Wood Working and the Recession


gbftats

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Recessions are the perfect time to start businesses. Why? Because you can find very urgent needs to fill a lot easier in times of so-called economic troubles. Plus it helps you find the right customers who aren't affected by the economy who will buy even when things seem bad. It's also a good time to save on property or expansion of existing property if you need a shop.

I say go for it.

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Recessions are the perfect time to start businesses. Why? Because you can find very urgent needs to fill a lot easier in times of so-called economic troubles. Plus it helps you find the right customers who aren't affected by the economy who will buy even when things seem bad. It's also a good time to save on property or expansion of existing property if you need a shop.

I say go for it.

I'm afraid I disagree. There are so many hungry woodworkers out there that its become a highly competitive, low margin industry. Yes, there are a lot of folks who can still afford finely built items but unless you are established, have a reputation and lots of referrals you're not going to be sought after. The latest economic forecast calls for only a 2.0% growth in the economy next year, very close to flat. This will require an even larger capital outlay as you won't be productive all the time. From an investment standpoint you'd be better off finding something that yields a better return, faster.

I'm not sure what "urgent needs" are in furniture or cabinet making. Maybe you could enlighten us.

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A flip of the coin, really. In times of recession or just a downturn, notice how much more advertisements there are in the newspaper. Here the service industries are booming. People are keeping their automobiles longer, repairing rather than trading in. I've be retired for two years, but get calls every month to put tile in some church or hotel or residence. I know some men my age (late 60's) that are busy all the time. The main thing is to always call the client back, be where you said you would be, and do the very best possiblejob you can do. I guess that would apply to about any situation. Good luck.

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Recession is really all about opportunity. Focusing on not enough, scarcity, lost sales, no one will buy, people are cutting back, etc etc...all that does is take your eyes off of blatant and amazing opportunities to expand your business in really creative ways that serve people on deeper levels and make you a freakin hero!

If you have clients in your woodworking busniess that can't afford you because of a "recession" then you had the wrong clients to begin with. I know that sounds harsh, but if you make art for poor people then you will always be poor yourself. (a paraphrase from my good friend John T. Unger)

If you want to recession proof your woodworking business, then you need to

a.) bring your furniture or whatever you make up to the highest quality you can possibly produce and don't ever go down from there. b.) set yourself apart with unique designs that resonate and appeal to a clientèle that is recession proof themselves.

Like I said, this sounds harsh, but it's not. It's business. It's your life. It's about finding opportunities for success in what others call a disaster.

Start looking, and you'll see plenty of ways to differentiate yourself with product, service, or whatever. And chances are, you'll be one of the few doing it, so you'll have plenty of business while everyone else moans and complains about scarcity.

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He's asking for advice on STARTING a new business. He'll have to decide whether or not his market has a large enough recession-proof clientele, what his competition is, what his resources are and whether or not his investment will see returns and how long it will take. Blowing high-minded, philosophical smoke up his skirt and telling him all he has to do is become an elitist id not very good advise.

I know several high-quality furniture builders who have had to rebrand themselves by catering to a lower-income market to stay alive. They're building cabinets, handrails and anything else they can find to support their furniture making habits. :huh:

I'm a strong advocate for dreaming big but you have to keep both feet on the ground, especially in these times.

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Like I stated above and in my first post, this is a great time to START a business. Why? Because you can get one off the ground fast and with little and I mean little start up cost if you take time to search for the opportunities I described above.

The key is taking an objective look at what you have in place right now (like what kind of shop, skills, interests, etc), and then looking for not-so obvious needs to fill with what you have. Can't find a local market? You don't need one. Hit the web.

My top 3 start-up must do's to start strong are:

1.) Get clear on what you can do and where you can use that to meet a definitive need. This might be hard to find, it might not. It all depends on how willing you are to look outside the conventional places and people.

2.) Get online and get there now. It's going to be your platform and your portal to the right people who aren't in your area.

3.) Stay away from any lending or loans to get started. You're only investments at this point should only be your time, the tools you own, and the minute cost of getting a good website up and running.

