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Etsy Business Plan

Etsy is a well-known eCommerce site where you can buy anything handcrafted, including baby outfits and personalized jewelry. With over a million active sellers and over $1 billion in sales, it is a thriving online economy.

If you are creative & ambitious enough and thinking of opening an Etsy shop to earn money from your hobby, then you are at the right place. To start an Etsy shop, you will need a plan first.

Need help writing a business plan for your Etsy business? You’re at the right place. Our Etsy business plan template will help you get started.

Free Business Plan Template

Download our free Etsy business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write an Etsy Business Plan?

Writing an Etsy business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

• Introduce your business: Start your executive summary by briefly introducing your business to your readers.
• This section may include the name of your Etsy business, when it was founded, etc.
• Market opportunity: Summarize your market research, including market size, growth potential, and marketing trends. Highlight the opportunities in the market and how your business will fit in to fill the gap.
• Products: Highlight the products you offer your clients. The USPs and differentiators you offer are always a plus.
• For instance, you might make homemade jewelry, art pieces, etc.
• Marketing & sales strategies: Outline your sales and marketing strategies—what marketing platforms you use, how you plan on acquiring customers, etc.
• Financial highlights: Briefly summarize your financial projections for the initial years of business operations. Include any capital or investment requirements, associated startup costs, projected revenues, and profit forecasts.
• Call to action: Summarize your executive summary section with a clear CTA, for example, inviting angel investors to discuss the potential business investment.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

• Handmade goods
• Vintage items
• Digital products
• Custom products
• Home and garden, etc.
• Describe the legal structure of your Etsy business, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.
• Owners: List the names of your company’s founders or owners. Describe what shares they own and their responsibilities for efficiently managing the business.
• Mission statement: Summarize your business’ objective, core principles, and values in your mission statement. This statement needs to be memorable, clear, and brief.
• Business history: If you’re an established business, briefly describe your business history, like—when it was founded, how it evolved over time, etc.
• Additionally, If you have received any awards or recognition for excellent work, describe them.
• Future goal: It’s crucial to convey your aspirations and vision. Mention your short-term and long-term goals; they can be specific targets for revenue, market share, or expanding your services.

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

• Target market: Start this section by describing your target market. Define your ideal customer and explain what types of products they prefer. Creating a buyer persona will help you easily define your target market to your readers.
• For instance, if your Etsy business is of jewelry, then ladies’ luck is all you need.
• Market size and growth potential: Describe your market size and growth potential and whether you will target a niche or a much broader market.
• Competitive analysis: Identify and analyze your direct and indirect competitors. Identify their strengths and weaknesses, and describe what differentiates your products from them. Point out how you have a competitive edge in the market.
• Market trends: Analyse emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.

Here are a few tips for writing the market analysis section of your Etsy business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific products that will be offered to customers. To write this section should include the following:

• Handmade Jewelry
• Cute little keychains
• Customized products, etc
• Describe each service: Provide a detailed description of each product you provide, including the process involved, and the time required.
• It can contain specifics on the product categories you’ll sell, the materials you’ll utilize, the custom choices you’ll provide, and any other pertinent information.
• Quality measures: This section should explain how you maintain quality standards and consistently provide the highest quality products by using top-notch materials, or by providing excellent packaging services, etc.

In short, this section of your Etsy business plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

• Unique selling proposition (USP): Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.
• For example, using eco-friendly material that lasts longer than any other material can be the USP of your business.
• Pricing strategy: Describe your pricing strategy—how you plan to price your products and stay competitive in the local market. You can mention any discounts you plan on offering to attract new customers.
• Marketing strategies: Discuss your marketing strategies to market your services. You may include some of these marketing strategies in your business plan—social media marketing, Google ads, email marketing, content marketing, etc.
• Sales strategies: Outline the strategies you’ll implement to maximize your sales. Your sales strategies may include offering promotions & discounts, offering excellent customer service, etc.
• Customer retention: Describe your customer retention strategies and how you plan to execute them. For instance, introducing loyalty programs, discounts on bulk purchases, personalized service, etc.

Overall, this section of your Etsy business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your Etsy business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

• Staffing & training: Mention your Etsy business’s staffing requirements, including the number of employees. Include their qualifications, the training required, and the duties they will perform.
• Operational process: Describe your production procedure and how you’ll carry out orders submitted through your Etsy shop. It should contain information about your plan for obtaining supplies, creating your goods, packaging them, and delivering them to clients.
• Equipment & machinery: Describe your plan for managing your inventory levels, including the tools or software you’ll use to keep checks on stock levels and place new orders for supplies. It should also cover your strategy for handling inventory.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your Etsy business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

• Founder/CEO: Mention the founders and CEO of your Etsy business, and describe their roles and responsibilities in successfully running the business.
• Key managers: Introduce your management and key members of your team, and explain their roles and responsibilities.
• It should include key executives including their education, professional background, and any relevant experience in the industry.
• Organizational structure: Explain the organizational structure of your management team. Include the reporting line and decision-making hierarchy.
• Compensation plan: Describe your compensation plan for the management and staff. Include their salaries, incentives, and other benefits.
• Advisors/consultants: Mentioning advisors or consultants in your business plans adds credibility to your business idea.
• So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your Etsy business, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

• Profit & loss statement: Describe details such as projected revenue, operational costs, and service costs in your projected profit and loss statement. Make sure to include your business’s expected net profit or loss.
• Cash flow statement: The cash flow for the first few years of your operation should be estimated and described in this section. This may include billing invoices, payment receipts, loan payments, and any other cash flow statements.
• Balance sheet: Create a projected balance sheet documenting your Etsy business’s assets, liabilities, and equity.
• Break-even point: Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.
• This exercise will help you understand how much revenue you need to generate to sustain or be profitable.
• Financing needs: Calculate costs associated with starting an Etsy business, and estimate your financing needs and how much capital you need to raise to operate your business. Be specific about your short-term and long-term financing requirements, such as investment capital or loans.

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your Etsy business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample Etsy business plan will provide an idea for writing a successful Etsy plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our Etsy business plan pdf .

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Frequently Asked Questions

Why do you need an etsy business plan.

A business plan is an essential tool for anyone looking to start or run a successful Etsy business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your Etsy company.

How to get funding for your Etsy business?

There are several ways to get funding for your Etsy business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your Etsy business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your Etsy business plan and outline your vision as you have in your mind.

What is the easiest way to write your Etsy business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any Etsy business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Etsy Business Plan Template: Prepare For Selling On Etsy

Are you considering turning your hobby into a business using the Etsy marketplace?

Well, you’ll be joining a platform that gets around 81.9 million buyers these days looking for handmade goods just like yours.

Before you dive in though, we invite you to lower the tools for a moment and funnel that creative flow into a top-notch Etsy business plan. It’s crucial to understand exactly what your business does, its identity and how it’s going to function so that when it comes to making costly decisions, you have a road map to guide you.

If you put some groundwork and goals in place from the beginning, then making decisions later on can be based on a bigger picture.

If knowing what to include doesn’t come naturally that’s ok, we’re here to help outline what goes into great business plans, why they’re so important and how to get cracking.

In this guide on preparing to sell on Etsy:

Table of Contents

Are you ready to take the guesswork out of your etsy accounting.

Etsy is a great place to sell unique products, and it’s perfect for creative entrepreneurs who aren’t necessarily excited about accounting. Discover the easy way of looking after your Etsy finances so that you can spend more time doing what matters most to you.

Let’s get started.

Why You Need An Etsy Business Plan

A good business plan for Etsy shops should answer questions around who, what, why, how and when for your business, so that as the inevitable bumps in the road arise, you can fly over them.

A plan will start your business off in the right direction, it will give you measurable goals and a feel for your progress.

What you can do with a business plan

• Understand your competition and target market.
• Plan for cash flow and price your products accordingly.
• Create and track a marketing strategy.
• Develop goals and objectives and measure successes.
• Pitch your business to investors or business partners.

The content in a business plan will vary depending on the type of business, so we’ve prepared a guide specially curated for Etsy.

Before Starting Your Etsy Business Plan

Competition is rife online, including on Etsy .

You need to research before anything else to understand who and what your business will be, and where it fits into the bigger picture.

See what your competitors are doing, where you slot in and what niche you could fill.

Only by finding your point of difference will you be able to forge your own path and following.

