How to start a card business: From idea to launch

Starting a card business is a rewarding venture that combines your creativity and design skills with business savvy. The greeting card industry is a multi-billion dollar market, with steady demand for cards for birthdays, holidays, and special occasions.

This guide will take you through the practical steps of validating your business concept, building supplier relationships, acquiring inventory, and obtaining necessary licenses to help you launch a successful card business in the U.S.

Step 1: Validate your business plan

Market and competitor research

Start by visiting local stationery stores and craft fairs. Note which card styles, themes, and price points are popular. Also, use online platforms like Etsy, Pinterest Trends, and Minted to analyze digital bestsellers and identify gaps in the market.

Create a simple spreadsheet to track at least five direct competitors. Document their product range, pricing strategy, and what makes their brand unique. This analysis will help you define your own niche and competitive edge.

Estimate your startup costs

Your initial investment will vary, but a lean launch is possible. A frequent misstep is to over-invest in inventory before you have proven sales. You might want to start with small test batches of 50-100 cards per design to see what sells.

Here is a sample budget for your first three months:

• Design Software: Adobe Illustrator or Canva Pro subscriptions range from $15 to $55 per month.
• Initial Printing: A small run of 5 designs (100 cards each) can cost between $200 and $500.
• E-commerce Fees: Platforms like Etsy charge a listing fee of around $0.20 per item.
• Business Formation: Registering an LLC can cost from $50 to $300, depending on your state.

A realistic startup budget often falls between $500 and $1,200.

Here are 3 immediate steps to take:

• Spend an afternoon on Etsy and in local shops to identify 3-5 current design trends.
• Create a spreadsheet to analyze the pricing and product lines of 5 key competitors.
• Draft a startup budget with estimated costs for software, a small print run, and business registration.

Step 2: Set up your legal and financial foundation

Choose your business structure

You might want to form a Limited Liability Company (LLC). It separates your personal assets from business debts, a safer route than a sole proprietorship which offers no liability protection. An LLC costs between $50 and $500 to file with your state.

With an LLC, profits and losses pass through to your personal tax return, which simplifies tax filing. A corporation is more complex and usually unnecessary for a new card business.

Secure the right licenses and permits

Once your structure is chosen, you can get the necessary paperwork. Start by applying for a free Employer Identification Number (EIN) from the IRS website. Banks often require an EIN to open a business account, even if you do not have employees.

Next, visit your state's Department of Revenue website to apply for a seller's permit, sometimes called a resale license. This allows you to collect sales tax. The application is often free or costs up to $100, and processing can take a few weeks.

Finally, check with your city or county clerk's office for a local business operating license. Fees typically range from $50 to $150 annually. Many craft fairs and markets require proof of local licensing before you can sell, so do not skip this step.

Here are 4 immediate steps to take:

• Decide if an LLC or sole proprietorship is right for you by reviewing your state's guidelines.
• Apply for a free Employer Identification Number (EIN) on the IRS website.
• Find the seller's permit application on your state's Department of Revenue website.
• Contact your city clerk's office to ask about the cost and process for a local business license.

Step 3: Secure your business insurance

Understand your coverage needs

General Liability Insurance is your baseline protection. It covers claims like property damage or injury. For a small card business, a policy with $1 million in coverage often costs between $300 and $600 annually. This is a foundational layer of security for your new venture.

You should also look into Product Liability Insurance. This specifically covers you if a customer claims your product caused harm, such as an allergic reaction to an adhesive. Many new owners mistakenly believe their homeowner's policy covers business activities, but it almost never does.

Find the right provider

When you shop for quotes, consider insurers that work with small businesses and crafters. Providers like Hiscox, The Hartford, and the ACT (Artists, Crafters, and Tradesmen) Insurance Program understand the unique risks of creative entrepreneurs and offer tailored policies.

Here is a quick look at the main types of insurance you might consider:

• General Liability: Covers third-party bodily injury and property damage claims.
• Product Liability: Protects against claims that your products caused injury or damage.
• Business Property Insurance: Covers your inventory and equipment from theft or damage.

Here are 3 immediate steps to take:

• Get quotes for general and product liability insurance from providers like Hiscox or The Hartford.
• Review your homeowner's policy to confirm its limitations on business activities.
• Assess the value of your inventory and equipment to determine if you need business property insurance.

