These days, everyone is pondering upon various venture ideas and whatnot. But, there is one such field that still requires people to plan and execute. Wood, being both practical and beautiful, has been a famous component or element in making products. Moreover, several people worldwide continue to seek out and pay a good amount for wood products. Besides, did you know that a woodworking business specializes in making carving furniture, products, and various other items primarily from wood?
As per IBISWorld, the entire wood-based product manufacturing industry is estimated at around $6 billion, growing. So, if you are one of the enthusiasts looking to step ahead and initiate their venture, this is an excellent guide for you. Let’s begin without further ado.
Suppose you have found the right business idea, and now you are all ready to go the distance. However, there is a bit more to starting such a business, We have tried to put together some vital steps to your commences. Moreover, these steps will make sure that the new venture is appropriately registered, well planned out, and legally compliant.
1. Plan your business
A sturdy and clear plan is one of the essential steps to succeed as an entrepreneur. This will allow you to map out the specific elements of your venture and discover the undiscovered grounds.
What’s the cost involved?
Even though the cost involved is significant, one can manage it easily. Business owners may expect to spend more than $6000 in total. Given below is the breakdown of the cost.
- $2,000 for wood and various other materials
- Around $1,500 for woodworking equipment and tools
- $1,000 for a reliable and robust computer
- Close to $1,000 for miscellaneous spending
- About $800 for a camera and website
- More than $150 for your venture’s business cards
How will you make woodworking money?
It is as simple as it gets. Such an organization makes money by selling and producing wood products. These products can be furniture like cabinets, Adirondack chairs, dressers, or relatively more minor items, such as smartphone holders, jewellery boxes, cutting boards, manual coffee grinders, or wooden beer mugs.
2. Form a legal entity
One of the most standard business structure forms is the partnership, sole proprietorship, corporation, and limited liability company (LLC). Establishing your legal entity like an LLC allows you to protect yourself from getting sued.
3. Register for taxes
To register for taxes, you need various federal and state taxes before opening any business. Moreover, you can apply for an EIN, which is free and easy. But, what do you know about small business taxes?
Small Business Taxes
Based on the business structure you select, you might have different options on how the business is being taxed, after all. For instance, various LLCs can benefit from getting taxed as an S corp.
4. Open a business bank account.
Utilizing credit and dedicated business banking accounts is quintessential for asset protection. When your business and personal accounts are mixed, all your home, car, and other valuable assets are at significant risk of getting sued. So, build your credit card and other financing platforms to get better lines of credit and interest rates.
5. Set up business accounting
Remember, as a woodworking venture; you need to keep a detailed and accurate account to simplify your annual tax filing.
6. Obtain necessary permits and licenses
Failure to obtain essential licenses and permits can lead to hefty fines or even enable your business to shit down. So, look for a valuable and viable business license and certification to safeguard your venture. Post that, look for insurance types like general liability insurance, business ownership policy, commercial auto insurance, workers’ compensation insurance, and property coverage.
7. Define your brand
The brand you own is an entity you stand by. This also relates to how the general public perceives your brand. A robust brand name will allow your business to stand out. Begin with designing your logo. And, if you do not know how to go about it, consider hiring a designer to do it for you. Know that the internet does make the entire marketing and branding work a lot easier. Consider classified and kitschy sites like Handmade and Etsy, or even social media platforms, for that matter.
8. Create your business website
After you are done with logo designing and brand-defining, it is a suitable time to develop a business website to streamline everything. However, while creating a website, several factors can help and derail your success. Having said that, it is essential to understand some vital elements of the website you develop. While hiring a website developer, try to sort the website theme and talk about services and packages streamlined. Remember, the point implies that you need to be extra specific and make a visitor’s or potential client’s life easier.
Featured Image Credits: Pixabay