Do This to Make $2,000/Day with a Woodworking Business!
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- čas přidán 6. 06. 2024
- Angel City Woodshop has grown to an average revenue of $60,000 a month making custom woodworking projects at their workshop in downtown Los Angeles. We’ll learn how founder Paul Moorhead built such a profitable woodworking business in this episode.
This video has been sponsored by Tailor Brands. Get your LLC with Tailor Brands: tailorbrands.go2cloud.org/SH8w
For a limited time, you can also get 20% off Tailor Brands plans using the code upflip20 tailorbrands.go2cloud.org/SH96
Paul didn’t set out to make furniture. Like many, he moved to Los Angeles to pursue a career in the entertainment industry. He’d always been drawn to working with his hands, and he soon found a new way to be creative: making furniture. After starting off with woodworking projects for friends and family, he established his shop and hasn’t looked back.
Of course, starting a business is never easy. Paul lived in his wood working studio for two years while he built his business, sometimes working all-nighters and 100-hour weeks to finish projects. We’ll find out how Paul kept himself going through those busy times and how that effort has paid off in the form of revenue growth and success.
Today, Paul has a team of craftsmen in his shop, and they take on projects that don’t just require artistic vision but also engineering, 3D modeling, and other advanced skills. We’ll find out how Paul built and trained his team to ensure consistent quality across his woodworking projects. He’ll also share the systems and tools they use to design and build the unique custom furniture their customers come to them for.
If you’re looking for more advice about how to start a woodworking shop, check out our past interviews:
How Blacktail Studio Rakes in $15K/Month Doing This! ►
• How Blacktail Studio R...
How to Start a $30K/Month Woodworking Business ►
• How to Start a $30K/Mo...
Resources
www.angelcitywoodshop.com/ - Learn more about Angel City Woodshop on their website
www.upflip.com/academy - Launch and scale your business with our expert-led Academy
www.upflip.com/podcast - Hear more interviews with business owners on the UpFlip podcast
www.upflip.com/blog/how-to-st... - Step-by-step guide on starting a woodworking business
Timestamps:
00:00 - START
00:38 - Intro to Paul and Angel City Woodshop
01:13 - Story behind the shop
02:03 - Cost to start
04:02 - #1 factor in his success
05:22 - Skills you need to succeed
06:37 - Low points as a business owner
08:41 - How to attract customers with little marketing
09:56 - Hardest part of starting a woodshop
11:20 - Tailor Brands Sponsor
12:36 - Attracting early customers
13:54 - Profitability and consistency of revenue
14:51 - Online presence
15:56 - Tools and equipment
17:08 - Workflow management systems and tools
18:46 - Fan blitz
20:42 - Commercial vs. residential
22:14 - Walkthrough of key equipment
24:19 - Day-to-day as an owner
26:02 - Hiring and training team members
26:58 - Profit margins and costs per project
28:01 - Good month vs. bad month
28:52 - What to look for in employees
29:57 - Deciding what wood to use
31:21 - How to delegate tasks
32:19 - Why woodshops fail
#woodworking #woodworkingprojects #woodworkingbusiness
Get your LLC with Tailor Brands: tailorbrands.go2cloud.org/SH8w
For a limited time, you can also get 20% off Tailor Brands plans using the code upflip20 tailorbrands.go2cloud.org/SH96
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Interesting and in-depth, thank you. I do want to point out one thing though. Paul said he is happy with 15% to 20% profít BUT when you asked him the price of the one piece he said $3,000 ($1,200 in profit). That’s a lot higher than 20% in profit, so if that is a typical markup, he definitely wants more than 20%.
Can you find people making small items like kitchen knives or custom phone cases or something like that in a small workshop, and so on?
Also, can you ask them questions like why did they succeed, when others doing the same type of business failed?
Forgot to get to how he actually prices his jobs. He was going to say, but then you guys said later, but later never came... Lol!
As a woodworker with a full shop and profitable business, I would add a couple things. (1) know your numbers! Just like Shark Tank, you have to know your numbers. Time yourself and how long it truly takes to make product A, product B, etc. Time the whole process from selecting/receiving the wood or materials, to the time it takes to package and ship. (2) I like what he says about only making purchases that you need...I would fine tune that to say go cheap at first on things to MAKE the product, go big on advertising/marketing, that will actually get you the sales. There is nothing worse than having $220k of machines and tools and materials, and not enough steady orders to actually pay yourself or the rent.
Thanks for adding more insight, SImon! I'm sure others will find this helpful. How long have have you had your shop?
What kind of wood working do you do and how to do you attract customers?
