficiently without feeling overwhelmed – after all, this business should complement your life, not take it over.

Next, think about your ideal customer. Who do you see buying your products? Amigurumi toys might appeal to new parents or gift buyers, while stylish accessories like crochet scarves or beanies could attract fashion-forward shoppers.

You can also cater to eco-conscious consumers by using sustainable yarns or creating reusable items like tote bags. The more specific your audience is, the easier it will be to tailor your products to their needs and market them. Take some time to understand who your customer is, what they value, and how your crochet products fit into their lives.

Mirai Knittery, for example, has found success by focusing on eco-conscious customers who value high-quality, handmade items crafted from natural fibers like cotton, silk, and wool. This niche not only aligns with their skills but also appeals to a growing demand for sustainable products:

Similarly, Constellation Crochet specializes in personalized plushies, offering custom designs that cater to customers seeking one-of-a-kind gifts:

2. Conduct thorough market research

Thorough market research will help you validate your product ideas and give you a clearer picture of your ideal customer. By identifying what’s already working in the market, you’ll set yourself up for success, ensuring that your crochet business meets real demand and stays relevant.

Handmade crochet items are particularly popular during certain times of the year, such as the holiday season or back-to-school periods. Pinterest and Google Trends are excellent tools for spotting these patterns:

Understanding these seasonal cycles can help you plan your product launches to maximize sales during high-demand periods.

For example, crocheted pumpkins or Christmas tree ornaments may see a surge in interest during fall and winter, while lightweight shawls or tote bags might be more popular in spring and summer. Consequently, crocheted toys are more likely to be popular all year round, as shown in our example above.

Look through Reddit and Threads to understand what the community is raving about right now.

“Threads especially let me communicate directly with customers, building a community around my brand. It’s a huge part of my success.” Eglė Šilevaitė, Curly Knits

3. Create a unique brand identity

Your brand identity is what sets your crochet business apart from others and helps customers remember you. 

Building a strong and consistent brand doesn’t require a massive budget – it’s all about authenticity and attention to detail. Think of your brand as the personality of your business, reflected in everything from your product packaging to your online presence.

Think of a memorable business name and logo

Your business name should resonate with your niche and reflect your style. 

Let’s say that if you focus on cozy home décor, a name like SnugStitches or Hearth & Hook could work. Brainstorm five potential names that reflect your niche. Share them with friends or online communities for feedback before finalizing your choice. 

Think about including crochet hooks, yarn, or patterns in your design to make your logo instantly recognizable. For example, Mirai Knittery’s logo incorporates the first letter of the brand and a ball of yarn in its design:

Free logo maker tools help create stylish logos without prior design experience. Read our guide on how to create a logo to learn more about what makes an impactful logo for a crochet business.

Define your brand’s style

The aesthetic of your business should appeal to your target audience. If you’re selling eco-friendly products, earthy tones and minimalist design might be a good fit. If your focus is on playful amigurumi, bright, cheerful colors could attract families and kids. 

Consistency across your product photos, social media posts, and packaging strengthens your brand identity and builds trust with customers.

Choose three core colors and two fonts to use across your logo, packaging, and marketing materials. This will help create a cohesive look for your brand.

Tell your story

People are drawn to brands with a relatable story. Use the About Us section on your website or shop to share why you started crocheting and what makes your products special, like Constellation Crochet does: 

For example, you might mention how crocheting helped you unwind after long days or how you’re committed to using sustainable materials. This personal touch creates an emotional connection with customers, encouraging them to support your business.

Write a short paragraph about why you love crocheting and what inspires your designs. Use this as the foundation for your brand’s story.

4. Design your product line for versatility

Creating a versatile product line is essential for attracting a variety of customers while keeping your workload manageable. For your business to be profitable and sustainable, you want to balance creativity with efficiency, offering enough variety to engage buyers without overwhelming yourself. 

Start small with a focused collection

Begin with two to three core products that represent your niche and skillset. 

Eglė from Curly Knits advises new crochet entrepreneurs to start small – this ensures you don’t waste time or money on products that might not sell:

“I created a few items, showed them to family and friends, and got feedback before expanding. It helped me focus on what people really liked.” Eglė Šilevaitė, Curly Knits

For example, if your niche is eco-friendly crochet, your collection could include reusable market bags, soft washcloths, and placemats made with organic yarn. A focused product line not only simplifies your workflow but also helps customers understand your brand.

Choose products that can be made in multiple colors or patterns. For example, a crochet tote bag can be customized in seasonal colors, such as pastels for spring or earth tones for fall.

Offer customizations

Accepting custom orders adds a personal touch that many customers value. For instance, allowing customers to request a baby blanket in a specific shade to match their nursery theme makes your business even more appealing.

