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# Bill Benitez
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Woodworking Business

Quick Start Guide

How To Start and Operate

Your Own Woodworking Business

A. William Benitez

Published By

Positive Imaging, LLC

9016 Palace Parkway

Austin, TX 78748 USA

Smashwords Edition License Notes

This ebook is licensed for your personal enjoyment only. This ebook may not be re-sold or given away to other people. If you would like to share this book with another person, please purchase an additional copy for each recipient. If you're reading this book and did not purchase it, or it was not purchased for your enjoyment only, then please return to Smashwords.com or your favorite retailer and purchase your own copy. Thank you for respecting the hard work of this author

Copyright 2016 A. William Benitez

ISBN 9781944071073
CONTENTS

Preface

Introduction

One-Getting Started

Two- Woodworking Business Basics

Three- The Business of Woodworking

Four-Getting Customers

Five-Keeping Customers

Six-Shop Space and Tools

Seven-Estimating Cost, Setting Price

Personal Notes

Glossary

Useful Links and Web Sites

A William Benitez Bio

Other Books
PREFACE

Back in 1989 I wrote a book entitled Simplified Woodworking I: A Business Guide For Woodworkers that was published by a small publishing company in Austin, TX. The book was well received by many woodworkers interested in the business of woodworking. It also received good reviews from two prominent woodworking magazines.

Fine Woodworking magazine wrote, "I think the book's greatest strength is the wealth of common sense advice sprinkled throughout.

Woodwork Magazine wrote, "it guides the reader through the potential minefields of contract labor, financial record keeping, IRS obligations, advertising, finding shop space, general organization, and a host of other things never mentioned in many books that wax eloquent on the glory and romanticism of woodworking."

Simplified Woodworking I: A Business Guide For Woodworkers was written when I had over eight years of experience operating my woodworking business in Tampa, Florida and Austin, Texas. It was a down-to-earth how-to book based on everything I had learned about the business by then.

I was reading through a copy recently and realized that it is still a good book with valuable information but now outdated and out of print. I first considered just making it into an ebook but because I learned so many more lessons in the next twenty years of my woodworking business, I decided to use the information in the book and add all the additional knowledge and experience and create it as an ebook.

Woodworking Business Quick Start Guide is the culmination of editing that book and adding twenty years of first-hand experience plus all the other knowledge I gained over the twenty-four plus years since writing the first book.

So this book is comprised of everything in Simplified Woodworking I: that still applies after all these years, the many things in that book that could be updated to be applicable to the present time, and a long list of additional information learned during many more years in the woodworking business.

I think you will find Woodworking Business Quick Start Guide of real value and I would definitely appreciate hearing from you with comments or questions at bill@positive-imaging.com
INTRODUCTION

This ebook, like all my previous books on woodworking, is based entirely on first-hand experience as a full-time, self-employed woodworker. While running your own woodworking business is a lot of work, it's also an adventure that I enjoyed for over twenty-five years. This book is another opportunity for me to share my experiences with you and others interested in operating their own woodworking business.

As indicated by the title, this is a basic business guide and is geared specifically for the one-person woodworking business. In the one-person operation, you are the cabinet-furniture maker, the designer, the sales person, the accountant, the helper, and the clean-up person, all in one. You have a unique opportunity to learn all aspects of the business and your level of financial success will depend on learning it all. This is no small feat and requires a dedicated person who is willing to spend every day learning.

Before coming to woodworking, I worked in my father's construction business beginning as a cleanup person, progressing to helper then to carpenter and builder. Finally, I ran my own business. My experience with building cabinets and furniture was almost nonexistent because as builders we usually hired out the cabinet work.

I took a stab at being a general contractor and built several homes and did quite a few large remodeling jobs, but I got tired of the entire process of coordinating the work of subcontractors. So many times homeowners were disappointed because subcontractors failed to deliver on their promises. While discussing this problem with a contractor friend he asked me, "Do you know how you can tell when a subcontractor is lying?" I couldn't answer that question, so he answered it, "His lips are moving." That is certainly an exaggeration but at that time I could relate to what he meant.

I developed my cabinet and furniture making skills by fine tuning my carpentry and building skills, reading everything I could find about woodworking, and practicing on projects for myself. I also learned that making the best possible use of your present skills is a great way to grow a woodworking business and it is one of the subjects in this book. Getting a successful start in the woodworking business requires taking full advantage of all your abilities, getting paid well for your work, and developing a long list of very satisfied customers to serve as good references for the future.

There are many levels of woodworking ranging from the extraordinarily well designed and constructed heirlooms to basic cabinets and furniture. Contrary to what some publications would have you believe most people are not looking for nor willing to pay for heirlooms. Those who are willing to pay for heirloom quality are often looking for woodworkers with proven track records and a reputation. Even if you do get some of those jobs, unless your skills are up to the task it could be problematic and even if you can deliver an acceptable product, you could wind up making minimum wage or less because of the time involved. I'm definitely not trying to discourage you from building heirlooms for customers, just cautioning that an extraordinarily high level of skill is important for this kind of work. If you have those skills then there is no reason not to accept this kind of project.

Just remember that most prospects for woodworking are looking for good, practical, well designed and built furniture, cabinets, and other wood products that are attractive and will provide years of satisfactory service. If you can build and deliver this quality work rapidly, your business will be profitable. This is what I did for over twenty-five years. During those years I did built a few heirloom quality pieces for customers willing to pay for them but mostly I built much simpler projects that were appreciated by many because it was quality work and affordable.

When I wrote Simplified Woodworking 1 I had developed that term to refer to the basic methods that I was using to make my projects easier to cut, assemble, and finish. Even though I now build cabinets and furniture only for our home, I still use the same basic tools and efficient methods, using hardwood plywood with solid and veneer edges in lieu of solid woods, biscuit reinforced butt joints in lieu of mortise/tenon and other complex joinery, and designs that take the best possible advantage of the wood products used. I also use ball bearing roller drawer slides and European concealed hinges for ease of adjustment and to speed up assembly.

Years ago, I posed the question, "Will people buy cabinets and furniture made in this manner?" Back then the answer was a resounding "Yes!" and now, all these years later, the answer is not only yes but it is truer than ever during our present economic times. There are many levels of quality and the heirloom is only one and the cost of that level places it out of reach for more people than ever. People still need and want good quality, well designed cabinets and furniture but often have to settle for plastic and particle board versions that are manufactured, thrown-together, with low grade particle board covered with a photograph of wood. Many of these people will opt for custom designed, well-built products. This is where you fit in by providing a better product for a fair price while still making a good profit.
One - GETTING STARTED

This is a book for woodworkers who are interested in making money with their skills. Many see woodworking solely as a hobby and as such it can be very satisfying. Since you are reading this book, however, it is evident that you have at least an interest, however small, in making money with your woodworking.

I know from experience that you can start a woodworking business and begin making money from the very first job. This book, based entirely on my personal experiences, will show how I did just that. The woodworking business has been lucrative for me, and it can be for you.

The One-Person Business

This book is geared to the one-person business because that is how I always operated. It was written especially for the person who really enjoys woodworking and wants to make a profit from it. It is also for the person who wants to build and touch every piece that comes out of his shop. It is not for the person who wants to develop a large manufacturing business in which he has little or nothing to do with the actual work. There is nothing wrong with that kind of business, but it is not the topic of this book.

Each of us has a different story and start in woodworking for various reasons. The one thing most of us have in common is a love for working with wood and creating beautiful things that others admire and sometimes buy. Our backgrounds will certainly vary. In my case, my father was a general contractor who built homes and commercial buildings and I was obliged to work with him regularly beginning at age twelve. My Saturdays and summers were spent working in construction. I learned many lessons during those years in construction, but from a business standpoint the most important one was to never speculate. My father always contracted every job and knew exactly what he would get paid before the job began. That lesson proved extremely valuable in my woodworking business.

While the many lessons I learned from building homes and commercial buildings were valuable, it was not the same as learning to build cabinets and furniture. As contractors, we hired cabinetmakers to build and install the cabinets in the homes we built. I didn't actually build a cabinet until I built my own home. Those first cabinets turned out well, but it was a lot of work because my lack of cabinetmaking experience ensured that many things were done the hard way. Nevertheless, I learned a great deal from the experience.

Because of my construction experience I was offered a job as a housing inspector with the Urban Renewal agency and worked for various government organizations for over twelve years before leaving to start my own small publishing and consulting business based on my government housing experience. I operated my business until government funding dried up for housing programs and then I returned to construction.

Starting with Your Present Skills

I no longer had a truck, so I purchased and outfitted a small trailer with all my tools and began taking on small jobs for other contractors. I began to specialize on finish carpentry which included installing doors and moldings of all kinds. I had always been proficient at door work and began advertising that in small weekly newspapers. I got work from homeowners and many contractors who hired me to install doors for a set fee per unit. They appreciated knowing exactly how much things were going to cost instead of facing any hourly amount and I enjoyed it also because as a fast worker I made more money.

This kind of work was the perfect way to move gradually into woodworking. The door work kept the cash flow going and allowed me to be selective with my woodworking and make certain that I didn't take jobs that were beyond my limited experience. As my experience grew and the woodworking jobs increased, I began doing woodworking jobs exclusively.

You can also start your woodworking business by specializing on the jobs you are good at already. If you have been doing woodworking as a hobbyist for any time, then you have probably completed some projects. Those projects are an indication of the kind of work you already know how to do and also allows you to collect photos of them for an album.

Specializing

Specialize on jobs based on your strongest skills. This doesn't limit you to just those jobs. As a woodworker you can tackle many different jobs but specializing will bring you mostly jobs that you are good at and will ensure that you finish them quickly and maintain your cash flow which is critical to making a living. Even though you need for jobs to continue coming in, never accept a job that you are not confident you can do. A bad job can have a serious, negative impact on your reputation.

Each new and different job is an opportunity to learn. If you're not sure about how to proceed, ask someone, check the Internet for information and videos, and also read books and magazines that cover the topic. Use these methods to learn but don't just follow them to the letter. Use the information to develop your own methods.

