How to Start a Carpentry Business With No Money

Do you want to start a carpentry business? If YES, here is a 20-step guide on how to start a carpentry business with no money or experience.

If you intend starting this type of business, it is advisable to first look at the existing laws and zonal regulations in the country or state you reside in to know what is expected of you. You need to pay a visit to regulatory bodies in your country to get information on what you need to do before you can legally open your business.

You can start your carpentry business from a small town in the United States and if you are good at what you do, it won’t be too long before your brand becomes a nationally recognized brand especially if you go into franchising.

Steps to Starting a Carpentry Business

1. Understand the Industry

The carpentry services industry comprises establishments that engage in framing, carpentry and finishing work. The carpentry work performed includes new work, additions, alterations, maintenance and repairs. Activities performed range from the installation of doors and windows to paneling, steel framing work and ship joinery.

The majority of revenue generated by carpentry contractors is derived from subcontracting services to a prime building contractor, while other smaller-scale projects involve contracting directly with the client (typically the building owner, occupier or property manager).

Carpenters experience steep competition from do-it-yourself (DIY) homeowners. The carpentry services industry will continue to experience growth in all parts of the world. Carpenter Contractors of America Inc. is the company with a leading market share in the industry.

Statistics has it that in the United States of America alone, there are about 173,847 licensed and registered carpentry services businesses responsible for employing about 271,505 employees and the industry rakes in a whooping sum of $31 billion annually with an annual growth rate projected at 14.0 percent.

A recent report published by IBISWorld shows that as demand for Carpenters industry services is reduced and the price of key inputs falls, revenue growth for the industry is expected to experience a decline of 14.0%. Industry demand will likely weaken as the value of private nonresidential construction, a major downstream market for the industry, is projected to decline 23.1%.

As a result of pent-up demand, construction markets are expected to make a robust recovery in the outlook period and contribute to industry revenue growth. Over the five years to 2025, industry revenue is expected to grow an annualized 4.7%, in tandem with a rebounding national economy.

Starting and operating a carpentry company can be demanding, but the truth is that it can be rewarding too. One good thing about the industry is that it is open for both big time investors who have the capacity to start on a large scale and aspiring entrepreneurs who may want to start on a small scale.

2. Conduct Market Research and Feasibility Studies

• Demographics and Psychographics

The demographic and psychographic composition of those who patronize carpentry services company cut across businesses such as construction companies, shipping companies, households, players in the real estate industry and anyone who need carpentry services.

Hence the demographic composition for carpentry services business is all encompassing. In essence, your target market can’t be restricted to just a group of people, but all those who need the carpentry services.

3. Decide Which Niche to Concentrate On

In as much as there are no distinct niche when it comes to carpentry services, a carpenter may decide to choose one or more areas where they can specialize in and some of the areas are;

• Cabinet and joinery work on construction projects (on-site fabrication only)
• Fixing wooden roof trusses
• Installing wooden, aluminum and steel doors
• Installing wooden, aluminum and steel windows
• Installing wooden paneling
• Construction of lumber or steel framework
• Ship joinery
• Rough carpentry (scaffolds, frameworks, and forms for concrete, bridges and other large structures)
• Finish Carpentry (stairs, lay floorings, put on moldings and paneling and other trim and finish work)

The Level of Competition in the Industry

The competitions that exist in the carpentry services business goes beyond competitions with carpentry companies; you will be expected to compete with other players in the woodwork industry that also carry out carpentry projects. So, it will be right to say the competition in the carpentry services line of business is tough.

The truth is that no matter the level of competition in an industry, if you have done your due diligence and you brand and promote your services or business properly, you will always make headway in the industry. Just ensure you are well – equipped, your workers are well – trained, your project and finishing and customer care services are top notch and you know how to attract and reach out to your target market.

4. Know Your Major Competitors in the Industry

Here are some of the most popular carpentry services companies in the United States of America;

• Carpenter Contractors of America Inc.
• Lawson Carpentry Inc.
• Weddington Construction
• Nuvo Homes, Inc.
• JL Molding Design
• Nordic Builders Inc
• GoManGo Enterprises
• Savoia Woodworking
• KT Custom Barn Doors
• Tebou Carpentry & Woodworking
• Fournier Home Enhancements LLC
• Green Valley Beam & Truss Co.
• PARZ Designs
• Ninzan Studio, LLC
• Corporate Woodworking, Inc.
• House Of Fine Carpentry
• Allen’s Carpentry & Custom

Economic Analysis

When starting a carpentry services business, you just have to get your costing cum economic analysis right if your intention of building the business is to generate profits, grow the business and perhaps expand the business and start competing at national level.

