Tips for Starting a Handmade Business in 2025

Do you have a creative hobby that you would love to turn into a business? Do you create handmade products and would love to start selling these as a side hustle?

In this blog post I offer some helpful tips for anyone thinking about starting their own handmade business in 2025. I hope these insights will be useful to all kinds of makers, whether you’re into pencil drawings, ceramics, jewelry, or any other craft.

If you’ve already launched your small business or are planning to start one this year, drop your business name and what you create in the comments—I’d be excited to follow your journey!

My first tip, if you haven’t already, is to choose your business name and grab all the online accounts you can with it.

Pick a name that feels right for your business—whether you use your own name like me or something that reflects what your business is about. Be careful not to choose something too specific, though, as it could limit you if you want to change things up down the road.

For example, I’m a pet portrait artist, and while I could have chosen a name like "Pet Portraits by Alex" or "Alex Paints Your Pets," that would’ve made it tricky if I ever wanted to branch out beyond pet portraits.

Once you’ve settled on a name, it’s a great idea to create social media accounts with that name, even if you don’t plan on using them all right away. I have an Instagram account and I would definitely recommend creating a Pinterest business account too!

While you might not need or want to set up a website if you're just starting out, I'd recommend checking if the domain name matching your business name is available and getting it—it's usually pretty affordable (mine is about £20 a year).

Also, don’t forget to set up an email address that matches your business name for consistency!

Choosing a Name

Start Small

My next tip is to start small and risk-free—what I mean is, don’t feel the need to make a huge investment right away.

When I first began, all I bought were a few basic supplies—some paints, a couple of canvases, and a few paintbrushes and painted at my kitchen table after I finished work!

As I sold my paintings, I reinvested that money into getting better tools and materials. This way, I was able to grow without the pressure of a big upfront cost. It’s a great way to ease into it and see if you enjoy it, especially since the whole process can feel overwhelming at first. Don’t worry—you don’t need a ton of stuff to get started!

When it comes to finances, one of the best things you can do is set up a separate bank account for your business expenses and earnings. This will make it much easier to keep track of everything, and it’s great for staying organized.

If you're offering or planning to offer commissions, having a clear method for requesting payments is important too. For example, I charge a 30% deposit to book a slot in my commission calendar, and then I request the remaining balance when the painting is finished.

In the past, I used to send invoices through PayPal, but I realized their 5% commission fee was cutting into my profits. So, now I’ve set up a system where I issue invoices directly for both the deposit and the final payment. This way, it’s simpler and more cost-effective!

Finances

Legal Requirements

When it comes to legal requirements, you might need to register your business, depending on the tax laws in your country. For example, in the UK, you’re required to register as a sole trader if you make more than £1,000 in a year.

Last year was the first time I hit that milestone, so I started paying close attention to keeping proper records of both my income and expenses. I track everything on two separate spreadsheets.

One includes all the business-related purchases I make, like canvases, paints, and other materials, as well as transport costs for things like art fairs. It also covers larger expenses like the new computer monitor I bought last year and postage costs, including all the stamps I use to ship my greeting cards and bookmarks.

I also make sure to keep track of the money I earn from commissions, my Etsy shop, Skillshare, Adsense etc.

A huge tip I’d offer is to stay on top of recording everything as you go. If you wait too long to log your transactions, it can quickly become a daunting task, especially if you haven’t set up a separate business bank account yet.

The more organized you are, the easier it will be when tax season comes around!

Protect Yourself

Protecting your business is essential—especially when you start selling at events or in-person markets. One of the first things I had to do before my very first craft fair was get public liability insurance.

It was a requirement from the event organizers, but honestly, it turned out to be a smart move overall. I initially took out a policy that would cover me for a full year, knowing I’d be attending more fairs down the line.

Now, I make sure to renew it annually to stay covered. If you're planning to sell at craft fairs, markets, or even pop-up shops, I highly recommend looking into business insurance. It gives you peace of mind and shows that you're treating your business professionally from the start.

I actually have two target audiences! One group is pet owners, since many of my art commissions are pet portraits. The other group is creatives—people who paint or are looking to grow their own creative hobby into a business.

Because of this, I tailor my content to suit both audiences across different platforms. YouTube is where I focus on sharing advice and behind-the-scenes content for other small art business owners, while Instagram and Pinterest are more about showcasing my art, promoting commissions, and highlighting the products I create.

If you try to appeal to everyone, you end up appealing to no one. Identifying your target audience is crucial because it helps you focus your marketing efforts, create content that resonates, and connect with the right people—those most likely to buy your products or engage with your brand.

When you know who you're speaking to, you can tailor your messaging, choose the best platforms to reach them, and build stronger relationships that lead to loyal customers and steady growth.

Identify Your Target Audience

Income Streams

It's important to be mindful about where you want to focus your time and energy. As an artist, there are so many opportunities to earn money these days, and it can be tempting to try to do everything at once. But taking on too much can easily become overwhelming.

So, rather than juggling too many things, try to focus on one or two income streams in the beginning, or even within the first year.

For me, building multiple income streams has been a gradual process. I now have six different ways I earn money: commissions, selling products on my Etsy shop, vending at craft fairs, teaching on Skillshare, earning through Adsense on YouTube, and affiliate marketing.

That said, these streams can evolve over time. For example, I might decide to pause commissions one year to focus on something else, or I may choose to put more energy into a current stream or even explore new ones. The beauty of being an artist today is that your options are always open, and you can shift your focus as your needs and goals change.

Setting Goals

Set yourself some goals...I know, I know, it’s one of those things that everyone talks about, and honestly, I used to cringe every time I heard someone say it too. But the truth is, it really does make a big difference.

The key is to set goals when it feels right for you, not just because it’s January 1st. You can break your goals down into smaller chunks of time that make sense for your life. It doesn’t have to be a huge annual goal. Having clear, achievable goals with specific timeframes can help you stay focused and prevent you from getting sidetracked with things that weren’t even part of your original plan.

For example, one of my goals is to limit myself to only taking on two commissions per month. That’s a number I know I can manage without feeling too overwhelmed. If I don’t stick to that, I risk losing time for another goal I’m working on.

By setting these boundaries, I can make sure I’m giving enough attention to each part of my business without spreading myself too thin. So, while it might feel a little uncomfortable at first, having those goals in place really helps keep everything in balance!

My final tip is to take breaks! It’s so easy to get caught up in the hustle and want to do everything all at once, especially when you start seeing those little wins. For me, seeing progress makes me want to work even harder and longer, but I’ve learned that it’s really important to step away from both my art and my business every now and then.

Right now, I’m lucky to have a young family, so I get to spend a lot of quality time with them. Whether it's going on fun days out or taking them to their clubs, those breaks away from work are incredibly refreshing.

I find that taking a step back actually helps me come back to my work feeling more energized and motivated, ready to dive back in with fresh ideas and renewed enthusiasm. Don't underestimate the power of a good break—it can make all the difference in keeping your creativity and motivation high!

Thanks for reading and good luck!

Take Breaks