The Complete Guide to Start A Carpentry Business in 2023
Working long enough as a carpenter? and do you thinking of start a carpentry business?
After spending years working for someone else, you might decide that you’ve got the experience, the connections, the tools, and the training to go out on your own. You’re ready for a new challenge—but where do you start? The answer is a carpentry business plan.
Starting a successful business is no picnic, but the good thing is that construction isn’t going anywhere, and neither is the need for repairing and maintaining woodwork. So if you do find success with your carpentry business, there will be work. Your experience and knowledge as a carpenter or builder will provide a solid foundation to get you started, but you’ll need new skills as a business owner too.
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Carpentry can be a highly rewarding career, as the creative process allows you to see the fruits of your labor every day. If you enjoy working with your hands and seeing the culmination of your hard work each day, then becoming a carpenter could be a great fit.
Once you are a certified carpenter, you can begin practicing the trade in your own right. This guide is specifically for tradespeople who thinking to start a carpentry business or working as self-employed building contractors. It’s packed full of information, guidance, and steps—everything you need to know about turning your hands-on skills into a successful and profitable carpentry business.
Table of Contents
1. Develop Your Plan to Start a Carpentry Business
This is important for any business, really, and you should really put as much time into it as possible before you start searching for work. There are many decisions you need to make about how you want the business to progress and what you want to achieve with it. While things often don’t work out exactly as planned, having a business plan will help mitigate any problems you might encounter along the way.
Writing a business plan can take some time, but it’s a necessary to take basic step to start a carpentry business. As a carpenter, you’d know better than anyone that a solid foundation is key to success. To give yourself the best possible start, you need to lay the foundations of your business with a solid business plan. This will help you be clear on your goals and how to achieve them, as well as with more practical things like financing and marketing.
While writing your business plan, make sure to include your mission statement, market analysis, product or service descriptions, and basic information about the leadership team, employees, and location. Include financial information and high-level growth plans if you plan to ask for financing. It must also cover what type of construction business you want to start. It would be a good idea to specialize and/or target a niche market.
2. Build Your Brand
You need to develop a reputation for your business so people will seek you out when they’re looking for the service you offer. This means that people need to know who you are. So you’ll need to brand and market your business.
Deciding on a business name is a pretty tricky thing to do. It needs to be something that people will remember, but also something that they will associate with your service. You’ve got to be unique about it too. If people see a contrived name advertised, they just won’t remember it. While coming up with a suitable name for your business, remember that the name you choose should be
- Easy to say, to spell, and to remember
- Descriptive of your type of business (for example, yours could include the word “carpentry” or “woodworking”)
- In line with your brand
It’s also suggested that you hire a professional to design a logo for your business. It should be something that people will recognize and that can be used on business cards and any other advertisements. Besides, having your own company website is a must for branding nowadays. It adds authenticity, reliability, and visibility to your brand reputation and marketing efforts.
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3. Register Your Business
Once you’ve got the name decided, it’s important that you register it and trademark your brand. But before you do that, you will need to decide on your company structure. You can choose from the 4 main types of business structures for your carpentry business. These are
- Sole proprietorship
- Limited Liability Company (LLC)
With the name and company structure decided, go ahead and register your business and gain a business license for tax purposes. You can also register as a self-employed business owner. Certain state permits and licenses may be needed to operate a carpentry business. Here are the general permits you must obtain before you start your operations
- Register your business name: Work through the Small Business Association (SBA) to register your business name
- Get your EIN: Your EIN is your Employer Identification Number. It’s like a Social Security Number (SSN) for your business. Your EIN provides you with multiple benefits, so get yours right away.
- Get your business license: Check with your state to secure your business license
- Achieve Occupational Safety and Health Administration (OSHA) compliance: Review OSHA’s specific training requirements and ensure that you have fulfilled them all to maintain compliance.
4. Open a Business Bank Account and Credit Car
Using dedicated business banking and credit accounts is essential for personal asset protection.
When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as “piercing your corporate veil.” Additionally, learning how to build business credit can help you get credit cards and other financings in your business’s name (instead of yours), better interest rates, higher lines of credit, and more.
5. Get Insurance
Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business insurance protects your company’s financial well-being in the event of a covered loss.
There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with general liability insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.
Another notable insurance policy that many businesses need is workers’ compensation insurance. If your business will have employees, there’s a good chance that your state will require you to carry Workers’ Compensation coverage.
6. Finalize the Service List
There are several categories carpenters work within to provide services to clients, such as:
- Rough carpentry
- Trim carpentry
- Finish carpentry
- Cabinet carpentry
You may find that you want to work in just one of these areas, or you may offer a smattering of services across all of them. This will help you plan your operations and also determine the pricing for your services.
As you think about pricing, consider labor and material costs, as well as the ability level and additional skills required to complete each project. As a starting point, know that the average carpenter charges anywhere from $13 to well over $30 per hour for labor alone.
7. Stock Up on tools and Equipment
Unless you already have your own tools, this may be your biggest up-front cost when starting your carpenter business—but they’re also an investment. Your tools are your livelihood, and you can’t work without them.
Proper carpentry tools and equipment allow you to take on an array of project types. Here are a few key pieces you’ll need to perform your work and keep your business running smoothly.
- Truck or van
- Quick clamps
- Pens and pencils
- Carpenter’s square
- Nail gun
- Power drill
- Claw hammer
- Hand saw
- Surface planer
You may also need a work vehicle. You certainly don’t need the latest truck with all the bells and whistles, not to get started anyway! However, you will need something reliable with enough room to store all your tools securely while you’re on the go.
8. Invest in Technology
To ensure success in your carpentry business, start using paperless business tools from the get-go. In this digital age, you cannot make the most of your resources unless you invest in some digital tools. Automation is a must if you want to run your business efficiently and productively.
In today’s market, you will have plenty of software solutions and mobile apps to achieve this goal. This includes accounting software, ERP software, measuring apps, planners, and so on.
The best digital tool you can get for your carpenter business today is carpenter business software undoubtedly. It is essentially a field service management solution specifically designed for carpentry start-ups. With this software, you can achieve automation in almost all of your processes. This enables you to add more efficiency, scalability, productivity, and transparency to your operations, helping you to increase profitability.
The best choice for carpentry business software in today’s market is Field Promax. It is full of invaluable features, including scheduling and dispatching, estimates, Work order management, GPS tracking, team management, dashboard and calendar view, time-tracking, integrated mobile app, as well as QuickBooks online integration. NO wonder, it guarantees the best value for your money, that too at an affordable rate.
For more information, contact Field Promax.