We keep encouraging all you talented folks to start a small woodworking business at home.
But we understand that it’s easier said than done. And that’s why we keep writing all these informative posts about how to do it. Well, there’s a before and after to the whole situation. Things you need to do before and ones you need to do after the business is on.
The single major hurdle before a lot of you is the money required to start this business. Any kind of business requires start up capital, a fully equipped woodshop.
Step 1 – Scale Your Business
When we say start small, we can go really small where you do not need anything beyond a few hand tools and a regular 12X12 kind of space.
You can make money at even this stage but know this, if this is the only way you are going to grow, progress is going to be slow.
What you need to do is start at a small scale, and when you see that what you are doing is turning a profit you need to scale it up. Get better tools, buy power tools, start using better materials, increase your sales price etc.
What I’m saying is, when you see what you’re doing is making money, arrange for money to invest, because your investment will pay itself off soon.
Ask your friends and family to invest in your business. Make a business plan and take it to your local bank for a small business loan. Or do what many people do. Systematically invest your own money. Do this gradually and by measuring ROI every step of the way.
Step 2 – Choose Right Projects
This is sequential to step one, but with a little difference. You choose simple and easy woodcrafts to make. Ones that do not require investment in expensive tools. Nor do they require a lot of wood and raw materials. There are plenty of examples of such projects to be found. We have written about a few of them here. Small and popular wood projects can be made in large numbers and sold with ease, for a high profit.
Once again remember to scale up things as soon as you can. As soon as you see things working and making a profit.
Step 3 – Don’t Invest In Space
Well, not just yet anyway. You can see a post that we have written here about setting up a woodshop. We mention everything like setting up a dust collection system, a ventilation system and the works. Well, as long as you use basic safety gear like glasses, gloves, helmets, and breathing mask, an elaborate setup of the woodshop can wait.
Just be very particular about not causing health hazards to yourself, your family and your neighbors. Start in any clutter free space with good lighting.
Step 4 – Save On Everything You Buy
We have written a long post about how to save money when buying anything related to a woodworking business including tools, wood, accessories and equipment. Here it is again in a nutshell.
To Save Money On Tools
- Buy refurbished.
- Buy online.
- Compare different makes and models.
- Join newsletters for online discounts and vouchers.
To Save On Wood
- Buy from a lumberyard.
- Establish a working relationship with local store.
- Order online and on phone.
- Use cheaper building techniques that save time but retain quality.
- Substitute expensive materials.
Step 5 – Save On Advertising.
This is where things start to get really interesting. All your hard work has paid off and you have created a great woodworking craft. Now it’s time to sell it and profit from it.
Effective marketing and advertising can see the demand for your product and services grow. But to begin with you can use some marketing methods that will not cost you anything. Well almost nothing. Here is the post you should read.