Tips for starting a woodworking business from home

Content 1. Tips for Starting a Woodworking Business From

Home

2. Starting A Woodworking Business

3. Turning Your Woodworking Hobby Into A Home

Based Woodworking Business!

4. Turning a Woodworking Business Into a Successful

Venture

5. Two Free Methods To Promote Your Woodworking

Business

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1. Tips for Starting a Woodworking Business From

Home

Starting a home based business such as woodworking requires a

plan. Starting a business with no plan or a poor one is a recipe for

failure. Part of this plan should include learning how to control the

costs of your home based business. If this business is a woodworking

business then this will be similar to many businesses which involve

the use of materials and specialized labour.

To make a profit in any business you need to keep track of your

costs. When you start your woodworking business you will need to

put a final cost on your products. This will include a number of cost

variables such as material, labour, overhead, shipping and other

miscellaneous items. This may not be accurate at the beginning and

you may take a loss. So that is why you need to keep track of your

expenses right from the start. Adjustments will have to be made to

insure that you make a profit as you grow your business.

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Here is a list of costs you should keep track of as you grow your

woodworking business:

Labour Costs - This should be determined by how much you would

pay a professional woodworker, if you hired this person as an

employee. This will be your personal labour cost. You could

determine the actual rate of pay based on a percentage of you the

cost of materials to complete a particular woodworking project.

Material - Each item you build will have a definite material cost built

into it. This cost will not change once you have purchased the

material you need to complete the project from start to finish. Keep

track of even the smallest items. Remember small things add up over


the course of a year and can become a large expense. These could be

fasteners, screws, nails, glue, sandpaper, miscellaneous tools and

masking tape, etc.

Overhead Costs - These costs include all those not involved with the

actual production of your woodworking projects. These would be

office supplies, advertising, insurance, rent, utilities, internet, phone,

office supplies and other related costs. You will need an office to do

accounting and sales. You might even decide to have a website which

would advertise your woodworking business. This website could

advertise products available to people beyond your local area. The

operation of a company vehicle could be included in these costs.


If you decide to ship your woodworking products to your customers,

include this cost in the price. Consider adding a shipping charge to

the final price and itemizing it on the customers bill. Be up front

about this. Explain to your customer there will be a shipping charge

before the final transaction. If your product is of high quality the

customer will accept this as part of running a business.

Keeping track of your expenses, even the smallest ones, is necessary

if you want to run a profitable business. Remember the money you

pay yourself for the labour is different then the profit. The profit is

the reward you reap for taking the entrepreneurial risk.




2. Starting A Woodworking Business

Turning a hobby into a business is how a lot of successful businesses

get started. Most hobbies can be transferred from hobby to business

quiet easily, with little effort, all that changes is the hobbyist makes

things to sell to others rather than making them for him or herself.

The list of hobbies that can be turned into a business is virtually

endless from making greeting cards, flower arranging to painting. As

long as there is a market for the products, and there's always a

market for custom made products, a business can be made from a

hobby.

Woodworking fits the bill perfectly. Starting a woodworking business

falls well into the category of a hobby that can be transferred to a

business with little effort. There's a huge market for custom made

wooden products from children's toys to garden furniture.


You don't have to be a master carpenter to make quality wooden

products; most woodworking hobbyists have the skills to make

unique quality wooden products and can easily make money

woodworking by making products to sell.

A quick walk around craft fairs will show you that many people are

already doing this. I always pay particular attention to handmade

wooden products when I visit craft fairs and I'm always amazed by

the wonderful products people make and they don't last long

because people snap them up. The demand for unique wooden

products is huge and constant. So many people want unique hand

crafted wooden products in their home and are prepared to pay for

them.


There's no need to put yourself under any pressure if you decide to

start a wood working business, just make something you enjoy

making in your own time and when you've finished sell it. You can

sell at craft fairs or to neighbours and friends. I'm not talking about

building a huge woodworking business, although that's more than

possible, I'm talking about making an extra income from doing

something you love in your own time.

If you can build wooden furniture or toys you can start a

woodworking business and earn an extra income for you. If you've

been a woodworking hobbyist for some time you will probably have

all the tools you will need to make products. One of the great things

about making money from your woodworking skills is you will soon

build up enough cash to buy some heavy machinery giving you more

options. This alone makes cashing in on your woodworking skills is a

good idea.


When I tell my students this they laugh. Why do they laugh? Because

they believe only other people have the knowledge and skills to

make wooden products to sell. And they are wrong; they have the

skills to make nice furniture for themselves so they can do it for

others for a price. Most people underestimate their skills and lack

the confidence to make things for others when they are more than

capable of doing it.

If you've been thinking of trying to earn money from your

woodworking skills but are afraid to take the leap then there's an

easy way to start that involves no pressure. I'd start making garden

furniture first because it doesn't require any delicate finishing or

expensive machinery and it's always in demand.


Garden furniture is a big seller, just wander through the big stores

and see how many tables and chairs are for sale. We all love to spend

time in our garden and we like our garden furniture to be robust.