Retired cabinetmaker here: My shop fed and housed my family and put my kids through school. I spent less than 1% of gross revenue on marketing, in fact for several years before I retired, my advertising costs were zero. Word of mouth, coupled with high quality and good service, is all I ever needed. My advice to someone starting up? Stay small. When hiring, attitude is 90% and experience is 10%, only one can be taught. Always deliver just a little bit more than the customer is expecting. Remember to take time to enjoy the benefits of owning your own business, you'll earn them.
Time is important but not this important
Where do you get good wood in a reasonable price? You know, not that I’m dreaming or anything.
Paul, thank you for the opportunity to meet with you and get to know you and your business. You did so well and I trust our viewers will be greatly blessed by what you had to share.
Right back at ya! It was a fun experience. Thanks again for the opportunity.
Thank you both for this. I'm a woodworker that's been thinking of making a business out of it. The advice in this video is so much more practical and honest than I've found elsewhere.
Go for it! Chances are you already have a decent amount of contacts who could potentially be your customer. Take a look into building custom kitchens from start to finish including install if you want. A friend of mine is doing it with tremendous success locally. Kind of a different gig than spectacular custom pieces here but far more profitable, especially if you do the full install
I am happy to have stumbled across this video. I’m working a woodworking job as a finisher and am slowly working my way up the artisan carpentry process to handling raw lumber. The skills I am learning are beyond valuable to me, even as a finisher. I started out as a carpenter’s apprentice and went on to sales after college, but that didn’t pay the bills and it was limiting. Thankfully I am back in my passion and making things. Your story is inspiring, and I hope to one day have my own shop! The economy and my limited experience make things difficult at the moment, but I am happy where I’m at and have realistic goals set up for moving forward. Wish me luck in this on going endeavor!
As a woodworker myself I appreciate these interviews
why sir?
Same
Glad to hear!
Same!
Indeed! It’s invaluable info
Wow. So much transparency in this video. Well done.
What a great interview. You asked all the right questions and Paul seems like a wonderful person who has worked hard to build his business. Thanks to him for his candor and openness.
Glad you enjoyed the interview John! Paul is great. Are you new to our channel?
Pursuing your dreams is admirable, but it's crucial to understand what you're getting into. As someone involved in the operations of a small woodworking shop in NYC, I'm amazed at the number of people who start woodworking businesses without considering the profitability challenges. Moreover, since many owners transition from being hobbyists, there is a shortage of skilled workers and workers in general in the industry. For the past three years our business has struggled to find employees who support our growth despite offering in-house training. It seems like we're all competing for a limited talent pool within the area. With intense local competition and imported products, starting a business in this industry can be challenging. Everyone in the custom sector is vying for the same 20% of customers. Additionally, through networking, I've observed that many business owners paint a rosy picture of their business without disclosing the actual financials. So, when people share numbers, I take them with a grain of salt. It would be helpful to know the actual number of woodworking businesses that close each year.
Paul is very humble, thanks for interviewing such an incredible person and creator! I'm hoping I can take steps like him in what I'm passionate at.
Thanks for watching, Springfield! We are wishing you success and know you take those steps.
Cool interview. I run a part-time wood working business building work benches during the spring summer season here in Canada. Not anywhere close to where this guy is, just a couple clients month making an extra 200-500$. But one day I'll get to where this guy is. One day 😊
I love woodworking! This is one of the most informative videos of the realities and mechanics of woodworking as an income, thanks for putting this together! An often unspoken element of the craft and tradition is the integrity within it and how it permeates into the craftsperson over time and experience. This guy is super organized too. legends..!
Glad it was helpful for you, Boris!
New sub from Nova Scotia. What can I say...IMPRESSIVE! Extremely informative, nicely structured flow, great quality video, etc. However, what struck me most was the forthright honesty in both the questions, and the answers. All the success in the world to both of you.
Welcome aboard, Clayton! Really glad to hear your feedback. What would you like to see next on our channel?
Incredible interview! Also, as a woodworker, this information is so valuable.Thanks for doing this interview and for sharing! Paul sounds like an awesome guy who has certainly put the work in!
Glad you enjoyed the video! What would you have liked to ask Paul?
His advice on when and how to scale up is invaluable. There's always another tool I want, and I have good credit, so it's tempting to just go buy it. His advice on when to buy, when to rent, and when to outsource is fantastic. Worth watching the whole video just for that.
That's so relatable. Easy to be attracted to certain types of tools that allow you to do very "specific" things. Thank you for taking the time to watch it! ☺️
All of these interviews are great but I think this gentleman's responses are spot on. Very direct, honest, conscice responses. 👏 thank you both.
