How to Start a Crochet Business (The Complete Beginner’s Guide)

How to Start a Crochet Business (The Complete Beginner’s Guide)

If you’ve ever wondered how to start a crochet business and turn your love of yarn into something that actually earns money, you’re not alone.

I’m Marcy — a crochet designer, mom, and creative entrepreneur — and ten years ago, I was exactly where you might be now: surrounded by piles of handmade plushies, scarves, and cozy blankets, with a dream of doing something bigger with them.

Back then, crocheting was my escape, my creative outlet. But as the projects piled up in the corner of my room and I maxed out gifts for friends and family, I began asking the same question you might be asking:

Could I turn this into a business?

The short answer? Yes. But the journey from hobby to crochet side hustle (and eventually, full-time business) takes intention, planning, and the right strategy.

In this ultimate guide, I’ll walk you through:
● My personal journey from hobby to business
● The legal and financial steps to set up your crochet business plan
● Where and how to sell your crochet creations
● Marketing tips to actually get noticed
● Common mistakes to avoid

Whether you’re just curious or ready to dive in, this will give you the confidence and tools to start.

Why Start a Crochet Business?

For me, it was about more than making extra money. It was about freedom — the ability to earn an income doing something I loved while still being there for my family.

Crochet businesses can:
● Provide supplemental income alongside a day job
● Fund your yarn habit (yes, it’s a thing!)
● Allow you to share your creativity with people around the world
● Create a path to eventual full-time self-employment

And here’s the truth — people might doubt you at first. I’ve heard my share of “you’re going to make a living crocheting stuffed animals?” But as Brandi Morpurgo, founder of Daisy Chain Book Co., once said:

“Everyone thought it was a silly idea until they saw it work.”

I already believe in my vision. You need to believe in yours too.

Hobby vs. Side Hustle vs. Full Crochet Business

Before you dive in, decide your level of commitment:
Hobby: You make items for fun and give them away or sell occasionally without worrying about profit.
Side Hustle: You intentionally sell on weekends, evenings, or at markets to earn extra income while keeping your day job.
Full Business: Your primary income source, with scaled-up production, multiple revenue streams, and full business infrastructure.

This guide focuses on turning your crochet hobby into a profitable side hustle — something you can manage part-time but still scale over time.

Knitted toys on display at a craft fair with a 'Simply Hooked' sign.

Step 1: Get the Legal & Financial Stuff Set Up

I know — this isn’t the fun, creative part. But getting it out of the way early makes everything smoother when you’re learning how to make money with crochet.

Understand Your Business Structure

If you make more than $400/year from crochet, you’ll need to report that income to the IRS. The simplest route for a crochet business from home is to operate as a sole proprietorship.
● No complicated LLC paperwork required (unless you want added liability protection)
● Report business income and expenses on your personal tax return

Register for a Sales Tax ID

● Required for most craft markets
● Allows you to collect and remit sales tax in your state/county
● In-person markets will often request your Sales Tax ID on vendor applications

Separate Your Money

Open a separate checking account just for crochet income/expenses. It doesn’t have to be a “business account” — just something to keep personal and business funds separate.

Step 2: Choose Where to Sell Crochet

Picking the right sales channels is key to getting your work in front of paying customers.

● Etsy: Built-in audience actively searching for crochet toys and handmade items. Great for beginners starting a crochet business.
Craft Markets: Holiday craft markets can be goldmines for plushies and gifts.
Local Facebook Groups: Great for custom orders, teaching opportunities, and connecting with shops.

You could even expand into selling crochet on Amazon Handmade later once you’re more established.

Step 3: Make It Easy to Buy From You

● Accept cards & digital payments with Square or Venmo.
● Create business cards with a QR code to your Etsy or website.
● Make checkout simple so buyers say yes quickly.

Step 4: Market Your Crochet Business

You can’t just make beautiful items — people have to find you.

● Social Media: Pinterest is the #1 tool for crochet pattern traffic.
Email List: Collect subscribers with a freebie or discount.
Photography: Your first Etsy photo sells your item before the description does.

Step 5: Avoid Common Pitfalls

● Underpricing: Learn how to price crochet items for profit.
● Selling everywhere: Focus on a few channels you can do well.
● Overcomplicating taxes: Keep records organized from the start.

Step 6: Keep Growing

Once your crochet side hustle has steady sales:
● Add more products or variations.
● Explore digital products like patterns or courses.
● Scale with multiple crochet business ideas like teaching workshops or subscription kits.

FAQs About Starting a Crochet Business

Q: Can I make a full-time living crocheting?
A: Yes — but it usually starts as a side hustle and grows over time.

Q: Do I need a business license?
A: Check your local regulations. Many side hustles operate without one, but some cities require it.

Q: What sells best?
A: Plushies are very popular for new baby gifts. [Cows and jellyfish in particular!]

Final Thoughts

Learning how to start a crochet business is part passion, part planning. With the right strategy, you can turn your hobby into a thriving side hustle—or even full-time freedom.

If you’re serious about growing, my book Hooked on Growth walks you through the exact strategies I used to scale Simply Hooked into a thriving crochet brand.

✨ About the Author ✨

Marcy Gardner is the crochet designer behind Simply Hooked, where she creates beginner-friendly amigurumi patterns that help makers of all skill levels create adorable, giftable plushies.

With over 13 years of crochet experience, Marcy has taught hundreds of crocheters through her patterns, kits, and online courses.

Shop her fun and easy patterns today!

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