Woodworking Business

How Profitable Is A Woodworking Business? (Updated for 2024)

Pat Walls

•

Updated: October 9th, 2024

How Profitable Is A Woodworking Business? (Updated for 2024)

So you want to start a woodworking business?

And the first question that came to your mind was, “well, are woodworking businesses actually profitable?”

With a market size of $282B - there’s plenty of business to go around.

Especially considering:

You could start a woodworking business with as low as $7,500
Based on our data, woodworking businesses generate an average of $189K per year

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a woodworking business.

Let’s dive in!

Is a woodworking business profitable?

Yes, a woodworking business is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $189K per year with an estimated gross margin of 65%, you could expect to recover your investment within 8 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your woodworking business.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your woodworking business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a woodworking business worth it?

If you’re wondering if a woodworking business is worth it, the answer is a big YES. With woodworking businesses, you have the potential to earn $189K per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $282B, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a woodworking business to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful woodworking businesses case studies.

Examples Of Profitable Woodworking Businesses

Here are a few examples of profitable woodworking businesses, and a few more details about them:

1. Ventana Surfboards & Supplies ($96K/year)

David Dennis, co-founder of Ventana Surfboards & Supplies, was inspired by his business partner's reclaimed and eco-friendly surfboards, leading them to launch an environmentally responsible surf company. Frustrated with the industry's pollution and unsustainable practices, they started small, marketed their unique products through compelling content and stories, and have seen success with their line of boards, apparel, and surf supplies. With tripled board values over the past three years and profitable operations from the start, they plan to continue growing their brand organically while giving back to ocean conservation organizations.

Is it profitable? Yes
How much money it makes: $96K/year
How much did it cost to start: $15K

Growing A Business Selling Surfboards As Pieces of Art

Ventana Surfboards & Supplies co-founder David Dennis discusses their environmentally responsible surf company that has seen their boards triple in value over the last three years, and has grown a profitable eco-apparel line, focusing on compelling content and stories to attract customers.

Read this case study

Read by 7,738 founders

2. Frailey Woodworks ($360K/year)

James Frailey, a retired engineer, birthed Frailey Woodworks with his family around a Thanksgiving table in 2019. Combining expertise in engineering, architecture, and fine art, they crafted a $30K/month business specializing in mid-century modern furniture, including popular sit/stand desks and vinyl record consoles.

Is it profitable? Yes
How much money it makes: $360K/year
How much did it cost to start: $10K

My Family-Run Woodworking Business Makes $30K/Month

Transform your woodworking side hustle into a $30,000/month family business by leveraging diverse skill sets, focusing on niche markets like high-end audio consoles, and maintaining stellar customer service with a personalized touch.

Read this case study

Read by 1,641 founders

3. SketchUp For Woodworkers ($12K/year)

Zack Hall, a software developer and woodworker, came up with the idea for SketchUp For Woodworkers after struggling to find updated SketchUp tutorials for woodworking. He saw the potential in an old website that had valuable SEO and purchased it for $5,000. Zack then partnered with an experienced woodworker to create a comprehensive online course teaching woodworkers how to use 3D design software. The business is currently earning about $1k/month and Zack plans to focus on SEO, affiliate marketing, and video marketing to grow the audience and increase sales.

Is it profitable? Yes
How much money it makes: $12K/year
How much did it cost to start: $7.5K

I Built A $12K/Year Online Course & Tutorials Business [For Woodworkers]

Zack Hall started SketchUp For Woodworkers, an online course for teaching woodworkers how to use 3D design software, after acquiring an old website and investing $5,000, with the business now earning around $1k per month and attracting almost one sale per day through organic SEO traffic.

Read this case study

Read by 4,160 founders

Learn more about starting a woodworking business:

Where to start?

-> How much does it cost to start a woodworking business?
-> Pros and cons of a woodworking business

Need inspiration?

-> Other woodworking business success stories
-> Marketing ideas for a woodworking business
-> Woodworking business slogans
-> Woodworking business names
-> Woodworking business Instagram bios
-> Woodworking business Instagram captions

Other resources

-> Woodworking business tips
-> Blog post ideas for a woodworking business

How much can you make with a woodworking business?

With a woodworking business, you can make an average of $189K revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $7,500. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 8 months.

How much does a woodworking business make a week?

Based on our data, average weekly revenue for a woodworking business ranges around $3.94K. As such, you could see monthly revenues of $15.8K.

To know if your woodworking business achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your woodworking business.

How much do woodworking businesses owners make?

The income of a woodworking business owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established woodworking business is about $3.94K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a woodworking business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Woodworking Business Profit Margins

Generally speaking, a woodworking business can expect profit margin of around 65%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a woodworking business, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, woodworking business owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, woodworking business owners can ensure long-term sustainability and profitability for their business.

Woodworking business owner salary

The salary of a woodworking business owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established woodworking business, in a prime position, might see an average weekly salary around the ballpark of $2.56K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a woodworking business may be a promising business to start - but the success of your woodworking business mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable woodworking business.

Part of

Starting A Woodworking Business: Everything You Need To Know

‹

›