How To Find A Money Making Niche For A Woodworking Business

Published Categorized as Woodworking Business Tagged

It is probably the best to start out with a woodworking business in some sort of a niche. Woodworking is a very wide field. The products that you can choose to make are also varied and give you a lot of choice. In order to maintain better focus and to start with clarity and precision, it is better if you decide which category of products are you going to cater to.

How to decide on a woodworking business niche?

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 skill set and
  • You need to look at the market demand and supply.

For example, lets say you decide to work in a woodworking niche of making outdoor garden furniture. First of all you need to consider if you have the resources to make these products adequately. You should have or be ready to invest in the right tool and in setting up the right workshop.

Secondly, in order for the woodworking business for garden furniture to succeed there should be plenty of homes with gardens. Even the lifestyle of the people should support the necessity and demand for garden furniture.

You might have to do some market research and ask questions like, “What do the people in the community like doing on weekends?” Do they prefer going out or is their a strong culture of meeting friends and family for outdoor lunches and barbecues? How is the weather in your area? Does is support the demand for outdoor furniture or does it force people to stay indoors most of the time?

The importance of finding a niche for your woodworking business:

  1. It allows you to start small by giving you a very focussed approach.
  2. A niche allows you to have an edge over the competition.
  3. If you can cater to a market that hasn’t been tapped in to, you are already ahead.
  4. Niche allows you to have a more focussed approach. You do not waste time and money with products that might not work.
  5. You can target the marketing efforts more precisely and save money.
  6. You already know your target customers and who you should focus on.
  7. When you investigate a niche you make an informed decision about the woodworking business and know that kind of demand and supply you are looking at.

Before launching your own woodworking business you should get yourself straightforward answers to 4 questions. Without the certainty of those answers it is very hard to focus on your goals and to have specific aims for your woodworking business, irrespective of whether it is large scale or small scale.

The advantage of knowing your target customer

You may be a multi-talented woodworker who can build anything from a wooden peg to an entire barn. But it’s really helpful to decide what to start with. You can focus your efforts, not spread yourself out too thin, have enough time to make good quality items and please your chosen customer. You will have time to bifurcate the business later.

Remember, the most expensive woodworking items are not necessarily the best selling ones.

There are many segments that you start with small crafts, furniture, outdoor projects, showpieces, wooden toys etc. These are often good choices for startups beaches of their low investment cost.

And remember, creating a niche for yourself is not always about doing different things but also about doing things differently.

Remember to keep updating your niche if required. Ask yourself the following questions every 6 months:

  1. Who are your target clients?
  2. Do you refuse any amount of business because it falls outside the niche?
  3. Does your niche constantly evolve to serve the customers better?
  4. Does your niche offer prospective customers what they want?
  5. Can you predict the lifecycle of your niche?
  6. Can your niche expand it into a variety of products in the future that would also earn profit for business?
  7. Is the niche closely associated with your passion, interest and helps you focus energy on a business?
  8. Does your niche feel comfortable and natural to your skills and experience?
  9. How does pursuing a niche contributes to achieving the goals you have set for your business?

Adapting a woodworking niche can mean more business for you and more success.

We'd love to hear from you.. Queries are welcome.