Most often, people think about starting their own business only when money problems arise.
It is much better to start a business with the expectation of success in the future, because every activity requires development. Some ideas do not require large expenses and huge investments of labor; you can start from scratch, sitting at home.
Knitting as a business has been used for a long time and is one of the win-win options.
It is unlikely that you will be able to achieve great success, except perhaps to promote yourself in the fashion industry and offer exclusive clothes. In any case, there was, is and will be a demand for such a product; the exclusive is valued all over the world.
Where to start a knitting business?
I would immediately like to challenge the opinion of skeptics who are sure that a person cannot beat competitors who produce knitted products on an industrial scale. This is a different direction, handmade is unique, and if you have talent, you won’t be able to repeat it.
Knitting at home has several significant advantages. Firstly, these are minimal costs for consumables. Secondly, there is no need to organize a workplace or purchase equipment.
Thirdly, income is not limited in any way. If you become popular in certain circles, there will be a demand for clothes, and due to this it is easy to increase prices.
Anyone can start a knitting business, the main thing is to learn how to use knitting needles. Is this business profitable enough? Feel free to visit Etsy, home to handcrafted artists from all over the world, and check out the prices:
A crocheted dress costs $200, which is almost 12,000 rubles. There will definitely be buyers for it, because even foreigners come here. Just imagine that in a month you will knit at least a couple of such dresses and be able to sell them. The average salary in the regions of the Russian Federation is in your pocket.
How much to charge buyers? Take expenses as a basis and multiply them by two. Come up with the rest of the markup yourself, only the master knows how much work and soul he put into the work.
To decide which items to knit, put yourself in the buyers’ shoes. What you would pay money for and what is trending now.
Also evaluate your skills, look at the results of your work and think about what you do better. It is advisable to make a large assortment so that you can then select the best-selling products.
3 components of success for a home knitting business
In all types of business, you need to look for secrets that allow you to quickly achieve tangible profitability. Organizing a business at home is not easy; you start from scratch and have to put all the responsibilities on your shoulders (sales, order processing, delivery, etc.).
To make it easier for you to develop, we have identified 3 important factors in the knitting business:
- Warmth and beauty. People buy knitted items to dress warmly, but they also want to look beautiful. Exclusive handmade items are bought for their appearance. Therefore, you need to focus on design, but at the same time use materials so that even in severe frost, your customer is satisfied.
- Punctuality. After making a few sales, they will definitely start contacting you with orders. It’s more convenient to work this way, and you also know in advance what exactly needs to be done and who will buy it. Be sure to look for clients on the Livemaster website. When setting deadlines for completing work, do everything to meet them, otherwise you may simply lose the client.
- Active advertising. Without it, it is generally impossible to achieve sales. You can knit as much as you like and sit at home without putting your clothes up for sale. Naturally, there will be no buyers. The easiest way to run advertising is on the Internet. Post announcements on boards and social networks. And if you are ready to invest, choose any advertising service (
Are you doing what you love at home, but don’t yet know if you can make money from knitting? Or do you have a store on Esti, but sales are not going well? I think now is the time to get inspired by ideas that other sellers have already implemented.
Explanation of the article
In this article I have collected 100 ideas for knitting products. All of them are sold on Etsy and find their buyer (this is if you are wondering where you can sell handmade knitted items online).
There are obvious items on the list, for example, clothing. But there are also a lot of completely unexpected ones. At least I myself was often surprised when I found this or that product on Etsy.
For each type of product, I wrote down the level of competition and the average cost of the product, which the website helped me determine. Competition, in this case, is the number of listings offered by an Etsy search for the search phrase found.
I would like to note that many products can be described with different phrases. And therefore the number of “competitors” will also change and differ from my figures.
The average cost of goods is influenced by a large number of schemes/patterns, which cost 3-5 dollars, and finished goods can be valued at several tens or even hundreds of dollars.
What is the difference between crochet and knit
There are two types of requests in the selection of products: crochet and knit. The first option is crochet. The second is knitting. Both these and other products sell well on Etsy.
The selection most often shows the most popular knitting option for these products (based on the frequency of requests for the search phrase on Google).
How much can you earn selling knitted goods?
Let's look at a few successful Etsy shops and try to figure out how much they make from their knitted items.
VendulkaM is a store from the Czech Republic that sells knitted patterns/patterns. About 200 sales per month with an average price of goods of about 5.5 dollars. That's $1,100 a month.
BUBUCrochet is a store from Bulgaria. About 100 sales per month at an average price of about $20. In total, the store owner earns about $2,000 a month from knitting.
ReddApple is a store from Turkey. About 20-25 sales per month with an average price of goods of about $30 bring the store owner approximately $650-700 monthly.
Plexida is a store from Greece. About 20 sales per month. The goods are quite expensive, for example, $120, but there are also $40. If you imagine that the average price for a knitted item is about $60-70, then the profit per month is $1,200.
Already from the examples of these 4 stores, it is clear that with the help of Etsy you can earn large amounts of money by knitting at home (crochet and knitting), $500 per month or more. For Russia, for example, this is about 30,000 rubles. And for Ukraine - 13,000 hryvnia. And this is more than the average salary in most non-capital regions.
