Thinking of starting a woodwork business, but can’t seem to figure it out? Well, you don’t need to worry because, in this post, we will discuss in detail how to start from scratch your dream business. So lets get started!
It’s a great feeling to turn your woodworking hobbies into a profitable business. Wood pieces are all over the place and this can be designed into a pleasant gift to friends and loved or for sell.
But, setting up a business is not as easy as it appears. It involves a well detailed process, starting from point A to point B. What I mean is, it requires in-depth planning and research, especially in business development and marketing. And this is where a business plan is vital.
The fact is, when setting up a business plan, one crucial step is a having well written and organized plan. You must have a clear road map of how you intend to run your woodworking business.
I understand, this could be your first time venturing into this exciting world of woodworking business, and you may not be too familiar with the business setup processes. You don’t have to stress yourself about this process, like i said earlier, I’ll assist you to transform your dream business into a reality.
Before we dive deeper into your business plan, you need to realize that there are two ways of making a business plan. The first step is the formal plan that is sourcing for capital, as well as support from credit organizations.
Whilst the second one is the informal ways. It will keep you directly focused on your goals as it serves as a beacon and source of inspiration. With this well detailed business plan, you can easily explain your ideas and plans to your friends and target customers.
However, we’ll be working on an informal business plan. At the end of the article, i will reveal a testimony on how a friend started his woodworking business with NO capital, a few shop tools and still became very successful.
So lets begin.
How to Create a Business Plan for your Woodwork Business:
You need to visualize and put every thought on a clean sheet of paper, make a list of things you need and want to do. Try as much to leave out the technical aspect of your business plan at this point. Just list out basic things like what motivated you and why are you doing these things.
What type of wooden projects do you need to create that are marketable? Make a detailed description of the wooden products and where you can get inspirations. Also identify the tools you intend to use to accomplish this task, the estimated time it will take to finish and total capital budget.
Discover the ideal market for your woodcraft. Research and analyze the leads that will help your business in a short period of time. To dive even further, you can state the selling price.
Funding or Sponsorship:
Identify the overall cost required to start your wood working business. However, don’t focus too much on your marketing process. For example, if you are seeking for funds to maintain your business for three to six months. Be sure on the amount of money, you will need for that duration and write down the plans on how to come up with the money.
Related: Download 16,000 Woodworking Plans for Free
This aspect covers the money making phase of your business. That is why, it is important to have a well detailed and easy to implement business plan. Like, how and where will you trade your wooden products you have made.
Alternatively, this aspect can also be included in your Market research section. Although, it’s not that necessary, but ensure you address it.
Nevertheless you need to consider these questions:
- Are you trading from home?
- Where are your customers from?
- Are you selling to friends or family?
- Are you selling online?
What type of marketing strategy will you be using to promote your woodworking business? Do you have understanding or insight about your target market? Do you intend to utilize local means of advertisement such as flyers or newspapers? Or are you into online marketing?
Using all this marketing approach can help you spread your business to lots of people around the world.
In order to have a successful woodworking business, you need to adhere to some specific steps. Things like designing a business logo and signs, website development, a business stationary and most importantly choosing an attractive business name.
However, all these steps are under the product development section of the business plan. This aspect is very important, if you want your business to stand out and have a professional outlook.
Business plan are designed or developed to make you have bird eye view, on what it would look like, when you start your business. But creating one is not a 100% guarantee to success. It gives you first hand information on what to expect, that steps you need to take to prevent expensive mistakes and waste of funds.
Also quite a number of successful business venture have a well layed out business plan. One important take-away is your business plan should not be done in a haste. It would be wise to go through it more than once. This eliminates any issues you may encounter while running your business.
Discover how my friend Jim Morgan started his woodworking business with NO capital, a few shop tools, and a lot of nerve, in a small 10×20 foot space and grew it into a 1,400 space in the first few months while still remaining as a one-person business!
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