How To Start A Woodworking Business In 2024 [9 Step Guide]

Updated: January 18th, 2023

How To Start A Woodworking Business In 2024 [9 Step Guide]

Starting a woodworking business can be a rewarding and lucrative venture for those with a passion for crafting and creating with wood. However, it's important to carefully plan and prepare before launching your business to ensure success.

In this article, we will provide tips and guidance on how to start a woodworking business, including how to determine your niche, create a business plan, and market your products.

Whether you are a seasoned woodworker or just starting out, these steps will help you turn your passion for woodworking into a successful business.

Step 1: Know The Industry

It is essential that you do your research on your new potential business idea.

Research is important because it will help you answer some questions, like:

  • "What are the chances that this business will work?",
  • "How much money can I make with this business?", and
  • "Who is my competition and how can I beat them?"

But first, let's start with some statistics on the woodworking industry and starting a woodworking brand:

Statistics You Need To Know About Starting A Woodworking Business

Size Of Industry $282B
Average Monthly Revenue $17.4K
Average Initial Investment $11,015
Gross Margin %
Time To Build ~210 days

After understanding some of the statistics, here are some more resources to help you make the decision if a woodworking business is the right business for you:

More Resources For Your Research

Is a woodworking business for you? Pros and cons of a woodworking business
What skills do you need to start a woodworking business? The 2 Most Important Skills You Need
Understand the competition: 40 trending woodworking business
How much does it cost to start a woodworking business?

Lastly, you should research previous successful woodworking businesses, and learn from founders before you.

Want to see how others started a woodworking business? Check out these 3 woodworking business case studies from successful founders:

Woodworking Business Case Studies You Should Read

How I Took My Woodworking Hobby Full Time To Build A Successful Brand
How I Designed And Patented A $18K/Month Woodworking Accessory
How Andrew Stokes Used YouTube and TikTok to Build His Woodworking Business?

Want more case studies? See the full list.

Step 2: Find The Right Niche & Demographic

What is a niche? A niche is a small and specific area of interest or customer base.

When starting your woodworking brand, you want to target a specific group of customers that will be interested in your products. You don't want to do woodworking for everybody, but rather a smaller (and underserved) subset of the market.

"Niching down" is powerful because it will allow you to focus on your target audience and create products that they love.

Examples Of Woodworking Brands That Succeeded By Going Niche:

Timber Grove Studios making $6.5K per month
Brex International, LLC making $18K per month
MTN SIDE BUILDERS making $40K per month

Want some more examples of niches? Explore this list of 2,500+ niches.

Step 3: Come Up With A Name For Your Woodworking Business

A good name for your woodworking business is important because it will help you to stand out from the crowd. It will also make it easier for people to find you on search engines and on social media.

Furthermore, the design, branding, and vibe of your business are key. It will set the tone of your company and give potential customers an idea of what you are about. Your logo, color scheme, and fonts are all part of the branding process.

Find Your Name, Slogan, Logo & More

Find a name for your woodworking business: 730+ Crafty Names For Your Woodworking Business
Find a slogan: 600+ Crafty Slogans & Taglines For Your Woodworking Business
Find a domain: Search cheap domains
Find an Instagram handle: 1,000+ Creative Woodworking Business Instagram Name Ideas [{{ current_year }}]

Step 4: Create A Business Plan

A business plan is a written document that describes a company's goals, strategies, and reasons for success. It is an essential document for any business owner or entrepreneur to create.

A business plan is important because it helps you answer questions like: "what do I want to do?" and "what are my weaknesses and strengths?".

It doesn't have to be 30 pages long, but it is important to get something written down, so you organize your thoughts and your vision, as well as get feedback from friends and colleagues.

Business Plan Templates You Can Download & Fill Out

  1. Business Plan Template For A Startup
  2. Official U.S. Small Business Administration Business Plan Guide & Templates
  3. 500 downloadable sample business plans
  4. A simple one-page business plan template

Although you might be super excited to hit the ground running on your new business, there are some paperwork things you may need to do, such as creating a legal entity and setting up your taxes.

1. Choose Your Business Structure (Make Your Company Official)

If you are a U.S.-based company, you must decide what business structure is right for you.

The most common business structures are (1) sole proprietorship, (2) partnership, (3) limited liability company (LLC), and (4) corporation.

Read: Understand What's Best For Your Business: (LLC, S Corp, C Corp)

If all of this legal stuff sounds daunting, you can create An LLC in minutes with ZenBusiness.

2. Register For Taxes (Federal)

Getting an EIN number is a necessary step for small businesses in order to file taxes or accept payments from customers.