The main thing is to choose the direction of the goods. Let's see what they sell and how they make money on Etsy.
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Cloth
1. Hats
Probably the most popular type of yarn products on Etsy.
Hats are sold in a variety of options: women's, men's, children's, babies, holiday, funny, with cartoon and movie characters.
Competition - 150,000 products. The average cost is $27.
2. Headbands
A small branch from the topic of hats. Competition for knitted headbands is much lower than for hats.
Competition - 25,000 products. The average cost is $17.
3. Gloves/mittens/mittens
Don’t think that mittens are worn only in cold countries, like Russia, Ukraine, etc.
Fingerless mittens/gloves are also very popular on Etsy.
Competition - 23,000 products. The average price is about $27.
4. Scarf
Scarves, like hats, are extremely popular on Etsy. In addition, scarves can be not only warm, but also decorative.
Competition - 100,000 products. The average cost is $40.
5. Snood
A scarf-tube or a scarf-collar - snood is not losing popularity.
Competition - 6,000 products. The average cost is $37.
6. Shawl
This knitted scarf can warm you up not only on winter evenings, but also in unpredictable summer weather.
Competition - 30,000 products. The average cost is $77.
7. Socks
Despite the fact that socks are both clothing and shoes, this accessory is worn by everyone - both big and small, both women and men.
Competition - 30,000 products. The average cost is $30.
8. Knee socks
But knee socks, compared to socks, are predominantly a female wardrobe attribute. Although in the modern world one cannot be so sure and exclude men from the number of owners of this item of clothing.
Competition - 2,000 products. The average cost is $45.
9. House slippers
House slippers can be an ideal gift for any occasion, don’t you agree?
Competition - 10,000 products. The average cost is $28.
10. Dresses
Competition - 45,000 products. The average cost is $125.
11. Wedding dresses
Competition - 2,500 products. The average cost is $270.
12. Pants
Did you know that leggings, leggings and pants can be not only knitted, but also knitted?
Competition - 15,500 products. The average cost is $37.
13. Swimwear/bikinis
Despite the fact that knitted swimsuits have proven themselves for a very long time, it is still not often possible to meet girls in this “outfit” on the beach.
Competition - 15,000 products. The average cost of a set is $50-60.
14. Sweatshirts
Competition - 22,000 products. The average cost is $60.
15. Skirts
Competition - 13,000 products. The average cost is $65.
16. Vests
Competition - 13,000 products. The average cost is $50.
17. Cardigan
Warm, large and cozy, a cardigan differs from a poncho in its design, although their purpose is approximately the same.
Competition - 40,000 products. The average cost is $125.
18. Poncho
Competition - 11,000 products. The average cost is $80.
19. Shorts
Knitted shorts can be either warm for autumn or winter. And openwork - for the summer, crocheted, for example.
Competition - 18,000 products. The average cost is $37.
20. T-shirts
Competition - 8,000 products. The average cost is $37.
21. Crop tops
Competition - 5,000 products. The average cost is $32.
22. Underwear
No, no, not a swimsuit, but underwear.
Competition - 4,000 products. The average cost is $30.
23. Tunic
Option for the beach or for hot summer walks.
Competition - 9,000 products. The average cost is $75.
24. Booties
Competition - 14,000 products. The average cost is $18.
25. Diaper panties
I thought for a long time about what to call this type of product. Either a cover or clothes for diapers. In the end I settled on this option.
Competition - 3,000 products. The average cost is $23.
26. Kippah/yarmulke
Traditional Jewish men's headdress.
Competition - 300 products. The average cost is $22.
27. Collar
Competition - 10,000 products. The average cost is $22.
28. Boot tops
Roughly speaking, a cuff that is worn on the legs.
Competition - 4,500 products. The average cost is $18.
Accessories
29. Bags
Large and small, over the shoulder and purses.
Competition - 19,000 products. The average cost is $50.
30. Backpacks
Competition - 1,300 products. The average cost is $45.
31. Yoga Mat Bag
Considering that yoga accessories are now more popular than ever, I think a mat cover will be very popular.
Competition - 160 products. The average cost is $30.
32. Wallet
Competition - 7,500 products. The average cost is $15.
33. Jewelry (earrings, bracelets, necklaces)
Competition - 110,000 products. The average cost is $35.
34. Tie
Yes, yes, who would have thought that they even knit ties!
Competition - 9,000 products. The average cost is $20.
35. Bow tie
Competition - 2,500 products. The average cost is $13.
36. Belts
Competition - 3,000 products. The average cost is $20.
37.
Competition - 2,200 products. The average cost is $16.
Things for the home
38. Blankets
Competition - 30,000 products. The average cost is $96.
39. Blankets for child car seats/chairs
40. Carpets/rugs
Competition - 3,700 products. The average cost is $100.
41. Mug holders
Competition - 2,200 products. The average cost is $11.
42. Clothes for the teapot/teapot
Competition - 3,500 products. The average cost is $22.
43. Hot pads/potholders
Competition - 800 products. The average cost is $13.
