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INTRODUCTION

If what you do outside work is your true love, then why not

consider making it your career too? After all, you probably want tolove what you do, especially if youre going to spend most of yourlife doing it

!ou can start your own home based business right now, workingright from your garage, and get a nice e"tra part#time income $ustby turning your passion into pro%ts

&owever, there is as much or more skill involved in being anentrepreneur as there is in learning your craft 'ypicallywoodworkers build their skills as hobbyists, students or helpersand then decide to use those skills to make a living &owever, theysoon discover that starting a business is more complicated thanthey(d imagined )ot only complicated, but downright scary as billspile up and work fails to materiali*e +hen this happens theentrepreneur is faced with two choices -o out of business or learnnew skills to make it possible to succeed in the business I wrote

this book to help those who are starting woodworking businessesor contemplating doing so +ith this de%nitive guide, you(lldiscover how to grow your business beyond the dining room tableand %nally .uit your day $ob

+oodworking is an area that encompasses everything fromhandmade clock cases to industrial prototypes, and itspractitioners range from operators of computer#controlledmachinery to the solitary carver working in the corner of his or her

basement /y focus in 0ro%table +oodworking is the small shopwith an owner#operator and few or no employees I believe,however, that the information oered here will be useful to largercompanies and hobbyists seeking to earn part#time income fromtheir work as well

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Note: If you do not have a woodworking plan archieve for yourwoodworking business, I highly recommend this huge archive below:

http33wwwwoodworker*$ournalcom314555#woodworking#plans#clubhtml

Pete L. HudsonWoodworker,Woodworking Business Owner,Writer

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http://www.woodworkerzjournal.com/14000-woodworking-plans-club.htmlhttp://www.woodworkerzjournal.com/14000-woodworking-plans-club.html


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1 CAN I TURN MY HOBBY INTO ABUSINESS?

+hether or not they can make a living as woodworkers is the.uestion many amateurs ask themselves at one point oranother Answering that .uestion and the others that follow isthe goal of this book 'he dream of making your living as acraftsperson is enticing, con$uring up images of being a skilled

artisan creating beautiful and useful things from wood, all thewhile earning a good living !ou may imagine a large shop%lled with professional tools or simply be interested in havinga special interest and making a little money on the side+hether you aspire to ownership of a growing business or $ustwant to develop a part#time income doing something you love,you(ll be facing the same decision#making process

'his book will guide you through the process of setting up andsuccessfully running a woodworking business /uch of what isdiscussed here represents the nuts#and#bolts, real#world skillof being a business owner I(ve found that these basicbusiness skills are often what stands between the successfuland the unsuccessful craftsperson :uccess in business ismeasured by several criteria, including pro%t, growth andpersonal satisfaction >ecause you cannot have growth andsatisfaction without at least a minimal pro%t, my emphasis is

on getting your woodworking business going and making itpro%table as soon as possible

In this chapter we (re going to look at dierent kinds ofwoodshops and answer some of the most common .uestions&ow much money can I make? &ow much mo ney will I need toget started? &ow hard will it be to succeed?

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1.1 THE TOP ) MISTA+ES !OOD!OR+ERSMA+E !HEN STARTING A BUSNESS

>efore launching your own woodworking business you need toask some basic .uestions and get some straightforwardanswers +ithout the certainty of those answers it is very hardto focus on your goals and to have speci%c aims for yourwoodworking business, irrespective of whether it is large scaleor small scale

'hese are all very valid .uestions that can easily be bypassed

with some initial planning and knowledge of how to avoid the'op 9 /istakes

1.1.1 M/ste 1 H3/n4 t5e !6on4 Att/tude

'his is the number 1 mistake, because the wrong attitude cankill your business before you even get started :uccess is Epercent attitude and percent aptitude If you don(t believe,in your heart, that you will succeed, guess what? !ou won(tM

>efore taking another step, learn the art of positive thinking/aster the NI canN attitude, because a positive attitude willopen the door to a successful business

1.1.2 M/ste 2 H3/n4 Ho778 Ment9/t8

Anyone can make money with their hobby, but you won(t makea good, comfortable living at it unless you change yourperspective and treat your business like a business !ou gointo business for one reason to pro%t If making money andbeing pro%table isn(t your business goal, then you(re not reallyin business


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1.1.$ M/ste $ Not P9nn/n4 :o6 Su;;ess

:imply stated )o planning O )o successM I see this as the

biggest problem with small businesses 7veryone forgets toplan for success and pro%tability before doing anything else+ithout a plan, how can you e"pect your business to provideyour income and make enough money to keep itself running?!ou must plan for success if you(re looking for consistent,ongoing income

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'his directly relates to /istake P6 in that planning how yourbusiness will operate s e.ually important to planning how tostart your business


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segment that you can cater for is institutions, where there.uirement will be dierent, more practical and utility based

1.1.% !5t /s 8ou6 n/;5e?If you take a look at those who deal with woodwork you will%nd that very few of them deal with many dierent varietiesof wood /ost woodworkers have a niche, either usinghardwood, tropical woods, softwood or laminates !ou have to%nd your niche and decide what kind of wood you willprimarily deal with 'his will inQuence the kind of workers youwill pick and the vendors which you will deal with for rawmaterial !ou have to pick the wood and options which you arecomfortable with, instead of starting out big

1.1.10 R> Mte6/9s nd Costs?

If you have made your choice of wood Reg rubber wood ormahoganyS you will have to deal with suppliers who canprovide you with a steady supply of wood 'he vendors who

provide raw material have to be reliable and trustworthybecause you cannot aord to turn away clients due to scarcityof wood supply 'herefore, you will need to network andsociali*e with as many vendors as possible and choosesomeone whose costs are more aordable than others It isnot a bad idea to take an e"pert with you to ensure that youare getting good .uality wood for your woodworkingbusiness

1.1.11 H/6/n4 S/99ed L7o6?

Although you can hire more skilled labor as you go along andget your clients, it is very important to start o with a coupleof highly skilled workers who are speciali*ed in working withthe wood of your choice !ou can even have them accompanyyou when you go out for your dealings with raw material

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vendors -etting the right kind of workers is very importantfor your woodworking business 'hey have to be committedand skilled because then you can attract clients based on the

artistic and diTcult work that your workers and business candeliver

1.1.12 !5t 6e 8ou6


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wants and how to %nd your market !ou also ha ve theopportunity to develop highly speciali*ed skills that commandhigher prices Dhoosing a specialty or working a vertical

market rather than in a broad one is an e"cellent strategy forstarting a business /any of the woodworkers I pro%le in thisbook started out as hobbyists or knowledgeable consumerswho recogni*ed a need and started their woodworkingbusiness to ful%ll that need

7ven the general#interest woodworker usually speciali*es insome aspect of woodworking based on a particular set of

skills Geneering, bending or laminating wood re.uiresdierent skills and tools from cabinetmaking or woodturning'hese hori*ontal#market woodshops still speciali*e and cantake advantage of speciali*ation to achieve success +e (ll belooking at e"amples of these kinds of businesses too

Fet(s start with a woodworking business whose products arethings with which most of us are familiar the crafts business

1.& CRA'TS BUSINESS

'he woodworking crafts business includes many kinds ofproducts and woodworkers 8ne craftsperson might makesmall ine"pensive gift items such as cutting boards orbirdhouses, while another may build and sell a line of

furniture Hrom a business perspective, the commondenominator is a product line that retails or wholesalesthrough outlets such as craft shows, arts festivals, gift shopsand craft galleries Dreating and building a product line forthese outlets is dierent from building custom furniture orcreating tine arts At the highest skill level and price range, thedierences between %ne furniture and craft work begin toblur Indeed, many craft galleries combine the functions of art

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gallery and retail outlet

/any craft woodworkers operate on a yearly or seasonal

schedule If they sell primarily through festivals and shows,they base their schedule on the deadlines and dates for thoseshows If they e"hibit and sell through established retailoutlets such as gift shops and craft galleries, they usuallyspend the entire year preparing for the Dhristmas buyingseason If they also market their wares in resort areas, thepeak tourist season will inQuence their deadlines >uyers areusually making their Dhristmas buying decisions in Hebruary or

/arch 'he seasonal nature of the craft woodworker(s marketis one of the reasons he or she must produce pieces in.uantity rather than making individual pieces based on anindividual buyer(s desires If you are selling E5U of your workin one month of the year, which is not uncommon, you(ll haveto produce a large .uantity of goods or inventory in order tobe prepared for the busy season

