ten best craft business ideas

With more people buying handmade goods, many entrepreneurs are starting craft businesses.

Turning a creative hobby into a business from home has never been more achievable.

Low start-up costs, flexible hours, and access to online marketplaces make craft business ideas a practical route to working for yourself.

Whether you’re looking for a side hustle or aiming to build a full-time craft business, handmade products can offer creative fulfilment and real earning potential – especially when paired with smart pricing, consistent quality, and a clear plan for sales.

Before you dive in, it helps to set clear expectations. 

Successful craft businesses are built on simple but essential foundations:

• Basic market research: Who will buy your products? What do they already buy? What makes yours different?
• Consistent quality: Reliable materials, repeatable processes and good quality control.
• Price for profit: Cover all costs, pay yourself for your time and include a margin.
• Stay compliant: Understand product safety, trading standards, insurance and tax responsibilities.

If you're looking for inspiration to launch your own start-up, why not explore some of these craft business ideas?

10 craft business ideas

1. Soft home furnishings

If you’re handy with a sewing machine, making and selling soft home furnishings such as cushions, throws, or curtains could be a route to your own business.

The start-up costs for this idea could depend on the equipment you already own.

While you might need to invest in a sewing machine, items like fabrics, needles, thread, and other basic sewing tools are generally more affordable.

Some previous sewing experience and knowledge may be necessary to start a soft furnishings business successfully.

This could help you estimate costs, materials, and the time needed to make a piece.

If you plan to make and sell items like cushions or throws, be aware of the UK's fire safety labelling requirements.

2. Ceramics

A home ceramics business would produce and sell ceramic items like bowls, mugs, vases, and decorative pieces.

You may need to invest in equipment such as a pottery wheel and kiln, as well as glazes and clay.

This craft business idea may be suited to those with previous experience with pottery or ceramics.

There are many ceramics courses available to help you learn safely.

If you plan to make tableware, you must follow food safety standards, and children’s items may require CE marking.

3. Jewellery

A craft jewellery business typically involves making earrings, necklaces, bracelets, rings, and brooches.

Costs range from low to medium depending on the materials and tools used – pliers, findings, quality components, polishing tools, and safe resin handling gear.

If you decide to work with metal and precious stones, you must comply with nickel regulations, and precious metal pieces must be hallmarked.

Creative flair, speed, and attention to detail could be essential for business success.

4. Hand-poured candles and wax melts

A craft candle-making business typically creates home fragrance products in various styles and scents.

Startup costs are low to medium – a double boiler or melter, thermometer, scales, wicks, moulds or containers, fragrance oils, dyes and CLP-compliant warning labels will get you started.

Products such as these are typically made in batches, which could reduce start-up costs and production time.

However, you may require basic candle-making skills to create products.

You might consider testing products on your friends and family as you innovate and improve.

You must follow CLP labelling rules for hazardous substances and ensure fire safety, in your workspace and product labels.

5. Pet accessories

Pet accessories are a fast-growing niche with strong repeat purchases. 

You could start a business making and selling pet accessories, including beds, collars, leads, toys, and clothing.

Start-up costs are typically low because you mainly need fabric, thread, and simple hardware.

The level of skill and time spent per item can vary, depending on the complexity of the design and the materials used.

Simple items require minimal sewing skills and time, while more intricate pieces require advanced techniques and additional effort.

Although there are no specific legal requirements or regulations for dog toys and accessories, you could try to make them as safe as possible under the General Product Safety Regulations 2005 and Toys (Safety) Regulations 2011.

6. Upcycled furniture

Consider starting a business transforming old or unwanted furniture into stylish, unique pieces if you enjoy a transformation challenge.

You could keep costs low to medium by buying paint, brushes, tools, and protective gear, and by sourcing furniture for free or cheaply on Freecycle, Facebook Marketplace, or eBay.

This craft business may require some DIY and restoration skills, as each project may take several hours or days.

As with soft home furnishings, you need to follow UK fire safety regulations for upholstered furniture and general furniture safety standards.

7. Natural soaps and bath products

If you like experimenting with scents and natural ingredients, starting a natural soap and bath products business could be the perfect craft option.

