How to find the right niche for your handicraft business

: Colorful handmade decoration hanging at a handicraft store

You might be worried that finding the right niche for your handicraft business means you'll lose your creative freedom and get stuck doing the same thing for the rest of your life. However, if you pick one area to specialize in, it will be much easier for you to build a trustworthy brand and attract the right audience. After all, if you attempt to appeal to everyone, there is a big chance you won't appeal to anyone. 

If you are unsure how to choose a perfect niche and why finding one is essential, continue reading. We've prepared tips to help you find the niche that will make your handicraft business stand out. Who knows, you might soon be in a position to grow your craft business

The importance of finding a niche for your handicraft business

You might think that spreading yourself thin trying to make too many things in too many areas will help your business have a successful start. The more diverse your products, the more customers you'll attract. However, this couldn't be further from the truth when starting a handicraft business.
Handmade socks packed in a brown box, representing how to find the right niche for your handicraft business

Finding the right niche for your handicraft business will help you stand out from the competition

In reality, it's always better to focus and specialize in one area. Let's take needlepoint as an example. It's much better to focus on creating a couple of quality items, such as needlepoint keychains or needlepoint dog collars. If you choose too many different products, you can get overwhelmed and send the wrong message to your customers. 

Here are the main reasons why choosing a niche is vital for your handicraft business:

  • Choosing a niche will make you appear as an expert in a specific area. 
  • A niche will help your products attract the right kind of customers
  • By specializing in one area, you'll leave no room for confusing your customers
  • When you're offering specific and somewhat unique products, it will be easier for them to stand out on the market
  • Finding the right niche will help you grow your business in a faster and strategic way.

Ways to find a niche for your handicraft business

Choosing a niche is a significant step for your business. It will determine the direction your handicraft business will go. Therefore, you need to be sure you're choosing the right area to specialize in. Otherwise, you're risking causing extensive damage to your business before it even gets a chance to thrive.

For instance, if you like making jewelry, focus on making variations of just one type as otherwise, you’re risking confusing potential customers.

Finding the right niche means finding a perfect balance between what you're passionate about, what you're good and skilled at, and what could bring your profit. Further in this article, we'll explain three simple ways to find the right niche for your handicraft business.


The first thing to do is to sit in your craft room, think of every single business idea that ever came to your mind, and put it on paper. Don't think you need to sit for hours thinking but take as much time as you need. After all, you're the one deciding when the time is to take the next step.

Keep in mind that there is no small or dumb idea. Don't censor yourself and add everything you can think of to your list. If you don't like an idea today, it doesn't mean it will not be an excellent way to go in the future. You'll be able to edit your list later and decide which directions you don't want to go.

Elimination process

Elimination is the most critical step of the process. It's also the hardest and most challenging part of choosing a niche for your business, so it's important not to rush. You should analyze each idea on your list and start eliminating them one by one

Brainstorming next to a laptop while choosing a niche for your handicraft business

It's important not to rush and thoroughly analyze every idea you've written before deciding which ones to eliminate.

To decide what ideas to eliminate, ask yourself the following four questions about every idea you take into consideration:

  1. Could this idea be profitable?
  2. Am I passionate and excited about this idea?
  3. Do I have enough knowledge and skills to bring this idea to life?
  4. Is this topic something I could talk about for hours?

Every idea you've written has potential so make sure to ask these questions about every item on your list. Your end goal should be to narrow the list down to the three best niches.

Contrast and compare

Once you have your top 3 ideas, it's time to consider each of them in detail. Try to come up with product ideas and price points. Also, think about which one of the three niches you've selected excites you the most and which one can potentially be the most profitable. That way, you'll have a list of pros and cons for each idea that will be crucial for you to make your choice.

Once you've picked the winner, you still might feel a little bit unsure about your decision. Don't worry; it's doubtful you'll feel 100% about any idea. If you don't try, you'll never know. Therefore, if you feel 75% sure that the niche you've chosen is the right one, go ahead and try. Don't make excuses because in the worst case, you'll try, quit and switch to a new direction. 

Keep in mind that this is just the first decision you'll have to make when it comes to your business. Once you get started, there will be hundreds coming your way. For instance, you'll have to think about marketing solutions and even research commercial storage companies to find the best storage for your needs. Therefore, picking a niche is a perfect way to practice being decisive!

The bottom line

Finding the right niche for your handicraft business is one of the most critical steps towards building a trustworthy and reliable brand. By choosing the right area to specialize in, you'll ensure you attract passionate customers and become a 'go-to' expert in your field.


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