How to Start a Yarn Business

Many people enjoy knitting.

Start a yarn store in your community to provide artists, hobbyists and first-time crafters with yarn and other crafting materials. Many people enjoy making hand-made crafts or purchasing yarn and other supplies to give as gifts to those who enjoy craft projects. Knowledge of knitting, crocheting and other crafts is useful to help build customer loyalty. Providing quality customer service is another way to increase sales and encourage customers to return to your store when they need additional materials.

Instructions

1. Apply for a business license to start a yarn business in your area by contacting the county clerk's office or small business administration office. Contact the Internal Revenue Service (IRS) to apply for an employer identification number (EIN) to use on yarn business documentation such as tax forms or business registration forms. Register your yarn business with the secretary of state's office in your state if forming a partnership, corporation or limited liability company (LLC). Purchase business insurance to protect the items in your store as well as business assets in the event of a lawsuit or settlement.

2. Lease commercial retail space in a busy shopping area, downtown district or arts community. Contact a commercial real estate agent to find a suitable location. Commercial retail space should provide plenty of room to display yarn, knitting materials, patterns and other sewing items.

3. Purchase yarn from wholesale retailers and manufacturers. Purchase additional items such as knitting supplies, knitting needles, crochet needles and instructional books for knitting and crocheting. Purchase shelving and display racks to showcase items in your store. Purchase retail software to track sales and monitor inventory.

4. Advertise your yarn business on the radio and television. List your yarn business in local business directories. Create fliers, brochures, business cards and a website to increase awareness of your business. Attend local craft shows, art fairs and crafting trade shows to meet potential customers.

Tips & Warnings

• Offer knitting and crafting seminars to increase sales and create a loyal customer base.

• You may need to expand your yarn business to include other types of crafts in order to remain profitable.

References

• Entrepreneur: Craft Supply Store

Resources

• Internal Revenue Service: Employer Identification Numbers (EIN's)