Local craft shop stocking handmade goods

Local shoppers, visitors and tourists, and gift buyers looking for something different from chain stores.

You buy stock from makers at wholesale prices or take it on a commission basis, then sell at retail price. Some shops also earn from craft workshops or by renting display space to makers.

• Choosing a good range of products
• Visual merchandising
• Customer service
• Stock control and bookkeeping
• Building relationships with local makers

• Lease terms, deposits and business rates, ask for advice before signing anything
• Shop insurance and public liability insurance
• Product safety rules for items like candles, toys or cosmetics, check what applies
• Written agreements with makers on pricing, payment and unsold stock
• Slow seasons outside the Christmas period, plan cash flow for quieter months

Startup costs are typically around £8,000 to £30,000, depending on your premises, stock and fit-out. These are estimates only, so get advice on lease terms, deposits and business rates before signing anything.

Monthly revenue is typically around £2,500 to £12,000, depending on your location, range and footfall. These are estimates, and the idea assumes at least about 30 hours a week. Plan cash flow for quieter months outside Christmas.

Check lease terms, deposits and business rates, and shop and public liability insurance. Check which product safety rules apply to items like candles, toys or cosmetics. Agree pricing, payment and unsold stock with makers in writing.