Starting a Woodworking Business #8: solitude

If you can last for a while, start making exactly what it is you want to be known for. If you start remodeling, that is what you will be known for and you will be stuck in it.

If you want to make Greene & Greene side tables (or whatever), then make some and start marketing them.

If you take on remodel, that is what you will be known for. If you think “I’ll just take this one roofing job” then the neighbors will all start asking you to bid their roof.

You have a golden opportunity to directly shape an mold the public’s image of what you do. Do not miss out on this chance. Once you start sailing your ship you will find that it is difficult to change direction because you have set the public’s perception of what you do.

-- Todd A. Clippinger, Montana, http://amcraftsman.com

While I can certainly understand Todd’s point I would add a ‘on the other hand’ to it. When working for yourself you have the ability to control your public image as well. I have been in business for myself for just under 20 years. In that time I have had many different public ‘faces’, several at the same time to different market segments. For example while many of my woodworking clients know I am also an architect, they don’t know that I also do technical illustrations for the publishing industry and I don’t believe any of the publishers I work with know that I do woodworking but they do know I am an architect. I also do a lot of training and customizing for CAD users and these clients only vaguely know I do anything other than being some sort of a CAD ‘guru’ to them (lol). Obviously, this doesn’t work for every type of service. For instance Todd’s roofing example seem to me would require a crew and an admin overhead structure that the work I do doesn’t and therefore would require more commitment of resources to produce a profit. So again while I think Todd’s point is well taken it doesn’t describe the only way just one of the ways.

As to health insurance it is difficult to say anything useful without knowing your particular medical history (I am not asking you to reveal it). The restrictions placed on pre-existing conditions is highly determinative on your ability to acquire health insurance but I will suggest you look into the Health Savings Account program that is available to the self-employed which allows you to set aside pretax dollars for medical expenses. I was an early enroller (back when they were called MSAs) and have found HSAs to have a real economical benefit to me.

Hope this helps.

-- criticism: the art of analyzing and evaluating the quality of a artistic work...

Thanks guys!

Todd: I have been thinking for some time that I shouldn’t try to be all things to all people. I’m learning my real strengths are in designing and making G&G items. Everyone that has been looking at my items tells me that is what I should focus on and not trying to bid on a dry-wall job, for example, because it is taking time away from the crafts side of what I really love doing. The Greene & Greene items are what I am going to market, so that is where I am putting my focus. Especially when I’m doing lamps because the stained glass work takes a considerable amount of time. I’ve spent the past 2 weeks just working on the protoype design/build of a G&G-style chandelier that has a not-insignificant amount of stained glass work (I’ll post some pics soon), and if I am fortunate to sell these items I’m not sure if I will have time to devote away from it. Thanks for the suggestion!

jlsmith:
Your comment about overhead really caught my eye… that is a very good point. I take it to mean that if I open the door to certain types of remodeling work, I may inadvertently create the need for overhead that otherwise might not be needed, which could end up forcing me business-wise in a direction I definitely don’t want to go in. And thanks for the info on the insurance. I will look into it!

-- Sam

I hope you all the sucess, Sam.

-- CJIII Future cabinetmaker

Sam, I think Todd makes a solid point. Be careful what you get known for. Its OK to be versitile, but stay focussed on what you want to be known for. That also goes for pricing. Big mistake a lot of woodworkers make in the beginning is they under price their work to get “their foot in the door”. Designer’s, contractors and a lot of people love to hear you say that and they will promise you more work then you will know what to do with if you just do that first job at a great price. Once you start giving your work away, it’s hard to raise your prices to where it should be. It’s hard enough to keep up with times without starting in a hole….. and it’s real easy to sell when you’re giving it away. If you’re not losing 20-25 percent of your bids because they think you are too high, then your prices are too low. Whenever I sell a commisioned piece and the sale went really easy, as soon as I leave, I ask myself; I wonder how much money I left on the table? It’s something you should always think about. Selling our work is exactly that, It’s selling and can be very hard at times.
Good luck your new business and keep us posted.

-- John @ Myrtle Beach

The other guy’s input really helps give a well rounded perspective.

