Looking to start a carpentry business? You’ve already taken the first step in the right direction by searching for “how to start a carpentry business?” Starting a carpentry business is a great idea since it is highly profitable. There’s a high demand for carpentry in new constructions and renovations. So let’s see the steps you need to take to become a part of this growing industry:
Conduct Market Research
Market research is the first step in establishing any new business. Conducting market research for your carpentry business will allow you to see a realistic picture of running the business. It will also allow you to specify a target audience from the pool of potential customers and provide a cost-profit analysis for the business.
Create a Business Plan
A business plan, as the name suggests, is a detailed document for a business’s objectives and how it will achieve them. Since all businesses are conducted for profit, a business plan provides the plan for making the business profitable.
If you plan on taking a loan from the bank for starting a carpentry business, you will need to submit the business plan to show that you will be able to return the loan in time. Even if you don’t require a loan, it is recommended to make a business plan to serve as a guidebook for the business.
Here’s a list of contents that a business plan contains:
Executive Summary – a brief explanation of all the contents
Business Overview – description of the business
Services List – list and details of the services offered by the business
Pricing Strategy – list of prices for various services and their breakdown to show cost and profit
Market Analysis – demand for the business services in the marker
Competitive Analysis – other businesses offering similar services in the area
Marketing Plan – ideas on attracting and maintaining customers
Business Positions – various roles and responsibilities of the business
Employee Planning – plans to fill the positions over a timeline
Financial Projection – details of cash flow strategy involving expenses, salaries, and income for the first year of business
If you don’t need to show the business plan to anyone, you can maintain it as a soft copy on your laptop. However, it is advisable to print the document if you need to submit it to the bank. If you print it, don’t forget to add a cover and table of contents to make it easy to skim through the document.
Get a Name
Now that you have a plan for how you will earn from the carpentry business, you need to think of a name for the business. A lot of people register trade businesses under their family names. But you can think of any name as long as it is relevant to your services. You may also want to think of a simple name that is easy to pronounce and remember.
It is advisable to brainstorm a few names as you may find that a few of the options are not up for grabs. That’s right; you cannot just name your business whatever you want. You will have to check with the trademark issuing authority to see if the name is available to register.
Get a Logo Design
Once you register the name, hire a professional designer for the logo design job. The name and logo of your company will become its identity. So make sure to take your time with this step to avoid any regrets later.
Take inspiration from logo designs of carpentry businesses worldwide. Carpentry is a business that adds visual appeal and aesthetics to any space. Therefore, you must get a logo as appealing as the work you aspire to create. You can also reflect your expertise in your logo. For example, if you create modern designs, a modern font and color scheme can make your logo reflective of your skills.
Get a License
Registering the name for your carpentry business is the first step of getting the license. But if you start thinking of a name for your company when you file for a license, you may not have enough time to brainstorm name ideas. As a result, you may register a name you don’t like and waste your money. Hence, separating the step and executing it earlier makes getting a license easier. Now let’s see what else you need to do to successfully get a license:
Select a Registered Agent
A registered agent is a person who handles the documentation of a business on behalf of an LLC. You will need to name a registered person as your agent as a requirement to get the license.
Create the LLC Operating Agreement
The LLC Operating Agreement is a document that defines the framework of operations for a business. It includes details and means of transfer of ownership, governance, responsibilities, profit sharing, voting rights, etc. LLC Operating Agreement isn’t a requirement in every state for a trade license. But it is beneficial for business owners to create this document as it helps them in cases of unwanted demands and requests.
Submit Articles of Registration
As the last step of getting a license, you must submit the necessary documents for establishing your LLC. Since the list of required documents can vary from state to state, you can get help from this link to find the right list for your state.
That’s it! You will soon receive your license once you complete and submit your request. It is also a good idea to register your business for taxes right away.
It is important to note that not all states in the US offer carpentry licenses. You must complete the trade union's apprenticeship program requirements if you live in a state where a carpentry license isn’t issued. Once you complete this program, you will receive a journeyman carpenter card or training verification card instead of a license for starting a carpentry business.
Carpentry comes with many risks. Therefore, getting insurance that protects you and your business should be a priority before you provide any services. Carpenters can benefit from several different types of insurance. These include general liability insurance, workers’ compensation insurance, commercial auto insurance, commercial property insurance, contractor’s tools and equipment insurance, professional liability insurance, and surety bond.
If the different insurances sound overwhelming, you can begin with general liability insurance as a small business. It protects in cases of slip and fall accidents during work, damaged customer property, and product liability. You can add commercial property and workers’ compensation insurance as your business grows. Click here to get started with the process.
Get a Website
There’s no denying the importance of websites for businesses in today’s world. A website for your carpentry business will not only expand your customer reach but will also make it look legitimate and make you appear professional.
Creating a website requires registering a domain, designing the layout, writing copy, and adding photographs, services, keywords, and other elements. While you can create a website yourself, hiring a professional for the job can make a huge difference. As a tradesperson, you must know that already. So get help from Trady.com, a trades, and home services website-building service, for a hassle-free, attractive website that allows customers to contact and hire you online. The online booking portal is an exclusive service that can make it easy and preferable for customers to hire you. Avail of the 14-day free trial by Trady.com to help you get convinced.
Market Your Business
Starting a carpentry business is more than just knowing carpentry. Sure, your work will speak for itself and help you make first-time customers into regulars, but you will still need to market your business to get new customers, especially in the beginning.
You can market your business on social media by creating social media profiles on Facebook and Instagram. You can also establish your business’s online presence on Google, Yelp, and Nextdoor. Moreover, advertising your business through social media marketing and in local newspapers, magazines, and websites are also effective methods. But if you don’t know where to begin, you can, once again, get help from Trady.com. Besides website building services, it also provides end-to-end marketing services for trades and home services. With Trady.com, you won’t have to focus on anything but carpentry.
Start the Hustle
After completing the above steps, you must start getting clients. Now all you need to do is work hard, so your work testifies to the passion and dedication with which you founded your carpentry business. As your business grows, you can take help from the business plan to keep yourself on the right track. Hire more people and expand your services and service areas to serve more customers at once and maximize profits. Don’t forget to showcase your work on social media to build a portfolio to attract more clients.
Starting a business takes courage, time, and effort. But it brings increased profits and the freedom to work on projects you like. Don’t be afraid to take risks. Maintain the quality of your work and your love for it, and you’ll overcome any challenge of owning a business.