Woodworking

Woodworking is a fun hobby, but can also turn into a profitable part-time or full-time business.  If you plan to sell products you made in your woodshop, you will need to legally set up a business, and may need to charge sales tax, depending on your location.

While making things with wood can be a lot of fun, realize that running a business is not always fun or easy.  Many times business can take something enjoyable and relaxing and make it stressful and boring.  For this reason, it is best to start a woodworking business on the side, and see if it is for you, before quitting your job and trying to start a full-time business from scratch.

Often, the difficult aspect of selling woodworking products is that many customers don’t appreciate the time and skill it takes to create something out of wood.  You will possibly be competing with cheap foreign goods produced for pennies.  You will need to market your products as something more than just a dollar store item.  Using terms like “handcrafted”, “custom”, “locally-made”, “craftsman”, and other similar terms in your marketing materials will help separate your work from the mass-produced items.  Make sure you can create some quality wood products to sell.

There are basically two types of woodworking business models: Production and Custom.  A production shop can mass-produce multiple copies of a single item such as a bench, bowl, cabinet, etc.  Once you have a template or prototype made, you can continue to copy a particular item in an efficient way.  These products can still be of a high quality.

A custom shop will produce unique, one-of-a-kind items according to specifications of the customer.  Some examples of this may be a plaques and signs, a commissioned table or other furniture.  This type of shop may still do some small production runs, but is not set up to complete large quantities.

Most home-based woodworkers with a small shop will do custom work, or custom with some small scale production pieces.

As far as selling woodworking products is concerned, there are a few different markets you can appeal to including modern, rustic, americana, classic, etc.  Different woods (including old,rough-hewn wood), faux finishes, and accessories made from stainless steel or cast iron help differentiate these different styles.

For more on starting your woodworking business legally:  How To Start A Woodworking (or Carpentry) Business

Here are some tips on choosing a business name: Woodworking Business Name Ideas

You may also want to check out 11 Ways To Promote Your Woodworking Business for tips on attracting customers.

Below are a number of ways you can sell your woodworking products once you get your part-time or full-time business started:

Set Up Your Own Shop

This can be as simple as setting up a small workshop and store in your garage or even in a section of your shop.  Be aware that depending on where you are located, you may be subject to zoning laws regarding commercial space.

Craft Fairs

Craft fairs are full of all different types of hand-made items and may be the right source for you to sell your products.

Flea Markets

Flea markets often include hand-made items along with all sorts of other odds and ends.

Consignment Shops

Some consignment shops are geared toward hand-made products, and woodworking products are often a good fit.

Ebay

Ebay can expose your products to a worldwide market, or you can limit sales to just your own country.  You can choose to sell via auction, or you can set your own price.

Etsy

Etsy is the largest online marketplace for handmade goods.  Many woodworkers sell on here,  and there will be competition in certain types of wood-related goods.  You should do well if you have a specialty wood product, as long as it is not in an obscure niche.

Craigslist

Craigslist is for local sales.  Customers will often look for furniture, so tables, benches, and other custom pieces may do well.

Your Own Website

A website is a good way to showcase your work.  Unless you market your website effectively, no one will know it is there.  A basic website is not difficult to set up.  You can get a FREE domain with web hosting purchase and check for website name availability here.

Christmas/Seasonal Shop

You could set up a small store in your home around certain holidays.  Customers are looking for decorations for their own homes as wells as gifts for others.  Pre-Christmas (November) is a good time to have a sale.  Wood-related ornaments, decorations, and gifts are popular items that may do well at this type of sale.

As it is with many woodworkers trying to earn a living with a woodworking business, the “fun” part of woodworking is actually working with wood in the shop, while the difficult part is running the business– the paperwork, attracting customers, and other behind-the-scenes stuff.  Getting a woodworking business off the ground can be a slow process.  You will need to market your business effectively if you want to be successful, whether you think it is fun or not.  You need to also make sure you have some great woodworking products to sell.

Marketing can be very expensive.  The last thing you want to do is to waste your time and money using poor marketing techniques in order to get new customers.  There are a number of effect marketing tips and tricks that are low-cost or free, and can help bring in more clients.  Check here for tips on ways to sell your woodworking: How To Make Money Woodworking

Before you pay an arm and a leg to buy a massive billboard or radio ad to promote your woodshop, check out these free or low cost marketing ideas that can help you get more customers:

A Great Website

An attractive website doesn’t have to cost a lot of money.  With some basic computer skills, you can even set up your own website for just the cost of hosting fees. There are even some pretty nice templates that can be used, so you only need to insert text and images.  Your website doesn’t.  Keep it simple.  A home page, an about page, a gallery featuring some of your best work, and a contact page is all you really need.  Your website should be clean and uncluttered for maximum impact on potential customers.   If you want to have more customers visit your website, you will need to have the website set up properly in order to rank high in your local search engine results.  You can get a FREE domain with web hosting purchase and check for website name availability here.

