Step 1 – Choose a Product Category

A common mistake people make when starting their handmade business is trying to offer something for everyone. They don’t want to commit to:

• one product or category of product
• serving one type of customer
• focusing on one style

I get it. I made this mistake when I started my first handmade business too. But I discovered how much sales improve and how much easier running a business is when I narrowed down:

• what I made
• who I made it for
• the style I focused on

So we’ll start with your product category.

 

Why choosing a category helps your sewing business make money

There are many reasons to narrow down what you’ll sell to just one category or subcategory.

Time efficiency

Your time is valuable. And any time you spend working on your business should be factored into your prices so you can be paid for your time (and then some).

When you choose a category of product, you have a clear focus. And that focus will make it easier and quicker to make decisions.

Increase sales

When you stick to one category of product, you can build a product line that encourages multi-item sales.

Most people won’t buy a purse and an apron in the same purchase (products from two different categories: accessories and kitchen linens). But many people will buy an apron and oven mitts together (two products that fall under the same category: kitchen linens).

Increased profits

For each type of product you introduce, you must create a pattern, buy different materials, use different tools, write different descriptions, etc. When you focus on fewer types of products, you can make them quicker, buy materials in bulk and reduce costs, get more efficient at making them, etc. When your production costs go down, your profits go up.

Become an expert

The more time I spend making one type of product (or a select few products), the more I become an expert at it.

Experts can charge more.

Build a brand & be more memorable

Defining a brand is complicated when you can’t easily describe what you make.  “I sew bags, aprons, pillows, and hair accessories” makes it difficult to define the purpose your business serves, the feelings your products evoke or create, the collective style of your products, etc. On the other hand, “I make kitchen linens” offers a clear direction and creates a good foundation to build a brand on.

When you have a clear brand, it makes it easy for shoppers to remember it. When they remember your brand, they’re more likely to think of you when they need a new item and tell others about your business.

 

Questions to help you find the right category

It’s important to choose the right business from the start so you set yourself up for success. You don’t want to spend hours of your time and hundreds of dollars making products, setting up websites and social media accounts, printing business cards, etc., only to discover you don’t know where to find your customers, or you don’t enjoy making your products over and over, or that selling at craft shows really drains you.

If you’re not sure which category/subcategory of product you’d like to focus on, ponder the following questions:

1 – What are your passions and interests?

To build an authentic business that resonates with others, you should tap into your passions and interests.

It also makes it easier for you to become a leader.

For example, if I don’t like to bake, and I spend little to no time in my own kitchen, it’s going to be hard for me to know what people who do bake want and need.

On the other hand, if my kitchen is my favorite room to be in and I spend lots of time cooking, baking, and entertaining guests, I know what I look for in my kitchen linens and will easily be able to create products that other cooks/bakers are drawn to.

It also makes it easier to build an authentic business.

 

2 – Who do you want to serve?

The consumers you want to target will affect the product category you choose.

For example, if I want to target new moms, that may point me towards product categories/subcategories such as nursing & feeding (burp cloths, bibs, nursing covers, etc.) or crib bedding & blankets.

On the other hand, if I want to target bakers, that would align me with the “kitchen linens” category (e.g. aprons, oven mitts, tea towels, etc.).

Who you target should be someone you understand and can connect with.

Tap into your interests and hobbies.

If I love baking, I can relate to others who love to bake and know several places I can find them. I understand the types of products they need, the features they appreciate, the language they connect with (e.g. “proofing dough”), etc.

We’ll dive into choosing the right target market in the next step, but think about who you want to make products for when choosing your product category.

 

3 – What are your skills?

It’s also important, when you’re selling the items you make, that you can produce high-quality products.

If I’m a beginner sewist, jumping into making garments isn’t the best idea. There are so many advanced techniques used for sewing clothing, and many issues one can run into with fit.

As a beginner, I’d want to focus on items that are easier to sew and don’t require an accurate fit.

On the other hand, if I’m an advanced sewist, my skills and expertise won’t shine through when making simpler items such as scrunchies. I may also get bored down the road and want more of a challenge.

 

4 – What are the barriers to entry?

