If you’re dedicated to the art of crochet, you know that with just a hook and some yarn, you can follow your imagination wherever it leads you. For example, you may crochet baby blankets and stuffed animals for thrilled parents-to-be, or maybe friends and strangers are always admiring your stylish handmade cardigans.
But have you considered making money by sharing your talents with the world? Consult this step-by-step guide for the rundown on how to start a successful crochet business.
Ready to start your business? Create your website today or learn more about Shopify’s tools for selling online and in person.
How to start a crochet business
- Choose your business model and niche
- Conduct market and audience research
- Design your product line
- Decide where to sell your products
- Price your products
- Write a business plan
- Develop your brand identity
- Create a marketing plan
- Form your business
- Set up your online store
Follow these 10 steps to develop your crochet business.
1. Choose your business model and niche
There are many different types of crochet businesses you can start. Here are a few ideas:
Handmade crochet items
You can sell all kinds of crochet items, such as sundresses, throw blankets, and colorful doilies. This business model is labor-intensive, so choose something you love to make.
“I know other people are getting into amigurumi [a Japanese term for crochet stuffed animals] because it’s hot right now, but I personally just did it because I love making stuffed animals,” says Genna Tatu, owner of Crochet by Genna. “I think having the passion for it definitely helped keep the hobby alive versus my other failed businesses, where I wasn’t passionate.”
Since this kind of business is based on hand-making crocheted items, it requires balancing growth with sustainability. While 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 felt burnt out. “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 pattern, you can sell it many times over with a Shopify store. You can sell patterns alone, or sell a combination of handmade items and patterns, like Genna does. “They are passive income, which is key in a market like crochet where it is so manually intensive for you.”
Crochet supplies
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 its brick-and-mortar location.
You can eliminate upfront inventory costs and shipping logistics by starting a dropshipping business. Shopify makes it easy to find suppliers.
📖Read more: 15 Best Dropshipping Suppliers in 2025
Crochet kits
Craft kits are another popular type of product you could feature. 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. Get inspiration from the brand Yarnybox, whose kits also include a link to a video tutorial.
Crochet classes
Share your expertise with beginner crocheters. You can set up a Shopify store and use a booking app so customers can schedule one-on-one or group classes with you. It’s also wise to create passive income by selling educational materials like ebooks and pre-recorded classes on demand.
2. Conduct market and audience research
Market research is the process of gathering and analyzing information about your potential customers and competitors. Your findings will shape your business positioning, marketing strategy, product pricing, and the types of products you sell.
You can conduct market research by reading trade journals and industry reports, consulting ecommerce blogs, and exploring existing crochet businesses. It helps to use data from online marketplaces to evaluate competitor performance. For example, an individual Etsy shop displays total sales, average customer rating, and customer reviews—that gives you some useful competitor data to learn from as you build your own business.
Genna also recommends being involved in the crochet community—Ravelry is a good place to start—and tapping into pop culture to help you decide what to sell. “For instance, last year cats were really popular,” she says. “Cats were the No. 1 thing that people were making. So as a designer, I was like, ‘OK, there’s a high demand for cat patterns; let me make a cat pattern.’”
“Follow current events, new books coming out, popular series, and see what animals or characters are within those books that you can try to capitalize on,” Genna says.
Market research also involves identifying specific target audiences within your target market and researching their needs, decision drivers, and buying habits. For example, if you make intricate lace dresses and shawls, your research might tell you the primary consumers of your products are women between the ages of 35 and 60 in middle- and upper-income brackets. You can then conduct interviews or hold a focus group to learn more about this group’s specific needs and buying patterns.
3. Design your product line
The next step is creating your initial line of crochet items. Use your audience and market research to design or source products to meet customer needs.
You can also look for gaps in competitor offerings. For example, if you join crochet message boards or social media groups, or attend crochet meetups, you might determine crochet dresses are popular and there’s an unmet need for inexpensive options. You might then use this information to create a line of affordable, quick-to-create dresses that can work as beach cover ups or to layer over slips for more formal occasions.
If you’re selling at a craft market, Genna recommends picking something that’s quick and easy to make. “Ask yourself, ‘What’s an item that’s super quick? Maybe it’s no-sew, very easy to make in bulk, and something that would sell at a low price point. At markets, people like buying the cheaper items.”
If you’re selling online, take into account how you plan to sell. For example, if you’re selling handmade items, your product line will depend on if you are a made-to-order shop or have items readily available.
“When I first started out, I was just doing plushies. I was a made-to-order shop. I listed all the plushies that people could order from me,” 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.”
4. Decide where to sell your products
The next step is to decide where you’ll offer your products. You can sell through your own online store on 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. To make your choice, research the demographics of each platform to see if they align with your audience, compare the fees associated with selling at different venues or websites, and consider the level of control you want.
Genna started on Etsy because it didn’t require as much upfront costs and her research revealed other small businesses started on the platform. “Etsy is a platform that’s very easy for you to dive into. It’s pretty low-risk,” she says.
A platform like Etsy or Amazon Handmade is easy to set up, but it doesn’t have as much access to customer data, which can help you plan marketing campaigns. It also doesn’t allow for as much customization in branding and shop design and functionality. Eventually, Genna wanted more control over her business.
“I opened my Shopify store a year after having my business on Etsy,” she says. “It was like, ‘OK, I’m driving traffic to my own shop. Let’s branch out.’ 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 appeal to the widest possible audience. With Shopify, you can use Shopify Marketplace Connect to integrate your Shopify and Etsy shops.
5. Price your products
Planning your finances is an important step in starting a profitable business. Genna has set up two different pricing structures for her business.
When it comes to pricing her patterns, Genna mainly looks at competitor pricing. “I just 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.’”
