Most important thing in a yarn store...NICE people.

A few years ago (before the yarn store boom) there was a USENET group about knitting and we were all complaining about our local yarn store and how bitchy the owner was. It cracked us up when we realized that we were all talking abou the same woman. She had cronies, who were perpetually around the one large table in the place knitting...but if you walked in the store to ask a question (or even to buy something but with a child in tow) you might as well not have existed. She had lovely yarns (exclusive rights to import Jamieson's Shetland for instance) and was personal friends with Kaffe Fassett, Alice Starmore and other knitting rockstars of the day. But I would have driven 50 miles to go to an alternative (and when there started to be alternatives, her business suffered).

Aside from NICE...lessee. I never buy acrylic yarn. Never never never. But even my favorite yarn store in San Francisco carries it, so clearly somebody buys it. Nice to have it alone in its own little section so I don't have to contend with it. I buy natural fibers. I buy beautiful hand-dyes. I buy fiber artist work (Hanna Silks, Koigu, stuff like that). I'm personally willing to pay a little extra for these things and also for silver needle markers and Celtic Swan needles. Knitting is a leisure luxury for me, and I want to enjoy it. But I like it that my LYS offers less expensive alternatives for people just starting out. I like that it has classes for those folks too.

My LYS has finished goods, but nobody ever buys them as near as I can tell and they become samples. IMHO they have too much yarn (its stashed away in every nook and cranny) but they do have something for everyone. They have classes in knitting for men, which I love the idea of. I love it when they have unusual technique classes because it brings up a new aspect and we start to see the technique expressed in pieces around the neighborhood. I hate shops that have classes where you must reproduce the same sweater as the sample....yawn!

Where is this business going to be?

For me, one of the biggest frustrations about yarn stores is the staff being made up of only knitters. I am knitting now, but I have been crocheting for 20+ years and when I would go to get some yarn I was often given attitude - as if crochet was so beneath them that they wouldn't even discuss the yarn, let alone making something with it, with me at all. This attitude was so common for so long that I stopped going to yarn stores for quite a long time and would instead buy whatever nice yarns I could from places like Michael's.

Thankfully, my local is fookin awesome - I fell in love the first time I went in there. I was in there for about an hour just looking and someone asked me several times if they could help and I kept saying no. Finally when I had a question, I went up to someone with a whole 'I'm a bad person cos I crochet instead of knit' kind of spiel and was surprised to find the employee did both and could answer most of my questions. I go to that store as much as I can and often spend a ridiculous amount of time in there. When I started to knit recently, I began going in there even more sometimes just to ask a question about something I was stuck on and they are always super helpful.

So yeah, I guess nice is the most important. If the staff is friendly and helpful I will go back endlessly.

Warm, freindly, kind and helpfull.

Don't get upset when I just look. Don't follow me around and ask if I need help after I have answered.

A lot of samples of stuff. A lot of variety of yarns.

The thing I look for in a yarn store include atmosphere, encouragement, a good cross-section of brands and budgets, and also that extra something special.

For instance, not one yarn store in my region carries Adrienne Vitadini - anything - I think that one of those stores should pick up on that fact and bring it in. To have something to offer that the other stores don't. So what can you provide, what need is not being met, that you can fill in your region that will make you stand out?

Friendly people, as I am sure you are clear on. The last thing anyone wants when walking into a yarn store is some mean person looking down on them for whatever reason.

Also, since every knitter has different choices in what yarns they want and like, it would be a good idea to carry as great a diversity in yarns as possible. From people who treat knitting as a luxury to open their wallets to, to people who enjoy it but can't afford that $30 80yd skein of yak fur. I think too many store owners get caught up in carrying the biggest, best, and more luxurious, to remember that sometimes people just want to knit something small and quick and that not everyone has the budget for a $200 sweater.

I would suggest having some rovings for spinning and the like, since (at least where I am) this seems to be a less frequent occurance. I personally wouldn't look for finished objects because if you're going into a yarn shop you most likely already knit/crochet (or are learning) and can make the item yourself. Store samples and swatches are good though. I like being able to feel a yarn knit up and not just in the ball. I also think that a good book and pattern selection is very valuable.

Finally, I think it would be a good idea to allow people to drop in and knit at the shop, but please for the love of god don't push all of your products on them when they show up. They will understand that you are a business and they will support you in that, but at the same time, they are allowed to shop at other places too and guilt tripping them will only push them further away. (sorry, that was a little personal experience there!) I also personally would not pay to knit with people at a shop since it is just group knitting and that can be done at a cafe for free, but I do think classes are a good idea and that will help get more people involved in the craft and coming into your store. :o)

I hope your craft store goes well!

people first and foremost, they have to be warm, friendly, knowledgable etc.
i've gone into places where i wouldn't even get a greeting, usually because i'm a guy and they probably thought i was lost or something.

diverse yarn selection, in price, content, weight, etc.
i make different things for different people. it's nice to be able to walk into a store and find cheap acrylic for that hat i'm knitting for the local hospical and on my next trip, pick up some combination of silk, soy, bamboo, wool, yak (?) for my next masterpiece showcase.

a space to knit with others that has comfy seating and good lighting
sometimes, ok, ALL THE TIME, i love to knit with others. i love to see what projects people are working on. sometimes i get inspired, sometimes i learn something new, sometimes i just can't wait to start knitting because i just found the perfect yarn at the store and must knit NOW!

knitting samples of the different weights and colors.
it really does help to see how something looks knitted up. i've often bought some yarns purely because i was able to see all the different colors in a particular yarn (i have very picky friends when it comes to colors)

classes, classes, classes
no need to explain here

Nice people, check.
Variety of yarn, check. I would also add variety of accessories and books for ALL experience levels. Includes buttons.
Place to hang and knit, check.
Would it be too much to ask to have evening hours maybe once or twice a week? I always have to go in on the weekend, and sometimes you need something TODAY but can't get there by 5 or 6pm on a work day.
Make sure you have someone there who is familiar with most techniques, not just the latest craze. I knit lace and sox and I want someone there who knows how to do more than scarves with novelty yarn.
And I second the swatch thing. You really don't know how something knits up without them.

Room to move, sit, explore, relax, a peaceful atmosphere. It's no fun for me to go into shops where it is hard to move through the aisles (for fear of toppling piles of yarn), or where there is no place to sit and look things over. I feel rushed and like I just want to get out.

My favorite shop as a spot to hang coats, a couch, well organized inventory (by fiber type, then color), and friendly, knowledgeable staff. I appreciate that they carry a variety of affordability. Some projects I don't mind spending a bit more, but other projects, I don't want to pay an arm and a leg for my yarn, yet I prefer the quality of a LYS over Michaels or another super store. I love seeing samples of different patterns that the shop has knitted up, either just for display or for a class...it adds a creative inspiration to the shop. I appreciate good lighting, too, not blaring fluorescent lights, but some good natural lighting or natural lighting bulbs overhead really helps in seeing the true color of the fibers...no surprises when you get home and open the bag and say, "wait, this color looks all wrong now!" lol It's nice if the class area or sitting area can be out of the way, so you're not distracted by shoppers or shoppers aren't distracted by tripping around a class.

There is a shop near me that has a tiny cafe in it. Just two tables, and a selection of tea, coffee, and some desserts and sandwiches. Really makes the trip worthwhile!

That's all that is most important to me. I love a place to shop, learn, and hang out while meeting new knitting friends.