Glad you enjoyed it!
Love this bro - hard work, smarts, and passion. Keep it up!
So good, what a mix of craftsman and businessman combined.
Great interview… many good points about growth and job pricing. It’s a wonderfully fulfilling business to be in and can really serve you well creatively and financially… but it can suck the life and joy out of you if done wrong. This interview is a keeper for those considering transitioning from a hobbyist woodworker to doing it as a business.
Thanks Paul
Best
Greg
Hi Greg. Paul here. Thanks for the comment. You're absolutely right. I have definitely had some dark, brutal and painful seasons since I started the business. It's definitely a battle to retain the reason of why and how you started. I think that's why so many experts in the field "warn" others to proceed with caution! If you make great money doing something else and love woodworking, maybe just keep it as your hobby. But, if you really know it's what you want to do... go for it. You just have to know it will sometimes be boring, it will be hard, and you have to find your own way of continuing to feel the joy and fulfillment of the craft itself.
Appreciate the insight .. valuable and FREE information that will prove invaluable as always guys. Thank you from the UK.
You're most welcome ;)
Good questions and good answers. Overall a really solid interview!
This is one of the best business-model videos I've seen.
Paul's story and advice were very helpful, but I have to stay that the interviewing skills really stood out. I think I last saw when you interviewed Blacktail Studios and this was even better. I especially like the questions surrounding why businesses fail and how to hire and delegate.
Thank you, woodworking is broad to satisfy with everything tool but basics can help you achieve, nice interview and class.
This guy is awesome. I was looking at his Instagram and wow. Some of his work I can’t even figure out how he built it. He is extremely talented.
Thanks for the support, Shayne! Paul's work is beautiful!
Thank you guys so much for this interview! I learned a whole lot and the shop looks absolutely awesome! Keep it up man! 👍
Our pleasure! Really glad to hear you enjoyed the interview, Marcus. Are you looking to get into the industry?
Great advice guys. Keep up the great work you two.
Piękny film, piękna historia. Na polskim YT obejrzałem chyba już wszystko o drewnie i nic mnie nie zaskakuje. Czas odkrywać Amerykę ponownie :) jesteście na wysokim poziomie. Pozdrawiam
An enjoyable watch. Great practical advice. They clearly have some great talent there. Nice shop.
That was a fantastic video on starting a business and developing it to a larger sustainable business. Commonsense advice.
I liked the equipment review about what you need to cover most projects. I would like hear a review on his vacuum and his CNC. Make model, pros and cons. Thanks, John
@@gae384 The 15-20 % margin is after the expenses. (So given a revenue of 60k and 20% margin, the business will have a profit of 12k and expenses of 48k, including salary, rent, machine related costs, costs for material etc.)
Great video, per usual on this channel. You ask the pertinent questions. As someone who started a woodworking business 3 years ago, I can't stress enough, DONT GROW TOO FAST. Keep your overhead low and buy tools as you go.
Great points, Joel! Wishing you success in your business.
Very good & direct questions and very honest & helpful answers...well done!
Thanks for the feedback, Tim!
I just joined a community woodshop.they provide absolutely every tool nail screw glue cnc I joined for a yr. Iam definitely a newbie. But having fun for sure
Golden info, much appreciation
Thanks for the support!
Thank you so much this was amazing!
This is a great interview, ya’ll have some really great inspiring interviews. Keep up the good work
Thanks for watching, El Maestro! What industry would you like to see next on the channel?
Good advice at 2:48 calculate your cost and tirple that, even for small "garage" woodworkers.
Paul is very correct, being a people pleaser has tremendous negative affects on your mental health. Always feeling like you are being taken advantage of leads to feeling resentful. Clearly Paul was able to overcome this limitation by being good at what he does and by working hard at it. Never forget that people like this have invested a tremendous amount of their time, the single most valuable thing that we have in life. Thank you Paul for your honest evaluation.
Hello Bruce how are you doing, nice to meet you here.
@@helenarusso Hey there, nice to meet you Helena.
@@brucewilliamsstudio4932 Hello Bruce. I hope you don't mind me writing you? I'm from Minnesota.
@@brucewilliamsstudio4932 Hey
Very interesting and informative conversation, both guys were great in the way they asked/answered questions, and they are both great at what they do.
Glad you enjoyed it, @Andrea!
Amazing video! Love the honesty
Glad you enjoyed, Adam!
Just Paul worked for culinary in France. Go for it!
Hello Brad how are you doing, nice to meet you here.
Great video! Very inspiring.
You did asked all question just right .. all question were answered very well.. Thanks for this upload..
