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If you’re an avid crocheter, chances are you’ve built up quite a collection of handmade scarves, hats, blankets, and adorable stuffed animals. You love the craft, but at some point, you start wondering—what can I do with all of these finished pieces? If this sounds like you, it might be time to turn your crochet hobby into a side hustle!
Starting a crochet side hustle doesn’t have to be overwhelming. With the right approach, you can sell your handmade creations and start earning extra income while doing something you love. Here’s a step-by-step guide to help you get started the right way.
1. Get the Legal and Financial Basics in Order
Before you start selling, you’ll need to handle a few business essentials:
Understand Your Tax Obligations
If you earn more than $400 a year from your side hustle, you’ll need to report your income and pay taxes. In most cases, a crochet side hustle falls under a sole proprietorship, which doesn’t require special paperwork but does require you to report business income on your tax return.
Register for a Sales Tax ID (If Selling In-Person)
If you plan to sell at craft markets or in-person events, check your county’s Register of Deeds website to obtain a Sales Tax ID number. Many craft markets require vendors to list this on applications. Online marketplaces like Etsy and Amazon typically handle sales tax for you, but if you're selling in person, you'll need to collect and remit sales tax yourself.
Open a Separate Checking Account
To keep your business finances organized, set up a separate checking account. This doesn’t have to be a fancy business account—just something to track crochet-related income and expenses separately from your personal funds.
Plan for Estimated Taxes
The IRS requires estimated tax payments if you owe more than $1,000 in taxes. A good rule of thumb is to set aside 20% of your profits for federal taxes and around 5% for state taxes, depending on where you live. It’s easier to pay these quarterly rather than facing a big tax bill at the end of the year.
2. Choose Where to Sell Your Crochet Creations
Now that you’ve got the legal stuff out of the way, it’s time to decide where to sell. Here are three of the best places to get started:
1. Etsy – The Ideal Online Marketplace
Etsy is the go-to platform for handmade goods. It gives you access to a global audience already searching for unique, handcrafted items. While it takes time to build traction, here’s a tip to jumpstart your sales: create an Etsy listing for custom orders from friends and family. When they purchase through Etsy and leave a review, it helps boost your shop in search rankings.
2. Craft Markets – Your Best Bet for Immediate Sales
Craft markets are full of customers who appreciate handmade goods and are ready to buy. When choosing markets, make sure they specify "craft market" rather than just "farmers market." Customers at craft markets expect to pay for handmade items, while farmers' market shoppers tend to be looking for produce and small-ticket items.
3. Local Facebook Groups – A Hidden Gem for Sales
Post your handmade items in local community groups on Facebook. A simple post introducing yourself as a crochet artist with a few product photos can generate surprising interest. You might receive custom orders, invites to teach classes, or even connections with local businesses interested in your work.
3. Make Selling Easy and Professional
Accept Credit Cards
Most customers prefer paying with cards, so invest in a Square reader (around $50) to accept chip, swipe, and Apple Pay transactions. Also, consider setting up Venmo for additional payment flexibility.
Have Business Cards Ready
Order at least 250 business cards and hand them out at every market or online order. Use Canva to design them and print through Vistaprint. Include a QR code linking to your Etsy shop for easy access.
Price Your Items for Profit
When selling online, factor shipping costs into your total price so you can offer "Free Shipping" (which customers love). When selling in-person, decide whether to include sales tax in your listed price or add it at checkout.
4. Extra Tips for Growing Your Side Hustle
- Save receipts for expenses like yarn, shipping supplies, and craft fair fees. These expenses reduce your taxable income.
- Use high-quality photos to showcase your work. Natural lighting (like a shaded porch) works best.
- Post consistently on social media to drive traffic to your Etsy shop or craft booth.
Ready to Start? Take the First Step Today!
Turning your crochet hobby into a profitable side hustle doesn’t have to be complicated. Start small, set up your sales platforms, and enjoy the process of sharing your handmade creations with the world.