This type of business involves handcrafting items like soaps, bath bombs, beauty oils, and scrubs using natural ingredients.

Typical start-up costs include a soap base, moulds, essential oils, packaging, and safety gear, which could be low-cost.

With cold-process soaps, you’ll need to handle sodium hydroxide safely, craft balanced recipes, and allow bars to cure for 4–6 weeks.

Melt-and-pour products offer a quicker turnaround with less chemistry.

You will need to follow government guidance on making cosmetic products for consumers and make sure your product have the correct labelling under UK law.

8. Resin crafts

Another craft business idea involves creating items such as coasters, key rings, bookmarks, art pieces, and trays from epoxy resin.

This type of business has relatively low start-up costs.

You will need to purchase epoxy resin, pigments, moulds, personal protective equipment, and optional items such as glitter or dried flowers.

Having some experience in resin casting can be beneficial.

It’s also crucial to have access to a well-ventilated workspace to handle chemical products such as resin safely.

9. Knitwear

Skilled knitters may be interested in a craft knitwear business.

With relatively low start-up costs, you could create blankets, jumpers, scarves, hats, and baby clothes.

However, you may need plenty of knitting or crochet experience and allow plenty of time to create high-quality products.

Ensure the baby clothes you make comply with UK-specific regulations, such as the General Product Safety Regulations, and follow standards such as BS EN 14682 for cords and drawstrings.

10. Digital printables

Prefer a digital route? Digital printables can deliver passive income once set up.

You could create planners, wall art, stickers, cards, and templates for customers to download and print at home.

You might use platforms such as Canva, Visme, or Snappa to create your designs.

If you already have a computer or digital design equipment, the start-up costs can be low, as you wouldn’t need to worry about printing materials and packaging.

You'll need strong design skills, knowledge of properly licensed images and fonts, and a business website to sell your products.

Things to consider before you start

Start-up costs

Besides the cost of equipment and materials, there may be other costs for you to consider when starting a craft business.

You could factor in costs for packaging, postage, branding, and any costs associated with the digital side of your business, such as software subscriptions and online marketplace or platform fees.

Consider conducting market research before starting your craft business to help you create a realistic business budget.

If you require funding for your new business, you might consider a Start Up Loan.

The government-backed personal loan is aimed at helping entrepreneurs start or grow a new business.

Learn more about Start Up Loans.

Setting prices

When setting prices for your products, include everything – the cost of materials, your time and labour, your overheads, and a reasonable profit margin.

Avoid pricing too low, as this can weaken your business and make it harder to grow.

Read our guide on how to successfully price homemade goods.

How to sell your goods

There are a variety of ways you could sell your handcrafted products.

You can use your own website, social media, on market stalls, online marketplaces such as Etsy, Amazon Marketplace or eBay, or on consignment in shops.

Each method has its own pros and cons, so it could be worth researching each to determine which is best for you and your start-up.

Learn more with our guide on how to sell products from home successfully.

Compliance

Make sure you understand any legal obligations for the products you sell, especially items that could cause harm, such as candles, skincare, or baby products.

You many need public liability and product liability insurance, and meet trading standards, and ensure product safety.

Respecting copyright law is essential when using images or designs.

You may also consider protecting your intellectual property to safeguard your unique creations.

Legal requirements

In order to trade legally, you must choose a business structure and register your business with HMRC.

Many craft businesses start as sole traders because it’s a quick and straightforward process.

Learn your tax obligations early and set up good bookkeeping practices from day one.

Sustainability

Sustainability could influence shopping behaviour, as more people seek to contribute to protecting the planet.

Consider sourcing materials responsibly, reducing waste as much as possible, and using sustainable packaging.

This is not only better for the environment, but it may also be an appealing selling point for customers looking to shop more sustainably.

Learn how to avoid greenwashing.

Marketing and scaling your business

To promote your start-up and grow your customer base, you could market it in various ways.

Using social media, attending local events, and encouraging word-of-mouth referrals may all be successful ways to get your products in front of your target audience.

As demand grows, you might consider moving from home to a dedicated workspace or hiring employees to help with production and sales.

Learn how to create a marketing plan.

Regulations and safety standards can change over time, so remember to check the latest rules that apply to your type of craft business.