How to Start a Basket Weaving Business

A basket weaving business crafts and sells handmade baskets to customers. Many entrepreneurs who start a basket weaving business sell their products through various outlets, including online, trade shows, farmer’s markets, and sometimes in brick-and-mortar stores. Some basketmakers focus on more creative products, while others are more interested in practical baskets. What they all have in common is a passion for basket weaving and a strong desire to share their creations with consumers.

Learn how to start your own Basket Weaving Business and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services.

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:

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.

Want some help naming your basket weaving business?

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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.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

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.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

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.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services. You can choose to hire a registered agent or act as your own.

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!

You can acquire your EIN through the IRS website. If you would like to learn more about EINs, read our article, What is an EIN?

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.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

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.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

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.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended: Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker.

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator. Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a basket weaving business

Basket weaving businesses tend to market heavily on social media, both for their online stores and for their in-person appearances. It’s helpful to know how to take attractive photos of your products that will appeal to online viewers. For example, the better your pictures look on Pinterest and Instagram, the more likely they are to be shared.

Start by learning how to take advantage of free online marketing options – like social media marketing – before you invest money in advertisements. Once you understand the basics of free online marketing, it will be easier to identify promising angles for paid advertising.

How to keep customers coming back

Sell the best baskets you can make in order to keep customers coming back. If your baskets fall apart once the customer gets home, they are not going to return for another one. Keep honing your craft to ensure that the products you sell are top-notch.

It can also be helpful to collect customer contact info for ongoing marketing efforts. For instance, you can ask visitors to your booth and/or online store to submit reviews or subscribe to your newsletter in exchange for special offers. Later on, you can reach out to let them know about your new creations.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business.

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

  • All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
  • Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
  • Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended: Get started today using our recommended website builder or check out our review of the Best Website Builders.

Other popular website builders are: WordPress, WIX, Weebly, Squarespace, and Shopify.

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

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.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

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.

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Take the Next Step

Find a business mentor

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

  • Funding
  • Events
  • Guides
  • Support

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a basket weaving business?

If you want to get your business off of the ground as quickly as possible, become a part of the communities relevant to your business. For example, if you are friendly and helpful at the next trade show with other craftspeople, they will be much more likely to send business your way and tell you about opportunities. The same is true for online communities. The more connections you make, the easier it will be to grow your business.

How and when to build a team

Many basket weaving businesses consist of a single person both weaving and running the business. It can be challenging to start making enough money to justify employees in the handmade crafts business. However, if you find yourself overwhelmed by orders month after month, you may have reached the point where help is necessary. Keep meticulous records of your business affairs so you have the data to determine if you can make more money in the long run by spending some now on an employee.

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