Some of the most profitable companies today were started during the Great Depression. My family's retail furniture business was started in 1927, on the cusp of the market crash. 83 years later, it's one of the most successful small businesses in the area and one of the oldest. It's all due to how Great Grandpa started it and maintained it. He kept things flexible and adapted to meeting the obscure needs of his ideal customers. It's still the way they do business today.

If you're still thinking of starting a woodworking business in these times, then go for it. It will never be easier to start and position yourself in a profitable niche than it is right now.

Hope that helps clear things up.

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I've been very lucky and work has been steady. I accredit that to having a great customer base and new clients from shows. Word of mouth really goes a long way in staying busy. When times are slow I'll do some finish carpentry work rather than quote lower prices to get furniture work. Once you start quoting low you can have a hard time getting back to where you should be. I just find it better to do something else when times are slow.

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Tough market right now, but I also do finish carpentry and network with all the builders and previous customers I can.

We have even in our down times seem to move forward with cabinets and furniture just by follow up with old customers or networking and trying to find new prospects.

Would like to get to the point of keeping projects going in shop and not work in field as much, but trying to figure out a good marketing plan to get us there.

Easy to get discouraged with the "other guy" who is under quoting me or just plain undercutting me to get a job.

I am a stickler on keeping our quality the same, and not lowering our standards to pick up work.

Qaulity. Honesty. Integrity. Solid principles for a successful business.

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That's a common problem I've been seeing, craftsmen & contractors low balling to get work. The problem is, that it brings down the value of our work for all of us. That's why I firmly believe in holding firm to the value of my skills and work. There is work out there and it will come to you when you least expect it, perhaps running into someone at the grocery store for example. I've been asked to design a store fixture to display dog leashes and collars and one for dog food. It's not the type of work I do now, but I may design the items and pass the work onto a cabinetmaker friend of mine who is looking for work.

I think the most helpful thing to do is to stay visible in some form, keep your name out there. For us it's not location, location, location it's contacts, contacts, contacts.

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I'm a professional. My goal is to stay in business and continue to make a profit.

Therefore, I've been re-examining my business plan, evaluating what sells and what doesn't sell, and making tough decisions about what I make and how I do it.

Instead of lowering my prices, I've been examining how I can raise prices and, more importantly, increase my profit margins. Profit margins are everything. I've been eliminating low margin items, focusing on high margin items and looking at ways to increase the "value added" perception of what I make. If $10 more of my time will produce a $50 increase in price, then that is time well spent. If more time doesn't lead to a better profit, then I need to stop and evaluate how/what I am doing.

Despite the recession, the market is out there. I've had to open my mind to alternative ways of selling and finding non-traditional clients, i.e. non-traditional for me. Sadly, I've had to back off on some fun clients because they weren't really keeping me in business - mainly low-end craft shows. However, I've enjoyed finding new clients that appreciate my work and extra efforts, and are willing to pay accordingly.

Originally, teaching was not in my business plan. However, I've created some teaching workshops that are being well received and provide a little extra income. I'm even exploring reselling some of my materials (mostly forest products) and wood finishing products (I'm a former chemist).

IOW, I'm letting this recession open my eyes to other possibilities.

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I'm a professional. My goal is to stay in business and continue to make a profit.

Therefore, I've been re-examining my business plan, evaluating what sells and what doesn't sell, and making tough decisions about what I make and how I do it.

Instead of lowering my prices, I've been examining how I can raise prices and, more importantly, increase my profit margins. Profit margins are everything. I've been eliminating low margin items, focusing on high margin items and looking at ways to increase the "value added" perception of what I make. If $10 more of my time will produce a $50 increase in price, then that is time well spent. If more time doesn't lead to a better profit, then I need to stop and evaluate how/what I am doing.

Despite the recession, the market is out there. I've had to open my mind to alternative ways of selling and finding non-traditional clients, i.e. non-traditional for me. Sadly, I've had to back off on some fun clients because they weren't really keeping me in business - mainly low-end craft shows. However, I've enjoyed finding new clients that appreciate my work and extra efforts, and are willing to pay accordingly.

Originally, teaching was not in my business plan. However, I've created some teaching workshops that are being well received and provide a little extra income. I'm even exploring reselling some of my materials (mostly forest products) and wood finishing products (I'm a former chemist).

