Let’s talk about how to make money with yarn making. I mean, this site is all about turning hobbies, side hustles, and cottage industries into low-effort million-dollar businesses. And if you’re already making you’re own yarn (or are raising sheep or goats of your own) you are well on your way already.
We started our business with just a $50 gift card and now we only work a few hours per day. We did it by following a specific business model and money management plan (that we copied from Berkshire Hathaway) and we have never looked back.
First, we’ll look at how to turn your yarn-making skills into a profitable business. Then we’ll show you how to apply some simple financial tactics to turn your yarn-making business into a small business Berkshire
Ready?
Let’s go.
5 Quick Tips for Turning Your Yarn-Making Hobby into a Profitable Business
First, here are five quick tips for making money with yarn making:
- Start by creating a clear business plan. This should include details about your target market, the products you plan to sell, and your marketing and sales strategy.
- Build a strong online presence. This can be through social media platforms, a website, or an online marketplace like Etsy. Email marketing services and social media management services can really simplify this process (and teach you everything you need to know).
- Focus on creating high-quality, unique products. Consider specializing in a particular type of yarn or offering customized options to stand out from the competition. We have some friends that do very well by raising Angora goats and making the best Mohair they can produce.
- Connect with potential customers by participating in local craft fairs and markets. This can be a great way to get your name out there and test the demand for your products.
- Don’t be afraid to ask for help. Reach out to other yarn makers or join online communities to get advice and support as you grow your business.
By following these tips, you can turn your yarn-making hobby into a profitable business that allows you to do what you love and make money doing it.
But the question probably on your mind is this: is it worth it?
The Demand for Handmade Yarn is on the Rise: How to Tap into the Market
Handmade yarn is becoming increasingly popular, and now is a great time for yarn makers to start their own businesses and tap into this growing market.
There are many ways to make money with yarn making, and with the demand for handmade yarn on the rise, there are plenty of opportunities for those who are skilled in this craft.
One way to make money with yarn making is to sell your products online through platforms such as Etsy or your own website.
You can also sell your yarn at local craft fairs or markets, or even wholesale to local yarn shops. Reach out to local craft shops because they would love to have a nice display of local fibers.
Another option is to offer classes or workshops on yarn making, either in person or online, to help others learn this skill and potentially even start their own yarn-making businesses. There is some fantastic online course creation software out there these days.
We especially love this because course income helps smooth over ups and downs in the fiber markets and generates repeat, passive income.
No matter how you choose to sell your yarn, it’s important to market your products effectively and build a strong online presence. This can include creating a professional website, utilizing social media to promote your business, and engaging with your customers through email marketing or newsletters.
Overall, the demand for handmade yarn is on the rise, and now is a great time to start a yarn-making business. With the right strategies and a little bit of hard work, you can turn your passion for yarn-making into a profitable venture.
A Beginner’s Guide to Making Money with Yarn
Before you, jump into the deep end, it’s best to think through a few things first.
- First, consider the type of yarn you will be making and who your target market is. Different fibers and yarn weights appeal to different groups of people, so it’s important to have a clear idea of what you want to offer.
- Next, create a website or social media presence to showcase your products and reach potential customers. Online marketplaces like Etsy and Ravelry are also great platforms for selling handmade yarn.
- Also, consider how far you want to go. If you intend to sell yarn in stores or at craft shows, you’re going to want a way to invoice, accept credit card payments, etc. In fact, you need to legally form a business!
Don’t worry, there are services out there that make this all simple. We keep a page of reviews and info for all the best small business tools no one told us about. - Consider reaching outside the yarn-making circle. Teaching workshops or classes on related crafts. Many people are interested in learning how to knit or crochet, and offering lessons can be a great way to earn an additional income. You can also consider collaborating with local yarn stores or fiber festivals to sell your products and increase your exposure.
- Finally, don’t be afraid to get creative with your yarn-making business. Consider offering custom orders or creating unique, one-of-a-kind yarns that will appeal to a specific niche market.