My roofing example was a bit extreme but very valid because it happened to me early in my career.

I started out in remodel and I have created a monster that I have to keep throwing meat at or it will eat me alive. I have created a situation that requires a certain amount of overhead and I need to continue functioning at that level. This is a bit of a point backed by what jlsmith5963 states.

Remodeling will take all of your time. This is the mode of operation as a remodeler; you are working on a job and you have one on deck to start. You have a small, flexible filler project still waiting for an opening, you are taking calls while you are working because you have to take the call to make the initial contact, but you can tell them that you will take their number and call them back. Letting it go to voicemail will be cause for lost opportunities. You have a potential job to go look at after work and you have two or three bids that you need to get done and you still have to go sell a bid that you finished up. And the bids don’t mean that you have the work.

With all of that going on, how are you going to make furniture on spec? Make some pieces that represent your the way that you want to be seen RIGHT NOW. Then you can fall back to make some side money on home repair and remodel. Telling people how great your furniture is does not compare to showing them. If you remodel you will not build the furniture portfolio or it will be very difficult.

I do a lot of work that I don’t share. Why? Because it would be work that should be seen over at HomeRefurbers. I could have a full time presence over there too with the work that I do. But what I share here is my deepest passion.

-- Todd A. Clippinger, Montana, http://amcraftsman.com

beginningwoodworker
Thank you!

Huff,
Thanks for the suggestions on pricing. It’s actually what I am working on at the moment. Your comments are well-timed… thanks again.

Thanks Todd, you’ve been a great help to me. You should write a book. Seriously… lots of great first-hand advice…

-- Sam

my wife works and added me to her insurance, as i started going full time i jump at every job oppurtunity out big to small, to get the word out my customers is my main addvertizement, frist of the year i’l be in thephone book. getting signs for the truck next, just starting on step at a time. with long hours, and week

-- tool time tim aka "cobra5"

thanks cobra… I wish you success!!

-- Sam

Sam the strong point in my business is that I am a person who can figure things out .The multitasking issues , where to put your effort , cash flow, insurance amounts , etc ,and daily fires are not ever going to stop when you have a business. Oh yes then the problems of how to grow – This has been one of the better threads on LJ. I have a style that is not either of the above described ,but by reading them makes me think about how I will handle today-

-- rob

socalwood
Thanks! The multitasking isn’t so much a problem as it is making sure I haven’t missed anything. I am a detail-oriented person, and I really enjoy wearing different hats, but I need to develop something like a business plan, perhaps an operational plan to help me keep track of the short term goals and responsibilities. I do have a business plan, but it is more of a macro-view of my business. I spent 8 years in a manufacturing environment so that helps somewhat as I am creating a product, the design, the drawings, the bill of materials, establishing the vendors, optimizing the build, a giving plenty of thought to production-line approaches to how I might reproduce a particular item, etc. The optimizing is an on-going process, but I realize once I get a number of items to market, it will become more difficult to stay on top of it. In the electronics field that I came out of, there is a phrase called ‘Creeping Elegance’.... It means that when you are designing a product, it is very easy to ‘keep improving it’ to the point where you never accomplish the end goal – making the product…. I am trying to avoid that.
I still love it…

-- Sam

Sam , We are on your side . Keep distilling your ideas until the cream rises to the top , you are a smart guy . You will get there soon—

-- rob

Thanks socalwood. I sincerely appreciate it…

-- Sam

I think it is important to point out that you realize how your skills as an employee transfer to business owner.

Seriously, a lot of people cannot figure it out.

