Starting a woodworking business can be a highly profitable venture with a lot of flexibility; however, it is important that you plan carefully. Having a carpentry business plan will allow you to borrow funds from investors or the bank to get started. In this guide you will learn what you need to have in your woodworking business plan.
Executive Summary
Your business plan should start with an executive summary. This will describe the purpose of your business, for example selling handmade wooden furniture, and how you will achieve this goal. It should be short and to the point.
Basic business information
Here you will list basic information about your business. This should include hours of operation, how long you’ve been in business, your contact details such as your phone number, email address, and website. This doesn’t need to be extensive, but it should cover the essential elements of your business operation.
Products or Services Offered
Here you will give a summary of the products or services that you will be offering. For example, if you were producing handmade wooden jewelry boxes, you could describe the wood that is used in construction, as well as the techniques you use to produce these boxes.
Management and organization details
This is where you will list who is managing your business. If you are the only person involved in the business right now, it will simply be you. If you have other people working in the company, please detail the organizational structure of your company. Below this list, the ownership structure of the business. This is whether you are running a sole proprietorship, partnership, or a limited liability company.
Marketing plan
This is where you include how you are going to get your customers. This is one of the most important parts of your woodworking business plan because without customers you don’t have a business. For example, if you are going to have a mail order business side, you can include direct mail as a marketing method. If you are going to advertise in home and garden magazines, this could be another method of marketing. List these in bullet point form so they are easy to understand.
Operations Plan
Think of this as spending a day at your business. How will the work be done, from order taking to delivery? This can really help you understand how your business will run and any potential issues or room for improvement.
Financial projections
If you plan to borrow money, this is a very important section. If you are already in business and have a history of earnings, you can include it here. It can then extend into the future based on its past growth.
The key to a successful business plan is to include all the information that is relevant but none that is superfluous. It must be clear and direct so that even someone who is not familiar with the wood industry can follow it.
