Finding a space for your woodworking business can feel urgent when you are eager to get started. Unfortunately, this is one of those areas of life where all too often, haste makes waste.
Eagerly snapping up the first space you see, not taking time to assess the location or the terms of the lease can lead to a lot of money spent for no good reason. Building owners and landlords are out to get the best possible deal for them, not for you.
Besides these, there are also a lot of scams in the real estate rental market — people who dishonestly collect money to rent out buildings they do not own. Never deal with anyone who cannot show you the inside of the space they are renting out and provide you with the key onsite.
As excited as you might be, you really do need to slow down a bit and consider some important things.
If renting your own woodworking shop is not feasible, you can take advantage of already set up woodworking spaces in your area so you can have access to premium grade equipment that startup shops typically don’t have the budget for. There are many other perks that come along with renting out space vs. starting your own shop.
Looking to rent out shop workspace? Check out our woodworking shop rental services.
Networking is Key
Most cities have a Chamber of Commerce. As an entrepreneur, it is in your interest to join your Chamber of Commerce and other merchants’ associations in your area. There you will find experienced business people who can help you to understand how the commercial rental market works, who is good to work with, and whom to avoid. Often, these people are also the first to be aware of a new space about to become available.
Pick the Right Neighborhood
It helps to drive and walk around the commercial districts of your city. See where potential competitors are located — it may help to be near your competitors so that shoppers looking for similar products to yours will see your shop. Also, think about what other products complement yours.
If you are a cabinetmaker, will your customers also be shopping for kitchen fixtures? If you make patio furniture, perhaps it would be advantageous for you to be near a nursery or garden center.
If you understand your customer base, you can leverage other businesses in the area that are likely to bring the right customers to your vicinity. It also helps to be near a major transportation route.
Of course, all this comes at a cost. The more desirable the location, the more you will be paying. Everyone likes to save money, but there is a point at which saving more will hurt you.
Customers will not want to come to a shop that is too far out of the way or in a neighborhood they perceive as dangerous. You need to factor this into your budget when searching for a location.
If you plan to locate in a rural area, it is even more important to locate on a major transportation route. In these locations, there may not be an adequate local customer base, and you will need to be visible to travelers passing through.
These need not be long-distance travelers; people from nearby cities, especially if they travel that route frequently, may consider your business to be within a reasonable distance from their homes, and come back specifically to see.
Do You Want to Work With a Broker?
This can be a good idea in many cases since a reputable broker will in turn work only with reputable landlords, and brokers have access to listing databases that can show you many more potential locations than you could find on your own, even using
Craigslist or LoopNet. A good broker also has the leverage to help you negotiate the lease terms so that you are not at the landlord’s mercy.
Of course, this, too, comes at a cost — brokers will charge 7 to 10% of the lease cost. Still, the National Association of Realtors or your state’s realtor association is a good place to look for a reputable broker.
Is This Starting to Feel Expensive?
Yes, “It takes money to make money,” but realistically, you might not feel that you have the resources as a startup to pay a broker’s fees, monthly rent, deposit, and assorted other costs.
You might be considering setting up shop in your garage. If you have a garage, that can be a viable option, but there are certain considerations. Most garages will need modifications before they can be properly used as woodworking shops.
Woodworking shops produce two main nuisances, noise and dust. Noise abatement can be achieved by installing a drop ceiling with sound insulation.
If this renovation has not been done, can you afford to do it? A dust collector hung from the ceiling will help with the dust. Then, too, you will need to account for the electricity your tools use. Are there enough outlets? Will you need a lot of extension cords?
Another reality of life is that not everybody lives in a house with a garage. If you live in an apartment complex, you probably cannot have a home-based woodworking shop and will need to find an offsite location.
A Good Way to Get Started
If you are a beginning woodworker, without an established reputation, it will take time to build up enough sales volume to afford your own retail space. But in the meantime, you still need a place to do your work.
Fortunately, there are options. You could buy space in an existing woodworking shop. This will allow you to share expenses with the other woodworkers using that shop, instead of covering all expenses by yourself.
Another option is to find a woodworking club where you can buy machine time. This carries a very low risk and low liability, and is a good option for beginners or those who are more interested in woodworking as a hobby. In that case, renting a space in a woodworking shop is ideal.
IsGood Woodworks offers shop space, machine time, and storage space for the aspiring woodworker. You can choose from several different plans — the ones that best fits your needs.
