How to Start a Pottery Business

Start a pottery business by following these 10 steps:

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

We have put together this simple guide to starting your pottery 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 important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Pottery Business Name Generator

If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name, we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability.

It's very important to secure your domain name before someone else does.

What are the costs involved in opening a pottery business?

Before making any investments, there are a few items to consider. Will your studio include a wheel throw, or will you build by hand? Do you plan on glazing your pottery in-house, or will you take it elsewhere for glazing and firing? How much space will your kiln take up? If electric, do you have an adequate power supply to handle the equipment?

Depending upon your needs, you’ll either set up shop in your home or garage, or rent or purchase studio space. While investing in a space away from home will affect your overhead expenses, many enjoy keeping their home and work separate. It’s all about personal preference.

Once you’ve determined your workspace, there’s a number of items and equipment you’ll need:

• Clay
• Hand tools
• Carving and decorating tools
• Glaze and colorants
• Wheel: ranges from $950 and $1800
• Work table
• Storage and display shelves, including a place to store damp pieces
• Kiln: manual or computerized, ranging from $2,000 to over $10,000
• Pug mill: costs anywhere from $2,300 - $8,400
• Business cards

You’ll also want to set some cash aside to cover art festival and traveling expenses. These shows are a great way to start building a name for yourself.

What are the ongoing expenses for a pottery business?

Fortunately, there is very little overhead in this industry. If you decide to open a public studio, you’ll have the standard expenses of rent, electric, and insurance. Otherwise, your budget will primarily be spent on materials, website management (if you choose to have one), and entry fees for events. Since you pay for materials up-front, your money is tied up until you’re able to recoup the money through sales.

Who is the target market?

Many consumers settle for cheaper pottery items that are mass produced. Those who purchase handmade pieces appreciate the time and skill that goes into each creation and are willing to pay a little extra for their one-of-a-kind piece. These are the individuals you’ll target when determining where to display your work and which festivals/shows you should attend.

How does a pottery business make money?

Pottery business owners earn their living off each piece they sell. Many choose to sell primarily to individual customers, while others have found success selling wholesale. Whichever route you take, pay close attention to your pricing model. Prices should include cost of materials, as well as an hourly wage to ensure maximized profit.

How much can you charge customers?

Prices vary from piece to piece. Carefully consider all the factors that went into creating your work, including materials used and time spent. Never sell yourself short when creating your price list. A coffee mug might sell for $20, while a work designed for display may yield thousands of dollars.

How much profit can a pottery business make?

Novice potters report annual earnings of just under $20,000, while master potters make an average of $47,500 annually. Most businesses take anywhere from 2-5 years to really get going.

How can you make your business more profitable?

Some pottery entrepreneurs have reported higher earnings by integrating the following into their business plan:

• Teaching pottery classes
• Selling wine and snacks to alongside pottery classes
• Inviting groups to paint/glaze your unfinished work and take home as a souvenir
• Experience will offer valuable insight into streamlining some of your processes, which increases your turnaround time
• Creating molds, which will allow both you and your apprentice to generate more pieces
• Simplifying some of your more detailed pieces and test them to see how they sell. If they’re popular, you can reduce the number of complicated items, increasing your turnaround time.
• Crafting products that appeal to several markets. Diversification is critical to every successful business.
• Collaborating with other artists in your community - this is a great way to grow as an artist and businessman and serves as a powerful networking strategy.
• Soliciting galleries, bars, hotels, restaurants, and real estate agents. While cold-calling is uncomfortable for most of us, you might be surprised at how many are willing to display your work on consignment or invest for design purposes.

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 pottery 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.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a pottery business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

Certificate of Occupancy

A pottery business is generally run out of a studio when offering classes. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO). A CO confirms that all building codes, zoning laws and government regulations have been met.

If you plan to lease a location:

• It is generally the landlord’s responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a pottery business.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.

If you plan to purchase or build a location:

• You will be responsible for obtaining a valid CO from a local government authority.
• Review all building codes and zoning requirements for your business’ location to ensure your pottery business will be in compliance and able to obtain a CO.

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?

Being able to craft a quality clay piece is only half the challenge. You must also possess the creativity and drive to continuously seek out new avenues for displaying and selling your work. An artist who has a knack for self promotion and networking amongst other artists and clients is an ideal match.

What happens during a typical day at a pottery business?

Running a successful pottery business is more than a full-time job. Your days will be spent in the studio forming, glazing and firing your creations and making molds. You’ll also spend a great deal of time putting your creative ideas down on paper and preparing for future projects.

There’s still the question of how you will sell your work. For many artists, this proves to be the greater challenge. Pottery business owners dedicate hours to networking in the community and seeking out new avenues to have their pottery displayed and sold. Their weekends are often spent traveling and setting up exhibits at art festivals. Those who decide to sell their work on a website spend a portion of their day managing orders, taking pictures of new items, and adding new pottery pieces to the site.

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

To run a profitable pottery business, one must possess more than artistic talent. You must possess the ability to balance your artistic abilities with an entrepreneurial spirit, ensuring your art makes it out of the studio and into a client’s home. Skills such as product development, marketing, accounting and sales should be mastered to ensure long-term success.

Even if you’re business-minded, consider taking some courses on accounting, marketing, and economics. Most classes can be taken at your local adult education center, online, or at a community college. Additionally, the Journal of the American Ceramic Society has a wealth of information that could provide insight into what marketing strategies work best for others in the industry.

As previously mentioned, there’s more that goes into building a successful pottery business than just your art. Time management skills are important for ensuring you devote the proper amount of time and attention to each aspect of your business.

Historically, potters spent several years apprenticing with a “master potter,” who taught them the skills needed to open their own studio. This time-honored tradition is still used today and is an important way to pass on skills from generation to generation.

What is the growth potential for a pottery business?

Through hard work and dedication, pottery business owners have the potential to become very successful. Due to the nature of their work, many choose to keep their business small and local, working alone or with one assistant. There are a number of world-renowned ceramic artists, however, whose pieces are sold and showcased in museums and galleries all over the world.