How Do I Open a Yarn Shop?

Many knitting groups and circles hold their meetings at local yarn shops.
A yarn shop may carry needlepoint supplies.
Slub yarn features a variation in thickness that makes it unique.
A yarn shop might offer classes such as how to knit a sweater.
Showcasing some of your work, like homemade blankets you've made, will provide customers with ideas for projects.
Yarn comes in many colors, types, and thicknesses.
In order to have a successful yarn shop, you must constantly stock both the colors and types of yarn your customers want most.
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  • Written By: Sheri Cyprus
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Opening a yarn shop can be an ideal retail business option for those with a passion for knitting, crochet or needlepoint. A lot of research and preparation should be done before starting a yarn shop business. Since many businesses don't survive the first year, a business plan is essential. You should decide on your business model -- such as whether you'll also sell yarn through the Internet to expand your customer base.

Getting information and advice from local small business centers in your area is a great idea. You should also be sure to get feedback from potential customers about which types of yarns and supplies they're looking for. You could attend community craft fairs and perhaps hand out surveys asking for opinions. You could feature some of your yarn handiwork items and by knitting or crocheting something during a community event, you can attract attention from potential customers and have a chance to ask them what they would like to see in a yarn shop in the area. If they are interested in lessons, this may be another source of income to consider for your store.


Learning the ins and outs of making a profit from a retail business is essential. Remember that having a retail store is not just about offering yarn for sale, but that advertising, accounting and ordering supplies must be done efficiently in order to make a profit. In addition to getting information from a small business help center, retailers in the area your yarn shop is in questions about the amount of customer traffic. If you have decided to sell yarn on the Internet in addition to having a brick and mortar yarn shop, research online yarn websites to determine which e-commerce options would best suit your business. Estimate the additional expenses for online needs such as creating and maintaining a website.

Once you’ve received enough information, you’ll need to analyze what you’ve gathered and estimate what your profit is likely to be in relation to your expenses. Research commercial space in your area and compare the expected traffic with the price to lease the space. Of course, you must also research yarn suppliers and make sure you’ll be able to stock what you’ve determined your customer base desires in terms of yarn. Not only will you need to be able to get the yarn customers want, but your price will have to fall within their expectations. Research your local and online competition, decide what will make your yarn shop different and beneficial to customers and decide how you’ll communicate those benefits to attract your customer base.


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