First, welcome to the Forum.
Second, commiserations for the loss of your job/the workshop.
Q1: Was the owner insured? If so, is there any chance of you doing any sort of deal with him if you're dead sure he won't want to continue himself?
Q2: How well do you know the existing clientele - e.g. do any of them even know you (personally) worked with/for him? And what sort of reputation did he have locally? And were his customers end users (e.g. private households) or other companies?
Q3: Are the actual premises still standing? If not, what's the availability of other suitable premises locally? At what cost?
I know nothing whatever about the sort of equipment needed to do this sort of work, but "knowing" some of the above members, I'd be inclined to believe that if they're saying you don't need all that expensive gear for a while, then you probably don't. In any case, having run my own business in the past (nothing whatever to do with wood) I definitely would NOT start off with a loan, even if you can get one.
Q4: Apart from being on the tools yourself, how are you other skills such as sales, advertising, internet/website, pricing, contracts, book keeping, materials buying? Depending on Q2, I would suggest that your almost immediate priority is to find "new" customers, and especially if you're chasing the "existing" customers, "fast/efficient" is important.
Q5: As other posters above have said, have worked out how much you MUST earn per week/month/year as an irreducible minimum, just to exist? How much spare cash could you afford to loose without putting you/your family on the bread line/out of the house if it doesn't work?
Q6: Have you got any sort of budget worked out for business running costs, such as premises rent and rates, power and heating and lighting costs, website, accountant, tax, vehicle, etc, etc?
Q7: Anyone (family, VERY good friend) who can help you with any of the above (Q4 and/or Q6)?
NOT trying to be a prophet of doom & gloom, just trying to point out some of the things that could bite you in the A - - E if you haven't done your planning.
Good luck mate