'here is an element of risk in the crafts business, particularlyat the beginning !ou may spend several months designingand building hundreds of items and then have the buyingpublic give your work the thumbs#down sign It is vital in thecrafts business to be responsive to what the market isinterested in, to stay aware of trends and to plan your productbased on the results of your in.uiries rather than on whatinterests you

Draft woodworking businesses can be small shops or factoriesIf at some point the scale becomes too large, the itemsproduced will no longer be considered handcrafted, and theproduct line will be geared to the mass market If this kind ofoperation is your goal, you(ll be spending more time withmanagement, manufacturing and sales than woodworking/assmarket production lines re.uire mass markets , and such

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'hese artist3 craftspeople may sell their work through some ofthe same outlets as the craft woodworkers we looked atearlierV however, they don (t do production work, and their

designs are characteri*ed by personal vision and creativity'heir reputations as %ne artists create their market 'heirmarketing, business calendar and day#to#day work life isdierent from that of the production craftsperson

1.* !OOD!OR+ERS BUILDING 'URNITURE

'he average person usually imagines that a woodworker is askilled person who works in a dusty shop building furniture,and with good reason Hurniture is our most tangible contactwith wood +e grew up with pieces that became heirlooms,we come in contact with wood furniture every day, and we %llour homes with it if we can aord it /ost people probablydon(t know that the furniture they see, including their belovedanti.ues, was made in factories In fact , furnituremaking was

one of the %rst crafts to be automated, with the coming of theIndustrial =evolution /ass#produced furniture became acommon part of our lives At the same time, custom#made orone#of#a#kind furniture became lu"urious items 'his has beenboth good and bad for custom woodworkers

'he custom furnituremaker builds one#of#a#kind or limited#edition furniture from the designs of others or from an

original design#a signi%cant dierence from a businessperspective /ost seem to do both because the market forcustom#designed and fabricated furnishings is limited by priceand the tendency of people to buy according to trends andstyles 'his is where custom furniture making is parado"ical8ften, %ne furnituremakers will go to crafts schools or servean apprenticeship to learn their craft 'hey then believe that

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appreciation for their skills will cause buyers to descend onthem in droves, giving them substantial commissions fromwealthy individuals, corporations and architects or designers

+hat they discover is that these markets are limited :o thecustom furnituremaker turns to other kinds of work to pay thebills

'his work may include general woodworking tasks such ascabinetmaking or building pieces to the designs of others Ifwoodworkers are truly committed to custom furniture making,they usually work toward developing the gallery and media

e"posure re.uired to build a reputation, while continuing todo commercial work to survive +hile this scenario is one ofthe most common in the small#shop woodworking world, itdoesn(t hold much promise for success 'he most successfulshops are the ones where woodworker3 owners invest as muchenergy in learning business skills as they apply towoodworking 8ften, woodworkers avoid these real#worldskills and then wonder why they aren(t making a living

1.) !OOD!OR+ERS BUILDING CABINETS

>esides furnituremaking, cabinetmaking is probably thelargest woodworking niche business Dabinetmaking ingeneral is a hori*ontal business serving many segments ofsociety, from homeowners remodeling their kitchens to

corporate boardrooms %lled with media walls and libraries Atthe same time cabinetmaking can serve a vertical marketspeciali*ing in a particular kind of cabinetry 'his might includeaudiovisual cabinetry, kitchens, computer desks or cabinetryfor retail stores !ou can further speciali*e within an area Agood e"ample might be the cabinetmaker who speciali*es inaudiovisual cabinetry for professional recording studios and

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'G stations :uch a shop would know the language andspeciali*ed re.uirements of its market and could charge apremium for its e"pertise

Dabinet shops can be small shops that build every componentor larger facilities that outsource, buying components andassembling them into a NcustomN product 8ften, cabinetshops do both to increase their Qe"ibility and pro%tabilityHabricating and selling cabinets demands dierent shopsetups and planning and design skills from furnituremaking orwoodworking crafts, and the market is considerably dierent

'he main dierence in the market is that cabinets are foundeverywhere nlike %ne furniture, cabinetry is found allaround the average house or oTce, and in every store,restaurant and other public area 'he market is enormous&owever, the competition from ma$or manufacturers, midsi*elocal shops, local home centers, oTce#e.uipment retailers anddo*ens of other places is %erce 'he consumer has many

choices in regard to price and style 'he small cabinet shopmust %nd an edge to prosper in this highly competitivemarket

'he edge is usually related to .uality, service andspeciali*ation In order to compete, you must oer manysolutions for your customers, %nd customers who understandthe advantages of doing business with you and develop amarketing attitude that helps you to move with the trends

'hese characteristics are critical to the success of anywoodworking business but become especially important whenworking in the highly competitive cabinet market

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1.# ARTISTRY

Artists who choose to use wood as their principal medium are

entirely dierent from other woodworkers 'hey are artistsand visionaries %rst and crafts persons second >ecause theirwork is driven by their inner vision and sells only because thatvision resonates with a buyer, they face many dierentchallenges It might seem that being businesslike is not one ofthemV however, artists need to eat, like the rest of us 'heycannot pursue their art without a means of support, whetherthat support comes from grants or sales, or a combination of

the two Artist3woodworkers have their own uni.ue businesschallenges

If you study the lives of famous artists of the last hundredyears, you(ll often %nd that they were relentless self#promoters and that they worked e"tremely hard every day,whether inspiration knocked or not 0ainters such as 0icassoand Kackson 0ollock Rto name two dierent e"amplesS were

conscious of their reputations, their gallery relationships, theirfellow artists ( work and the world where they lived and soldtheir work 7ven a famously unsuccessful Rin his lifetimeMSartist such as Gan -ogh constantly wrote letters to anyone hecould appealing for support, gallery representation andrecognition In his case, his art was not of his time, but itwasn(t long after his death before he was recogni*ed for hisgenius 'oday, in our information#driven world, it is less likelythat an artist of his stature would remain undiscovered in hislifetime

'here is a business of %ne art, and the artist3 woodworker canpro%t from learning its ways -alleries, grant makers,corporate supporters, museums and publications have meansof connecting with the savvy artist If you wish to pursue yourartistic vision as a woodworker, you(d be well advised to learn

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how to evaluate your strengths and weaknesses, and we (lllearn how to %nd markets for your work All of these basics areskills not unlike the woodworking skills you (ll ac.uire over

time :kills are learned from doing, not from observing orreading >ecause it takes time to learn business skills, I oftenlook forways people can start a new business graduallywithout taking a blind leap

:tarting gradually means keeping your day $ob or having aspouse with suTcient income to pay the bills It might mean%nding enough capital RmoneyS to cover your living and

business e"penses for B to 12 months 8r it might meanstarting out with a minibusiness run out of your home shop atnight and on weekends, gradually building up your cash Qowuntil you can $ustify going full time 'his is probably the mostrealistic choice for new woodworkers $ust %nding their way!ou test the waters and consider the time involved aseducation that will help you develop the skills and knowledgeto succeed :ome of you may %nd that the business is not for

you 'his can be an e"tremely valuable lesson to learn beforeyou bum your bridges, .uit your $ob or commit to an e"pensiveloan and lease

'hroughout this book you(ll %nd interviews with establishedprofessional woodworkers of many kinds 'he emphasis in theinterviews is on how they started, the mistakes and successesthey e"perienced and the lessons they learned 'heire"periences can tell you a great deal about the business ofwoodworking and how your life would be if you became a pro

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1.10 MA+E MONEY

As I mentioned earlier, people want to know if they can make

money if they become self#employed woodworkers +ithoutpro%ts and cash Qow, you cannot survive as a woodworker,and mere survival is not enough I want to see you go beyondsurvival and make the living you want as a woodworker +ehave a tendency to rise to the limits we set on ourselves If youpersist in seeing yourself as a humble craftsman scratchingout a simple living, you will not reach much further than thatIf making millions is your goal, your entire outlook will be

dierent and you(ll probably look upon a business such aswoodworking as only one step along the way If you believethat woodworkers must struggle, you will struggle If youbelieve Ras I doS that you pursue a highly skilled and honorableprofession that can and should be pro%table, then you will beA good attitude is the key to success

:o how much? Fet(s look at a small shop speciali*ing in

audiovisual cabinetry and home#theater systems with anowner and one employee 'he owner knows from hisbookkeeping that it cost him W 23hour per man to pay hisoverhead and salaries &e adds on W15 to get a shop rate ofW63hour, which is the basis for the labor and overhead in hisbids 'he W15 is miscellaneous e"penses and pro%t or markup&e bids a $ob by adding up the hours of time necessary forsales, construction, design, ordering and picking up materials,etc Items that he outsources, such as hardware, electronicsand manufactured components, are marked up to compensatefor the time he spends %nding them and to build in morepro%t /aterials are added in and he gets a %gure 'o this headds pro%t 'hen he considers the %gure in light of hise"perience with the market or customer and decides if it(s toolow or too high, ad$usting accordingly If it(s too high, he either%nds places to lower his rates, cut time or do the $ob .uicker