Creating An Etsy Business Plan

Exciting! You’re at the first step in your Etsy career, congratulations.

This step is all about your brand identity. Creating this will give you the inspiration and roots you need on which to plan everything else.

Giving your store a personality will help customers connect with it, remember it and hopefully, keep returning to and talking about it!

Once you have a good idea of who you are, you can start figuring out what you want to do and how.

What to include in your plan

Executive summary.

Sum up your business goals and strategy in one or two lines. A sort of introduction to your store and your business plan.

Business description

Answer questions like:

• What is the purpose of your business?
• Why did it start, what problems does it solve?
• What makes it different from others?

Product description

Next up, talk about your product or product line. Think about including these areas:

• What is it and how is it sourced or made?
• How many items will be available for sale at any one time? Think about the time it takes to make the product yourself or to source.
• Are there any products you’d like to sell in the future or variations you’d like to add?

Your business takes more than just you to run it. Here, explore what you might need and want to do with regards to:

• Storing inventory.
• Fulfilment options.
• Packaging materials.
• Studio or facilities for making your products.

Bear in mind whether these solutions are scalable too, if you wish to grow.

Hopefully you’ve had a little dig into what your competitors are doing by this point. This should inspire marketing ideas and things to try out with your target audience.

To plan your marketing activity, think about the following questions:

• How does your brand interact with customers?
• Where do your customers spend time?
• How can you reach your customers in those spaces?
• What are your customers most interested in or concerned about?
• Can you play to those interests in your marketing?

Remember the basics too. Etsy will have its own SEO algorithms so learn what it looks for and leverage this free advantage.

It might be 6th on this list but it should be a top priority: Managing your money. Just some of the things that you’ll need to account for as an Etsy seller are:

• Listing and subscription fees.
• Fulfilment, shipping and packaging.
• Sales tax and VAT or GST if selling outside of the US.
• Returns and reimbursements.
• Costs of goods sold and profit margins.
• Costs of materials, studio facilities and equipment.

Be realistic about your time and production volumes. Can you produce enough product to sell and make a profit? If not, what can you automate or take away from your tasks to give you more time?

Crunch some numbers to find out whether your business idea is viable from the start. We highly recommend turning to a specialized ecommerce accountant for this step, if not for the long-term. Find one from our trusted directory here .

They can also help advise you about loans if you think you might need one to get started.

Finally, set some goals!

The best way to measure progress and most importantly, to feel like your business is succeeding and going somewhere is to set yourself some milestones.

These can be short-term or long-term and be simple or complex.

The key is to make them SMART : S pecific, M easurable, A ttainable, R elevant and T ime-based.

Don’t worry if you don’t meet them because each time, you’ll learn what worked and didn’t work, and adjust your goals more accurately as you go.

You’re off to a good start, but keep it going!

There we have it, you’ve now become a knowledgeable Etsy business planner and should be about ready to open your Etsy shop.

And don’t let all that hard work planning go to waste! With the right automation, you can free up your time to keep making and growing your business.

The place to start? Your accounts, the lifeblood of your business.

Including Accounting In Your Plan And How A2X Can Help

As you’ve probably gathered by now, a sole business owner has rather a lot on their plate. And one who makes their own products? They have even more.

Accounting is something that could get pushed to the side, but this can’t happen for a business to survive and thrive.

Fortunately, automation exists designed to take these tasks off your to-do list, ensuring that they still meet industry standards and provide you with accurate, reliable numbers.

Use A2X to integrate your Etsy store with QuickBooks Online or Xero today!

Do I need an Etsy business plan?

You don’t need a business plan to set up an Etsy shop, but it’s a great first step in your Etsy seller career. It enables you to make sound decisions based on long-term goals, track your progress and centralize your strategy.

How much does it cost to set up an Etsy shop?

It’s free to set up a shop on Etsy. Fees are charged when you list an item and when the item is sold.

Before you sell, Etsy does require a credit or debit card number and your checking account info (account and routing number).

How much does it cost to have a business on Etsy?

There is a fee of $0.20 for each item you list on Etsy, and when your item sells, a transaction fee of 5% is charged based on the sale price.

Also on the blog

• The Etsy Accounting Hub
• Etsy Integration Guide: Simplify Your Business
• Ecommerce Accounting and What Makes It So Different
• Ecommerce Accounting Principles
• Find an Ecommerce Accountant

Read similar posts

• Etsy Sage Integration: How to Set it Up
• eBay Business Plan Template [Highly Actionable]
• eBay Selling Guide: Strategies For Success
• eBay Growth Guide: How To Increase eBay Sales
• How To Save Time With eBay Automation [Sellers Guide]

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Etsy Business Plan Template

Written by Dave Lavinsky

Etsy Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their Etsy businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through an Etsy business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is an Etsy Business Plan?

A business plan provides a snapshot of your Etsy business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Business on Etsy

If you’re looking to start an Etsy business, or grow your existing Etsy business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your Etsy business in order to improve your chances of success. Your Etsy business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Etsy Businesses

With regards to funding, the main sources of funding for an Etsy business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings is the other most common form of funding for an Etsy business.

Finish Your Business Plan Today!

If you want to start an Etsy business or expand your current one, you need a business plan. Below are links to each section of your Etsy business plan template:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of Etsy business you are operating and the status. For example, are you a startup, do you have an Etsy business that you would like to grow?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the Etsy industry. Discuss the type of Etsy business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of Etsy business you are operating.

There are numerous shop and product categories represented in the Etsy marketplace. The most popular Etsy categories in 2020 were:

• Home & Living : this type of Etsy shop focuses on a range of products for home and garden, with categories such as decor, furniture, bedding, kitchen & dining, outdoor & gardening, office, and more.
• Art & Collectibles: this type of shop focuses on paintings, photographs, sculptures, fiber art, and collectibles such as figurines and coins.
• Jewelry & Accessories: this type of Etsy shop retails a variety of products like hats, scarves, sunglasses, bags, necklaces, rings, earrings, and bracelets.

In addition to explaining the type of Etsy business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers, number of positive reviews, number of products sold, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the Etsy industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the Etsy industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your Etsy business plan:

• How big is the Etsy industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your Etsy business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your Etsy business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: Millennials, Gen X, Gen Z, Baby Boomers.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of Etsy business you operate. Clearly, Gen Z would respond to different marketing promotions than Gen X, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other Etsy businesses.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes brick and mortar specialty shops or department stores, or other online marketplaces, such as Amazon or Facebook. You need to mention such competition as well.

With regards to direct competition, you want to describe the other Etsy businesses with which you compete.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Find out key things about them such as:

• What types of customers do they serve?
• What types of products do they sell?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide higher quality or trendier products?
• Will you provide product options that your competitors don’t offer?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

For an Etsy business plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of Etsy company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to the products in your main Etsy shop, will you provide customization, financing or any other services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Promotions : The final part of your Etsy marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Reaching out to websites to partner with
• Social media marketing

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your Etsy business, including fulfilling orders, researching and designing new products, logistics, store updates (photos, descriptions, options, etc.).

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sell your 1,000 th product, or when you hope to reach $X in revenue. It could also be when you expect to expand your Etsy business to offer new products or products in a new category.  

Management Team

To demonstrate your Etsy business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in managing Etsy businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in ecommerce or successfully running small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you maintain a product inventory, or will you operate on a just-in-time fulfillment basis? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your Etsy business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing an Etsy business:

• Location build-out including design fees, construction, etc.
• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include pictures and descriptions of your product range, or outline your production process.  

Putting together a business plan for your Etsy business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the Etsy industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful Etsy business.

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how Growthink’s professional business plan consulting services can create your business plan for you.

Other Helpful Business Plan Articles & Templates

Etsy Business Plan Template [Updated 2024]

Etsy Business Plan Template

If you want to start an Etsy business or expand your current Etsy business, you need a business plan.

Fortunately, you’re in the right place. Our team has helped develop over 100,000 business plans over the past 20 years, including thousands of Etsy business plans.

The following Etsy business plan template and example gives you the key elements you must include in your plan. In our experience speaking with lenders and investors, the template is organized in the precise format they want.

You can download our business plan template (including a full, customizable financial model) to your computer here.

Etsy Business Plan Example

I. executive summary, business overview.

[Company Name], is an e-commerce company that owns a shop under the Etsy platform. The Company retails high-quality handmade and vintage items, as well as craft supplies. The Company aims to become one of the highest-selling shops on the Etsy platform in the United States.

