Many amateur woodworkers have asked themselves the question whether they could turn their hobby into a profit generating enterprise. Woodworking as a business has obvious appeal because it takes something that you are already doing for free and enjoy doing and making money off it. However there are some things you need to think about before your start woodworking as a business. Here you will learn what you need to know to set up your own woodworking business.
The first thing you want to think about is whether you want to do custom woodworking or whether you would prefer to create a line of wood products. Both of these types of businesses have their advantages and their disadvantages. With a custom woodworking business the margins tend to be higher and the work is more varied. You will also get longer projects so you will have a better idea of how much work you have for yourself for the coming months.
When you produce a line of premade wood products you will have the advantage of a more varied customer base as well as less interaction with your clients. This can in some ways make for a more reliable business model because you are not putting yourself in the position where if one client is unable or unwilling to pay that it will upset your business too greatly. However you do not have the same predictability of the work ahead of you. You are only as good as yesterday’s sales and so some people prefer a custom woodworking model. One other advantage of selling wood products is that you can operate the business as a part time venture. Because you can work on your products in the evening after your full time job or on the weekend you can add to your existing income without having to take the risk on a woodworking business that may not succeed.
With either type of woodworking business you want to think about what kind of products or services you are going to specialize in and what your unique selling point is going to be. One of the mistakes that many woodworkers make is to try and be all things to all people. Instead you want to specialize and emphasize your uniqueness. One of the ways that you can do this is to use your region or heritage as a selling point. For example traditional German craftsmanship or the way that people tend to think of Amish products as being of higher quality. The more you can distinguish yourself the less you will need to have to compete on price which will enhance the profits from your business and its long term sustainability. So before beginning your woodworking business, think about exactly what kind of woodworking business you are going to run. What will your unique selling proposition be?
After you have decided on what type of products you are going to produce you need to work out what you need to build these and where you are going to work? Most woodworkers begin their operations from home and this is a good low risk way to get started. Provided you are using this space for your work you can still deduct the costs as a business expense. Setting up a woodworking business from home can be worthwhile from the tax deductions alone!
After you have decided where you will work you need to think about how you are going to market to your customers. Some options for advertising and marketing include classifieds both online and in the newspaper, home and garden magazines, online advertising such as Google Adwords, setting up an eBay or Amazon store, tabbed flyers at the community center or grocery store, direct mail marketing, and radio advertising. Whatever method you are going to use, you should know before hand how you are going to sell to your customers.
If you would like to learn more about how to start your own woodworking business selling simple to make crafts and furniture products from the comfort of your home. Simply enter your email address below and I will send you a free copy of the “How to Start a Woodworking Business Report”