How to Start a Wood Refurbishing Business

Start a wood refurbishing business by following these 10 steps:

1. Plan your Wood Refurbishing Business
2. Form your Wood Refurbishing Business into a Legal Entity
3. Register your Wood Refurbishing Business for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Wood Refurbishing Business
6. Get the Necessary Permits & Licenses for your Wood Refurbishing Business
7. Get Wood Refurbishing Business Insurance
8. Define your Wood Refurbishing Business Brand
9. Create your Wood Refurbishing Business Website
10. Set up your Business Phone System

We have put together this simple guide to starting your wood refurbishing business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is very important. Read our detailed guide on how to name your business. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.

What are the costs involved in opening a wood refurbishing business?

The costs involved in opening this type of business will largely depend on what tools you have available in your garage. If you already have many of the needed tools handy, this will significantly decrease the costs to get started. Some basic items needed to get started include a sander, sandpaper (180 grit and 220 grit minimum), scarper, screwdrivers (various sizes, both Phillips and flat head), paint buckets, painters tape, brushes (large, medium, small, and detail size), rollers, wood stain, polyurethane, wood paint, work table, gloves, respirator, and furniture.

If you did not have any of the tools to get started, the total costs involved would range from $600 to $1,000. Additionally, you would need to find furniture to practice on in order to hone your skills. This could be furniture you already have in the house, something you find on the side of the road, or something purchased from a thrift store. Starting prices can range anywhere from $0 to $100 per piece.

What are the ongoing expenses for a wood refurbishing business?

Ongoing expenses will often be your supplies and materials. You will quickly build a nice selection to use on your wood furniture. However, you will also go through some materials more quickly than others. Some of these recurring expenses include, but are not limited to, purchasing more wood stain, paint, painter’s tape, and sandpaper.

Who is the target market?

The target market for a wood furniture refurbishing business are individuals who are filling out their home with sturdy furniture pieces. These individuals crave original furniture that is not mass marketed and built to withstand the test of time. Since real wood furniture that has been refurbished is often more costly than other furniture options, these individuals tend to be well-off in their professional career or retired. The demographics of this market include those who are 35 to 60 years old with an income of $60,000+. A particular interest does not typically define this group, but they do all have a love for real wooden furniture.

How does a wood refurbishing business make money?

This type of business makes money by finding real wood furniture for as cheap as possible. Once the furniture is found, you will restore the piece and make it look incredible using common woodworking products. Once the piece has been restored to its former glory, you will flip it for a nice profit. This can be anywhere from $50 to $200 or more, depending on the piece.

How much can you charge customers?

You need to charge what your time is worthwhile also covering your costs for supplies and the furniture. For the time and tools required, it is fair to start at $50 per hour. If you purchase a piece from a thrift store for $25, put $15 worth of products into it, and spend three hours on the piece, you are at a total material cost of $40 and labor cost of $150. You can easily charge $250 for this piece and gain $60 in profit.

How much profit can a wood refurbishing business make?

The earning potential with this type of business is unlimited. Since some pieces may come to you free, and you can make hundreds in profits on just one piece. Other furniture pieces may come to you at a small cost, so they may only provide a small profit. If you can refurbish, list, and sell even just 10 pieces of furniture in your first month at a $50 or more profit, you can earn $500 in profit. This can make a significant dent in your initial startup costs. If you keep on this trend of 10 pieces at $50 profit per month, you can earn $6,000 in profit in your first year. The more you sell and the higher your profit margin, the more profit you will make every year.

How can you make your business more profitable?

The best way to make your business more profitable is to use as much free furniture as possible, shop for supply discounts, and hone your skills. The less money you have to put into each piece, the more you are going to make. If you get a free piece of furniture, use it! There is nothing wrong with asking your family or friends if they have any furniture they no longer want in their home.

In addition to using free furniture, purchase your stains, paints, brushes, and other supplies when there are sales. You can check big box stores and compare prices with local businesses. Find where your most commonly used supplies are cheapest and inquire when they do sales on these items. Once the sale begins, stock up!

Finally, by honing your skills, you will significantly decrease the amount of time you need to invest to complete a project. As you refurbish more wooden furniture, you will identify how to complete the task at hand more efficiently. This means you can finish more projects in less time. However, remember to keep charging appropriately. Just because something takes you 30 minutes now doesn’t mean you shouldn’t charge for the three hours of work it took you when you were learning these skills. You deserve to be paid fairly for the skills you have mastered.

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your wood refurbishing business is sued.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

This business is right for an individual who doesn’t mind starting small in their home and growing into a full-time wood refurbisher. This business will likely be a side hustle for at least a year or two, depending on the growth potential in your local area. Those in larger cities will have an earlier time accessing the target market than those who are in small, rural areas.

In the beginning, this business will take some blood, sweat, and tears to build. Unless you have help from the very beginning, you will be taking on every project, material shopping trip, social media campaign, and online store update on your own. However, the end result will be worth every second.

What happens during a typical day at a wood refurbishing business?

You will get up somewhat early in the morning and go find your next piece of furniture. This will either be on the side of the road or at a thrift store. Once you find the piece, you will bring it home, clean it up, and get pictures and videos to show the piece’s initial state. Then, you get to work sanding and taking progress pictures.

Once the piece is sanded, you will decide if it needs an oil, stain, or paint. As you are waiting for the first coat of product to dry, you will tease your followers on social media with some progress pictures and videos to peak interest. If you have any inquiries, you will answer those. Additionally, you will check in on any other furniture pieces you may have been working on previously. Do those other pieces need another coat, or are they finally ready to be listed?

Once you have finished tending to other tasks, it’s time to get back to the piece at hand and add that second coat. From there, it is a waiting game. Once the piece is dry, it is time to get the best product pictures possible and write an attractive description. Now, you put the piece online and try to get others to share your latest creation.

Once the piece is up, you need to interact with other furniture refurbishers online. You will learn about the latest techniques and see some other great pieces. By now, the sun is setting and you will check in on your analytics to understand how profitable your business has been compared to other days.

What are some skills and experiences that will help you build a successful wood refurbishing business?

The best thing about this business is you really do not need any specific skill set or past experiences to get started. Being comfortable with tools and knowing the difference between a Phillips head and a flat head will certainly help. However, all you really need is a passion for restoring wood to its former glory.

What is the growth potential for a wood refurbishing business?

The growth potential for a wood furniture refurbishing business is dependent on how much time you invest and who you are targeting. This has the potential to grow into a six-figure business if you hone your skills and target the right people in your local area and online. Fortunately, you are not limited to the area where you live. You do, however, need to learn how to ship out these pieces if you sell them online. Your first year may only land you a couple of thousand dollars in profit, but it will allow you to gain the testimonials you need and build client relationships that produce return customers.