Turning Your Woodworking Hobby Into A Home Based Woodworking Business!

TedsWoodworking Plans and Projects

Don’t let anyone tell you that going into business is an easy thing to do, there is an old saying that if it was easy to be in business that everyone would do it.
Now that has been said, let me tell you from personal experience (I have started three successful businesses of my own) that if you decide to take the plunge and start a woodworking business and are willing to do the hard work that the rewards will be well worth the effort.
One of the first things you need to do is develop a business plan, in layman’s terms, this is a road map on how to get from here to there. The business plan will allow you to organize your goals and a clear and concise manner. Your business plan will need to encompass a number of different issues.
First and foremost are your projected financial statements, which should include current balance sheet. This is also referred to as a profit and loss statement (P&L) or revenue statement. This is basically an accounting of sales, expenses and net profit for a given period of time. You will also require a cash flow statement, which is a measure of your financial health. It basically shows cash receipts minus cash payments over a given period of time. You will also need pro forma balance sheets and income statements for a minimum of three years, these statements include assumptions and hypothetical information built into the data.
With all this in hand, you will be better equipped to allocate resources. All of the above are absolutely necessary for any woodworking home business, especially if you are going to a financial institution for a loan.
The bank wants to see a plan for a number of reasons, but basically it shows them that you have taken the time to think things through, and by looking at the financial statements, they can see if the operation of your woodworking business is viable.
There are a few other things that should be included in your woodworking business plan. Remember, the more detailed the better. If you don’t have a location you will need a location plan, more than likely, though when starting a home-based woodworking business your location is already fixed.
You need to have a portion of your business plan that’s dedicated to risk management (insurance). Because of all the equipment we use in our shops woodworking is an inherently dangerous business. There is liability insurance, property insurance, work interruption insurance and if you have employees workman’s comp. Risk assessment is a very important part of any business large or small a mistake made here can cost you your business.
Your business plan should also have a portion dedicated to marketing. this can be done in a number of different ways. There are always the traditional methods such as advertising in woodworking magazines or in the newspaper, and these things still work. But in today’s environment, the best way is the Internet in order to accomplish this you will need a website and you will need to learn SEO (search engine optimization) so you will get noticed on the web. Search engine optimization is like anything else, it’s not overly difficult, but takes time to learn You can also contribute to blogs and forums to get the word out.
Never become stagnant, your woodworking business plan should be reviewed at a minimum of once a year to take into account changes that have happened in the overall economy or changes in your goals. However, I personally recommend a semi annual review of the business plan The closer you are to your business plan, the better the chance of mapping out success.
Remember the rewards always outweigh the work. So get out there and start your own woodworking business

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Thank you for reading the article above. Many important points you need to know.
Have you ever:
– Wanted to build something, because you cannot find it “retail”?
– Thought of making something custom for a specific need?
– Struggled to find detailed plans to build your dream project?

TedsWoodworking Plans and Projects