-- Todd A. Clippinger, Montana, http://amcraftsman.com

DIDDO on what Todd said . Ask your wife what your strong points are also , build upon them .Are you doing this for the money , the passion , the lifestyle ? Lots of times these reasons are mutually exclusive , once in a while they are not -

-- rob

thanks guys

Initially, I had planned on starting a woodworking business part time and then move to that when I retired. Retirement now is not going to be an option for me any time soon, and the industry I came out of is struggling worse than the auto industry so I don’t see myself going back to that. I’ve had resumes out there for a short period of time, but the jobs locally (within 50 miles or so) that I have applied for and am definitely qualified for are going to younger guys. Even though I am only 54, each day I come closer to the reality that my future depends on me. It isn’t going to be some multimillion dollar company around which I built my dreams of the future – - thinking like everyone else that if I only got a job there I’d be set for life…. I could move to another state and perhaps start over in engineering but I firmly believe there will never be a better time than now to start my business. I have the drive asnd the desire. I have a severance so I don’t need to borrow start-up capital, and I have almost all of the equipment I need, so any expenditures I make towards the business are minimal.

As for my reasons for doing this, I have to say it is a mix… I do love the lifestyle, and I definitely have the passion as my wife will tell you, but I’m also a realist. I’m not in it for the money… I know I’m not going to get rich. But again I am not going to limit myself to saying I’ll won’t make good money. I hope I do.

With respect to Todd’s comment about the transition from employee to business owner, that is something I hopefully will learn, and with great help from you guys. In my previous engineering job, I did a lot of project management, which I am trying to apply to what I’m doing, at least from the aspect of treating each product like a project. But again, I’m going to make mistakes. We definitely made them in the manufacturing world. One thing I alwasy tried to keep in mind when I was designing something to be robust. I would always ask myself – if I ever have to travel 1000 miles and work on this thing in the middle of the night – what can I do design-wise to lessen that possibility? I think it is a good philosophy to adhere to when designing something. That joint that I have a question about or the finish – is it going to hold up – or is it something that will keep me awake at night? I am constantly running those kinds of thoughts through my head. I try not to second-guess myself, and I’m not a worrier, but perhaps I am a bit overly-cautious at times.

-- Sam

I can’t add much to the really good advice already given except to say that many businesses fail because of inadequate marketing. It really pays to have good contacts who will be willing to put you in touch with potential customers. I’m not just thinking of people you have sold to, but people like architects, home builders, decorators, home remodelers and such who are in a position to know when people are looking for something you can produce.

Sam I admire your ambition and willingness to take a such a risk at age 54 to go into business for yourself. I have a friend who did just that producing furniture. He has since retired and his two sons are now still running the business successfully. So it can be done. I hope you make a go of it. Good luck!

-- Mike, American in Norway

Thank you Mike. It is encouraging comments like yours and the others that helps keep my spirits up and push me along.
Thank you

-- Sam

Hey Sam
There has been a lot of god advise here. I think about what Todd said about trying set you direction an that’s what your known for . This can be good and bad. As time passes you may find that what you thought would be your specialty will have no interest in the market place or there is a high demand for that product and you hate making it. Just like Todd I started in remodeling except I also started in my wood shop at the same time I pushed and marketed and promoted the wood shop with all my might but the remodeling business grew also it supported my family and the wood shop did not . For ten years the remodeling business
paid the bills and helped improve the wood shop and then more and more folks needed cabinets and built-ins because of there contact with me in the contracting business. five years ago the wood shop grossed more than the contracting business. Still much of my work comes from contact in the contracting business. This Year being what it has been very slow again the contracting business paid the bills. I think you get the point .
Why didn’t my wood shop not take off ? Was it that I’m in very small market (the closest large city is 25 miles away and it’s population is only 20,000even there) ? Was it that I wasn’t talented enough ? Was it that I didn’t know how to market myself well enough ? Maybe all of the above. But I had a plan “B” and it made the difference financially. If I remember Todd got his first big job from his remodeling business and was able to rally that into full time woodworking. This is what Rob calls”Keep distilling your ideas until the cream rises to the top ”. It’s not the same for any one, so keep you finger on the pulse of your business,your community and your family.
No matter how it turns out you have gone for it which is more than 85% of others will ever even try.

