Seems like a few more discussions on woodworking for a living and being in business have been stirring so I thought I’d open the topic up and see if we can dispel some rumors and learn about what it takes to run your own shop.
If you will be dependent on the local economy to get your jobs from , then make sure you place yourself in an area that can support you and all the others that may do similar work . If all the cabinet shops are slow or closed , prolly not a good idea .
I put my self in podunk S.Oregon about 30 years ago , a timber economy that went to the Owls , this has always been a tough area to earn a living except for real estate a while back . Any major area North or South I could have been teaching by now ,, but I still build furniture and cabinets.
Being a skilled maker is an important element for certain but we also need business smarts that can be learned on the job but a class at the local Community college SBA business course couldn’t hurt .
Having business skills and being a fine maker will get you pretty far but people skills and the art of communication are by far the most important we need on a daily basis . We need to clearly explain and show our concepts visually and verbally to our potential clients . The exact scope of the work to be completed needs to be clearly defined and agreed upon.
Most problems arise from mis or lack of understanding or communication from us to the clients.
Your overhead costs and true costs may be a surprise when you know how to figure them out , most guys really don’t know the difference between labor and profit .
Doing business today compared to 30 years ago has changed somewhat for sure but it all boils down to WHO not WHAT .
regards from Oregon dusty
Replies
Dusty,
I will also add that it really helps to find a niche - something that if a client wants, you are the only one they can come to for. I think that this is easier with more artistic woodwork like carvings and sculptures, but can also be accomplished with furniture, though perhaps more readily copied. Along the same lines - know your competition. But don't worry about what they are doing.
My business has been running for about nine months, and it was quite busy until a couple weeks ago - now I have just work pending for one customer (three pieces). This is really all the work I need for the time being (I only have room for so much woodwork in my shop at the same time) and the phone isn't ringing. I don't know whether to attribute this to the fact that my business is relatively new and the word has not yet been spread far or to the economy.
Out of curiousity, may I ask what you overhead is? Mine is quite low because renting shop space is included in my room and board.
The problems that don't arise from poor communication with clients are from within - how do I solve this problem?
and www.flairwoodwork.spaces.live.com)
- Success is not the key to happiness. Happiness is the key to success. If you love what you are doing, you will be successful. - Albert Schweitzer
Hey Chris ,
Finding a niche or area to specialize in is good but don't limit yourself to only doing ( the work you want to do ) I did furniture and case work all along .
I found myself building all kinds of things with cabinet materials some were not cabinets but had some utility .You can't shop around for a low bid on a Picasso or a Maloof but for a nice kitchen or a custom piece it is a different story .
Having clients want you to be the one that makes whatever it is they want is key to the referral trade and will hopefully keep you afloat even in lean times .
Know your market and your own stuff , the market prices will tell you what the competition is getting. Use your energy towards your business .
Don't worry too much about the phone not ringing , work will come in cycles rarely steady and often an individual can find themselves over committed and under pressure , been there and hate it but do well under it .
Overhead is a topic of great importance for an individual to really know how much it costs per hour to operate a legal business here in Oregon :
You fill the line items in with your own set of numbers where applicable .
Local Business lic
State Builders lic
Bond
General Liability / completed products insurance
Commercial Van insurance
Gas and vehicle maintenance
Business Phone line
Yellow page listing in 2 books
Health insurance for family of 3
Shop rent
Shop supplies that get used on most all jobs get charged to overhead
abrasives , adhesives , fasteners . slides and hinges and such get charged to each job.
Office supplies / invoices / cards / stamps / stationary / fax paper
Shop electric bill
to name a few
So say you want to earn $1000 a week in shop wages based on a 40 hour week and say the above monthly line items come to $1250 a month if you would end up with an hourly overhead of about $32 an hour based on 4 1/3 weeks in a month .
Now the $1000 or 25 dollars an hour per week are wages and do not include profit at this point .Profit is over and above and beyond wages and the cost factors mentioned above .
modestly speaking about 10% of your time will be spent unproductive shopwise . Take this say 4 hours a week and charge it to your overhead as well .
This is a quick guide and a reality check for any one entering in business or already in .
Chris as far as solutions to problems within ,,, you alone knows what is best for yourself .
regards dusty , big QSWO countertop almost done
Since I sold my business I now spend a lot of time consulting to contracting businesses (even more so with this horrible economy) and the universal truth is a good businessman doing contracting will always be more successful than a great craftsman doing business.
Yup.You can hire hammers.Business knowledge is expensive; you pay the tuition one way or the other. You pay it to get into the class, or you pay it in losses, but learning business is expensive.
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