44. Napkins/plate coasters
Competition - 350 products. The average cost is $22.
45. Cosmetic bags
Competition - 3,000 products. The average cost is $25.
46. Covers for chair legs
Competition - 60 products. The average cost is $13.
47. Ottomans
Competition - 800 products. The average cost is $95.
48. Pillowcases
Competition - 800 products. The average cost is $45.
49. Kitchen towels
Competition - 5,000 products. The average cost is $11.
50. Napkin holder
Competition - 200 products. The average cost is $13.
51. Afghan blankets
Competition - 9,500 products. The average cost is $90.
52. Curtains
Competition - 2,500 products. The average cost is $60.
53. Toilet cover
Competition - 200 products. The average cost is $16.
Decor
54. Paintings
Competition - 3,300 products. The average cost is $55.
55. Wall decor
Competition - 5,500 products. The average cost is $40.
56.
Competition - 6,000 products. The average cost is $16.
57. Garlands
Competition - 3,200 products. The average cost is $20.
58. Lamps
Competition - 800 products. The average cost is $40.
59. Mandalas
Competition - 3,000 products. The average cost is $35.
60. Portraits
Competition - 500 products. The average cost is $100.
61. Dream catchers
Competition - 3,000 products. The average cost is $40.
Miscellaneous
62. Hair clips
Competition - 6,300 products. The average cost is $10.
63. Soft toys
Competition - 96,000 products. The average cost is $22.
64. Rattles
Competition - 3,500 products. The average cost is $18.
65. Beard
Competition - 400 products. The average cost is $24.
66. Dolls
Competition - 31,000 products. The average cost is $28.
67. Clothes for dogs
Competition - 2,000 products. The average cost is $22.
68.
Competition - 360 products. The average cost is $20.
69.
Competition - 900 products. The average cost is $43.
70. Bookmarks
Competition - 2,600 products. The average cost is $7.
71. Mermaid tail
Competition - 700 products. The average cost is $43.
72.
Competition - 120 products. The average cost is $9.
73. Flowers
Competition - 96,000 products. The average cost is $25.
74. Bouquets
Competition - 1,500 products. The average cost is $35.
75. Letters
Competition - 600 products. The average cost is $12.
76. Names
Competition - 1,800 products. The average cost is $28.
It is believed that knitting as a business is not a very profitable business. By doing hand knitting, you can earn about 20 thousand rubles in a month. But there are supporters of the opinion that with proper organization and active promotion of goods, income can be very high. It is important to offer original and high-quality products, which means perfectly processed seams and the presence of various decorative elements. And, of course, the success of the knitting business is influenced by the originality of the models produced.
Many people believe that knitting is a business tied to certain climatic conditions. But in the Internet era, this factor has lost its decisive importance.
Case registration
Before registering a knitting business, it is recommended to study the market and find your niche in it. Based on this, determine the scale of the enterprise and, accordingly, the form of its registration. If your plan includes making exclusive items to order, it is recommended not to rush into registration, but to first try yourself in this business. And only if the customer base starts to grow, you will have to hire someone to help, does it make sense to register your own company.
Room
Again, if your business plan involves making a small number of custom items, you may be able to limit yourself to working from home. If you have a more ambitious plan, you can buy or rent a small room of 10-15 square meters. m, where you can sell a certain number of finished products and accept orders for new ones.
Staff
Regardless of whether you have a studio space or not, if you are building a serious business, your plan must include staffing. Finding craftsmen for the knitting business is not difficult, just leave an ad on the Internet, or look for those who exhibit their work yourself.
But if you want to get to the top of the knitting business, your staff should definitely take advanced training courses. Every year new technologies and features of making things from knitwear appear, which you need to know about and which you need to be able to make.
There are also various technological solutions for the production process. In some cases, craftsmen make products themselves and then hand them over to the studio. In others, a technological chain is established between personnel, when some employees are engaged in the manufacture of parts, while others are engaged in their assembly. Moreover, some entrepreneurs are limited to only one part of the production process - the manufacture of parts. And the assembly is given to experienced large studios. It is believed that this approach ensures the highest quality product possible.
Payment for personnel services also depends on the organization of the process. Thus, knitters who work from home usually earn approximately $50-70 per month. If we are talking about a large studio, then the salary plan should include $100-300 for each master.
Knitting needles and yarn
In fact, to work you will need yarn and knitting needles. As a rule, each craftsman has his own set of knitting needles. But yarn should be included in your spending plan - you will provide it for knitters.
As a rule, products are made from wool yarn, of which there is a huge variety on the market today in terms of quality, manufacturer and characteristics. The head of the company is simply obliged to understand what kind of wool, what characteristics it has and for what purposes it is used.
Therefore, when choosing wool for your products, you need to start from the range of products you plan to produce. As practice shows, the most popular knitted items are:
- shawls;
- scarves;
- mittens;
- mittens;
- socks;
- down scarves;
- sweaters;
- sleeveless vests.
To speed up the knitting process, you can purchase a special knitting machine. The simplest option costs about 10 thousand rubles. This machine makes fabric, which then needs to be carefully sewn.
