re: Becoming a professional woodworking or not

I think one of the biggest challenges to making the transition is realizing that it’s no longer a hobby and now must be treated as a business. A huge mistake folks make is underestimating, or even ignoring, overhead. Once you begin making items for a profit, you have entered into another realm. General business liability insurance, licensing, zoning restrictions, and sales tax collection are just the tip of the iceberg. Even if you’re starting out in your garage, you have to consider things like increased utilities as a part of your overhead.

We spent two weeks talking to several different insurance agents about the level and types of general business liability insurance we needed. Product liability, general loss, equipment, and inventory were all factors. The type of product manufactured, how it’s delivered, and if we did installations all added to the price. And it became very apparent we won’t be building anything for the juvenile market, I couldn’t begin to pay those premiums.

I don’t regret making the transition. I did a lot of leg work before we opened the doors and have had few surprises. There are a lot of resources available to guide you.