How to Start a Basket Weaving Business

Start a basket weaving business by following these 10 steps:

1. Plan your Basket Weaving Business
2. Form your Basket Weaving Business into a Legal Entity
3. Register your Basket Weaving Business for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Basket Weaving Business
6. Get the Necessary Permits & Licenses for your Basket Weaving Business
7. Get Basket Weaving Business Insurance
8. Define your Basket Weaving Business Brand
9. Create your Basket Weaving Business Website
10. Set up your Business Phone System

We have put together this simple guide to starting your basket weaving business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is very important. Read our detailed guide on how to name your business. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.

What are the costs involved in opening a basket weaving business?

The costs required to open a basket weaving business are relatively low compared to other businesses. You will need basket weaving supplies, including reed, cane, and dyes. You will also need to create a website, set up an Etsy store, and pay for booth space at local events like trade shows and farmer’s markets. Fortunately, supplies are fairly cheap, and you can do most of your initial web setup and marketing on your own. Altogether, you can probably start your basket weaving business for under $2,000.

What are the ongoing expenses for a basket weaving business?

The ongoing expenses for a basket weaving business include materials for basket weaving, like reed and cane, along with marketing expenses, website hosting and maintenance, studio space (if not based out of your home), and employee wages if you have employees.

The costs can range widely depending on what you need to keep your business going. In your first year, you may only spend $5,000 for everything to run your business. In later years, especially if you have employees, your operating costs could be $100,000 a year or more.

Who is the target market?

Your target market is anyone interested in handmade crafts, either for collecting, home decorating, souvenirs, or other reasons. The business owners with Etsy shops for handmade crafts are overwhelmingly women — at 87% — and the market buying those crafts is likely to skew female as well. However, you could always buck the trend and design baskets for the more masculine buyer if you have interesting ideas in that area.

How does a basket weaving business make money?

A basket weaving business makes money by selling baskets to customers. There are multiple sales channels you can use depending on your preferences. You can set up an Etsy store, establish your ecommerce store, sell through retailers, sell in person at fairs and farmer’s markets, and so on. To make it a full-time venture, you will most likely need to sell through all of these channels.

How much can you charge customers?

You can charge anywhere between $10 and $300 or more for baskets. The price you charge is generally based on how much work and/or skill went into the finished product. A tiny basket for someone’s desk could cost $10 or $20, while a large basket for blankets in multiple colors could cost $200 or more.

How much profit can a basket weaving business make?

A new basket weaving business is typically the kind of business that provides supplemental income instead of full-time income. You might make a few thousand dollars in your first year. But if you do everything right and are lucky, you could become one of the big earners in the handmade crafts industry. The top earners on Etsy bring in around $300,000 a year.

How can you make your business more profitable?

You can help increase your profits in several ways. The better you get at weaving, the less time and effort it will take to make baskets. That increases your earnings. However, the real way to significantly increase profits is to build a reputation and attract a bigger customer pool. If you have highly-desirable products, you can charge much more for them. And if you double your customers, you can sell a lot more products.

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your basket weaving business is sued.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

This business is right for individuals who love crafting, specifically basket weaving. It’s not enough to be a great basket weaver, though. You also have to have a knack for getting the word out about your products and convincing potential buyers that they need those products. Like other businesses that begin with a hobby, basket weaving requires a combination of creativity and business savvy to be successful.

What happens during a typical day at a basket weaving business?

There are two main aspects of a basket weaving business – basket weaving and sales. On some days, you will spend most of your time weaving baskets, which for many is the most enjoyable part. But on other days, you may need to market your products, negotiate deals with other business owners interested in selling your baskets, schedule appearances at events like farmer’s markets, and hang out at those events interacting with customers and selling products.

What are some skills and experiences that will help you build a successful basket weaving business?

The most obvious skill you need is basket weaving. If you don’t know how to weave baskets, fortunately, it is something that you can learn with a little practice. But, basket weaving is only a part of what you need to be a successful entrepreneur. You have to sell your products and do so consistently to earn a living from your business. Customer service skills, marketing skills, and bookkeeping skills are all important to keep your business going strong.

What is the growth potential for a basket weaving business?

Basket weaving falls under the umbrella of handicrafts. According to Businesswire, the North American market for handicrafts was $218 billion in 2018. It is projected to reach $400 billion by 2024. They attribute the growth to increased tourism in North America – tourists are willing to pay a premium for local crafts. Additionally, the rise of online platforms like Etsy has allowed craftspeople to reach a bigger market.