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2 SELLING YOUR HANDMADE!OODEN PRO"ECTS

At a recent outdoor arts festival %lled with the tents ofhundreds of vendors, I noticed a lot of people carrying similarob$ects 8n closer inspection, I saw that these ob$ects werelawn ornaments made from a steel rod about 4 ft long with atwo#dimensional house made of wood on top 'he brightly

painted little house was about the si*e of a birdhouse,constructed with four pieces of wood nailed together andpainted with folksy details such as window bo"es >y the time Ileft the festival I(d seen do*ens of these things, looked at thevendor(s selection Rat W1C eachS and concluded thatthe ob$ectwas an unlikely hit

'he process leading that craftsperson to that particularproduct design can only be surmised because the maker wasunavailable, but my guess is that he or she started as ahobbyist and stuck a few ornaments in his yard, got re.uestsfrom neighbors and passersby and discovered that he hadstumbled upon a business &e probably spent the wintermonths putting these things together and applying to shows,then hit the road in the warmer months, selling severalthousand dollars( worth each weekend from /ay to:eptember >y the time the leaves began to fall he or she was

back in the shop contemplating a successful season withW45,555 to W5,555 in the bank and wondering how to e"pandthe line

In case you think I(m suggesting you build lawn ornaments, letme assure you that this is $ust one e"ample Fet(s look atanother situation A woodworker starts developing his craft

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when he(s young, eventually going to a famous school forcraftspeople and learning from an acknowledged mastercraftsman After school he $oins the shop of the master and

spends his days fabricating the master(s one#of#a#kind designsfor galleries and wealthy individuals, while working alongsideother skilled woodworkers 'hey do .uite well for severalyears as the master reaches the highest echelons of the artworld, creating special pieces that are purchased by wealthycollectors and corporate art collections 'hen the roaringeighties come to a screeching halt 'he bottom falls out of theart market, and the master pmdently decides to close his

workshop and return to teaching and creating his own designsby himself 'he dedicated and highly skilled woodworkers arelaid o, and the master makes several calls informing otherarea shops of their availability 8ur young craftsman isinterviewed by one such shop

After the interview the shop owner thanks him, praises hiswork and regrets to inform him that there is very little market

for his skills, and if he(s hired, he(ll make much less money thanhe is used to and he(ll be putting together cabinets and copiesof Arts#and#Drafts furnishings 'he young man declines theoer and decides to go into business for himself making thekind of furniture he loves &e borrows W5,555 from relativesand buys a shopful of e.uipment, signs a lease and hasbusiness cards printed 'hen he sits in his shop and wonderswhere his business is, occasionally making a piece ourniture

of his own design A few galleries e"press interest in his workon a consignment basis, and he sends his portfolio to anumber of architects and designers 8ne tells him that hiswork is wonderful but there are only so many millionairesbuying furniture these days

'he moral of these two stories Rand though they are both true,they ha ve a fairy#tale .ualityS is that professionals must know

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their markets and work in accordance with them As ahobbyist, the lawn#ornament guy could make any goofy thinghe wanted and stick it in his yard 8nce he became a pro, he

had to give serious thought to his business, his products andways to e"pand both 'he artisan, on the other hand, receivedhis education in the most rare%ed kind of woodworking Rat themaster(s sideS and in its dark side Rit(s tough to make a livingbuilding e"pensive furnitureS &is formal education didn(tprepare him for the truth !our products and services will besuccessful only if there is someone willing to buy them/aking that happen is the sub$ect of this chapter

2.1 'OLLO!ING YOUR BLISS

In the previous e"amples, I( m not concluding that you shouldlet others determine what you make I am a %rm believer inwhat Koseph Dampbell calls Nfollowing your bliss N +hat youneed to do is %nd ways to turn your personal interest in

woodworking into a pro%table business /ost woodworkersdo some kinds of work more than others , eventually %nding aspecialty or developing a reputation for e"pertise in theirchosen %eld If you consider how to market your interests nowbefore you start your business, you (ll save a lot of painfule"perimentation later and start seeing pro%ts earlier in thegame#without com promising your principles

'he subtitle of this book is 'urning !our &obby into a>usiness !our hobby, speciali*ed skill or interest is a greatway to get started as a professional woodworker &obbyistsoften have inside knowledge, know their market because theyare part of it and are able to spot potential ways to pro%t fromthat market Hor instance, if you build mar.uetry $ewelrybo"es, you know the sources for materials, you know the

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collector publications, such as newsletters, that might featurethese bo"es, and you may be a member of an organi*ationthat shares an interest in mar.uetry +hen considering a part#

time business building these bo"es you might ask yourselfwho buys handmade bo"es and how do I reach that audience?'he resources and inside knowledge you possess as a hobbyistcan get you started in answering those .uestions !ou might%nd that custom handmade bo" collecting is one of the hotareas in the collectible market, with galleries doing e"hibitionsof the work, while arts maga*ines feature the work of newnames in the business !ou might discover that it is not only

mar.uetry but the bo"es themselves that collectors want,which means that your potential product line can be e"panded into other styles and types of bo"es !ou might evenmake a cra*y science#%ction#style bo" with a metal Qake %nishfor a gag and ha ve it snapped up by a collector for seriousmoney And you might %nd your Ncra*yN art bo"es in demand,keeping you busy on weekends and bringing in a nice secondincome

'his scenario is totally speculative 8r is it? +hile I was writingthis book I worked with a woodworker who designed and builta line of veneered cigar humidors &is interest came out of hispartici pat ion in a local cigar club &e connected with anational cigar distributor, and his humidor line is now in itscatalog 'he catalog company also asked him if he could dosimilar $ewelry bo"es because it had customers re.uesting

them as gifts for spouses after the husband dropped severalhundred dollars on a humidor In the process we discoveredthat there is, in fact , a lot of collector interest in bo"es, givingmy woodworker friend yet another potential outlet for hiswork All from an interest in cigars

'he success or failure of a product line is not an accident'here are ste ps you can take before you commit to a product

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or work level 'hese steps can help you avoid ma$or mistakesand commitments of time and money and %nd ways to markettough#to#sell services and products such as custom

furnishings 'hey can also help you identify other spin#oitems you could market successfully, thus increasing your salesand building your long#term relationship with your customers

'he key to success is to plan your product line before youcommit to it 'his is true whether you are a part#timer craftingwooden bowls or a cabinet shop building do*ens ofaudiovisual centers

+e(re going to take a look at how a product line takes form bylooking at a %ctional woodworking business called ;ids andDolors, Inc

2.2 HO! A !ELL+NO!N BRAND !ASBORN

;ids and Dolors, Inc, didn(t start out with a catchy name or alarge shop %lled with professional tools It didn(t have a brightcatalog, and there were no stores featuring its line of brightlycolored children(s furnishings It started in a basement with anold table saw and a few power tools pstairs from thebasement was the home of Koe 'ell and his wife and theirthree young children 'he upstairs was important because it

was Koe (s product#testing lab, and his wife and children werethe testers Koe started out as a hobbyist woodworkerbuilding items from plans he bought from maga*ines &efound it a rela"ing diversion from his $ob as an engineer forthe aeronautics industry designing parts that he rarely saw ina %nished product +oodworking also gave him the sense ofgrati%cation that comes from building something with his own

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hands

Fittle kids grow up fast and Koe wanted to capture that

growth before it became old hat, so he designed a woodenstick that mounted on a doorway and had a sliding measuringblock that worked like the ones in doctors( oTces &is sonwould stand under the block, Koe would slide it down andmark his height and the date on a line scored in the wood>ecause his son had a thing for dinosaurs, Koe gave the blockthe shape of a tyrannosaurus head leaning down to bite hisson(s head &e also %nished the stick in bright green, including

some dinosaur detailing in other bright colors'he stick was a hit with everyone who saw it, and Koe startedgetting re.uests for sticks from friends and relatives &ethought about selling the plans to a woodworking maga*ineor making up a bunch and trying to sell them at craft shows inthe summer >efore he got a chance to do anything,something serendipitous happened A friend with one of Koe

(s sticks showed it to another friend who worked at aneducational toy store, and she showed it to her boss whocalled Koe and asked him how much they sold for

:ince he hadn(t sold one yet, Koe said he would have to thinkabout it and promised to call back 'hen he did a cost and timeestimate, which told him how much it cost to make a stick+hen he %nished he was surprised to see that each stick costhim about W5, even if he paid himself a small percentage of

his income from his day $ob Dlearly the stick wouldn(t workfrom a price standpoint, and the store manger had told himthat wholesale prices Rwhat they paidS were typically half ofwhat the item sold for 'hat meant the stick would have to sellfor around a hundred dollars, a ridiculous sum

Koe thought about it for a while and %gured out how to make

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25 sticks on a mini#assembly line 'his got him down to W21dollars each &e called the store manager and asked her whatshe thought they could sell for :he thought W65 was realistic

&e was getting closer +hat took the most time and involvedthe most e"pense was %nishing the stick 7veryonecommented on the design and color schemes Koe used, so hecouldn(t really cut corners there &owever, he discovered thathe could make a stencil to do the detailing and spray on thepaint, saving a lot of time 'his further lowered his price to W14each, and he was in business

Adding on 25Uforpro%t, he .uoted the store buyer a price ofW1BC5 each and she ordered ten, with the warning that if theywent well she(d want more for the Dhristmas season :he alsoneeded an invoice and a name to bill it to And did he have anyrelated items?

