I am rapidly growing tired of my current job. I have been thinking about joining the ranks of the full time woodworkers. For the last 5 years or so I have been doing a few paying jobs a year. The work ranges from small tables to china cabinets. Unfortunately my client base consists of about 5 people. Before I quit my mechanical engineering position I would like to have a larger client base and better paying jobs. So my questions are as follows:
1. How do I build my client base? I plan on getting a web site together and posting an ad in my local yellow pages. Should I make cold calls to interior designers and home builders?
2. What types of jobs should I be looking for? I most enjoy doing one off pieces of high end furniture but trying to persuade someone that my 4,500 dollar armoire is 3 times better than the 1,500 dollar one at the local Particleboards-R-Us store can be tough. My thoughts are to establish a high end furniture side and take on any cabinet work that comes along, eventually separating the two and hire some folks to do the cabinet side. My thinking here is that people are willing to spend more money if they can roll it into a 30 year mortgage.
3. Are employees worth it? Meaning will they help my bottom line assuming the business is plentiful. At what point does additional staff become necessary?
4. Has it been hard during the recent economic downturn?
I keep reading the stories in “Custom Woodworking Business” about the small companies that are doing pretty good. That is my goal. In addition to answers to the above questions I would appreciate any feed back on how to make this a successful venture.
Thanks,
Tom
Replies
I have no experience making the kind of furniture you're talking about, but I do have experience with running a business with 1-7 employees. Each employee you bring in is going to cost you in money, in time, and at least occasionally aggravation. My guess is that for each employee you have, you'll do less woodworking yourself, because you become that much more a manager rather than a craftsman or artisan.
If you want to build your business around one-off pieces, I'm not sure why you would want employees to spoil the fun :-) They may not work to your standards, and you have to manage them. A good bookeeper or CPA is the main thing you need, so you don't have to go home from the shop and sweat over books several time a week.
If you went more into production work or cabinetry, that's where the employees would be worthwhile, IMHO. And, don't underestimate the cost of an employee: wages, Federal taxes (no small chunk); worker's compensation (huge, probably, when they're working with power tools), the list goes on.
forestgirl -- you can take the girl out of the forest, but you can't take the forest out of the girl ;-)
Forrest Girl,
I guess my thinking was that perhaps I could eventually do a little of both fields. If the cabinet side picks up enough I could hire some people to help with that end and take care of the furniture end myself. I dont want rule out cabinet work because I assume that the cabinet business is a little more lucrative. Based on my past experiences I can make my shop rate plus some when I do cabinet work. Unfortunately I rarely make rate when doing furniture. Maybe I enjoy building furniture more so I dont push the work out as fast or my bidding is skewed. I do tend to look at my bids on furniture and think that they are too high so I start rationalizing with myself that maybe I could do this operation in only 5 hours instead of the 10 hours that I know it will take me.
Thanks for the response ,
Tom
Tom,
I have been thinking the same way you are thinking, but my work has been very small and not profitable. I am nearing retirement age and I would like to work at something I enjoy for a change. I love woodworking, but I haven't had the strength to make the jump.
One of the most important factors is where do you live and is there a market in your area. I don't live in an area that has a big market, but if I did, I would find another woodworker that has been successful and talk to him with the possibility of helping or working together on a large project. I wish you luck!! I wish that I had done this 20 years ago.
Regards,
Bob
Bob,
I live in central NC. With Chapel Hill and Raleigh close by I believe that there is a market for custom furniture. Million dollar neighborhoods are going up everywhere. I wish you luck if you to make this career jump. I am 100% certain I want to do it but mustering up the courage to drop steady job with paid holidays, 401K, health benefits and most importantly a machine shop at my disposal may be difficult.
Tom
There is an excellent book on starting out as a woodworker called "The Woodworkers Marketing Guide" by Martin Edic
He has written two on the subject, one in more detail than the other. well worth a read.
good luck
Wood Hoon
Thanks, I will check it out.
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