How To Start A Woodworking Side Hustle Now

Woodworking is one of the high-paying side hustles these days. So it's no surprise that most people are getting into the business lately. However, not everyone is successful in the woodworking business. This is because it is not as simple as it appears. This article explains how you can start a woodworking side hustle now.

There are procedures to follow to succeed in the woodworking business. These are the secrets of successful woodworkers; they started small and have become millionaires. Continue reading to learn how to start a woodworking side hustle right away.

What is Woodworking?

Woodworking is a skilled art form. It is simply the act of creating various artworks out of wood. It could be artifacts, wooden doors, bans, houses, or anything else.

Woodworking isn't as difficult as the definition implies. Instead, the process is divided into skill levels, allowing you to progress and create more complex projects as your skills improve.

Typically, becoming a skilled woodworker takes time, but the more you improve, the more you earn.

Having the proper woodworking skills will set you apart.

You can land jobs repairing wooden items like dressers, tables, and chairs by honing your woodworking skills.

Then you can progress to more complex projects, such as creating a ban. Aside from the necessary skills and training, you'll need the right tools to start a woodworking business.

The tools you need for woodworking are primarily determined by the projects you intend to undertake. Still, some essentials include a hammer, a saw, a tape measure, a screw gun, chisels, a combination square, and a sander.

You can make $1,000s with your woodworking side hustle if you get the proper training and tools. You can start learning everything you need to know to start a woodworking business today and join those making a lot of money from it.

Related: How to Start an Ecommerce Business in 9 Steps

Types of Woodworking

Woodworking can be done in various ways, each with its own set of tools and techniques. However, the three main categories are carpentry, joinery, and furniture making.

1) Woodworking

The practice of cutting and shaping wood into structures and objects is known as carpentry. It is frequently used in the construction of structures and furniture. Carpenters make a variety of objects with saws, planes, chisels, and other hand tools.

2) Carpentry

Joinery is the practice of putting together wood pieces to make a larger structure. Dovetailing, mortise and tenon, and doweling are examples of joinery techniques. Joinery is frequently used in the construction of furniture and cabinets.

3) Furniture Making

Furniture making is designing and creating furniture for homes and businesses. Saws, planes, chisels, routers, and hammers are among the tools and techniques furniture makers use to create pieces of furniture.

4) Digital Woodworking

There are digital woodworking machines that have been around for quite some time. If you enjoy woodworking as a hobby and can afford it, purchase one of them, like the CNC machine.

Simply enter your designs into a computer and let the CNC machines smooth out all of the edges of the wood to give you exactly what you want.

Why Go into the Woodworking Business?

According to IBISWorld, making wood products is a $6 billion business; the top 50 companies only control about 30% of the market.

This means that small woodworking businesses still have $4.2 billion to spend, so why not enter this opportunity to start making money with woodworking businesses?

Globe News Wire says that the construction industry will grow by about 2.2% for the foreseeable future. Still, labor and lumber shortages could make it hard for people to run a woodworking business.

This means that people who want to know how to start a woodworking business should plan for higher-than-usual inflation until the pandemics stop disrupting the woodworking supply chain.

How To Start A Woodworking Side Hustle

1. Improve On Your Woodworking Skills

Improving your skills is the first step toward success in your woodworking side hustle.

Then, you can use the Woodworkers Guild of America to improve your woodworking abilities. They provide resources for people wanting to learn the fundamentals or improve their skill set.

Furthermore, look for areas where you can improve. Perfection will bring you more gigs and increase and retain your customer base. To expand your knowledge, look for and attend woodworker workshops and classes.

2. Decide On The Woodworking Business

The next step to starting a woodworking side hustle is planning on the niche you intend to focus on.

There are different categories of woodworking niches, and finding the right one will make it easier for you.

Examples of woodworking businesses to take include:

- Custom Furniture Business - Making ornately designed furniture.

- Cabinetry Business - Creating home storage spaces

- Building artistic trinkets, jewelry, and other items out of wood is a craft business.

- Carpentry Business - Building house frames, windows, and doors following local codes.

- Finishing Work Business - Working on house floorboards, baseboards, and other decorative parts.

- Woodworking Incubator – This is basically a woodworking incubator. It offers tools and wood to other artists needing a workspace to start a woodworking business. If your area lacks a woodworking incubator, this could be a great opportunity for small business owners.

