new WW business

[Wes Ramsey]

I'm starting to sell enough pieces now as a hobby ww'er that I think it is time to setup a business and see what I can do with it. I hesitate to ask for tips and advice here, but I won't object to sage advice from some old hands. What I'm looking for is a good book, blog, site, etc I can start reading to see what I can learn about ww'ing as a business. I'm a solutions architect so I'm pretty good with project planning and estimating costs, and my wife runs her own business and is great with social media marketing so I have a good resource there, but I think I'm still at the stage where I don't yet know what I don't know. Where do/did y'all look for info about how to get your business off the ground?

[Jim Becker]

There is a lengthly thread in OT that Dennis Peacock started a week or three ago that has content that will be helpful to you.

[Matt Day]

And a few hundred others over the years. I say this every time this comes up, search for old threads

[John Sincerbeaux]

What you produce and your target market will determine a lot of what you need to get started.

[Richard Coers]

Don't quit you day job until you have a minimum of 6 months of work on back order, you have 1 year of cash in the bank, and you have all the machinery you will need paid for. You won't need advice on running a woodworking business. You're either good at woodworking or you aren't. It's running any business that you need to know how to do. Marketing, calculating overhead, profit and loss, scheduling, and writing a business plan. Are you charging enough now that you could live on it and pay for shop space rental? Are you part of the underground economy? Almost anyone can survive in a garage when they don't carry insurance and don't meet local codes. But when you need a million dollars of liability insurance, can meet fire codes, and can get licensed if necessary, it gets much tougher. Many hobbyists charge like they are buying it. You have to charge to make a living. Most commercial shops have shop rates running from $65 to $150 per hour. Depends quite a bit on location and what it costs per square foot to rent shop space. Are you fast enough and good at meeting deadlines? I worked part-time in my basement for 15 years before going full time pro. It was when I was getting work from interior designer that I knew I had what it took. What I didn't plan on was how hard I would be on myself. After years and years of 80 hour weeks, I closed the doors after 8 years. (As my cousin always said about her professional woodworking husband, "He only works half days at woodworking, that's 12 hours!) I got the opportunity to go to work at Woodworker's Journal Magazine as project builder and designer. 40 hour weeks and benefits is a rare woodworking job! Good luck!

[Chris Parks]

As someone who has started a few businesses all non woodworking planning is the key. As a rule I reckon six months of research and planning is what I allow and one I see everyday is still going after 30 years.

[Dave Sabo]

Richard summed it up pretty well, but I'll add:

Running a manufacturing concern is a bit different than a service type business like you're currently in. A lot more capital is needed to get it off the ground and sustain it.

How are you with hiring and firing people ? And, dealing with them disappointing you ? You're not going to scale a manuf. biz without workers, and I can say with confidence a solo shop is going to have a hard time generating a professional type salary you're probably used to. If you're not adept with personnel, you'll have to hire someone, which means capital. And you'll still have to hire the search firm or personnel guru.

Do you have an accountant that specializes in small businesses ?

How about an attorney (or firm preferably) that is well versed in contract and labor law ?

What are you making ? (doesn't really matter) .

What makes it so special and differentiates itself from all the other buggy whips, twinkies, or computers already in the market?

I'll assume you're not starting your working career at this point so, you really need to ask yourself why you're doing this. Because you have fun making wood widgets and think: I'd like to have fun at work ; is prob. not a recipe for success. You really should approach this as a business first and foremost. Dispassionately. If you have fun , that's a bonus. But, I'm making a lot of assumptions about what your goals are based on reading between the lines.

[Perry Babineaux]

As someone who has started a few businesses all non woodworking planning is the key. As a rule I reckon six months of research and planning is what I allow and one I see everyday is still going after 30 years.

Aside from checking into old threads this is sage advice. Plan for everything, and never be afraid to deviate from the plan if it is not working.

