How to Open a Furniture Making Business

You're a skilled craftsman who makes furniture your friends and family rant and rave over. Everyone is asking you to make him something, so it might be a good idea to start your own furniture making business. If you like making furniture and people are willing to pay you for it, give it a shot.

Instructions

1. Take pictures of pieces you've previously made. Since you're not going to have a storefront, you need to be able to show a portfolio of your work to potential buyers. Start thinking of a business name.

2. Make a few sample pieces in case a potential customer insists on seeing the item before contracting you to make it. Skip this step if you're not comfortable having strangers over to your house or if your furniture is too big to easily transport to someone else's home.

3. Figure out how to take payment. At first, you'll likely want to stick with accepting just cash and personal checks. As your business grows, you can apply for a merchant account so you can accept credit cards. The fee for this isn't too high, but if you're not consistently busy, it's not to your advantage.

4. Spread the word that you have quality handmade pieces for sale. Make some fliers and business cards to hand out to everyone you know. Put your business name on these, as well as a short slogan and your contact information.

5. Establish a presence on the Internet. Build a simple website (or get someone to do it for you) and upload pictures of everything you offer. Decide on some prices and include them with a description of each item. Make sure to put your contact information on the site. Explain any personalization you offer as well.

6. Use accounting software to track your sales and expenses. Enter expenses as they come (lumber, hinges, knobs) so you don't forget about them, as they will reduce the amount of taxes you have to pay on your income. Also, enter your sales so you can determine which items are popular, and make sure you pay the proper amount of taxes. Itemize each customer's bill so you can see exactly what you spent on each project and estimate the profit for an item.

Tips & Warnings

• Check your state's laws to see if you need to file a Fictitious Name Registration (also known as a DBA name) to legally run your business.

• If you aren't sure you can handle the accounting side of a business, call a few CPAs or accountants and choose one that specializes in small service businesses. Keep all your receipts and keep a log of your sales; staying organized will reduce the cost of using an accountant.

• Base your price on your materials as well as your labor. Think about what hourly rate is acceptable for you to earn for your handiwork and multiply that figure by the number of hours you spend on a project. Include any time you spend shopping for supplies or planning your job.