>y the end of that fall Koe had a business called ;ids andDolors, Inc &e found a graphic designer who created an eye#

catching logo and had tags and instruction sheets printed &ealso went to several other kids( shops nearby and took moreorders, eventually selling around a hundred sticks andmatching dino head coat racks It was taking .uite a bit of histime and he wasn(t making any moneyV in fact, he was out acou pIe hundred dollars after paying the designer and printerand buying some tools >ut he was having a great time, and heknew he was onto something good

After Dhristmas, sales dried up, and he and his wife had adiscussion about ;ids and Dolors 'hey knew they had apotentially pro%table business but that they couldn(t earn apro%t unless they scaled up their production, including addingmore products with bigger pro%t margins 'hey also had toconfront the larger issue of Koe leaving his $ob and theirincome taking a plunge 'hey had some savings, she worked

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and they weren(t big spenders#all good signs for a buddingventure#and the aeronautics business was in a period ofdownsi*ing and layos, meaning Koe(s once#secure $ob was

not a sure thing anymore After a lot of soul searching, theydecided to do some research and planning before they burnedtheir bridges

'hey started at a bank and .uickly learned that they needed aformal business plan, and even then their chances of getting aloan were small 'hey talked to their friend the store managerand learned that nearly everything she sold was purchased at

a large educational#toy trade show in Dhicago that took placein Kune 'here they could reach large numbers of buyers,including catalog houses and chain stores, if they wanted'hey talked to local craftspeople who sold at arts festivals andlearned where the big local shows were and how to contactthem 'hey also went to the library and got several books onbusiness planning and small#business start#ups

>y late spring they had a simple business plan, designs forseveral pieces of children(s furniture, including a foot stool, atoy chest and a coat rack, and they knew how much moneythey needed to get started Koe cleaned out the garage toserve as a tern porary shop , bought some professional#.ualitytools, including a high#volume, low#pressure R&Gl0S spraysetup, and began building several of each piece in dierentcolors and design motifs

'he show in Dhicago took place inKune, so they had a deadlinecoming up fast A photographer friend took photos of the linein her studio in e"change for one of each piece 'he printswent to the graphic designer, who put together a one#pagefull#color sell sheet set up like a catalog page 'hey had athousand printed on a heavy glossy stock and attachedbusiness cards to everyone 'hey also worked out the pricing

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tight until the Dhristmas season when their buyers startedpaying the bills 'he ne"t time they hit the trade show theyknew peo pie from the year before and were starting to feel

like old hands :everal large chain stores ordered their line,convinced by their second appearance at the show that theywould be able to deliver 'hey hadn(t e.ualed Koe(s incomefrom the aeronautics $ob, but they were having a blast and themoney was getting better every month

'his is an ideali*ed story Almost every mistake new businessowners typically make was avoided because of the research

and planning they did before making a big commitment to thebusiness 'hey also chose a product line and niche market thatwas salable, as proven by their %rst store sales Hew newbusiness owners have the marketing sa vvy and business senseto create a line, come up with catchy name, hire professionaldesigners to make a good %rst im pression and make the manycontacts necessary for success !et each of these activities canbe done by anyone and will work for any woodworking

business, no matter how small>y starting with a product based on something you arefamiliar with, testing the waters and developing businessskills, you can succeed as a professional woodworker I(dsuggest that as you read through this book you make notes onhow you could use each tactic, story or strategy to improveyour success !ou (ll start getting ideas Kot them in anotebook and decide who would buy them, how much they(dcost to make, etc


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at craft shows &e would have done well, much better thanmost people do with part#time occupations &is decision wasto scale up and build a full#time business with growth

potential 7ither way you choose to do it, you can pro%t in awoodworking career from the information you(ll %nd in thisbook

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$ PLANNING YOUR BUSINESS

As an amateur woodworker, you may already have a shopdedicated to your hobby It might be a corner of yourbasement, a garage or perha ps a barn or outbuilding !ou(veaccumulated tools and may also have an inventory of parts,lumber and hardware )ow that you(re thinking of becoming aprofessional, even as a part#timer, you must revise your ideasabout how your sho 0 will be set up and run :ome of the

things that work well for a casual user will not work well forthe pro who, in order to be pro%table, must constantly %ne#tune his methods

Dhanging the way you think about your shop space is only oneattribute of starting and running a business In the ne"t fourchapters we(re going to look at everything you need toconsider when setting up shop as a pro, whether you produce

birdhouses or corporate furnishings :tarting a woodworkingbusiness involves more than deciding where to put your tablesaw !ou need to get the business part of your shop operatingas eTciently as your workspace >y taking care of businessplanning now, at the beginning, you(ll eliminate manypotential future problems and headaches

$.1 THE IMPORTANCE O' A BUSINESS PLAN&aving a business plan before you start a business shouldtypically form an essential part any business startup Awoodworking business is no dierent 7ven if you are startingout small and from your garage A business plan is $ust asimportant for small businesses as it helps the business owners

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to focus on the goals, measure progress, avoid costly mistakesbefore they happen and to keep the business on track byreviewing the plan periodically

&owever many entrepreneurs do not follow this step >ut theones that do swear by its usefulness and credibility and saythat the business plan played a pivotal role in the success ofthe business

:tatistics reveal that B5U of the people who used a formalbusiness plan and this includes the small business owners say

that it made a ma$or dierence to the success of the business8ne general opinion that you would get to hear often is thatyou only need a business plan when you are trying to raisemoney for business

Although it is true that a business plan is almost alwaysre.uired when you are looking for funding from banks andother lending institutions, a business plan serves many other

purposes as well A business plan helps you to de%ne yourbusiness goals and ob$ectives As important as making thebusiness plan, is the process involved in doing it

-oing through the process of making a business plan helpsyou identify some common setbacks and potential problemsthat you might have otherwise ovelooked A business plandoes not guarantee success but it can help you avoid some

common problems of business failures such as undercapitali*ation and lack of market research

As you research and develop your business plan you will beadding able to identify several weak spots Identifying theseweak spots arms you with the potential to %nd solutionsbeforehand as well

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:o what really is a business plan? A business plan conveys yourbusiness goals and strategies and how you are going to usethem in the future to reach potential customers, make sales,

avoid potential problems, visuali*e the future of yourbusiness, how its going to develop and grow, what kind ofstructure and shape is going to take, what people are going tobe involved and the roles they are going to play and also theamount of money that youre going to %nance the venture andkeep it going to need till breaks even

All this may sound intimidating but it really is not A systematic

approach to making a business plan is needed do soeectively In this section we will deal with the various stepsre.uired to make up business plan

'here are three primary categories of a business plan

'he %rst one is known as the business concept where youdiscuss the industry you are going to operate in, your businessstructure, your product or service that you sell and how doyou intend to make your business a success

'he second part is the marketplace section in which youdescribe, research and analy*e a potential customer as well asthe strategies that you are going to use to deal with thecompetition and target your customers

'he third section is the %nancial section which contains your

details about the %nances re.uired, your potential income,cash Qow re.uirements, balance sheets and other %nancialissues such as the breakeven analysis /aking the %nancialpart of your business plan may re.uire assistance from youraccount