Study

I studied many methods in books and while visiting furniture stores to check out how manufacturers made their furniture. I learned a great deal, but it was obvious that I had to alter the methods to fit my tools and the products that were available to me. Mainly I wanted to use all that information to developed simpler methods that would help me build cabinet and furniture faster while still maintaining quality.

Use all the ideas you glean from books, magazines, and stores as a basis only. There are many different ways to build things and one is not necessarily better than the other. Keep an open mind, learn from others, and be creative. Don't hesitate to try out your own ideas. Once you figure out a method that may work for you, try it out on the next project and practice it on projects for yourself. This way you benefit while becoming proficient at the method you have developed.

When you find a project you want to build in a magazine, study it carefully and figure out other ways to build it. Find ways to make it better and simpler to build. Woodworkers who write for magazines are highly skilled and have extensive experience, but they don't have all the answers. They are proficient at their own methods but those are not the only methods and another woodworker would probably build it differently and you can do the same.
Two - BUSINESS BASICS

Some books on the woodworking business tell you how to make and sell certain items at wholesale, retail, or even on consignment. These methods can result in profits; however, the difficulty with them is that they require you to speculate by investing your time and money in products that may or may not sell. Before you can realize a profit or just break even, you must purchase materials, make the items, and then sell them. Many woodworkers have found, after many hours of work, that some items simply do not sell. Moreover, the items may sell at a price so low that you receive less than minimum wage for your time.

Commercial Grade Tools

Others are certain that running a woodwork business for profit requires large and costly machines and tools. Certainly there are many machines that can make certain jobs easier and even more precise, but they are not essential to the financial success of a woodworking business. They can often be a detriment because of their high cost. A great number of sales are required to support their initial cost and maintenance. Some large machines pose the additional problem of requiring more people to operate and maintain. This involves payroll which is often problematic for a one-person business. While this book can be of value to a small business with employees, it is geared to and based entirely on the experience of a one-person business and explains how you can avoid payroll while still having help when needed.

Another misconception is that a woodworking business must have a large shop space to succeed. Obviously, the more space you have the more convenient it will be but you can function profitably in a small shop space as I did for many years. I began my woodworking business in a 12 X 24 foot space and one of my woodworker friends functioned for years in a 20 X 20 double garage. So, in communities where it is permitted, you can start your business in your own garage.

The size of shop you will need may be determined by the size of jobs you are willing to accept. If you intend to build kitchens for homes, you will need a generous shop space because complete kitchens require a lot of shop floor space and if you are working on more than one kitchen at a time a small shop will be problematic. To avoid facing these problems determine the size of jobs that you will accept when starting out.

From personal experience I can say that many projects can be built in a 12 X 24 shop space and a double garage will facilitate even larger jobs. Neither of those shops will be a good fit for a large kitchen job even though you could handle a small kitchen easily in a double garage.

Large jobs such as kitchens also pose the issue of help to build and install them. This means you will have to hire someone and that brings us the problem of payroll. I found the best way was to handle the building of the cabinets myself and then hiring a person for a day or two to help with carrying the cabinets to the job site and installing them. By hiring only temporary help you avoid all the problems created by regular payroll.

Pitfalls of Expansion

1985 was a good year for my woodworking business in Tampa. I had a large backlog of work and believed that I could make more money if I hired someone to help me. I knew the problems that payroll could cause me so I worked out an arrangement with a "cabinetmaker" who was recommended to me. The deal was that I would furnish the space, the tools, and the materials; he built the cabinets for a contract price.

Up to that time I simply made detailed sketches and drawings of my work since I knew what I wanted. Now things changed. I have to make detailed drawings with concise explanations. To make certain this "cabinetmaker" knew exactly what I wanted required me to make assembly drawings. Even with these drawings, I had to make concise cutting list because even though he could cut the materials, he seldom considered the best use of the sheet goods and often wasted material. I finally had to make drawings showing how to cut the plywood sheets in order to reduce waste. Without a computer program, this took a lot of time.

Eventually, I began doing all the cutting and had him doing only the assembly. Then I had to supervise the assembly because he had difficulties in spite of the detailed drawings. I was putting in many extra hours to get out the work and to see that he did the same. I went through six months of this thinking that he would become accustomed to the methods and require less supervision and involvement. Unfortunately, that was not to be.

The outcome of having this subcontractor in my shop was that I actually doubled my gross income from the previous year. At first that seemed like a good thing but in fact I had worked almost twice as many hours and my net income was lower than the year before. I was still producing good cabinets but working harder and making less. It was frustrating and made no sense, so I started the next year working alone again and just hiring helpers for cabinet or furniture installations and delivery.

I'm not saying that you would have the same experience but if you decide to get this kind of help, analyze the results carefully. Just because you have more gross income doesn't mean that you are making more money. The main consideration should be what you make after all the labor, materials, and related costs are paid. Also, make certain you keep track of the time you put in yourself. Even if you make a little more money, it doesn't mean much if you are working twice as much.

Contract Labor

When you do need help it's best to hire a subcontractor instead of an employee. However, it's critical that you know the definition of subcontractor. If you hire someone and treat them as an employee, calling he or she a sub-contractor will not impress the IRS and you could be in for some costly problems.

The first thing to remember is that a subcontractor is a self-employed person and must do the work for you based on a contractual arrangement and not an hourly wage. He or she is not an employee of your company. A person who works for you during hours that you schedule and for an hourly wage will be considered an employee even if you consider them a subcontractor. The safest way is to make certain that the person you use as a subcontractor has other customers for whom he or she performs similar work on a contract basis. This is critically important because if the IRS deems someone who you call a subcontractor to be an employee you could be subject to serious and costly penalties that could ruin your business.

If you really need to have employees and want to avoid the headaches it may be possible to work out an arrangement with a temporary employment agency who will handle all the payroll aspects for you for a set fee.
Three - THE WOODWORKING BIZ

Business can easily become complex so it's best to strive to keep things as simple as possible and avoid complications that consume time and money. In this chapter I outline what I believe to be the simplest possible methods for handling the administrative and record keeping tasks of your woodworking business.

These tasks include setting up and maintaining checking accounts, reserves, deposits, invoices, contracts, credit, and taxes. Each of these is important to the long-term success of your business and for remaining out of trouble with local, state, and federal governments.

When I started my woodworking business I had years of construction experience and some woodworking experience, but my business experience was limited. The result of that lack of experience was many costly mistakes that could have been avoided with a little guidance from someone with experience. In this chapter I will try to help you avoid those same costly mistakes.

Licenses and Taxes

Some communities require a license to run a business where others have no license requirement. In Tampa I had to purchase a license to run my woodworking business. When I moved to Austin, TX there was no such requirement. However, both Florida and Texas required the payment of a Tangible Tax for the tools and equipment you owned and used for your business. They both also required that businesses obtain a Sales Tax License and collect sales tax from their customers.

Depending on the volume of your sales you can either pay the sales tax you collected to the state monthly or quarterly. For really small business you can even pay it annually. However, you arrange to pay the sales tax collected, the important thing is to keep a good accounting of the amount collected and pay it promptly on or before the due date. Failure to pay on time increases your cost because of the penalties.

Checking and Savings Accounts

No matter how small your woodworking business, it's important to have a checking and savings account just for your business. It's unwise to mix the income from the business with your personal accounts. All the income from your sales should be deposited into your business checking account and then pay yourself to add funds for your personal account.

Your business savings account serves for depositing a percentage of all your business income to pay your income taxes and for the purchase of new tools and the maintenance of the tools you owned. A savings account with reserve funds can save you from using credit which will increase your monthly payments.

Business Supplier Credit Account

As your business grows it becomes easier to open credit accounts with various suppliers. If you do open these accounts, make certain that you only use it to buy materials for specific jobs for which you are getting paid. Having an account makes it easy to buy and the statement at the end of the month can often come as a surprise. You can avoid that by keeping track of your accounts.

I had several such accounts for my woodworking business but now I use one business credit card for all my purchases. This makes it easier to keep track of your expenditures and limits you to one payment each month. Avoid making minimum payments at the end of the month. Charge only what you can afford and then pay it off in full at the end of each month.

C.O.D. Supplier Accounts

Most suppliers will be glad to open a C.O.D. account for your business, so you can benefit from the contractor discounts without exposing yourself to credit problems. With these accounts you would either pay for products with cash, check, or credit card when purchased so the bills would not accumulate.

With this kind of account, you will only have to concern yourself with fixed expenses such as rent, gas, electricity, etc.

Bank Credit

Some businesses with good bank credit borrow money to start and operate their business. This is not a good idea for a one-person business. It is possible that a small business can borrow funds and succeed financially but it is a risk when the financial success of a business is based on the activities of one person. If you do decide to borrow to fund your business, establish a line of credit and then only pull money out as you need it. This will reduce your interest cost and your credit exposure.

Customer Funding

Instead of borrowing money it is best to start every job by collecting a deposit from your customer. In most cases that deposit should be 50% of the total cost of the job. I suggest that you make that a policy of your business, so you won't be tempted to start jobs without the deposit.

Deposits serve two important functions. The first is to fund the materials for the job so you don't have to use your credit for this purpose. The second, and I believe even more important, is to serve as insurance that you will be paid in full but even if the owner fails to pay the final payment for any reason, you will still have your out of pocket costs covered by the deposit.

Unless you fail to perform as agreed, there is no reason for the customer not to pay the balance of the money. However, things can happen and either intentionally or for reasons beyond his or her control, the customer may fail to make the final payment. This will definitely impose a hardship on you that I hope you never experience but with the deposit your costs will be covered and you will just be losing your labor.

You may be thinking that you can take legal action against the customer for failure to pay you the balance due and this is certainly possible. However, it can be a costly situation and even if you win, the end result could cost you more than just walking away.

Contracting

The importance of a simple contract can't be overemphasized. You should not request, nor should any customer pay a deposit in any amount without a signed contract describing all the work that will be done and the cost involved. The contract should also state the date of execution and how long it will take to complete the job.