Pricing for products
The cost of a product consists of the following components:
- wages for a knitter;
- cost of yarn and other consumables.
The average markup is about 100%. But you should always focus on the average price on the market and the product itself.
Profit calculation
- wages for a knitter – 50-600 rubles;
- the cost of 500-600 g of yarn is 500-600 rubles.
In just a month, about 15 such products can be made, provided that about 5 knitters work. After paying the necessary deductions, about 20 thousand rubles remain. profit. This is provided that there is no need to pay rent.
Business advertising
Today it is not enough to use traditional advertising sources. Posting advertisements and placing them in thematic print publications, of course, can bring clients, but this will be a negligible percentage compared to the return the Internet provides.
The easiest way is to post photos of your work with an offer to buy on free message boards. But at the same time, it is important to take very high-quality photographs - the attractiveness of your products to the client depends on this.
*Calculations use average data for Russia
1. PROJECT SUMMARY
This business plan discusses the creation of our own full-cycle production of knitted clothing. The production will be located in a city with a population of more than 1 million people. The company will specialize in the production of original knitted jerseys for men, women and children.
The production area of the enterprise will be 65 square meters. meters. For the arrangement, the necessary knitting, sewing and auxiliary equipment will be purchased in the amount of 798.1 thousand rubles. The total volume of start-up investments will be 1.4 million rubles. The success factors of the enterprise can be called:
increased demand for knitted wool products due to fashion;
originality and modernity of manufactured products;
work for a wide target audience: different genders and ages;
affordable prices with high quality products.
The planned monthly turnover of the enterprise is 925 thousand rubles. Net profit - 311 thousand rubles. Return on sales - 33.6%. The main indicators of the project's effectiveness are given in Table. 1 business plan.
Table 1. Integral performance indicators
2. COMPANY DESCRIPTION
For a long time, knitted clothing in the public consciousness was associated with rather simple and unpresentable clothing, suitable for wearing only at home. However, in recent years the situation has changed radically: knitted clothes have become the highlight of fashion shows and entered the everyday wardrobe of many people, including those with high incomes. If previously the practical factor came first - convenience and comfort, now consumers value the design of knitwear no less. The brightness and originality of the author's idea often become the decisive pros and cons in choosing a purchase.
This business plan discusses the creation of our own full-cycle production of knitted clothing. The production will be located in a city with a population of more than 1 million people. The enterprise will specialize in the production of original knitted knitwear. These will be original designer sweaters, coats, cardigans, tops, scarves and other knitted products. The basis of the product range will be products for women and children (about 70%), the rest will be knitted goods for men.
The organizational and legal form of business will be individual entrepreneurship (IP). The business is opened from scratch, the initiator of the project is a person who previously had experience in the production and sale of designer knitted products at home. The products will be sold in small wholesale and retail through our own online store.
Ready ideas for your business
The production will be located within the city in a rented premises with an area of 65 sq. m. meters. For the arrangement, the necessary knitting, sewing and auxiliary equipment will be purchased in the amount of 798.1 thousand rubles. The total volume of start-up investments will be 1.4 million rubles. In Table. 2 business plans present all the starting costs for opening a workshop.
Table 2. Investment costs of the project
|
NAME |
AMOUNT, rub. |
|
|
Equipment |
||
|
Equipment purchase |
||
|
Intangible assets |
||
|
Creation of an online store |
||
|
Software |
||
|
Working capital |
||
|
Working capital |
||
|
Purchase of raw materials |
||
|
Total: |
1 401 600 |
|
3. DESCRIPTION OF GOODS AND SERVICES
The clothes that will be produced by the company will not only be warm and comfortable, but will also be able to emphasize the individuality of the owner due to a wide selection of designer patterns. All products will be created so as not to restrict a person’s movement and at the same time emphasize his style. Raw materials for production (yarn, accessories) will be purchased in bulk from a local supplier working directly with several dozen manufacturers, which will ensure the purchase of various types of products in a “one window” mode. The list of manufactured products and variable costs are given in Table. 3 business plans. It should be noted that in the future, with access to wider production capacities, the range of manufactured products will be expanded.
Table 3. Nomenclature and variable costs
|
№ |
PRODUCT GROUP |
COSTS PER UNIT, rub. |
COSTS PER UNIT ON AVERAGE, rub. |
TRADE MARKUP ON AVERAGE, % |
PRICE RANGE |
AVERAGE COST OF UNITS |
|
Knitted sweater for children (1-14 years old) |
181-636 |
408,5 |
600-1600 |
1100 |
||
|
Men's regular knitted sweater |
545-886 |
715,5 |
1200-2600 |
1900 |
||
|
Long knitted men's sweater |
600-1000 |
1400-3600 |
2500 |
|||
|
Women's regular knitted sweater |
430-727 |
578,5 |
900-2300 |
1600 |
||
|
Women's long knitted sweater/cardigan |
454-836 |
900-3600 |
2250 |
|||
|
Women's knitted top |
360-460 |
1700-2600 |
2150 |
|||
|
Women's knitted coat |
1500-3500 |
2500 |
3500-8900 |
6200 |
||
|
Children's knitted coat |
450-2100 |
1275 |
1500-4500 |
3000 |
||
|
Children's knitted scarf |
120-140 |
300-450 |
||||
|
Women's knitted scarf |
140-170 |
350-550 |
||||
|
Men's knitted scarf |
140-170 |
350-550 |
||||
|
Knitted hat |
50-100 |
170-390 |
4.SALES AND MARKETING
Our products will be aimed at people of both sexes and all ages. The main emphasis will be on female audiences aged 18-35 and children. A typical representative of our target audience is a solvent person who strives to keep up with fashion, is interested in new and unusual things, and has a good sense of humor. Such a person is ready for good clothes, but at the same time demands the highest quality and comfort from them at a reasonable and affordable price.
