Making it big on Etsy is all about creativity — making the products you sell and funding your business. If you’ve ever thought about selling your crafts or handmade art for money, you’re going to need some funding to get started.
Since the beginning of the pandemic, Etsy sellers have seen significant growth. With more people avoiding shopping in person and turning to online shopping for just about everything, there’s never been a better time to open an Etsy shop.
Before you can become an Etsy superstar, you’ll need plenty of inventory to build up your shop. Remember, your store is an investment in your future, and enough funding can set the stage for ongoing success.
Here are our top tips to get the money you need to start a profitable Etsy business:
1. Build Business Credit
If you’re an established business, you may already have some business credit you can tap into to get started on Etsy. If you’re not, now is a great time to start your business and then transition it to Etsy.
To start building business credit, you’ll need a business name and all the paperwork to become a bona fide business. Once established, you’ll also want to get a business credit card to use for all your materials purchases, bills, and operating expenses. This will help you build business credit that will allow you to take out loans to grow your business.
2. Get a Small Business Grant
A small business grant helps business owners grow their company. These grants come in many amounts from many different places. They’re often the most desirable way to get funding for your business because you don’t have to pay them back.
Corporations like FedEx hold contests for small business grants each year. Do a simple search online to find companies and organizations that offer these grants and learn how to apply for one. The Small Business Association (SBA) is also an excellent resource for finding available grants and other funding options.
3. Start a Crowdfunding Campaign
Angel investors and crowdfunding aren’t just options for tech firms. Any business trying to get its feet off the ground can benefit from an attractive crowdfunding campaign. Kickstarter is a popular platform that aspiring Etsy store owners have used to grow their funding.
Once you start your campaign, don’t forget to share it with your family and friends (and ask them to do the same). You never know who might be willing to donate to the cause. Even $5 donations can quickly add up!
Bonus: Reinvest in Your Etsy Business!
Once the sales start coming in, it’s tempting to pocket all your earnings as profit. But until your store becomes super-profitable, it’s a good idea to reinvest all or most of your earnings into business growth (e.g., inventory, ads, etc.). It’s cheaper and less risky than taking out a loan. Plus, the more money you contribute, the faster you’re likely to grow.
Setting up a suitable method of tracking your inventory is also a great idea - this will ensure that you have a good grasp of your costs and profit margins. You can also then optimize your purchasing and take advantage of bulk discounts. Craftybase Inventory + Bookkeeping is designed specifically for handmade sellers and features expense tracking, COGS, profitability, and pricing guidance.