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4 Steps to Start a Craft Business Without Debt

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Want to start a craft business but short on cash? While you may have heard the saying, “You’ve got to spend money to make money.” You certainly do not have to go into debt to start a craft business.

Ideally, you’ll have some money set aside for your new business, but if you don’t (or if you don’t have enough) skip putting your purchases on a credit card and follow these steps instead.

Today, let’s look at 4 steps to start a craft business without debt.

How to Start a Craft Business without Debt -

4 Steps to Start a Craft Business Without Debt

  1. Identify one craft product you want to sell and buy the supplies for just that product. Be selective and focus on a product that you are comfortable making, and one that you know you can sell for a profit. Then, buy the supplies to make just that product. Before you go out shopping, raid your craft stash at home. You may already have the supplies you need.
  2. Make and list your product. To save money on listing fees, consider selling locally or through social media.
  3. Immediately reinvest your profits in supplies to make more of the same product. After your product sells, Put aside all profits from your sales and reinvest those profits in supplies to make more products. Put your new products online for sale.
  4. Repeat, repeat, repeat. Repeat steps 2 and 3 and continue to repeat, repeat, repeat! You’ll be able to slowly watch your inventory and profits grow.

An Example of How to Start Your Craft Business Without Debt

Let’s look at this in action, with a simplified example.

  1. I’ve identified that I enjoy making t-shirts with heat transfer vinyl. I run through the numbers:
    • One t-shirt costs $6.
    • The roll of vinyl costs $10, but will make 10 shirts. So, the vinyl cost for one t-shirt costs $1.
    • This means the cost for each t-shirt is $7.
    • I already make t-shirts for my family and have a heat press and additional supplies needed.
  2. I list my t-shirt for $24 on a local buy/sell group. The buyer picks up the t-shirt from my house, so no shipping costs are incurred.
  3. My profit from this shirt is $17. This means that I am able to buy two more t-shirts, with $3 left over.
  4. I make two additional shirts and sell them in the same local buy/sell group. My profit this time is $34.
  5. I’m able to reinvest that $37 ($34 in profit + $3 left over from the first sale) for another 6 shirts. Once I sell those 6 shirts, I’ve got an additional $144 in profit. I can then reinvest my $144 in supplies and continue this process. In time, I’ll have enough money to eventually expand my product line and even buy in bulk to lower my costs.

This method will work for most craft products. You just want to be armed with patience, as it may take longer to see results over putting everything on a credit card and paying interest.

Coincidentally, I started my business without any debt and have slowly watched it grow and grow. Soon enough, you’ll be able to look back – debt free – and be amazed at how far you have come.

Before you go, I’ll leave you with one of my favorite quotes:

“It does not matter how slowly you go as long as you do not stop.”



Sunday 24th of December 2017

Great advise! I am hoping to create extra income for my family not more debt. I love crafting and making things that make people happy. With that said I also do not have a large inventory.


Wednesday 27th of December 2017

Best of luck to you, Amy!