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How To Start Carpentry Business From Scratch

How To Start Carpentry Business - Background Info:

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With every up and down of the economy, there is never a shortage of cottage industries, the home improvement sector included. Starting a home-based carpentry business can be an appealing option with low overhead, no shortage of work and low stress.

Carpentry jobs are divided into two areas: rough (or structural) and finish (or detail). Rough work is framework or roofing or other construction that becomes the skeleton of the building.

When the building is complete, the internal and external parts of the building cover the rough work. Finish carpentry, however, includes detailed work such as wall trim or cabinets. Detail and precision are important in this type of construction.

The first thing that you need to notice when you consider carpentry work is that this is an area where you need a very good physical strength. Further, it is a must that you have proper training and qualifications in carpentry work for some period of time.

Lack of training would result in low quality final output and this would significantly affect the competitiveness of your products in the market place. Therefore, if you are an individual with lack of knowledge and training, it would be a very good idea a follow a course on carpentry before you enter the business. A technical college would be the ideal place for training and education.

Apprenticeships usually last between three and four years, so look for a company that can provide you with a variety of experiences. Larger companies are often better able to do this than smaller ones. After the apprenticeship is over, you will receive a certificate indicating that you are now a journeyman carpenter.

If you want to diversify even further, consider getting additional experience that can land you electrician jobs. Some of the training is very similar to that of a carpenter. Remember that the more skills you have, the more job opportunities you will get.

How To Start Carpentry Business - Tasks And Skills Needed:

Business Specific Tasks:

If you are planning to do all the business tasks or hiring or subcontracting tasks, here's a list of tasks that need to be attended to when it comes to the business side of running a carpentry business:

  • Bookkeeping
  • Advertising/Marketing
  • Scheduling
  • Computer literacy
  • Answering machine/fax/cellphone
  • Basic analytical and mathematical skills
  • Organizational skills
  • Ability to work with others well

Industry Specific Tasks:

Same as above if you plan to do everything yourself or get help, here are some of the tasks necessary to operate a carpentry business:

  •  Knowledge of remodeling trades and residential construction techniques, procedures, tools, equipment, safety and materials
  • Proficiency in trim work, drilling and setting hardware for doors and windows, setting windows, stair layouts, etc.
  • Ability to read blueprints
  • Ability to give and receive verbal and written instruction
  • Ability to manage paperwork such as employee timesheets, etc.
  • Ability to envision all necessary steps to complete the task at hand
  • Ability to perform physically demanding tasks such as crawling for long distances and climbing extended ladders

How To Start Carpentry Business Approximate Daily Hours Needed:

Image of a women workingGeneral Hours of Operation: - When your business is open - Depending on your location, this job typically has longer hours that span from early in the morning to early evening and, often, weekends.

Depending on the niche you're filling or what aspect of carpentry work you are doing, you may be required to be on the premises with other work crews, such as with new home development jobs very early in the morning.

Plan on spending at least an hour to load your truck, van, toolbox(s) and toolbelt with your tools, equipment, and supplies.

Hours Needed to Prepare - Before Opening and After Hours Activities - Plan to spend about an hour to load equipment and get to your destination. At the end of the day, plan on closer to two hours to clean and store equipment and supplies properly.

Number of Employees Needed To Run This Business:

Minimum Number of Employees -During the Start Up Phase: You can start this business yourself on a full- or part-time basis.

Number of Employees - Once Your Business is Up and Running Successfully:

  • Website maintenance
  • Crew
  • Equipment repair
  • Debris disposal
  • Inventory supply

Skilled Job Trades:

Here some of the skills necessary to run this type of business other than the necessary business skills:

  • Handle the necessary machinery and equipment adequately
  • Skilled and knowledgeable all types of carpentry tools
  • Building experience a plus
  • Calculate estimates
  • Remodeling
  • Building custom furniture, shelves, and cabinets from scratch
  • Wood lathing, tooling, and finishing

Licenses:

You will need to check with your local authorities regarding zoning laws and any required permits to operate at your home or at another residence. Contractors may also require certification should you decide to work with a subdivision.

For homeowners who are having you do remodeling and any business establishments, it's also preferable to be bonded and insured. Check with your local zoning commission to see what (if any) local ordinances there are for running a business in a residential zone.

Check with your homeowners insurance company to see if your current policy covers a home-based business. Also purchase umbrella liability insurance since you'll most likely be working at other people's houses and will need protection in case something goes terribly wrong. You may also have to register your business with your city or town, so make the rounds at town hall and visit the different offices that may concern your business.

To make your business legitimate, you will also need an LLC business license and tax i.d. number.

Perhaps the trickiest obstacle is bidding on home remodeling jobs. A balance of price fairness and profitability can be accomplished, one expert says, when you are getting about 25% of your bids accepted. Licensing requirements vary for home remodelers, so perform your due diligence. Some states have a cost limit before a contractor's license is mandated.