Products Served

[Company Name] will provide the following products:

Customer Focus

[Company Name] will serve individuals who shop online. The Company will primarily offer its products to:

• Millennial Women
• Gen X Women
• Gen Z Women

Management Team

[Company Name] is led by [Founder’s Name], who has been crafting jewelry and décor for over [xx] years. While [Founder] has never sold her products on an ecommerce platform, she has a loyal and rapidly growing following. She will have the help and support of her business partner, [Insert Name], who will handle the marketing and admin tasks for the company.

Success Factors

[Company Name] is qualified to succeed due to the following reasons:

• There has been significant growth in general demand for unique, handcrafted jewelry and décor over the past few years. In addition, [Founder’s name] is a maker with some notoriety, and her clients have provided highly positive feedback pointing towards a national demand for her products.
• The management team has a track record of success in the e-commerce business.
• Easy access to the internet will be a major success factor for the company.
• The e-commerce business is a proven, successful business in the United States.

Financial Highlights

[Company Name] is currently seeking $200,000 to launch its shop on the Etsy platform. Specifically, these funds will be used as follows:

• Professional photography and listing service: $10,000
• Working capital: $190,000 to pay for marketing, salaries, equipment and supplies until [Company Name] reaches break-even.

Top line projections over the next five years are as follows:

II. Company Overview

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Who is [Company Name]?

[Company Name], is an e-commerce company that owns a shop under the Etsy platform. The Company retails high-quality handmade and vintage items, as well as craft supplies. The Company’s primary product line includes jewelry, bags, clothing, and home décor. The Company aims to become one of the highest-selling shops on the Etsy platform in the United States.

[Company Name]’s History

[Founder’s Name] is an entrepreneur with a passion for hand-crafting unique jewelry, accessories, and décor. [Company Name] will establish itself as a well-respected business on the Etsy platform.

Upon surveying her existing customer base and finding a potential location for ecommerce expansion, [Founder’s Name] incorporated [Company Name] as a jewelry and décor production company on [date of incorporation].

Since incorporation, the company has achieved the following milestones:

• Developed the company’s name, logo, and website
• Created the list of hand-crafted products
• Determined equipment and inventory requirements
• Began recruiting key employees with experience in ecommerce or in artisanal crafts.

[Company Name]’s Products/Services

Iii. industry analysis.

[Company Name] competes against small, individually owned brands in the industry and major regional or national chains. The coronavirus pandemic supercharged Etsy’s growth, from $818 million revenue to $1.72 billion over the past three years. Etsy also doubled active buyers in that time period. Last year, the number of active sellers on the Etsy.com platform stood at 4.3 million and the site had 81.9 million active buyers who had bought goods through the platform.

Going forward, the hand-crafted goods market is forecast to reach a value of $448.5 billion in the next five years, registering a CAGR of 10.8%. Moreover, North American hand-crafted goods market reached a value of around $242.4 Billion. With the emergence of online retailing and proliferation of various e-commerce websites, the accessibility to artisanal products has significantly increased. Consumers can now buy artisanal items with the click of their smartphones and have them shipped anywhere in the world. Moreover, social media and the internet have made it more convenient for craftsmen to directly access their target markets.

IV. Customer Analysis

Demographic profile of target market.

[Company Name] will serve individuals with an eye for unique, artisanal jewelry and décor, who shop online.

Customer Segmentation

The Company will primarily target the following customer segments:

• Millennial Women – this demographic comprises the most significant market for [company name]. These women are comfortable making ecommerce purchases, and are established in their careers, which gives them disposable income.
• Gen X Women – this demographic is more likely to purchase higher-end products online, as their incomes are typically higher than the other target demographics for this industry.
• Gen Z Women – these women are digital natives, and are the most comfortable buying products online. While their disposable incomes are typically lower, the volume of purchases made by this age group make them a significant market.

V. Competitive Analysis

Direct & indirect competitors.

Competitor 1 The most widely recognized eCommerce platform around the world, Competitor 1 is accepted as the gold standard for corporate brands and small business owners alike. With Competitor 1, one can take advantage of an eCommerce platform that offers a website builder with hundreds of templates, all of which can be customized with the brand’s specific logos, images, videos, and text. With vast customization control and strong analytics, Competitor 1 offers the most powerful eCommerce functionality on the company’s list while also being user-friendly enough for most beginners to manage.

Competitor 2 Competitor 2 is an online marketplace that deals in artistic products of all kinds developed by independent experts. It not only provides a personalized platform for sellers to display their handmade goods but also helps them in creating a unique website/online gallery for the same. Competitor 2 provides a wide range of templates that can be modified with a simple bit of training. It accepts sellers of authentic artistic items on their platform for displaying their products, which they then allow the customers to buy. Competitor 2 ideally makes money through commissions from sales, but it also has paid plans for sellers wishing to utilize more resources on their platform.

Competitor 3 Competitor 3 is an online marketplace for artists that supports only US-based entrepreneurs. The seller needs to have US citizenship to sell on the platform, but the buyer ideally can be from anywhere in the world. Essentially, this C2C company focuses on promoting handmade products made by Americans for everyone! Competitor 3 provides a unique website for its customers. Its website builder is so easy to understand that even a novice can readily navigate through its technicalities.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

• Management : The Company’s management team has xx years of business and marketing experience that allows them to market and serve customers in an improved and sophisticated manner than the competitors.
• Relationships : Having lived in the community for xx years, [Founder’s Name] knows all of the local community, media, and other influencers. Furthermore, she will be able to draw from her existing personal and professional relationships to grow her client base.
• Great service at an affordable price : The array of hand-crafted products offered by [Company Name] nearly equals the most premium positioned competitor, [Competitor Name]. However, [Company Name] will offer these products at a much more affordable price.

VI. Marketing Plan

The [company name] brand.

[Company name] seeks to position itself as an upper-middle-market competitor on the Etsy platform. Customers can expect to receive premium-quality, authentic, hand-crafted items. The [Company Name] brand will focus on the company’s unique value proposition:

• Offering a unique range of products
• Good packaging, which can enhance the safety of the products
• Affordable prices
• Providing excellent customer service and support.

Promotions Strategy

[Company Name]’s promotions strategy to reach the audience includes:

Pre-Opening Events Before opening a shop under Etsy platform, [Company Name] will organize pre-opening events designed for prospective customers, local merchants and press contacts. These events will create buzz, and awareness for [Company Name] in the area.

Advertisement Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. The Company will advertise its products in popular magazines and news dailies. Obtaining relevant placements in industry magazines and journals will also help in increasing brand visibility.

Local Publications [Company name] will announce its opening several weeks in advance through publicity pieces in multiple local newspapers and publications. It will run regular advertisements to maintain exposure to relevant markets.

Social Media Marketing Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The Company will use social media to develop engaging content in terms of different handmade products and customer reviews that will increase audience awareness and loyalty. Engaging with prospective clients and business partners on social media platforms like Facebook, Instagram, Twitter, and LinkedIn will also help understand changing customer needs.

Word of Mouth Marketing [Company name] will encourage word-of-mouth marketing from loyal and satisfied clients. The Company will use recommendations and word-of-mouth marketing to grow the customer base through the network of its existing customers. The Company will be incentivizing its existing customer base to encourage their friends to come and try their unique, hand-crafted products.

Special Offers Offers and incentives are an excellent approach to assisting businesses in replenishing the inevitable customer churn each year. The Company will introduce special offers to attract new consumers and encourage repeat purchases, which will be quite advantageous in the long run.

Pricing Strategy

[Company Name]’s pricing will be moderate, so customers feel they receive great value when purchasing products listed in the Etsy shop. The customers can expect to receive quality products at a more affordable price than what they pay on a luxury e-commerce platform.

VII. Operations Plan

Functional roles.

To execute on [Company Name]’s business model, the company needs to perform several functions, including the following:

Service & Administrative Functions

• Product creation
• Logistics and Operations Manager
• Sales manager
• Customer service
• General & administrative functions including legal, marketing, bookkeeping, etc.
• Inventory management

VIII. Management Team

Management team members.

[Company Name] is led by [Founder’s Name], an entrepreneur with a life-long passion for hand-crafting unique jewelry, accessories, and décor. She has been crafting jewelry and décor for over [xx] years. While [Founder] has never sold her products on an ecommerce platform, but she has a loyal and rapidly growing following.