Sales will be carried out in small wholesale to retail clothing stores, as well as retail through our own online store. At the same time, it is planned to promote on social networks: product samples will be presented in the company’s communities on Instagram, VKontakte and Odnoklassniki. It is also planned to participate in specialized clothing fairs and knitwear fairs.
5. PRODUCTION PLAN
The production will be located in a rented premises with an area of 65 square meters. meters. 40 sq. meters will be used directly for the knitting shop, 10 sq. meters will be occupied by a sewing room, the rest of the area will be for utility rooms, a warehouse, and a bathroom.
For production, the necessary equipment will be purchased in the amount of 798.1 thousand rubles. A detailed list is given in Table. 4 business plans. Preference will be given to universal equipment, namely fifth-class knitting machines, which will make it possible to easily expand the line of knitted products in the future. Some of the knitting machines will be electronic, which will allow you to create precise patterns, automatically knit a pattern, create and edit patterns on a computer, etc. All knitting equipment and components come with a 1-year seller's warranty. Installation and basic training are included in the price.
Table 4. List of equipment
|
№ | Name | Characteristics | Price, rub. | Quantity, pcs. | Cost, rub. |
Production equipment |
|||||
Knitting machine Silveer Reed SK840/SRP60N | Vehicle class: 5 Number of fountains: 2 Number of needles: 200 Programming method: Computer Programmable pattern repeat: up to 200 needles Country of development: Japan Country of origin: China | 121000 | 121000 |
||
Knitting machine Silveer Reed SK840 | Vehicle class: 5 Number of fountains: 1 Number of needles: 200 Programming method: Computer Up to 200 needles Country of development: Japan Country of origin: China | 82200 | 82200 |
||
Knitting machine SilverReed SK280/SRP60N | Vehicle class: 5 Number of fountains: 2 Number of needles: 200 Programming method: Punch card Programmable pattern repeat: 24 needles Country of development: Japan Country of origin: China | 92000 | 276000 |
||
Kettelny machine Hague 280H | Manual knitting machine Hague 280H class 5 | 54900 | 54900 |
||
Openwork carriage LC580 for Silver Reed SK840 | Carriage for knitting openwork on computer machines of the 5th class. | 35750 | 35750 |
||
Silver Reed YC-6 Color Changer | A machine for knitting multi-color fung weaves, Norwegian and double jacquard. For knitting machines SK280, SK840. Thread feeding system for 4 threads. | 24100 | 24100 |
||
Jacquard carriage Silver Reed RJ-1 for Silver Reed SRP60N | Jacquard carriage Silver RJ-1 for elastic attachment for knitting machines Silver 60 and Silver reed SRP60N class 5. | 18600 | 18600 |
||
Carriage Silver Reed AG24 (Intarsia) for SK280, SK840 | Carriage for knitting large patterns with many colors in one row without broaches on the wrong side of the product. | 6000 | 6000 |
||
Yarn winder | Yarn rewinding device | 2900 | 5800 |
||
Sewing machine Janome JB 1108 | Electromechanical sewing machine | 8000 | 16000 |
||
Other equipment | Overlockers, irons with steam generators, ironing table, etc. | 45000 | 45000 |
||
|
Auxiliary equipment |
|||||
Computer | Personal Computer | 27800 | 27800 |
||
Knitting machine table | Knitting machine table | 7990 | 39950 |
||
Sewing machine table | Sewing machine table | 6000 | 12000 |
||
Chairs | Chairs | 1500 | 12000 |
||
PC desk | PC desk | 6000 | 6000 |
||
Other | Other auxiliary equipment | 10000 | 15000 |
||
Total: | 798100 |
||||
In addition to what is listed, you will need specialized software necessary to track the process of knitting patterns and work on creating projects with complex designs. The cost of the software will be 25,500 rubles.
Knitted clothing is a seasonal product and is in greatest demand from October to April, which will be taken into account in the production plan of the enterprise. During the off-season, production will be partially reoriented to the spring-summer assortment, while revenue targets will include a 30% reduction in planned levels. Planned production indicators are given in Table. 5 business plan.
