Start a scrapbooking business by following these 10 steps:
- Plan your Scrapbooking Business
- Form your Scrapbooking Business into a Legal Entity
- Register your Scrapbooking Business for Taxes
- Open a Business Bank Account & Credit Card
- Set up Accounting for your Scrapbooking Business
- Get the Necessary Permits & Licenses for your Scrapbooking Business
- Get Scrapbooking Business Insurance
- Define your Scrapbooking Business Brand
- Create your Scrapbooking Business Website
- Set up your Business Phone System
You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your scrapbooking business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
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 are the startup and ongoing costs?
- Who is your target market?
- How much can you charge customers?
- What will you name your business?
Luckily we have done a lot of this research for you.
What are the costs involved in opening a scrapbooking business?
Opening a scrapbooking business is a fairly inexpensive proposition. Wham.com recommends setting aside $1,000 for the venture.
While some of this money may go toward licenses and a website, most of the funds are used to purchase supplies. Scrapbookers need:
- sheet protectors
- plain and patterned paper
- specialty pens and markers
The paper should be lignin-free and acid-free, so it won’t damage any photos that are put into a scrapbook.
Business owners who have tight budgets can purchase supplies on a per-project basis until they save up enough to buy supplies ahead of orders. Most business owners work at home, so office expenses aren’t a major consideration.
What are the ongoing expenses for a scrapbooking business?
The ongoing expenses for a scrapbooking business are minimal. They include:
- Ebay and Etsy listing fees (if selling on the platforms)
- website hosting fees (if a business has its own site)
- costs associated with ordering additional supplies
Supply costs can be kept low by ordering them in bulk. There are many wholesalers of scrapbook supplies.
Who is the target market?
The target market for a scrapbooking business is people who would like a way to remember precious moments but aren’t able to create a scrapbook themselves. Many customers are women, but men may also place orders. Most are middle- or upper-class, as having someone else make a scrapbook is a luxury that requires discretionary income.
How does a scrapbooking business make money?
A scrapbook business makes money by selling completed scrapbooks. Some business owners also sell individual pages.
How much can you charge customers?
Scrapbooking businesses can charge by the scrapbook, page or hour. Completed books retail for anywhere from $100 to $5,000 (usually these are fancy wedding scrapbooks). Per-page fees range from $10 to $40 per page. Hourly rates often hover around $50 per hour.
When determining what to charge, it’s important to take into account all the time that completing scrapbooks requires. Time spent ordering supplies, talking with customers and physically assembling scrapbooks should all be accounted for in a business’ fees. Talking with customers about what they’d like can be especially time-consuming.
How much profit can a scrapbooking business make?
Because the ongoing expenses for a scrapbooking business are so low, a successful business can bring in a significant profit. Business owners who complete three scrapbooks a week could bring in at least $300 weekly, if not much more depending on the length and total cost per scrapbook.
How can you make your business more profitable?
Scrapbooking business owners can increase profits by teaching local scrapbooking classes. The registration fees for these classes serve as an additional revenue source, and each new registrant is a potential lead. If they don’t have a need for professional scrapbooking services, they may know someone else who does.6
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 Scrapbooking Business Name Generator
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.
STEP 2: Form a legal entity
Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your scrapbooking business is sued.
Form Your LLC
Read our Guide to Form Your Own LLC
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 for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.
Small Business Taxes
Depending on which business structure you choose, you might have different options for how your business will be taxed. For example, some LLCs could benefit from being taxed as an S corporation (S corp).
You can learn more about small business taxes in these guides:
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.
Additionally, learning how to build business credit can help you get credit cards and other financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more.
Open a business bank account
- This separates your personal assets from your company's assets, which is necessary for personal asset protection.
- It also makes accounting and tax filing easier.
Recommended: Read our Best Banks for Small Business review to find the best national bank, credit union, business-loan friendly banks, one with many brick-and-mortar locations, and more.