[Founder] graduated from the University of ABC where she majored in art. She has also earned an MBA in Sales and Retail Management from XYZ University.

Hiring Plan

[Founder] will serve as the Chief Executive Officer. In order to launch its shop on the Etsy platform, the company will need to hire the following personnel:

• Inventory and Quality Assurance Manager
• Sales and Marketing Manager
• Shipping and Logistics manager

IX. Financial Plan

Revenue and cost drivers.

[Company Name]’s revenues will come from the sale of products on the Etsy platform. The major costs for the company will be production and shipping costs, and salaries of the staff. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market.

Capital Requirements and Use of Funds

[Company Name] is currently seeking $200,000 to launch its shop under Etsy platform. Specifically, these funds will be used as follows:

• Design and build-out: $10,000

Key Assumptions

  5 Year Annual Income Statement

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How to write an Etsy Business Plan

If you’re creative, have an entrepreneurial mindset, and want to sell your crafts on Etsy, writing an Etsy business plan is the first step.

Do you want to start an Etsy shop but don’t know how? You can make the process of writing an Etsy business plan fun and can do it within one hour. You want to create a strategy for selling your products to the world, so ensure that it’s an enjoyable experience. Ensure that your plan is also creative like you.

On this page:

What is an Etsy Business Plan?

What should be your business plan outline, why do you need a business plan, what should be included in your etsy business plan.

It’s a written document in which you provide an overview and the future of your business. Whether starting a physical business or an online business, there must be a business plan.

It should describe your business strategy and your targeted goals. Moreover, it would help to tell where you’re now and where you want to go. Consider the following things:

• How can you make a profit through your business and build assets?
• Where do you see your business in the next 3 to 5 years?
• How many growth chances are there in your target market?

Anyone wanted to start a new business must have a business plan. It’s a vital tool for existing and established companies if they’re going to move in a new direction.

In your business plan outline, you must be clear about what you want to achieve and how will you achieve it? Moreover, you must be clear about your marketing and operational plans.

Business Overview

It means you must have a clear business strategy and action plan. Mention the following things in your business plan outline:

• What are your goals, and what will be your action plan to achieve them?
• How will you make money and increase resources?

When you are clear about your long-term goals, you can take steps towards success and keep your business on track. Moreover, consider your competitors in your target market and determine why your business will succeed and others might fail. A competitor analysis can better indicate where you stand and which innovations can help you grow your business?

Know your business best

Your business plan will indicate that you understand your business and the target market. You must be clear about how to deal with the potential obstacles and what are your expectations in the coming years? Your business plan must be a helpful tool to:

• Focus and develop ideas
• Find your business priorities
• Explore different options to find opportunities and get the most out of them

Be clear about your Funding Requirements

You need to have a clear financial plan because all the banks want you to have a detailed business plan for loans. You can convince banks and other potential investors to fund and grow your business when you have an in-depth plan in place. So, when you’re clear about your funding requirements, you can have a clear financial plan.

Plan for Hiring employees

When you plan to start a business, you can’t do it alone. You need to hire employees to expand your resources and increase your assets. This plan can help you attract new senior management, distributors, and business partners. You must be clear about:

• Your company’s vision
• Company’s mission statement
• Why does someone need to work with you

As mentioned earlier, it’s a detailed and written document that describes your business. It should cover business objectives, sales, marketing strategies, and financial predictions. A clear business plan can help you to:

• Set business goals
• Spot potential obstacles
• Clarify your business idea
• Measure your progress

Moreover, you must have a business plan to get investors or a loan from the bank. It also helps employees, suppliers, and customers to support you.

Let’s include a brief detail of what should be included in your Etsy business plan. Ensure that it’s under 140 characters and keep the Twitter example in mind.

• Value Proposition – Think, if you have only 140 characters, then what would you tweet to describe your business? It will encourage you to share only something unique about your business.
• Market Need – If you’re unsure about the market need, you can’t market your product. You can speak with potential customers to obtain feedback and understand what they like about your product. It will give you an answer to market needs.
• Your Solution – Describe why your product is unique and when someone would ask, what do you sell? What will be your answer?
• Target Market – Be clear about your target market: whom you want to buy your product, for example, gender, age, shopping habits, and geography.
• Competition – Identify where you and your buyers will buy if your products are out of stock. Knowing your customer is essential. Knowing your competition is also crucial.
• Funding Needs – You need loans from banks to purchase material. Be sure about how to use these funds and how much time will you take to pay the debt?
• Sales Channel – Here, Etsy is your selling platform. You can sell at a local boutique, but your goal should be to have wholesale accounts. You must have multiple sales channels.
• Marketing Activities – How will you market your products? You can advertise on a design blog or use Etsy Search ads for marketing. You need to perform different activities for each market segment.
• Financial Projections – How much will it cost you to make and market your products? How many sales can you generate in a specific time? Answer to these questions can help you set financial projections.
• Milestones – What you have achieved so far and what you want to accomplish in the future. It will help you to stay on track.
• Management Team – Let your employees know why you’re the right person to lead this venture. Hire employees that you need to run your business.

The Etsy Business Plan Checklist

This Etsy business plan checklist can help you a lot:

• Business Proposition – A brief description of your business can be even one sentence.
• Market Need – Which problems will your product solve by being in the market?
• Your Solution – Description of your products, and you can also add photos.
• Competitor Analysis – Who else is selling the same products in the market? How are your products better than theirs?
• Target Market – Who will be your potential customers?
• Budgeting and Forecasting – How much is your product’s manufacturing cost, and how much are you expecting to sell this year? Moreover, what will be your profit margin?
• Marketing – Which channel will you use, and what will be your marketing strategy?
• Milestones – What are your business goals, and what do you want to achieve in the next few years?
• Management Team – Do you have the guts and expertise to lead a team?
• Funding Resources – It’s optional because you might already have enough capital and not need any sponsor or bank to grow your business.

Pia has consulted for a number of digital startups and small businesses in Asia before coming to the UK. Pia writes about a wide range of SaaS and B2B products, including trends and issues on e-commerce, accounting and customer service software. She’s also covered a wide range of topics in business, science, and technology for websites in the U.S., Australia and Singapore.

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Etsy Shop Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Internet Based Industry

Do you want to start an Etsy shop and need to write a plan? If YES, here is a sample Etsy shop business plan template & feasibility report.

If you are into handmade or vintage items and craft supplies and you are considering taking your business to customers beyond your location, then one of your options is to open a shop in an Etsy online platform. Etsy shops just like most online businesses , thrive on creativity, branding and good business skills.

Any aspiring entrepreneur can open a shop on the Etsy platform, and as long as they are creative, they can get people to promote their brand. The starting size of this type of business doesn’t really matter as long as the business is built on the right foundation and with the right product supplies.

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If you are truly serious about starting your own Esty business , then the best place to start is to draft a good business plan. A business plan is the blue print of your business; it is a business document that can aid you to successfully set up and manage the business.

It is not enough to just write a business plan for the sake of writing one, your business plan should be able to pass reality check; you must put relevant facts, figures, and statistics into consideration when writing your business plan. Below is a sample Esty shop business plan template that can help you to successfully write your own with little or no difficulty.

A Sample Etsy Shop Business Plan Template

1. industry overview.

Etsy is an American e-commerce website that is focused on handmade or vintage items and craft supplies. These items fall under a wide range of categories, including jewelry, bags, clothing, home décor and furniture, toys, art, as well as craft supplies and tools.

All vintage items must be at least 20 years old. The site follows in the tradition of open craft fairs, giving sellers personal storefronts where they list their goods for a fee of US$0.20 per item. It is important to state that creating a shop on Etsy is free; however, each listing that is posted in the shop costs $0.20. Each listing will remain on the shop’s page for a maximum of 4 months, or until someone buys the product.

The prices of products are set by the shop owner, but Etsy claims 5 percent of the final sale price of each listing. Shop owners are sent a bill at the end of every month detailing the fees Etsy has charged them, and they have until the 15th of the following month to pay the fees. Sellers can choose which payment options to offer buyers, including credit cards, debit cards, and PayPal, among others.

Available statistics shows that as of December 31, 2018, Etsy had over 60 million items in its marketplace, and the online marketplace for handmade and vintage goods connected 2.1 million sellers with 39.4 million buyers. At the end of 2018, Etsy had 874 employees.