Ok, so you have an idea of where you want to go. Now how do you actually do this stuff?
How to Sell Your Yarn-Making Creations Online
No matter what form your yar-making business will take, you’ll want to include the internet. It might seem daunting but creating an online storefront has never been easier.
Here are some tips to help you get started:
- Set up an online store: There are many platforms available for selling your yarn online, such as Etsy, eBay, and Amazon. Choose a platform that best fits your needs and start setting up your online store.
- Take high-quality photos: Good photography is essential for showcasing your yarn and attracting customers. Use natural lighting and a clean, simple background to make your yarn stand out.
- Write compelling product descriptions: Use keywords related to your yarn, such as the type of fiber, the weight, and the color, to help customers find your products. Be sure to also include information about the care instructions and any unique features of your yarn.
- Price your yarn competitively: Research the prices of similar yarns being sold online to help determine a competitive price for your own products. Be sure to also factor in the cost of materials, labor, and any fees associated with your online store.
- Promote your online store: Use social media marketing services to share your products and connect with potential customers. Consider joining yarn-making groups or communities online to share your creations and interact with other yarn makers. And always set up an email list through an email marketing service. It is one of the single highest return on investment you’ll see in your business.
Even with the store ready to go, it can be extremely stressful trying to find the right price for your yarn. Next, we’ll help ease some of that worry.
How to Price Your Yarn for Maximum Profit
Pricing your yarn correctly is crucial. If you price your yarn too low, you may struggle to turn a profit.
On the other hand, if you price it too high, you may discourage potential customers from making a purchase.
So, how do you determine the right price for your yarn?
First, consider the cost of materials and labor. Make sure to factor in the cost of the fibers, as well as any additional materials you may use (such as dyes or packaging). Don’t forget to also include your own time and labor in the price of your yarn.
And if you are raising your own goats or sheep, you’ll need to determine your all-in cost to produce a given unit of wool. That includes food and medicine and shelter repairs. And don’t forget the cost of your own time!
Next, research the prices of comparable yarns on the market. This will give you an idea of what customers are willing to pay and help you determine a competitive price.
It’s also a good idea to consider the value that your yarn offers to customers.
If your yarn is made from high-quality, rare, or hard-to-find fibers, you may be able to charge a higher price. Similarly, if you offer unique colors or textures, you may be able to justify a higher price point.
We recommend focusing on a really high-quality yarn, even if it means selling less of it due to high cost.
Why?
High-end products tend to have higher profit margins. And besides, this site is about finding ways to spend less time working. Selling less of a higher-cost item is just fine with us!
Also, with higher-cost goods, you tend to attract a higher class of customers. You save time and headaches by dealing with already successful people who know how to be professional.
Ultimately, the key to pricing your yarn for maximum profit is to strike a balance between covering your costs and remaining competitive in the market.
By carefully considering these factors, you can set prices that will help you make money with your yarn-making business.
Alright, now let’s put it all together.
Yarn Making 101: A Step-by-Step Guide to Starting Your Own Yarn Business
Step 1
Learn the basics of yarn making.
There are many different techniques for making yarn, including spinning, dyeing, and plying.
It’s important to familiarize yourself with these techniques and choose the ones that work best for you. You can learn through online tutorials, classes, or by experimenting on your own.
Step 2
Choose your focus.
There are many different directions you can take with a yarn business, such as selling handmade yarn, creating knit or crochet patterns, or offering yarn-making supplies.
Decide on your focus and target market to help guide your business decisions.
Our recommendation would be to focus on high-end products. Focus on high-ticket sales rather than high volume. We have friends who have built their businesses by learning everything they can about making the best mohair yarn.
Bonus: As you build your business, keep an eye out for things to sell in the digital space as well. Record your journey so you can teach people to start their own yarn-making businesses.
Step 3
Gather your supplies.
Depending on your focus, you’ll need a variety of supplies to get started with your yarn business.
This might include fiber, spinning wheels, dyeing equipment, and knitting needles, among other things. Be sure to research the best supplies for your needs and budget.
