8 Steps to Recession Proof Your Handmade Business

8 Steps to Recession Proof Your Handmade Business

Hey fellow handmade biz owners! If the economy has been feeling a little... shaky lately, you're not alone. Maybe sales are slowing down, maybe you're wondering if your handmade business can survive a recession. 

Well, let’s not panic—because today, I’m breaking down 8 steps to RECESSION PROOF your handmade business so you can keep thriving no matter what the economy is doing. And trust me, I’m a small art business owner as well so I’m this boat with you - and it’s always best to be prepared in the case of a recession because they are ultimately inevitable, so it’s best to start by taking steps each day to prepare your business. And each of these things are steps that I’ve been taking to make my business recession-proof over the last couple of years and are continuing to take myself. So, grab your crochet hook, your sketchbook, or whatever you're working on, and let’s get started! 

 

 


Step 1: Diversify Your Income Streams

I know, I know—this is my favorite thing to preach! But seriously, depending on just ONE income source is risky in any economy, let alone during a recession. If you’re only making money from custom orders or Etsy sales, what happens when that slows down? So, start thinking about ways to diversify.

Sell digital patterns, printables, or guides. If you’re a more physical based business, it’s great to have digital offerings as well and to think about what digital offerings you can create. Check out my 10 DIGITAL PRODUCTS to SELL & make MONEY as a HANDMADE BUSINESS in 2025 video for some ideas on what to make.

Do you remember that there was a huge delay in shipments in 2020 with all of the borders closing and shops having online orders only, and it was really hard as a small business at that time to get materials to make physical goods? I know for me, I couldn’t get all of the materials I needed to make my fiber art pieces, so at that time I began to try and plan what digital products I could create, so it’s really great to have a mix of digital and physical if you are a handmade or art based business. 

You can also branch out by offering online classes or workshops, setting up a subscription model like Patreon or a paid community, or monetizing your content through YouTube, blogging, or affiliate marketing. Another great option is selling Print on Demand products—like t-shirts, mugs, or tote bags featuring your designs. But let’s be real: not everyone has the time, space, or budget to stock a bunch of merch. That’s where today’s sponsor, Printify, comes in.

Printify is a print-on-demand platform that lets you create and sell custom products—like t-shirts, tote bags, mugs, notebooks, even home decor—without keeping any inventory. They partner with print providers around the world, so when someone places an order, it’s automatically printed and shipped for you. No risk, no bulk orders—just your creativity turning into profit.

If one area slows down, you have others to fall back on. It’s like having a financial safety net! And I’ll be sharing some different income streams that you can have in a video really soon, so make sure that you subscribe and click the bell if you want to be notified of that one! 

 

Step 2: Strengthen Your Brand & Community

In tough times, people buy from businesses they trust and feel connected to. Your brand is more than just your logo—it’s your story, your vibe, and your community. The stronger that connection, the more loyal your customers will be, even when they’re being careful with spending.

Show up consistently on social media, and I go into this a bit more in the workbook “The Ultimate Online Art Business Starter Checklist” - that it’s best to consider what the pros and cons are of each social media platform, and I can go more into each in another video - let me know if that’s something you’d like to see soon - but it’s good to keep in mind what your niche is, your communication style and the kind of community you want to build. 

  • Decide, do you enjoy the storytelling style of conveying information here on YouTube, or do you like the quick style of TikTok? Whichever platforms you wish to show up on consistently it’s great to pick one or two to really show up on more consistently so that you are not overwhelmed and then you can simply repurpose your content as well. 

  • Build an email list! (Seriously, don’t rely just on social media algorithms.) Do you all remember the big Instagram blackout of 2021? I remember at that time, I was really reliant of Instagram for my business and making sales, and for that whole day it was absolutely silent with no traffic or sales. That moment was really scary because I realized how much I was reliant on Instagram, and it was then that I started building up my email list and taking it more seriously.

  • If your audience isn't a fan of email lists, try building connection through another space like Discord. For us here at Cactus Lady Creation, there is a discord community of crocheters, knitters and fiber artists where we all share what we’re working on, gain inspiration, and it’s great place for people all over the world to connect and chat over there. Through discord or another community that is not connected to social media, it's easier to connect with your audience without relying on algorithms. 

  • Engage with your audience—respond to comments, share behind-the-scenes, and make them feel like part of your community If you’re an artist, this is great because you can really immerse people into your world and if you’re a handmade business you can do this by showing your process of creating your pieces. 