Register With The IRS & Get an EIN Number: EIN Number Application

3. Register For Taxes (State)

Tax obligations are different for every state, so you'll need to check with your state's website for more info.

Look Up Your State

Step 6: Bank, Bookkeeping, Insurance, Permits & Licenses

To operate your business, you'll likely need basic things like a bank account, and you may need some licenses and insurance (depending on your business):

1. Bank Account, Credit Card

Set Up A Business Bank Account: 8 Best Business Checking Accounts
Get A Business Credit Card: 12 Best Business Credit Cards of July 2021

2. Insurance, Permits & Licenses

Read: What insurance do I need for my business?
Get The Right Permits & Licenses: What License or Permit Do You Need to Have a Woodworking Business?

Step 7: Create & Design Your Product

You've set up your business. Now the real work begins. You need to design, manufacture, and/or source a product that you can sell to your customers.

Here are some tips to design and create your clothing:


By using the dropshipping technique, you can start your own online store without the need to buy or stock any inventory. When you make a sale, the product is sent straight from the manufacturer to the customer.

Useful Reads On Dropshipping

Read: This Dropshipping Business Makes $150K/Year [Case Study]

Design & Prototyping

Prototypes are a necessary step in the process of designing a product. They help you get feedback and validate your idea before investing in it.

Prototype & Design Your Product: Prototyping Tips From Founders
Guide To Packaging Design

Step 8: Launch Your Woodworking Brand

If you build it, they might not come. That's why you should have a special "launch" of your company to boost sales.

Use your launch to show off all the great things about your brand and your product, and what it can do. And answer any questions potential customers might have about the product (which doubles as great feedback for your brand).

Here are some tips to launch:

How To Price Your Product At Launch: How To Price Your Woodworking Projects?
Read: How to Launch Your Business Successfully
Read: How To Get Press Coverage On Your Business

Real-life success story #1: Leverage social media for coverage

Read this case study to learn how Andrew started a $480K/year woodworking brand and how he approached launch to have a successful start.

I knew I was not interested in renting my time for money as many builders and craftsmen do. I began to brainstorm things that could make this venture a little more scalable, and not leave me at the mercy of who ever was hiring me.

I launched a YouTube channel. I uploaded a video not even I would watch just to experience how the whole thing worked, keywords, meta-data, SEO optimization within YouTube’s framework.

The cabin was a two month long marathon of mental and physical challenges. Filming was often at the back of my mind so most of the documentation was done through time lapse. When the cabin was finished I put all of my footage into iMovie and came up with a 12 minute long video and set it to premiere on Monday November 16th 2018.

I was at my cousin’s house for the premiere. I must have sent the link to over 100 people I knew for the original viewing. It received around 500 views in the first 20 minutes from YouTube’s ‘premiere’ feature. Then the real work began. I had pre-wrote facebook, reddit, and instagram posts and had all the links compiled for where I would share them, I had emails written up, and a massive text barrage to all of my friends. After that was all done I went to bed at around 2:30 in the morning.

I woke up to over 100 e-mail notifications and 15 000 views on the video, which I was completely satisfied by. My blast of sharing the video had worked and the video had ran its course to the top of many sub reddits. I went up for breakfast and left my phone downstairs to share the news with my family. I checked my phone a few hours later and noticed I needed to turn off email notifications as the video had reached over 40 000 views and hundreds of comments, YouTube had suggested my video on the home page.


Real-life success story #2: Use Etsy to sell your woodworking products

Read this case study to learn how Sasha started a $78K/year Etsy woodworking brand.

When I graduated from college, I spent the summer waitressing long hours but slowly began launching the business on the side.

I started out by selling through Facebook, Instagram, Kijiji, any free platform I could at the time. It was just a few sales a month so more of a hobby, although I was working on my branding at this time and starting to get the Etsy shop together.

I launched the shop officially in October and within a month I was starting to get a few sales that weren’t from family and friends. October was obviously a great time to get started because that’s when the busiest time of year is picking up...

By April the shop was really rolling and I became full time.


Step 9: Find Customers & Grow Your Business

Finally, the hard work begins! Once you've created your company, launched your product, and got it off the ground, you'll likely start thinking a lot about how you can grow it.

Here are a few resources on how to grow your woodworking business.

Read: 74 Ways To Market Your Woodworking Business
Read: Grow Your Business With SEO
Read: Email Marketing & Growing Your List
Read: Facebook & Social Media Advertising
Read: 200+ more ways to grow your business

Frequently Asked Questions

What is the best woodworking business to start?