When conducting costing and economic analysis for your carpentry services business, you just have to critically examine these key factors; place, pricing, and promotion. You have to continue to review these key factors while running your carpentry services business.

It is important to note that truck fueling and servicing and maintenance costs are some of the most important factors contributing to the overall cost of a carpentry services business and should be considered.

5. Decide Whether to Buy a Franchise or Start from Scratch

When it comes to starting a business of this nature, it will pay you to start from the scratch as against buying a franchise. Besides, it is easier to start and run a carpentry services company from scratch without leveraging on a known brand name.

People will patronize your services based on ability, top notch finishing, accessibility and pricing as against relying on a brand name. Please note that most of the big and successful carpentry services around started from the scratch and they were able to build a solid business brand. It takes dedication, hard work and determination to achieve business success.

6. Know the Possible Threats and Challenges You Will Face

If you decide to start your own carpentry service today, one of the major challenges you are likely going to face is the presence of well – established carpentry services companies and of course carpentry contractors and woodwork companies in your target market location.

The only way to avoid this challenge is to create your own market; concentrate on households, individuals and also startup construction companies, house staging companies and startup businesses who need the services of a carpentry company.

Some other threats and challenges that you are likely going to face are mature markets, bad economy (economy downturn), stiff competition, volatile costs, and rising fuel prices.

So also, unfavorable government policies, seasonal fluctuations, demographic / social factors, downturn in the economy which is likely going to affect consumers spending and of course emergence of new competitors within the same location where yours is located.

There is hardly anything you can do as regards these threats and challenges other than to be optimistic that things will continue to work for your good.

7. Choose the Most Suitable Legal Entity (LLC, C Corp, S Corp)

You have the options of either choosing a general partnership, limited liability company which is commonly called an LLC, or a sole proprietorship for your carpentry services company. Ordinarily, sole proprietorship should have been the ideal business structure for a small – scale carpentry service in a small neighborhood.

But if your intention is to grow the business and sell franchise all across the United States of America, then choosing sole proprietor is not an option for you. Limited Liability Company, LLC or even general partnership will cut it for you.

8. Choose a Catchy Business Name

Normally, when it comes to choosing a name for your business, you should be creative because whatever name you choose for your business will go a long way to create a perception of what the business represents. Typically, it is the norm for people to follow the trend in the industry they intend operating from when naming their business.

9. Discuss with an Agent to Know the Best Insurance Policies for You

In the United States and in most countries of the world, you can’t operate a business without having some of the basic insurance policies that are required by the industry you want to operate from. Thus, it is imperative to create a budget for insurance and perhaps consult an insurance broker to guide you in choosing the best and most appropriate insurance policies for your business.

Here are some of the basic insurance policies that you should consider purchasing if you want to start your own carpentry services business in the United States of America;

• General insurance
• Health insurance
• Liability insurance
• Risk Insurance
• Workers compensation
• Building/Property insurance
• Overhead expense disability insurance
• Business owner’s policy group insurance
• Payment protection insurance
• Equipment and Auto Insurance

10. Protect your Intellectual Property With Trademark, Copyrights, Patents

If you are considering starting your own carpentry services business, usually you may not have any need to file for intellectual property protection / trademark. This is because the nature of the business makes it possible for you to successful run it without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.

But if you just want to protect your company’s logo and other documents or software that are unique to you or even jingles and media production concepts, then you can go ahead to file for intellectual property protection. If you want to register your trademark, you are expected to begin the process by filing an application with the USPTO. The final approval of your trademark is subjected to the review of attorneys as required by USPTO.

11. Get the Necessary Professional Certification

Aside from the results you produce, professional certification is one of the main reasons why some carpentry services companies stand out. If you want to make an impact in the carpentry industry, you should work towards acquiring all the needed certifications in your area of specialization.

These are some of the certifications you can work towards achieving if you want to run your own carpentry services company;

• Journeyman Carpenter Certification
• The UBC’s Carpenters International Certification Council, CICC Certification
• Carpenter Certificate and Diploma

Please note that you can successfully run your carpentry business without any professional certification as long as you have the skills and technical ability to carry out carpentry projects.

