I love to upcycle material! In fact, I make my children’s clothes out of mainly recycled material. When I have scraps I make buttons 
https://folksy.com/items/6893079-Upcycled-fabric-buttons-3-pack-
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I made this peggy doll from larger pieces of fabric and some leftover tapestry wool. I don’t know how safe it would be to sell, but I loved making it and it gave me a rest from quilting.
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I make patchwork fabric with my leftover fabrics.
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I sell my stained glass scraps on Ebay for mosaicing. My fused glass scraps I squish into frit and use in my fused glass creations.
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With our wool roving, we felt acorns, with our leftover yarn stash, we make granny squares for blankets-not necessarily for sale!
I try hard for there not to be leftover and buy according to how much we will need to avoid waste but sometimes I am not so disciplined 
I am thinking of papering my walls with paintings that I can’t sell or don’t like…lol
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I always try to use all my fabric , but I still end up with a bag of bits and bobs 
.. these I collect and when the bag is full I take it to our local upcycyling/recycling class called Cov Cloth, run by a lovely lady called Adele, which I participate in. A lovely bunch of women all with their own talents regarding fabric. It’s then used for local community projects or the summer sewing classes for children during their school holidays 
Waste? What is that? I try to use every scrap of fabric. As well as my main box of remnants I have a bag where I collect offcuts that will manage to do a 2inch square, and another for those even smaller that would do a 1 inch square. I even have a bag of scraps too small for that - they have to be no more than a sliver before they go in the bin!
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No such thing as waste when you are a crafting hoarder. I can throw any clothes away with price tags on but a 6 inch length of thread might come in useful 
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Like most crafters, I hoard my bits and pieces of materials to use in small projects, so I don’t have a huge amount of waste. I even kept the bits of curtain samples that have the card backing on, to make into gift tags and bookmarks!!!
And a few years ago I made some patchwork fabric from tiny offcuts of wool fused to a backing, that I turned into greetings cards with some embroidered details.
However the scrap mountain does threaten to get big on times, so I started adding some pieces in my slow stitching kits, and also selling scrap bags on eB*y. My quilting cotton scrap bags based on kids prints and Xmas, sell well if priced at destash prices.