IOW, I'm letting this recession open my eyes to other possibilities.

You're making some very smart business moves. You're right to focus on high-margin items and looking for ways to increase volume.

Marketing is what most folks focus on and, granted, its important. But I tend to see SALES as the most important of the two. You don't see many woodworkers doing a good sales job compared to, say, antique dealers. With them, every piece of furniture has a story. True or not, the story adds to the importance or status of the piece and builds intrigue. Before you know it you're walking out of the antique store with a SYP, stained commode that belonged to Queen Elizabeth II and you have nowhere to put it. But wait 'till the neighbors hear about it. ;)

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That's a common problem I've been seeing, craftsmen & contractors low balling to get work. The problem is, that it brings down the value of our work for all of us. That's why I firmly believe in holding firm to the value of my skills and work. There is work out there and it will come to you when you least expect it, perhaps running into someone at the grocery store for example. I've been asked to design a store fixture to display dog leashes and collars and one for dog food. It's not the type of work I do now, but I may design the items and pass the work onto a cabinetmaker friend of mine who is looking for work.

I think the most helpful thing to do is to stay visible in some form, keep your name out there. For us it's not location, location, location it's contacts, contacts, contacts.

I agree with your thoughts.

What about marketing. We are working the website, and all the social networks. How do I get more exposure without paying out and paying out?

There is only so much capital to go around.

I truly believe in face to face and personal networking works best, but just don't know if you or others have thoughts on other marketing strategies.

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I agree with your thoughts.

What about marketing. We are working the website, and all the social networks. How do I get more exposure without paying out and paying out?

There is only so much capital to go around.

I truly believe in face to face and personal networking works best, but just don't know if you or others have thoughts on other marketing strategies.

One of the things that works well for me is furniture shows and working with galleries. Sending your info to interior designers is also a good way to get the ball rolling. Even something as simple as a flyer left in the paper boxes of target neighborhoods works.

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In response to a lot of people looking to bring in extra money with woodworking, I've decided to host a live Q&A woodchat tonight at 9pm EST. I think alot of what we covered in this thread can be great discussion in the chat. So if you want to take this discussion into a new platform and interact with others in similar positions, then come on over.

You can join via Twitter or jump on the live streaming page here.

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Sorry to hear about the cancelled orders. It does however seem like there is a slow turn around coming, a friend of mine who exhibited at his first furniture show just received a commission for a large dinning table. This came just days after the show. I received a commission and I've been hearing of other commissions coming in as well to both cabinetmaker and furniture maker friends of mine. I think we just need to stay focused and make sure we stay visible. For 2011 my plans are to exhibit at more shows.

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There's a guy about a mile and a half from me that, every so often, sits in front of his garage, with the door open, and his latest wooden model truck sitting on a stool. It's a two car garage that can't fit a car, and I've always driven by just fast enough that I can't tell what stock he has, and every time I go by to talk with him, the door is shut and there is not a soul to be found.

Some of these trucks are amazing, and some are just "meh." And, believe it or not, the street gets a lot of traffic. Especially with the greenhouse down the street and the two houses for sale within one hundred yards of his house.

This may be an example of what not to do, but I get the feeling that he is more hobby woodworker than professional.

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  • 3 weeks later...

Hopefully I will find another employer. The CITB (construction industry training board) offer a £2000 grant for employers who take on a redundant apprentice. That has to help my chances :D

All sorts of things to sort out by the end of the week, sending out job applications tomorrow. The rest is just wait and see.

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Deja Vous mate. I Had just completed my apprenticeship when my employer went bust. I know it is relative and I don't mean to belittle your predicament, but, in those days, 1960s there was almost no word for redundant or out of work, in the dictionary and no hand outs. I had a wife and three year old daughter never mind a 'comparatively' enormous mortgage. In the end I had to either starve or become self employed. That's more than forty years ago and I'm still at it. Bloody fool perhaps. Been lots of times when I've seriously questioned the sanity of it but, Sometimes it is all you can do.

Having said all that, if you can get back in and finish your apprenticeship, get your all important papers, in to-day's climate it will definitely be best. THE VERY BEST OF LUCK.

pETE

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