Clearly list customization options on your product pages and specify any additional costs or lead times for personalized orders. You can also get started with a simple contact form on a dedicated Custom Orders page, as Constellation Crochet has done: 

Include digital products

One way to diversify your product line without increasing your workload is to offer digital crochet patterns. You can sell these patterns repeatedly with no additional effort after creation, making them a great source of passive income. 

For example, if you design an original pattern for a cozy hat, you can sell it to other crochet enthusiasts looking for their next project. Know Now, for instance, sells patterns for their reversible crocheted bag: 

Use tools like Canva to create polished, easy-to-follow pattern PDFs with images and step-by-step instructions. You can get started with the free version and upgrade to a premium plan later.

Plan for product bundles

Bundles encourage higher-value purchases by offering multiple items together at a slight discount. 

For instance, you could sell a set of coasters with a matching table runner or pair a baby blanket with a set of crochet booties. Bundles are particularly appealing as gifts, especially during holiday seasons or special occasions.

Experiment with one or two bundles and track customer interest. Highlight the savings buyers get by choosing a bundle over purchasing items separately.

However, when designing your product bundle, consistency is key. Ensure your bundles reflect your unique style and brand identity. For tips on branding your crochet products, check our tutorial on product branding.

5. Plan a profitable pricing model

Pricing your crochet products can be tricky, especially when balancing your time, materials, and desired profit. Your pricing should cover costs while rewarding your efforts without making your items unaffordable. 

Start by calculating the total cost of each product. Include materials like yarn, hooks, and packaging, as well as any platform fees if you sell online. Don’t forget to factor in your time – set an hourly rate that feels fair for your skills. For example, if a hat takes three hours to make and your hourly rate is $10, that’s $30 for labor, plus materials and fees.

Remember that handmade products often command a higher price due to their uniqueness and quality. If you’re just starting, you might offer introductory prices or small discounts to attract initial buyers, but avoid underpricing yourself – it’s important to value your work.

Finally, review your pricing regularly. If a product is selling out quickly, it might indicate room for a price increase. Conversely, if sales are slow, consider adjusting your pricing or highlighting the product’s unique features in your marketing. 

With a thoughtful pricing strategy, you can ensure your crochet business remains both rewarding and sustainable.

6. Manage legal and financial aspects of your business

Getting your legal and financial systems in place ensures your business runs smoothly and avoids potential pitfalls. Start by choosing the right business structure. As a part-time side hustle, a sole proprietorship might be sufficient, but if you want additional legal protection, consider setting up an LLC. 

Check your local regulations for selling handmade goods – you might need a business license, depending on your area. If you’re selling internationally, be aware of import and export regulations for your products.

Separate your business and personal finances to keep things simple and organized. Open a dedicated business bank account to track expenses, income, and profits easily. This also simplifies tax preparation when the time comes. 

Speaking of taxes, research whether you’ll need to charge sales tax in your region and ensure you’re collecting and reporting it correctly.

Remember to keep receipts for all business-related purchases and use accounting software or a spreadsheet to track income and expenses. Review your finances regularly to ensure profitability and catch potential issues early.

We recommend reading our tutorial on how to set up a craft business for more information on the legal and financial aspects of your crochet business.

7. Choose the right sales channels

Selecting the right sales channels is crucial for reaching your target audience and growing your crochet business. Choosing the right mix of online and offline channels ensures your products reach people where they are most likely to buy.

Social media sales

Social media platforms are more than just marketing tools – they are sales channels in their own right. Platforms like Instagram Shopping, TikTok Shop, or Facebook Marketplace let customers browse and purchase directly through your posts. 

Engaging content like product demos, behind-the-scenes videos, or customer testimonials can drive traffic to your sales page while making the shopping experience seamless. 

Pinterest can also be a powerful channel for directing long-term traffic to your store through visually compelling product pins.

Marketplaces

While platforms like Etsy and Amazon Handmade are often associated with online marketplaces, think of them as broader sales channels that connect you with audiences already searching for handmade goods. 

These marketplaces act as discovery channels, bringing in customers who may not find you otherwise. Treat them as entry points to your brand, where buyers can discover your products before becoming long-term customers on your website.

While many crafters used to turn to Etsy, Curly Knit’s Eglė noted its limitations nowadays:

“On Etsy, the fees are high, and competing with resellers is tough. That’s why I rely on Pinterest, Threads, and my own website to connect directly with customers.” Eglė Šilevaitė, Curly Knits

Direct sales

Direct sales involve engaging with customers face-to-face. 

Craft fairs, local pop-up shops, and community events are excellent sales channels for showcasing your crochet items and building relationships with buyers. 

These settings help you gather feedback, test new products, and make real-time connections with your audience.

Collaborations

Partnering with local businesses, such as boutiques or gift shops, can expand your reach. 

Selling through established stores or collaborating on exclusive product lines helps you tap into their customer base while strengthening your brand visibility. 

These partnerships can act as complementary sales channels, bringing in customers you might not reach through your own efforts.

Online store

An online storefront is your most flexible and scalable sales channel. 