Your contract should not be a legal nightmare, but it should clearly cover everything involved in the job so that both parties have a clear understanding of what is expected from each of them. I have copies of the contract and related forms that I used in my business for many years at the following web site:

http://woodworkers-business-guide.com/forms.html

Feel free to download them and make use of them but since I am not a lawyer I offer them only based on my use and in no way guarantee that they are legally sufficient. I offer no legal advice whatsoever regarding these forms or any aspect of running the woodworking business or any business. For legal advice I suggest that you contact a qualified and certified attorney. What I will offer is my belief that a contract is basically a signed agreement between two honest people who intend to perform the tasks described in the contract form. If either party is dishonest and has the secret intent of cheating the other party, the contract could then prove insufficient. Contract or not, it is important to know as much as possible about the people you are dealing with on any transaction.

In addition to the contract form you should have a simple letterhead to formalize any written communications from your business and a specifications form to detail as much information about the cabinets or furniture that you will be building for your customer.

Photo Album, References, and Web Site

To get customers for your woodworking business you must convince them of several things including your skills, your honesty, and your reliability. A photo album with good pictures of jobs you have completed will help you convince potential customers that you have the skills needed to do their woodworking project. The album can be in paper or it can be on a computer screen such as an iPad, Kindle Fire, Microsoft Surface, or any other kind of tablet. It can also be on almost any laptop computer. If you use your computer or tablet as your photo album, don't depend on your web site for this use as you may experience difficulty connecting to the Internet in some homes or buildings. Your computer based photo album should be a file on the computer that can be opened anywhere with or without an Internet connection.

You should also have your pictures and complete details, including contact information about your business on a web site so they are available to any potential customers 24/7. This web site address should be on your business card, letterhead, and all other documents you use for your business. Any time you speak to anyone about your business tell them about your web site.

Deposit Resistance

My experience over many years in the woodworking business was that if potential customers developed a trust for me during our first meeting, they gladly paid the deposit with an appropriate contract. In all my years I only ran into one customer who absolutely refused to pay the deposit and I didn't do their job. This was an interesting situation because I had completed a job for their next door neighbor who recommended me highly and they were able to view the work I did. Nevertheless, they refused the deposit and called me several times to encourage me to accept the job anyway. I had to finally refuse to do their job adamantly to stop the calls. However, that was one potential customer out of hundreds over the years and even for large jobs I faced no resistance.

If you begin doing large jobs for big corporations or government agencies you may have to decide whether to establish a special policy for them. This could be necessary if you decide to do work for these organizations. Many large corporations work exclusively with purchase orders. They order products or services using a purchase order and then pay for those products and services based on an invoice sent after the services have been completed or the products have been delivered. Some corporations will relent if you have something they really want and pay your deposit but to establish a good relationship with some of these corporations will require adherence to their policies.

Government agencies work in a similar manner. They are seldom willing to pay a deposit for any product or service. They also issue purchase orders and then pay from an invoice or a statement. You will have to decide if this work is worth waiting for payment. I did very little work for government agencies but I did a large job for the Internal Revenue Service once and it took them 90 days to finally pay me. That posed a difficulty for me because it was a large job and I paid for all the materials out of pocket. I suggest that you make the decision as to whether to do this kind of work based on need. If you have a large backlog of work without dealing with corporations and government agencies who refuse to pay your deposit, I suggest that you turn down the work.

Turning the work down doesn't always mean that you will not get the job. I once quoted a job for a large corporation and they absolutely refused to pay the deposit. I walked away from the job and told them I did not work without a 50% deposit. I didn't hear another word from them but two weeks later a check from them for the deposit appeared in the mail. I got the contract signed and did the job for them. So, stand your ground on your policy and you may get the job anyway.

Small Jobs

There may be times, especially when you first start, that you get small jobs that can be completed in one day and the deposit/contract arrangement may be a waste of time. I suggest that you do these jobs on the spot and simply collect the full amount upon completion. Often these jobs will be paid in cash or with a credit card so you can be sure that you receive full payment for your work.

Accounting

Having a separate checking and savings account is important but you also need a separate business credit card for all your purchases. Once you have these then you need an accounting method to keep track of all your income and expenses. There are many ways to do the accounting for a one-person business. You can even handle it using your bank statements and this is even easier now with online banking.

Over the years I have used the statement method and Quickbooks to maintain my business accounting. However, I have always hated accounting and this meant that I always waited until the last minute to prepare my sales tax reports and to do my annual federal income taxes. This feeling eventually led me to an excellent, online program that I now use for my accounting.

For only $9.95 per month you can have most of your accounting done for you by a web service formerly known as Outright but now called GoDaddy Online Bookkeeping. The main requirement to use this service is to have all your business income and expenditures handled separately from your personal accounts. Since you should be doing this anyway, it should pose no problem.

To use this online accounting service you simply open an account with them at:

https://www.godaddy.com/email/online-bookkeeping

Fill in all your checking, savings, and credit card information and GoDaddy will regularly scan these accounts and list the information for you into the correct categories. While they do a pretty good job of pulling all your data from your accounts, they sometimes select the wrong category for certain expenditures. When that happens it's easy for you to go into your account and correct that listing and it will be placed correctly each time it arises in the future. After a couple of months all your income and expenditures will be accurately recorded and ready for you to create the reports you need at any time. This service will save you the time and frustration of handling your own accounting.

Internal Revenue Service (IRS)

We all have to pay taxes and small business owners are not exempt. However, one-person business owners sometimes face large tax bills for which they are unprepared because they didn't pay their taxes quarterly or failed to save money in a reserve account to pay their taxes at the end of the year. This can be a serious problem that can be avoided with two simple steps.

Step one was mentioned in the previous topic and that is accurate and up-to-date accounting of all income, expenditures, and depreciation. The methods previously described works well for your income and expenditures, but you have to make certain that you handle depreciation accurately. In the woodworking business you will have a lot of equipment and as long as you are using it for the business the cost can be depreciated, and the depreciation can be deducted from your income taxes. So, it is definitely worthwhile to maintain an accurate level of the depreciation of your equipment. If you deduct it from your income tax, the IRS will insist upon good records.

While it is important to report all your expenses and other costs to the IRS to reduce your net income for tax purposes, it's more important to the IRS that you report all your income. It is sometimes tempting for self-employed individuals to avoid reporting income to the IRS. This is especially true when customers pay in cash. This can be a costly mistake and could cost you much more in interest and penalties then what you would have paid in taxes in the first place. I suggest that you report all your income and then take as many legal deductions as you can. Even if the IRS has a problem with your deductions, worse-case scenario they will disallow the deduction. However, intentionally under reporting your income can be a criminal offense and cause you serious problems.

If your income from your woodworking business is a significant amount you should definitely pay your taxes to the IRS on a quarterly basis. They will provide you the necessary forms for this purpose. If you decide not to go this route, remember that you may be required to pay interest and penalties on your income at the end of the year. It is critical that you save enough for this.

In spite of your best intentions you may face the situation of being unable to pay the taxes you owe. If that happens, fill out and file your income tax forms and send a check in the amount that you can afford. Call or write the IRS, explain your situation, and ask for terms to pay the balance owed. They will create a payment schedule for you that will include the interest and penalties involved and you can settle up with them over a few months. Don't think that if you don't file they will assume that you eventually plan to pay them. The longer you wait to acknowledge and deal with your financial obligation the more it will cost you.

Remember that accuracy on your taxes is critical. If you are audited they will check everything. In 1987 I was audited by the IRS. They began by conducting an interview during which they asked me a long list of questions. That was followed by a close inspection of my shop to make certain I did in fact own all the equipment that I was depreciating. Finally, they spent two days going through all my records. Throughout the entire ordeal the two IRS officials were courteous but very professional. When it was all over they informed me that I had made many mistakes and I prepared for the worse. As it turned out, many of the mistakes I made were against myself and I wound up owing an additional $149.00 in taxes. I breathed relief and wrote them a check for the balance.

After undergoing an audit, my advice is to keep an honest accounting of your business income and expenditures, be completely honest with auditors and admit if you don't know something. Report all your income and keep your business funds separate from your personal funds. If you do these things you have nothing to fear from the IRS.

If you decide to do your own taxes I recommend TurboTax Online which I have been using for over five years. They have a system that is perfect for the one-person business and guides you through the entire process through electronic filing. You can connect with them at:

https://turbotax.intuit.com/personal-taxes/online/
Four - GETTING CUSTOMERS

Customers are critical to the success of any business and the same applies to woodworking. No matter how great your skills, there is no income without customers willing to pay for your work. I'm certain this sounds painfully obvious but it's amazing how many people forget this and make little effort to get and keep customers.

Advertising

You need customers and advertising in some form is the best way to get potential customers to know about your business and consider purchasing your services. Most people believe that advertising is costly and hard to come by and that can be true but there are many ways to advertise without spending a lot.

Start by contacting everyone you know and telling them about your business activities and ask them to tell their friends and family. Send out an email to everyone you know and don't take the lazy route and send one email to everyone you know at one time. In the first place, it will probably be considered spam and either your email service will reject it all or the individuals who receive it will believe it to be spam and simply delete it.

An introductory email should be handled like an introductory letter, one at a time and personalized to the extent possible. If you know the party personally, send an email to him or her alone and include something personal in the message. The way I do it is to type out the message that I want to send and address it to myself and then save it as a draft. Then I compose an email to the first person on my list and copy the letter from the draft, paste it into the email and then edit it with an additional sentence or two that makes it personal. This increases the odds that the email will be read. Yes, it is much more work but what's the point of sending out a hundred plus emails if most of them will be trashed.

Another low-cost way to reach many people is using a poster service to spread your message around the community with flyers in local locations throughout the community, Many communities have services that will handle this for you at low cost or you can find locations on your own.

A sign on your vehicle will ensure that people can read about your business no matter where your vehicle goes or is parked. I had made a hand carved sign and fastened it to the tailgate of my truck and it brought several jobs. Once a man followed me for quite some time until I parked and then he walked up to me to discuss a woodworking job.

For a one-person business advertising should be handled on an on and off basis. For example, advertising in the services section of the newspaper classified or in one of the weekly papers may bring you some jobs. Continue this advertising for as long as you can afford it or until you have a sufficient backlog of work. Then remove the ad until your backlog shortens and then place it again. If you don't plan on growing your business beyond one person there is no need nor is it a good idea to create a backlog months long. It's best to save the advertising dollars until you need them.

