How to start a carpentry business

If you’ve been working in the carpentry trade for a while, you might feel you have enough experience to set out on your own and start your own carpentry business. After all, eventually working for yourself is a goal of many experienced tradespeople.

Starting a carpentry business can certainly be an exciting business opportunity, especially considering the growing demand for customised work and skilled tradespeople. But it’s certainly not something to be considered lightly, especially when you consider that there’s far more to running a business than simply the work you’ll be carrying out.

However, if you have a knack for woodworking and a strong set of carpentry skills that you’re looking to put to the test, then there’s no reason you can’t turn that passion into a thriving carpenter business.

Read on to learn more about the ins and outs of starting a carpentry business, including tips on what to include in your business plan, what business structure to choose, and tips for growing your new business in the future.

Creating a carpentry business plan

An essential first step for any business, before you settle on marketing strategies and business functions, you first need to create a business plan that outlines everything you want your business to achieve and how intend to accomplish these.

In essence, a solid business plan helps guide the business through the initial stages of setting your business up, while also highlighting key steps to consider for the future by providing clarity on goals, strategies for how to meet these, and financial projections that can help secure much-needed funding.

Not only that, but the best business plans also serve as a contingency plan by preparing you for potential challenges and unexpected scenarios that your new business might face.

Key information to think about in your plan could include:

• An overview of your business – Give a snapshot of your carpentry business, your mission, the services you want to provide (like custom furniture or home repairs), and your business goals going forward.
• Business description – Dive deeper into what makes your carpentry business unique by highlighting any niches that you intend to fill and breaking down who your core target market will be.
• Market research – Research your local market and the customers you want to serve before outlining your audience (homeowners, contractors, etc.), as well as who your competition are.
• Services and pricing – Create a list of the services you’ll offer and set a fair pricing structure for each based on materials, labour, and the prices offered by your closest competition. You may even want to consider the sorts of discounts you might offer new/long-term customers as a means of increasing conversion rates.
• Marketing strategy – Plan out how you intend to get the word out about your business, and the marketing strategies you intend to employ, such as social media, word-of-mouth marketing, directories, etc.
• Operations plan – Outline your daily business needs, including tools, suppliers, any team members, partnerships, and which location you plan to operate out of so you have a good idea of what your operating costs may be on a daily, weekly, and monthly basis.
• Financial plan – Lay out your start-up costs and how you are going to finance the business in the first place, as well as financial goals, income projections, and how you’ll manage your cash flow once your business is underway.

Choosing a business structure for your carpenter business

Next up, once you’ve created your business plan, you next need to settle on the structure of your new business – namely, will you operate as a sole trader, a partnership, or a limited company?

Most new trade businesses tend to start as sole traders for the flexibility this structure offers, though if you plan to go into business with a friend or partner, then a partnership might be more appealing.

Of course, if you want to make use of additional tax benefits, then it’s certainly worth looking into setting up as a limited company.

Why not read our guide on picking the right business structure for more detail on each option?

Sorting your business finances

It goes without saying that staying on top of your finances is essential for keeping your business ticking over, especially when there are fluctuations in business due to factors outside of your control.

Cash flow problems are one of the biggest reasons small businesses fail, thus, keeping your spending and cash flow under control is essential. However, if you think you might struggle with the accountancy side of things to begin with, then there’s no reason why you can’t hire an accountant to help manage your finances.

Alternatively, there are a range of great online budgeting tools available that you can use to streamline the process, while opening a business bank account can keep your personal and business finances separate, making accounting easier and simplifying the process for those who need to file a self-assessment form.

Acquiring business insurance

One of the most important things to do as you set up your new business is to research and apply for the right insurance. Simply put, customers are less likely to trust a business with no insurance, and you want to make sure all the essential areas of your business are covered to protect you, should the worst happen.

To begin with, we recommend investing in personal and public liability insurance, which will provide cover for you personally, and for members of the public should they accidentally be injured on your work site. However, it’s also worth considering tool and vehicle protection, just in case these essential parts of your business are stolen.