By creating your own website, you gain complete control over how your products are presented, priced, and sold, without hidden fees. A dedicated storefront builds credibility and makes it easier for customers to explore your products without the competition of a crowded marketplace. 

“I created a website to connect everything – Pinterest, Instagram, and Threads. It’s like a home for my brand, and it looks much more professional.” Eglė Šilevaitė, Curly Knits

Use a website builder to create a professional store tailored to your brand. This will help you focus more on your craft and less on website logistics.

8. Set up your online store

When setting up your online crochet store, there are a few important things to focus on:

• Product descriptions. Your descriptions should clearly communicate what makes your items special – whether it’s the unique design, the type of yarn used, or the custom options available.
• Product images. High-quality images are essential when showcasing your crochet items. Be sure to photograph your products from multiple angles to highlight details like stitching and texture.
• Mobile responsiveness. A mobile-friendly store ensures your crochet creations are easy to browse and purchase, no matter what device your customers are using.
• Navigation and layout. A clean, intuitive layout is key to a positive shopping experience. A simple and well-organized menu helps customers navigate your store easily.

Using an AI-powered website builder like Hostinger Website Builder helps you focus on your craft instead of worrying about design or coding. For example, after uploading an image of your crochet item, use the AI to create a compelling product description for you.

Eglė from Curly Knits found Hostinger Website Builder to be a huge time-saver. For her, simplicity and efficiency were paramount, and the website builder gave her the tools to focus on what mattered most: her crochet creations.

Check out our step-by-step guide on how to build an online store with a website builder for more detailed instructions.

9. Develop a marketing strategy

A strong marketing strategy is essential for making your crochet business visible to potential customers and ensuring steady sales, even as a side hustle. 

Marketing doesn’t have to be overwhelming or expensive – consistency and creativity are key. Start by identifying where your audience spends their time online. 

Platforms like Instagram, Pinterest, and Facebook are especially effective for showcasing visually appealing, handmade products like crochet items. Use these platforms to post high-quality photos of your creations, behind-the-scenes glimpses of your process, and engaging content such as crochet tips or styling ideas for your products.

Content marketing is another powerful way to connect with your audience. By sharing your expertise through blog posts, short videos, or tutorials, you can position yourself as a trusted creator. Curly Knits shares tips and tricks on various techniques, as well as free patterns on their blog:

For example, you could create a quick Instagram reel showing how you finish off the edges of a blanket or write a blog post about the best types of yarn for beginners. Not only does this provide value to your audience, but it also subtly promotes your products. Including a call-to-action, such as “Check out our shop for the finished design,” directs viewers to your store without feeling pushy.

Seasonal campaigns are a great way to boost visibility and drive sales. Consider creating collections tailored to holidays or special occasions, such as heart-themed coasters for Valentine’s Day or festive ornaments for Christmas. These items often attract shoppers looking for unique, handmade gifts. 

Announce these collections in advance and build excitement by sharing sneak peeks or offering pre-orders. Additionally, you can incentivize purchases with limited-time discounts or free shipping offers.

Building trust with customers is an essential part of your marketing strategy. For example, Constellation Crochet uses customer reviews on its website to reassure new buyers of the quality of their work:

Engage directly with your customers and community. Respond promptly to comments and messages on social media to build trust and rapport. To increase your visibility, you can also host giveaways, partner with influencers, or participate in crochet challenges. 

Consider offering a free product in exchange for a review, or running a simple “tag a friend to win” contest can significantly expand your reach. Over time, these efforts will help you establish a loyal customer base that values your craftsmanship and shares your passion for crochet.

10. Organize inventory, supplies, and production schedules

Efficiently managing your inventory and supplies is critical for keeping your business organized, especially if you only have limited time. 

Start by creating a system to track your materials and finished products. Use labeled storage bins for yarn, packaging supplies, and completed items, so you can easily find what you need. Maintain a simple spreadsheet to monitor inventory levels, noting when materials are running low or products need to be restocked.

For production, establish a schedule that fits your lifestyle. For example, you might dedicate evenings or weekends to working on new items or fulfilling orders. 

If you offer made-to-order products, plan buffer time for production to ensure you meet customer deadlines without feeling rushed. Quality control is equally important – test your products for durability, consistency, and overall finish before shipping them to customers.

Conclusion

Starting a crochet business is not only a great way to monetize your hobby but also a chance to share your passion and creativity with others. 

By identifying your niche, conducting thorough market research, and crafting a versatile product line, you can build a strong foundation for your business. Creating a unique brand identity and using platforms like Hostinger AI Website Builder will help you establish a professional online presence with ease.

Success doesn’t happen overnight, but with a clear pricing strategy, well-organized inventory, and consistent marketing, your crochet business can grow steadily.

Now it’s time to pick up your hooks, put your plan into action, and start stitching your way to success!

How to start a crochet business FAQ