You'll find support, tips and other info through the National Association of the Remodeling Industry, Advisory Council on Historic Preservation, and Association of Restorers, among others.

Approximate Minimum Start up Cost:

Bare essential: - The average startup cost may vary form a couple hundred bucks if you already have a lot of the equipment to thousands of dollars if you want top-of-the-line equipment. You can start off small and expand your crew and equipment as you grow.

Minimal exposure - Doorhangers are especially effective as are small baggies filled with a rock and business card tossed onto home walkways or driveways, and a listing in the business section of your local newspaper. For these advertising methods, the approximate cost would be approximately $250.


Necessary Equipment Necessary to Run this Business:

Necessary Start-Up Equipment & Supplies:

  • Wood
  • Table saw
  • Band saw
  • Angled chop saw
  • Cordless drill with assorted bits
  • Hand-held circular saw
  • Tool beltImage of people looking at a construction job
  • Hammer
  • Nails
  • Screws
  • Level
  • Tape measure
  • Grease pencil
  • Work truck with ladder rack and utility box
  • Sledgehammer
  • Posthole digger
  • Cell phone

Supplementary Equipment: - Equipment or helpful products that you can acquire to once your business is off and running:

  • Trucks, vans
  • Cordless, gasoline-powered equipment
  • Composting containers
  • Dispatch units and service
  • Mobile tool unit
Monthly Expenses To Consider:
  • Answering and/or cell phone service
  • Warehouse or other storage rent
  • Wages
  • Equipment rental
  • Internet access
  • Certifications
  • Advertising/Marketing
  • Electricity
  • Water
  • Fuel

Special Requirements For This Business:

  • You may decide to obtain additional certification in lawn care, pesticide, and chemicals
  • You need to have a much higher skill level with mowing, trimming, pruning, and other basic landscaping techniques.  You can offer other services, like planting and fertilizing.
  • You'll also need to be in good shape.  Caring for lawns requires that you be able to work outside, often in hot temperatures, for long periods of time.  Keep in mind working outdoors, you're exposed to dust, noise, pests, weather, etc.
  • You may decide to take additional courses to obtain Journeyman Carpenter status and be able to charge more for your work.

Pros And Cons:

The Pros of Running a Carpentry Business:
  • A carpentry business is one of the easiest to start.
  • You have the advantage of being your own boss and setting your own hours.
  • You get to do creative work with wood.
  • You can easily develop a niche beyond being a 'handyman.'
  • This business is completely expandable.
  • If you have a mobile unit, you are free to travel to other areas to work.
  • You can combine carpentry skills easily with electrical skills to make more money.

The Cons of Running a Carpentry Business:

  • Work tends to slow down during the winter months.
  • Physically demanding: A lot of heavy lifting and skill running woodworking equipment is required.
  • If the economy slows, you may have a tough time keeping your business going.
  • The equipment that you work with could be potentially dangerous.

Type of Customers You Need to Attract:

Take a look around your community, and assess what niche would be the most successful and be the easiest to get going. You can always expand into more competitive niches once you have some business exposure and a client base that will help support you.

For example, starting a custom cabinet business in an area that has a few well established companies would be a tough venture. Verses, starting a company that specializes in replacing rotten window shutters in an area that has an abundance of old homes that need them and not many companies to service them.

New and older homeowners, replacing their "make-do"image of wood cupboards and cabinets are major customers to those in the carpentry industry.

Many people today are preferring to keep their existing homes and renovate them versus upgrading to a larger or newer home. This is where your carpentry skills help with outdoor woodwork framing, finishing, as well as incorporating innovative storage areas into places where none existed.

 

Carpentry Business Statistics:

Carpentry jobs follow the trends of the construction industry. In booming times, the need for carpenters is great. In lean times, the need is less so, but carpenters can concentrate on repair work – not just building projects. This means that even when the housing market slows down, work is still available in repairing and refurbishing buildings.

According to the U.S. Department of Labor's Bureau of Labor Statistics, employment for carpenters looks good for the next eight years as construction needs continue through attrition.

See the Bureau of Labor Statistics for up-to-date information.

Revenue:

Being a former carpenter or other tradesperson helps -- particularly if you plan on handling the repairs and renovations -- but isn't mandatory if you plan on home remodeling consulting only.

Organizational skills and professional demeanor can keep your home remodeling business humming at a minimum of $50 an hour. The construction trade in general is expected to expand by 10% through 2016, according to the Bureau of Labor Statistics' Occupational Outlook Handbook.

