When do you make the full time plunge?

I once had a store owner who wanted me to be her primary builder…so I quit the old day job. She went out of business before I even started building for her. How do you plan to sell your product? Do you have the financial stability to go for a long period with out a paycheck? My greatest defect is I just never get around to doing sales. Go for it. It was the best decision I ever made.

-- http://www.woodsongsfurniture.com

I’ve never started a woodworking business, but I’ve been through a number of other startups, and I believe that you quit your primary job to pursue your secondary one when you have the revenue stream from the secondary job to prove to yourself that it’s not just one or two sales and that your income levels are, and when you have customers lined up to take that additional time.

There are some exceptions for when you need to do product development, but there are a lot of companies that should have been completely self-funded, that would have been successful had they been pursued that way, that instead get set up as a “I’ll take a risk and live on savings and…”, and fail even if the people involved manage to deliver product because the customer base wasn’t really there.

If you love doing this stuff in the evenings, do this stuff in the evenings and figure out how to sell it. Once you start selling it, then you can look at the time you spend making it and the time you spend marketing it and compare that to your other income streams.

-- Dan Lyke, Petaluma California, http://www.flutterby.net/User:DanLyke

Great advice Dan. Ramp up the new before you cut out the old.

-- John

I tried running a business and keeping my day job, but it didn’t work for me, because when customers called wanting me to deliver on a particular day, my day job got in the way. I ran a dirt business for three years. When I started I had plenty work lined up before hand and my first year was a good one. The second and third years didn’t do so well because of the increase in cost of insurance and repairs to my equipment, plus I didn’t have any spare time to drum up new clients. My point is, there is no safe way to go into business, whether you have what you consider an ample amount of savings to fall back on, the backing of a bank, or you go part time to test the water, you have to take a risk to see if you will make it. The problem with part timing, as you stated is, what happens if it takes off and you can’t keep up? I wish you the best in your endeavor.

-- Jesus is Lord!

The rule of thumb that I’ve always heard is that you need to start with enough money to startup, fail twice, then start up for a third time.

In college they told us to get a Coke machine. That’s where the profits come from.

(now I’m in sales)

One must first give a lot of thought to what he is about to do. Taking a very enjoyable hobby and turning it into a six or seven day aweek business. Once you make the move it might turn ugly if you have to do it to pay the bills, which don’t seem to ever stop. Been there done it. I don’t mean to sound negative but if you like the job your doing keep it and start small you can always quit if turns out to be a success.

-- Steven Big Timber Mt.

I spoke to a man who turned his hobby into a business in order to leave th pressures of a management position.
He said that it didn’t take him long to have the same pressures.

-- "Functional WoodArt" by Debbie, Canada (http://www.execulink.com/~yohan)

The best way to take a million dollars out of the woodworking business is to start with 2 million. <g>

Bob

-- A mind, like a home, is furnished by its owner

Money? What’s that? If I took all of your advice… I’d be working at 7-11. I just did it. By faith. my wife has thrown me away, but now I have a shop and more tools and the shop is full of wood. I still dont have any money, but I got a money guy that pays my bills. Who needs money?

-- http://ye-olde-cabinet-shoppe.com/

Mark Decou has a lot of great ideas about this exact topic. You should maybe ask his opinion. He’s been down this road before. Sorry Mark if I ratted you out. He’s full of knowledge. jockmike.

-- Mike. Profisher50@yahoo.com

crap. I just wrote you long reply to your question, and then posted it and found out that my connection was dead, and lost it all. I’ll try again later, I have to get ready this morning for church.

-- Mark DeCou - Kansas Flint Hill's Artisan

Mark, If I am writing something extensive, I often save the text periodically to a text editor on my computer. That way, should anything happen, I still have a copy. Sometimes I do this if I want to think about what I have written before posting it.

-- John

Knowing when to make the jump, is like asking how much will it cost to build a house. There are too many varibles to your life that no one else knows.

Any time is a risky time to start a business. It really boils down to miniumizing the risks. Research the laws in your area, the insurance requirements, and the cost of it.

The more varied your skills, the easier it will be to drum up work. Quoting the work is a whole new ball of wax. It takes experience to determine how long something will take, but you have to base your prices on that and the materials costs. also, BE SURE TO ADD MONEY FOR PROFIT AND OVERHEAD. This is not optional. It is necessary, or you won’t make any money. (ask me how I know that)

My stepson is starting a construction business now, and has managed to stay pretty busy, with just a few contacts.

He has miniumized his risks by working for an hourly rate. Providing quality work has kept his customers referring him to others.

Be expecting a tough road ahead and prepare for long hours. If you have a spouse, make sure they’re on board with the idea.

A large part of my being in business for thirty years, was a matter of two things. Being too stupid to give up when that was the right move, and being too stubborn to admit defeat.

Hope this helps.

Lee

-- by Lee A. Jesberger http://www.prowoodworkingtips.com http://www.ezee-feed.com

1. Goal and plan
2. backup funds
3. spousal support
4. nerves of steel
5. genius-ness balanced with a little bit of stupidity and stubbornness.. I get it!! :D

-- "Functional WoodArt" by Debbie, Canada (http://www.execulink.com/~yohan)

I have the stupid and stubborn part down pat. I need to work on the other 4 1/2 though.

-- Bob, Carver Massachusetts, Sawdust Maker http://www.capecodbaychallenge.org

In addition to all the great advice everyone else has offered I would add just a couple of additional things as to why woodworkers fail in business:

1. They sell themselves to cheap
2. They lack business knowledge

Having a great accountant will help in these areas and forums like LJ are a priceless tool!

I have been doing this part time now for about a year and oh what I have learned!!! Had I of jumped in feet first I am sure it would have been extremly hard, falling back on a day job has made it much easier.

Here’s an ok article on what not to do
http://www.woodweb.com/knowledge_base/The_Top_7_Mistakes.html

My thought? Better to have and tried and failed than never to have tried at all:)

Good luck!
RJ

-- http://rjoneswoodworks.com/

Here are a few things I learned:
I tried taking big jobs and never made as much money as when I took many small jobs.
If you are not a sales guy then find one. I was able to work all day and sell all night but that can ware you down fast.
Advertise no mater what you think and when you have no work and money that is the time you need to advertise most. Advertise consistantly, this way people that are looking see your in business and stable.
When you are busy advertise more and raise the prices a lot, you get better jobs and smarter clients
When you have no work give one job away at cost to keep you working, it will give you something to do instead of all the free time worrying abotu how to pay bills.
Do not undersell yourself. Most people, even thought they say they want the job for less, always think they get more when they pay more. You will get more work this way in the long run, of course you have to be able to deliver on quality workmanship).
Find and pay a good accountant, give as little money to the government as possible.
Find someone you trust that you can off load wok to if you get to busy to meat deadlines
Always return phone calls even if it is to say your to busy to take new work.
Always price a job even if you don’t want it as long as you have the ability to deliver, price it high ..real high but put a price in, you never know :)

Well thats a few of my thoughts, I have more but I am starting to ramble I think. Good luck

In truth I would try to never turn something I love into work. If you don’t like your day job then find a new one. Running a business is a lot more work than most people realize, but there are many good rewards to having your own business but money (even if you make a lot) is not one of them. <smile>

-- "so much to learn and so little time"..