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Advice on business growth and strategy?

3/10/22       
Amit Member

Website: http://cabstore.ca

I purchased a cabinet making business in March 2021. it was previously an owner managed business, where the previous owner did everything and had help on a hard time basis throughout the years.

The shop is 3500 ft.². I have a CNC , Biesse edge banding machine, sliding table saw and spray booth…

The challenge I’m having is deciding whether I should specialize in something or continue to offer all things cabinetry. I find being a jack of all trades limits my ability to scale…

What type of specializations are there that I can focus on for a shop like mines?

I also don’t have any employees. I am finding it extremely challenging wearing all the hats… I am truly getting burnt out. I had someone working full-time for the last three months but I didn’t have enough work to keep him busy all the time…

I’m not looking to create a big business. Just a small team of maybe two people in the shop. Does anyone have a similar structure with a similar shop? What is your business strategy? As the owner what do you focus on and what do the employees focus on?

I’m new to this Business and I am struggling to find direction. Just looking for some advice from someone that’s been in this position before…

3/11/22       #2: Advice on business growth and strat ...
Jim Member

Don't know what you were doing before you bought this business.
Are you able to run all of the equipment? That is basically what I started out with 40+ years ago with the exception of the cnc. Started out doing smaller office finish outs for general contractors. Reception desks , break room and bath room cabinetry,etc. Moved into Medical and Dental cabinetry for a while always improving on my quality and being able to deliver on time . Made a pretty good living with no help. The thing that moved me up in the game was meeting a couple of young architects that were looking for someone to do high end residential contemporary millwork. These were big houses and thet take forever to complete and that worked well for me since I could get ahead of the game by coming in after framing was done and get a general idea of the dimensions I was going to be working with and start my drawings and cutlists. Been doing that for them and a few others I have picked up from word of mouth for 25 years or so. Still by myself in a one man shop.
Ready to retire now but it has been a great ride.
So find a need and fill it. There are a lot of builders and architects out there that really hate the quality of work being turned out now. Many shops have the machinery to turn it out but lack the expertise to do a quality finish and install. Good work generates good word of mouth and that is what brings quality customers.
Also, don't be afraid to charge good money for good work.

3/12/22       #3: Advice on business growth and strat ...
Amit Member

Thanks for the response Jim. Previously I was working as an accountant for about 15 years. I’ve always had an interest in woodworking and decided to purchase a company last year.

In one year I have learned how to operate the CNC, program jobs, edge band, spray polyurethane and lacquer, assemble cabinetry, understanding how to design cabinetry… and a little bit if installation.

Installation is the most difficult part for me right now. I try my hardest to outsource but it’s hard to find good people that do good work with the install.

Throughout your career, did you have help? Did you just hire a helper whenever you needed it?

How many projects per month were you pushing out?

3/12/22       #4: Advice on business growth and strat ...
David R Sochar Member

Website: http://acornwoodworks.com

By all means specialize. Find a niche and exploit it. Gourmet woodenware for kitchens, Reproduction aircraft parts for home builders, