Through your carpentry business, you’ll be helping clients with building, maintaining or renovating wooden structures in residential and commercial buildings. Some kinds of carpentry, such as structural carpentry, focuses on framework. It helps to keep the structural integrity of the building intact, contributing to making the structure safe for the people that are nearby.
You could also choose to focus on finishing carpentry, where you could find yourself restoring historical buildings. You’ll also be able to increase the property value of the buildings you work on. But how exactly do you start your own carpentry business? There is more involved in starting a business than just registering the business with the state.
Here’s Tips How You Start Your Carpentry Business And Set It Up For Success:
Planning Your Business
The first thing you’ll need to do is create a proper plan for what you hope to achieve by running your business. Not only should you list out your business goals, but you should also consider various aspects of managing your business. Think about how much you’ll need to open your business. You’ll need to get your business licensed and bonded as well. You’ll also need to pass OSHA safety courses.
There are ongoing costs that you’ll need to think about. These include costs related to maintaining tools and equipment, payroll, maintaining vehicles, and more. Think about who your target market is as well. You’ll also need to consider what services you’ll offer, as well as how you’ll price your services. It’s important to note that you should aim to make a profit through your offerings. How you can make a profit while also pricing your services competitively, is also something you’ll need to plan.
Form Your Legal Entity
There are several legal entities that you can choose between. These include sole proprietorships, partnerships, limited liability companies, and corporations. If you choose a legal entity like a corporation or an LLC, then you’ll be able to protect your business. You can protect your business from being held liable personally, in case your business gets sued.
You’ll also need to register your business for various state as well as federal taxes before you can officially open your business. You’ll also need to apply for your EIN. How your business will be taxed will depend on the legal structure that you chose for your business. You will also need to do your research on what kinds of state taxes you’ll need to pay, to run your business.
Getting A Business Bank Account
Instead of using your personal bank account for your business as well, get a separate business bank account. Get separate credit cards for your business as well. Should you mix your business assets with your personal assets, then those personal assets could face risk. Should someone sue your business, you could lose your personal assets.
You’ll also need to know how to build business credit, which will help you get a credit card for your business. In addition to this, you’ll need to maintain your accounts as well. Monitor how much money is going into, and coming out of your business at all times. Make use of accounting software or hire an accountant, if you don’t want to monitor accounts yourself.
Also, consider investing in carpenter general liability insurance. This is as running a business can leave you exposed to certain risks, such as getting sued by unhappy clients. When you have carpenter general liability insurance, you can better protect your career as well as your finances. For more tips to help your carpentry business beat the competition click here.
Building Your Brand
Once you’ve set your carpentry business up, it’s time to build your brand. Your brand is what your business will be standing for, as well as how it will be perceived by the general public. If you build a strong brand reputation for your business, you can better stand out against your competitors.
You’ll also need to create a marketing plan for your business. Build a business website and get social media business profiles. Provide pictures of work you have done previously, online. Think also about who you’ll be marketing your business to. Construction companies often need to hire carpenters as contractors. Stay in touch with construction companies in your area so you can secure work from them from time to time. You should build a referral network as well.
Tell older clients who are happy with your work to refer your services to their contacts. Think also about the employees you’ll hire. Unless you run a sole proprietorship, you should be hiring employees. Only hire people whose talent you trust in, and who can provide proper references.
To start your carpentry business, you’ll have to do more than register your business with the state. You’ll also need to choose a legal structure, manage your accounts, market your business, and more. Use this guide to learn all about how to start your carpentry business.