Turning Woodworking from Hobby to Business

There are also plenty of woodworking business opportunities outside of building products. You could teach the craft to others, write and publish a book about woodworking or sell design plans.

Starting a Woodworking Business from Home – A Complete Guide

• Industry Overview

This industry manufactures wood products not produced by sawmills or by manufacturers of veneer, engineered wood, millwork and mobile homes. Therefore, industry products are miscellaneous. They include wood ladders, cabinets, kitchenware, broom handles, kiln-dried lumber, reels and toothpicks.

The Wood Product Manufacturing industry has turned a corner since the collapse of the housing market, driven by improving household income and a rebound in housing starts. However, the growing popularity of low-cost imports and competition from non-plastic substitutes will limit profit growth in the coming years. Nonetheless, expanding residential construction, falling unemployment and improving incomes will lead to strong growth for the industry.

• Interesting Statistics About the Woodworking Industry

The Wood Product Manufacturing industry has a geographic distribution similar to other wood manufacturing industries. The majority of industry establishments are located in the Southeast, Great Lakes, Mid-Atlantic and the West. Typically, industry manufacturers choose to locate near upstream industries such as sawmills and millwork producers.

Additionally, establishments located near major wholesale and consumer markets, as a considerable portion of industry products are eventually purchased by households. The Southeast dominates production, accounting for 24.0% of industry establishments.

Within the region, North Carolina and Georgia are the major producers, although industry establishments are distributed prominently throughout the region. Woodworkers held about 237,200 jobs in 2014. The industries that employed the most woodworkers were as follows:

• Other wood product manufacturing – 23% 
• Wood kitchen cabinet and countertop manufacturing – 21% 
• Household and institutional furniture manufacturing – 11% 
• Sawmills and wood preservation – 10%
• Office furniture (including fixtures) manufacturing – 10%

Although many smaller shops employ a few workers, production factories can have as many as 2,000 employees. Working conditions vary with the specific job duties. At times, workers have to handle heavy, bulky materials and may encounter noise and dust. As a result, they regularly wear hearing protection devices, safety glasses, and respirators or masks.

Woodworkers are exposed to hazards such as harmful dust, chemicals, or fumes, and must often wear a respirator or mask. Others may be exposed to excessive noise and must wear hearing protection devices. Most injuries involve sprains, back pain, carpal tunnel syndrome, and hernia.

These injuries or illnesses come from excessive amounts of awkward bending, reaching, twisting, and overexertion or repetition. Most woodworkers work full time during regular business hours.

Starting a Woodworking Business from Home – Market Feasibility Research 

• Demographics and Psychographics. 

Those who need the woodworking services include children, adults, corporate organizations, as well as individuals.

List of Niche Ideas within the Woodworking Industry

Woodworking is a very wide field. The products that you can choose to make are also varied and give you a lot of choices. In order to maintain better focus and to start with clarity and precision, it is better if you decide which category of products you are going to cater to.

There are 2 basic factors that you need to consider when deciding a niche for your woodworking business. You need to look at your own skillset and you need to look at the market demand and supply.

• Basket weaving
• Making beer and wine wooden crates
• Cabinet making
• Wooden beer mug 
• Cardholder
• Carpentry
• Chip carving
• Craft Supplies
• Candle Holder: Wooden caned
• Cutting Board
• Hardwood chopsticks
• IPod and Device Stand
• Jewellery Box

The Level of Competition in the Woodworking Industry

Demand is closely tied to the level of home construction. The profitability of individual companies depends on efficient operations because many products are commodities. Large companies enjoy economies of scale in purchasing. Small companies can often compete successfully by focusing on a local market.

Overall, the US industry is fragmented: the top 50 companies account for about 30% of industry revenue. However, some segments of the industry would shrink due to over-attachment by newcomers.

List of Well-Known Brands in the Woodworking Industry

• ANDERSON – US
• CASCO – US
• Weyerhaeuser – US
• Sekisui House – Japan
• Stora Enso – Finland
• Svenska Cellulosa – Sweden
• West Fraser Timber Canada

Economic analysis for the Woodworking Industry 

Consumer confidence and per capita disposable income are expected to recover in the next few years, boosting demand from households for the industry’s products. Downstream industries, such as wood product manufacturers, carpentry contractors, and residential and nonresidential construction industries, are also expected to pick up, supporting renewed revenue growth.

Is a Woodworking Business Worth Starting from Scratch or Is It Better to Buy a Franchise?