I don't believe the yellow pages are a good investment for a one-person business any longer but if you decide to try it don't let a sales rep sell you a large, costly ad. Stick to a simple listing to keep the cost down.

Check local web advertising because many people today search for every service on the web and a presence there could be helpful but watch the cost carefully. This can add up rapidly and may not work well for your business.

I used postcards to reach potential customers in various subdivisions. I would get all the addresses from directories at the library for free and then have inexpensive cards printed. Then I would address them and stamp them myself to keep the cost down. The response to the cards was not great but I did get some work over the long term. Many people kept the cards even though they had no need for my service at the time. I got calls from the postcards over a year later.

Email may serve the same purpose, but you must be careful with email because sending unsolicited email can get you in trouble with your Internet Service Provider and it makes many people angry and that doesn't encourage calls. My suggestion is that as your business progresses you create a mailing list of email contacts of your customers. Over the years this list will grow and they would welcome emails from you about helpful ideas and perhaps some special service you are providing. It's a great way to keep in touch with your customers so they keep thinking of you when your services are needed. As an extension of this you can keep customers and others aware of your services using social media such as Facebook and Twitter. The Pinterest service is a great place for pictures of all your work also. Using these methods keeps people interested in your services and cost you only time.

The phone is still a critical part of doing business and should be part of every ad no matter where it appears. While it's great to have someone answer your phone at all times, at least make certain you have a good answering machine and follow up on calls promptly. I suggest that you use a cell phone for your business so that you can handle calls at any time. When someone wants a job done they will start calling and unless they already know you they will probably hang up on an answering machine and just call someone else to do the work. Especially when you are getting started it's important to answer every call and be prepared to make an appointment.

References and Samples of Your Work

Advertising will get you the calls but then you have to convert the prospects that call into customers. To convert from prospect to customer they have to be convinced that you have the skills to do the job and they can count on your reliability to show up and deliver as you promise. When you are first starting it's difficult to convince prospects of this. Start by creating a good rapport with the prospect. Be completely honest about your capabilities. Don't exaggerate or give sarcastic answers to questions. Instead take the time to explain everything clearly and answer any questions that come up fully. Try to make an appointment so you can see the job and speak to the prospect face to face.

Once at an appointment ask lots of questions and write down everything. If the job is simple enough to just give an estimate on the spot then do that. If drawings and specifications are required, take down all the information you need and make an appointment to bring the drawings and the estimate. When you return with the drawings, explain them in detail and answer any additional questions. The more patience you exhibit here the better your chances of getting the job. You want to be sure that the prospect is totally convinced that you know what you are doing and will do a good job for them.

Your presentation is more important that your price many times. There were many times when I got jobs when other bidders were lower. I usually found this out later as the job progressed and the customer felt more comfortable with me. On one job the customer told me that my price was 30% higher than the low bidder. When I asked why he gave me the job anyway he said that once I explained everything he was convinced that I knew more than the other bidder and would do a better job. On another job the customer called me a couple of days after I submitted my proposal and said that he liked my drawing and the way I explained everything, but my price was much too high. He asked if I would consider lowering the price at least 15%. I refused and suggested that he give the job to the lower bidder. He said OK and hung up. Three days later he called and asked me to bring the contract and pick up the deposit. That's what you should strive for with your presentations. The important thing is not to be the lowest bidder but to be the best bidder.
Five - KEEPING CUSTOMERS

Getting customers is certainly an important aspect of any business but once you have them it is critical to keep them. You might think that once you have completed a large job for a customer you may never see them again. That is certainly a possibility but it is more likely that eventually they will call you for another job. The more important thing in the short term is that they will brag on your work to their friends, family, and associates and this will bring you new jobs. Your goal on every job you do should be to create a good reference for future jobs and future customers.

Satisfying Your Customer

Make every effort to satisfy your customer fully. Fulfill all the specifications of the job and every promise you made to the customer even if not listed on the specifications. Make certain the job looks good by building it properly and applying a good finish. Install everything carefully and fully level. Ask and answer questions as the job progresses. Maintain communications with the customer and encourage he or she to interact with you so you know exactly how they feel about the job as it progresses. If they have a concern with something on the job, fix it promptly and without argument.

Treat the customer with dignity. They probably won't have your knowledge of woodworking so don't be condescending when you explain things. Explain everything in as much detail as possible even if they don't understand it. Talking down to customers causes alienation and will almost certainly render your customer a poor reference. You want the customer to talk about you to others in a positive manner not saying, "His work is great but he is really rude and difficult to get along with." That could keep you from getting other jobs.

Listening carefully to your customers is always a good idea. It not just important that they have the impression that you care what they think, it's important that you really care what they think. People can often tell when they are being put on and that isn't the impression you want to give. If a problem comes up, remember that courtesy is the rule. If there is a difference of opinion, avoid an argument. If there is a dispute, find out promptly what it will take to resolve the issue and follow through to resolve things. The customer should feel that your primary goal is to please them with your work. Sometimes, just a minor effort on your part can resolve a dispute. The right attitude will almost always contribute to the resolution.

Dealing with Complaints

No matter how good your work is, you may face some complaints however minor. Obviously, it's important to do the best work possible but things can go wrong, or you may misunderstand something, and it creates a problem. It's not critical to avoid problems, the critical part is how you handle them. Properly handled complaints can turn out to be a positive thing.

I rarely faced complaints regarding my work but any customer that did complain remained a loyal customer indefinitely because of the way I handled their complaint. First, I listened carefully and acknowledged there was a problem and that I would correct it immediately. If it was a phone call, I immediately made an appointment to correct the problem no later than the next day and often the same day. Even if you feel that the problem should not be your responsibility, analyze the situation carefully. Is it really worth upsetting a good customer in order to be right? In most cases it's best to just take care of the issue. And, I don't mean saying, "Well, it isn't really my responsibility, but I will take care of it for you." That may sound good but it comes off as, "You are wrong but I will do you the favor anyway." This is not a good idea. Either explain why you can't do it because it is either his or someone else's responsibility or just take care of the problem pleasantly.

This is important because every customer interaction can either lead to more work or referrals or to a negative feeling which precludes more work or referrals. If you want to remain in business and continue making money, you need more business and the referrals. And how you react to situations will be the deciding factor.

As an example, a customer for whom I had already done over $3,000.00 worth of work, called me about building a telephone desk for their kitchen. I went to see them, and she told me that the model home about two blocks away had exactly the desk she had in mind, so I could go look at it there. Since she had explained what she wanted, I decided to draw up a desk for them. They liked the drawing and I built the desk and installed it their kitchen area. It was a really nice desk, but it was nothing like the one she saw in that model home. It was exactly like the drawing which they had approved, and I could have just ignored her desire for something different. Instead, I apologized, told them to keep that desk for now and I would go see the desk she wanted and build one for them.

Two weeks later I arrived with the new desk and they were thrilled. They could not believe that I had gone through the trouble of building a new desk for them. I took the desk that I had previously built to my shop and used it in my office for many years. The new desk was small and didn't take me long to build but the gesture of just building it at no charge made them one of my best referrals. They owned an insurance agency and I got tons of jobs from recommendations to their customers. No amount of advertising would have gotten the amount of work I got because of building that desk.

I had few bad situations, but one was a troublesome conference table. I thought it might pass and I was short on cash, so I delivered even though I knew better at the time. The customer just did not like it so I offered to build the entire thing again and I did. It was a large job, but the second table was excellent, and they loved it. Instead of it being a problem they gave me a lot of other work in their offices.

There may be times when you make a mistake or exercise poor judgment or just fail to please the customer. The important thing is how you handle the situation. If you fix it promptly, willingly, and without lip service, it will benefit your business. If you handle it negatively it will cost you in the long run and not just with that customer. There is a saying that a pleased customer will tell another person about a good job and a displeased person will tell 9 people about a bad job.

Here is an opposite example. I once got called to an office to give an estimate on a filing cabinet. When I arrived I noticed that all the furniture in the office was custom made and recently built so I was wondering why they called me. Anyway, I gave them the quote and got the job. I then built and delivered the filing cabinet. They then asked me to build an entire set of office furniture for their second office. It was a big job but I was still wondering what happened with the new furniture in that first office, so I finally asked the secretary. As it turned out the guy that built all the desks and other furniture was asked to come back and install locks on the desk drawers. He told them it would cost $16 each for the locks. (This was many years ago) They told him that the top drawers in the desks should have had locks, so they shouldn't have to pay but he was adamant about it. It made the owner angry and that's why he called me for the filing cabinet and was now using me for a job involving thousands of dollars of office furniture. Naturally, I was glad he refused to install the locks since it brought me a lot of work, but he gave up thousands for $32.

Working for Contractors

Contractors can be good customers but dealing with them can be problematic. First, they are seldom willing to pay a deposit in advance even on the largest jobs. Another problem, even with contractors who want to pay you, is that they are dependent on bank draws which are dependent on inspections. If they fail to get the draw they won't pay you. Some contractors will just keep putting you off and never pay you what they owe. Or, they will settle with you for a reduced amount and you may accept because things are slow and you are desperate for cash flow. Some large developers will hold out on contractors until they are ruined and have to go bankrupt which then leaves you without a payment. Even if you are dealing with an honest contractor he could handle things badly and wind up filing bankruptcy and you wind up trying to settle for a fraction of what you are owed.

This is not an indictment of all contractors but unfortunately, I have known woodworkers who lost thousands working for contractors. I suggest that you avoid working for contractors or any others who can't or won't pay the 50% deposit. If you feel you must work for a contractor who is unwilling or unable to pay the deposit, then I suggest that you insist that they purchase all the materials needed for the entire job and you furnish the labor. You may still lose all your labor costs but at least you won't have money out of pocket on the job.

Maintaining financial success is based on collecting a deposit on every job and then collecting the balance upon completion. If someone fails to pay you then don't do any more work for them until they paid what they owe in full. These steps will minimize your losses and ensure the success of your woodworking business.
Six - SHOP SPACE AND TOOLS

It's not necessary to have a large shop to start a woodworking business. In some towns you can start your business from your garage. However, in some places this isn't allowed, and city inspectors monitor any questionable activities. Avoid problems by operating with as little fuss as possible. Even if you can operate out of your garage without creating legal hassles, consider your neighbors. Will the noise disturb them? Will business traffic inconvenience them? You may be forced to move your shop to a commercial or industrial area, not because of an ordinance against it but because of your noisy machines.