That approach involves estimating your expenses before you can set prices for your products. Follow these steps:
Calculate your cost of goods sold (COGS)
COGS expenses are those directly associated with making your product. They might include fees for materials, equipment, packaging, marketplace charges or vendor permits at in-person markets, or any number of other recurring costs. For example, let’s say yarn and packaging adds up to $10 per order. Price in your labor and assign yourself a fair wage, say $20 an hour. If a product takes five hours to complete, your labor cost is $100 and the total cost to your business is $110 per item.
Shipping items to customers is not usually considered part of COGS, but you do need to factor in this expense, either in your price per item, or as an operating expense you average out across orders. You can also pass this expense directly to customers.
Factor in your overhead and startup costs
Overhead might include costs like website hosting and rent on a shared studio space, while startup costs might include purchasing crochet tools. If you anticipate 10 sales a month and your monthly overhead is $200, your overhead costs will average $20 per product, bringing the total cost to your business to $130 per item when taking into account the $110 for your cost of goods sold. You might add another $5 per sale as part of your plan to pay down your startup costs, arriving at a total cost of $135 per item.
Apply your markup
Markups represent your profit and typically run between 20% and 100% of the item cost. You can use a profit margin calculator to determine yours. If you’re unsure about how much to mark up your products, aim to keep your products aligned with competitor prices. However, try not to lower your price to a markup below 20% because you risk taking a loss on your orders if production costs—like your time—are higher than you expected.
6. Write a business plan
Your crochet business plan provides a roadmap for how to run your business. It includes the following elements:
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Company description. Outline your business model, big-picture vision, goals, structure, mission statement, and value proposition.
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Market research. Provide insights into the strength, opportunities, size, and competition of your chosen market.
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Products and services. Describe your offerings, including how you’ll price your crochet wares, supplies, or services.
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Financial plan. A financial plan includes possible funding sources, projected revenue, and expected operating expenses.
7. Develop your brand identity
You can 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 will represent your work and influence how you communicate with your target audiences. For example, if you sell crocheted baby clothes and other baby items, you might select bright colors and a playful tone of voice, while if you make cottagecore doilies and table runners, you might opt for a more vintage aesthetic.
TL Yarn Crafts founder Toni Lipsey’s brand aims to be accessible to beginners. Toni accomplishes this by speaking to her 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 feel when learning to read patterns and promises to explain it in a way that is easy to understand.
For Crochet by Genna’s branding, Genna fosters a cozy, creative, and positive space. “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 aimed 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.”
8. Create a marketing plan
A marketing plan is your roadmap for getting your products in front of your target audiences. It includes your marketing goals, primary selling points, and key marketing channels. If you plan to sell products online, consider digital marketing strategies like search engine optimization (SEO), email marketing, and ads. Make sure the time and money you invest in marketing is accounted for in your business plan, budget, and pricing.
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 lot of profit, so she started by running ads.
“I did invest in ads from the start,” she says. “I always tell people, ‘Invest in marketing upfront.’ 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 Instagram, posting consistently to build an audience. You can share new products, updates on crochet events you’ll attend, and other types of content. For example, process videos are popular on Instagram because people often find it interesting or even soothing to see how things get made.
Yarnybox founder Jamie Sheppard uses Instagram to call for testers for new patterns. Jamie then shares the testers’ creations to show followers how easy the patterns are to follow before sharing the final pattern.
You might use a social media channel or blog to distribute free resources, a strategy known as content marketing. For example, you might post a free pattern to your company’s Facebook page or publish regular blog posts on topics like how to style various crochet pieces. Over time, content like this helps potential customers become more familiar with your brand and interested in what you offer.
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. “YouTube opens up a whole new world, a whole new audience. 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; it was for Genna. But she advises to just go 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.”
9. Form your business
The next step is to form your business, which involves selecting a business entity structure and opening a business bank account. In some cases, you might also need to obtain a business license. Consult your state’s website—typically, either a Department of State or Department of Revenue and Taxation page—to determine any legal requirements for establishing and running your business.
If you structure your businesses as a sole proprietorship, you might not need a business license or to register with the state, but you’ll still need to register your business name using a doing business as (DBA) to open a business bank account and accept payments made out to your business.
10. Set up your online store
While starting up on a marketplace like Etsy might help you get your items to market quickly, a strong website will help you establish your brand, boost your online presence, and strengthen your credibility as a brand.
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. Does your website load quickly across devices?
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Website navigation. Are your menus easy to navigate? Do they take the user into consideration?
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Accessibility. Does your store meet the latest website accessibility standards?
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Journey mapping. Does clicking a link or button take the user to the right place?
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Responsive design. Does your website function properly on all devices, including mobile and tablet?
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Copywriting. Do your words effectively convey information and represent your brand?
Make sure the ecommerce platform you choose allows you to create a seamless user experience without intensive effort, which can be costly in the form of time or development fees. Shopify’s comprehensive website builder does all of this and more.
Take high-quality photos
Whether you sell patterns, supplies, or wares, product photography can help you make sales. Crisp images that show off your products from different angles can help your audience get a better understanding of your offerings and give them the confidence to make their first purchase.
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 Magic to transform the product image background.
Make your product pages useful
As a crochet business, your product pages can help customers better understand your offerings, especially those who don’t crochet or who are new to the craft. For example, if you sell items, you can include information about pricing to help a new customer understand the cost.
“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 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 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 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 form sole proprietorships, although you’ll still need to register a DBA to open a business bank account. 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 customers and grow local brand awareness.
Is a crochet business profitable?
A crochet business can be profitable. Many skilled crochet enthusiasts have turned their crochet businesses into their full-time jobs. Standing out in the field, 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.
What type of crochet sells the most?
Patterns, small items (like scrunchies and coasters), and amigurumi are among the bestselling crochet items.