There is also an email list that you can subscribe to if you want to have more handmade business tips sent to your inbox each week. You can click here to also grab your free “Guide to Launching Your Online Art Business”. 


Step 3: Invest Smartly

In uncertain times, be smart about what you’re spending money on. Ask yourself:

  • Is this helping me make more money?

  • Is this a need or a nice-to-have?

📌 Where to Cut:

  • Unused subscriptions or software - do you need the paid version or maybe there is a free version that you are just fine using? 

  • Buying new supplies when you already have a stash.

📌 Where to Invest:

  • Tools that help you make money (ex: website, email marketing, or course platforms).

  • Education that helps you grow.

Step 4: Price for Profit, NOT Just to Compete

When the economy gets rough, a LOT of handmade sellers panic and start lowering their prices to compete, which is a big mistake. Lowering your prices to match big-box stores or cheap mass-produced goods will only run your business into the ground. Instead, make sure you’re pricing for profit.

📌 How to recession-proof your pricing:

  • Make sure you're factoring in materials, labor, fees, AND profit. If you don’t you’re not going to be able to keep your business going and you’ll burn out very quickly. 

  • Add value instead of just cutting costs. Sometimes it’s as simple as investing in better pictures or better packaging. You could also think about free resources you can provide to your customers or how you can create product bundles to provide more value.

  • Offer premium, unique products that justify your price. In fact in recessions it’s good to think about how you can even make your prices higher. Can you make your product more luxe by prioritizing quality over quantity? You can read more about this in the post - 10 Luxury Products that always sell during a recession for Handmade Businesses.

 

Step 5: Adapt to Customer Needs & Trends

Consumer habits change during recessions. If sales are dipping, it might not be because people don’t want your art—it’s because their priorities have shifted. So, how can you adapt?

📌 Ways to Stay Relevant:

  • Offer budget-friendly products alongside premium ones, and I go into this more in my video “6 Products that NEVER FAIL in a RECESSION for Handmade Business” so you should definitely check out that one next if you want to see some suggestions that are backed by data. 

  • Another way to stay relevant is to figure out what are your customer’s pain points? And how you can create items that solve a problem.

  • Pay attention to what’s trending in your niche—seasonal colors, popular motifs, or theme - I also talk about “10 Handmade Products to MAKE that will actually SELL in 2025, “according to what’s trending so you can also check that out after this one.


Step 6: Focus on Repeat Customers & Loyalty

It’s WAY easier to sell to someone who’s already bought from you than to constantly find new customers. So, make sure you’re nurturing your current audience and inspiring people to keep coming back to your products. 

📌 Loyalty Strategies:

  • Offer repeat customer discounts or VIP perks.

  • Send special offers or early access to your email list.

  • Stay engaged with past buyers—send a thank-you, check in, or ask for feedback.

Your biggest fans will keep supporting you if you make them feel valued!


Step 7: Expand Beyond Just Etsy (or One Platform)

It's never great to put all of your eggs in one basket as far as selling one platform, such as Etsy or another website. If Etsy fees go up (which they always do), or they shut down your shop (which has happened to so many sellers!), you’re stuck. So, start thinking about diversifying where you sell.

📌 Options to Consider:

  • Definitely have your own website. I’m a big fan of Shopify myself and talk about some of the differences between Etsy and Shopify and a few other videos where I compare different platforms. So it’s best to think about 

  • Other marketplaces like Faire (wholesale), Michael Makerplace (which is Michael’s Etsy competitor to find handcrafted pieces) or even have a Ko-Fi Shop. There are so many options for sure.

  • Social media shops, such as META and TikTok Shop, can be great. 

  • Local craft fairs or in-person sales. While I love being online because it means I can connect with all of you around the world, it’s also great to be able to sell in person in your local community as well. 

Basically the more places people can find you, the better!


Step 8: Stay Positive & Flexible

It’s important to remember that running a handmade business is a long game. Algorithms change, and trends come and go. There are economic ups and downs, and they’re are all part of the journey, but the ones who adapt and keep going are the ones who make it through. Keep creating, keep learning and it’s really important to focus on what you can control. If you keep going your passion and persistence will pay off!

So those are my 8 Steps to Recession-Proof your Handmade Business! Which one are you working on right now or which stuck out to you? Let me know in the comments below—I’d love to hear your thoughts!

 

 

@cactusladycreation

 

 

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