It's our pleasure, Nikhil!
Would love to be in a shop working with guys like you. Looks awesome.
If I would need any in the future, this guy will be the guy. As a business owner, I love those who put their passion and love into their work, its' like you put your soul into the piece of wood that turns to the piece of art.
your work and designs are so beautiful - thank you for sharing behind-the-scenes philosophy
Glad you love this video! Your appreciation means a lot to us and motivates us to continue producing content like this. Do you have a business topic you want to see next on the channel? 🤔
This guy is the best interviewer I have seen online. Mostly, I think that's just because of his demeanor and personality. He really makes the person he's interviewing comfortable which allows them to answer questions well.
Appreciate the kind words! ☺️
“You can do it too!”
Has a multimillion cali investor lol
Im a custom wood maker from philippines, I can relate start small. Your shop It's my dream shop for me. Keep up the good work. God bless!
Thank you for your kind words! Starting small is definitely a great way to pursue your dreams in custom woodworking. Keep honing your skills and following your passion!
I'd love to hear more about developing those relationships with design firms.
What a great video I learned so much this is going to give me a head start Thanks a million
thank you so much for this ❤ As a man who loves woodworking, I've have learn a lot from you guys. God bless you. Loves from Nagaland
Glad you love this video! Your appreciation means a lot to us and motivates us to continue producing content like this. Do you have a business topic you want to see next on the channel? 🤔
Will sure update if I need anything🙂
For me the hardest was physically, it's a really hard job, especially when you begin and need to push 10-12hrs per day.
Also, finding your first employee is another big step !
Fantastic interview! I really enjoy these videos. I set the goal to have my business an LLC by the end of the 3rd quarter
You got this! How long have you been in the industry?
@@UpFlip maybe 5 years. Time to grow
Awesome! Wishing you success!
Thank you for this!!
I like the interview and you did seem to ask all the right questions but when I'm left with is the question I got from looking at the thumbnail and title: what do I have to do to earn $2k a day? I was expecting to see a specific woodworking product/service he sells a lot but what I guess what you meant was that you have to be passionate about woodworking, put in the hours and get the right clients (I know I'm leaving out more stuff then the above)
Entrepreneurs--love what you do, be the best at what you do, work your ass off, buy the basics, rent the rest, and don't let a client screw you, do high-end. And remember the market is a roller coaster ride. Just remember, the competition is always on your heels. (Have a faithful wife to keep your books--IMHO, FME.) Love this video.
Glad you loved our video, Kurt! You're very lucky to have a wife to help with that! Are you in the woodwork industry?
Great video. Learned a lot!
Really nicely run business. Enjoyable and informative video ... and great looking (HUGE !! ) shop floor space. As someone who has already paid the price, can I please implore you and your staff to always always always wear safety glasses?
Great insightful video! i would be interested in how he developed his skills to the level he is currently outputting. his work is impressive considering he is self taught and learnt all of it reletively short amount of time
The problem with skilled trade work, is that people wont buy the things we make for the price we value them, they rather buy a cheap alternative that is ready now. I was a leatherworker and woodworker for 15 yrs as side hobby money. The amount of time and money it takes to make a custom work of art is not worth the low amount you earn by doing so. Low volume market can not pay the bills. Increase production, you lose quality. Ect..ect..
What a brilliant interview! As a small business woodworker, I thoroughly enjoyed this!
Thank you, Trevor! Do you have your own shop?
@@UpFlip Yes but very small. I turned my 2-car garage into a workshop.
Awesome! How long have you been in the industry?
Thank you to Upflip and Paul, smart words to start a business, Paul has been there, I like what he said about starting small, just buy what you need.
You're welcome! Are you planning to start a business or you already have one? ☺️
@@UpFlip no to starting and no to I don't have a business, I really like what you said in real terms...
Very interesting interview, good job!
Great interview, very informative
Thanks for watching, Efrain! What would you have liked us to ask?
Great video. Great host and business owner.
Unique sideboard..love your work..continued success sir
Glad you love this video! Your appreciation means a lot to us and motivates us to continue producing content like this. Do you have a business topic you want to see next on the channel? 🤔
I’m a lead carpenter at an established company, and I have my
Own woodshop and do woodworking and wood turning in my spare time and sell and give gifts away. I am currently trying to make the transition to full time and my
Own business. It’s scary. This video reaffirmed a lot of what I already knew, and I did learn some new things too.
The following comment is about the embedded advertisement for Tailor Brands:
A single member Limited Liability Company (LLC) is considered to be a disregarded entity by the IRS. Also, if you fail to maintain strict corporate formalities (and most small business owners do fail at this), then the corporate veil can be pierced and your personal assets can still be attached.