The way to get off the start line is to look around at the table and

chairs sets that are for sale, choose one type you like and get hold of

some plans. Then simply go to your garage in your spare time and

start to make a table and chair set. You're not competing against the

big stores because none of them have the unique products you can

make.


Remember that while you may be building the furniture to sell it's

still your hobby so there's no rush, no deadlines so take your time

just as you normally would if you were building it for yourself. You're

using your woodworking skills to produce some unique garden

furniture that the big stores can't compete with. There are plenty of

people who will always buy cheap but there are also lots of people

who appreciate quality unique furniture and are more than willing to

pay good prices to get it. These people are your market.

Put a price on handmade furniture usually presents a problem for

those who are just starting, they are afraid to price higher than the

big stores. Don't be, like I've already said the big stores have not got

a single piece of the furniture you have made. Mt pricing strategy is

simple and effective. I work out how many hours I've put into making

it, charge that, then add on a premium for it being unique and

handmade and there's plenty of people who are happy to pay the

price.

Once you've built your table and chairs, or whatever you choose to

build the next stage is selling it. This is easier than you think. First set


a price for it; as I've already mentioned don't be swayed by the prices

the stores are selling the cheap mass produced items for, yours is

unique. So set a price that takes into account how long it took you to

build and then add more money on top for the unique craftsman

built product.


Craft fairs are a great way to sell items that are handmade. People

who attend craft fairs are looking for unique products, they don't

want the mass produced stuff that everyone has, and they want to

be different. They are looking to buy quality handmade items and

they expect to pay extra for them. As well as attending craft fairs you

can display your items to your friends and neighbours. I know lots of

people who make a decent amount of regular money from their

woodworking skills who started making things for their friends and

neighbours.

Friends and neighbours also have friends who also have friends,

believe me this develops into a huge market just by word of mouth

and the fact that you are making the items personally and so people

have to wait for them makes them all the more desirable. So if

you've been thinking of making money with your woodworking skills

then I'd advise you to have a go. The worst case scenario is that you

are stuck with a table and chairs set which I'm sure you can use.




3. Turning Your Woodworking Hobby Into A Home

Based Woodworking Business!

There are a number of things that go into starting a home-based

woodworking business. Some are more important than others but

they all deserve your attention. I believe the most important thing

though is planing, and the most important part of planning is your

business plan. Talk to anyone that has been in business and has been

successful and they will tell you that this is probably the most critical

step in the start up phase of any company.

Don't let anyone tell you that going into business is an easy thing to

do, there is an old saying that if it was easy to be in business then

everyone would do it.


Now that has been said, let me tell you from personal experience (I

have started three successful businesses of my own) that if you

decide to take the plunge and start a woodworking business and are

willing to do the hard work that the rewards will be well worth the

effort.

One of the first things you need to do is develop a business plan, in

layman's terms, this is a road map on how to get from here to there.

The business plan will allow you to organize your thoughts and goals

in a clear and concise manner. Your business plan will need to

encompass a number of different issues.

First and foremost are your projected financial statements, which

should include a current balance sheet. This is also referred to as a

profit and loss statement (P&L) or revenue statement. This is

basically an accounting of sales, expenses and net profit for a given

period of time. You will also require a cash flow statement, which is a


measure of your financial health. It basically shows cash receipts

minus cash payments over a given period of time. You will also need

pro forma balance sheets and income statements for a minimum of

three years, these statements include assumptions and hypothetical

information built into the data.

With all this in hand, you will be better equipped to allocate

resources. All of the above are absolutely necessary for any

woodworking home business, especially if you are going to a

financial institution for a loan.


The bank wants to see a business plan for a number of reasons, but

basically it shows them that you have taken the time to think things

through, and by looking at the financial statements, they can get a

good idea if your woodworking business is viable operation and

deserving of a loan.

There are a few other things that should be included in your

woodworking business plan. Remember, the more detailed the

better. If you don't have a location you will need a location plan but

more than likely when starting a home-based woodworking business

your location is already fixed because you are turning your existing

hobby into a profitable business.

You need to have a portion of your business plan that's dedicated to

risk management (insurance). Because all the equipment we use in

our woodworking shops is an inherently dangerous. There is liability

insurance, property insurance, work interruption insurance and if

you have employees workman's comp. Risk assessment is a very

important part of any business large or small a mistake made here

can cost you your business and your livelihood.


Your business plan should also have a portion dedicated to

marketing. this can be done in a number of different ways. There are

always the traditional methods such as advertising in woodworking

magazines or in the newspaper, and these things still work. But in

today's environment, the best way is the Internet and in order to

accomplish this you will need a website and you will need to learn

SEO (search engine optimization) so you will get noticed on the web.

Search engine optimization is like anything else, it's not overly

difficult, but takes time to learn You can also contribute to blogs and

forums to get the word out. Marketing is the lifeblood of all business

because creating sales channels and customers for your products is

essential to your success.


Never let your woodworking business plan become stagnant it

should be reviewed at a minimum of once a year to take into account

changes that have happened in the overall economy or changes in

your goals. However, I personally recommend a semi annual review

of your business plan. The closer you are to your business plan, the

better the chance you have of being able to adapt to a changing

business environment and mapping out your strategies for success.

