You may be one of those people that have started crafting wood as a hobby, only to realize that there may be potential to turn it into a business. Many people have successfully managed to turn the art of crafting wood into a business. The question has often been asked Is woodworking a profitable business?
Woodworking is indeed a profitable business if you are skilled, have unique creations, and find a market for the products. However, it is important to understand that, as with any business, it does take time for a company to gain momentum in the industry.
It is important to note that there is a difference between crafting wood as a hobby instead of generating an income off this craft. Join me to give you a deeper insight into what steps you would need to take to ensure that your woodworking generates a profitable revenue stream.
Steps To Turn Woodworking Into A Profitable Business
Starting a business has a certain element of risk and often no guarantee that this business will become a profitable one. If you look at the woodworking industry in the United States alone, the industry was valued at $258.5 billion in 2018 and is forecast to reach $291.3 billion by 2024.
Just by looking at the above stats, it is proof enough that woodworking is a lucrative industry. You can be highly skilled in woodworking, but that alone will not determine if it will be profitable as a business. Below are some of the steps that can point you in the right direction;
1. Establish A Company Name And Website That Will Work For You
Choosing the correct name for your company is by far one of the most important decisions you will make in creating brand awareness. If you are not familiar with website creation, invest in enlisting the help of someone that will help manage this.
The web designer will offer more insight on the use of search engines that will help so that your company name appears first when clients are searching for wood creations.
If you manage to establish and maintain professionalism from the outset, you will soon become a leader in the industry.
2. Create A Business Plan
The first step to any profitable business is to draw up a business plan. If you plan to take out a business loan, most financial institutions often require this. You can invest in engaging the services of a professional to help draw up the plan, or you can obtain a template online and follow the necessary steps.
Although I did not take out a business loan, drawing out a business plan was valuable. It allowed me to look at my goals on paper to refer back to them. It also included my growth plan, which allowed me to delve deeper into possible marketing strategies for achieving profit.
It is important to note that a business plan has to be revisited as the economy and demand of the market change so that you can re-look at new strategies to maintain profitability.
3. Focus On Developing Your Woodworking Skills
It would help if you were continually willing to learn new woodworking techniques. You will soon find that you will become a sort after business within the industry. You can develop these skills by;
Reading Woodworking Books
Although investing in woodworking books can often be an expensive exercise, the information you can gain from them in developing your skills is invaluable. Look at it as an investment in your business and training other future staff. Many woodworking books are available on loan from libraries.
Watching Woodworking Videos And Blogs
If you want to develop your skills, there is no better way than to do that by watching a video and then learning by trial and error. I remember always using cheaper pieces of wood to practice with. If I made any errors, I was always mindful of going back and correcting them, which helped me develop a particular skill in that area.
As well as create a further opportunity to sell these ‘practice products”. As an additional source of income, you can also make a woodworking video once you have mastered this skill.
Take Up Woodworking Classes
You will find that there are often woodworking groups that you can join that offer online classes and share woodworking tips. Once you gain enough knowledge, you can also offer woodworking classes as a form of income.
4. Marketing Your Woodworking Business
Marketing is the lifeline of any business. Often businesses fail because they become complacent in this one area. It is extremely difficult to gain momentum, especially as a start-up business. Small companies are often faced with the challenge of not having a marketing budget.
Start by marketing your product to friends and families. Sell your woodwork online to create brand awareness.
5. Know Your Competitors
Knowing who your competitors are can help give you a marketing edge. You need to understand that it is almost impossible to compete with a big company as a small business. It can be frustrating if you start to compare your small business to that of a larger corporation; with years of experience, you will never be able to out-compete them.
So instead of seeing it as a competition, see it as a learning strategy. You will often find that if your woodworking craft is good, you can even approach these companies to register on their database as an outsourcing company. Larger companies often focus on large orders, so they would often find it easier to outsource to smaller companies if they get a walk-in client.
6. Never Compromise Quality And Service
If you want your woodworking business to be profitable, never compromise standards and service. You will find that many people will be happy to deal with a small business because of the personalized service that a smaller company offers. If you can master this, your woodworking business is well on its way to being profitable.
7. Keep Up To Date With Changing Trends
It is important to ensure that the woodwork that you create is in line with changing trends. Keep up to date with constantly evolving trends within the industry so that you can reach a wider market.
Focus on the individual needs of your clients. Remember, not all clients are the same, and not all clients have the same taste. Try to find your niche market and focus on that.
8. Always Look At Cost Saving
Always look at more cost-effective ways of doing things by constantly checking on what promotions suppliers are offering and negotiating with suppliers for further discounts.
Look at monthly bank charges and check which banks offer better interest rates. Remember, every bit of saving helps put more funds back into your pocket and goes a long way in contributing to the business’s profitability.
Woodworking is a skill that you can convert from a hobby to a business. It is important to understand that being skilled in the craft of woodworking does not guarantee the company’s profitability.
If you combine your skills with the above steps and hard work and perseverance, you will soon be able to turn your woodworking craft into a profitable business.