Table 5. Planned production indicators
|
Product |
Average planned sales volume |
Revenue, rub. |
Variable costs |
|
Children's knitted sweater |
|||
|
Men's regular knitted sweater |
|||
|
Long knitted men's sweater |
|||
|
Women's regular knitted sweater |
|||
|
Women's long knitted sweater/cardigan |
|||
|
Women's knitted top |
|||
|
Women's knitted coat |
|||
|
Children's knitted coat |
|||
|
Women's knitted scarf |
|||
|
Men's knitted scarf |
|||
|
Children's knitted hat |
|||
|
Knitted hat |
6. ORGANIZATIONAL PLAN
The organizational and legal form of doing business will be individual entrepreneurship (IP). The form of taxation is simplified (6% of income). The initiator of the business will be an individual entrepreneur who previously had experience in selling knitted products of his own production in small volumes. In addition to his responsibilities for managing the company, his responsibilities will include sales management. The company's staff will include 8 people, including 5 knitters, 2 seamstresses and a design programmer. The wage fund and staffing table are shown in Table. 6. Accounting will be outsourced. Responsibilities for maintaining sewing machines will be carried out by service mechanics, whose labor will be paid under a contract. Production is scheduled to begin in August, before the start of the sales season.
Table 6. Staffing and wages fund
|
Job title |
Salary, rub. |
Number, persons |
Payroll, rub. |
|
|
Knitting machine operator |
||||
|
Destinator programmer |
||||
|
Total: |
184000 |
|||
|
Social contributions: |
||||
|
Total with deductions: |
239200 |
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7. FINANCIAL PLAN
Investment costs for opening an enterprise will amount to 1.4 million rubles. The main amount of funds will be used for the purchase of equipment (798.1 thousand rubles), the purchase of raw materials (308 thousand rubles) and the formation of a working capital fund (200 thousand rubles). The structure of start-up costs is shown in Table. 2 business plans.
Variable costs include expenses for the purchase of raw materials and transportation costs. Variable costs are presented in detail in Table. 7 of this business plan. Fixed expenses include rent, accounting, depreciation, and website hosting (see Table 8). Depreciation of fixed assets is calculated using the straight-line method over a service life of 10 years.
The financial plan for a three-year perspective is presented in Appendix 1.
*Calculations use average data for Russia
How to choose your niche in knitting? How much can you earn, where to buy materials, what difficulties may arise? In this article we tried to answer 9 main questions about the knitting business.Today, handmade products are positioned on the market as a unique and high-quality product, which attracts buyers. In 2017, an increase in demand for handmade goods was recorded. According to experts, knitted items take second place among the best-selling handmade products. Every year, the fashion for knitted products is strengthening on all fronts: in clothing, accessories and even home decor. Therefore, the question arises: is it possible to make money from knitting and how profitable such a business can be?
As in any type of business, the success of this area depends on a correct assessment of market demand, quality of work and competent promotion. Another important component of the knitting business is the uniqueness of the offer. Handmade knitted goods have been popular for many years now, during which time the niche has managed to be filled with a variety of goods. The leaders among knitted products are: sweaters, hats, scarves and snoods, socks and mittens, bags, blankets and bedspreads. Knitting provides endless creative options. You can knit with crochet, knitting or simply with your hands; you can use various materials, and, of course, specialize in knitting various products. Before planning a business, it is better to narrow your niche and try not to knit “everything”. For example, concentrate on decorative items, or children's items, or fashion accessories, or women's clothing. Your positioning and the formation of your target audience depends on this choice.
Question No. 1. How to choose a niche in the knitting business?
What to knit? How to assess the level of demand for a particular product? When choosing your knitting niche, you can follow one of the following paths: knit products that are in demand on the market; or enter the market with a unique offer. The first option seems more reliable because it takes into account consumer demand. But in this case, you will face tough competition and the threat of going unnoticed among the abundance of offers. A unique offer, on the contrary, will allow you to stand out and occupy a free niche. But the difficulty lies in the fact that it is not always possible to accurately estimate the demand for such products.We offer you 50 ideas for a knitting business. All types of products are sold on the international trading platform Etsy and find their buyer. The list consists of both classic products (clothes, blankets) and creative items that are not yet available in abundance on the market. For convenience, all ideas are combined into 6 categories.
1. Clothes: sweaters, dresses, swimsuits, vests, cardigans, panchos, cropped tops. 
2. Accessories: hats, headbands, mittens, scarves and snoods, shawls, socks, slippers, bags and backpacks, wallets, bow ties. 
3. Things for the home: blankets and rugs, carpets, “clothing” for mugs and teapots, chair covers (for the seat or legs), potholders, napkins for serving, poufs, pillowcases, figured pillows, curtains, “mermaid tail” blanket, storage baskets, organizers , covers for door handles, flowerpots, hammocks. 
4. Decor: paintings, panels, garlands, lamps, dream catchers, mandalas, “stuffed” animals, knitted figurines.
5. Children's products: booties, panties for diapers, doll toys, rattles, mobiles for cribs, finger toys. 
6. Miscellaneous: clothes for dogs and cats, beds for pets, headbands for sleeping, cases for glasses.
This selection clearly demonstrates how diverse the knitting business can be.