-- Jim from Heirloom Woodshop Southern Oregon

I meant good advise

-- Jim from Heirloom Woodshop Southern Oregon

a1Jim
Thanks for your insight and advice…. and I take your comments to heart, as I am not going to close the door on remodeling, but for at least the next several months I am going to try to focus on the products. I have thought exactly what you mentioned about the negative aspects of what could happen. I am trying to distill everything that everyone is suggesting… I might have mentioned this earlier but a friend on mine wants me to work on his 4-season room and refinish some furniture for him. It is a dilemma… My ideal business model would be something along the lines of Dale Barnard. He does G&G and incorporates it into G&G-style remodeling, but I think it is probably too specialized for my area. In any case, I am keeping the door open to everything , but only those things that are in line with my general focus. For example, I won’t do roofing, plumbing or structural work. I can do those things, but I want to at least try to focus. I remember when I was in the manufacturing world, I had a long discussion with the plant manager about starting a business. He was very helpful and had some suggestions that are quite in line with what everyone is saying here. The manufacturing business we were in got started because a customer had a particular need. Originally, the business tried making things and then taking them to market but that was only marginally successful. It was only when the business listened to the customer that it became enormously successful. Later, the owner tried to start a secondary business based on an idea he had that he thought the public wanted. It failed. He said one thing that has always stuck with me. He said finding your niche sometimes is like getting in a boat and floating downstream. You know the general dierction you’re going in but you really have no idea where you’ll end up. Something along the way may change your plans… but if you never get in the boat you’ll never know what you will find…
Good suggestion Jim
Thanks

-- Sam

A1Jim’s input is pretty accurate and valid. Everybody’s input is giving you a piece to a puzzle and when put together it creates a bigger picture for you to look at.

Your boss’s analogy about the boat is perfect. A business plan is good because it gives you direction but you have to remain flexible to the opportunities that arise because, realistically, you need to feed the family.

Is G&G too specialized for your area? Or would you become the guy that is known for specializing in it because no one else does it? That is a tough one.

The people I know that make a living from furniture only do the circuit of shows. That is the common thread of success for all of them. They get their work into the juried furniture shows and attend them. That is where the pocket books and the interested buyers are.

Some have continued to do the shows and some have developed a big enough customer base and reputation that they no longer do 6 shows a year to only 1 or none at all.

You will not make a living with furniture sales where you live. Like me and everybody else, the furniture goes somewhere else other than where you live.

Things like cabinetry and built-ins can be a good business and you will work in your region because that kind of work tends to be localized.

-- Todd A. Clippinger, Montana, http://amcraftsman.com

You will notice that there are many different yet valid perspectives.

We all have similar business and there in lies some variables as well as the specific opportunities that have arisen for each. Other variables are based on personal contacts made, response to marketing (if any), local economy, and construction needs.

There is no single correct answer but only basic principles. The reason I push the SBA so often, is because they have the distilled information and principles to give to you, and so much of the information is FREE!

-- Todd A. Clippinger, Montana, http://amcraftsman.com

Those are great points Todd I think SBA can be a great aid also. I wish I would have had the benefit of LJs and this thread before going into business.

-- Jim from Heirloom Woodshop Southern Oregon

I need to start proofreading my entries. I noticed how incomplete my thoughts are in the entries, yet they were so complete and coherent in my head:)

-- Todd A. Clippinger, Montana, http://amcraftsman.com

Thanks Todd & Jim

Actually I am making use of the SBA. I’m registered for several of their seminars & classes in the upcoming month. I didn’t realize how much help is out there. I have a friend that has a construction business and asked him once what our area needed. He said that our area needs a good cabinet shop. There are a few already in this area, but size-wise I can’t compete with them. I think my best approach is offering something they don’t or can’t. I realize that I won’t make a living on furniture, for as Todd points out, I’m right in the middle of Amish country. And they have positioned themselves in the market brilliantly. The public has this one image of handcrafted by candlelight but they don’t see the CNC machines… and trust me, they are there because I have seen them. I can’t compete with that. As far as G&G is concerned, I won’t be competing with the Pearts and the Stangelands out there, as the line of items I am producing is primarily lighting, and the furniture items will be accessories and pieces that would complement what others are producing. I love G&G but perhaps I love it too much to be unbiased about its potential. I have always thought though that my market in the G&G items will be very narrow, and targeted to the Arts & Crafts world. I’m still distilling…

-- Sam