Startup Costs: Woodworking Business

How much does it cost to start a woodworking business? The average starting costs are $11K.
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If you are planning to start a woodworking business, the costs are relatively low. This of course, depends on if you decide to start the business on your own or bring on a big team at first.

We’ve outlined two common scenarios for “pre-opening” costs of a woodworking business and outline the costs you should expect for each:

  • The estimated minimum starting cost = $1,015
  • The estimated maximum starting cost = $17,600

The average starting costs are $11,032.

See our full guide to starting a woodworking business ➜

Startup Expenses: Average expenses incurred when starting a woodworking business. Min Startup Costs: You plan to execute on your own. You’re able to work from home with minimal costs. Max Startup Costs: You have started with 1+ other team members.
Employee & Freelancer Expenses
Payroll: This number depends on if you decide to pay yourself a salary upfront and how many employees you have on payroll. At first, many founders take on all responsibilities until the business is up and running. You can always hire down the road when you understand where you need help. Keep in mind, if you do plan to pay yourself, the average salary founders make is $50K. $0 $4,000
Total Employee & Freelancer Expenses $0 (min) $4,000 (max)
Website Costs
Website builder: The cost of your website will vary depending on which platform you choose. There are many website builders on the market, so it's important you choose the right one for your business and overall goals. To learn more about your options + how to build a great website, check out this article. $15 $100
Web Designer: If you have the necessary skills to design your website, then it may not be necessary for you to hire someone. However, if you do decide to go that route, make sure you establish an understanding of upfront cost, design and what the ongoing costs will be to manage the site. Here is what to expect when hiring a web designer. $0 $6,000
Total Website Costs $15 (min) $6,100 (max)
Office Space Expenses
Rent: This refers to the office space you rent out for your business. To minimize costs, you may want to consider starting your business from home or renting an office in a coworking space. $0 $2,000
Total Office Space Expenses $0 (min) $2,000 (max)
Business Formation Fees
Small Business Insurance: Depending on which state you live in and the business you're operating, the costs and requirements for small business insurance vary. You can learn more here. $500 $2,000
Total Business Formation Fees $500 (min) $2,000 (max)
Specific Industry Expenses
Woodworking Equipment + Materials: Power drills, saws, wood, materials and machinery vary depending on the type of business you start $500 $3,500
Total Specific Industry Expenses $500 (min) $3,500 (max)
Total Starting Costs $1,015 (min) $17,600 (max)

Want to start a woodworking business?

See our full guide ➜