There is a lot of debate about whether it’s better to start a new woodworking business or acquire a woodworking business in the business-for-sale marketplace. Both ownership strategies have their benefits and drawbacks. For first-time business owners, it makes more sense to buy an existing woodworking business than to attempt to build one from the ground up.

Established woodworking businesses are already equipped with the resources and processes new business owners struggle to acquire. The key is to locate a business-for-sale that closely matches your ownership philosophy and professional objectives.

Franchising is not a recipe for certain success but does make everything a lot easier. Prior to starting a woodworking business, you may want to assess whether franchising might make it easy to get started.

Possible Challenges and Threats of Starting a Woodworking Business

The woodworking industry is exceptionally diverse, encompassing a wide range of entrepreneurs, skill sets and job sites. While some woodworkers specialize in architectural projects, the majority of woodworking entrepreneurs are hobbyists interested in translating their passion into a full-time career opportunity.

• Having the Wrong Attitude
• Having a hobby mentality
• Improving Business Skills
• Promoting business
• Understanding Your Responsibilities as a Business Owner
• Being afraid of getting expert help

Starting a Woodworking Business from Home – Legal Aspect

• Best legal entity for a woodworking business

You have two legal entities available when trying to open a woodworking business – sole proprietorship and the LLC. To understand the tax liabilities for each, it is important to understand the definition of the terms. A sole proprietor business structure is, as the name suggests, a company with a single owner.

This structure is used by three-quarters of all businesses. It keeps the owner in control of the company and has the simplest initial setup. A limited liability corporation, or LLC, is often formed for partnerships when the business has grown significantly. The advantage of an LLC is more options for growth and tax advantages.

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.

Catchy Business Name Ideas for your Woodworking Business

• Zen wood
• Geezer Woodworking
• Tentorium
• Artisan Woodwork
• Woodworks of Art
• Old World Woodcraft
• Retro Woodcrafters
• Fine Furniture Joinery
• Forest of Furniture
• Wooden Joinery Creations
• Edge of the Woods
• Bentley Antique
• New age carpentry
• Access timbers
• Felix planks

Choosing the Best Insurance Policy for Your Woodworking Business

Woodworking businesses have a lot of flexibility. You might do all of your work on-site at a customer’s house or place of business. You might make your creations in the comfort of your own woodworking shop. Regardless of how you choose to do business, there are several potential pitfalls that can cost your business extensive amounts of money. Prepare for potential problems and hazards by making sure you have the right types of small business insurance coverage.

• General liability insurance
• Business ownership policy
• commercial auto insurance
• Workers compensation insurance
• Property coverage

Protecting Intellectual Property in the Woodworking Business

Designing a product is hard work – the result of training, experience and the creative process. You also must be a smart businessperson exploring creative alternatives to keep your cost to market low.

After you take so much time bringing your idea to life, it is vexing beyond belief when you discover your arts/crafts design or promotional copy is stolen. In the arts and crafts world, imitation is not the most sincere form of flattery; it’s a potential drain on your gross income and your ability to support yourself. In general, using plans and building projects that are proven to sell is just the way for beginners to start.  The best woodworking plans we have found can be found by clicking here.

Is Professional Certification Needed to Start a Woodworking Business?

Education is helpful, but woodworkers are trained primarily on the job, where they learn skills from experienced workers. Beginning workers are given basic tasks, such as placing a piece of wood through a machine and grabbing the finished product at the end of the process.

As they gain experience, new woodworkers perform more complex tasks with less supervision. In about 1 year, they learn basic machine operations and job tasks. Becoming a skilled woodworker often takes 3 or more years. Skilled workers can read blueprints, set up machines, and plan work sequences.

Although not required, becoming certified can demonstrate competence and professionalism. It also may help a candidate advance in the profession. The Architectural Woodwork Institute (AWI) offers a national certificate program, which adds a level of credibility to the work of woodworkers. The Woodwork Career Alliance of North America also offers five progressive credentials. The bottom line is you have talent or you don’t, no matter what a diploma says. Nothing beats on-the-job training.

Legal Documents Needed to Start a Woodworking Business

If you’re in business, you need a business license. It’s not dependent on what you make or sell, or if you make a profit or not. Several licenses may be necessary, depending on where you sell and to whom. You also might need additional licenses if your craft is food-based.