12. Get the Necessary Legal Documents You Need to Operate

It is a fact that you cannot successfully run any business in the United States without the proper documentations. If you do, it won’t be too long before the long hands of the law catches up with you. These are some of the basic legal documents that you are expected to have in place if you want to legally run your own business in the United States of America;

• DBA
• EIN
• Business and liability insurance
• Federal Tax Payer’s ID
• State Permit
• Certificate of Incorporation
• Business License
• Business Plan
• Employment Agreement (offer letters)
• Operating Agreement for LLCs
• Insurance Policy
• Online Terms of Use (if you have a website)
• Online Privacy Policy Document (basically for online payment portal)
• Company Bylaws
• Commercial Vehicle Operator’s Registration for trucks (especially as it relates to conveying your tool box and equipment to site)
• Appropriate driver’s licenses for drivers (Commercial driver’s license (CDL)
• Proof of ownership, proper identification and vehicle license
• Memorandum of Understanding (MoU)

13. Raise the Needed Startup Capital

Starting a standard carpentry business is not capital intensive especially if you choose to launch the business on a small scale and you are the only full – time employee on your payroll.

Purchasing a truck/van (for easy movement of your works) and of course the purchase of tool box and equipment are part of what will consume a large chunk of your startup capital. So, if you choose to start the business on a small scale, you may not have the need to go source for fund to finance the business.

When it comes to financing a business, one of the first things you should consider is to write a good business plan. If you have a good and workable business plan document in place, you may not have to labor yourself before convincing your bank, investors and your friends to invest in your business. Here are some of the options you can explore when sourcing for startup capital for your carpentry business;

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for loan from your bank
• Pitching your business idea and applying for business grants and seed funding from, government, donor organizations and angel investors
• Source for soft loans from your family members and your friends.

14. Choose a Suitable Location for your Business

Starting a carpentry business comes with its own challenges; it is a business that can be started in any location as long as there are people and organizations that needs carpentry services. You can start your business in your house and still grow the business to profitability since most of the contracts will be carried out on site.

Generally, in business, it cannot be overemphasized that the location you choose to start your business is key to the success of the business, hence entrepreneurs are willing to rent or lease a facility in a visible location; a location where the demography consists of people and businesses that patronizes carpentry services and with the required purchasing power, and lifestyle.

It is important to note that a business facility in good location does not come cheap hence you should be able to allocate enough fund for leasing / renting in your budget. If you are new to the dynamics of choosing a location for your business, then you should feel free to talk to a business consultant or a realtor who has a full grasp of the city you intend starting your carpentry business.

15. Hire Employees for your Technical and Manpower Needs

When it comes to starting a standard carpentry services company, you will need a trucks / van, complete carpentry tools and other related equipment that will aid you in carrying out your job. It is important to state that this equipment can be purchased as fairly used if you are operating on a low budget.

When it comes to choosing between renting and leasing a facility for your business, the size of the company you want to own, and your entire budget for the business should influence your choice. Besides, you don’t need a big workshop/garage to operate from since you will be going out to attend to your clients.

As regards the number of employees that you are expected to kick start the business with, you would need to consider your finance before making the decision.

Averagely, when it comes to starting a standard carpentry business, you would need the services of the following professionals; Chief Operating Officer (you can occupy this position), Admin and HR Manager, Accountant, Carpenters, Truck Drivers and Customer Services Executive / Front Desk Officer.

Please note that if you are operating the business as a one man show, then you must be ready to occupy all of the above positions and also outsource some key functions like bookkeeping and accounting et al to professionals when the need arises. Over and above, you would need a minimum of 5 to 15 key staff members to effectively run a medium scale but standard carpentry business.

The Service Delivery Process of the Business

The operation process of carpentry business depends on the nature of the repair work to be carried out. Basically, carpenters will come or travel to agreed locations to carry out the carpentry project.

When a client calls a carpentry company, it is the responsibility of the carpenters or customer services official to quickly ask useful questions that will help them know the nature of the job to be done, the materials needed and the tools to carry along when going to the location where the client wants him to come to.

When the carpenter gets to the location, he will access the nature of project to be carried out and it could include new work, additions, alterations, maintenance and repairs. Activities performed by establishments in this industry range from the installation of doors and windows to paneling, steel framing work and ship joinery.

The total cost of executing the job will be given to the client and once an agreement is reached, the job will be carried out and the carpenter will be paid as agreed. It is important to state that a carpentry company may decide to improvise or adopt any business process and structure that will guarantee them efficiency and flexibility; the above stated business process is not cast on stone.

