Starting a woodworking business can be a highly profitable endeavor with a lot of flexibility, however it is important that you plan carefully. Having a woodworking 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 your business hours, how long you have 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 essentials of your business operation.

Products or services offered

Here you will give a summary of the products or services that you will offer. For example, if you were producing handmade wooden jewelry boxes, you could describe the wood that is being used in construction, as well as the techniques that 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 at this time, 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 company. This is if you are managing a sole proprietorship, partnership, or 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 having a mail order for your business, you can include direct mail as your marketing method. If you’re running home and garden magazine ads, this could be another marketing method. List these in bullet form so they are easy to understand.

Operations plan

Think of this as how you are going to spend a day in your business. How will the work be done, from receipt of orders to delivery? This can really help you understand how your business will perform and any potential issues or room for improvement.

Financial projections

If you are thinking of borrowing money, this is a very important section. If you are already in business and have a history of earnings, you can include it here. Then it can be extended into the future based on your previous growth.

The key to a successful business plan is to include all the relevant information, but not superfluous information. It should be clear and direct so that even someone unfamiliar with the lumber industry can follow.

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