In 2018, Etsy had total sales, or Gross Merchandise Sales (GMS), of US$3.93 billion on the platform. In 2018, Etsy garnered a revenue of US$603.7 million and registered a net income of US$41.25 million.

The platform generates revenue primarily from three streams: its Marketplace revenue includes a fee of 5 percent of final sale value, which an Etsy seller pays for each completed transaction, on top of a listing fee of 20 cents per item; Seller Services, Etsy’s fastest growing revenue stream, includes fees for services such as “Promoted Listings”, payment processing, and purchases of shipping labels through the platform; while Other revenue includes fees received from third-party payment processors.

Opening a shop on Esty platform is indeed a profitable venture and they are always improvising on how to accommodate more shop owners under their platform. Which is why in November 2016, Etsy disclosed that it paid US$32.5 million to purchase Blackbird Technologies, a startup that developed AI software used for shopping context/search applications.

2. Executive Summary

Edna Elverson® Vintage Shop, Inc. is an international ecommerce company that owns a shop under Esty platform. Our corporate head office will be located in Miramar Ranch North, San Diego – California. We have been able to secure a large warehouse in a strategic part of town that will be converted to our handmade crafts production factory.

We were able to out rightly buy over the facility with the help of our bank and support from family and friends. Edna Elverson® Vintage Shop, Inc. is focused on retailing handmade or vintage items and craft supplies from our Esty shop.

These items fall under a wide range of categories, including jewelry, bags, clothing, home décor and furniture, toys, art, as well as craft supplies and tools. All our vintage items are at least 20 years old. Our clients can comfortably view our products in a 3 D rotational view.

Our business goal is to become one of the leading and highest selling shop under the Esty brand in the United States and we will make sure that every product that are listed in our Esty shop can favorably compete with the best brands in the industry.

Our workers are going to be selected from a pool of talented handmade craft makers and designers in and around San Diego – California and also from any part of the world as the business grows. We will make sure that we take all our workforce through the required training that will position them to meet the expectation of the company and to compete with leading online vintage brands in the United States.

We have put plans in place to build an interactive and user – friendly website and a state-of-the-art handmade crafts factory in San Diego – California, which is why we have plans to outsource production to third parties and to use shipping or fulfillment services. Our factory will be well equipped and we will ensure that we follow the trend in the industry.

Edna Elverson® Vintage Shop, Inc. will manufacture high quality customized handmade products and crafts for both high and low-income earners; we want to become the people’s choice. Edna Elverson® Vintage Shop, Inc. is owned by Edna Elverson and her immediate family members. She is an American vintage collector and crafts enthusiast with over two decades of experience in the arts and crafts industry.

She will occupy the position of chief executive officer (CEO)/President of the organization. Edna Elverson has a Degree in Arts and Crafts and also an MBA both from the University of California.

3. Our Products and Services

Edna Elverson® Vintage Shop, Inc. is established with the aim of retailing handmade or vintage items and craft supplies. We know that quality is a key factor that will help us sell our brand which is why we have but in place a competent quality assurance team that will ensure that all our customized products meet and even surpass our customers’ expectations.

We will work hard to ensure that Edna Elverson® Vintage Shop, Inc. is not just accepted in our location but also nationally in the United States of America, and in other parts of the world. Here are our product offerings; Jewelry, Bags, Clothing, Home Décor and Furniture, Toys, Art, as well as Craft supplies and Tools.

4. Our Mission and Vision Statement

Our vision is to establish an online vintage and crafts shop brand that will be known as the go to people when it comes to shopping on Esty platform.

Our mission is to establish a strong presence on Esty platform and the ecommerce industry with a wide range of customers buying our jewelry, bags, clothing, home décor and furniture, toys, art, as well as craft supplies and tools from all across the globe.

Our Business Structure

Edna Elverson® Vintage Shop, Inc. is an online vintage and craft shop brand under Esty platform that intends to start small in San Diego – California, but looks to grow big in order to compete favorably with leading online vintage and craft shops both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the kind of world class online vintage and craft shop business we want to own. This is why we are committed to only hiring the best hands within our area of operations.

At Edna Elverson® Vintage Shop, Inc., we will ensure that we hire people that are qualified, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company.

In view of the above, we have decided to hire qualified and competent hands to occupy the following positions; Chief Executive Officer (Owner), Human Resources and Admin Manager, Sales and Marketing Executive, Accountant, Transport and Logistics Manager, IT Specialist, Quality Control Officer, Handmade and Craft Makers and Call Center Agent.

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e., leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Responsible for managing the daily activities in the factory
• Responsible for supervising all the employees
• Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Ensures that the organization operates within stipulated budget.

Human Resources and Admin Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defining job positions for recruitment and managing interviewing process
• Carrying out induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversee the smooth running of the daily office activities.

Sales and Marketing Manager

• Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Model demographic information and analyze the volumes of transactional data generated by customer purchases
• Identify, prioritize, and reach out to new partners, and business opportunities et al
• Document all customer contact and information
• Represent the company in strategic meetings
• Help increase sales and growth for the company

Accountant/Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Transport and Logistic Manager

• Manages the shipping of goods from warehouse to customers
• Negotiate deals with shipping companies
• Collaborate with the Merchandize Manager in transporting goods from the manufacturer to our warehouses

Information Technologist

• Manage the organization’s online shop in Esty and our official website
• Responsible for continuous update of our online store
• Ensure that our payment platform is secured 24 / 7
• Responsible for installing and maintenance of computer software and hardware for the organization
• Manage logistics and supply chain software, web servers, e-commerce software and POS (point of sale) systems
• Responsible for continuous upgrade and maintenance of IT systems
• Handles any other technological and IT related duties.

Quality Control Officer

• Ensures that all the handmade or vintage items and craft supplies in our production line meets the required quality before they are delivered to our clients
• Make certain that production and manufacturing lines perform efficiently, coordinate employee efforts, and facilitate communications between management and production departments.
• Devise ways of improving the manufacturing process to ensure higher-quality and durable handmade or vintage items and craft supplies
• Ensure that manufacturing production lines run smoothly and generate a consistently suitable output for their employers
• Ensures that the organization work in line with international best practices
• Handles any other responsibility as assigned by the general manager

Handmade and Craft Makers

• Responsible for producing handmade items and craft supplies
• Handles any other duty as assigned by the general manager

Call Center Agents

• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
• Handles enquiries via e-mail, chat and phone calls for the organization
• Distribute mails in the organization

6. SWOT Analysis

Edna Elverson® Vintage Shop, Inc. intends to build a world class vintage and craft shop business that will make and retail jewelry, bags, clothing, home décor and furniture, toys, art, as well as craft supplies and tools. We will be based in San Diego – California, but we will not restrict the sourcing of customers to the U.S market alone, we will source for customers from other parts of the world.

In other to achieve this in a highly competitive industry like the ecommerce industry, we must ensure that we critically look through our strength, our weaknesses, the opportunities available in the industry and the threats that we will are likely going to face.

Because of the nature of the business we are involved in and the brand we want to build, we were able to hire the services of an HR and Business consultant with bias in vintage products and crafts and ecommerce to help us conduct a thorough SWOT analysis and to help us create a business model that will help us achieve our business goals and objectives.

This is the summary of the SWOT analysis that was conducted for Edna Elverson® Vintage Shop, Inc.;

Perhaps one of our strongest strengths could be attributed to the quality of employees and the wide range of jewelry, bags, clothing, home décor and furniture, toys, art, as well as craft supplies and tools we have listed on our online shop and of course our uniquely designed interactive and user – friendly website. Our chief executive officer, Mrs. Edna Elverson will be bringing her vast wealth of experience to the table and that is indeed a huge positive for Edna Elverson® Vintage Shop, Inc.

A major weakness that may count against us is the fact that we are operating from Esty platform and there might be restriction on what we can do on the platform; we are at the beck and call of the company’s policies.

• Opportunities:

The fact that people with means are looking for ways to buy unique handmade products, crafts and vintage products make an online vintage and craft shop business to boom. Interestingly, celebrities and public figures will give anything to have products that will help them stand out from the crowd. We are well positioned to take advantage of this trend.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing power. Another threat that may likely confront us is the presence of big players in the industry such as Amazon and eBay, and Etsy also has a number of direct competitors.

