Starting a Woodworking Business – Profitable Business Plan

If you are confused between two or several business niches, choosing one business could be a hassle. But if you really want to start something that is profitable and has consistent client demand, you need to get into a venture of manufacturing products or providing needful services in their daily routine. Then, everyone, including the rich class, the middle class, and groups of lower incomes, can buy it without any financial difficulties. 

One such business is woodworking. Of course, you will need enough funding, technical knowledge, and an urge to learn and upgrade your products as per client preferences. But we are sure; once you get the hang of it, your revenue figures will be glowing proudly. 

Each business is different from the other. Therefore, you cannot expect one business plan to fit into all business ideas and ventures. Hence, be open to customising the business plan template even if we have tried our best to furnish you with the same. Apart from crafting an ideal business plan, it is essential to consult experts in particular fields. You never know how someone’s wisdom can affect your organizational style and products. 

Let us get started with the template but let us first discuss the woodworking business overview. 

Woodworking Business Overview 

Woodworking business involves making wooden articles and furniture such as cabinets, carving, woodturning, and so on. This industry has undergone rapid growth even if you can find big furniture chains such as Ikea, leading the furniture industry. This is because people prefer wood and stick to it as a classic furniture style. As disposable income and confidence of customers in woodworking products increases, you can find a surging demand for these industry services. 

As per the latest statistics, there are more than 190 woodworking companies in the United States, and the woodworking industry has a remarkable growth of $827 million per year. You can witness a growth rate of 4.8 percent, and it increases every year, no doubt. 

You can start a woodworking company and determine its size depending upon the level of commitment you want to show in this business. For instance, you can cater to a specific number of clients in the United States, or you can even export items to other countries. 

Executive Summary 

This section consists of the name of the corporation (which needs to be authentic and unique), location (a city is preferable), and the types of products and services your business has to offer. In addition, mention other essential aspects of your business such as well-positioning, why your business stands out from others, your business values and ethics and standards, customer service practices, and what are your promises towards your customers. 

The reason why people will buy woodwork from you is that they want something unique in the items. They don’t prefer mediocre furniture in their houses but want something out-of-the-box and trendy. Hence, ensure that you mention all these things about your woodwork furniture in the executive summary section of your business plan. It should be the first thing that the investors or your partners will check out for.  

The last part of this section should include information about the owners, their experience and credibility, and why they are into this business. 

Products and Services 

  1. All wood-related products are created and supplied by this business venture: 
  2. Artworks, carving, and other architectural woodwork. 
  3. Wooden furniture, components, and accessories. 
  4. Wooden bass guitars and other electric bases. 
  5. Household wooden furniture having or not having an artistic style – for example, TV stands, coffee tables, beds, chairs, dining tables, etc. 
  6. Other products not mentioned in this list but are chosen by customers. 

The Mission of woodworking business – “To build a world-class and top-notch woodworking business that manufactures and sells wooden products and furniture items with artistic styles and patterns. The company will supply these items to people living in the United States and other parts of the world as well.” 

The Vision of woodworking business –” To become the reputable and leading brand in the woodworking business in the country as well as in the world.” 

Business Framework – Job Positions 

If you set up the right framework containing appropriate positions, you have better prospects. Your team will be trained, dedicated, and strong enough to fulfil the targets you have set in the beginning. Following are the staff details you need to note: 

  1. Owner of the corporation – He will also be the Chief Executive Officer, and he is the responsible person to monitor and take care of all business aspects right from tapping the right clients to achieving sales goals. 
  2. Manager – He manages the overall workshop activities, right from inventory management and distributing the manufactured wooden items. 
  3. HR Manager – You will need his assistance to recruit and select manual and qualified staff for your organization. Moreover, he will also manage the administrative activities, making your business more organized. 
  4. Carpenters – They are skilled, certified, and committed towards carpentry work. Since the primary aspect of your business depends on their skills and knowledge, you have to hire the right persons for these jobs. 
  5. Front Desk Executive – He is the image of the organization and deals with the clients, and answers their queries. 

SWOT Evaluation Tool 

  • Strengths – Highly trained and committed carpenters, versatile and durable products, uniquely crafted woodwork, and well-positioning of the woodwork showroom are the strengths you should boast about your business. 
  • Weaknesses – Lack of financial capacity to buy raw materials or hire skilled staff, location of potential clients are the lowlights you need to work on rigorously. 
  • Opportunities – Uniquely crafted woodwork, more demand for artistic woodwork by customers, various opportunities to sell the products – all these need to be counted. 
  • Threats – Intense rivalry, new furniture businesses coming up, the shift of customer preferences are the threats you need to be ready to deal with. 

This SWOT analysis tells a lot about the existing situation of your business. It would help if you accepted all of these pointers and frame relevant strategies to overcome the weaknesses and face threats. 

Market Analysis 

Who will be the target audience if people prefer to buy plastic or other material furniture? Don’t worry; you are still in demand as the following prospective buyers will always look for your products and services. 

  1. Schools. 
  2. Corporate, government, and religious organizations looking for artistry and authentic woodwork at their places. 
  3. Households where families love their houses decorated with unique furniture and woodwork items. 
  4. Carpentry contractors.
  5. Construction corporations – those who build residential complexes and non-residential buildings. 

Sales, marketing, promotion, advertising plans 

It requires innovative effort and smart work to advertise woodworking company services. For instance, you need to focus on the target audience and not on the general group of customers. Those who are interested in your products should be on your mind, and not those who may or may not be interested in woodwork. Hence, be focused when you do all the marketing plans. 

  1. Do a grand opening of your woodwork showroom and invite the target audience and known acquaintances from your neighborhood. If they are not able to attend the grand opening, invite them for a tour of your showroom at a time convenient for them. 
  2. Distribute flyers in the surrounding areas as people should know that there is an exquisite woodwork showroom. 
  3. Billboards and ad banners need not be neglected as they have been a popular source of advertising for ages and are still effective in the digital age. 
  4. To reach a wider audience, an online medium is the best. Place ads using Google AdSense and Facebook, and let the world know that you are into business. Social media is a great tool as you post exclusive pictures of your woodwork and showroom on the Instagram page. 
  5. Newspapers, TV, and radio seem to be old but not to be ignored. 
  6. An official website is a must, and you should know to master SEO to attract a relevant audience to the public. 

Sales Forecast 

To begin with the sales figures, it is necessary to be ambitious and not unrealistic. $400,000 is the expected sales revenue in the first, provided that you have a showroom at a prominent place in a city like New Jersey. You can double this sales figure each year and note that there is no competitor in the area. 

Pricing 

We know artistic woodwork is not a joke and requires manual and skilled efforts. And more business giants coming into this business, it could be hard to break even. 

Hence, we suggest setting competitive prices that help you achieve the set goals and lets you compete with your rivals. However, while setting prices, don’t compromise on the quality as your customers will keep it as a priority while purchasing from your showroom. 

Financial Expense Predictions 

Since we insist on opening a grand showroom that displays some of your best woodworking products, the costs of starting a venture will be around $100,000. Not to mention the first month’s salaries of your staff and the online marketing setup that you need to initiate from your end. 

You can further expand the business by spreading your work to other countries. 

This woodworking business plan is customizable, and you can alter some of the content as per your preferences.