It's important to have enough capital when you start up, said Sherry Mulne, an independent marketing consultant with The National Needlearts Association.
She's heard of stores that started up with as little as $50,000.
Another important thing to consider is location.
"Make sure your population is large enough to support a store. Check the demographics with the local chamber of commerce. Average income of the area is important. A needlepoint shop is usually more upscale. You want to be in an affluent area to do needlepoint."
Inventory in a yarn store should be in the high hundreds of thousands.
It's important to vary inventory according to market base, Mulne said. Teenagers are attracted to the sparkling, fuzzy or brightly colored yarns that baby boomers may not find as appealing.
"You need to be connected with your market base through marketing and promotions. You need to be savvy in business. You need to know how to market and keep your name in front of people."