[Chris Parks]

It is a surprising fact that men go through a period in their lives, usually from mid to late 30's where a lot think about starting a business or at least having a huge look at their working life and a lot of them want to work for themselves. Some make the change work and a lot fail, I made it work fortunately then decided a few years down the track it wasn't worth the bother and sold my first one. Years later I did it better in that I refused to employ and worked just enough to be happy with my earnings. I now have a golden rule, never employ anyone and never go into partnership with anyone.

[Wes Ramsey]

Yeah, I knew this was the right place to ask

My shop is pretty well equipped, but I’m investing some this year in lighting and organization. I (my father-in-law actually) have a sawmill and regular sources for wood and a place to dry it. I’ve made a few pieces of furniture - took too long but they were nice and I get better each time. I have 3 pieces on order right now and am using this as a test of my project management and estimation skills as I priced them at what I believe I need to make so I can pay myself enough. My larger passion is turning so I plan to focus there, but I can make anything between a salad bowl and a bedroom suite. My niche is making custom pieces that have a personal touch. I won’t go into a lot of detail, but I want my customers to have a deeply nostalgic connection with the pieces they order.

I’ve thought about the mid-life thing. I know it is real and I can’t dismiss it completely, but I’ve been working in this direction for several years now. I may never be financially secure again, but with my wife’s successful business I don’t have to completely or immediately replace my current income. But I will miss those corporate benefits...

I’ve never had employees, but I’m not opposed to or scared of the prospect.

Anyway, I greatly appreciate the input and will accept all I can get. Thanks guys!

[Matt Day]

I’ve made a few pieces of furniture - took too long but they were nice and I get better each time

If I were buying furniture, ready to drop a few grand on a dining room table, there’s no way I’d get it from a guy who has made “a few pieces”.

Before you even consider the basics of running a business, what’s your level of understanding the basics of woodworking? Wood movement? Joinery? Finishing? How do you design your furniture?

Also, strictly from a business standpoint, what hourly rate do you plan to charge? In my opinion, anything under $60/hr is not good business practice. Some will say that number is $100/hr. Either way, you have to value yourself.

On your next project, make an estimate of how much you would charge for the piece. Then keep an honest running total on how long the project takes. For everything: design, emails/calls to clients, material pickup, milling, joinery, sanding, finishing, delivery. Then figure out what your hourly rate is.

I don’t like being so negative but I also don’t want to encourage you to make a life changing decision that goes bad. Somebody said in one of the many of these threads that if you have to ask you’re not ready.

You’re looking for information, so here’s a site I found helpful.
http://www.solowoodworker.com

[Joe Hendershott]

If I were buying furniture, ready to drop a few grand on a dining room table, there’s no way I’d get it from a guy who has made “a few pieces”.

This might be true for many, but certainly not all customers. I've seen many, many, many manufacturers (which would include 1 man shops or large companies) That have made hundreds, or more, of something I would never consider buying at any price. Also have seen items from brand new 'shops' I would easily purchase. Quality can be seen right away. This would also depend on the intended purpose, whether it's a functional piece or merely decorative.

[Tom Bender]

An unfortunate fact about business is similar to building a house. Outsource the rough-in and spend your energy on the other 90% of the job.

[andy bessette]

...I (my father-in-law actually) have a sawmill and regular sources for wood and a place to dry it. I’ve made a few pieces of furniture - took too long but they were nice and I get better each time. I have 3 pieces on order right now and am using this as a test of my project management and estimation skills as I priced them at what I believe I need to make so I can pay myself enough. My larger passion is turning so I plan to focus there, but I can make anything between a salad bowl and a bedroom suite. My niche is making custom pieces that have a personal touch. I won’t go into a lot of detail, but I want my customers to have a deeply nostalgic connection with the pieces they order...

You definitely are not ready to quit your day job. But keep taking on paying work, in your spare time, and gain the experience you need to develop a comprehensive business plan.

[Mike Kees]

I have had my own business since 1995. My route was basically like most other successful businesses ,jump in the deep end and learn fast. Never quit learning. You have to have a foundation to work from,either business experience or woodworking expertise. Ignorance of exactly what you got yourself into only works if you are young and overcome it with hard work. Buy used tools and work hard. Always adjust,you have to be flexible and love a challenge. Good luck,Mike.