You can find other ideas for starting a small woodworking business on Woodworking Blogs.

The type of woodworking niche to focus on should also depend on the most highly sort after in your area.

Also, choose the one you are most familiar with or skillful with and let people know you are a jack of trades in that aspect.

3. Create Your Woodworking Business Plan

A business without planning is bound to fail, as is a woodworking business. So to succeed in your woodworking trade, you'll need to create a realistic, effective, and viable plan for your aspirations.

Some of the important items to consider in your woodworking business plan include the following:

- The amount to invest.

- What is your target market, and how to reach them?

- Source of capital, funding, or investment.

- Your working hours.

- The service to render.

Putting notes on these woodwork business plan pointers will help make the business easier and keep you motivated.

Your Woodworking Target Market

Your target market consists of well-to-do adults aged 30-60 who may be interested in smaller household wood pieces such as rocking chairs, dining table sets, or ornate boxes and keepsakes.

Furthermore, once you've identified and researched your target market, you can create print and digital advertising materials tailored to that market (and display them in spaces where that market is likely to spend time).

Reaching this target market would be aided by Facebook ads (digital) and placing flyers near office buildings or in industry-related publications (print).

If you build a strong enough client base, your business will benefit in the long run.

Figure out your Funding

You should determine the funding you require for your woodworking business based on your budget.

Still, you can learn how to start a woodworking business without much financing, depending on the type of woodworking business you want to start with.

When seeking funding for a woodworking business, most investors will want to know how you plan to cover at least the startup costs and the first year's operating expenses.

You can accomplish this by combining any of the following methods:

- Personal funds/personal assets - The most common way entrepreneurs start a business.

- A loan from family or friends - If your family can afford to help and believes in your business plan, they might be willing to lend you money.

- Funding from a business partner - A business partner can assist with funding but will receive a percentage of the profits. Furthermore, having multiple business owners may complicate decision-making.

- Government programs - Government grants are frequently available for minorities, women, and economically disadvantaged areas. Check the SBA website to see if you are eligible.

- Credit cards - Be cautious due to high-interest rates, but if you can pay off the balance each month, this could be an excellent funding source.

●     Crowdfunding -

Crowdfunding entails pitching your idea and obtaining funding from retail investors.

- Home equity loan - Borrowing against the equity in your home is another option for financing a business, particularly if current interest rates are lower than your current interest rate.

- Self-funding - You may have to self-fund, as most entrepreneurs do. Sef funding can be accomplished by dipping into savings or a 401(K), reaching out to family and friends, or, as in John's case, by making ongoing investments and working hard to accumulate the funds.

- Rollover for new businesses (ROBS)

You can always approach investors or apply for a small business loan, but remember that most woodworks grew into a multi-million dollar shop entirely on its own.

So, what is the bottom line of funding your woodwork business?

There is no right or wrong way to obtain funds to start a woodworking business - simply get them funds!

There are a lot comprehensive business funding guide that contains a wealth of useful information on obtaining funds when starting a business.

You can also start one of these highest-paying online jobs to build your capital. The capital I used for my first business came from an online job income.

4. Pick a Business Name

Even though it's just a side hustle, your woodworking business needs a name to enable customers easier identify it more.

When picking a name, consider the one that highlights your chosen niche. Also, choose one that is easy to remember and spell.

In addition, be intentional about the name, and make sure it contains the phrase "woodwork," for example, A&B furniture and craft woodwork. Remember to keep it simple and in alignment with the service you render.

Find a Niche

Finding a niche that works for you is the key to small woodworking business owners' operational success.

There's a great niche for any shop, whether it's a product type (e.g., chairs, high-end frames, birdhouses, tables, keepsakes) or a skill set (e.g., restoration and repairs because many woodworkers turn these jobs down).

Picking Your Woodworking Business Name

When choosing a name for your business, make sure it describes what it does (e.g., woodworking, woodwork, etc.), but don't be too specific.

On the other hand, you don't want to limit your chances of growth by choosing a name that is too specific.

If you make custom furniture out of wood, you might want to include the word "furniture" in the name. You might want to add the word "Craft" in the name if you make artistic wood items.

Don't choose a name that is hard to spell or hard to say. Instead, keep it as short and simple as you can.

