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Saturday, October 20, 2012

Starting a Woodworking Business From Home

Starting a home based business such as woodworking requires a plan. Starting a business with no plan or a poor one is a recipe for failure. Part of this plan should include learning how to control the costs of your home based business. If this business is a woodworking business then this will be similar to many businesses which involve the use of materials and specialized labour.

To make a profit in any business you need to keep track of your costs. When you start your woodworking business you will need to put a final cost on your products. This will include a number of cost variables such as material, labour, overhead, shipping and other miscellaneous items. This may not be accurate at the beginning and you may take a loss. So that is why you need to keep track of your expenses right from the start. Adjustments will have to be made to insure that you make a profit as you grow your business.

Here is a list of costs you should keep track of as you grow your woodworking business:

Labour Costs - This should be determined by how much you would pay a professional woodworker, if you hired this person as an employee. This will be your personal labour cost. You could determine the actual rate of pay based on a percentage of you the cost of materials to complete a particular woodworking project.

Material - Each item you build will have a definite material cost built into it. This cost will not change once you have purchased the material you need to complete the project from start to finish. Keep track of even the smallest items. Remember small things add up over the course of a year and can become a large expense. These could be fasteners, screws, nails, glue, sandpaper, miscellaneous tools and masking tape, etc.

Overhead Costs - These costs include all those not involved with the actual production of your woodworking projects. These would be office supplies, advertising, insurance, rent, utilities, internet, phone, office supplies and other related costs. You will need an office to do accounting and sales. You might even decide to have a website which would advertise your woodworking business. This website could advertise products available to people beyond your local area. The operation of a company vehicle could be included in these costs.

If you decide to ship your woodworking products to your customers, include this cost in the price. Consider adding a shipping charge to the final price and itemizing it on the customers bill. Be up front about this. Explain to your customer there will be a shipping charge before the final transaction. If your product is of high quality the customer will accept this as part of running a business.

6 comments:

  1. If you'd like an easy way to earn part-time
    income by doing something FUN, go check this out now:

    ==> http://www.woodprofits.com?fhasdjgaf66r283

    My friend Jim, has successfully run a HIGHLY 
    profitable woodworking business from home 
    and he has just released his step-by-step blueprint.

    Read His Amazing Story:
    ==> http://www.woodprofits.com?fhasdjgaf66r283

    It is a no-fluff step by step guide to 
    create a part-time woodworking business,
    selling easy-to-build wood crafts, from HOME
    ...with NO capital or experience required.

    ==> http://www.woodprofits.com?fhasdjgaf66r283

    He started out with little carpentry skills
    and run a business in a 10x20 feet space
    with ZERO capital....

    But managed to made $9000 per month
    as a one-person business within the 
    FIRST year!

    The cool thing is, you don't have to
    be an expert woodworker to start
    this business as it's packed with solid
    STEP-BY-STEP instructions and 
    information on what to do to turn 
    your *passion into profit*.

    ReplyDelete
  2. If you'd like an easy way to earn part-time
    income by doing something FUN, go check this out now:

    ==> http://www.woodprofits.com?fhasdjgaf66r283

    My friend Jim, has successfully run a HIGHLY
    profitable woodworking business from home
    and he has just released his step-by-step blueprint.

    Read His Amazing Story:
    ==> http://www.woodprofits.com?fhasdjgaf66r283

    It is a no-fluff step by step guide to
    create a part-time woodworking business,
    selling easy-to-build wood crafts, from HOME
    ...with NO capital or experience required.

    ==> http://www.woodprofits.com?fhasdjgaf66r283

    He started out with little carpentry skills
    and run a business in a 10x20 feet space
    with ZERO capital....

    But managed to made $9000 per month
    as a one-person business within the
    FIRST year!

    The cool thing is, you don't have to
    be an expert woodworker to start
    this business as it's packed with solid
    STEP-BY-STEP instructions and
    information on what to do to turn
    your *passion into profit*.