Hurthermore these three sections can be broken down into si"ma$or parts

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1 7"ecutive summary

2 >usiness description

6 /arket strategies

4 Dompetitive analysis


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aspects of your business

If you include other people involved in the business such as

employees, business partners etc, you will probably receivesome very valuable input about the future potential of thebusiness A business plan is essential in planning the start upof a woodworking business as well as to determine its futuregrowth A business plan will help you reali*e important factsabout it such as the amount of capital re.uired now as well asfor future sustenance, the competition faced, the marketingstrategies that need to be employed future growth potential

etc$.1.1 A 7us/ness =9n /s 3/t9 :o6 se;u6/n4 nn;e

If youre seeking %nance for your business, a business plan isan essential document to help you convince lenders andinvestors that you should be taken seriously +hether yourenew to business or have been operating for years, lenders andinvestors will only risk their time and money if they are

convinced your business will be successful and pro%table !ourmarketing plan is also a crucial part of helping you to attractfunds

$.1.2 A 7us/ness =9n =6o3/des 6od


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$.1.$ A 7us/ness =9n 4/3es 8ou ;ont6o9 o: 8ou67us/ness

>usiness planning can seem overwhelming and time#consuming, but many successful businesses look at it as anopportunity 'he planning process helps you learn about thedierent forces and factors that may aect your success Ifyoure already in business, it helps you to step back and look atwhats working and what you can improve on Instead ofworrying about the future, a business plan helps to give you asense of control over your business and your livelihood

+riting and researching for your business plan gives you thechance to

learn about your industry, market and competitors

write down e"actly where you are in the market andwhere you(re headed

identify challenges you may come across and work outstrategies to avoid or overcome them

understand your business %nances, including managingcash#Qow and determining your break#even point

set speci%c goals, timeframes for achieving them andhow youll measure performance

make sound business decisions that focus your activities,ma"imise your resources and give you a competitiveedge

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$.1.& It /s /efore making this decision, you shouldconsult your attorney and your accountant, since this decisioncan have a ma$or impact on your ta" situation and e"posure toany potential liability in the future +hile both of theseconsiderations may seem a little scary, they are a normal partof being in business 'a"es, liability, insurance, lawyers andaccountants are interrelated, and it will be much easier to dealwith them now, at the beginning when things are relatively

simple, than later, when a crisis occurs :o don (t ski p thissection if you(re serious about going into business

!ou have three choices for setting up your business 'hesimplest, sole proprietorship, is suitable for part#timersworking alone and small oneowner shops sually, you $ust %lea A Rusiness AsS form with your local governmentand get a ta" number from your state ta" department 'his

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form registers your company name locally and gives you thenecessary paperwork to open a bank account for yourbusiness It does not protect the name from imitators or

protect you from personal liability

$.2.1 SOLE PROPRIETORSHIP

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division of responsibilities, money, labor, investment anddecision making 0artnerships are soluble at any time by anypartner unless legally designed otherwise A falling out with a

partner can mean your business is closed, your bank accountinaccessible and your customers confused or lost 'hesepitfalls must be dealt with in your partnership agreement !oumust have an agreement, in writing, prepared by an attorney,before entering into any partnership A word#ofmouth orhandshake agreement may legally bind you, but it cannotprepare you for all the possible conQicts that may arise :omeof the books contain sample partnership agreements that can

be used as a basis for your own, should you choose to go thisroute >y using a basic form and agreeing on details ahead oftime, you(ll save time and money at your attorney(s oTce

0artnerships have advantages A partner shares the load andprovides com panionshi p in the often lonely process ofbusiness ownershi p A great partnershi p can come aboutwhen each partner brings a com plementary set of skills to the

business A good people person and an e"cellent pro$ectorgani*er might make a good team Domplementarywoodworking skills or the combination of two e"istingcustomer lists can hel p a new partnershi p get o the groundsuccessfully 'here are economics in sharing tools and tasksthat can work in your favorV however, these things can alsowork against you if both partners are trying to com pletesimilar tasks at the same time A successful partnership

re.uires constant communication and an ability to plan andwork with others

$.2.$ CORPORATIONS

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its own It e"ists separate from the personal fortunes of itsfounders and can pass from their hands intact or even outlivethem It pays its own ta"es, can be sued and may have many

owners in the form of shareholders, which are importantconsiderations 'he decision to incorporate is comple" andre.uires e"pert advice and input from a team of professionals

'he most common reasons for incorporation for very smallbusinesses are protection from liabilities, ownership issuesand as a way of raising ca pital or start#up money Dorporationscan provide some protection from personal liability for a

business owner &owever, protection is by no meansguaranteed, particularly if it can be proven that protectionfrom liability was the main reason for incorporation

Hor most of us, sole proprietorship is the way to go If you aresetting up a business that will grow into a company with manyemployees or have a variety of products, you may wish toincorporate It is much easier to raise money for growth when

you have stock to distribute Incorporation also involves manycomple" ta" issues and angles that are beyond the scope ofthis book Again, I recommend seeing a competent accountantand attorney

Dhoosing a legal form of business is the %rst decision youmust make when setting up shop As a part of the decision,you need the services of a group of people that a lot of artist3crafts persons usually try to avoid Attorneys, accountants and

other professional business#service providers -et your teamtogether now#even if you merely chat on the phone or ha vean e" ploratory meeting#and you(ll avoid many potentialproblems later on

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$.$ HA@ING BUSINESS PRO'ESSIONALS INYOUR TEAM

!ou cannot learn and do everything involved in running abusiness on your own :imply becoming a pro%cientwoodworker, keeping your shop together, doing .uotes andgetting work is more than a full#time $ob 'rying to keep upwith ta" law, legal considerations, insurance and the myriadissues involved in business ownership would overwhelm eventhe cra*iest workaholic Hortunately you have access toprofessionals who speciali*e in knowing these things and

helping you understand them 'hese business professionalsshould be on your team, however informally, from thebeginning

$.$.1 LA!YERS

/ost of us aren(t comfortable dealing with lawyers,accountants, insurance brokers and other service providersbecause their worlds seem so esoteric and incom prehensibleto us It is im portant to remember that they make their livingin e"actly the same way a woodworker does 'hey providee"pert advice and skills for a price, a price that will almostalways be less than you could do it for yourself +hen youshell out W155 an hour for a lawyer, you are gaining access tohis or her entire speciali*ed e"perience and skill base A lawyercan immediately recogni*e a problem and tailor a solution thatis most bene%cial to you, the client Hor e"ample , imagine youare considering leasing a commercial space where you canbuild your woodshop !ou look at that space, like it and theowner sends you a lease +hen you e"amine the lease, you%nd it %lled with %ne print and statements about Ntriple netleasingN and a NW per s.uare foot plus a common areachargeN It discusses fees for snow removal, liability in %resand that natural disasters are the lessee(s responsibility and so

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on !ou look at it and, unless you are intimate with the ins andouts of commercial leases, start to panic )ot only that, it listsescalating rents for %ve years, and the wording makes it seem

that you are personally responsible for W45,555 in rent if yousign -ee*M R+e(ll be looking at some of these terms andrealities in the ne"t chaptersS

!ou start having second thoughts about your whole businessAt this point a friend who owns his own business steps in andsays, N-o see 0aul :mith &e(s a lawyer who speciali*es in smallbusinesses and let him take a look It(ll cost you a few bucks

but you(ll know e"actly what you(re getting into and he canrenegotiate some of these terms to your advantageN

!ou meet with 0aul, he goes over the lease with you, makessome notes, calls the landlord to clarify some issues and saysgo ahead and sign, under these conditions &e gives you someadvice about your business and recommends an accountant&is advice on the lease saves you hundreds in unnecessary

items he got removed and, on top of it all, he recommends youto an associate who wants a cabinet for his stereo system

+hile this is an ideali*ed situation, it is not far from reality Afew key things ha ppened !ou didn(t sign the lease withoutgetting advice, you got a recommendation from a fellowbusiness owner who has dealt with the same problems, andthe lawyer you saw speciali*ed in small business 'his is vital Acorporate lawyer or a criminal lawyer Rto mention $ust a few

specialtiesS cannot provide the kind of speciali*ed advice youneed as a business owner -et someone who understands theproblems you face regularly and your budget

!ou also got a referral to an accountant, which can save youtime and money It is not in your attorney(s best interest torefer you to an accountant who doesn(t %t your needs

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=eferrals are one of the most important tools of smallbusiness /ost of your work and sales, no matter what kind ofwoodworking you do, will come from referrals 'his is the case

with almost all small businesses including your professionaladvisers Fearn to use the referral system and you will bene%tin many ways In my e"ample, your new attorney referredsome potential business to you 'his happens all the time,particularly as your reputation grows !ou(ll %nd referralsdiscussed throughout this book

