Woodworking is a noble profession and a really fun hobby. It’s a perfect combination of being creative and also being good with your hands. In the USA, woodwork has always been highly valued. This is because people appreciate the effort that goes into crafting something beautiful out of a piece of wood. Since it’s highly valued, there are plenty of people who are willing to pay a decent amount of money for wood products. This makes woodworking a really lucrative business venture as well.
If you’re someone who has been pursuing woodworking as a hobby and you’ve gotten really good at it, you should consider starting your own woodworking business. An entrepreneurial adventure in the wood industry can help you make money like crazy if you know what you’re doing. We’re going to take a brief look at the dynamics of this market. More importantly, we’re going to take a look at how to set up a woodworking shop that is capable of supporting your business.
Is Woodworking Profitable?
The woodworking industry in the USA consists of around 30 large brands. These large brands only cater to a small portion of the overall market. The rest is divided amongst various small businesses that are constantly competing with one another. A small business is capable of making a lot of money in woodworking. This is because smaller businesses are able to cater to their customers in a more personalized manner. And in the woodworking industry, the ability to personalize and customize products can be profitable.
Woodworking also becomes more profitable as your woodworking skills increase. The material cost of your woodworking projects remains more or less the same. But as you gain experience, your ability to make something valuable out of the same material grows. Once your business is established, you can make a very decent living from your woodworking start-up.
What Does It Take to Start Your Woodworking Venture?
Starting a business is never easy. It’s a gradual process that requires planning, resources, and experience. We wouldn’t recommend that you set up a woodworking shop if you don’t have any experience in this field. Most people who start their own business have around 2 to 3 years of experience in woodworking. This experience can come from pursuing this as a hobby or from working in someone else’s shop.
It goes without saying that you need to be good at working wood in order to start your business. You also need to have resources. Your primary resource being capital. You cannot start a business is you don’t have access to money. You will also need time that you can invest in your business.
Last but not the least, you need a business plan. A business plan provides you with a framework about what you need to do in order to get your business up and running. It defines your business model, your strengths and weaknesses, and your plan of action. A good business plan can make all the difference in the world when it comes to bringing your business to life.
Setting Up Your Shop
Your woodworking shop will have two main sections that need to be worked on; the front-end and the back-end. The back-end is where the bulk of your investment will go.
Thanks to modern-day technology, you can setup a great front-end for your business without having to do much. Instead of getting a physical location that you will have to prepare, you can simply develop a website. A website is a low cost and practical solution. You can set up an e-commerce store where customers can come and buy your products from. Setting up a website is really easy; you just need to:
- Buy a domain for your website. Your domain should match your business name.
- Find a web host service provider and hire them.
- Setup your website and make it go live.
You can find plenty of in-depth guides on website development on the internet. It is also recommended to set up a business page on social media. This is a great way to market your business and also interact with your customers.
Your back-end will basically be your workshop. You need to put a lot of thought into setting up your workspace. The quality and functionality of your back-end will determine the capability of your business. The best way to set up your woodshop is by approaching it one step at a time.
Setting up Your Woodshop
Find a Place
The first step is to find someplace where you will be setting up your workshop. This place can be in your garage, or in a shed in your backyard. You can also consider renting out a dedicated workspace. However, that rent will increase your operational expense. The place that you select must be spacious, well-lit, and ventilated. All of these characteristics will help make your workspace safe and comfortable for you.
You should also keep your surrounding in mind as well. If you’re setting up in your garage, then you will need to be mindful of your neighbors. A woodworking shop can be noisy and messy. If your shop becomes a source of noise pollution, there’s a chance that you might get into trouble with your neighbors. You will have to invest a bit of money into sound dampening. You will also need to set up a dust collection system in order to manage your waste.
We would recommend that you start small. You don’t need an entire warehouse for your workshop in the beginning. A smaller workshop will be easier to manage and will cost less to setup. Once your business takes off and you start making money, you can always relocate to a better place.
Prepare Your Workshop
Once you have decided where you’re going to establish your business, you’ll need to prepare it before you can bring in your equipment. Start off by making a map of your workshop’s layout. Decide where are you going to place your workbench, your stationary power tools, and other large objects. After that, decide where will you place your storage cabinets. Your storage area will house your tools, unfinished woodworking projects, and your materials. A well-designed storage space will help keep your entire workshop organized.
You should also plan out your lighting and electrical layout during this phase. Your workshop should be well-lit in order to make it safe and functional. Your electrical layout should provide you with plenty of places where you can hook-up your tools. A pre-planned electrical layout will ensure that you don’t have any wires lying around on your workshop’s floor in the future. A workshop can get pretty hot at times, this is why proper ventilation is compulsory as well.
Your layout plan will provide you with a mental image of what will you be placing in your workshop. It will help you figure out what do you need to buy as well. You can share your layout with people who are into woodworking for insight. They can help you improve your layout further. You can look online for inspiration as well. WoodProfits has a great guide on setting up a woodshop specifically for business. The guide focuses on keeping your costs low while helping you set up a capable workshop. It’s a must-read for anyone who is planning on starting a woodworking venture.
Buying Equipment
Once your shop is cleared out and ready, you can begin populating it with equipment. Woodworking equipment can be divided into two categories; hand tools and power tools. Both types of tools are equally important for a woodworker.
