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If you love crafting and enjoy creating personalized gifts, starting a party favor business could be the perfect creative venture for you. From birthday parties and weddings to baby showers and corporate events, there’s always a demand for customized favors that make celebrations more memorable. In this guide, you’ll learn exactly how to start a party favor business — from planning and supplies to pricing and marketing your products.
Jump to Sections in this Post
- Step 1: Decide What Type of Party Favors You’ll Sell
- Step 2: Choose Your Business Name and Register Your Business
- Step 3: Gather Supplies and Equipment
- Step 4: Create and Test Your Products
- Step 5: Price Your Party Favors
- Step 6: Build Your Online Store
- Step 7: Promote Your Party Favor Business
- Step 8: Manage Orders and Deliver Great Customer Service
- Final Thoughts
Step 1: Decide What Type of Party Favors You’ll Sell
The first step in learning how to start a party favor business is deciding on your niche. Party favors come in endless varieties, so narrowing your focus helps you stand out and target the right customers.
Here are some popular ideas:
- Personalized snacks – chip bags, candy, Capri sun, Gold Fish, Rice Kripsies, etc.
- Themed boxes or kits – graduation kits, gable boxes, wedding welcome boxes, and more.
- Personalized items – stickers, hand fans, water bottle labels, custom keychains, tote bags, mugs, or tumblers.
- Event-specific favors – baby shower candles, bridal shower mini soaps, graduation party favors.
Start small with 2–3 product types so you can refine your process before expanding.
Step 2: Choose Your Business Name and Register Your Business
Your business name should be memorable, easy to spell, and reflect your brand personality. Once you have a name, check that it’s available on social media and as a domain name for your website (GoDaddy.com).
Next, register your business legally. You can form an LLC or operate as a sole proprietor, depending on your state’s requirements. Also, apply for an EIN number through the IRS if you plan to hire employees or open a business bank account.
Step 3: Gather Supplies and Equipment
A big part of your business success depends on the quality of your supplies. Here’s a basic list of what most party favor businesses need:
- Cutting machine (like a Cricut or Silhouette)
- Koala glossy cardstock of different weights
- Epson Ecotank 2850 printer
- Packaging materials (boxes, ribbons, tissue paper)
- Adhesives (glue gun, double-sided tape, double-sided foam tape, etc.) and more
For more specific supplies, see the list below:
- Personalized chip bag supplies
- Pringles shaker supplies
- Personalized Cricut gable box supplies
- Personalized candy dome supplies
- Personalized hand sanitizer supplies
- Sublimation supplies
Buy in bulk to reduce costs, and look for trusted suppliers such as HTVRONT, TeckWrap Craft, Amazon, and Michaels.
Check out my Amazon storefront for your Party Favor supplies.
Step 4: Create and Test Your Products
Before selling, create a few sample products to test the quality and pricing. Focus on design variety, packaging appeal, and ease of customization. Offer samples to friends or local event planners in exchange for honest feedback.
You can also photograph your products for your website and social media while you’re testing — this helps build your brand’s visual presence early.
Step 5: Price Your Party Favors
Pricing is key to running a profitable business. You’ll want to cover your materials, labor, and overhead while leaving room for profit.
Here’s a simple formula:
Material Cost + Labor Cost + Packaging + Profit Margin = Selling Price
If you’re making bulk orders, consider offering volume discounts. Tools like a bulk craft pricing calculator or Cricut pricing spreadsheet can help you accurately calculate costs and maintain consistent profit margins.
Step 6: Build Your Online Store
Once your products and pricing are ready, it’s time to launch your online shop. You can start by selling on platforms like Etsy, Shopify, or Square Online.
- Etsy is great for personalized and handmade items.
- Shopify gives you full control over branding and design.
- Square works well if you also sell in person at markets or events.
Be sure to upload high-quality photos, write clear product descriptions, and include details like size, color options, and customization instructions.
Step 7: Promote Your Party Favor Business
Marketing your business is just as important as creating your products. Use Instagram, TikTok, and Pinterest to show off your designs and packaging ideas. Behind-the-scenes videos, customer shoutouts, and “how it’s made” clips perform especially well.
You can also collaborate with event planners, photographers, or local businesses to gain exposure.
Step 8: Manage Orders and Deliver Great Customer Service
As orders come in, organization becomes critical. Use order-tracking tools or spreadsheets to stay on top of production timelines, packaging, and shipping. Always double-check customizations before sending items to avoid mistakes.
Excellent customer service — such as quick replies, quality packaging, and follow-up messages — can turn one-time buyers into repeat customers and help your business grow through word-of-mouth referrals.
Final Thoughts
Starting a party favor business is a fun and profitable way to turn your creativity into income. With the right materials, branding, and marketing, you can build a business that thrives during birthdays, weddings, holidays, and corporate events all year round.
Remember — start small, focus on quality, and let your designs speak for themselves. Whether you’re making keychains, mini candles, or treat boxes, your personalized touches are what make your business unforgettable.
