How to Start a Woodworking Business

Wood has long been a popular material to make things from for its beauty and usefulness. Many people continue to look for - and pay hefty prices for - wood items today. A woodworking company focuses on producing goods such as furniture or other desirable objects from wood.

For the highly skilled, woodworking is a very prosperous industry. Owning your own woodworking business has many benefits:

• When you start a woodworking company, you are your own boss.
• Starting a woodworking business has the potential to be quite lucrative.
• Starting a woodworking business gets you involved in your community and connects you with other business owners.

Ready to embark on the journey of opening a woodworking business? Let's discuss how to develop the proper skill set that all great woodworkers share.

Develop Your Skill Set

If you want to make money woodworking, the first thing you need to do is improve your woodworking skills. The Woodworkers Guild of America has tons of resources for people who are just starting or who want to improve their skills. Whether you're looking to learn the basics or expand your horizons, they have something for everyone.

One great way to learn how to start your own woodworking business is by joining and participating in workshops and classes at a smaller woodworking business near you. This way, you can glean first-hand knowledge from someone who has already been successful in the field.

Woodworking Business Ideas

Before you open your woodworking business, it's important that you not only develop the skills required for success but also decide which type of woodworking business is right for you.

These businesses typically fall under a few categories: Cabinetry, Custom Furniture, Crafts, Carpentry Businesses, Finishing Work (floorboards, baseboards, tables, etc.), and a woodworking "hub" offering companies and individuals the tools, lumber, and craftsmanship they need.

The type of woodworking company you want to start will likely be influenced by the demand for the service or products in your area.

Create a Business Plan

A plan is critical to success, even if you're the most free-spirited entrepreneur. It allows you to map out your business and uncover unknowns. A few topics you should include are:

What are Your Expenses?

The typical woodworking business has two categories of expenses: material costs and overhead. The former should be offset by sales, while the latter can include rent, utilities, and buying minor materials.

Finding Your Target Market

The best client for a woodworking firm is someone who loves wood products and has disposable income. Such a person is likely to be interested in the items and have the funds to purchase them.

How Will You Make Money?

A woodworking firm earns money by making and selling wood products. You must decide what you will sell, your specialties, etc.

How much can you charge customers?

The cost of wood products can differ significantly. Similar wooden items may be priced very differently based on the production process and where they're sold. Business owners should consider several things when trying to price their woodwork, for example, the cost of resources, what hourly wage they want, and any fees that come with selling.

How Much Money Can You Make?

How much money can a woodworking firm make? The answer to this question is based on the goods manufactured by a business owner, where those items are sold, and how skilled the company owner is. Some firm owners sell modest items locally, and their earnings may be comparable to that of part-time employment. Some business owners are in such high demand that their work easily earns them a six-figure salary.

What steps can you take to make your business more profitable?

Classes are a great way to bring in revenue and expand your customer base for a woodworking business. Not only will classes attract individuals who are already interested in the field, but some may also decide to buy your finished products!

Pick A Company Name

Several things go into creating a good woodworking business name.

Simplicity

Picking a name for your brand or website should be short and simple so that people can remember and spell it correctly.

Represent Yourself Yourself

Make sure your woodworking company's name is one that represents the core of your business and conforms to the image you're trying to develop.

Clarity

When choosing a name for your business, make it known what you do, but try to stay broad – this way, you won't be pigeon-holed into one area and have room to grow. For example, if you construct custom woodwork, you might want to use the term "custom."

Funding For Your Business

Where will you get your woodworking company's start-up cash? We've outlined a few options below. Consider each option carefully before making a decision which is best for you.

Your Savings Account

If you have the money, you might begin your business with your own finances.

Investors

If you don't want to dip into your savings, working with investors can be a great way to get funding for your business. They offer advantages such as financial support, mentorship, and connections.

Business Loans

If you want to take out a loan for your business, there are a few steps you need to take first. The most important is determining how much money you need; this way, you can get an accurate estimate from the lender of how much they're willing to give. Additionally, they'll want to see that you have responsible plans for using the funding through things like a comprehensive business plan.

Remember that you'll need a good credit score to be eligible for a loan. The credit score of potential lenders is based on your track record of paying back money previously supplied. If your credit score is poor, collateral may be required.

The Legal Structure of Your Business

Below we have highlighted a few business structures we recommend for your woodworking company.

A sole proprietorship is the most simple business to start. One disadvantage is that it does not provide personal liability insurance.

