If you’ve ever wondered how to take your love of crochet and turn it 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 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 side hustle
● 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 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 side hustle — something you can manage part-time but profitably.
Step 1: Get the Legal & Financial Stuff Set Up First
I know — this isn’t the fun, creative part. But getting it out of the way early makes everything smoother.
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 side hustle 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 (if selling in-person)
● 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.
Pro tip: Consider opening two accounts — one for income, and one to stash away money for quarterly taxes so it’s ready when you need it.
Plan for Taxes
● Set aside 20% of profits for federal taxes
● If your state has income tax, set aside another 4–5%
● Pay quarterly estimated taxes to avoid a big bill in April
Step 2: Choose Where to Sell
Picking the right sales channels is key to getting your work in front of paying customers.
Etsy
● Built-in audience actively searching for handmade items
● Easy to set up and start selling
● Use initial orders from friends/family to generate early sales & reviews
Craft Markets
● My personal bread-and-butter for side hustle income
● Holiday craft markets can be goldmines for crochet sellers
● Look for events labeled “craft market” (not farmer’s markets — buyer intent is usually different)
Local Facebook Groups
● Post photos of your work in community groups
● Include your Etsy link or website
● Great for custom orders, teaching opportunities, and connecting with local shops
Step 3: Make It Easy to Buy From You
Accept Cards & Digital Payments
● Get a Square reader (swipe, chip, and Apple Pay options)
● Set up Venmo for quick digital payments
● Have a cash float (with $5s and $1s) if you accept cash
Business Cards
● Design in Canva → print through Vistaprint
● Include a QR code linking to your Etsy shop
● Hand out with every order and at every market
Step 4: Market Your Crochet Side Hustle
You can’t just make beautiful items — people have to find you.
Social Media
● Instagram for behind-the-scenes & lifestyle shots
● Pinterest for long-term traffic to your shop/blog
Email List
● Start collecting emails from day one
● Offer a discount code to encourage sign-ups
Photography
● Invest in quality product photos — natural lighting, uncluttered backgrounds, high resolution
● Your first Etsy image is your biggest selling point
Step 5: Avoid Common Pitfalls
● Underpricing: Price for profit, not just to cover yarn
● Overcomplicating taxes: Keep money organized from the start
● Selling everywhere: Focus on a few channels and do them well
Step 6: Keep Growing
Once your side hustle has steady sales:
● Add more products or variations
● Explore digital products like patterns or courses
● Increase your market presence
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
Starting a crochet business is part passion, part planning. The steps in this guide will help you transition smoothly from hobbyist to side hustler, without getting overwhelmed.
💌 Ready to start? Explore my Beginner Amigurumi Patterns here.
As your side hustle grows, you can scale by introducing higher-value products, expanding into digital offerings like patterns and courses, and building a loyal customer base through consistent marketing. If you’re serious about taking your crochet business further — beyond weekend markets and a few Etsy sales — my book Hooked on Growth walks you through the exact strategies I used to grow Simply Hooked into a thriving creative business. It’s packed with practical tips, mindset shifts, and step-by-step guidance to help you scale your passion into a sustainable income.
✨ 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.
