Are you interested in starting a home business? Have you ever thought of starting woodworking business? Well, starting a woodworking business is one of the best ways to change your hobby into a money-making activity.
But starting a woodworking business goes beyond creating wooden objects. It requires both research and planning, especially in business management and marketing.
As an art, woodworking is really gaining ground since many people require goods made of wood such as furniture, wood carvings, luxury home stuff, toys, and more. But why should you start a woodworking business?
Why start a woodworking business?
If you enjoy working with wood, this is the best way thing to do and get paid for doing what you love. Apart from doing what you love you will also have the opportunity to make things that people appreciate which can be very rewarding.
You will work from home on your own schedule hence you will not need to dress like you would when you are going to work. Having this flexibility will also enable you to do other things such as traveling and family activities.
This kind of business can be a low-cost business especially if you know the kind of materials and equipment that you need. You do not have to hire staff, lease a retail storefront, invest in a lot of inventory.
You can just start your business and gradually expand the number of your client’s increase. This can really be helpful especially if you are on a limited budget.
Furthermore, there are several woodworking opportunities that you can engage in. You could teach, design plans or even write a book about woodworking.
Writing a business plan
According to experts, you need to put down a business plan. However, before doing this, it’s important to create some products and see how they are doing in the market. The first products should be easy to create, affordable and durable.
Once you have realized they are popular you can go ahead and start writing your business plan. Your plan should clearly show how you want to run your business even before your open shops.
It should contain every detail that you need for running the business since, in essence, it’s what will guide you. You also need to factor in the amount of money that you will need as capital and the most important woodworking tools that you will need so that you can see whether you can afford or not.
A business plan is meant to help you anticipate and understand what’s it’s going to be like starting the business. Before finally coming to the actual running of the business you will have to cross many bridges.
It’s important to note what to expect, how you will start and what you will need to do to avoid making expensive mistakes. Most people who come up with a business plan have acknowledged that it plays a significant role towards the success of the business.
It’s, therefore, advisable to have an informal plan that you can always perfect as you move on.
How to finance your woodworking business
This is perhaps the most important thing when it comes to woodworking business. How will you get the capital? Will you borrow or use your savings? Apparently, in the current economy, it’s not always easy to finance your business.
But since many people have started their businesses with very tight budgets before, with good planning and care you can also do it. Some of your sources of finances may include investors, personal savings, crowd funding, partnerships, loans and credit cards.
One of the reasons why people are reluctant to start woodworking businesses is because they think they need a huge place to set up this business. However, you can set up a successful woodworking business in a very small place or even in your house.
You only need some little planning and preparation and you are good to go. When it comes to getting a good location, you need to be a bit thoughtful so that you can end up in the best. Remember, location is one of the challenges that usually face many business startups.
For you to get a location that can bring you success you need to consider aspects such as road networks, demographics and brand awareness
How to start your business?
Once everything is in place, you can start your woodworking business. Here are the key steps
Decide how you want to manage your business
You can either start by making luxury home stuff and taking them to the customers or taking orders and making what your customers want. You should also decide how you will market and sell your products. You can always do this through garden stores, trade shows or even have an online shop.
Although you can sell your products through a combination of these, you need to decide in advance so that you can work according to your plan.
Set up your business according to the rules
Currently, there are set rules that you need to follow if you want to start any kind of business. For your business to be viewed as legitimate, you should get permits and licenses required by your local authority.
If you live in a state that collects taxes you need to apply for tax certificate and be tax compliant. In case your business has a different name from the one that you have been given ensure that you file the name with relevant authorities. If you will be making your crafts from home inform the authorities.
Purchase the necessary tools
If you do not have the important woodworking tools and materials that you need, it’s very important to buy them. You also need to obtain other supplies and equipment’s that you need to run your business. These include a phone, a computer, and payment processing system.
Market your business
Before you embark on a serious business, it’s very important to send a press release to your local media about your woodworking business. You should also network with home and other shops, real estates personnel and other people who are concerned with home décor.
Advertise in publications, attend trade shows, and visit media outlets that target your business.
How to win customers?
Although starting a business on the correct footing is good, it’s also very important to learn how you can win customers. Your business plan is only a document that will help shape your business but the real work comes in winning customers.
Once your business is up and running you need to direct all your efforts on how to
- Evaluate your customers.
- Turn your competitors into collaborators.
- Advertise more effectively.
- Do social media marketing.
- How ethics work.
You should also know how to retain your customers so that they can become repeat customers. Always stay in touch with them and show them that you care. More so, work together with them and display your advertising while targeting them.
Remember, it usually takes a lot of effort to start a woodworking business at home and make enough products to sell.
Mistakes to avoid
- Having the wrong attitude– This is perhaps the most serious mistake that can kill your home business even before you start it. Any kind of business success is usually over 95% attitude.
If you do not believe that you will succeed in what you are doing then there is no need of even starting the business. Before coming up with a business plan learn to think positively because this is what will make your business to succeed.
- Avoid having hobby mentality- Although anyone can make money with their hobby, you cannot make a good living with it unless you start treating your hobby as a business.
People normally go into business to make something. If being profitable or making money is not your goal then you are not doing any business. Have a business mentality and you have made one important step to success.
- Not marketing your business– It does not matter how good you are at what you are doing. If you cannot market and sell your products you will not make anything. The worst mistake is trying to sell the features of your products instead of selling the benefits.
Learn the difference between the features and benefits and then sell the benefits.
- Not planning well for success- When it comes to a small business, this is usually the biggest problem. They normally forget to plan early for the success of their business and end up failing. Without any good plan, you should not expect your business to succeed.
For you to get a consistent income you must plan for the success of our business.
- Not understanding your responsibilities– When you become a business owner, you need to know your responsibilities. Remember, you are not only a woodworker but a planner and businessman as well. You must, therefore, develop a real working plan that outlines all your responsibilities.
- Being afraid to get help– As a business owner, you should not be afraid to get help if you are stuck.
Well, that is how to start a woodworking business.
About the Author Kevin Smith:
Hi! I’m Kevin, voice of LuxuryHomeStuff.com, blog author, and passionate manufacturing engineer. This space is where I share D.I.Y tips, smart home appliances, stories of home-improvement and home-decor, and resources to help you explore an informed and compassionate relationship with luxury home stuffs.