Investors can limit their potential financial losses by creating a limited liability company. This type of business organization also allows businesses to operate more freely.

A partnership is when an entrepreneur agrees to go into business with one or more people. A partnership provides personal liability insurance as well.

When determining what business entity is appropriate for you, consider your company's goals and the degree of liability risk you are comfortable with.

Business Credit Cards and Bank Accounts

To help you organize expenses, get a company credit card and bank accounts for your woodworking business. You can apply for a business credit card at any bank or through a credit organization.

After your business credit card application is approved, you can use it to make company purchases and help establish a credit history for future loans and lines of credit.

Insurance

Business insurance is required to safeguard your company in the event of an accident. The following are the most common sorts of business insurance:

• Business General Liability Insurance protects you financially when someone is injured or their property is damaged due to your business activities.
• If you are forced to let go of any employees, unemployment insurance will protect them. We hope your woodworking business never has to experience layoffs; however, recessions are unpredictable.
• If your woodworking business deals with sensitive customer information like credit card numbers and social security numbers, you might want to consider cybersecurity insurance. This type of business insurance can help protect you if hackers target your company.
• Professional Liability Insurance protects you against legal action if your professional analysis of a home structure proves incorrect and the structure collapses.

Most of these types of business insurance should be readily available from your local insurance agent.

Find a Location for your Woodworking Business

Every woodworking business owner will eventually need to find a long-term location for their workshop. Some people are lucky enough to be able to start their woodworking businesses from home, but as the business grows, they'll need more space.

Before purchasing a workshop, it's better to establish your funding sources, budget, and legalities first. Because customers are research-savvy and often compare prices before making a purchase, it can be helpful to know the cost of operating in a certain area. This way, you can factor the costs of starting your business into your pricing method.

Purchasing High-Quality Equipment

You can't run a successful woodworking business without first acquiring all required tools and materials, from saws to chisels to wood products.

Measuring Tape

As the most affordable item on this list, the measuring tape is invaluable to a woodworker. Consider upgrading to a woodworker's ruler or measuring block after a while for more accurate measurements.

Table Saw

A table saw is an essential piece of machinery for any woodworker who wants to make clean, precise cuts on boards of various sizes.

Circular Saw

The circular saw is one of the most versatile pieces of equipment in your workshop. Circular saws are available as both stationary and portable tools. These devices are useful for various tasks, but they are especially suited to cutting large wood boards.

Backsaw

A backsaw, unlike a table saw, has a stiffened rib running along the edge adjacent to the cutting edge. Although it isn't as accurate as a table saw, it is considerably easier to use in confined areas or job sites where power tools may be dangerous.

Thickness Planer

A planer is a tabletop tool that shaves wood to a consistent thickness, which is essential for many jobs.

Routers

Routers are handheld devices that may be used to create patterns, designs, and grooves in multiple pieces of wood. You can even use these instruments to reconstruct damaged parts' patterns.

Orbital Sander

If you're just starting out with woodworking, an orbital sander is a good handheld tool instead of a belt sander. Belt sanders move more quickly and are more jarring when they touch wood, so it's better to get practice using an orbital sander before moving on to something stronger.

Clamps

When you're working on a project in the shop, clamps help to hold all of the components together until the final product is assembled. It's always better to buy more than you think you need because chances are, you'll need them all!

Dust Collector

If you want to keep your store clean and safe, you'll need a dust collector.

Hammer

It may appear obvious, but having a high-quality hammer (or more) in your workshop is critical. It will last a long time and cause less wear on your hands than low-quality equipment.

Workbench

A dedicated workbench is necessary for anyone looking to complete woodworking projects, whether you have a home-based business or are working out of a busy workshop.

Chisels

A high-quality set of chisels is not expensive and should be your go-to tool when you need to cut or shape wood by hand. They are especially useful for creating custom furniture or small intricate wooden objects.

Promoting Your Business

A powerful brand will communicate to the public what your company is all about and help you distinguish yourselves from other businesses.

Marketing your woodworking business doesn't have to cost an arm and a leg these days. The internet has made it easier to get the word out about your shop. Here are a few ways you can promote your woodworking business online: social media, your local newspaper, advertisements, business cards, word of mouth, and sites like Etsy.

Closing Words

By providing high-quality goods at reasonable costs and educating customers about the production process, a woodworking company may distinguish itself from other wood shops. Starting a woodworking business won't be easy, but it will be worth it!