$.$.2 ACCOUNTANTS

Accounting is one of the least understood parts of running abusiness /ost people think it is bookkeeping, ta"es or money+hile accounting is all of these things, it is also an informationsystem that can tell you at a glance how your business isdoing !our accountant can show you easy ways to set up yourbooks and bank accounts, make sure you pay your ta"es andhelp you take advantage of the many ta" bene%ts of beingself#employed &e can also advise you on the advantages anddisadvantages of buying property or large tools, partnerships ,selling your business and many other issues concerningmoney 'he statements he prepares can tell you at a glance ifyou are pro%table, how much you are worth, if you haveenough money to take on a big $ob and how you can achievethese things if you are not there yet

As a small business, you do not necessarily need a certi%ed

public accountant RD0AS D0As go through rigorous trainingand testing to be .uali%ed to do audits for comple" businessand ta" situations 'hey charge more because of theire"pertise &owever, a non#D0A may be %ne because you areprobably not going to re.uire that level of e"pertise At thebeginning, I don(t recommend going to a bookkeeper &ave anaccountant help you get started, then use a freelance bookkee

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per a few hours a week to maintain the system, if necessary/ost of you running oneor two#person shops can do ityourselves if you have the discipline to keep everything up#to#

date all the time 'here are many computer softwareprograms to make this easy, and they have the advantage ofautomatically updating everything every time you make anentry 'hey can also generate end#ofyear and ta" statementswith a few keystrokes, print out invoices, write checks andkeep track of e"penses on a $ob#by#$ob basis /ost of them usean interface that is very similar to your checkbook and veryeasy to learn

If you are realistic and reali*e that keeping books is not yourforte, you should consider getting a part#time bookkeeperafter your accountant has helped set up your books Hor a fewhours per week, these independent business persons can saveyou hundreds, if not thousands, of dollars in lost time, moneyand aggravation Donsider them !ou can usually %nd onethrough a referral from your accountant or ads in local

business publications As you should for all independentcontractors, check their references 'his small step can save alot of headaches

$.$.$ INSURANCE BRO+ERS

Insurance is a necessary evil in most people(s minds As a self#employed woodworker, you may need several kinds ofinsurance, including health insurance Ryou are in a business

where serious accidents can happenS, insurance to cover yourloss of income in the event of an accident or illness, propertyinsurance for yourshopso that you are not wiped out by a %reor disaster, and liability insurance in case someone is in$ured orhurt by your actions &aving to arrange for all of these typesof insurance can be overwhelming !ou may have the goodfortune to be covered by a spouse(s health policy or you may

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be able to maintain one from a current or previous $ob, if youare part time 8therwise, you can probably %nd a planadministered for small businesses or perhaps by an artist3

craftsperson group Ask your fellow small business owners,the Dhamber of Dommerce or your local businessdevelopment oTce

Hor property and liability you need an agent who speciali*es inbusiness insurance, particularly small business insurance'here are policies tailored to every kind of situation, and youshould shop around for both price and an agent who

understands your needs or will take the time to learn themInsurance is comple", and a detailed discussion of it is beyondthe scope of this book &owever, I would like to pass on a fewthoughts +hen you insure your shop and vehicle against loss,get full replacement value 'hat great old table saw may notdo well in an insurance claim unless you can show how much itwould cost you to replace it ;eep a detailed inventory of allyour tools and any signi%cant supplies you keep on hand, and

keep it in some location other than your shop A videoinventory with a soundtrack of you reading serial numbers andrelevant specs may help in a ma$or %re or loss 'his inventorywill be important to your accountant because of amorti*ation,a process that allows you to depreciate e.uipment overseveral years

8ne of the best ways to keep property insurance costs down isto have a high deductible, say W1,555 or more 8ver time, thesavings in premiums will far outweigh the occasional small lossfrom theft or oversight 'his is also valuable for vehicleinsurance Increasing your deductible on your health insuranceto W ,555 will sharply reduce your payments, but you will beresponsible for all noncatastrophic bills 'his strategy protectsyou from losing everything if you sustain a ma$or in$ury orcontract a long#term illness It is a worst#case scenario but

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much better than being uninsured

Fiability insurance can be hard to aord, yet it is important for

a number of reasons /any commercial and savvy individualcustomers will re.uire proof that you have liability insurancebefore they will contract work from you 'hey want to knowthat they are protected if something you do causes damage ontheir premises I have heard stories of %res caused by opencontainers of wood %nish left on $obs, in$uries caused by poorconstruction or installations, poisoning of infants by to"ic%nishes and a host of other horrors In every case like these

you could be liable for damages In your shop, accidentsinvolving employees or customers are a possibility -et yourliability insurance and make sure you tell potential clients youare insured It may get your bid moved to the top of the pileover a competitor who was not forthcoming about insurance 'his is $ust one e"ample of the many ways you can usenecessary evils such as insurance as marketing tools

As a small#business owner you(ll be coping with all of thesethings and more, which can be overwhelming Kust rememberthat by taking things one step at a time and usingprofessionals to help you, you will be %ne As you do businessyou(ll be working with many other business pros, includingdesigners, real estate agents and others who serve smallbusinesses Hurther on in the book we(ll look at how to utili*ethese other valuable resources to help your woodworkingbusiness prosper

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& STARTING 'ROM YOUR GARAGE

If you are $ust starting up then you will want to cut down oncosts 8ne of the best ways to cut down on costs is to get acheap workshop A great place that will see you save on therental costs is your own garage !es, you can transform yourgarage to become your workshop

&aving your garage as your workshop has many advantages

and the one that is most obvious is that you are able to saveon costs At the same time you are able to work from home,which reduces the pressure of having to go to your workplaceeach and every day

If you work from your garage there are certain things that youneed to consider 8ne of the most important things is that youneed to reali*e that you will not be in a position to make more

bulky wood pro$ects as you are limited by space +orking fromyour garage also means that you need to use small tools thatdo not produce much noise that will disturb your neighbors;eep in mind that large power machinery usually comes with alot of noise that may disturb other people

'here are so many things that you can build from yourworkshop 8ne of the best pro$ects that will utili*e the spacethat you have is toy pro$ects 'oys will not take a lot of space inyour workshop and will not re.uire usage of power tools'here are so many other small pro$ects that you can do rightfrom your garage, you $ust need to have the plans


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Note: If you do not have a woodworking plan archieve for yourwoodworking business, I highly recommend this huge archive below:

http33wwwwoodworker*$ournalcom314555#woodworking#plans#clubhtml

As a beginner, starting from your garage will give you a betterchance to make pro%ts, allowing you to get a bigger rentalworkshop as the business e"pands

B
http://www.woodworkerzjournal.com/14000-woodworking-plans-club.htmlhttp://www.woodworkerzjournal.com/14000-woodworking-plans-club.html


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( PLANNING A PRO'ESSIONAL SHOP

(.1 SETTING UP YOUR SHOP

'he word shop is music to a woodworker(s ears, especially thehobbyist who may have had to live with a limited amount ofspace or Iess#thanade.uate tools 8ne of the most alluring aspeets of going pro is the opportunity to build your dreamshop After all, now that you are a professional, you can $ustify

spending money on a professional workspace, right? 7venbetter, you can get some of those cool gi*mos you(ve beenogling in catalogs and maga*ines +ell, maybe we(re $umpingthe gun It(s time to back up and take a good look at thedierences between a hobbyist woodsho p and a professionaloperation dedicated to eTciency and pro%t

!our home shop will probably be the same as your pro shop

when you start out, particularly if you are going to trywoodworking part time 7ventually, you may want to rent acommercial space or build an addition or outbuildingdedicated to your home business >ecause constructing thesemore commercial shops is a comple" issue and represents anopportunity that may come only once in your business life,we(ll take a detailed look at upgrading your shop in the ne"tchapter Hor now we(ll discuss your present shop or the oneyou(re setting up 'his shop may be in a corner of a basementor garage, in a den or perhaps in a shed in the yard

If you(re like many casual woodworkers , your shop is amishmash of odd tools, hardware, wood bits and pieces and awork table or two It is organi*ed by chance and works %ne asan occasional workspace &owever, now that you(re going tostart selling your work, you(ll be spending a lot more time in