A Catchy Tagline or Logo

A creative tagline or logo associated with your woodworking business name can help personalize your business and attract customers.  You will want something easy to remember and spell. Find out more about choosing a woodworking business name here.

Free Online Listings

There are many local and nationally-based websites (such as Craigslist) that offer free business listings.  Make sure you advertise your business on as many local listings as possible.

Charity Giveaway

Charity auctions are a great way to get positive exposure for your woodworking business while helping a good cause.  Offering one of your products from your wood shop up for auction is a great low-cost (your time and materials) way to advertise.

Prize Drawings

This is a great opportunity that you could offer at your local county fair or community day, or craft fair.  Have people sign up for the prize with their emails.  You could offer one of your products, or a gift certificate to the winner.  You could also choose to offer all contestants a consolation prize such as 10% off a purchase.  You can then use the emails to possibly offer additional promotions later on.

Community Sponsoring

Help sponsor a local sports team, or advertise at a community event such as a charity walk.  Sponsoring costs can add up quickly, so weigh your options before verbally committing.  Having your business name fully or partially featured on a shirt or banner can help bring exposure to your business, while also benefiting your community.  Depending on what type of woodworking you do, you could offer one of your pieces as a prize- such as a wooden trophy, plaque, or engraving.

Social Media

If you are just starting out, it is helpful to ask friends and family for help to promote your business.  Become active on as many social media platforms as you can handle including Facebook, Twitter, Pinterest, and Instagram.

Craft Fairs

Craft fairs can often be long and frustrating, especially depending on where they are located.  They can also be lucrative, and a great way to promote your wood products.  Local events such as community days often have lower cost vendor tables.

Connect with other businesses.

Become friends with other small business owners in your community.  Use and recommend their products and services.  Get to know other vendors at craft fairs you may participate in. These fellow business owners will be happy to get a recommendation, and will hopefully do the same for you.

Maintain a Blog

A blog is a great way to connect with current and potential clients.  You can showcase your woodworking products while letting others get to know you.

Build an email list

If your past customers and potential clients are willing, you can use their email address to send promotions and to tell about new products.  If you enjoy writing, you may consider creating an email newsletter.  You could include woodworking tips, stories, or include articles from your blog, if you have one.

How to Start a Woodworking Business In Texas

Here is some information on how to legally register and start a woodworking business in the state of Texas.  A woodworking business could include woodturning, woodcarving, woodburning, wood pallet projects, chainsaw carvings, furniture making, wood crafts, and more. Make sure you do your own thorough research, as laws change regularly.  Here are some steps you may have to take (not necessarily in order) to start legally making money in your wood shop, along with links to more information.
Here is a website that will help if you want to start a business in Texas: Start a Business in Texas

1. Register your woodworking business name.

Find out more about registering a fictitious name here: http://www.sos.state.tx.us/corp/forms_boc.shtml

For more information on choosing a name for your wood shop:  How To Choose A Business Name and Woodworking Business Name Ideas

2. Select your business structure.

Sole-proprietor, LLC, Partnership, Corporation, etc.  Find out more here: http://www.sos.state.tx.us/corp/businessstructure.shtml

3.  Register your woodworking business.

You can register your woodworking business with the state of Texas here: http://www.sos.state.tx.us/corp/forms_boc.shtml

4. Open a Business Checking Account.

You will need to open a separate bank account for your woodworking business with your new business name.

5. Taxes.

While you can certainly file your own taxes, an accountant may be helpful in figuring out deductions and other tax laws. More information about taxes here: http://www.window.state.tx.us/taxes/ and http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Starting-a-Business .

6.  Liability Insurance.

You may not want or need liabilty insurance if you are doing your work in your own woodshop.  If you will be doing any work on location, you should consider liabilility insurance.  Find an insurance agent that offers liability insurance.  You may want to shop around, as prices and options can vary.  More on liability insurance here: Liability Insurance Options

7. Worker’s Compensation.

You don’t need Worker’s Compensation unless you have employees.

8. Get Health Insurance.  

Since you will be self-employed, you will need your own health insurance.  If you want to have employees, you will need a plan that will include their health needs also.

9. Register as a Contractor

Check with your local government to see if you need to register as a contractor.

10. City License.

You may be required to obtain a license to operate your woodworking business in a particular locale, whether you are a resident, or not.