Your first step is to find out if you need a business license. If you plan on operating a home-based business and live within city limits the best place to check is with your city business license office. Otherwise, check with your county business license office. If you need to get a business license, you also need to check for zoning issues. You will not be able to get a business license if your business address is not zoned for the type of business you want to run.

Normally, the county will require you to get your city license first if you need one. Bring it with you when you apply for your county business license. The good news is that most counties rubber stamp your county license application if you’ve already gone through the licensing process with your city.

Writing a Business Plan for Your Woodworking Business

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, and then start setting up the business plan.

You need to have a clear plan of how you want to run your woodwork business even before you get started; the plan has to contain every little detail of your business; include the estimated amount you need as capital you need to start this business. Tools you will need to perfect your trade. Where you will purchase wood in large quantities; how you intend to market your products; other aspects of woodwork you will incorporate into your business, and business goals you wish to achieve in the next 2 to 5 years.

A business plan is made to understand and anticipate what it’s going to be like to start a woodworking business. You cross many bridges before actually coming to them and that’s helpful. It’s helpful in deciding how you would like to start, what to expect, what you will be required to do and avoid expensive errors before they happen.

Most people who create a woodworking business plan claim that it helped them in getting successful. Therefore, we suggest an informal plan that you do not have to feel pressured about. Take your time. Business plans are not made in one day. Just keep adding to it at your own pace.

A Detailed Cost Analysis for Starting a Woodworking Business

It goes to say that when you start and run any business, there are going to be costs involved. It is true even for a home-based woodworking business. Even though you will be greatly able to reduce your costs by starting from home, woodworking is usually expensive. How much money you will need to invest will depend on how you handle the business startup.

Woodworking tools –                                                               $1,500

Wood and other raw materials –                                              $2,000

Business cards –                                                                        $200

A good camera (if you have plans of selling online too) – $300

A website –                                                                                  $500

A new computer –                                                                       $1000

Miscellaneous –                                                                         $1000

Total –                                                                                      $6, 500

Starting a woodworking business may sound small and common but just like any other business, it takes commitment and funds to start and strive. Startup cost for a home-based woodworking business which doesn’t include the incentive for leasing or any structural adjustment was what the above-detailed cost analysis covered. With the increase in size and scale comes the increase in start-up cost.

Financing Your Woodworking Business

Of all the decisions start-up business owners have to make, the decision of how to finance one’s business has to be the thorniest. Do you beg, borrow or steal the money? Who can afford to finance a business these days?

There’s no easy solution, especially in this economy. But the fact is hundreds of thousands of people have started craft businesses and galleries, sometimes on the flimsiest of budgets. With care and planning, you can too.

• Personal savings
• Credit card caveats
• Investors 
• Partnership 
• Crowdfunding
• Family and friends

Choosing a Suitable Location for your Woodworking Business

One of the most common reasons people shy away from woodworking is that they think they need a huge garage or workspace. But you can successfully set up a small hobbyist woodworking shop in any space, even in an apartment. A compact woodshop just takes a little planning and preparation.

First, as most eager but hesitant potential hobbyists realize, you have to be much more thoughtful about tool selection. A 14-inch band saw? In your dreams, in a small space, you’re going to have to rely on bench-top or handheld tools. (It is possible to forgo power tools entirely in favor of hand tools, but that’s a discussion better left for another time but it is possible).

Then there are material considerations, such as how to bring full-size sheets of plywood home to cut down to size (you don’t). And safety and cleanup are two more concerns: Proper ventilation and dust collection, a cinch in a larger shop, can be quite a challenge (and a potential health hazard). Nevertheless, you can set up a great woodshop in a small space.

However, getting a good location in the woodworking business is very critical to the success of your business but this can prove quite difficult because one of the challenges of starting a business successfully is getting a good business site. But in other to get a site that can make you a formidable opponent to your competitors, you need to consider the ideas listed below;

• Demographics and Psychographics
• Good road network
• Let your location boost your brand awareness

Starting a Woodworking Business – Technical and Manpower Requirements

Although the term “woodworker” may evoke the image of a craftsman who uses hand tools to build ornate furniture, the modern woodworking trade is highly technical and relies on advanced equipment and highly skilled operators. Workers use automated machinery, such as computerized numerical control (CNC) machines, to do much of the work with great accuracy.

Even specialized artisans generally use CNC machines and a variety of power tools in their work. Much of the work is done in a high-production assembly line facility, but there is also some work that is customized and does not lend itself to being made on an assembly line.