Hand tools are traditional woodworking tools. There’s a huge variety of hand tools for you to choose from. Despite the fact that there’s no such thing as having too many tools, you should start with the basics. While having an inventory of tools is important, you also don’t want to overspend on tools in the beginning. Make a list of basic hand tools and then go shopping for them. You can buy these tools from a hardware store or buy them second hand and save money. There’s nothing wrong with buying second hand tools. But you will need a keen eye in order to make sure that the tool you buy isn’t damaged. Hand tools can become damaged if they aren’t used properly.
Power tools are the workhorses of woodworking. They allow us to cut, shape, and refine material with precision and efficiency. Some people like to think that power tools are a replacement for hand tools. This isn’t exactly true. Hand tools have their own value and power tools have their own functionality. Remember that one cannot replace the other. There’s a vast variety of power tools in the market. and while they are all useful, you cannot buy them all at once. When compared to hand tools, power tools tend to be more expensive. Just like with the hand tools, you should stick to the basics first. If you start buying advanced tools such as CNC machines right from the start, you’ll end up spending thousands of dollars on your tools alone.
Basic power tools consist of a table saw, a sanding pane, a jigsaw, and a circular saw. You can look for more tools if your budget allows it. And just like with hand tools, you can buy power tools second hand as well. Keep in mind that when you buy a second hand power tool, you might need to spend a bit of money on it for repairs and general maintenance.
Your basic equipment will also include miscellaneous items that you’ll need around your shop. You’ll need a bunch of measuring and marking tools. it’s a good idea to get tools that have metric and SAE markings on them. Apart from measuring equipment, you’ll need to buy safety gear as well. Safety goggles and a breathing mask are absolutely necessary. A pair of sturdy work gloves and steel toed boots are also recommended. Remember to never cut corners when you’re buying safety equipment. You should also invest in a fire extinguisher or two as well. You will also need to buy cleaning equipment and tools for general maintenance.
The list for workshop equipment can become really long. This is arguably the biggest cost center in your initial capital. You should try saving money here by getting second hand equipment wherever possible. And remember, buy basic equip before anything else. You can continue upgrading your tools as your business flourishes.
Storing Equipment
After going through the number of tools we just mentioned, you might be wondering how will you store all of that stuff. The answer to this question is smart storage. You must have a well-organized storage space if you plan on keeping track of all your tools. Since you’re a woodworker, you should try building your own storage spaces instead of buying them. You can save a lot of money this way and also get a customized storage solution. Here’s a list of what we think are essential storage furnishings:
- Tool chests are ideal for storing tools that you don’t use regularly. You can label your tool chests in order to keep track of what contains what.
- Pegboards are great to have. You can install these on various parts of your workshop’s walls. They let you store tools in an organized way and also make them easy to use. You can store your frequently used hand tools and power tools on these boards.
- Ceiling mounted hangers are another great storage solution. These are great for hanging saws and other hard to manage tools. you can use these hangers for wire management as well.
Apart from smart storage, you should also consider making your equipment portable. Attaching a wheelbase to your stationary tools can increase their functionality by a wide margin. Portable equipment will allow you to change the layout of your shop on the go. Instead of running between equipment, you can bring everything close to you. Proper equipment storage will help you maintain a safe and organized work environment. This will allow you to focus on your woodworking projects.
Getting Materials
Your tools and workspace won’t do much if you don’t have access to materials to work with. Buying materials isn’t a onetime thing, you will need to regularly restock your inventory. This is why it is important to find a reliable source for your materials. There are plenty of places selling wood and other woodworking materials. But they aren’t reliable. You need to find a store that has a stable supply of materials. Also, you shouldn’t rely on one supplier for your materials. Make sure to have at least 2 backup suppliers. In case your regular supplier isn’t able to meet your requirements, you can turn to your secondary option. The last thing you want is to run out of materials for your woodworking projects at the wrong time.
Once your business becomes operational, you’ll be able to start buying materials in bulk. Bulk buying has its own benefits, the biggest being that you can negotiate better prices with your suppliers.
What’s Next?
You’ve finally setup your woodshop. You’re now ready to begin your work and make money. So, where should you start from? The first step is going to be finding a customer. You can’t begin woodworking projects if you don’t have a buyer.
Bringing in customers requires marketing. You can market your newly established business in a number of ways. You can print business cards and brochures and distribute them. You can talk to your friends and family about your business and as them to spread the word. You can also market yourself over the internet. Make a social media account for your business. Facebook and Instagram are both great business tools. You can promote your products and services to a very huge audience at a very low cost.
In order to market yourself effectively, you will have to show people what you’re capable of. You can do this by making a few wood products for showing off. You can make something simple like picture frames and wooden toys. If this sounds too easy for you, you can work on more complex woodworking projects as well. Things such as picture frames are easy to sell well since they will have a larger demand.
Once your business model begins running, you can immerse yourself in your business. After you break even, you can start enjoying profiting from your business and gradually expand your setup.
Conclusion
Setting up a woodworking shop is a long and time-consuming process. There are a ton of things that you need to take into consideration. The best way to go about this wood project is by doing things step-by-step. You start off by planning your workspace’s layout. If you’re setting it up for business purposes, then you’ll need to formulate a business plan before that.
After you have made a plan of action, it’s time to execute that plan. You will begin setting up your workspace. Sourcing tools, equipment, and materials will take time and money. If you go about this part of the plan smartly, you will be able to save time and money. After sourcing everything and putting it all in place, you can bring your woodshop into working order. From here, you can start advertising your business and bringing in customers.
Being able to bring new customers and retaining them will determine how successful your business will become. The more value you offer to your customers, the more you’ll be able to charge them. And as work on woodworking projects, your woodworking skills will continue to improve with time. Eventually, you’ll be able to offer specialized services that you can charge a premium for.