If you have ever dreamed of owning your own small business, you may be wondering how to go about starting a woodworking business.
Beginning a woodworking business can be one of the best entrepreneurial endeavours you’ll ever make.
Woodworking can be an excellent business because people continually need wood products.
You can be at the forefront of these demands and help provide consumers with attractive and innovative work.
However, there are many steps involved in taking your business from conception to operation.
The more you know about the woodworking industry before diving into the market, the better position you will be in to succeed.
This article will provide the information you need to decide if a woodworking business is right for you and how to start one.
Why Start a Woodworking Business?
The woodworking business has become a popular and profitable choice for many people.
Woodworking can be a very satisfying hobby. But for those who have made woodworking their livelihood, it’s an incredibly rewarding profession as well.
Starting a woodworking business could be a fun, relaxing, and potentially lucrative career change for you.
It’s more than possible to get into this niche with essential hand tools and minimal financial investment.
By starting with a few tools and organizing your business wisely, you can build a lifestyle business that earns you money in your spare time.
Woodworking is not just any business where you must run to client appointments or hold office hours at a workshop.
Instead, woodworking is your work of art – after all, it is the boss who works over the shop floor doing all of the legwork.
Also, working at home is a great way to keep overhead costs low while gaining the freedom of setting your hours.
You can do something you love while being your boss and working at your own pace with a woodworking business.
Things to Consider Before Starting a Woodworking Business
Starting a woodworking business can be profitable if done correctly. There are so many people with woodworking skills, and there is a massive market for beautiful wood items.
However, there are some things you need to consider before starting your business. Here are some of the things to put into consideration before you begin a woodworking business:
Workshop Size
When you are considering starting a woodworking business, you need to consider the size of the workshop where you are going to work.
By planning and measuring your workshop space, you can ensure enough space for large designs when building that new piece of furniture.
Noise Levels
Working in an open-plan office, especially if other people are working nearby, will cause time-wasting interruptions.
Make sure you can create a noise-free environment when required and that you can work with the noise levels around you.
Marketing
Planning your marketing strategy is an essential part of starting a woodworking business. Your potential customers need to learn about your business before they can purchase the products you offer.
Therefore, if you want to start a successful woodworking business, you need to have an excellent plan for marketing your products or services.
Supplier Challenges
Finding a reliable supplier goes hand in hand with running your own woodworking business. Running a successful business is all about making connections.
Some suppliers will be willing to work with you, while others will have high minimums for the products that you make.
So, your best bet would be to experiment with different suppliers, find what works for you and your business.
Packaging and Delivery
One of the things to consider before starting a woodworking business is packaging and delivery.
Deliveries are dangerous in most parts of the world, and you will want to choose a suitable courier that respects your work and tries as much as possible to protect it from damage.
Things can get damaged during transport, and finding suitable packaging will prevent such issues from cropping up.
The Suitable Niche
While there may be 100 different products you could make and sell, not all will be suitable. What people want is an excellent solution to a problem they have.
When finding a niche, look for something where you can bring supply and demand to a nice balance, something where you have enough of a supply to keep up with the competition.
10 Practical Ways to Start a Woodworking Business
Here are the steps that you will need to take to start your woodworking business:
1. Plan Your Business
You can’t run a business without a plan, and it all starts with writing one. Planning your woodworking business will help you decide where to start, how much to charge for your products, and how to market and distribute your work.
2. Form a Legal Entity
You can operate your woodworking business as a sole proprietor. With this type of ownership, you are responsible for all the business’s debts, taxes and other obligations.
However, you may find it easier to operate your woodworking business as a corporation or partnership.
Moreover, your woodworking business may be more likely to succeed if you avoid the risks of operating as a sole proprietor.
3. Register for Taxes
The next step in opening your woodworking business is registering for the appropriate taxes. This will depend on where you plan to do the business.
Also, if you plan to sell your wood products overseas, you will have to register for federal import duties. After you have registered for all of your taxes, it’s time to move on to the next step.
4. Pick a Woodworking Business Name
When it comes to starting a woodworking business, there’s no getting around the fact that your business name is crucial. It’s going to be the face of your business, so it’s worth taking a little extra time to make sure you get it right.
The last thing you want is to discover you pick a name that already has a business with the same name.
5. Set up Business Records
Setting up a recording system for your business is easy, but it’s essential to develop the habit early on.
You should create a chart of accounts that accurately reflects how your business makes money and then use it to record all the expenditures and income related to each job you do.
6. Obtain Necessary Licenses and Permits
Not obtaining the necessary licenses and permits means building your business on the wrong path.