Buy used whenever possible.
Bonus: Buying used often puts you in contact with people who have done this successfully. Imagine buying a spinning wheel from someone who is retiring from a long career of making yarn. Just think about what they can teach you.
Step 4
Build your brand.
Your brand is the image and reputation of your business.
Develop a brand identity that reflects your values and target market. This might include creating a logo, website, and social media presence.
There are social media management services and email marketing services to help with this. Plus we review our favorite website creation and hosting apps on our small business tools page.
Remember: Branding is really just the pursuit of an audience. Be genuine and helpful, and other genuine and helpful people will join your audience.
Step 5
Create a business plan.
A business plan is a written document that outlines your goals, target market, financial projections, and marketing strategy. It’s important to have a clear plan in place to guide your business decisions and help you stay on track.
Step 6
Find your customers.
There are many different ways to reach potential customers, including online marketplaces, craft fairs, and wholesale accounts.
Experiment with different marketing channels to find the ones that work best for your business.
And remember to go local. Brainstorm ways you can help local businesses with your yarn or your brand and always think win-win.
Also, watch your competitors. Where are they finding business?
Step 7
Keep learning and growing.
As with any business, it’s important to continuously learn and adapt to stay competitive. Keep learning new techniques, exploring new markets, and testing new ideas to help your business thrive.
Don’t be afraid to venture into unexpected places. When we built our online store, we had no intention of building a blog and website or even investing for that matter.
But we stayed open to new opportunities and it has served us well.
By following these steps, you can turn your yarn-making hobby into a successful business. With dedication and hard work, you can turn your passion into a profitable venture that brings you joy and financial stability.
Speaking of financial stability, didn’t I promise you a roadmap to a million-dollar business?
We built this site because we believe that any small business can benefit from the financial management we put to work in our own business. And we believe that any profitable business can reach a $1 million valuation, even if it’s run by just one person.
So how do you do it?
How to Turn Your Yarn-Making Business Into a Million-Dollar Business
We recommend all businesses take a lesson from Berkshire Hathaway. They have created a simple, rational model for handling money.
Leslie and I adapted those principles for use in a small (or even one-person) business.
We call it the “Build Your Own Berkshire” strategy.
In short, it works like this:
As profits come in from selling your yarn or services, a proportion of those profits are invested outside your business.
We recommend a broad market ETF like VOO, but anything that tracks the S&P 500 works.
You then track your “look-through earnings” and use that number as a guide to make future decisions about your business.
Here at 3MM we have a goal of growing our look-through earnings by 15% per year. That’s a crazy high goal and you will probably reach the $1 million mark with a lower rate.
As money comes in, investments are made in whatever will help us reach our goal.
Level Up: How to have a Million-Dollar Business that can be run in just Three Months Per Year
We now work less than two hours per day (total) on this business.
How?
We also started applying some of the world’s best productivity systems to our day-to-day operations and we streamlined everything to increase our dollars earned per hour worked.
We cover it in detail in our productivity guide.
When you put it all together you get a million-dollar business that can be run in very little time. That business control a huge pool of investments that buy you, and your loved ones, security for generations to come.
Further Reading
You might want to check out other ways to turn hobbies into businesses.
Check out our related posts:
- How to Make Money With Crochet
- How to Make Money with Woodworking
- How to Make Money With Cricut
We created Three Month Millionaire to help people do exactly what we did:
Build a home-based business that can be run in less than three months per year (or two hours per day).
If that sounds like something you’d like to learn, check out:
- Our Ultimate Guide to Building a Home Business
- Our Ultimate Productivity Guide
- Our Ultimate Guide to Investing
- Our Income Reports
Or if you want to check out some of our other reviews pages, Check out:
- Our reviews of the Best Online Course Creation Software
- Our reviews of the Best Books For Following the Three-Month Millionaire Journey
- Our reviews of the Best Business Tools No One Ever Told Us About
- Our reviews of the Best Social Media Management Tools
