Last month, we encouraged woodturners to start preparing for the upcoming fall and winter craft show season. If you took our challenge and started prepping your inventory, you might have begun to wonder, “would it be possible for this to take off? Could I actually start a business that would turn some profit?”
Most woodturners start off as hobbyists, and some are happy to continue just turning items for friends and family. However, many also start woodturning as a business to turn their craft into thriving side businesses, or even main businesses! While it can be rewarding to see your meticulously crafted pieces making their way into appreciative hands, it can feel daunting to move beyond the lathe; building a business takes a certain amount of planning and expertise.
While there will be many things only you can address for your own situation, read below for some general ideas to consider as you think about turning your woodworking into a business.
The first thing you need to do if you are hoping to take your crafting to the next level is decide what success looks like for you. Consider the following questions:
You are the only one who can answer these questions, so make sure to take some time to really think through your answers. It might be a smart idea to write down your answers so that you can come back to them as you start selling your items. Be sure to set goals that are achievable for your first year and plan to re-evaluate how things look at this time next year.
If things have gone according to plan, or perhaps exceeded your initial goals, you might be able to think bigger! But if things haven’t gone as well as you would have hoped, you may need to reassess your goals and shift your mindset or your methods. While this can be disheartening, know that it’s all part of the ups and downs of being a business owner; you need to find what works for you.
As you decide what works for you, you will want to figure out how you will stand out in a competitive marketplace. You might consider what things you enjoy making most, as well as the demand for those items from local customers. Popular items that can be adapted to your own style include things like kitchen items (bowls, honey dippers, spoons), pens, Christmas ornaments, decorative elements (vases or artistic pieces), or custom gifts.
As you find your niche, you might also want to think about developing a recognizable style. While it is useful to be able to make many different items with different finishes, developing a certain pattern or using a particular finish might make you stand out from others creating wood-turned items.
Chances are that you already have certain kinds of wood or finishes you like to use, so lean into that. It is better to focus on creating a few items of good quality rather than trying to make some of everything, especially as you are just starting out.
Also, remember that you may be able to think beyond local customers, depending on your comfort with technology. In the age of the internet, many people sell their wares online and ship items nationwide or even internationally. However, as we mentioned above, you will want to set achievable goals, especially for this first year. If you are planning to create a website or an Etsy shop, make sure to be realistic about how quickly you will be able to make and ship your items.
The next step in turning your woodturning passion into a profitable business is deciding how to price your items. We discussed this in detail in our blog post last year about pricing items for holiday craft shows, even including a 4-step process for pricing your work.
Pricing your items for a business will not be that much different from pricing for a craft show. First, you need to make sure that you are setting the price not for just the item itself, but to cover your costs from materials, tool wear, and shop overhead as well.
You will also want to keep in mind the time you spend turning, as well as the design time and finishing time for each piece. Beyond that, remember that you want to turn a profit! You’ll want to price your items to not just cover your costs, but to make enough to put in your pocket.
Remember too that you are not setting your prices so that you can be paid by the hour; you are charging for a one-of-a-kind, handmade, wood-turned item that your customers are not able or willing to make for themselves. Even if you feel your prices are high because you know how long each item takes to create, your customers will value your effort and the finished product.
You can always adjust your prices as well. If you find that your items are selling quickly, you might consider raising prices slightly. Be sure to do some market research, whether local or online, so that you price your items in line with what customers expect. If you are selling online, be sure to also take shipping costs into consideration.
As we mentioned, you will need to decide where to sell your items. There are many different options to explore, but here are a few of the most common to consider:
The first and most obvious choice is to begin by selling at local craft shows. You can find lists of these types of events by searching online for terms like “(holiday) craft shows near me.” Craft shows give you a chance to make immediate sales and talk with your potential customers, building a local base. People will also be able to see and handle your wares, which is often important to people buying handmade items.
Remember that there will be booth fees associated with craft shows, and they will require you to transport your inventory and display items. You might also have to contend with weather, depending on the kind of craft show you’re attending. While these things are not insurmountable obstacles, they do require some planning.
Local art galleries are another in-person option you might pursue, especially if your items are more artistic in nature. At an art gallery, you are likely to encounter customers who appreciate handmade art and craftsmanship and who might be willing to spend more for a single item. You will also have the benefit of a professional display environment that you will not have to create, and gallery staff may even help promote your work.
