Greetings all. Welcome to the forum.

Here we will talk about the ins and outs of going into business for yourself in the woodworking lines.

Anything in the area of this is fair game here, from design, scheduling, monetary issues, shop equipment, and so on is welcome here.

So, if you are a pro who has gone through the switch from hobbyist, a hobbyist who wants to go pro, or just have an interest in the topic, don't just sit there, post something! Let's get this forum rolling.

Paul
the little moderator guy

I think going from hobbyist to pro or whatever, people really need to get a grip on reality and do a business plan, take a real COLD hard look at what it takes.

On the average it takes a business around 4 read it FOUR years to turn a profit.

So I am really GLAD this Forum is off and running, I have no doubt it can and will be a very lively topic. And what better place to gather info and ideas then the 207

So does this mean your bringing the M&M's Tiny?

But the question still remains: "Where or HOW do I start"

Marry well

Don't ask me, I'm just here to moderate. A good moderator stays out of it until things either get out of order or need a touch in the tight direction. So far nobody has gotten out of line and there isn't enough direction to have to touch.

Marrying well is the key to life, not just being successful in business.

Paul
the little guy

I think looking back I would of saved a bit more working capital for the day to day running of the business. I also question converting one of our old(circa 1600) barns into a workshop, the money spent on the conversion would have helped to buy more labour saving machinery. But clients love it when they visit, gives them a romantic feel of where the furniture is produced.
I'm glad I didn't borrow loads to set up either, my overheads aren't as high as my competitors, which means I win more work. like today for example, I knew I was against three of my competitors for a much coveted fitted wardrobe job(there's ten to do plus various pieces of furniture), the clients phoned me today to say I'd won the commission because I was 1.5k keener. I will still be making my normal profit, but because my overhead was less I got the job.

There's two important points there, the lack of debt and the overhead control.

Thanks for the input.

Paul
the little guy

Another important point is, Have enough put away to last 6 to 8 months. A just in case slush fund, just incase the drought hits.

Richard that is savy advice!
I for one have an ebb and flow of money in my buisness.
Most of the time I maintain pretty well but I don't have 6 to 8 mos to fall back on....
Maybe 2ish.

I kinda wing it most of the time!! No buisness plan just dumb luck mostly!

There is always food on the table and the lights are on!
Nick

Thanks Nick, I was on the board of directors of a credit union for 7 years, my function mainly among other things was teaching people debt control, getting them out of debt and helping with business plans. My first question to someone who wanted a loan for a business was "What is your PLAN" which usually resulted in the deer in the headlight look

How well I know that deer in the headlights look. I've seen it so often during my time as a financial planner. Usually when you asl people about any kind of planning ahead.

Yes, a proper business plan is mandatory, not only for a start up business, but for established businesses as well. You should sit down once a year and figure out how well your year went according to your plan and to set a new plan in place for the coming year. Things to consider in the annual planning session include:
What sold best?
What sold worst/
What items that sold well do I make the most profit on?
What markets do I get most of my income from?
What markets have I not yet tried to get into?
How can I increase my cash flow without cutting into existing business?

And so on.

This is one of those habits of successful businesses you hear about in the blurbs for seminars and books on "how to succeed in business without really trying:."

There is an old saying that goes "Failing to plan is planning to fail." Trite maybe, but very true. Without a plan, a business is like a boat without a rudder. It's got no direction.

Paul
the little guy

Well said Tiny,

Lets not forget a good look at demographics!

Interesting topic Tiny. I'm on the other side having retired from pro woodworking to pursue completely different avenues in hobby woodworking, but I'll keep an eye on your forum.

Paul M

Hi Paul.

Thanks for dropping in. I'm sure some of your sage experience will be of great assistance to many of those here who wish to follow in your footsteps.

Paul E
the little guy

Hey Paul, welcome to the 207, I have no doubt you have plenty of very valuable input for all to read.

Tiny, thanks for getting this going. It's going to be a very good and timely topic.

Hi efmrrt.

I figure I've gotten a lot from my membership here, so if I can pay it back in some small way, why not? It's part of the responsibility we owe to those to come after us to share what we have learned lest that knowledge die with us.

I am more than happy and proud to take part in this manner.

Paul
the little guy

Here is a thought or three everyone needs to address long before deciding on going "PRO"

1. How good are you with customers?
2. How good are you at selling yourself?
3. How good are you with selling your work?
4. Can you handle rejection?
5. How do you handle the customer that you just built a $3,000.00 cabinet for,
deliver it and they say "ITs not what I expected or what you led me to believe
it would be?" In otherwords Unhappy! OR just trying to get you to knock some
big bucks off of it to make them happy! We all know that type.
6. How good a judge are you of people on the initial and subsuquent meetings
before beginning work?

Which incidentally you should be able to spot with your initial contact. See #5

OK so it was more then a thought or 3

Great points Richard!!

I would like to think I am good judge of folks and thats a BIG part of dealing with a client!!

I have been fooled a couple (or more )times and it's just like mistakes in woodworking........you learn from it!

Nick

Hey Big T.....just saw this new forum addition.........ENJOY!!!!

Hi Neil.

I figured why let the rest of you guys have all the fun?

Now I wonder if you can tell me a couple of things?

When do we get our cheques for moderating?

When is the summer convention and is it true that it's in Monte Carlo this year and that Tommy pays the tab?

Paul
the little tongue in cheek guy

"Tiny - When do we get our cheques for moderating?"


the check is in the mail