No matter what name you choose for your woodworking business, ensure it shows what your business is all about and fits with the brand you're trying to build.

Register Your chosen Domain Name.

Always choose a .com when registering a domain name for your business.

GoDaddy, Bluehost, and other best web hosting service providers are great places to quickly and easily register a .com domain name. If that isn't enough,  check other sites like Hostgator or Namecheap to show you what's available right now!

Once you've chosen a name for your business, registered a domain, and asked people who will tell you the truth about it, you should register it with the government.

5. Find a Location to Start Your Woodworking Business

Your woodworking business can be done from your home or on-site. But you should find the best location where you can work without distractions.

For example, a woodwork business like craft requires a workshop, while on-demand services like fixing and maintenance can easily be done from home.

Your location matters. Ensure the place has good motorable roads and is strategic so buyers can easily see you and access your business place and products.

6. Make your Woodworking Business Legal

When starting a business, you must take care of the legal stuff. This is not fun, but if you want your business to take off, you have to do it!

When starting a woodworking business, you need to make sure to follow all laws that relate to carrying out the business. Operating legally will save you fines and stress.  

Depending on the type of business you start, you may work in other people's homes or have employees who could get hurt while working with wood, power tools, and other tools.

Choose the type of Legal structure you want

You can make your legal structure, but you should work with an accountant, lawyer, tax expert, or government official for the best results.

Most businesses are set up as sole proprietorships, partnerships, limited liability companies (LLCs), or corporations. Our friends at Better Legal can help you set up the legal structure of your business.

Types of Woodworking Business

A basic understanding of different types of woodworking businesses will help you choose the right type according to your capital and wants.

- Sole proprietorship

When your woodwork business is a sole proprietorship, you get to keep all of the profit (i.e., pass-through taxation), but you are also responsible for all possible risks and debts.

Because of this, if you want to start a woodworking business, a sole proprietorship may not be the way to go unless you are ready to shoulder all the risks and have enough capital not to include another person.

If someone gets hurt, it will affect your personal finances because they are tied to your business finances. For example, if something goes wrong while someone is working with wood, you could lose everything. It just doesn't pay off.

- Partnership

A partnership is a business run on the fly by two or more people. Unlike a sole proprietorship, you and your partner are jointly responsible for anything wrong with the business.

If you partner with someone, maybe a friend or family member, for a woodwork business, both of you will share the profit, risks, and losses for the business. You can also put heads together to generate business ideas and plans.

A partnership is good when one partner has better skills or more money. The synergy will be important for business because each partner is contributing something lacking in the other partner.

You can have the skills but less capital and look for a partner with enough capital. A partner may provide a location while you provide other skills. Partnerships are advisable for a woodworking business.

●     Limited Liability Company

An LLC (Limited Liability Corporation) is a legal business entity that protects the business owner from personal liability while letting taxation go through the business.

LLCs can have one or more owners, making them a great way for woodworkers to start their own businesses.

Most LLCs need an operating agreement, especially if the business has more than one owner.

If you want to start a woodworking business, it is advisable to set it up as an LLC because of the higher risk of product liability, injuries on the job, and property damage.

- Corporation

Setting up a corporation gives you limited protection from personal liability and tax benefits. But corporations have to follow more rules about how to run than LLCs do.

They are also taxed twice, meaning you must pay both income and corporate taxes.

Setting up your woodwork as a corporation is not advisable unless you want to start a very big woodworking business that may cut across nations.

Get the Necessary Business Licenses, Permits, Tax Forms, and Insurance

Find out if your woodworking business needs any business licenses, tax forms, or permits to run legally, no matter what legal structure you choose.

This is to make sure you are running your woodworking business legally.

Some of the most important things a woodworking business needs are:

- Sales Tax Permit

- Unemployment Insurance

- Liability insurance for everything

●    Sales Tax Permit

Most states have a sales tax, and you must follow their words. This blog isn't the place to discuss the permits for all 50 states, but Avalara has a guide on Sales Taxes. Look at it.

Some states will only charge tax on the material costs, while some will charge tax on the wood products and the revenue from labor.

Ensure you know how sales tax works in your area before starting your business, so you don't pay too little or too much.

●    Unemployment Insurance

When a worker loses their job, unemployment insurance helps protect them.

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