I love these series.
Thanks, Peter! What would you like to see next on the channel?
Awesome video!!! Great interview. Thanks for sharing all this valuable info to help myself and others grow as woodworkers.
Our pleasure, Matthew! What industry would you like to see next?
More woodworking shops but also maybe companies that do signage? Chanel letters or even companies that do displays for exhibition shows etc. Continuing to hear from others would be great.
There's two CZcamsrs that I'd love to hear their stores. That's "Finish Carpentry tv" and "Inside Carpentry Spencer Lewis" .
Thanks, Matthew! We have a few sign shops we're looking at. Thanks for the suggestions. We'll definitely make note of these!
Awesome. Looking forward to your future videos
Awesome interview, great questions, thank you
Thanks for your feedback! Is there anything you would like us to cover in the interview?
Interesting interview! Well done
Thanks for watching, Thomas!
Wonderful video!
Great to hear!
This was a great video. I love woodworking and this was very informative and thorough. Congratulations on buisness
Thanks @dnnortheastseeds ! We're happy you enjoyed the video! Are you thinking of turning your woodworking into a business of your own?
@@UpFlip I’d love to as a hobby only but I prefer making seeds for people and mostly vets to grow their own medicine.
I loved this one! My dream is to have a wood shop and be a woodworker full time.
That's awesome to hear, Earl Jeremy! It's never to late to start your own. If you want to learn the nitty gritty of starting any business, please head on over to our blog and listen to our podcast for more detailed information. Best of luck! 👊
Thx for sharing
Great information. Inspiring.
Lots of great information here! What would you have liked us to ask?
Hello how are you doing, nice to meet you here.
All anyone needs to get started is a table saw, small air compressor with 1 1/2” nail gun, Brad nailer, 7/8-1 1/8” stapler and a cup spray gun, small 13” planer, 3x12 belt sander, 5” orbital sander. Under $3k for everything if you get the Porter-Cable pancake compressor with finish nailer set and a descent cabinet saw.
Not my profession, but huge amount of useful informations...thank You!
Always a pleasure!
Hell, in CA, you almost NEED to make $60K/mo. just so you can pay the rent on the building!
Great video! I found it very informative and genuine.
Thanks Scott! Happy to hear you found the video informative. What did you find the most valuable?
@@UpFlip He just seemed willing to share on his experience both good and bad.
this is very good informations in a short time was fun to watch.would love to meet you in person some day when i am in L.A.
Hoping to have a business like this in the future. Would be really awesome
Wishing you success Tobias! How long have you been woodworking?
@@UpFlip I've been getting an education in woodworking for about 3 years now. I've definitely made a lot of progress there, but the business side is often overlooked. Which is why your videos are so informative. Getting some inside knowledge on the know how, in the financial aspects is invaluable, so thank you!!
Of course! We're really glad to help. We have a lot of big plans in the future as well that we think will be really valuable for business owners.
Thanks paul for the sharing. By the way what's the price of the first project for the church?
Awesome input for every entrepreneur out there
For sure! Are an entrepreneur yourself?
I'm a Woodworker as well and like others in this post, I am gradually moving towards this being my full-time job. This is one of the few great videos of its kind. Would have liked to hear more about his pricing but still a great vid. Thanks!
Thanks for the feedback, Daniel! Glad you enjoyed the video overall.
This is the cold hard fact be willing to lose money and don’t get into it if your not passionate …facts are there is no way around it get ready to lose money; that’s why you must love what you’re getting into !!!
16:41 the owner wasn't letting him put that woodpecker on a lean😂
Thanks for watching! ☺️
Love all the info. Those numbers are very inflated due to living in LA though. I couldn’t imagine having to make 20k a month to make a profit….
It seems to me the unsaid success key here how appealing his furniture pieces are.
loved it
Thank you for giving back or forward depending on how you see it.
Did you learn a lot from this video? What are your takeaways? ☺️
Wao hebat cara pertukangnya canggih
Such a cool guy
I really love woodworking but I’m new to it so the confidence is t there yet. Hoping I can get this off the going
Best of luck! 👊
Impressive woodwork…very unique..you inspire …
Glad you love this video! Your appreciation means a lot to us and motivates us to continue producing content like this. Do you have a business topic you want to see next on the channel? 🤔
I'll retract my last comment, the dude has clearly put his soul into his company, amazing
Great awesome perfect necessary excellent exceptional advice . Got it
Hello Aaron how are you doing, nice to meet you here.
What is the scraper being used to remove the glue nibs? I want it!