Resources:

Industry-Specific Websites:

Carpentry Pages

Bureau of Labor

Courses:

Carpentry Trade Schools

ULinks

Earn My Degree in Carpentry

E-Learners

Equipment:

Eagle

Old House Web

Supplies:

Woodworking Online

WoodCraft Guide

Forums:

Do It Yourself

Contractor Talk

DIY Chatroom

Woodworking Talk

 

Associations:

Associated General Contractors of America

American Institute of Constructors

Confederation of International Contractors' Associations

Books:

How to Start a Home-Based Carpentry Business

Carpentry Super Tips

Software:

InterStellar Solutions

Other:

Carpentry and Career Guide/Listings

 

Related Businesses:

  • Interior Landscaping Service
  • Safe Installations
  • Drapery Studio
  • Skylight Installations
  • Carpet Installations
  • Garage Organizers
  • Closet Organizers
  • Wood Clothes Hangers
  • Unfinished Furniture Store
  • Attic Ventilation And Insulation

12 Steps To Starting A Carpentry Business

iamge of a woodworking shop

Before You consider a Carpentry Business, see 16 Questions to Consider Before Starting a Business

1. Ensure A Carpentry Business is for You!

You have a choice as to what business you're going to start, so start one that's right for you. Getting into the right business can dramatically increase your success. Get into the wrong business and your success rate drops. Read Five Secrets to Getting into the Right Business for more information.

2. Understand How A Carpentry Business Operates

How can you run a Carpentry Business if you don't know much about the business? What if you run into an issue that you can't or won't deal with? Then what? You're in a business that you hate working in and that's a problem. See Understand How a Business Operates for more information.

3. Make Sure There Is a Profitable Market for Your Business

What's the use of starting a Carpentry Business that is not profitable? You'll be putting all your effort in something that can't support itself or you.  There are a variety of issues when it comes to setting the stage for profitability. See Tips for Identifying a Profitable Market.

4. Create a Business Plan For Your Carpentry Business

A business plan is a must for any size business because it helps you stay focused, see the big picture, and get funding. It's something that you create when you start your business and then update as your Carpentry Business evolves.  Read our free online guide on How to Write a Business Plan

5. Set up Your Business Team

Setting up your team includes finding the right employees and professionals that will help you run your Carpentry Business. 

You don't need to employ everyone you work with, but you will need a team of people you can depend on, which could consist of a lawyer, accountant, banker, and consultant, as well as professionals in your industry. See Creating a Business Team for more on this subject.

6. Get a Small Business Loan if You Don't Have the Money to Start

If you don't have the money to get started, then you'll need the necessary financing or you won't have the opportunity to start your Carpentry Business. This can be done as a small business loan, a personal loan, or other small business financing options.

For more on financing your Carpentry Business see our guide on Financing Your Small Business

7. Legalize Your Carpentry Business

In order to run your Carpentry Business legally you'll need to abide by government rules and regulations on the state and local level.

You'll need to do your research, determine what type of business (sole proprietorship, corporation LLC, etc.) to register, create and register your business name, and register your Carpentry Business with state and local authorities.

To go through the business registration process, see Chapter 6: Making Your Business Legitimate, starting with 6 Easy Steps to a Good Business Name.

8. Get Equipment for Your Carpentry Business

In order to run your Carpentry Business successfully and efficiently you'll need to acquire the right type of equipment. How can you run an online business without a computer? You can't! This is an important issue. See Acquiring Equipment for more on this topic.

9. Set up Your Accounting System

Running a Carpentry Business requires you to collect taxes, and report your earnings. So it's best to set up an accounting system in before you start your Carpentry Business. See Setting Up Your Accounting System for more on this topic.

10. Acquire Customers for your Carpentry Business

In order to exist, every business needs customers. Getting customers is one thing you'll need to be good at. If you can master the tasks of getting customers, it's just like turning on a cash machine almost any time you want. See  Acquiring Customers for more on this topic

11. Prepare To Accept Money

You'll need a way to accept money, you can't depend just on cash or checks. You'll need to accept plastic: Visa, MasterCard, and American Express. To do that you'll need to apply for a merchant account. See Setting Up a Merchant Account for more on this topic.

12. Insure Your Carpentry Business

Make sure you have the proper insurance for your Carpentry Business. Without the right coverage you could lose everything you've worked for. For tips on insuring your Carpentry Business, see our free online guide:  Insuring Your Small Business.

Carpentry Business Issues:

Estimating Startup Costs - Find out if you're forgetting something

Business Location - Choosing A suitable one For Your Carpentry Business

Build or Buy A Business? - Buying an existing Carpentry Business

Business Builders For Your Carpentry Business:

Starting A Business - Free Online Guide

Business cards for Your Carpentry Business

Business Plan for Your Carpentry Business

Business Insurance for Your Carpentry Business

Small Business Loans: Finance Your Carpentry Business

Small Business Marketing For Your Carpentry Business

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