16. Write a Marketing Plan Packed with ideas & Strategies

The fact that the entry barrier for starting a small – scale carpentry service is low means that more players will come into the industry if they have the skills and training. In essence, you must come up with unique

So, when you are drafting your marketing plans, make sure that you create a compelling company profile. Aside from your qualifications and experience in the industry, it is important to clearly state what you have been able to achieve in time past. This will help boost your chances in the market place. Here are some of the platforms you can utilize to market your carpentry services business;

• Introduce your business by sending introductory letters alongside your brochure to households, construction companies, home staging companies, shipping companies, and players in the construction and real estate industry
• Engage in roadshow in targeted communities from time to time to market your services
• Advertise your services in community based newspapers, local TV and radio stations
• List your business and products on yellow pages ads (local directories)
• Leverage on the internet to promote your carpentry services company
• Engage in direct marketing and sales
• Encourage the use of Word of mouth marketing (referrals)
• Leverage on the internet to promote your business (when you blog regularly on key issues as it relates to your business, people will consider you an expert in the field)
• Join local chambers of commerce and industries around you with the main aim of networking and marketing your services; you are likely going to get referrals from such networks.
• Engage the services of marketing executives and business developers to carry out direct marketing for you.

17. Work Out a Reasonable Pricing for your Services & Products

One key factor that will help you offer your carpentry services at a price that is highly attractive is to ensure that you source your working materials from sources that will give you reasonable discount.

Another strategy that will help you is to ensure that you cut operational cost to the barest minimum, and channel your efforts towards marketing and promoting your brand name. Aside from the fact that this strategy will help you save cost, it will also help you get the right pricing for your products and services.

18. Develop Iron-clad Competitive Strategies to Help You Win

The carpentry services industry is a competitive industry, and you must come up with a unique and highly creative strategy to be able to outsmart your competitors in the industry. Part of what you need to do in order to stay competitive in the industry is to continue to create easier and cheaper ways of carrying out your projects et al.

In other to stay competitive in this industry, you must ensure that you are always on – time when called upon and always ensure that you pay attention to details when carrying out your job. The truth is that if there are fluctuations in the services you provide, customers can shift allegiance and settle for other options available.

19. Brainstorm Possible Ways to Retain Clients & Customers

When it comes to business, no matter the industry that you choose to pitch your tent in, one of the easiest ways to increase customer retention and perhaps attract new customers is to produce results and satisfy your customers always.

If your customers are satisfied with your products and service delivery, they can hardly source for alternative service providers.

If your services and customer service fluctuate, you are likely going to struggle to get your customers retaining your services. Ensure that you offer your customers incentives if you want to retain them and of course continue to generate repeated sales from them and also to attract new customers.

Part of what you need to do to achieve this is to track progress, results or outputs with the aim of improving on them quickly as the case demands. When it comes to managing your customers and building a loyal clientele base, you should purchase a customized CRM software.

With a customized CRM system, you can easily stay in touch with your clients (you can carry out quick surveys, you can introduce new products and prices to them without any hitch, you can felicitate with them on their birthdays and other anniversaries, you can keep track of their progress, you can send bulk sms and customized e – mails and above all, you can easily receive complaints and feedback from them).

20. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity

If you are in business and you are not conscious about boosting your brand awareness and communicating your corporate identity, then you should be ready to take on whatever the society portrays your business to be.

One of the secrets of larger corporations is that they are willing to spend good money year in and year out to boost their brand awareness and to continue to communicate their corporate identity the way they want people to perceive them to be.

No matter the industry you belong to, the truth is that the market is dynamic and it requires consistent brand awareness and boosting cum promotion to continue to appeal to your target market. Here are the platforms you can leverage on to boost your brand and create a corporate identity for your carpentry services company;

• Place adverts on both print (newspapers and construction related magazines) and electronic media platforms
• Sponsor relevant community – based events / programs
• Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, YouTube, Google + et al to promote your carpentry services company
• Install your Bill Boards on strategic locations all around the locations where you operate
• Distribute your fliers and handbills in target areas
• List your carpentry services company in local directories/yellow pages
• Advertise your carpentry services company in your official website and employ strategies that will help you pull traffic to the site.
• Position your Flexi Banners at strategic positions in the locations where your carpentry services company operates.
• Ensure that all your staff members wear your branded shirts and all your vehicles and vans are well branded with your company logo et al.