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According to IBISWorld, the Wood Product Manufacturing Industry in the U.S. grew by 4.5 percent over 5 years to reach revenues of $8 billion in 2018. In the same timeframe, there was a woodworking business growth of 3.3 percent and a rise of employees by 5.3 percent.
These numbers attest to the opportunities available for anyone wishing to invest in this industry. With the right information, proper planning, and determination, you can also start a woodworking business and achieve tremendous success.
Woodworking Business Overview
A woodworking business venture entails the manufacture and sale of items made of wood. These commodities may include home or office furniture, picture frames, doors, decorations, and storage cabinets.The top 50 companies in this sector control less than 30 percent of the overall market. So, this leaves plenty of space for new and smaller wood shops to enter.Anyone with some passion, skilled hands, and basic math knowledge can venture into woodworking and make a living from it.
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A woodworker typically spends the day crafting or repairing wooden products. And the individual may also spend time sourcing materials, interacting with customers, and marketing the business.A woodworking business generates income through the sale of original wooden products. The business may also get profit by carrying out repairs or upgrading already existing products.
10 Tips for Starting a Successful Woodworking Business
To enjoy success with your woodworking business, keep these tips in mind.
1. Make a woodworking business plan
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A woodworking business plan is a document that details the future objectives of your business and lays down strategies on how to achieve them. Writing down your ideas, short-term goals, and overall objectives help create a sense of direction.With a sound business plan, you can be able to achieve several things. First, such a document can be vital in convincing investors to partner with you.Second, it helps you think ahead and determine possible risks and how to prevent or manage them when they occur.
Thirdly, a business plan helps you determine how you will go about setting up the business itself. It details information such as deadlines and requirements that you must fulfill within a given period.Without this document, you risk doing things haphazardly, and that is a recipe for disaster.However, if you craft a good plan, you can always refer to it when things start to get a bit confusing.
2. Raise the necessary capital
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Your woodworking business needs some amount of money to get off the ground. As you’d expect, you need money to run errands, acquire essential tools, and purchase raw materials.For many people, raising capital presents a lot of challenges. But that’s because they imagine that they need a huge amount of money to start. However, that capital doesn’t have to be a lot of money.A particular way you can raise this amount is by taking out some money from your savings. You can also approach relatives or friends and ask them to chip in or give you a loan, which you will repay when the business starts picking up.Alternatively, present your business plan to various investors for review. You’ll be shocked at how many people are willing to invest in an idea that has a well-thought-out business plan.Even with a little amount, you can start your business in your home office or garage.
3. Find a mentor
One of the greatest resources you can ever have as a woodworking business entrepreneur is quality mentorship. So, you need someone who has been through the nitty-gritty of starting and running a business to give some guidance.Such an individual can be an uncle, neighbor, or a professional from a free business resource. A mentor can offer timely support when things don’t seem to be going well.The individual can give timely advice, words of encouragement, and even provide solutions to challenges that may be slowing you down.
4. Create an ideal workspace
Creating the ideal workspace is key to achieving woodworking business success. If you’re on a budget, it may be a good idea to convert your garage to something more suitable for woodwork.However, this can only work if you won’t be causing any disturbance to neighbors or family members.If you raise enough capital, you can always consider going for an affordable rental workspace. But pay attention: As you build this work area, don’t forget to comply with safety requirements.
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That will ensure anyone that walks into the workshop is safe.A functional workspace has distinct areas for specific tasks to avoid confusion and interference with other workers. It has enough room for workers to build different furniture or items without straining.Additionally, it can evolve according to the growing needs of your woodworking business.
5. Acquire the necessities
Any woodworking business must have certain basic items to run. These include equipment, tools, and safety gear. Some of the things you should prioritize are:
- A power jointer and thickness planer
- Circular saw like the WORX WORXSAW
- Hand saws, a router, and two router bits
- A Jigsaw such as the BLACK+DECKER BDEJS600C, for cutting curves
- Combination square and a tape measure, along with crayons, pencils, a knife, and an awl for marking
- A power drill such as the Dewalt DCD771C2, and bits as needed
- Rasps, files, a random-orbit sander, a smoothing plane, and a block plane
- Chisels and a mallet like the Crown Beechwood Mallet
- A hammer and some screwdrivers
- A Workbench such as the Keter Folding Sawhorse
- A puttering bench and clamps
These are just some of the things that you will need to complete woodworking tasks. Of course, there are plenty more you will need to add to the list as you get down to business.
6. Register your woodworking business
For your business to run smoothly, you are going to have to obtain the necessary permits and licenses. So, you should be certain to consult the local authority departments for business registrations to find out about the requirements you must meet to be approved.Be diligent enough to comply with all the rules and regulations that are set out. Failure to follow the law can easily lead to hefty fine or worse, your woodworking business may be closed down.The process of applying for a license is relatively simple and will not consume too much of your time.
7. Open a business bank account
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As soon as you are ready to launch your business, it’s wise to open a woodworking business account.Some common business accounts include a checking account, a savings account, credit card account, and a merchant services account.A business account will allow you to accept debit and credit card payments from your customers. That inevitably heightens convenience and safety for your business and customers.Such an account also lets you enjoy additional benefits like:
- Limited personal liability protection by separating personal and business funds
- Gives your business a professional outlook thereby boosting customer trust
- Opens a line of credit for the company
- It increases your purchasing power by establishing a good credit history
8. Get woodworking business insurance
Getting insurance for your business is likely to guard against risks that may otherwise cripple or stunt business growth altogether.There are different types of cover you can consider depending on your particular needs.If you’re planning on hiring employees, you might want to go for workers compensation. You should also cover your assets under specific policies.The key is to scrutinize the options available from your local insurance company and settle on the most reasonable.
9. Implement marketing strategies
Come up with marketing strategies and do your best to execute them. Without marketing your woodworking business, you may not achieve your full potential. Take note of what your competitors are doing, then learn from them.One of the best ways to market your business is through word of mouth. Get the information out there by talking to people.This marketing strategy will not cost any money but has the potential of bringing in a lot of customers.Social media is another resource you should utilize. Share pictures and videos of your products to attract people’s attention. You can also go ahead and create a website where clients can come and view what you have to offer.
10. Stay up to date
Like most businesses, the woodworking business is also prone to changes and technological advancements. By staying up-to-date with the latest news, technologies, marketing strategies, and customer needs, you will be able to remain relevant for years to come.Talk to people in the woodworking industry to learn what they’re doing. Go through Internet pages that carry industry related information and always listen to customer feedback.That will eventually enable you to evolve and position yourself as the go-to woodworking business locally, nationally, and even internationally.
Be Determined to Achieve Success with Your Woodworking Business
The woodworking industry has been around for thousands of years and will remain relevant for years to come, which is why venturing into it is likely to have good outcomes.But make sure to keep communicating with clients and build professional networks at any opportunity you get. It will help fast-track and enhance your chances of success.Like any other startup, your woodworking business is bound to encounter some challenges that may seem impossible.However, if you stay determined and make these tips your reference point, you will overcome your trials and achieve success.Do you have plans to start your own woodworking business? Share your thoughts and experience with us in the comment section below.
Last update on 2023-01-28 at 05:57 / Affiliate links / Images from Amazon Product Advertising API