Step 4: Equip your workspace and source materials

Your workspace and equipment

Your initial workspace can be simple. A dedicated desk and about 20 square feet for shelving should be enough to start. You will want to check local city ordinances for any rules on home-based businesses, especially regarding inventory storage.

For equipment, you might want to invest in a high-quality printer like a Canon PIXMA Pro-200, which costs around $600. Also, get a rotary paper cutter ($20-$50) for clean edges and a scoring board ($15-$30) for professional folds.

Find your paper and envelope suppliers

The quality of your paper defines your brand. Many new business owners make the mistake of choosing cheaper, flimsy cardstock that prints poorly. You should order sample packs first to test texture and print quality before you commit to a large purchase.

Look at suppliers like Cards & Pockets, LCI Paper, and Paper Source. They cater to small businesses and often have no minimum order quantity. This allows you to buy small packs of 25-50 sheets to test different designs without a large upfront cost.

Here are 4 immediate steps to take:

• Check your city's website for rules on home-based business inventory storage.
• Create a budget for a printer, paper cutter, and scoring board.
• Order sample packs from two different paper suppliers like Cards & Pockets or LCI Paper.
• Compare envelope sizes and colors from at least two suppliers to match your card designs.

Step 5: Set up your payment processing

Choosing a payment solution

You need a simple way to take money, especially for in-person sales at markets or fairs. Many new owners overlook transaction fees, which can eat into profits. Some payment solutions charge 2.5% to 3.5% per sale and require you to buy extra hardware.

For card businesses that need to accept payments on-site or on-the-go, JIM offers a streamlined solution. With JIM, you can accept debit, credit, and digital wallets directly through your smartphone. Just tap and you are done.

At just 1.99% per transaction with no hidden costs or extra hardware needed, it is particularly useful for selling at craft fairs. This lets you keep more of your earnings from each card sold.

Getting started is straightforward.

• Get Started: Download the JIM app for iOS.
• Make a Sale: Type the sales amount, hit sell, and ask your customer to tap their card or device on your phone.
• Access Funds: Your money is available right on your JIM card as soon as the sale is done, no waiting for bank transfers.

Here are 3 immediate steps to take:

• Compare JIM's 1.99% transaction fee with other payment solutions you find online.
• Download the JIM app to see how the interface works on your phone.
• Decide if you will sell primarily online or in-person to clarify your payment needs.

Step 6: Fund your business and manage finances

Secure your startup funding

SBA Microloans are a good fit for small creative businesses. Amounts range from $500 to $50,000, with interest rates typically between 8% and 13%. Lenders often focus more on your business plan than a long credit history.

You might also look into Kiva, a crowdfunding platform that offers 0% interest loans up to $15,000. Your community helps fund your loan, so a strong personal story is a big part of the application.

For grants, check the Amber Grant Foundation. They award $10,000 monthly to women entrepreneurs, and the application is straightforward.

Set up your financial systems

A frequent misstep is to mix personal and business money. Open a separate business checking account as soon as you register your business. This makes bookkeeping and tax filing much simpler down the road.

Plan to have $1,500 to $3,000 in working capital for your first six months. This buffer covers inventory restocks, marketing experiments, and unexpected fees without causing stress.

To track your finances, you can use software like Wave, which is free, or QuickBooks Self-Employed for about $15 per month. Log every expense and sale from day one.

Here are 4 immediate steps to take:

• Research SBA Microloan lenders in your state.
• Look at the application requirements for a Kiva loan.
• Open a dedicated business checking account at your bank.
• Create an account on Wave or QuickBooks to track your finances.

Step 7: Build your team and manage your workflow

When to hire your first helper

Most card businesses start as a one-person operation. You will likely handle everything from design to shipping at first. You might consider hiring when you consistently process over 20-30 orders per week and find yourself with no time left for creative work.

A part-time Studio Assistant is a good first hire. Their duties can include packing orders, cutting paper, and managing inventory. For this role, no special certifications are needed. Expect to pay an hourly rate between $15 and $22, depending on your location.

Set up your operational systems

Many new owners wait until they are overwhelmed to create systems. You can avoid this by setting up simple workflows from the start. Use a free project management app like Trello or Asana to track your card designs from initial concept to final print run.

There is no standard employee-to-revenue ratio at this stage. Most owners are the sole employee until sales consistently exceed $3,000-$5,000 per month. At that point, hiring a part-time assistant for 5-10 hours a week becomes a smart investment in your growth.