    ReplyDelete
  3. If you'd like an easy way to earn part-time
    income by doing something FUN, go check this out now:

    ==> http://www.woodprofits.com?fhasdjgaf66r283

    My friend Jim, has successfully run a HIGHLY 
    profitable woodworking business from home 
    and he has just released his step-by-step blueprint.

    Read His Amazing Story:
    ==> http://www.woodprofits.com?fhasdjgaf66r283

    It is a no-fluff step by step guide to 
    create a part-time woodworking business,
    selling easy-to-build wood crafts, from HOME
    ...with NO capital or experience required.

    ==> http://www.woodprofits.com?fhasdjgaf66r283

    He started out with little carpentry skills
    and run a business in a 10x20 feet space
    with ZERO capital....

    But managed to made $9000 per month
    as a one-person business within the 
    FIRST year!

    The cool thing is, you don't have to
    be an expert woodworker to start
    this business as it's packed with solid
    STEP-BY-STEP instructions and 
    information on what to do to turn 
    your *passion into profit*.

    ReplyDelete
  4. If you'd like an easy way to earn part-time
    income by doing something FUN, go check this out now:

    ==> http://www.woodprofits.com?fhasdjgaf66r283

    My friend Jim, has successfully run a HIGHLY 
    profitable woodworking business from home 
    and he has just released his step-by-step blueprint.

    Read His Amazing Story:
    ==> http://www.woodprofits.com?fhasdjgaf66r283

    It is a no-fluff step by step guide to 
    create a part-time woodworking business,
    selling easy-to-build wood crafts, from HOME
    ...with NO capital or experience required.

    ==> http://www.woodprofits.com?fhasdjgaf66r283

    He started out with little carpentry skills
    and run a business in a 10x20 feet space
    with ZERO capital....

    But managed to made $9000 per month
    as a one-person business within the 
    FIRST year!

    The cool thing is, you don't have to
    be an expert woodworker to start
    this business as it's packed with solid
    STEP-BY-STEP instructions and 
    information on what to do to turn 
    your *passion into profit*.

    ReplyDelete
  5. If you'd like an easy way to earn part-time
    income by doing something FUN, go check this out now:

    ==> http://www.woodprofits.com?fhasdjgaf66r283

    My friend Jim, has successfully run a HIGHLY 
    profitable woodworking business from home 
    and he has just released his step-by-step blueprint.

    Read His Amazing Story:
    ==> http://www.woodprofits.com?fhasdjgaf66r283

    It is a no-fluff step by step guide to 
    create a part-time woodworking business,
    selling easy-to-build wood crafts, from HOME
    ...with NO capital or experience required.

    ==> http://www.woodprofits.com?fhasdjgaf66r283

    He started out with little carpentry skills
    and run a business in a 10x20 feet space
    with ZERO capital....

    But managed to made $9000 per month
    as a one-person business within the 
    FIRST year!

    The cool thing is, you don't have to
    be an expert woodworker to start
    this business as it's packed with solid
    STEP-BY-STEP instructions and 
    information on what to do to turn 
    your *passion into profit*.

    ReplyDelete
  6. If you'd like an easy way to earn part-time
    income by doing something FUN, go check this out now:

    ==> http://www.woodprofits.com?fhasdjgaf66r283

    My friend Jim, has successfully run a HIGHLY
    profitable woodworking business from home
    and he has just released his step-by-step blueprint.

    Read His Amazing Story:
    ==> http://www.woodprofits.com?fhasdjgaf66r283

    It is a no-fluff step by step guide to
    create a part-time woodworking business,
    selling easy-to-build wood crafts, from HOME
    ...with NO capital or experience required.

    ==> http://www.woodprofits.com?fhasdjgaf66r283

    He started out with little carpentry skills
    and run a business in a 10x20 feet space
    with ZERO capital....

    But managed to made $9000 per month
    as a one-person business within the
    FIRST year!

    The cool thing is, you don't have to
    be an expert woodworker to start
    this business as it's packed with solid
    STEP-BY-STEP instructions and
    information on what to do to turn
    your *passion into profit*.

    ReplyDelete