How to Start a Joinery Business

Starting up a business is a difficult process, it requires a great deal of hard planning, researching, and of course, financing. The latter can be obtained from a variety of sources, including family and friends, personal savings, and bank loans/overdrafts. However, there is only so much these can offer, and many wannabe entrepreneurs find themselves unable to find the finances they need to supplement their growth plans. Business Angels are small syndicates/individuals who can normally invest anything between £75,000 and £250,000 in your business, in return for a percentage share of the firm, known as equity. On top of their financial pledge they will also offer their industry expertise, contacts, tips and analysis to help your company achieve its targets.

A Business Angel will want to see a detailed cash flow forecast statement for the first year at least, which you will need to prepare fully before you pitch your investment offer to them. Remember it is their own hard earned money they will be putting into your business, so they are going to want to see evidence that you have thought every detail through and will often ask some tough questions to make sure your business plan is up to standard.

When you are making your estimates, you need to think about how you are actually going to generate business/orders for work. Your marketing needs to be sufficient to locate new clients, as well as using existing ones from your previous work that you have built a good rapport with, or any building firms you know of who may be willing to put regular work your way. There is a seasonal aspect attached to joinery work, especially when working on new houses/extensions/roofing contracts. As these projects tend to take place during the summer months, it may be that the winter periods are quiet, and so you need to have a strategy in place to combat this.

Most importantly, you need to do enough market research so that you know exactly what you will be up against in terms of your competitors. Reputation is everything in the joinery industry - one bad job, one bad experience for a customer and you could be tarnished, and other customers will be wary of using you. Word of mouth advertising is key when providing any form of service, so on top of the quality of the work you carry out, you need to make sure it is done professionally and whilst keeping the customer's needs at the forefront of the task.

Again, the need for thorough planning and research cannot be emphasized enough; before a Business Angel would even consider investing in your business they need to know you have the drive and industry expertise to make a success of your business. They are not there to take over, they are simply there to provide you with the ability to move forward and grow. Whilst it is true that Angels are attracted to risk, they do so in a calculated manner, and are not willing to put their money into a business where every avenue and possibility has not been thoroughly thought through.