setting up a workshop costs

[custard]

"Joinery and furniture" sounds pretty broad. Have you got a more specific business plan in mind? If you're clearer about your products and services you can get better and more relevant equipment. Trying to have the kit to do whatever comes along means there'll always be someone who can do the same job more efficiently (and therefore better/cheaper) than you.

Second point is working capital. Let's say you decide to go into fitted kitchens, then you'll need the cash to fund everything from Blum cup hinges to granite worktops...and the money to keep body and soul together, because it'll be months before you receive any payments.

 

[tomatwark]

Second point is working capital. Let's say you decide to go into fitted kitchens, then you'll need the cash to fund everything from Blum cup hinges to granite worktops...and the money to keep body and soul together, because it'll be months before you receive any payments.

This very true as when you start off it will be quite hard to get 30 day accounts with suppliers.

I always take a deposit and then staged payments on a kitchen, leaving the smallest one to cover the fitting payable with any extras at the end.

This is always put in the quote, so the customer is aware of my terms.

I have only had one person refuse the deposit, and I then refused the job, he went onto another local firm who did the work without a deposit and then did not get paid at the end.

I do have clients who I trust and will wait till the end for payment, but they are also the ones who will come in to see how their piece is going and offer a payment on account anyway.

The other point is stock, if like me you are a long way from any of the big suppliers and will get charged delivery on small orders for some stuff, you may have to carry a bit of stock of the usual materials you use to get the price right by buying more.

Tom

 

[tomatwark]

It also helps to be able to make and fit 4 sets of wardrobes in the morning and a few gates in the afternoon.

Just like Alan ( mailee ) :lol: :lol:

Tom

 

[custard]

Having "joinery" in the target rang some alarm bells. Yes, you can make a gate with hand tools, but the tooling alone for double glazed windows can easily exceed £10k.

 

[shim20]

wow right, i am working at the moment full time and i am slowly building up a range of customers and doing the work at home and at work, im not doing this yet maybe a year or so time after ive saved a bit then take my hours down at work and do it that way, i have a van well a mk3 hilux pickup which will last me years, way i look at it if my boss can do it i could? he dosent get in till 11 and dosent do much all day and dosent know the meaning or organised, i stand around alot at work doing nothing as he hasent sorted materials etc out, i dont know how he dose it to be honest as we havent that much work on, anyways thanks all for the input :lol:

 

[mailee]

It also helps to be able to make and fit 4 sets of wardrobes in the morning and a few gates in the afternoon.

Just like Alan ( mailee ) :lol: :lol:

Tom

Oh Tom, that's an exaggeration! Only two sets of wardrobes in the morning. :lol: .....I wish.

 

[MikeSav]

13 years later...

I'm guessing that most of this information is still relevant to someone wishing to set up a workshop, except perhaps the figures.

As someone who is looking into the subject with a view to setting up a workshop (primarily for freestanding and fitted furniture), could anyone offer any further advice please?
I have been looking at spaces of somewhere around several thousand square foot and I see that there is possibly a business rate relief scheme available.
When I tried to set up a yard five years or so ago to run a mobile sawmill out of, with timber I'd cut airdrying in the yard, when the business rates kicked in and I ran out of money it was the final nail in the coffin of my woefully naive plans.
If I'm going to give it another go from a different angle I'm going to do as much research as possible and have a solid business plan.
I am based in Southampton, am currently on the FdA furniture course at West Dean and am starting to put together ideas now for possibilities a year down the line.

Many thanks in advance!

 

[MikeSav]

P.S
I have been looking at bench spaces to rent and can't find any in Hampshire at all - I am also considering and researching the option of setting up a workshop to provide this purpose

 

[Spectric]

The cost of setting up a workshop, it would have been much much cheaper thirteen years ago but then some of the tools now available would not have been on the shelves and buying quality timber would have been easier back then and a lot more people would have had more disposable income.

 

[rogxwhit]

I have been looking at spaces of somewhere around several thousand square foot

Phew! How many people are you planning to employ?

 

[KraftyKev]

I would be interested if Shim20 could update the post with his experience 13 years later..

 

[thetyreman]

nobody has mentioned depreciation as well, power tools often go down in value and fast, running costs will have increased substantially since this was first written.

 

[MikeSav]

Phew! How many people are you planning to employ?

None, probably. But all those machines and materials will take up lots of space

 

[johnnyb]

I'm just gonna add a bit here. nobody has mentioned once skill and technique. small workshops are closing one after the other for many reasons( mostly because woodwork is a "lost" craft. 95% of people go out of there way to avoid wood preferring plastic or steel) the cost of workshop rental/overheads is crazy. wood is just unaffordable as a raw material let alone a finished product. People are sometimes forced to have timber windows or get caught up in the romance so many small mostly smash out windows and doors using purpose made window tooling....they may as well use plastic( in fact the latest thing is wood style plastic which may kill the last of these makers)
but there's always people willing to try making as a career.

 

[MikeSav]

I'm just gonna add a bit here. nobody has mentioned once skill and technique. small workshops are closing one after the other for many reasons( mostly because woodwork is a "lost" craft. 95% of people go out of there way to avoid wood preferring plastic or steel) the cost of workshop rental/overheads is crazy. wood is just unaffordable as a raw material let alone a finished product. People are sometimes forced to have timber windows or get caught up in the romance so many small mostly smash out windows and doors using purpose made window tooling....they may as well use plastic( in fact the latest thing is wood style plastic which may kill the last of these makers)
but there's always people willing to try making as a career.

So I'm getting from this that it's a bad idea, unviable, unaffordable and without a market.

 

[Joshjosh]

So I'm getting from this that it's a bad idea, unviable, unaffordable and without a market.

Not necessarily, I set up around 3 1/2 years ago.
I had the benefit of building a small workspace on my land and acquiring tools before making the jump.

But I've had constant work (mainly fitted furniture and handmade kitchens) and for the last couple of years been booked up well in advance.

I suppose it comes down to how much you need to take as a wage.

My net profit wouldn't be much more than minimum wage if paying £1500 or so a month on rent/rates

 

[MikeSav]

Not necessarily, I set up around 3 1/2 years ago.
I had the benefit of building a small workspace on my land and acquiring tools before making the jump.

But I've had constant work (mainly fitted furniture and handmade kitchens) and for the last couple of years been booked up well in advance.

I suppose it comes down to how much you need to take as a wage.

My net profit wouldn't be much more than minimum wage if paying £1500 or so a month on rent/rates

I'm glad to hear you're busy.
I don't have expectations of making any serious money woodworking, I just love it.
It certainly seems that the rent and rates can be the killers, and that's what makes me wonder if there's a way to minimise the damage by either sharing a workshop with several others, or renting it out from time to time

 

[johnnyb]

the way to approach this is become level headed and brutal. don't change reality to suit. renting a workshop makes you face reality much sooner. millionaires having bespoke kitchens would love you to work for minimum wage.

 

[johnnyb]

not being productive is the worst enemy. After that it's correct pricing. this is why specialisation is the way forward. I'm flabbergasted the number of one man bands that also spray there work( me included) one I know has a mezzanine spray booth so has to lift the work using a block and tackle! doing everything in house is a surefire way to slow things down.damhik

 

[Doug71]

My workshop is about 900 square foot, more space would be nice but I find it plenty big enough for a one person joinery business.

I don't pay any business rates as I get small business rates relief, I think if the rateable value is below £12,000 you get the relief, at the moment anyway.......