Remember the rewards always outweigh the work. So get out there

and start your own woodworking business.

Remember nothing worthwhile is easy, but if you still have the

passion and want to be your own box and become independent click

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4. Turning a Woodworking Business Into a Successful

Venture

If you have a passion for woodworking, maybe you should think

about creating a woodworking business. Most likely, you have built

furniture on the side, worked in construction, or created products

with another carpenter. There comes a point when you should

consider venturing out on your own and taking the leap to start your

own home woodworking business. For many, the idea starts as a

hobby, and it eventually turns into a full-blown success story,

especially if you do things the right way from the very beginning.

Starting With the Basics

Starting a woodworking business won't take a lot of extra work if you

are already a pro with wood. Mainly, it means understanding all the

local and state requirements for opening this type of business. You

will have to follow all the specified steps, because you don't want to

discover that something was forgotten later. This could prevent your

home woodworking business from opening right away.


You should also know what you want to create. At first, this can

mean just finding your niche. Finding your niche doesn't mean more

products can't be added later, but people will usually be more

successful when they have something in particular to sell. Then, you

can market this group specifically.

Finding Quality Supplies

When opening up a woodworking business, the first things to

consider are your tools and supplies. The types of items you should

have at the beginning are saws, a square, clamps, hand drills,


hammers, tape measure, and chisels, along with certain power tools. The more tools you have at the very beginning, the more you will

benefit later when it's time to shop for more. For one, it helps get

your business off on the right foot to help you become successful

much faster.

If you need some items that are more specific or technical, start by

creating a list of needed tools and then write everything else you

want down on a separate list. Decide a time table for getting each of

these tools. This decision can be adjusted later, especially if the

business prospers a lot faster than you originally imagined.


Finding a Good Supplier

If you want to create a quality product, it is important to find a good

supplier that provides the best value for your money. This means

quality wood handling tools and the right types of wood. It is

important to stay away from sub-standard materials, because this

normally cuts down on business. When the product is top notch and

is known to last, the more referrals you will gain. This means you

attract business, which is always your goal when starting a

woodworking business.

Marketing Your Wood Products

For those wanting to create a woodworking business that lasts, it

helps to learn the best marketing techniques. This helps you reach

the maximum amount of people, which generally means more

income. It means joining a woodworking organization and

connecting your talents with others around the world. These are

people who have the knowledge to guide you though the process of


opening, maintaining, and being successful in the world of

woodworking.



5. Two Free Methods To Promote Your Woodworking

Business

One of the most basic truths in any business is that in order to sell

any product you need buyers. When trying to get customers for your

business you need to consider where they spend their time and talk

to one another. This is where online forums come into play. There

are forums for all types of types of products, services or niches online

and one of the better ways to become known is to join a forum

specializing in your product or niche. Not only does this method get

you new customers, but you will also be able to help people by

providing them with solutions to their problem. You are providing

real help to others and creating sales at the same time.

Finding forums online is simple. Pick a category and perform a

search. A good place to search for a woodworking business forum

would be in the home and garden category. Go to Google and type

"home and garden forum". Experiment with your searches by using

different terms until you come up the proper results. If "home and

garden" doesn't give you the results you want, try "woodworking" or

"wood crafts".


There are many relevant forums out there that you can use to

improve your woodworking business. However, it is important that

whichever forum or forums you join meet certain criteria.

Be certain when posting that the forum is community driven and

popular. You need to know that the forum is popular and that people

are actively and currently posting. Make sure that the posts are

recent and not six months old.


Once you join, look through the forum for posts and questions that

you have an answer for. As a woodworker you probably have more

knowledge about woodworking and carpentry than most of the

people on the forum. This will make you a valuable and popular

resource.

How Does This Help Your Woodworking Business?

When you joined you also created a profile. You can put a link into

your profile that is called a signature. Many people use this area to

add a quote or some type of personal information. This is where you

want to put something like "Click Here for Woodworking Quote" and

link it to your site.

Niche specific forums usually get lots of traffic. These forums will be

visited by the type of people who are interested in your products and

services. Once people see that you are knowledgeable they will they

will want to learn more about you and click on your link.


It is important not to spam these forums. This means that you do not

want to actively try to solicit business. Just answer questions and

become a reliable resource. Follow these steps and the business will

find you.

Another way that you can use your own knowledge to get business is

through Yahoo Answers. Yahoo Answers is an informational site

where people ask questions on many different topics.

Once you have joined Yahoo Answers you will be able to start

answering other peoples questions. Look for questions that relate to

your woodworking business or general carpentry. You are allowed to

include a link with your answer. This is where you would insert the

link to your website.


Both of these techniques are good reliable methods that will

produce positive results, but the main thing is to be consistent and

do it. Join some forms and set aside twenty minutes each day to visit

and answer some questions.

It really is a win-win situation. As you continue to help people you

will develop a flow of customers that will help your woodworking

business flourish.