When choosing a niche, you should evaluate the demand for the product. If you decide to focus on producing only teapot covers or bookmarks, you are likely to encounter implementation difficulties. Agree, these products are specific enough to expect high sales. The most rational thing would be to expand the niche, which will feature goods in high demand and some unique offer that can distinguish you in the market and attract an audience. For example, if you designate a niche as “knitted home decor,” you can sell storage baskets, plant pots, and chair covers. Or you can narrow your niche to “knitted textiles” - and sell blankets, pillowcases and shaped pillows. The category “knitted accessories” can include cases for glasses, bookmarks, wallets, etc.
To decide on a niche, you can study the offers on the market. Browse the Internet for handicraft shops selling knitted items. There are several of the most popular platforms where handmade goods are sold. These are Etsy, Crafts Fair and Instagram. Look at successful profiles, analyze their work (assortment, offer, marketing, pricing policy, etc.). There you can also get inspiration and ideas on how to manage your social media account. networks.
Question No. 2. How much can you earn from knitting?
One of the main questions in the knitting business is whether it is possible to make money from it? It is difficult to name a specific amount, since it is formed under the influence of many factors: occupied niche, pricing policy, advertising effectiveness, production volume, etc.
Let's look at some inspiring examples.
US craftswoman Heidi May from Thevelvetacorn sells mainly knitted hats. Her store gained popularity thanks to children's snoods with ears of various animals. In the first 4 years of operation, the store's earnings amounted to more than $300 thousand.
But a needlewoman from Turkey, known under the nickname dudush, sells comfortable knitted bags and laptop cases. The number of sales per year is about 160 orders, which provides annual revenue of about $5,000.
Over the course of several years, Atlanta-based needlewoman Yoko Gibran has sold more than 3 thousand hand-knitted scarves. Now she earns about 140 thousand dollars a year.
Among the successful examples of the knitting business there are Russian names. Daria Nikulina came up with knitted educational toys. The source of her profit is the sale of master classes on knitting similar toys. According to the founder of the knitting “info business”, this business brings a stable income, which is enough to provide for the family.
Another Russian needlewoman is Svetlana Turova. Her work was glorified throughout Russia by her rainbow knitted cats. In the first year, net profit was only 50 thousand rubles. But during its existence, the project managed to grow significantly. Today, the needlewoman is building a workshop and expanding her business and range. In the project’s online store you can purchase a variety of knitted products: interior pillows-toys, socks, sweaters, hats and snoods, amulets belts, etc.
In general, most master knitters agree that the average monthly income from knitting is 30-40 thousand rubles.
Ready ideas for your business
All successful craftsmen say that in order to make money from your hobby, you need to treat it like a business. You need to create a brand that should be promoted using social networks. We need to establish a process for delivering goods. You need to come up with your own style, a unique offer to stand out in the market. And, like any startup, you need to be willing to work hard and be inspired.
Question No. 3. Where can I learn knitting or improve my skills?
When planning a knitting business, you already need to have at least basic knitting skills. However, even an experienced needlewoman may face the need for training. For example, if you want to learn how to operate knitting machines or a certain knitting technique. Today you can easily find training courses for knitters, including online courses. The cost depends on the program, the number of academic hours and the form of classes (group/individual). On average, the cost of a basic knitting course will cost 6 thousand rubles, and individual training in machine knitting (30 academic hours) will cost about 15-20 thousand rubles. You can also receive training using video courses - the approximate cost of a full set of video lectures is 3 thousand rubles.
Question No. 4. How to open a knitting business?
To open a knitting business from scratch, you need to go through the following steps:
Study market demand and supply, analyze competitors
Determine the niche in which you will work
Purchase the necessary equipment and materials
Complete training if required
Prepare several products - initial assortment
Register an individual entrepreneur
Create online accounts for your workshop: Etsy, Crafts Fair, Instagram, VKontakte - you can use several platforms at once to promote your products
Develop a marketing strategy and launch active promotion of accounts.
This is a quick guide to starting a knitting business. Each of the points will be discussed in detail below.
Question No. 5. How much money do you need to open a knitting business?
This is one of the most popular questions. And the answer to it may be different - someone plans to knit at home, and someone wants to open a full-fledged business hiring several knitters. This example will look at a home business with minimal investment.
The main expense item is the purchase of equipment and consumables. The list of equipment depends on the knitting technique. You can get by with sets of knitting needles, hooks, etc. But if you are planning large production volumes, you need to purchase a knitting machine. The average cost of a knitting machine varies between 20-40 thousand rubles (there are models more expensive than 100 thousand rubles that are used in production). Professional sets of knitting needles will cost 6-8 thousand rubles. Yarn and accessories for the first products will cost about 4 thousand rubles. The state fee for registering an individual entrepreneur is 800 rubles. Developing your own logo and creating branded tags for products will cost, on average, 6 thousand rubles. The cost of advertising promotion on social media. networks will be about 7 thousand rubles (do not save on advertising, the success of your business depends on its effectiveness).
Thus, the total cost of opening a knitting business will range from 26 thousand rubles to 70 thousand rubles.
Question No. 6. Where to buy materials?
Yarn for knitting can be purchased in handicraft stores or in an online store, which will save money. In online stores, prices for goods are usually 10-15% lower. To save additional money, you can purchase yarn during discounts. Typically, the demand for yarn decreases in the summer.