Some people start a business with no shop at all. They work by building cabinets and other pieces on site. I recommend, however, that you at least try to get a 20 foot by 24 foot shop area and use this space to do as much of your work as possible. Keeping site work to a minimum will be better for your customers who will not have to deal with mess and inconvenience. This will be a plus for your business when you bid jobs against other woodworkers.

The layout of your shop space is important and should be planned carefully. You can find many acceptable layouts in books. It is important to have an efficient shop space in which to build your projects. You don't want to waste valuable time fumbling for tools or clearing off work space in the middle of a project. I will not describe specific layouts here, but I urge you to spend time determining the best possible layout for the kind of work you intend to do. If you need help, buy some of the books that deal directly with the subject of shop layout.

Spend some time looking for an ideal shop space. There are many commercial and industrial buildings available in most communities. You can often find a property with a unique space that will fit your idea of a comfortable and enjoyable place to work. My shop was on an acre of land with trees, grass, a picnic table, and even a hammock. It was a peaceful place to work. It is not always easy to find a place like mine, but they do exist. Find a space that has room for a separate office. If your space has no such room, ask the owner if you can install partitions. You will need a special place to go to figure jobs and do paper work. It also provides a small area than can be easily and cheaply air conditioned for your comfort. Your shop is your work environment and should be as comfortable as possible.

Collecting Your Power Tools

After you get a space, take an inventory of the tools you will need. Contrary to popular belief, industrial power tools are not essential for profitable woodworking. You can get by with consumer tools; however, higher quality tools made for heavy regular use are preferable.

In the beginning, it is best to use what you already have in order to avoid a major investment in industrial tools. Any tools that you do need to purchase should be of the highest quality that you can afford but buy only what you need for a specific job. In that way, you will buy only what is absolutely necessary.

If all your tools are consumer versions, go ahead and use them. They will be adequate in most cases; however, once you start getting a great deal of work these tools will not stand up to the stress. Once they are ruined, do not get them repaired. The cost of repair will usually exceed the cost of the original tool. If you still cannot afford to upgrade into trade quality tools, buy more powerful consumer tools. I have found that some lower priced home craft tools work more effectively than others. For example, over the years I have used many routers priced from $50 to $80 that have worked very efficiently. When used with carbide bits, they work precisely and can be used instead of industrial units. On the other hand, I have had bad luck with inexpensive belt sanders. They lack the weight, power and balance of the industrial ones. They track badly and require constant adjustment to keep the belt in the proper track. The tracking mechanism is so badly designed that the problem cannot be permanently corrected. The time you lose in readjusting such a tool represents money that would be better spent on a trade quality belt sander. Also, remember that using consumer tools for commercial purposes automatically voids their warranties. As your business grows, you can upgrade to higher quality tools that will last longer and make jobs easier.

Quality Accessories

One way to make inexpensive power tools last longer and work better is to use only carbide tipped blades and bits. These blades cut more quickly and easily and stay sharp much longer. When you use them your power tools are not under as much stress as they would be with steel blades and bits. Carbide blades and bits cost considerably more, but they remain sharp some fifty times longer and cut better, cleaner and faster.

One tool that can make your shop a cleaner place to work and enhance your working environment is a dust collection system. I worked without one for years; nevertheless, I strongly recommend such a system to you. I often have to wear a dust mask for hours at
a time because of the large quantity of sawdust which is harmful when inhaled.

Many other power tools are important to the business of woodworking, but for simplified woodworking, the table saw is the most essential. Simplified woodworking involves using plywood sheets which usually come in 4 by 8-foot sheets. The standard table size of most saws is inadequate for cutting these large sheets. The first step for simplified woodworking is to build a table around the saw large enough to accommodate large sheets with ease. Basically, this involves a U-shaped table that wraps around the left, right and rear of the saw table. It should be the same height as the table saw on all sides. The overall size, which includes the saw table, should be 8 by 8 feet. If this is not possible because of the size of your shop, the minimum size that will serve for one person to cut plywood sheets is 2 feet on each side of the saw table and 4 feet behind it. This will usually give you an overall table size 7-feet wide by 6-feet deep. With such a table you can rip and cross cut large sheets without help. Such tables can also serve as work benches for cabinet and furniture assembly. Even if you have help, having this table makes the job considerably easier. Build cabinets to mount under these tables for needed storage space. If your budget is initially limited, you can build open cabinets to place under the tables and add doors later. To keep costs down, construct your table from inexpensive plywood.

Spend extra money on your table saw since it is the center of almost all your work. Avoid motorized units in favor of belt-driven, separate motor units; they have many advantages. If your motor goes bad, it can be replaced in minutes with little interruption of your work. The power in these units is much smoother and they can make deeper cuts than the motorized units can. Because the motor on the motorized unit is alongside the blade, the depth of cut is limited. A 10-inch table saw, the ideal size, with a separate motor will have a cutting depth of over 3 inches.

Another excellent investment for table saws, if you can afford it, is a custom fence. This fence will save considerable time and pay for itself quickly. There are many brands on the market, and most of them are very good. I have had good luck with both the Biesemeyer and the Vega Fence.

Even with the extra tables it can be difficult to handle large sheet goods by yourself. Another option to the table saw for this purpose are the straight edges that come in 4 foot and 8 foot lengths to use as a guide to a hand held circular saw. These can be very effective if used carefully. There are also some of these straight edge guides with built in saws that are quite expensive, but they work really well.

In simplified woodworking, the radial arm saw was the second most commonly used power tool for many years. It can still be found in many shops but has been replaced in popularity by the sliding compound miter saw. For years I made good use of a large Delta radial arm saw and it was excellent for crosscutting even wide pieces. For the most efficient use my radial arm saw was flanked right and left by long tables to facilitate crosscutting long boards. That great radial arm saw was replaced by a sliding compound miter saw which I definitely preferred.

While the radial arm saw was great for crosscutting at 90 degrees, it was much more difficult to make miter cuts because of the large swinging arm that moved the blade right or left of the 90-degree cut point. Once I begin using the sliding compound miter saw I had the advantage of the cut point remaining in the same location regardless of the cross cuts I was making. I still much prefer the sliding compound miter saw to the radial arm saw for cross cutting. The one major advantage that the radial arm saw has over the sliding compound miter saw is that you can use it for ripping boards and plywood sheets. It's not as easy to use for this purpose as a table saw but it will do the job.

In addition to these basic stationary power tools, a band saw is very important. A circular power saw will make some jobs go quicker. These saws are especially useful for onsite woodwork. Circular saws may be used free hand, but unless you have a lot of practice and are highly skilled, it is best to use guides to ensure straight cuts.

Next, a router is an extremely important tool since many jobs cannot be done without it. Purchase the most powerful router you can afford, and always use carbide tipped router bits. They do a cleaner, better job than steel bits, and they save considerable wear on your router. It takes more power to cut with a dull bit, and high-speed steel bits become dull very quickly.

The other power tools you will need to complete your shop are: a miter saw, a jig saw, a saber saw, belt and disc sanders, an orbital sander, a drill, and a power planer.

The biscuit joiner is excellent for wood joinery procedures. Even though there is still some resistance, it has become popular and many manufacturers are offering this tool at competitive prices. If your work will include building furniture, I recommend this tool. Several magazines have printed articles about the value of this tool and the many ways in which it can be used. I now have a book available entitled Biscuit Joiner: A Woodworkers How-To Guide To Biscuit Joinery that is devoted entirely to the using the biscuit joiner. This book provides excellent details on all the biscuit joiners presently available and tells you how to use them effectively. Complete information about this book is available at:

http://biscuitjoiner.woodworking-business.com/

Hand Tools

Hand tools are important in simplified woodworking. Tools that you will find invaluable are: hammers, mallets, chisels, planes, squares, screwdrivers, nail sets, awls, hand saws, back saws, and coping saws. Learn all you can about using hand tools properly. However, in simplified woodworking, it is best to use hand tools only when the job cannot be done with a power tool. Speed is important in making a profit, and power tools contribute to speed. Have a complete collection of sharp, ready-to-used hand tools, but use power tools whenever possible.

Getting the Most from Your Tools

Much has been written about the proper and safe use of tools; in fact, entire volumes have been devoted to this subject. Read some of these books to improve your knowledge. There is no such thing as too much knowledge about the safe and proper use of your tools. Many books provide valuable information that will increase your versatility in using radial arm saws, table saws, band saws, drills, and routers. Such information will often make a job easier. Moreover, you may find you don't need to purchase an additional tool that you thought you needed. I have found the following books useful: The Table Saw Book by Kelly Mehler from the Taunton Press and Complete Illustrated Guide To Routers by Lonnie Bird from the Taunton Press.

Many brands of consumer and trade quality power tools are available. Some brands make both grades at varying prices. The choices are considerable and may be confusing. If you have a favorite brand that has worked well for you over the years, by all means stick with it. If not, you can find a great deal of information in magazines such as Fine Woodworking and Fine Homebuilding. They often test power tools and report on the operation, capabilities, and prices of various brands. Their reports can be invaluable in determining the best tool for your use.

To buy tools, study the ads in woodworking magazines for the best models then shop online for the models you prefer. They may also have brands that are not readily available locally. They may even ship to you without freight charge, but even with freight charges you may save money. I purchased a table saw, miter saw and biscuit joiner online. The miter saw and biscuit joiner were delivered without freight charges. The table saw cost $54 in freight charges, but I still saved at least $100 over what I would have paid locally. I did not have to pay sales tax on any of these tools; at 8.25 percent this was a significant savings. However, new rules now in place will require many of these companies to collect sales tax.

