Updated 24th October, 2017
Many people want a home based company because they have been laid off their job, or simply because they have a hobby that produces a product and they find other people want the product. Woodworking is one such hobby that can turn into a great money making business. Most people don’t just wake up one morning and decide they are going to start a woodworking business, generally they figure it out gradually because they have made some pieces that their friends like and are encouraged to make similar pieces to sell. They start making them and selling them, and find out that this is turning into a nice little side business. It’s a terrific start because it is a hobby that begins to pay for itself over a period of time; however, people need to know how to start home based woodworking business and not just wake up some morning with a great idea.
Most experts recommend that the business plan be put into place first, and generally that’s a great idea. However, before doing the business plan, make some of the products and see how they sell, and just how popular the product is because it may be a great fad for five minutes before the next hot product comes along, and the creator is stuck with hundreds of pieces that can’t be sold. The products have to be easy enough to make, durable, and affordable (at least enough to cover the expenses of the materials needed).
Once it’s discovered that these woodworking products are popular, then start setting up the business plan. Many cities require licenses or permits in order to operate a business out of the home, so call the local business development office to determine if the area is zoned for a home business. Then if the state charges sales tax, then get a sales tax certificate allowing the collection of taxes on the products, and set up an account with the state to remit the taxes collected.
Many people would rather create an LLC than a sole proprietorship because of liability issues, but that takes money to prepare the articles of incorporation. Payment options need to be considered, a bookkeeping system has to be in place, and this all takes additional money that takes away from the funding necessary to purchase the materials to make the products.
Another step is to write a marketing plan. Figure out who the target market is and determine how much they will be willing to pay for the product. Consider the magazines they purchases as well as newspapers and on-line markets along with social media. Get a Facebook page and get friends to “Like” and “Share” the page. Determine the very best way to market the products, and find multiple ways, don’t just market the product in one format.
Consider the local Small Business Administration because there is oftentimes funding available for budding entrepreneurs to start up a new business but can’t afford all the red tape that it takes to start one. There are many grants and loans available across the country that helps new businesses start up. Never avoid starting because of the fear of insufficient funds to run the business. Go for it and start looking for funding!
Acquiring right tools is one of the most significant aspects of your business. If you’ve already been into this business, you must be knowing what tools you can handle easily, even if they are complicated to use – for example circular saws, band saws and sanders. However, if you are a beginner, you should not spend so much money on fancy tools. Try buying used tools, which are in good condition. You can see lots of relevant ads on Craigslist or Woodworking Forums. Always discuss how the tool is with the community on forums as so many ideas and perceptions float over there that you would eventually gain good knowledge, and make an informed decision. You can read more about Woodworkers Hardware.
Woodworking products are popular with many people across the world. Some of these products include:
- Wooden toys: This includes all kinds of wooden toys, particularly regal wooden rocking horses.
- Frames of pictures and mirrors
- TV stands
- Book cases
- Night stands
- Plant stands
- Rocking chairs
- Bird houses
Though the list is endless, the quality of these products remains constant. No wonder, they are highly priced. One sure way of commanding a high price for such products is to give each one a unique character or look which they can be remembered by. This separates them from the millions of me-too products that are made every day, though they may be cheaper. However, they won’t be as durable.
Showing and Selling the Products
Once a good number of durable and highly priced products are sold and this niche creates a following, manufacturers need to produce a good number of such pieces that can be sold at flea markets, arts and crafts fairs and other such places where people are on the lookout for that one eye-catching piece that can lift their corner at home. Or, perhaps they want to gift something special for an upcoming festival or holiday.
Create a website: Perhaps, the woodworker that creates all those wonderful and unique crafts is not savvy with the Net, he can still get all the help he needs from websites that have wizards that do a lot of hand-holding for people like him. He can then have an online showcase of his products with digital pictures.
Advertising the Products
Now that the products are gaining some popularity, start advertising the products on the internet, local trade magazines, bulletin boards in the local stores, and join the Chamber of Commerce. Create some flyers to hang on the neighbors doors (just don’t put them in the mailbox – only the postal service can do that, and there are stiff fines and penalties for doing this). Get some business cards made that helps identify the products being produced and hand them out everywhere – there are always opportunities to advertise a product – lines at the grocery store, Chamber of Commerce functions, friends at church, political gatherings, where ever there are people, it’s an opportunity to advertise the products.
Here’s a great guide for those who want to know how to start home based woodworking business:
Launch the Business – How to run a woodworking business successfully: Tips
Creating a home woodworking business is tough. If you think of all that it takes, it sure is. First, the woodworker needs to create enough unique pieces to sell; next, he must know how and where to sell them, and how much of each product needs to be inventoried for buying every season.
He also needs to be familiar with the zoning laws, tax laws and the legal angle of his business. Though this may sound like a lot of work, once he goes through them, he can focus on designing and creating his wooden products. This will give him the peace of mind he seeks and he will be able to create all his woodworking objects which will justify setting up his business.