Getting CSCS certified

Much like other trades, those in the carpentry business can often find themselves being offered profitable and long-term roles on construction sites. If this is the case, then you need a CSCS card to be able to accept such a job, as this is a legal requirement for you to do any work on a construction site.

Essential carpentry business tools

One of the most important aspects of starting your carpentry business is investing in the right tools. Quality equipment is essential. Not only does it improve the end result for your customers, but it can also save you valuable time.

Naturally, as a carpenter, you likely already appreciate the value of high-quality equipment, given the meticulous nature of your work. But for those who want to double-check that they have all the right equipment, below is a list of our must-have carpentry tools:

• Tape measure
• Circular saw
• Power drill
• Nail gun
• Jigsaw
• Screwdrivers
• Table saw
• Hand saw
• Safety equipment
• Vacuum cleaner
• Spirit level
• Utility knife
• Sharpening tools
• Hammer

Growing your carpentry business

As essential as a good business plan and meticulous preparation are to starting a carpentry business, such steps will only take your carpentry business so far. To truly get your new business venture started, you also need to form a solid marketing strategy.

Below are our top marketing tips that you should consider looking into before launching your carpentry business:

 1. Create a business website

Nowadays, there are very few businesses that don’t have their own website – and for good reasons. A website acts as your online business premises, giving potential customers a direct place they can go to reach out to you, see reviews and examples of your work, and learn more about your business.

A well-designed site not only promotes your business to a broader audience but also gives potential clients a chance to explore your services in detail, helping them decide if you're the right fit for their needs. 

For more tips on creating a website, you can read our guide on small business website creation, which has a more detailed breakdown of this important step.

 2. Invest in social media 

Given the prevalence of social media establishing an online presence for your business on the different platforms available is an absolute must. Social media is the modern form of word-of-mouth marketing, and it can be a powerful source of new customers for those who invest in it.

Of course, just having an account on social media won’t be enough. Instead, you should actively showcase the work you do and highlight positive reviews left by your newest customers. Instagram and Facebook are particularly effective platforms for this, as they allow you to post photos of your projects on a regular basis.

And if you post images of projects you're particularly proud of, consider tagging your customers as well (with their permission). This not only acknowledges them but also gives them a chance to share your work with their own followers, expanding your reach.

3. Set yourself up for Google reviews

Google reviews, in particular, carry their weight in gold when it comes to boosting your presence in the search rankings – i.e., making sure your website gets found by potential customers.

So, when you get your business up and running, and the work comes rolling in, make sure to ask your customers to leave a Google review. And if you feel uncomfortable asking your customers for reviews, then you can read our blog on how to ask for customer feedback blog for tips on how to do this.

4. Don’t neglect local marketing strategies

As a small business, building a strong local presence is key to attracting new customers, which is why you should never ignore more traditional and localised marketing strategies. Because if the locals like your work, they’ll likely pass on the good word to neighbours or people they know. 

There are several ways to get your name out there when it comes to local marketing. For example, you could consider creating and dropping off leaflets in your area, putting your brand logo on your work vehicle, and posting about your projects on neighbourhood forums and local Facebook groups. These platforms are ideal for pitching your services, especially since people frequently ask for trusted tradespeople recommendations here.

Finally, another great way to build visibility is by sponsoring a local charity or sports team. Not only does this help raise awareness of your brand, but it also shows that you’re invested in the community and willing to give back.

5. Joining a trade listing site

Last, but not least, joining a well-regarded and qualified trust trade listing site or directory, such as Which? Trusted Traders, can offer numerous benefits for your business besides showing that you’re a reputable and reliable firm to work with.

With our Which? Trusted Trader scheme, for example, we endorse only the best traders, ensuring our customers can gain access to top-quality tradespeople who have been through a rigorous vetting process.

And passing these checks not only boosts your credibility and trustworthiness, but it will also help you access a wealth of new customers and ultimately, help to grow your business.

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