Budgeting is a big part of running a woodworking or carpentry business. Saving money wherever possible could help you turn a decent profit on each project. As a skilled woodworker, you’re probably using all the carpentry tips and tricks in your toolbox to run your business as efficiently as possible.
It might seem like finding true savings takes a lot of work. However, there are many simple ways to save money without cutting corners. These carpentry finance tips could help you assess how you run different parts of your business and find ways to reduce costs.
1. Buying in bulk
Buying large quantities of some materials could help you take advantage of discounted prices. Certain types of lumber, hardware, and fixtures might be available to purchase in bulk. If you use a lot of something—for example, nails and screws—this strategy could help you cut costs on everyday materials.
Carpentry materials aren’t the only bulk purchases you might consider. Office supplies, such as paper and pens, can also be bought in large quantities. This can also be applied to business cards and some other marketing materials used to promote your carpentry business.
Bulk buying may also help you save on shipping or delivery charges. Your local lumber yard, hardware supplier, and online sellers might waive delivery fees if you purchase over a certain dollar amount in a single transaction.
2. Pre-planning projects
Effective planning could also help you reduce your business costs. A poorly planned project might result in wasted materials and labor. Taking the time to completely think through a build before you start cutting may help you lower your costs.
There are many woodworking tips when it comes to planning out a project. For example, it may be nice to work with luxury woods, but they are more expensive. Instead of making every part of a project from high-cost lumber, you may be able to substitute cheaper options for parts that are not visible.
Reducing waste is another cost-cutting benefit of careful planning. Unused materials are like throwing money in the trash. Instead of leaving them to collect dust in your workshop, you may be able to put scrap, recycled, and secondary cuts to use in non-visible areas of your work or in smaller projects.
Scheduling unnecessary labor is another money waster. If you are hiring contractors for a job, it helps to have a strong understanding of when you’ll need their help and for how long. Careful planning could help ensure that they are only on site and being paid for the days they are actually needed.
3. Keep accurate inventory
It happens to the best of carpenters: You buy something new for a job, only to discover you already had that item in your workshop! While this is often a simple annoyance, it can be an expensive mistake if you are unable to use or return what you have purchased.
Keeping an accurate inventory of your tools and materials could help you avoid overbuying supplies. This construction business tip also applies to your office supply orders.
4. Caring for your tools
High-quality tools may cost more upfront, but their purchase could pay off in the long run. It’s often more expensive to replace or repair cheap tools than it is to buy more expensive ones. This is especially the case if you take good care of your carpentry implements.
Regular cleaning and maintenance can help keep power tools in working order and potentially extend their life. Caring for replaceable parts (such as saw blades, drill bits, and sanding belts) may also help you get more use out of them.
5. Consider business insurance
When you run a woodworking business, anything can happen! Having business insurance could help you prepare for accidents and common mishaps, which may help you save money.
Woodworkers and carpenters face potential claims and lawsuits from different areas of their business. A client could trip and injure themselves in your workshop. You could accidentally provide incorrect advice on a construction site. Your tools could be damaged or stolen while you are working. These and other incidents could all hit your bank account hard.
Carpenters’ insurance (policies designed with carpentry contractors in mind) could help you cover the costs of everyday risks that could blow your budget. While this may seem like just another expense, you might face a much larger bill without different types of coverage.
BizInsure makes it simple to compare and buy carpenters’ insurance for your business. Start comparing quotes online today!