The best woodworking business to start will depend on your skills, interests, and resources. Some potential options to consider could include:

  1. Custom furniture making: This could involve designing and creating one-of-a-kind pieces for individual clients.
  2. Woodworking for home improvement: This could include creating built-ins, cabinetry, or other home furnishings for remodeling projects.
  3. Woodworking for commercial projects: This could include working on large-scale projects for businesses, such as creating custom millwork for restaurants or offices.
  4. Woodturning: This could involve creating decorative or functional items using a lathe.
  5. Wood carving: This could involve creating sculptures or decorative items using hand tools or power tools.

Ultimately, the best woodworking business to start will depend on your strengths, interests, and target market. It's important to choose a niche that aligns with your skills and passions, and to research the demand for your products or services in your area.

Is DIY woodworking profitable?

It is possible for DIY woodworking to be profitable, but it will depend on various factors such as the demand for your products, the cost of materials, and the time and effort you put into your business. Some DIY woodworkers may be able to make a profit by selling their products online or at local craft fairs or markets, while others may choose to offer services such as custom furniture making or home improvement projects.

To increase the chances of profitability, it's important to have a solid business plan in place and to carefully research the demand for your products or services. It's also important to price your products or services appropriately, taking into account the cost of materials, labor, and other expenses. Marketing your business effectively can also help to drive sales and increase profitability. Overall, DIY woodworking can be a rewarding and profitable venture if you are able to effectively plan and manage your business.

What woodworking project is most profitable?

It is difficult to determine which specific woodworking project would be the most profitable, as profitability depends on various factors such as the cost of materials, the time and skill required to complete the project, the demand for the finished product, and the price at which it can be sold.

Some woodworking projects may be more labor intensive and therefore command higher prices, while others may require less time and resources but have lower selling prices. Ultimately, the most profitable woodworking project will depend on the individual circumstances of the woodworker and the market they are operating in.

Can I make a living from woodwork?

Yes, it is possible to make a living from woodwork. There are many people who have successful careers in woodworking, either as self-employed woodworkers or as employees in a woodworking company.

To make a living from woodwork, you will need to have a good understanding of the craft and be able to produce high-quality pieces consistently. It is also helpful to have good business skills, such as marketing and pricing your work, managing your finances, and networking with potential customers.

What is profit margin in woodworking?

It is difficult to determine an average profit margin for the woodworking industry as a whole, as profit margins can vary widely depending on a number of factors. These factors can include the type of woodworking being done (e.g. custom furniture vs. mass-produced items), the materials being used, the overhead costs of the business, and the competitiveness of the market.

In general, profit margins for small woodworking businesses can range from as low as 5% to as high as 50% or more, depending on the circumstances. Some woodworkers may have a lower profit margin on individual pieces but make up for it by producing a large volume of work. Others may have a higher profit margin but produce less work.

Do I need training to start a woodworking company?

While it is not necessarily required to have formal training in order to start a woodworking company, it can be helpful in order to gain the skills and knowledge needed to produce high-quality work. Formal training can also provide opportunities to learn about business practices and management, which can be important in running a successful woodworking company.

There are a number of ways to obtain training in woodworking, including:

  • Vocational schools or community colleges: These institutions often offer woodworking or carpentry programs that can provide hands-on training and classroom instruction in a variety of woodworking techniques.
  • Apprenticeships: Apprenticeships involve working under the supervision of a skilled woodworker and learning through hands-on experience. Many woodworking guilds and professional organizations offer apprenticeship programs.
  • Self-study: Some woodworkers may choose to teach themselves through books, online resources, or by taking individual classes or workshops.

While formal training is not required to start a woodworking company, it can be helpful in building the skills and knowledge needed to succeed in the business.

Is it important to have a website for a woodworking brand??

Yes, it is important for a woodworking brand to have a website. A website can serve as an online hub for your brand, providing information about your products or services, showcasing your work, and allowing customers to easily contact you or make purchases.

In today's digital age, having a website is essential for businesses of all sizes, as it allows you to reach a wider audience and helps to establish credibility.

A website can also be a valuable marketing tool, as it allows you to share updates and promotions with your customers.

Overall, a website is an important component of a woodworking brand's online presence and can help to drive traffic, sales, and brand awareness.


That's it! Thank you for reading. We wish you the best of luck with your new business!

Want to read more case studies on successful woodworking brands? Check out all of our case studies on Starter Story.

meet the author
Pat Walls

I'm Pat Walls and I created Starter Story - a website dedicated to helping people start businesses. We interview entrepreneurs from around the world about how they started and grew their businesses.