Here are 4 immediate steps to take:

• Define the weekly tasks you would delegate to an assistant.
• Research part-time hourly rates for your area on job sites.
• Create a free Trello or Asana board for your production schedule.
• Calculate the monthly revenue needed to support a 5-hour-per-week assistant.

Step 8: Market your cards and find customers

Build your online presence

Start with visual platforms like Instagram and Pinterest. Focus on high-quality photos of your cards. You can also show your workspace and design process to build a connection with followers.

Many new owners hurt their sales with blurry or poorly lit photos. Your images are your digital storefront. A simple lightbox costs as little as $20 and can make a huge difference.

You might want to collaborate with other small businesses, like gift box curators or local florists. A joint giveaway can quickly expand your audience. Aim for an Instagram engagement rate of 2-3%.

Connect with customers directly

Do not underestimate in-person sales. Local craft fairs and farmers markets put your products directly into customers' hands. This is where you get immediate, honest feedback on your designs.

Once you have a presence, start an email list. Use a service like Mailchimp, which has a free plan for up to 500 subscribers. Offer a 10% discount code to visitors who sign up at your market stall or on your website.

Your email list is a direct line to your most loyal customers. A good open rate for a creative business is around 20-25%. This channel often converts far better than social media.

Here are 4 immediate steps to take:

• Set up a business profile on Instagram and post photos of your top three designs.
• Research one local craft fair and note its application fee and deadline.
• Create a free account with an email marketing service like Mailchimp.
• Identify one potential business to collaborate with for a giveaway.

Step 9: Price your cards for profit

Calculate your cost per card

First, figure out your cost of goods sold (COGS) for each card. Add up the price of the cardstock, envelope, and any packaging like a clear sleeve. For example, if materials cost $0.80 per card, that is your COGS.

Many new owners forget to include their time or overhead like software fees. While not part of COGS, you must account for these in your final price to stay profitable.

Set your retail and wholesale prices

A common pricing strategy is to multiply your COGS by four to determine the retail price. With a COGS of $0.80, your retail price would be around $3.20. You could round this up to a clean number like $3.50 or $4.00.

Wholesale pricing is typically 50% of your retail price. If your card retails for $4.00, your wholesale price would be $2.00. This gives retailers room to mark it up for their own customers. This is a step many new owners miss, which limits their ability to sell in stores.

Analyze your competitors

Once you have a draft price, see how it compares to others. Look at 3-5 competitors on Etsy or in local shops who sell cards of similar quality. Note their prices for single cards and for multi-card packs to make sure you are in the right ballpark.

Here are 4 immediate steps to take:

• Calculate the total cost of materials for one of your main card designs.
• Use the "cost x 4" formula to set a potential retail price.
• Determine your wholesale price based on 50% of your retail price.
• Research the prices of five similar cards on Etsy to validate your pricing.

Step 10: Maintain quality and scale your operations

Establish your quality standards

Create a quality checklist for every batch to ensure consistency. Your list should include print color accuracy, clean cuts with no frayed edges, and perfect center folds. A small imperfection can make an otherwise beautiful card feel cheap to a customer.

You can track your quality by calculating a defect rate. Aim for fewer than 5 flawed cards per 1,000 printed. A frequent mistake is to ship cards with minor flaws to save money, but this can hurt your brand reputation and lead to negative reviews.

Know when to grow

Once you consistently sell over 50 orders a week, printing at home becomes a major bottleneck. This is a good time to move to a commercial printer. While the per-card cost might be similar, it frees up hours of your time for design and marketing.

With more inventory, you might want to use software like Craftybase. It is designed for makers and helps track your paper stock, finished cards, and supplies. This prevents you from running out of a bestselling design during a busy holiday season.

As for hiring, the 20-30 orders per week benchmark is a solid guide. When you find yourself spending more time packing boxes than designing new cards, it is time to bring on a part-time assistant for 5-10 hours a week.

Here are 4 immediate steps to take:

• Create a physical quality control checklist for your print runs.
• Calculate your current defect rate based on your last 100 cards.
• Get a quote from a local commercial printer for one of your bestselling designs.
• Review your weekly sales to see if you are approaching the 50-order-per-week mark.

Your card business journey connects your art with the world. Remember that the feel of the paper and the crispness of a fold can be just as important as the design. You have a solid plan, now go make something people will love to share.

And when you make that first sale, payment should be simple. JIM lets you accept cards right on your smartphone with no extra hardware, for a flat 1.99% fee. Download JIM and you are ready to go.