Safety First

Every power tool you purchase will have clear and concise safety rules. I strongly suggest that you read them thoroughly and then practice what you have read. Power tools can inflict serious injuries that are frightening, painful, disfiguring and disabling. As a power tool user of 35 years, I urge you always to have the utmost respect for power tools. Always be aware of the possible danger. Never take any tool for granted. Before powering on a tool stop and think. Visualize the outcome before you start to cut. This cannot be overemphasized because once the damage is done, it cannot be reversed. Stay attentive at all times and know where your hands are before you start a power tool. If you are drowsy or tired, do not use these tools. Most injuries happen when people are tired and get careless. Be especially attentive when doing repetitive work. Such work can be boring, and boredom can lead to carelessness. One moment of carelessness while using a power tool can alter the rest of your life. Safety always comes first.
Seven - ESTIMATING COST, SETTING PRICE

In determining the price of jobs, it is important to understand what the market will bear. There is nothing wrong with charging as much as you can for your work. You are not cheating anyone, since the customer knows in advance how much the job will cost. The fact that he or she can get it for less elsewhere has no bearing on the matter. The amount you charge should depend upon the quality of your work and the demand for it. If people know your reputation and want your work, then it is worth more and you should get more. The same is true in many businesses. Hotels and airlines are prime examples where price goes up and down depending on demand. The rooms and the flights don't change but the prices certainly do, based entirely on the demand for them. Why shouldn't this apply to woodworkers.

Artists and Artisans

While I don't consider myself an artist, some people believe that I am. Others consider me an artisan. I don't believe those titles are important, I just want to get paid well for my work. As a self-employed person I want to charge what I believe something is worth and that should be based on what a buyer is willing to pay.

In the Art field, one artist may get $100 for a painting while another, whose work looks quite similar, may get $10,000. The amount of material is the same, but the value to the customer is greater. Is the higher priced artist being unfair or dishonest if his work is valued higher than the work of another artist. I don't believe so. Always get as much as you can for your work. Your work is worth every dollar that the customer is willing to pay.

From the standpoint of insuring a reasonable profit, estimating cost is one of your most important skills in managing your woodworking business. All customers will want to know the final cost of their order before you begin building it. Determining the cost is not easy for people with little business experience because they often overlook details in cost estimating. They wind up either losing money or not making enough to get paid adequately for their labor.

Cost of Materials

The first component to consider in estimating costs is the material needed to do the job. Get in touch with a number of material suppliers so that you can get quotes on various materials. In addition, know the various prices of materials that you use regularly in your shop. Take the time to locate local suppliers to find the prices and availability of the many products that are available to the woodworker. Work with products that are readily available in your area. Many materials and accessories are available through mail order, but such orders take time and are often more costly than those purchased locally. Depending on the size of your community, you may have a number of different suppliers who would welcome your business. Small suppliers and wholesale houses usually provide discounted prices to professional woodworkers.

Many large wholesale material companies will sell to small cabinet shops because they consider them cabinet manufacturers. Naturally, you will not get the same price break that a large volume user would get; nevertheless, you will usually pay less than the standard retail price. Keep suppliers' price lists and catalogs on the products that you plan to use frequently. Compare prices and keep your eyes open for special sales. Sometimes the standard retail home improvement centers have special sales that will save you considerable money. Plywood of various kinds can often be found on sale, especially at small suppliers. Bargain shopping can add to your profit when the material you figured at a standard price can be purchased for less. Plywood is available in many different grades, foreign and domestic. Often you can save a significant amount on each sheet and still obtain quality material that will ensure a good job.

Some projects require better plywood than others. Plywood that is adequate for most kitchen cabinets may not work well for fine furniture. These are choices that you must make when you estimate a job. Stay away from the inexpensive B/C plywood sold by most home improvement stores. This plywood is extremely unstable and warps easily. Many are badly warped when they are purchased. This plywood is often used in jobs where the surfaces will be covered with plastic laminate. They are considered acceptable for this use because their surfaces will not be visible. But their lack of stability can create serious problems even in this application. Avoid these problems and the resulting customer dissatisfaction by using a better, more stable product in the first place. In cases where wood grain surface will be left exposed, fine quality hardwood plywood should always be used. It may be edged as necessary with solid wood or iron-on matching veneer.

You can learn a lot about materials from the suppliers in your community. You can also get a lot of information from fellow woodworkers, whether they be professionals or leisure time practitioners. Before estimating costs for a particular job, you should have sources and prices for the main materials you will need. These materials could include the following:

*Plywood

*Plastic Laminate

*Paint, stains, varnishes, and other clear coats

*Solid hardwoods

*Hardware: hinges, drawer slides, pulls, etc.

*Fasteners: nails, screws, glue, biscuits (beech wafers)

Preparing the Estimate

Let's take an estimate step-by-step. First, prepare a sketch of the work. This sketch need not be to scale, but it should contain sufficient dimensions to make all the size requirements clear. It should have sufficient detail to facilitate an easy accounting of the material required for the job. Once you have a sketch with a clear description of the job, it is relatively easy to make a complete list of the materials required.

You calculate the number of plywood and laminate sheets, the amount of solid wood or veneer and the hardware (hinges, drawer slides, pulls, knobs) that the job will take. Make a complete list of every item, no matter how small. Then list all the finishing materials such as stain, clear wood finish, steel wool, sandpaper, thinner. Do not leave out any little thing. The price of anything that is left off your list will come straight out of your profit. Take your time with this list, and make it complete.

Once you have a complete list, price every item, then multiply that price by the number of those items that you will need for the job. In determining the number of items needed, give yourself the benefit of the doubt. If you are not absolutely certain of the exact number, add an extra one or two to the total. It is better to figure a little high on material than to fall short and end up out-of-pocket. Again, remember that each time you have to buy an item that was not calculated in your estimate, you are reducing your profit.

When estimating larger jobs, it is wise to make drawings to scale. This helps avoid confusion. For larger projects it helps to have photos of similar projects to make certain that you are in tune with the customer. If you have drawing skills, perspective drawings are easier for a lay person to understand. This will give the customer a dimensional picture and enhance the validity of your estimate, thereby avoiding problems once the job has been started.

Labor Costs

The next step in preparing your cost estimate is to figure the labor on the project. Add up the number of hours that you believe it will take you to complete the project. This total should include all time necessary to do the job. For example, include the time you spent with the customer in selling the job, the time spent in designing, and in picking up materials if they are not delivered to you. Next consider the time it will take for cutting, rough assembling, sanding, finishing, final assembling, delivering and installing. All of this is time for which you should be paid. When you have the complete sum of these hours, you must multiply this by your hourly charge. If you haven't already determined an hourly charge, then this is the first step.

This can be difficult because many costs must be considered in arriving at this hourly figure. You cannot figure this as if you were working for someone else who pays all the overhead expenses. When you own the business, you must consider all other expenses if you are to realize a profit. How much do you need to be paid per hour, just for your labor? This single figure should not be less than $25. I think $35 is more than reasonable. To this basic figure you add your other expenses: shop rent, electricity, gas, phone, advertising, insurance, license fees, vehicle expense, and accounting costs. Also figure in tools; their upkeep, depreciation, and replacement costs of blades, bits, sanding belts, brushes and other accessories.

Last, add the cost of any necessary help. Prorate all of these expenses and add the prorated figure to the basic hourly labor charge that you have already determined. The hourly figure that results must cover all expenses except the materials which you have already calculated. I can't tell you how much you should be charging but if you want to make $35 an hour for yourself then you will probably need to figure at least $60 and perhaps $80 per hour.

What should be the exact figure? Only you can determine that, depending upon your own situation. I can only give you an example based on a hypothetical situation. Suppose that your total monthly business expenses were running $2,600 per month, and you work 160 hours per month. Divide $2,600 by 160 hours; you get $16.25. This is your cost of doing business for each hour. Thus, if you had determined that you needed $35 per hour for your labor alone, you would use at least $51.25 per hour as the labor cost in making your estimate. If you want to make $45 per hour, then the hourly labor cost would be $61.25 per hour.

Since your expenses and working time might be greater or less than those used in the example, you need to work this out for yourself. However, my suggestion is that you start with a minimum of $30 per hour and see how it works. If profits are not enough, increase the figure. Something between $30 and $45 per hour will probably work well for you. An accountant or other woodworkers in your area can help you with this figure. But remember that anyone who is charging less than $30 per hour in a good-sized community may find it difficult to stay in business. You want to charge enough to make a living for yourself but not so much that you price yourself out of the market.

In determining your labor charges, consider the existing market. If you are using the $30 per hour figure and you are getting more work than you can possibly do, by all means raise your rate to $45 per hour. If you still have more than you can handle, raise it again. Staying busy means that there is a need for your work, and you can risk raising your prices. When you have enough work to keep you busy but no excessive backlog, you have probably hit upon the most acceptable hourly rate for your work. One caution here; do not tell your customers what you are charging them per hour. Give them the total estimate for the job. They do not need an itemized list. In most cases, customers cannot see all the related expenses of running your business. This is especially true if they have never had their own business. Simply figure the total cost of the job and give them a total bid that does not differentiate among material, labor, and related costs.

Your Profit Margin

The final item to consider in estimating the cost of the job is the profit. In some cases the profit and overhead are figured together. When this is done, the overhead is not included in the hourly figure. I prefer including my overhead cost in my hourly figure and adding my profit margin to the material and hourly costs. Your profit should be based upon a percentage of the total cost of the job, including all overhead. Once again, you must select this percentage. The range can be as low as 15 percent to as high as 50 percent. The actual percentage will depend on many conditions, the most important of which is how much the market will bear. You might start with about 20 percent and see how it goes. If the work flows in faster than you can do it, increase your profit percentage. Another way to figure the profit on a job is to add it to the hourly figure. For example, the $51.25 per hour figure can be raised to as much as $65 per hour, and nothing need be added to the materials/rate total. Once these two figures are added, you have the total price of the job.

A simple example of the totals of a cost estimate is as follows: Let's say the materials for a job will cost $1,500; the number of hours required to do the job is 30 at $51.25 per hour, making the hourly cost $1,537.50. Add $1,500.00 and $1,537.50, making a total of $3037.50. If you have included your profit margin in the hourly rate, no further calculations are necessary. If the profit margin is figured separately using a 20 percent profit margin, the profit margin on this job would be $607.50. Add $607.50 to $3037.50; your total is $3,645.00 which is what you would bid for the job. If your percentage of profit were higher, then the total bid amount would also be higher even though the cost for materials and labor/overhead would remain the same. When you figure a job in this way, there is an easy way to check the estimate to determine if you are within safe limits.