DaWanda, based in Germany, closed in August 2018, ezebee.com based in Switzerland, is a global competitor, but also caters to freelancers and professionals Bonanza (formerly Bonanzle and 1000 Markets.

7. MARKET ANALYSIS

• Market Trends

Online vintage and craft shop business is a niche in the ecommerce industry that is experiencing upper trajectory in recent time. Vintage and craft shop involves creation of handmade products and crafts et al. With online vintage and craft shop, customers get freedom to choose everything from jewelry, bags, clothing, home décor and furniture, toys, art, as well as craft supplies and tools.

For example, in September 2015, Etsy made further changes to its manufacturing policy with the launch of Etsy Manufacturing, a marketplace allowing sellers to connect with outside manufacturers to fabricate their products. Manufacturers must be reviewed and approved by Etsy to ensure they adhere to certain criteria, although Etsy will not conduct visits or in-person inspections. Sellers must apply and be approved to work with any partners listed on Etsy Manufacturing and are required to disclose their use of outside manufacturers on their pages.

Lastly, in February 2020, Etsy announced a new “risk free” product advertising program, replacing an existing system allowing sellers to purchase ads on platforms such as Google Shopping from within Etsy. The company will automatically purchase advertising for products on “high-traffic” websites, with sales generated by these leads subject to a 15% cut of revenue from the total of the order.

8. Our Target Market

When it comes to selling handmade or vintage products and crafts, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those who make use of the internet and are within our shipping locations.

We are in business to sell our products the following groups of people;

• Celebrities and Public Figures
• Movie Producers
• Theater Performing Organizations
• Every adult that resides in our location that have access to the internet

Our Competitive Advantage

A close study of the ecommerce industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.

We are aware of the stiff competition and we are prepared to compete favorably with other online vintage and craft brands both in the United States of America and other part of the world. Another competitive advantage for Edna Elverson® Vintage Shop, Inc. is the wealth of experience of its management team. The management team comprises of professionals who have worked with some of the leading international brands in the ecommerce industry.

Our highly interactive and easy to use website, shipping network and of course our unique handmade and crafts factory also count towards our advantage especially when it comes to competing with other online vintage and craft shop brands within the same category that we operate.

Every customized crafts and handmade products that comes out of our production line must be certified ok before they are released to the market.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups online vintage and craft shop brands) in the industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Edna Elverson® Vintage Shop, Inc. is in business to operate an Esty shop and sell our products to customers both in the United States and other countries of the world. We are in the ecommerce industry to maximize profits and we are going to go all the way out to ensure that we achieve or business goals and objectives.

In essence, our source of income will be the retailing of a wide range of handmade or vintage products and crafts such as jewelry, bags, clothing, home décor and furniture, toys, art, as well as craft supplies and tools.

10. Sales Forecast

One thing is certain, when it comes to ecommerce shops especially online vintage and craft businesses operating under Esty shop, if you intend to sell a wide range of handmade and vintage products and crafts with good shipping network, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in and around San Diego – California and the online community and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow the business and our clientele base.

We have been able to examine the ecommerce industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in San Diego – California.

Below are the sales projections for Edna Elverson® Vintage Shop, Inc., it is based on the location of our business and other factors as it relates to startups operating on Esty the platform in the United States;

• First Fiscal Year (FY1): $250,000
• Second Fiscal Year (FY2): $350,000
• Third Fiscal Year (FY3): $550,000

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Before choosing to settle for an Esty platform for Edna Elverson® Vintage Shop, Inc., we conducted a thorough market survey and feasibility studies in order for us to be able to penetrate the available market and become the preferred choice for residents of San Diego – California.

We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.

We hired experts who have good understanding of the ecommerce industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in the online community.

In summary, Edna Elverson® Vintage Shop, Inc. will adopt the following sales and marketing approach to win customers over;

• Introduce our online vintage and craft shop brand by sending introductory letters to sport clubs, churches, schools, corporate organizations, political parties, groups, and other establishments that wears streetwear and casual clothes.
• Attend vintage and craft expos in the U.S and in other parts of the world
• Organize our own vintage and crafts shows in order for us to display our products
• Advertise our vintage products and crafts in newspapers, TV and radio stations
• Leverage on online forums and social media platforms, such as blogs, micro blogs, podcasts, photo, Instagram, Tumblr, WordPress, Facebook, twitter, YouTube and video sharing sites to promote our online store.
• List our business on yellow pages ads / local directories
• Leverage on the internet to promote our brand
• Engage in direct marketing
• Leverage on word of mouth marketing (referrals).

11. Publicity and Advertising Strategy

Publicity and advertising as it relates to the ecommerce industry involves being in touch with the organizations target market and being very creative and proactive. Beyond every reasonable doubt the media plays a very big role when it comes to helping a vintage and craft shop gain international significance.

The social media also plays an important role in modern day publicity and advertisement; it gives an online shop the ability to reach out to a wide range of customers in a short period of time and of course at a very cheaper price when compared to other publicity and advertising platforms.

Any player in the ecommerce industry that wants to take on the market must be deliberate when it comes to building brand awareness and credibility. Here are the platforms we intend leveraging on to promote and advertise Edna Elverson® Vintage Shop, Inc.;

• Place adverts on both print (newspapers and crafts and vintage related magazines) and electronic (radio and TV) media platforms
• Sponsor relevant community programs like school arts and crafts shows et al
• Leverage on the internet and social media platforms like; Instagram, Tumblr, WordPress, Facebook, twitter, YouTube and other sharing sites to promote our brand
• Attend local and intentional fashion expos
• Organize our own arts and crafts show
• Promote our online vintage and craft shop brand on our own official websites and online fashion community
• Build relationship with celebrities especially in the entertainment industry and sports to endorse of online vintage and craft shop brand.

12. Our Pricing Strategy

Edna Elverson® Vintage Shop, Inc. will make sure that we focus on retailing handmade or vintage items and craft supplies from our Esty shop. These items fall under a wide range of categories, including jewelry, bags, clothing, home décor and furniture, toys, art, as well as craft supplies and tools.

All our vintage items are at least 20 years old. We will make sure that the prices of our products are affordable and at the same time competitive with what is obtainable in the ecommerce industry.

• Payment Options

The payment policy adopted by Edna Elverson® Vintage Shop, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Edna Elverson® Vintage Shop, Inc. will make available to her clients;

• Payment with cash
• Payment via credit cards
• Payment via online bank transfer
• Payment via mobile money transfer
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our clients make payment for our products without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

13. Startup Expenditure (Budget)

From our market survey and feasibility studies, we have been able to come up with a detailed budget for achieving our aim of establishing a standard Esty shop with a craft factory. Here are the key areas where we will spend our startup capital;

• The total fee for registering the business in the United States of America – $750 .
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines, custom apparel design software and other software) – $3,300 .
• Marketing promotion expenses for the grand opening of Edna Elverson® Vintage Shop, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580 .
• The total cost for hiring business consultant – $2,500.
• The total cost for the purchase of insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400 .
• The cost for payment of lease for craft workshop (factory) for 24 months – $350,000
• Factory remodeling (construction of racks and shelves) – $20,000
• The amount required for the purchase of machines and handmade products making tools – $200,000
• Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500) .
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $250,000
• The cost for start-up inventory (stocking with a wide range of raw materials, accessories and other related merchandize) – $100,000
• The cost for store equipment (cash register, security, ventilation, signage) – $13,750
• The cost of purchase and installation of CCTVs – $5,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
• The cost of launching a website – $600
• Miscellaneous (payment of each listing that is posted in the shop costs $0.20.) – $5,000

We need an estimate of three hundred and fifty thousand dollars ( $350,000 ) to successfully set up our online vintage and craft shop in San Diego – California. Please note that this amount includes the salaries of all the staff for the first month of operation.

Generating Funds/Startup Capital for Edna Elverson® Vintage Shop, Inc.

Edna Elverson® Vintage Shop, Inc. is solely owned and financed by Edna Elverson and her immediate family members. They do not intend to welcome any external business partners which is why she has decided to restrict the sourcing of the startup capital to 3 major sources.