Depending on your location or jurisdiction, you must obtain all the required licenses and permits to avoid hefty penalties, such as fines or business shutdown.
7. Get Business Insurance
Some jurisdictions require mandatory business insurance for a company to operate legally and safely.
Besides, your company’s financial wellbeing is insured by purchasing the right business insurance.
From general liability insurance to worker’s compensation insurance, there are different types of business insurance to consider depending on the size of your company.
8. Define Your Brand
Your brand is your business identity and outward appearance. The stronger your brand, the easier it can compete with the big guys.
A unique logo that expresses your business in a simple way will help you define your brand to your audience.
9. Create Your Business Website
The increasing dominance of digital marketing over traditional marketing makes it worthwhile for woodworkers to create a business website when starting.
Creating a website allows you to reach thousands of people worldwide who are already interested in your business.
Having a business website also gives your business a professional and modern outlook in this digital age.
Fortunately, Website builders like WordPress and Wix make website creation more straightforward than ever. However, you can have your business website created by a professional for a fee.
10. Set Up Your Business Communication System
Like any other business, communication is key to an effective woodworking business. You need to have a business phone number and email address available within your business hours or beyond.
This will give your business a professional and legitimate outlook while attracting opportunities to your doorstep.
5 Ways How to Succeed on Your Woodworking Business
Starting a woodworking business is one thing; succeeding is another thing. The truth is, not all woodworking business owners succeed and do not fail.
The difference between a successful woodworking business owner and a failed one is one thing: commitment.
If you want to succeed in this industry, you must be committed to every aspect of the business.
Here are five practical tips to consider after creating your woodworking business.
1. Acquire the Proper Skills
Before now, it was a passion, and now it’s a profession. Not arming yourself with the right skills will limit your opportunities in this industry.
Even if you consider yourself a pro, ensure you have all the necessary skills required for the best service.
As a beginner, the quality of your work speaks more than your marketing strategies. However, the quality of your work is only limited by your skills.
2. Find a Suitable Space
Having a big space distinguishes you from unprofessional woodworkers. The more space you have, the better your machines and overall workplace.
Whether an oversized garage or large room in your home, ensure you’re working in a big space enough to accommodate all your machines and tools without disturbing others.
3. Get the Right Tools
The tools you use will determine the outcome of your woodworking plans. You don’t want to produce substandard or poor-quality projects that can’t stand a comparative analysis in the market.
As a result, assemble your workplace with all the necessary tools and equipment for the perfect woodworking business.
Even though you can start with a few tools and expand as your business grows, ensure you have the following tools from the onset:
- Planers
- Joiners
- Paints
- Various saws
- Lacquers
- Handheld tools
- Sanding tools
- And other basic tools
4. Build Community Relationships
Building community relationships is a means to getting your business noticed quickly.
When you engage with like-minded people, it’s easy to express yourself in a way that adds value to their lives. In turn, you earn their trust.
This will allow you to market your projects to them without spending a dime. In some cases, you will have your business promoted for free.
However, building community is not an overnight endeavour. You must be committed and willing to consistently build trust in your interaction with people online or offline.
5. Keep Your Price Low at First
It may appear foolish to sell your projects below the market price for a start. But that’s one of the most effective strategies of competing with the big buys in the industry.
Most clients are enticed by low-price when making a buying decision. Thus, pricing your projects below the market standard for a start will likely bring more clients to your business.
However, you shouldn’t sacrifice low prices with high quality. Ensure you strike a balance to maintain and acquire new clients.
Conclusion
Like any other business, starting a woodworking business could be challenging, but it’s achievable once you’re skilled and committed.
Understanding the basics of starting a woodworking business will help you go a long way in avoiding costly mistakes and maximizing gains in the long run.
Hopefully, now you know what it takes to convert your passion to cash in the woodworking business industry.
If you need more help on how to start a woodworking business, don’t hesitate to notify us in the comment section.
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How to Start a Woodworking Business FAQs
How much does it cost to start a woodworking business?
The cost of starting a woodworking business depends on the cost of wood, materials, tools and other equipment. On average, you can spend up to $6,500 when starting a woodworking business.
Is a woodworking business profitable?
A woodworking business is profitable if you’re skilled, committed and have a good marketing strategy.
Can you make a living with woodworking?
Sure, many people are already making a living with woodworking. Whether part-time or full-time, you can make as much as you want through woodworking, depending on your skills and commitment.
Can you sell woodworking plans?
Absolutely. You can sell your woodworking plans but only once per project. How much you sell your woodworking plans depends on their quality and marketing strategy.
