Home-based yarn and thread supplier

Hobby knitters, crocheters and weavers, small makers who sell finished goods, and a few small craft shops or school and community groups.

You earn the margin between your bulk buying price and your sale price. Larger cartons or cones sold to makers and small shops bring in more per order at a lower margin.

• Knowing yarn types and fibres
• Stock tracking and organising
• Online selling and photography
• Negotiating with suppliers

• Check with your local council whether you need approval to run a home-based business and store stock at home
• You need an ABN, and GST registration once your turnover reaches the threshold
• Public liability, product liability and stock insurance are worth checking, and your home insurance may not cover business stock
• Imported stock brings freight costs, GST and customs paperwork, and exchange rate swings can squeeze margins
• Check that fibre content claims on your products are accurate under Australian Consumer Law
• Unsold colours and lines tie up cash, so start with small orders

Startup costs are typically around $3,000 to $15,000, depending on how much stock you buy, which fibres you focus on and how you set up your website and photography. Starting with small orders can help keep the figure down.

Monthly revenue is typically estimated at around $1,000 to $6,000, depending on your niche, your range, your prices and how well you reach knitters, crocheters and small makers online. These are estimates, not guaranteed results.

Check with your council about approval to run a home-based business and store stock at home. Also check ABN and GST registration, insurance cover for business stock, import costs and customs paperwork, and that fibre content claims are accurate under Australian Consumer Law.