Some types of products require more work to break into the market.

• Laws and regulations – baby items are likely to have strict regulations to follow, labelling requirements, and perhaps even testing you must have done to prove your products are safe. That may be a category of product you want to avoid if regulations sound overwhelming.
• Competition – be sure to do a little research online, at local craft shows, and at local boutiques to see how much competition there is. Typically, the easier it is to make an item, the more competition you’ll have. For example, you may notice several small businesses in your city are making and selling scrunchies, but there are likely very few sewing diaper bags.
• Profits – to build a sustainable business, you’ll need profits. Some items are harder to make profitable than others. For example, quilts require a lot of material and time to make, which will make your prices much higher than those of big-box stores. Although you’re not directly competing with big box stores, consumers are aware of them and will have an acceptable price range in mind for common products. It will be harder to find consumers willing to pay $700+ for a handmade quilt when they can purchase one from Pottery Barn, Wayfair, or Anthropology for $200 – $300.

 

5 – How do you prefer to sell your products?

Some products are more conducive to selling online, while others are better for markets or boutiques.

Consider your preferred way of selling and the types of products that are suitable for that platform. For example:

• Online – most shoppers look for hard-to-find and specific items online. If they just want a basic oven mitt, they’ll probably pick one up at the grocery store. But if they’re looking for a “Christmas-themed oven mitt gift set”, they’re going to search online.
• Boutiques – if you want to sell your products through local boutiques, you’ll need to perfect your craftsmanship and your pricing. Retailers expect to pay wholesale pricing, which is typically 50% of retail prices. So if the products you’re thinking of selling don’t have healthy profit margins, selling through retailers isn’t an ideal sales channel.
• Craft shows – I’ve found that craft show shoppers tend to buy products in the $50 and under range. Products that are smaller, lighter, and easy to carry around the craft show also tend to be favoured. If you’d prefer to sell at craft shows, consider items that have lower price points, are small, easy to display, and easy to transport.

 

Examples of product categories for your sewing business

Here are a few examples that are ideal for a small business owner:

Accessories

• Bags and cases
  • cosmetic bags and personal care cases (makeup bags, makeup brush rollup cases, hair product bags)
  • school bags and cases (backpacks, pencil cases, laptop cases)
  • travel bags (jewelry roll-up bags, toiletry bags, packing bags)
  • parent bags (diaper bags, wet bags, baby item organization cases)
  • reusable bags (lunch bags, snack bags, reusable sandwich bags)
• Hair accessories (scrunchies, headbands, headscarves)
• Keychains, wallets & lanyards
• Men’s accessories (neckties & bowties, ascots, pocket squares)

 

Home & Living

• Kitchen linens
  • baking (oven mitts, aprons, hot pads, bowl covers)
  • kitchen decor (tea towels, drying mats, oven mitts)
  • table decor (placemats, table runners, hot pads, napkins)
  • reusable items (bowl covers, sandwich bags, popcorn bags, produce bags)
• Bedroom & living decor (pillows, cushions, quilts, throws, curtains)

 

Baby

• Nursery items (blankets, swaddles, changing pad covers)
• Accessories (hats, swaddles, mittens, hair bows)
• Feeding (burp cloths, bibs, placemats, snack bags)
• Clothing (rompers, dresses, bloomers)
• Soft toys and sensory items

 

Pet

• Cat toys (wands, catnip toys)
• Pet beds (beds, blankets, hammocks, teepees)
• Dog accessories (bandanas, collars, leashes, boots)
• Clothing

 

Clothing

• Tops & blouses
• Dresses & skirts
• Pajamas & loungewear
• Outerwear

*This list is not exhaustive

The newer you are to business, the smaller your category/subcategory should be.

For example, “kitchen linens” is likely too broad for me if I’m starting my first business. Instead, I may focus on a subcategory under kitchen linens, such as “baking items” (oven mitts, aprons, hot pads, bowl covers, etc.), or even just aprons and oven mitts would be a better place to start.

 

There are so many plates you must keep spinning as a small business owner, so you want to keep things as simple as possible.

Decide on a category or subcategory of product you’d like to make.