It might be challenging, but equally rewarding so to start up a small woodworking business from the comfort of your home. It might be even more so if your startup is a one-person business as most home based ventures tends to be.
Today’s economy is a shaky one. It has everyone all over the world working hard to have a roof over their heads, food in their stomachs and clothes to keep warm. To afford the luxuries of life, one has to work even harder. In such trying times, the worst thing that can happen is getting laid off from your job. The best thing that can happen is having an extra source of income – a practice that can keep everything afloat when your salaried job goes through the window.
But here is the thing, do not wait until the situation is dire to start something of your own. Start today and when the time comes, when you have to leave your formal workplace, the transition will be smooth. As a matter of fact, you just might leave before you are laid off or before your retirement.
The thought of having a your own home based business might have been a far-fetched idea several years ago but today it is, for lack of a better word, the ‘in-thing’. Many are turning their hobbies like simple woodworking projects into money making practices, which is great as they will never again have to work since they will be doing what they love. But where many go wrong is settling for small businesses. Sure they are small and easy to manage, but also, they trick you into a raw deal.
Professionals call it the big lie of small businesses. That said, if you are looking to start a home based business, do it right. Build a company that can grow into a multi-million dollar business in a couple of years. Here is how to do it; a guide to starting your very own home based wood working company. This article will give you a brief introduction to the steps involved.
It is said, failing to plan is planning to fail. And understandably so. Before you dive into this head first, before you dedicate your precious time, ideas and pour out your hard earned money into the business, you need to make a business plan.
Start with the law requirements. Different states have varying law requirements for home based business. Check with the local authorities and know just what you will need to have to form your company. If there are taxes to be paid for sales made, you will need to get the business a sales tax certificate. For this you will have to set up an account with the relevant state authorities.
Most budding entrepreneurs prefer an LLC to a sole proprietorship because of liabilities. However, you should know that an LLC will take a significantly large amount of money to set up since you will be needed to have a working and efficient book keeping system and consider several payment options. All of which use up money that could have be used to purchase materials for product creation.
In the planning, you also need to cover your marketing options. Determine your target market and know just how much they are prepared to spend on the product you have. Online platforms like Facebook and Instagram are probably the best and cheapest way to do this. If you deem it necessary, you could do magazines and newspapers as well.
A business plan would not be complete if you did not consider the financial aspect of the company. How much money do you need to raise to start? How much money do you have saved up? How much deficit do you have?
Truth be told, starting a company is not cheap. It has the potential to drain your bank account or scare you away if you do not have the funds required. But before you retreat, try getting funding from other avenues. There are some local business administrations that avail funding to new entrepreneurs who cannot afford to handle the financial load. Loans and grants are available left right and center. You just need to know where to look.
As you are doing this, the assumption is that you have at least tried and tested the product and identified a need for it. You don’t want to go through all this trouble to end up with products that cannot be sold.
The success of your wood working company will depend on the kinds of tools you get. Now there is a misconception that complex tools are the best to have. Well, sorry to burst your bubble but this is not entirely true. Simple tools can get the job done too, just as good.
There is no point of getting a complex tool that will inhibit your wood working skills. You will end up spending a whole lot of the fancy tools and churn out not so great products. Try simple second hand tools that are in great condition and two birds with one stone; save and have the ability to produce quality. Check out posting of these tools on Craigslist and other wood working forums.
One you have made and sold enough pieces and have a fair amount of following, it’s time to start producing pieces for art galleries, craft fairs and any other gathering where people are looking for wood works. You do not have to be a guru to show off the products. But you do need to put yourself out there for people to see and notice you.
After showing off, your product should be gaining some popularity. At this point, it is time to advertise aggressively on local magazines, newspapers and local store bulletins. You could even design flyers to hand out to neighbors, friends and colleagues. Have business cards to identify yourself with the products.
No doubt it takes a lot of time and thought to put together a home based woodworking company. Making enough pieces for sale, marketing and knowing just how much inventory you need to maintain can be daunting. But the good news is that it is doable and will have you succeeding if you do it right. There is nothing as reassuring and fulfilling than having a business to call your own. It fades away all the memories of headaches and difficult times you encountered.