A cabinet shop can be started in a homework shop, but in order to do it right a person would need to have a spacious place to do the work. They would also need to have real experience in cabinetry and wood working detail. A knowledge of how to do the work and an artist eye would make a terrific combination to some one looking to own a business in this field.
The obvious way to get into the business is to buy an existing firm and capture many pluses that come with an existing business . Equipment, a place to do the work and a customer base are very good advantages when buying an existing business . A cabinet shop is really a creature of its reputation with contractors and the advertising it does to the homeowners. A good sales staff with a portfolio of quality pictures of prior jobs is also important in getting new business . The homeowner business will be far more profitable than the contractor business .
Both of these customer types are important to keeping the cash flow coming into the business . Some owners in this business will take the contracting jobs just to keep their staff busy. They know they will make money on homeowner jobs.
Locating or finding a business to start or buy
Location of the business is not as important as a retail store’s place of business . The importance of locating the business is having the floor space to do the jobs that come in the door. Also the shop must have solid equipment and a staff that is good at their job. Experience in this business is gained by doing the work and not by book learning. A hand on knowledge is the only way to learn to be an artisan at woodworking. Most people in this field have been doing this kind of work since they were a kid. They may have learned it from their father or another relative.
If you have been doing some small jobs for neighbors or small contractors in your home, it may not be that hard to expand your business as you have some valuable references. Slowly taking on bigger projects is a way to grow your business and still be stationed at home. At some point you will need to get a shop and add an employee or two. Be prepared to spend money and not make a great deal at first. You are at the mercy of customers needing to have work done in order to get the money in the door. This will grow by word of mouth and by some very pointed advertising. It may be a good idea to hook up with a good commission sales person to bring in the business . Again you will have to pay for talent as these sales people who can do the job are highly paid.
Finding an existing business that is for sale is going to require a search. Talk with business brokers about their listings. They may know of a business in your area and they will have listings in other cities. This is not a common business that comes to market so you will have to be patient and maybe check with several business brokers. Once you find a likely candidate, the fun will start.
The art of the deal
The buying of a business is much more complicated than buying a home. There are many factors to take into consideration like, company profit, existing clients, number of people on staff, areas of possible growth, current financials and why is the owner selling. Is the asking price something you can afford and pull off without a huge growth in business ? Will the current owner consider carrying paper to make the deal happen? All of these questions will need to be answered and many more. A business broker will know many of the answers to the business details. If he has done his job, he already knows the answers. A pro in this area can make a deal go far more smoothly than if the owner and the buyer was negotiating face to face. The point is let the broker earn the commission he will be paid if the deal goes through.
Money is needed to make the sale
If you have all of the money needed to make the deal, you are in the catbird seat. If you are going to need help with the purchase price, you will need to find a source to help you come up with the difference. A lender of some sort must be found. Your banker, a relative, a friend, a business lender from the internet or the owner himself may be willing to help raise the needed money. If the owner will take part of the purchase in a loan, then you have a start in getting together the funds to buy the business . If the owner is involved, the purchase price will probably increase some. Business buying lenders are found in great numbers on the internet and they are professionals at doing this kind of loan. The other sources mentioned are iffy, but they sometimes will make the short-term money available.
Money is the name of the game in this kind of a purchase. It will make the difference in the price and the possible success of the venture. Be careful of too heavy of a debt load when buying a business . This can sink the project right from the start.
This is a unique business that the owner must bring exceptional skill to in order to be successful. Woodworking talent is at a premium to do this business right. A staff of professionals must be acquired in order to grow. Talent comes at a price and must be kept happy in order to keep them. The new owner must be a sales type person or be willing to hire a talented person in this area. Sales is the name of the game in any business and this one is no different.