These are the areas we intend generating our startup capital;

• Generate part of the startup capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from the bank

N.B: We have been able to generate about $100,000 (Personal savings $80,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $250,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of thir employees, their investment strategy and the business structure. If all these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Edna Elverson® Vintage Shop, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our vintage products, handmade products and crafts a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Edna Elverson® Vintage Shop, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Creating a Shop in Esty Platform: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and remodeling the production facility: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Printing of Packaging Marketing/Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of industrial sewing machines and sewing equipment/tools: In Progress
• Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Establishing business relationship with vendors – suppliers of crafts making materials, accessories and related merchandize (vintage items) and other key stake holders: In Progress

• Search this website

Starting an Etsy Shop – FREE Printable Shop Planner

So you want to start an Etsy shop, but you’re not sure where to begin. I’m here to help!

I opened my Etsy shop on February 28, 2016. I had no guidance whatsoever, so I had no clue what I was doing. I just knew that I wanted to sell my paintings.

I searched all over Google, read so many articles, surfed the Etsy forums, and joined several Facebook groups for Etsy sellers. I fully immersed myself into the Etsy world. By June 2016, I had sold most of my paintings and started offering my vinyl creations and typography prints in addition to my paintings… and things just kept going up from there.

For those of you thinking about opening up an Etsy shop, I wanted to save you hours of searching the internet and give you a quick start guide to get you on the path to success. I’ve also released an entire planner for Etsy and Online Shop Owners, and I’m giving you the first section of that planner for free ! To have the first section of my planner sent to your inbox for free, be sure to click the link at the bottom of this post!

Disclaimer: Some links in this post may be affiliate links. At no cost to you whatsoever, I may receive a small commission from the merchant if you choose to purchase a product or service through an affiliate link. For more information, please read my  disclosure policy .

Perfect Your Craft

Whatever you make, make sure you make it well. Research everything you possibly can and practice, practice, practice. If you open up a shop and you’ve only made a handful of the things that you plan to sell, you’ll get off to a rough start and you’ll open yourself up to negative reviews from customers. I’m sure if you’ve been wanting to open an Etsy or Online shop, you’ve already done this step — but I feel it’s important to mention just in case !

Pick a Shop Name

First, you need to come up with a shop name. Make it as catchy as possible. Something that truly represents you and/or your craft.

I’m going to be honest with you here. I opened my Etsy shop in a spur of the moment decision, and I didn’t think twice about my shop name. I couldn’t even tell you what the original name was (I want to say it was ClydeArt but I might be wrong). I realized that I needed to come up with a new name less than an hour after opening my shop. I kept that name for a mere 2 days before coming up with a better name — Nap Time Acrylics. Nap Time Acrylics was a perfect name for my shop at the time, because I created all of my paintings during my son’s nap time, and all of my paintings involved acrylics. Once I started offering vinyl products in addition to paintings, I changed my shop name to Nap Time Design Co… and the rest was history!

If you don’t come up with a shop name you’re totally happy with in the beginning, you can always change it like I did! However, it’s important to know that Etsy allows you to change your shop name automatically only once. After that, if you’d like to change your shop name again, you will have to submit your new name, along with the reason why you’re wanting to change your shop name, for approval from Etsy. It’s honestly not a big deal to submit a new name for approval, but if you come up with an awesome name from the beginning — you’ll never have to go through that step!

If you’re struggling with coming up with a name, try out this awesome shop name generator !

Listing Photos

Having great photos is an essential part of becoming successful on Etsy… and you don’t have to be a professional photographer with an expensive camera to have great photos! You can use your phone! You can edit photos directly on your phone by using a free mobile app called PicMonkey (the desktop version is $5.99/month) — or you can use image editing software such as Photoshop or Lightroom to edit your photos! Etsy allows you to have up to 10 images per listing.

Personally, I find Photoshop to be the software that I use the most for both my shop and my blog. Not only can you edit your listing photos in photoshop , you can also create awesome graphics for your social media accounts!

This is another essential to success on Etsy. SEO stands for Search Engine Optimization. SEO is essential for getting found on the web, period. Etsy makes its own set of rules for SEO, and I believe Etsy’s SEO is much more simple than the SEO for most other websites.

The best piece of advice I ever received regarding SEO is to  think like a buyer . If you didn’t make your products, and were looking to purchase products just like yours, what words would you use to search for it?

You will need to come up with several “search terms” for each listing, and use these terms in your Title, Description, and Tags . The same terms need to be used in all three sections to optimize SEO.

Your keywords need to be 2-3 word phrases. Try to avoid one word phrases as much as possible. What I typically do is enter as many keyword phrases as I can into the title and separate them by commas. The title allows for 140 characters. Then I copy the title to the first line of the item description, then I copy it into my tags. Sometimes the keyword phrases are too long for the tags, and that’s ok! Tags allow for 20 characters, so you can divide your keyword phrases up. Also, you’ll usually have space for a few extra tags after copying the title (you’re allowed to have 13 tags), so use a few more of the keyword phrases you had come up with for that particular product!

Once I improved my listing images and SEO, these things paired together  significantly  increased my views, favorites,  and  sales. Before I knew it, my Etsy shop became a full time job.

Creating great listing images & mastering Etsy’s SEO are the two most important things you need to do in order to be successful on Etsy.

However, there are other things you can do to significantly increase your exposure and sales — AND I will also share the program that I use for bookkeeping that’s made specifically for crafters!

First, you’ll need a logo! You can create your own logo using Photoshop or Illustrator , you can hire someone to create a logo for you using Fiverr or Etsy , OR you can purchase a logo kit from Creative Market (you’ll usually need a software such as canva , photoshop , or illustrator to edit the pre-made logos).

In order to promote your shop outside of Etsy, you need to start business pages for your shop! You can create a business page on Facebook , and create business accounts on Instagram , Pinterest , and Twitter . Organize a giveaway or sale to promote the launch of your shop — this will lead to more followers and customers!

Another way to promote your shop outside of Etsy is to purchase a domain name (use your shop name for the URL), and start a blog! You can blog about your craft, post tutorials, talk about things that will pair well with your items, or what inspires you! The possibilities are endless with blogging. For this, I recommend purchasing a plan through BlueHost . BlueHost is a web hosting service that is partnered with WordPress, so you can build your blog from the ground up with little to no knowledge of coding! They are extremely user friendly and affordable, and all of their plans include a  free domain name .  My blog planner and guide on how to set up a blog is coming soon!

Order promotional products, such as business cards, flyers, and coupons, to include with your packaging! I recommend using VistaPrint or Moo for this. You can design your own using Photoshop or Illustrator , or you can fill in your information using the pre-made templates that are available on both websites!

Set up a newsletter for your shop! You can do this using MailChimp . MailChimp is totally free up to 2,000 subscribers, and it’s a great way to keep your followers informed of your new products, sales, or giveaways!

When you’re self-employed, knowing how to organize your business related finances can be tricky. CraftyBase is an online based accounting software that I used specifically for my Etsy shop, and I recommend it to  all people in the crafting business. You can create “recipes” for each of your products, and it will deduct your materials as they’re used. If you choose the pro plan, you can also sync it with your Etsy, Shopify, Square, PayPal, or WooCommerce account so it will instantly add your sales and revenue!

Lastly, I recommend signing up for EBates . EBates is not a way to promote your Etsy shop, but I always recommend this because you can get cash back for some of your business related purchases! I use EBates for both personal and business purchases. Any time I order supplies from Etsy or Hobby Lobby , I make sure to connect through EBates for cash back. It is completely free to sign up, and they will either send you a check or deposit your cash back directly into your PayPal account every 3 months! I have received over $1,000 cash back in 3 years by using EBates .

Remember… Life Happens!

Running an Etsy shop full time (or even part time) is completely different than having a “regular” job. You are your own boss, but you also have to play by Etsy’s guidelines . Etsy is understanding that life can happen, which is why they have a feature called “vacation mode” which allows you to temporarily disable your shop for as long as you need. I’ve had to do this several times, and that’s ok! Every time I’ve re-opened, my sales have continued.

I opened my shop on February 28th, 2016 and worked on my shop and orders everyday until I put my shop in vacation mode on December 6, 2016. During that year, I made 976 sales.

I took my shop out of vacation mode on January 1st, 2017. In March of 2017, I found out I was pregnant with my daughter. I had a lot of sickness during the pregnancy, and I was receiving 20+ orders per day, so I made the decision on April 8, 2017 to put my shop in vacation mode again. My shop remained closed until September 25, 2017, when I briefly re-opened. I went on vacation mode again for maternity leave on November 2, 2017. Even though I was closed for half of the year, I still made 858 sales that year.