Open net-30 accounts
When it comes to establishing your business credit, net-30 vendors are considered the way to go. The term "net-30," which is popular among vendors, refers to a business credit arrangement where the company pays the vendor within 30 days of receiving goods or services.
Net-30 credit terms are often used for businesses that need to obtain inventory quickly but do not have the cash on hand.
Besides establishing business relationships with vendors, net-30 credit accounts get reported to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how businesses build business credit so they can qualify for credit cards and other lines of credit.
Recommended: Read our guide on the best net-30 vendors so you can start building business credit now, so you never have to worry about cash flow in the future. Keep in mind that poor cash flow is the #1 reason businesses fail!
Get a business credit card
- This helps you separate personal and business expenses by putting your business' expenses all in one place.
- It also builds your company's credit history, which can be useful to raise money and investment 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 scrapbooking business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.
Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.
For information about local licenses and permits:
- Check with your town, city or county clerk’s office
- Get assistance from one of the local associations listed in US Small Business Associations directory of local business resources.
Certificate of Occupancy
A scrapbooking business is sometimes run out of a storefront or home office. 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 scrapbooking 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 scrapbooking 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.
Learn more about General Liability Insurance.
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.
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 scrapbooking business
Word of mouth is the most effective way to grow a scrapbooking business, so business owners should seek out customer recommendations and referrals whenever possible. To encourage word-of-mouth referrals, business owners can
- request reviews on sites like EBay and Etsy
- ask customers if they know anyone who might want a scrapbook made
- give customers coupons to share with friends and family
How to keep customers coming back
Specializing in a niche sets a scrapbooking business apart from much of the competition. Some in-demand niches include scrapbooks for newborns, grandchildren, weddings, family vacations, and anniversaries.
Still unsure about what kind of business you want to start? Check out the latest Small Business Trends to help inspire you.
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.
Using our website building guides, the process will be simple and painless and shouldn’t take you any longer than 2-3 hours to complete.
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 2022 to find the best phone service for your small business.
Recommended Business Phone Service: Nextiva
Nextiva is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.
Start A Scrapbooking Business In Your State
Select your state below for an in-depth guide on completing each of these steps in your home state.
Is this Business Right For You?
Anyone who enjoys scrapbooking personally might like it doing it on a professional level. Scrapbooking for others isn’t the same as doing it for yourself, but many people enjoy getting paid for applying their creative skills.
Want to know if you are cut out to be an entrepreneur?
Take our Entrepreneurship Quiz to find out!
What happens during a typical day at a scrapbooking business?
Scrapbooking business owners spend much of their time talking with customers and assembling scrapbook pages. Assembling pages involves sorting photos and other media, arranging chosen the materials and then affixing them to the appropriate page. Sometimes there are also messages to write.
When not directly working on scrapbooks, business owners might be ordering more supplies, shipping completed scrapbooks or marketing their business.
What are some skills and experiences that will help you build a successful scrapbooking business?
People who scrapbook personally can use whatever style they prefer, but professional scrapbookers need to create books that their customers love. Because customers’ tastes in style can vary, business owners should be well-versed in at least five to seven different scrapbooking styles.
Business owners who would like to expand their scrapbooking skills may wish to consult books or videos on the subject. A few popular resources are:
- Scrapbooking Techniques: Sewing on Paper
- Encyclopedia of Scrapbooking
- 501 Great Scrapbook Page Ideas
- Scrapbook.com’s free classes
The Stamp & Scrapbook Expo also has vendors, workshops and more. There are expos throughout the country.
What is the growth potential for a scrapbooking business?
Scrapbooking is time-intensive, and it requires an individual’s creative vision. For these reasons, most scrapbooking businesses remain small.
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:
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 scrapbooking business?
Listing scrapbooks for sale on EBay and Etsy will jump-start a scrapbooking business. These platforms regularly have customers who want scrapbooks made, and customers are more likely to order off a trusted platform than through an unknown website.
How and when to build a team
Most scrapbooking businesses are one-person operations. If there is sufficient work, business owners might want to hire an assistant to help manage communications and assemble scrapbooks.