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your shop and you(ll need to set it up to be eTcient andcomfortable At the beginning, when you may not be busy, youcan consider how to rearrange your shop and plan your tool

purchases and inventoryhandling needs

0lanning a professional shop has similar re.uirements,whether you are rearranging a home shop or laying out 2,555s. ft of commercial space 7ven the individual who carvesdecoys, for instance, has a variety of processes he goesthrough for each completed bird carving &e starts with raw,roughsawn wood and ends up with a hand#carved and painted

decoy worth hundreds or thousands of dollars 7ach piecegoes through similar steps, from initial concept to completion+hether you build cabinets, carve carousel horses or fabricatemar.uetry music bo"es, you have a process that works bestfor each piece 'he %rst step in planning your shop is to look atthat process and create a timeline that includes eachmanufacturing step and lists the tools, space and materials itre.uires +riting down and organi*ing your procedures will

tell you a great deal about how to work more eTciently andbe cost eective by eliminating bottlenecks and repetition

!our written process plan will be usable for many of theconcepts covered in this book A process plan is an e"cellentaid to pricing, for instance, allowing you to break down labor,time and materials for each step of construction 'his can be agreat help when you need to price a new piece or determinewhether your prices are pro%table and competitive +e don(tget eTcient to save moneyV we get eTcient to make money0rofessionals are always looking for better ways to do things,and this simple e"ercise can help you think about your work ina more professional Rand pro%tableS manner

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(.2 DECIDING THE PROCESSES

=aymond Dhase, a %ctional character, is a well#known

professional decoy carver from +est Girginia &is decoys arepri*ed by collectors for their detail, accuracy and lifelike posesAfter carving as a hobby for several years, =ay began to getre.uests for birds and eventually reached the point where hisdecoys sold for thousands of dollars and customers had towait for u p to a year to purchase one &e still works out of hishome in the hills of rural +est Girginia

>ecause Dhase(s decoys are scienti%cally accurate, planning isvital to each carving =ay is represented by a gallery thatspeciali*es in decoys and other natural carvings, and hedetermines what birds he will carve If he were less well knownor $ust getting started, he might want to take commissionsfrom customers for speci%c birds or poses If that was thecase, the %rst step would be meeting with the customer Rinperson , by phone or th rough the mailS to determine the type

of pro$ect, set a price and devise a schedule for completingthe work :ince =ay (s birds are always in demand, his galleryhandles the sales, and he simply does the carving &ere is theprocess =ay Dhase uses to plan, carve and %nish one of hisfamous decoys

'he %rst step for =ay is to choose the species of bird to carvealong with an appropriate pose 'o help get ideas, he(ll usuallyspend time searching through his library of bird books and

photos taken in the %eld +henever possible, he tries to seethe live bird to help capture its feeling and coloring 8nce he(sdecided, he makes detailed life#si*e drawings and watercolorsof various angles and poses of the bird 'hese drawings willdetermine the %nal look of the decoy

+ith drawings in hand, =ay heads forthe shop &e starts by

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cutting a carving blank from a large piece of basswood If thedecoy is larger than the basswood he has on hand, he (ll p lane,$oint, and glue#up a number of smaller pieces to form a blank

'o carve the decoy, =ay begins by transferring the drawings tohis blank &e then roughs out the shape on the band saw)e"t, with a steady hand and an electric carver, =ay carves theshape of the bird in about two hours At this point, he switchesto a set of chip#carving knives to %nish carving and add the%nal details >y constantly referring to the photos anddrawings he(s made, =ay can complete the decoy in around

eight hoursAll that(s left is to add a %nish =ay starts with two coats ofprimer, followed by several basic colors applied with anairbrush 'he %ne details are painted on with artist(s brushes'o protect the decoy, a %nal coat of matte lac.uer is sprayedon >efore =ay packs up the decoy for shipment to a galleryand invoices it, he takes a photo of it for his portfolio

'hese steps are enlightening in a number of ways Acomprehensive tool list can be compiled 'here are de%nitework stations that are used for dierent tasks /aterialpurchasing and handling must be considered =esearch,photography and billing are included as vital parts of theprocess 'he hours are based on a minimum of one hour foreach task because of setup, but in some cases, prep work isdone for several pro$ects all at once =ay(s total hours are 64

&e adds on hours for pro%t, totaling 45 &is materials areine"pensive in .uantity, but his original inventory of paint andwood was fairly e"pensive If his bird sells for W2,55, of which=ay receives W1,55 after a gallery commission of 45U Ryes,45UMS, he is averaging W695 per hour before e"penses andoverhead 'his %gure reQects the fact that =ay is highly skilledand has spent years building a reputation as one of the

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country(s preeminent bird carvers

(.2.1 PROCESS PLAN 'LO! CHART 'OR ASPECIALI-ED !OODCAR@ING SHOP

'here are big dierences in the way a pro woodworker and anamateur woodworker will do certain tasks 'he hobbyistprobably buys wood in small .uantities and may get it pre#milled 'he pro will have trucks delivering large amounts ofrough lumber that must be stored, moved into the shop,planed and shaped, etc 7ach of these labor#intensiveoperations can be made much easier by planning work Qow byvisuali*ing the steps taken to e"ecute a typical pro$ect 'hechart at right shows the steps discussed on the previous pagefor =ay Dhase(s decoy#making business

Ste= 1=esearch bird for decoyFocation Fibrary3oTce'ools >ooks/aterials )otebook'ime 4 hours

Ste= 2


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Focation :hop3large tool area'ools 0laner, $ointer, table saw, clamps/aterials >asswood, glue'ime 4 hours Rmakes si" blanksS

Ste= &'ransfer drawings to blankFocation :hop bench'ools 0encil/aterials )one'ime 1 hours

Ste= (=ough out shapeFocation :hop'ools >and saw/aterials )one'ime 2 hours

Ste= *&and carve birdFocation :hop bench'ools 7lectric carver, chip#carving knives/aterials )one'ime C hours

Ste= )

0rime bird for %nishFocation :hop %nishing area'ools &GF0 sprayer/aterials 8il#based primer'ime 1 hour

Ste= #:pray basic colors

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Focation :hop %nishing area'ools Airbrush/a terials Artist(s colors'ime 2 hours

Ste= %Hine#detail paintingFocation :hop %nishing area'ools Artist(s brushes/a terials Artist(s colors'ime 4 hours

Ste= 10Dlear lac.uer overcoatFocation :hop %nishing area'ools &GF0 sprayer/aterials Fac.uer'ime 1 hour

Ste= 110hotograph for portfolioFocation Dopy stand'ools Damera, lights/aterials Hilm'ime 1 hour

Ste= 12

0ack and shipFocation :hipping table'ools 0acking tape dispenser/aterials 'ape, bo", label, postage'ime 1 hour

Ste= 1$0repare invoice

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Focation Fibrary3oTce'ools Domputer, software, printer/aterials :tationery, postage'ime 1 hour

(.$ THE IDEAL SHOP

If you have broken down the assembling of your typicalpro$ect into steps, as we did with =ay(s, then you already havean idea of what your shop should look like Fet(s take a look at=ay(s workplaces 8ne of =ay (s most important work areas isnowhere near his woodshop =ay(s library3den contains hisdesk with computer, bookcases full of reference books, acomfortable chair with good lighting for reading and adrawing table facing a north window A Qat %le cabinetcontains his drawings and paintings of birds 'his room servesa number of the steps in his process plan =esearch, businessmatters, drawing and planning and the occasional meetingwith his gallery rep take place here It is clean andconspicuously free of sawdust and paint smells

>efore we step into =ay(s shop, we take a walk through agarage %lled with racks of rough wood &ere, =ay stores.uantities of the materials he uses regularly and he keepstrack of dryness and .uality 'he garage is accessible to thelarge trucks that deliver his stock, and he can easily load

directly into his garage from the truck, an importantconsideration for the solo woodworker

'he e"tra#wide back door of =ay(s garage leads into his shop&ere we can see the logic of its layout A table ne"t to theplaner receives the rough lumber After several passesthrough the planer, the wood travels along the wall to the$ointer and %nally reaches the table saw for trimming A

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workbench backed with a large number of clam ps on a rack isthe station where the wood is glued and clamped into largepieces Hrom here we reach the band saw, which is out in the

center of the room to make it easy to maneuver wood aroundthe blade Hrom there the blocks get stacked in a dry corner8n the other side of the room is a carving station with a7uropean#style bench and a comfortable chair for detail workFighting is directly overhead, and a gooseneck detail light isclose at hand

=ay does his spraying in a booth that once served as a mud

room It has an e"plosion#proof e"haust fan, a com pressor and%reproof storage for solvents and lac.uer An ad$ustabletable#mounted clam p holds the decoy via a screw in thebottom