However, galleries often take a significant commission, which might offset the higher prices you can charge at a gallery. Sales might be slower, and you might have little control over how your pieces are displayed, if that is something that matters to you. Lastly, galleries may have high standards for the pieces they accept, so if you are just starting out, you might find it difficult to find a gallery to work with.
If you want to go for an online option, setting up a personal website is the first idea people usually have for starting a business. A personal website will give you full control over branding and pricing, so this is a good option for those who have a certain look or style in mind. You will also have no direct competition from other sellers once your customers are on your site, and custom orders are often more easily requested through a website than elsewhere online, if that’s the direction you are leaning.
Remember, though, that it takes time and effort (and some understanding of the algorithms online) to build a steady stream of traffic to your site. There might also be fees associated with hosting and maintaining your website, and you might have to invest more time in marketing. Your sales will probably start off slower until your audience grows, but a personal website can sustain a large amount of traffic.
Another popular option is to skip creating your own website and instead “open” a shop on Etsy or a similar online marketplace. This is a useful option to give you access to customers year-round who may live beyond your locality. Setting up a shop is relatively easy, and it doesn’t usually require much in the way of overhead, especially if you are selling smaller items.
Remember that this option will probably require some platform fees and you will need to focus more on photographing your pieces to catch customers’ attention. There are also many people who use these sites to buy and sell, so standing out in this type of marketplace might require more work. Lastly, you will have to consider how to ship each piece you sell, which is an added step in the process.
Once you’ve decided where to sell your items and how to price them, you will need to begin thinking about your branding. Every business needs to be recognizable, and large companies invest thousands, if not millions, of dollars into developing their brand.
You do not have to spend an exorbitant amount on your branding, but you will want to give some thought to your business name and logo. You will want to choose a name that can grow with your business; something like “Bob’s Bowls” won’t fit if you eventually start making other items. Make sure your business name is easy to say and remember and be sure to check the domain name and social media handles if you plan to promote your business online.
Your style and logo should be simple and clear, and it is a good idea to have your brand reflect the items you make. A rustic logo might make sense if you make natural-edge bowls, but it will not fit as well if your style is more contemporary or modern. A simple silhouette or something with just one or two colors are often good choices.
You will also want to invest some money into getting or taking professional photos of your featured items, especially if you are selling items online. If you are selling locally, consider what you will need for your booth displays and business cards. Having professionally printed and consistent placards and banners will help customers recognize and remember your work. The same is true for your packaging if you are shipping items.
Lastly, consider how you will tell the story behind the wood. Having simple explanations of the special aspects of the wood or the process of turning can inspire customers and help them connect with your entire enterprise, rather than just admiring a nicely turned piece.
Yet another key to running a successful business is keeping clear business records. This is a skill that may take some practice, so it might take you a bit of time to figure out the system that works best for you.
Start by tracking your expenses—you might decide to do this now, before you begin selling anything, to get an idea of what you spend on your woodturning hobby. The next thing to track is your sales: how many items were sold, the venues where they were sold, and the prices of each item. It is also a good idea to keep a written record of your inventory, especially if you are transporting your pieces to and from physical locations.
Finances for the business go beyond just expenses and sales. You will also need to keep track of the taxes you need to pay and collect, as well as any licenses you need to keep up. It is best to check local requirements to see if you need any specific licenses to operate your business. We recommend keeping a ledger (on paper or online) for your business finances that is separate from your personal finances.
One final thing you might overlook as you contemplate the launch of a business is the idea that growing your business will mean continuing to grow as a wood turner. This might not be a concern for the first year or two, but it will be important for you to continue to learn new techniques and experiment with new kinds of wood.
You might also consider attending symposia (like the annual AAW Symposium) or classes, as well as joining your local woodturning club. This can also give you a chance to network, especially if you participate in the trade shows and craft galleries at these events.
Above all, make sure to seek customer feedback. Whether you are selling online or in person, be sure to have a way for customers to voice their opinions about your work and what else they might like to see in your booth or on your website. Word of mouth is a powerful force, and if you have loyal customers who like your work and feel like you are approachable, you might just find their friends heading your way!
Now that you have some basics to think over, it’s time to do some real reflection and number-crunching. Remember that success doesn’t happen overnight but is built one step at a time.
Focus on consistent quality and customer service to build a reputation and clear identity in the business world that will keep customers coming back.
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