I took several months for maternity leave, and took my shop out of vacation mode on March 20, 2018. When I re-opened, I had to deactivate several of my listings because a lot of my inventory is packed until I can get settled into my new office. Even with over half of my listings deactivated, I have made over 200 sales this year since re-opening.

Ready to Open an Etsy Shop? CLICK HERE to use my referral link, and get your first 40 listings FREE!

Online/etsy shop planner, click here to purchase the entire etsy/online shop planner. click here to get the shop details section of the planner for free.

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Hi! I’m Kathryn! I’m a wife, mom, blogger, and small business owner! I love to create things — anything from graphic design to DIY home decor — and I love to share my experiences with creating!

Tags : etsy seo , etsy shop , etsy shop planner

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How to Start an Etsy Shop

Angelique O'Rourke

8 min. read

Updated May 10, 2024

Free Download:  Sample Etsy Business Plan Template

Have you ever wondered how to start an Etsy shop? If you’re someone who is both creative and entrepreneurial, you might be considering starting an Etsy shop as a way to monetize a craft that you truly love doing. If so, you’ve come to the right place.

Etsy is a popular eCommerce platform for everything handmade, from custom jewelry to baby clothes. It’s a robust online marketplace, with more than a million active sellers and over a billion dollars in sales in 2014. If you’d like a slice of the pie, it’s wise to do a bit of homework to figure out how to stand out from the crowd.

To help get you started, I spoke to Etsy sellers from around the globe, to get their advice on how to start an Etsy shop. Each of them shared their experiences and their thoughts on what makes an Etsy shop great. From these answers and from a few other resources, I’ve compiled a list that will help you put your best foot forward.

• 7 steps to starting an Etsy shop

1. Make sure Etsy is the best platform for you

As with any business, whether you’re  starting a franchise  or opening a cat cafe,  doing your research is an essential first step you should never skip.

And one of these first considerations should be: Is starting an Etsy shop right for me? Where am I most likely to meet my customers?

You can read more about Etsy products and policies on their very informative blog. One big factor to consider is that a successful Etsy store takes time to maintain, so be sure that you can commit to regularly spending time on this venture.

This is an eCommerce business; it won’t make you money if it’s sloppily created or neglected after launch.

2. Research your product

In addition to researching the Etsy platform, before you dive into starting an Etsy shop, make sure to  research your product.

Ask vital questions such as “Who are my competitors? Who is my target market?”  You don’t want to launch with the wrong idea only to realize you need to go in a different direction and have to re-do a bunch of the work. Save yourself the energy by developing a strategy right out of the gate, including a plan B or a couple of backup products if things aren’t going as well as expected.

This is actually a good time to consider creating a lean business plan so that you have the flexibility to change as you go.

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3. Think SEO and social media strategy

It isn’t just about creating the shop—part of maintaining it successfully has to be focused on actually getting pageviews, and being discoverable through search.

Google Keyword Planner is always a good place to start, you can use it to see what search term people are using to find a site like yours. Another huge aspect of being discoverable online is choosing the optimal name for your business. 

Once you’ve done that, sign up for all of the pertinent social media platforms that you can regularly use and update. The ones that have a visual emphasis are always a good idea for Etsy sellers: Instagram, Pinterest, and Vine are very popular. But don’t forget the great reach that sites like Facebook have!

4. Have high-quality professional photos to post

The Etsy sellers that talked to me couldn’t stress this enough, I lost count of how many people mentioned the importance of excellent photography in making sales on Etsy.

Your photos are your products here in a sense because this is the primary avenue that customers will use to decide if they’d like to buy. They can’t hold or see first hand how great your product is, so the photos will have to do the convincing. Don’t forget to use a compelling photograph for your avatar as well!

5. Create a solid, scalable shipping and returns policy

Your store must be customer friendly and consistent to be successful. Make sure your policy is clear, timely, and that you stick to it every time. You want to achieve a high rating, and providing excellent and expedient customer service is a great way to get there.

6. Have a trusted advisor or friend review the shop

Don’t bring in someone who won’t tell it like it is; you want to receive honest and constructive feedback. Make sure that they find your shipping policy, return policy, product descriptions, images, and about page up to snuff.

7. Maintain the integrity of a successful launch

Once you’ve got your Etsy shop up and running, there are ongoing aspects of operating your business. Stay on top of things like refunds, returns, SEO strategy, social media presence, and responding to reviews.

What some people forget about starting an Etsy shop is that being an Etsy seller is being a business owner. So, staying active and involved in your business is key to success.

• Tips on starting an Etsy shop from Etsy sellers

Get to know the community:

Many people communicated to me that Etsy is really a world of its own; sellers and customers bond, write reviews, help each other out in forums, and generally have a strong and close-knit online community.

This can be a great advantage, but it will serve you well to learn the rules of the road. Derek Coleman, who runs the Etsy shop Lonehood , said: “Etsy is all about the community and the community influences others. Simply put: if a customer has a bad experience the word will start to spread and your ratings will show this. Ratings are very important. If you have excellent customer service, the community will also know of this and it will be reflected in your reviews.”

Understand the platform:

Michelle Gannon of The Language Playground shared an early mishap she had on Etsy: “Once one copy of my digital product was sold, it was gone from the shop and no one else could buy it. I had no idea until a few days later when I checked into my store to see how things were going and realized that my shop had no products in it. Luckily, it does not cost much for shop owners to post products again so the mistake was not huge.”

For a rundown on fees and listing products, look here.

Listen to customer feedback:

Stephanie Maslow of Metalicious gave us this tip. “Some of my best sellers have been from collaborations with my customers.” And, among her tips? The all-important role of good photography in an Etsy business. Surprise, surprise.

Reward loyal customers:

These are the people who are keeping you successful and spending their hard-earned money on your work.

“Offer your clients discounts on all future purchases to encourage repeat shopping. Make sure your buyers know how much you love them, by telling them so with discounts. Repeat shoppers are the best. I have a few clients who come back every year to do their holiday shopping. That’s the best compliment,” says Brooke Malloy of Etsy shop SageLike.

Project a strong brand:

“Make sure your brand is always represented properly. Customers on Etsy provide excellent feedback and can help new businesses hone their customer service experience which makes Etsy great for market testing and startup scalability.Your product may not be the right item for Etsy, but it doesn’t hurt to get it on there to find out, but still take it seriously. Remember that even if potential customers aren’t clicking ‘add to cart’ on your item on Etsy, if handled professionally, you may have made an impression, be certain it’s a lasting one,” says Jed Darland, founder of Plant Picket.

Have measurable goals, and track them:

Dana Reich of SweetDees Closet told me that a good goal to start with is “about $10 worth of sales for every 100 views your shops and listings get. “  From there, you can track your progress and make changes as needed, whether it’s adjusting the goal to reflect your variations in pricing, or boosting your SEO strategy to get more eyes on your shop.

“Make sure your Etsy tags and keywords are those which people can easily find you, both on Etsy and when searching for a particular item on Google. The more items you have in your store with great SEO, the more people will be able to find you and the more sales you’ll generate,” she says.

• Etsy-related resources

If you’re looking for even more info on how to start an Etsy shop, or you’re still not sure if starting an Etsy shop is right for you, check out these resources.

Reading material:

Etsy offers a detailed archive, The Seller’s Handbook, available for perusal with information right from the horse’s mouth.

Moz, a software company, has a great introductory SEO guide.  I’ve used this for reference myself in the past. If you know nothing about the subject, start here.

Sample plans:

Our own library of sample business plans is always a good resource as well, regardless of whether or not you’re starting an online shop. We have over 550 different sample business plans represented. Here are several eCommerce specific options:

• Junior’s Clothing Business Plan 
• Outdoor Clothing Business Plan
• Nutritional Supplements Business Plan 

The independent seller:

Etsy hired a third party research firm to gather data on the type of people who sell on their site. You can check out the report here.

It’s a fascinating look into a group of people, over two-thirds of whom are women, who sell their goods primarily from home and aren’t necessarily looking to be acquired by a larger company or hugely expand their operations, but who value their self-contained businesses.

If that sounds like a group you’d like to join, starting an Etsy shop could be for you.

Angelique is a skilled writer, editor, and social media specialist, as well as an actor and model with a demonstrated history of theater, film, commercial and print work.

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