The total, including the profit margin, depending on the complexity of the job, should equal between 2 1/2 to 4 times the cost of the materials. Since this job will be considered of normal complexity you would multiply 2 1/2 times the $1,500 material cost making a total of $3,750. If your price is much lower than this amount you should recheck your figures and make certain that you have figured enough time to do the entire job. Notice that in this case the testing figure is within less than 3% of the figure that you calculated and therefore you quote is good.

Some woodworkers figure the material costs carefully, then multiply that number by three to determine the cost of the job. Others, who always have more work than they can do, multiply the cost of materials by four or even five.

The Grief Factor

One final aspect of estimating projects that you may not find in other books is what I call the grief factor. You always want to do your best for every customer but if you have done any work for others you already know that sometimes you run into some really unpleasant people who are nearly impossible to fully please. I have always done my best to avoid doing work for people like this but sometimes they are hard to avoid.

The important thing is to recognize these folks while you are in the estimating stage. They aren't difficult to identify. Usually they know everything, have been cheated by everyone who has ever done work for them, and nothing is ever good enough. I suggest that you avoid doing work for them. Start by telling them that you are overwhelmed with work and it will be at least six months before you can begin their work. If you have been recommended to them and they insist on a quote even with the delay, give them an extremely high quote. I suggest figuring the job high and then adding an additional 25% to 50% to the price. Most likely they will not hire you but if they do at least you will get paid for the grief they will give you during the job.

I once went to see a kitchen replacement job and after spending an entire hour with this woman I knew that I did not want to do the job. Unfortunately, I had been highly recommended by a neighbor and she insisted on a quote. I figured the entire job carefully including a generous profit and then I doubled the amount and presented it to her. For a moment I thought she was going to have a heart attack but instead she just told me to forget about it and I was happy with that.

Being in business is hard work but there is no reason why it has to be unpleasant and you can make it much more pleasant by avoiding really troublesome customers. At least that's how I feel about it. Life is too short to allow others to make you miserable.
PERSONAL NOTES

There are two basic elements in my philosophy of business. The first is the golden rule. Treat everyone in the way that you want to be treated. If you have any doubt about how to deal with someone in a certain situation, simply stop for a moment and determine how you would like to be dealt with if the situation were reversed. This consideration results in action that is best, both for your business and for the person you are dealing with. The second element is to keep things simple. In business, time is money and complexities involve a great deal of time. By keeping things as simple as possible, you will make more money and have more time for leisure activities.

Simplified woodworking is the name I have given to methods of cabinet and furniture building that I have used over more than thirty years. The methods are not totally original. They are a combination of many methods that I have studied and altered along with some original methods that I have developed. These methods make my work simpler, easier, and more profitable; yet I do not compromise quality. My methods include simple ways to build many kinds of cabinets and furniture.

I have written a book entitled Biscuit Joiner: A Woodworker's How-To Guide To Biscuit Joinery that covers one of the most important aspects of my simplified techniques. It includes complete instructions on my methods with detailed drawings and photos. You can learn more about this new book by clicking the book title above.

Positive Attitude

Maintaining a positive attitude is as essential in woodworking as it is in any other kind of business. Know that you have the talent and ability to build things and to run a successful business. Keep this attitude uppermost in your mind as you proceed through each day. No matter how difficult a job may be, if you have confidence and faith in yourself, you can handle it. This positive state of mind will go far in making things work as they should, and it will help sales. People do not enjoy buying things from negative individuals. Fear and doubt can and will overwhelm you if you allow them to permeate your mind. These fears will be felt by potential customers who will not wish to deal with you.

Woodworking is creative and can provide an opportunity for you to really enjoy what you do for a living. However, do not go into this business if you want to be in a secure job with benefits. If you require strong ties to security, work for a company or agency that provides employee benefits. Risk is a part of any business, especially a one-person operation. Before you give up your job and jump into woodworking full-time, be certain that you love this work enough to accept some risks. If you are not certain, stay where you are or try to start a part-time woodworking business while keeping your present job.

The one-person business is seldom an opportunity to get rich. Nevertheless, you can make a very good living, filled with joy and satisfaction. Good luck.
GLOSSARY

BUSINESS TERMS

Accountant: A person who performs accounting activities.

Accounting: Detailed listings of all the financial activities of your business for future reference, analysis, and tax reporting.

Audit: An examination of records and accounts to check their accuracy; such an examination done by the IRS to make certain you are meeting your income tax Obligations

Backlog: The jobs sold by a business but remaining undone; jobs scheduled to be done in the future.

Bankruptcy: Protection provided by law to a person or company that cannot pay creditors in full. Such persons or companies file their cases in courts which then distribute available funds among creditors.

C.O.D. Account: An account with a suppler who offers contractor discounts but who requires payment in full upon delivery.

Consignment: Goods placed by a manufacturer or craftsman with a retailer who expects to pay for them after they have been sold to consumers.

Credit Account: An account with a supplier who requires monthly payment. Such an account may be discounted 1 to 2 percent for payment by the 10th of the month and may carry a 1.5 percent interest rate if paid after the end of the month in which it is first billed.

Deductible Expenses: All expenses which the IRS allows you to deduct from your gross income in arriving at the amount of taxable income for which you are responsible.

Depreciation: A decrease in the value of property or equipment because of age, wear, or other cause. Depreciation is a deductible expense.

Employee: A person who works for another in return for financial or other compensation.

Employer: A person or company that employs other persons for wages or salary. Employers are subject to many government regulations regarding their employees.

Fixed Expenses: Expenses that must be paid every month regardless of the amount of work available or the number of products sold. Gross Income: The total amount of money received for services rendered, before operating expenses are deducted.

Insurance: A measure to protect you against possible liability during your business or personal activities.

Inventory: Materials and products kept on hand for manufacturing or constructing projects. Completed products kept on hand for wholesale or retail sales.

Investment: Money committed to a business in order to make a profit.

Manufacturing Business: An enterprise that manufactures cabinets and furniture using mass production methods.

Materials: The substances out of which a thing is or may be constructed.

Minimum Wage: The minimum hourly amount that an employee may be paid under the federal laws governing employment.

One-person Business: A business solely owned and operated by one person.

Overhead: The cost of doing business, including all expenses encountered in the normal course of business activities.

Payroll Deductions: The deductions for income tax, social security (FICA), and other fees required by the government (agreed upon by the employee; i.e. retirement) of all employers.

Payroll: The total sum to be paid to all employees at a given time. Also refers to the records associated with these transactions.

Profit Margin: The percentage of profit over and above all the costs of doing business except for income taxes.

Profit: The return received from a business undertaking after all operating expenses have been met.

Quote: The price established for a particular job and given in writing to a potential customer.

References: Persons or companies that are willing to testify, either orally or in writing, to potential customers about the quality of your work and your business integrity.

Reserves: Money set aside to pay for unforeseen expenses as they arise; money set aside to meet large periodical expenses such as income tax payments.

Retail: The sale of goods in small quantities to consumers.
What the market will bear: The maximum amount that customers are generally willing to pay for your services. Wholesale: The sale of goods in large quantities, as for resale by a retailer.

TOOLS AND MATERIALS

B/C Plywood: A relatively inexpensive plywood made mostly of pine layers. B/C refers to the grade of wood used on each of the surface layers. The B side may have some oval patches where knots have been removed, and this side will be sanded. The C side will have knots showing and will not be sanded. This is not a good product for cabinets unless they are to be used in a shop or utility area.

Belt Sander: A hand-held or stationary tool that uses belts of various lengths to smooth wood surfaces.

Biscuit Joiner: A hand-held power tool that provides a fast and accurate way to join wood pieces in lieu of standard wood joinery methods such as mortise/tenon, tongue and groove, and dowels. It is an excellent tool for simplified woodworking.

Carbide Tipped: Refers to blades or bits that have tungsten carbide tips welded to them. These tips are exceptionally hard and maintain their sharpness some fifty times longer than high speed steel edges. Carbide tipped blades and bits are of various levels of quality, but even the least expensive provide infinitely better cutting power than high speed steel blades and bits.

Circular Power Saw: A hand held power saw used for ripping or crosscutting plywood or solid woods. With the proper blades it can also be used to cut soft metals and masonry products.

Cordless Drill: A power drill with a rechargeable battery to facilitate use without a power cord. It is an excellent tool for onsite installation of cabinets.

Custom Fence: An accessory for table saws that facilitates cutting large, sheet materials. Normally it replaces the table saw rip fence and the tubes upon which the fence operates.

Disc Sander: A stationary machine that uses discs to smooth the edges of wood pieces. If used with care, it can also be used to shape wood pieces into various configurations.

Industrial/Trade Tools: Tools designed and made especially for heavy duty, consistent use by professionals.

Iron-on Veneer: Strips of real wood veneer with a backing of hot melt glue. It is easily applied to furniture edges using a household iron, then the edges are trimmed and sanded.

Jig Saw: A small stationary power saw used for scroll work. With appropriate blades it can cut any shape, even with the smallest radius.

Joining Biscuits: Thin, elliptical, compressed wooden wafers use to join the slots cut by a biscuit joiner. They come in three sizes and cost about three cents each.

Jointer: A stationary machine that evens or planes wood edges or surfaces.

Miter Saw: A small stationary power saw used to cut angles or miters in solid wood or moldings,

Orbital Sander: A hand-held machine that uses sandpaper sheets to smooth wood surfaces and edges. It causes sandpaper to move very rapidly in a short orbit, thus facilitating, when used properly, sanding without scratches. Plastic Laminate: A decorative plastic sheet consisting of papers that have been pressed together with thermo-setting condensation resins at pressures of more than 500 pounds per square inch. It is glued to various hard surfaces with contact cement.

Pneumatic Finish Nailer: An air-powered tool that drives finish nails varying in size from .75 to 2.5 inches. Most of these tools drive and set a nail with one shot of air. They are powered by air compressors and require hoses of appropriate lengths.

Power Planer: A hand-held machine that smooths wood edges and surfaces rapidly.