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other areas scaled to detail work, including carving, painting,photographing and shipping All of the business activities,such as billing and sales, take place in a clean dustfree

environment that keeps =ay(s computer working well

=ay Dhase is a successful woodworker who turned aspeciali*ed hobby into a profession 8ne of his secrets ofsuccess is his desire to seek abetter, more eTcient way towork +hen you look at the relationship between =ay(s workmethods and his shop layout, you can see this attitude inaction +hether you work out of a corner of your basement or

are looking at commercial shop space, spending timeanaly*ing your needs can mean big savings in money, time andaggravation 'he work#Qow chart on the facing page outlinesthe points at which you can study and improve your business

'he process plan does more than help with shop layout It tellsyou what tools are most important and helps determine whenand whether you need to change your shop to better serve

your purposes as a professional In the ne"t cha pter we(ll lookat home vs commercial space and amateur vs professionaltools for the shop >y making these plans now and basing yourpurchasing and leasing decisions on them, you(ll save plenty ofmoney and be more pro%table in your new profession

(.$.1 !OR+'LO! CHART 'OR A SMALL !.SHOP

'his chart shows typical steps in a custom shop 7achrepresents a point where the shop owner can improve or learnmore for future use ;nowing the time, money Rmaterials andoverheadS and labor involved at each step can help with futureestimates or product development, shop planning and toolpurchases

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M6et/n4

/ake initial contact with customerV complete sale andestimateV sign contract or purchase order Hor some thisstep may include booking gallery shows or festivalappearances

Des/4n o6 =6odu;t de3e9o=


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* SPACE AND E''ICIENCY

'he space you work in has an impact on the success of yourbusiness and the en$oyment you get from that business >yconsidering the processes you use while creating yourproducts and dealing with your customers before you planyour workspace, you(ll ensure that the space functionseTciently

+hat de%nes a shop that NworksN? 7Tciency, comfort,accessibility, e"pandability and safety are primeconsiderations !ou must store supplies and %nished work,have clean areas for oTce work and %nishing, and arrangeyour tools to keep things Qowing without having to rearrangeand set them up constantly


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around to prepare for %nishing and delivery 7ventually mostwoodworkers start dreaming of that perfect sho p away fromthe basement or garage

'he decision to move out of your home shop is a signi%cantone in many ways It represents a ma$or commitment towoodworking as a profession, both psychologically and%nancially 'his is a very good reason to move your businessout of the house nlike the home oTces we hear aboutregularly, woodworking is a manufacturing process and oftenworks best in its own environment 'he psychological bene%ts

are $ust as important 8ut ofthe house, faced with ove rheadand a space de voted to work, you are forced to focus on yourwoodworking as a profession rather than a hobby 7verythingchanges, from the su ppliers you deal with to the prices yourwork commands in the marketplace !ou are taken moreseriously by your potential customers !our time is dedicatedto work without the alluring distractions of being at home

I have found that getting into a professional, work#orientedspace is vital to the long#term success of any small business7ven home businesses suer when the space they occupy isshared with household activities and interruptions I highlyrecommend that you seriously consider moving your businessaway from your house as soon as it is practical, even if itmeans a move into a building on your property !ou(ll feel andact dierently, get more work done and the work you do willbe more pro%table

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*.2 MO@ING

>efore you take the plunge and rent or purchase shop space,

it(s imperative that you do some serious planning Feasing aspace can be e"pensive and involves many details you may nothave considered 'he planning you do before you start lookingat space can save you money and help you avoid manyproblems in the future It also helps you make decisions aboutthe si*e of your business, the money you(ll need to bring inand the kinds of work you do and will do in the future 'hiskind of planning is no dierent from what you do when you

design a new piece of furniture or learn how to master a new$oinery techni.ue It involves some research and re.uires youto visuali*e where you(re going and how you(ll get there

Gisuali*ation is a simple techni.ue that helps with many of thedecisions involved in choosing and planning a new workspaceIt also helps you determine whether the space you(reconsidering is something you really want !ou simply imagine

yourself, in the not#too#distant future, in your perfect shopspace Donstruct the space in your mind, giving it all thenecessary details 'hink about the lighting, the layout, theentrances and the oTce space attached 0ut yourself in thespace and look around, ad$usting things until you feelcomfortable It is important when visuali*ing your space toinclude sounds, climate, even the smell of sawdust or aircoming in a window

>ecause this is an imaginary space, you have completeQe"ibility in your choices !ou can put any tools you need inthe shop and give yourself a nice design area with a computerand a comfortable place to make coee or meet withcustomers 'his e"ercise helps you to understand what kindsof things are important for you to have in your workspace+hile your shop may not actually have all the amenities you

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can imagine, you can identify those things that will make abasic dierence and ensure that your new space includesthem

Hortunately, this e"ercise is an easy one for mostwoodworkers 7veryone fantasi*es about an ideal shop, thetools it contains, the feeling of being surrounded by wood andwhat it would be like to open the doors each morningDreating a shop in your mind can help you recogni*e the spaceyou need when you are out looking for it

*.2.1 !OR+SPACE CHEC+LISTAfter you visuali*e your workspace, start a checklist ofwhatyou want and need Hollowing are some items to consider:ince every woodworker has some speciali*ed re.uirements,you(ll be adding more of your own to the list, while others maynot be relevant to your needs

Lo;t/on

+e(ve all heard the cliche about location being the three mostimportant .ualities of any real estate decision, and for mostuses this is correct Focation is the primary factor determiningprice or rent, which is a ma$or consideration &owever, for awoodworker location is much Kess important because thepriorities are dierent In fact, your ideal location is probably aterrible location for most other businesses

!ou should consider most of the items on the list as criteriawhen choosing a location :i*e, accessibility, *oning and manyother things are important If you will be meeting customersand clients at your shop, then you should consider yourlocation from a marketing point of view Is it hard to %nd? +illyou have to spend advertising dollars $ust to get yourprospects to your door? 8r will they come to you wherever

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you are? !our marketing plan and market will help answerthese .uestions Rsee ne"t chaptersS

Rent o6 =u6;5se =6/;e

:pace is either leased or purchased In a purchase you shoulduse a .uali%ed real estate agent who speciali*es in commercialreal estate and represents your interests Ra Nbuyer(sN agentS:uch a person will provide e"pert knowledge about the ins andouts of your area(s real estate market, including pricing andhelp with many of the .uestions on the workspace checklist

!ou also need an attorney with commercial real estatee"perience who represents your interests only, and Iemphasi*e only your interests


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an additional number of s.uare feet per year, perhaps Rin oure"ampleS 155 s. ft 'his adds about W6 per month to youre"pense Add in waste removal, cleaning fees, parking fees,

utilities and any other variables and you have your rent %gure =ead your lease before you sign and make sure youunderstand what you pay e"tra for and what is included

U=:6ont ;s5 6eu/6ed

+hen planning a move it is very important to know how muchcash you must invest in up#front fees 'hese include security

deposits Roften two to three months rentS, utility depositsRremember, like everything, these are negotiableS, insurancecosts Rproof of insurance may be re.uired by the landlord orbankS, attorney(s fees, remodeling costs Rmay be shared orpaid by landlord, be sure to askS and other fees re.uired byyour local and state governments 'his amount can beconsiderable, and the negotiating you do at the beginning canmean lowering your initial investment, so .uestion every up#

front deposit and ask for relief wherever possibleSu6e :oot4e

In the last chapter I recommended you do a process plan todetermine the most eTcient way to set up your shop 'hisplan can also be a great help in deciding how much space youneed 'he si*e of your tools, the space re.uired formaneuvering around them, storage, %nishing, oTce and

display areas, shipping and receiving, bathrooms and commonareas must be considered If you can, err slightly on the plusside when picking an ideal number

In the real world, you will seldom %nd an ideal space for rent8dd#si*e buildings or spaces may mean that some of thefootage you pay for is not as useful as you(d like 'ry tonegotiate a lower rate for wasted space if possible ;eep in

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mind that you may want more space in the future withoutincurring the ma$or e"pense and work of a move It might becheaper in the long run to take a larger space now

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Roo< :o6 o;e ndo6 d/s=98 6es

Hor many reasons your oTce space must be physically

separate from your shop Qoor )oise, dust and distractions areeliminated when you can use an alcove or build a room thatcan be sealed o from the shop 'his also helps to keep theoTce functions separate from the shop functions, allowingyou to change hats and focus on the task at hand withoutdistraction

If your customers will be coming to you, you(ll need an area to

meet them and go over your work and3 or a display area orgallery space If your customers rarely come to your shop, youmay be able to combine a design or drafting area with ameeting room -alleries and stores re.uire retail#type spacethat you will probably want to keep separate from the noisypro"imity of a shop Focation is a primary consideration whenpicking a retail or walk#in space for marketing your work Fow#traTc locations re.uire large amounts of advertising to pull in

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