The lowest prices for yarn from the manufacturer. Factories sell their products with a minimal margin. But at the same time, you can only buy a large batch, and the purchase may require documents from the organization to formalize the contract. It is also worth considering transportation costs - when delivering large quantities of goods, the cost of transportation can be significant.
Another option to save on materials is to jointly purchase yarn. In this case, several people gather, one order is placed at a minimum cost, and transportation costs are divided among everyone. At the same time, it is more profitable to purchase yarn in packages.
But don’t rush to save on yarn at the expense of its quality. For example, on Chinese websites you can purchase budget yarn options, but the quality itself suffers from this. You should only purchase yarn for knitting from trusted suppliers. To decide on suppliers, read reviews, ask a question on the knitting forum, what yarn they recommend. Buy skeins of yarn from different manufacturers. To test yarn, knit 10*10 cm samples from different varieties. Choose the most suitable one.
Question No. 7. How to calculate the cost and set the price for knitted products?
To calculate the cost of a knitted product and set an objective price for it, you can use several methods that simplify the calculations. The average cost of a knitted product is 400-500 rubles, and its selling price is 2000-2500 rubles.
When calculating the cost, firstly, you will need a table with the coefficients of “complication” of knitting. Secondly, you can use a calculator to calculate the cost of a knitted product, which is offered by many specialized resources. Thirdly, the cost of a knitted product can be set based on the following parameters:
Cost of yarn;
Average market price of identical products;
Total costs: (yarn+delivery)*coefficient. complexity;
Time spent on work.
When determining the cost, the color of the yarn is also taken into account - it is more difficult to work with dark yarn, because the eyes get tired faster.
Another option proposed by needlewomen is expressed in the formula:
(Price of 1 skein of yarn)*(Yarn consumption per size in skeins)+(Yarn meter per 100g)*(Yarn consumption per size in skeins)*(price of knitting 1 meter of yarn)+(Cost of accessories)*2+(Transport + other expenses)=(Cost of knitted product)+Delivery/dispatch
Ready ideas for your business
But there is no single, generally accepted formula for calculating the cost of a knitted product. Each master has the right to independently determine how to make calculations and what price to set for his products. The main thing is to correlate the prices set with the average market value and the purchasing power of consumers (average wages in the region).
Question No. 8. How to look for buyers of knitted products? How to conduct online sales?
These two questions are combined because in the modern world the most effective platform for trading handmade products is the Internet. Therefore, you should look for buyers there. To do this, you need to create an account for your handmade store on different social networks.
Before looking for buyers, you need to decide on your target audience. For example, if you knit fashionable cardigans and sweaters, the target audience will be young girls. If you knit children's clothes, then you should focus on young mothers.
To find your buyer, you should be active on social networks, hold sweepstakes, and run advertising to promote your account. According to statistics, products from the handmade category are among the top three best-selling on Instagram. Therefore, the promotion of a knitwear store will be considered using the example of this site.
To promote your Instagram account you need:
Combine different promotion methods: mofollowing, advertising with bloggers, targeted advertising, using thematic hashtags and keywords in the profile description. You can learn more about the recommendations for promoting your account in various online sources. Today there are many articles on this topic. Also an important tip: write down the cost of your products!
Take care not only of the visual, but also of the informative content of your profile. Beautiful photographs of knitted products are good, and if they are accompanied by interesting texts, this is doubly good! You can post reviews about your work, show your work process, talk about interesting cases related to your work. For inspiration, look at Instagram user with the nickname @the_equisetum - they sell unusual soft toys, where each post is accompanied by bright, memorable text.
Provide feedback to your subscribers: answer questions, conduct surveys in your account. The art of selling is, first of all, the ability to communicate with potential clients.
Use different platforms for promotion. This will increase your audience reach: someone will find you on Instagram, and someone will accidentally find your store at the Crafts Fair through a search engine.
By following key promotion tips, you can quickly reach a specific audience and find your first clients. Remember that one of the most powerful means of advertising is word of mouth, so quality work is the best advertising for your business.
Question No. 9. What difficulties may arise when working in the knitting business?
Opening a knitting business is not difficult. It is much more difficult to make it profitable. Achieving the goal may pose the following difficulties:
No orders. This risk can be reduced with the help of effective advertising and competent pricing policy;
Client's refusal to pay for work. To reduce this risk, when working to order, you must always take an advance payment, at least in the amount of the cost of materials. When sending a finished product to another city, arrange the parcel by cash on delivery or with full prepayment.
Ready ideas for your business
High competition in the field. To compete with many masters, you need to enter the market with a unique offer, set more affordable prices, or launch a powerful advertising campaign. And, of course, produce quality products.
Summarizing all of the above, we can identify the following advantages and disadvantages of the knitting business.
Advantages and disadvantages of the knitting business
You can turn your hobby into a profitable business. This will become possible with the right approach to organizing your business. The popularity of knitted products increases the likelihood of your success. This segment is very developed abroad, which indicates the prospects of business in Russia. The main thing is desire, patience, hard work and honesty towards your clients.
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