Where to start a carpentry business
A carpentry workshop has a low profitability of 25-30%, so the probability of destroying it is negligible. Thanks to this, the likelihood of bankruptcy or employment at a loss is significantly reduced.
Important: if there is a high level of demand, you should not expect quick income. The minimum payback period varies from 8 to 10 months.
To get started, you must go through several mandatory steps:
Register your business with the tax authority.- Select and rent a premises for organizing a workshop - if it is available, the initial costs are reduced.
- Purchase the necessary equipment and raw materials.
- Organize a promotional event.
- Find sales points.
These steps are fundamental, without which it is impossible to start work.
What is needed to open a carpentry
To start such a business you need to be a good carpenter yourself or find such a specialist. The workshop must be properly organized:
- a separate place for storing materials and products;
- availability of the necessary equipment;
- comfortable workplaces for craftsmen;
- high-quality lighting;
- and etc.
You also need to understand that even with high demand for products, immediate profits should not be expected. All investments will pay off no earlier than in 8-10 months.
Moreover, you need to know that a carpentry workshop is a business with a minimum profitability of 25% to 35%. To destroy such a business you need to try hard. Therefore, you should not be afraid of bankruptcy or working at a loss.
There are 6 steps to start this business.
Step 1. Registering a business with the tax office.
Step 2. Search and rent space for a workshop.
Step 3. Purchase of tools and equipment.
Step 4. Purchasing materials.
Step 5. Organizing an advertising campaign.
Step 6. Search for buyers of manufactured products.
All the steps presented are a short version of the main points of the business plan. Let's look at each in detail.
Advantages and disadvantages of the workshop
The main advantages of opening a carpentry shop include:
- annually increasing demand for high-quality wooden products
- if desired, you can manufacture wooden products with a unique design, which entails an increase in cost
- minimum initial costs – from 100 thousand rubles
- payback
Additionally, there is a low level of competition, in contrast to other types of business with small financial turnover.
Negative side of the business:
- direct dependence of reputation on the quality of manufactured products, i.e. on the professionalism of workers
- high competition – not in all regions
- difficulties in the first months of work with finding sales points
The main task of the carpentry business is to create a positive reputation in the market from the first orders. Consumers want to purchase furniture with a long service life.
It is important to try to produce goods in accordance with customer requirements, otherwise sales volumes will decrease significantly.
Choosing your concept
Where to start your business? At the first stage of organizing a business idea, you should not spread yourself thin and try to produce various interior items, furniture and building materials at the same time. Equipment costs at the first stage are small, so it is important to think through the specifics of your business in advance.
Today wooden furniture is in great demand. As an additional line, it is recommended to produce furniture and interior items for the bathhouse. The zest and originality of the products are important, and this will be easier to achieve if you choose a narrow focus.
Machines for working with wood are also selected depending on the specifics of the workshop. It is not recommended to buy an expensive universal line before the business reaches profitability.
Having chosen a line for your production, you should come up with an original name. The name should speak about the specifics of your wooden products. At the same time, the name should be easy to hear and well remembered. Example: in the city of Yoshkar-Ola, a carpentry workshop was opened for the manufacture of furniture and items for the bath with the name “Bath Things”. The buyer already knows from the name what the manufacturer does and what products can be purchased.
Whether it is profitable to start a business in a big city, where competition is great, also depends on the originality of the product. It is possible to produce products from a special type of wood, for example from bog oak. Since few people work with this type of wood, you will have your own clients, and you can make good money from them.
Points of a carpentry business plan
Before you begin purchasing the required equipment and recruiting personnel, it is important to draw up a business plan that describes in detail:
- market analysis
- sales prospects for finished products
- projected costs and profits
Video on how to make money doing carpentry:
Having calculated the preliminary initial amount of costs, you can begin to register your business.
How to open a workshop: business plan for a carpentry workshop
First of all, draw up a business plan for a carpentry workshop. It should cover production, organizational, financial, and marketing issues. Analyze who buys joinery products in your region, what is in demand, and how competitors work. Collect as much information as possible, determine the feasibility and required scale of opening this type of business. Write down a production, financial and marketing plan. Then you can start implementing the idea.