Radial Arm Saw: A stationary power saw used to rip or crosscut solid wood or plywood. When used for crosscutting, it differs from a table saw in that the blade moves through the material instead of the material moving through the blade.

Saber Saw: A hand-held power saw used for cutting circles and other shapes. With appropriate blades this saw can be used for scroll work and to cut metal.

Table Saw: A stationary power saw used to rip or crosscut solid wood or plywood. It can be used to cut angles and miters, including compound angles. It is a versatile machine that can be used to make an infinite number of cuts. Vinyl: A tough, flexible, shiny plastic used as a covering. It is often used to cover particle board products.

Wood Joinery: Conventional and traditional methods used to join wood, including mortise/tenon, tongue and groove, dados, rabbets, dovetails, finger joints, and dowels.

WOODWORKING TERMS

Artisan: A person manually skilled in making a particular product; craftsman. Assembly: The act of joining the parts of a product after they have been cut and prepared.

Basic Skills: The minimum skills necessary to perform competently.

Cabinet: An upright, cupboard-like repository with shelves, drawers, or compartments for storing, safekeeping or displaying a collection of Objects or materials.

Cabinetmaker: A craftsman specializing in making wooden articles, cabinets, and furniture.

Callback: Having to return to a completed job in order to repair some defect that the customer has complained about.

Carpenter: One whose occupation is constructing, finishing, and repairing wooden objects and structures.

Custom Designed: A product designed to fit the specific needs of a customer.

Cutting List: A list of all the wooden pieces, including specific sizes, needed to be cut for a specific project. Drawing: A detailed drawing, made to scale, of a specific project to be built.

Finish Carpentry: Woodwork comprised of the final touches of construction such as trim, moldings, and doors. Furniture: The movable articles that render a room or establishment fit for living or working.

Heirloom: An antique, reproduction, or modern wooden article using classic and traditional woodworking methods. Hobby: An occupation, activity, or interest engaged in primarily for pleasure.

Home Improvement Suppliers: Companies that sell materials, tools, and supplies to contractors and individuals involved in home improvement activities. They mayor may not offer discounts to professionals.

Perspective Drawing: A line drawing that gives a three dimensional effect.

Portfolio: An album of pictures of projects that you have completed successfully. Repertoire: The range or collection of skills or aptitudes that you have.

Self-employed: Earning and directing your own livelihood; working for yourself rather than for an employer. Simplified Woodworking: The performance of woodwork activities based upon conventional and creative methods that have been altered in order to simplify and expedite the work. The aim of these methods is to increase profits while still maintaining a high level of quality.

Sketch: A freehand drawing made quickly in order to capture for future use all aspects of a design or project; a hasty drawing with minimal detail, made as a preliminary study.

Specialties: One or more aspect of woodworking to which most of your work or business is devoted.

Woodwork Business: Making objects of wood for profit. Working with wood for profit.
USEFUL LINKS AND WEB SITES

One of the unique advantages of running a business today is access to the Internet and millions of web sites that can be invaluable in helping you to succeed and making it easier to function every day.

What follows is a list of links and web sites that I have found of real value over the years. I have also included some of the web sites and blogs that I created to help other woodworkers. With each link is a brief explanation of the site and how it can be useful. I think you will find many of them of real value to help you succeed financially in your woodworking business.

Accounting and Taxes

Running a successful woodworking business, or any other business, requires the use of good accounting practices. In addition to helping you keep track of how your business is doing, it is critical to fulfilling your tax obligation to the Internal Revenue Service and, in many states, to the State Income and Sales Tax requirements.

As a person who really dislikes accounting I spent years leaving my accounting to the last minute and then spending hours playing catchup; definitely a poor and frustrating practice.

For years I used Quickbooks, one of the most popular accounting software programs and it is definitely a good product. However, like all other accounting software, it requires a lot of work to keep it up to date. If you have the patience, desire, and time to handle your own accounting, I definitely recommend Quickbooks. Check out:

http://quickbooks.intuit.com/

I no longer use Quickbooks because I found an alternative that is perfect for a one-person business like mine run by a person who hates accounting.

I use GoDaddy Online Bookkeeping. It takes a little work to set up to handle your accounting but once you have completed the setup, this service handles all your accounting automatically.

There are some basic requirements you must meet to use GoDaddy Online Bookkeeping successfully. First, you must have a checking account just for your business. You can't mix personal and business funds. Secondly, if you are using a credit card for your business, it must be reserved just for business use. You can't mix your personal and business credit card charges. This should pose no problem as you should be doing this even if you don't use this service.

Setting up GoDaddy Online Bookkeeping is straight forward. Just put in the information for your business checking account and your business use credit card and you are ready to start. If you have a paypal account you can also include that. They also deal with many merchant account companies

Once everything is set up, this service does a regular scan of your accounts and places all the transactions into the most likely categories. When you first begin to use it, you must check that the selected categories for your deposits and expenses are correct. If any aren't, you can easily correct them and from then on those expenses will be listed correctly. After checking things a few times during the first month, everything will work perfectly from then on.

The GoDaddy Online Bookkeeping Essential service costs $7.99 for the first month and $9.99 per month thereafter and worth every dime. You can visit your account at any time and create all kinds of reports so you can handle your sales tax, State Income Tax, and Federal Income Taxes easily. You can checkout GoDaddy Online Bookkeeping at:

https://www.godaddy.com/email/online-bookkeeping

Computer Backups

If you make use of your computer for your business it is essential to develop a good backup procedure for all your business information. I like to use external hard drives for this purpose but unless you are a person who handles backups regularly, I suggest that you use one of the online backup services to maintain an up-to-date backup of all your business files.

Most of you are well aware of a company that advertises on TV all the time and you can certainly use that service to back up your files. However, my preference is a service called Backblaze Online Backup which is easy to use and reasonably priced. Check out:

http://backblaze.com

Woodworking and Business Informtion

Woodweb

This site has lots of information on woodworking and business. New information regularly provides a helpful source of ideas and solutions.

http://www.woodweb.com/

Woodwork Doctor

Here is a truly helpful site for woodworkers running their own one person woodworking business. Everything on the site is based solely on first-hand experience so you know that it works.

This site covers safety, customer service, handling complaints, building project in modules, finishing, and much more. It also has photos and information about many projects.

There are also many links to other sites that could be of real value to woodworkers. Check it out at:

http://woodworkdoctor.com

Woodworking Blogs

There are many woodworking blogs and I definitely advise that you do a search for them. I have listed just a few in this book that you may find of value but I'm certain there are many others that may have information of real value to you.

Lumberjocks Blog

This is a blog that I have been participating in for several years and have always found it of value. Participating in this blog you will find woodworkers at all levels of proficiency and business acumen. It is an active group definitely worth joining and visiting regularly. Check it out at:

http://lumberjocks.com/

Woodworking Business Blog

This is a blog that I started some time ago and it contains valuable information on how to start and operate a financially successful woodworking business. There are many posts on various aspects of professionalism and handling everyday business activities with a woodworking business.

I don't post as often as I would like because of time constraints but I welcome comments and questions and answer them promptly. This could be a source of valuable information with answers to your specific questions. Check it out at:

http://woodworking-business.com/woodworkbiz/

Starting A Handyman Business

This blog is geared to the Handyman business. The Handyman business is an excellent path to starting a woodworking business. Even if you have woodworking skills, the handyman business is a great way to get started because it begins bringing in well paid work right away to maintain cash flow while you develop your woodworking clientele to an adequate number to support your living.

http://starting-a-handyman-business.com/

Papa's Wood Shop

I started a blog called Woodworking Simplified and it contained complete details on more than twenty wood projects and simplified woodworking methods. Unfortunately it was hacked and destroyed in some way. I have created a new blog to replace it and named it Papa's Wood Shop because that's what my grandson calls it. This blog is just beginning and will have many new woodworking and home improvement projects as time passes. Please check it out at

http://papas-woodshop.com/
A. William (Bill) Benitez

Biographical Information

Bill Benitez was born into construction. From age twelve he spent his summers and weekends working with his father, a general contractor, building homes and buildings. At age nineteen he contracted and built his first house for a customer and then built his own home at age twenty. He has over 30 years experience operating one-person businesses.

Bill started a woodworking business based on his construction experience. He also began writing about his experiences and published a book and project newsletters on woodworking.

During this time he wrote SIMPLIFIED WOODWORKING I: A Business Guide For Woodworkers. He also wrote and published the monthly project newsletter SIMPLIFIED WOODWORKING for two years and conducted power tool demonstrations for the Skil Power Tool Company. Sometime later he encapsulated his self-employment experience in THE SELF EMPLOYMENT SURVIVAL MANUAL: How to Start and Operate a One-Person Business Successfully. Both of these books are now out of print.

In 1996 he began studying computers and is now a certified computer expert with A+ and MCSE certifications. Now he uses his computer skills together with his writing and publishing experience to operate Positive Imaging, LLC a publishing company that publishes books and ebooks he writes and for other authors. You can check out all the books he has written and published on his web site at http://positive-imaging.com .

Bill Benitez lived in Tampa, Florida until 1986 when he moved to Austin, Texas. He now lives in Austin with his wife Barbara Frances.

# Thank You!

# Thanks for downloading this free copy of Woodworking Business Quick Start Guide. I'm certain it will help you to succeed in the woodworking business. In addition to this book I have a free monthly email that I send out to my subscribers about the simple methods I've used for years and continue refining. You can subscribe easily and start receiving your copy right away by just emailing me at bill@papas-woodshop.com.

# There is no catch involved, this concise and comprehensive ebook is yours whether you sign up for the monthly email or not. And, either way, if you have any questions about woodworking or the business I'll be glad to answer them. Just drop me an email and thanks again for downloading my ebook.

# Bill Benitez
http://papas-woodshop.com/
bill@papas-woodshop.com

Woodworking Simplified Book 1

Need help designing and building projects for customers? A new book series is filled with complete details for designing and building beautiful and functional projects for homes. Book one is available now.

Woodworking Simplified Book 1 contains everything you need to build six projects including photos, material list, drawings, concise instructions, and even exploded views to help with assembly. Check it out and get your copy now at:

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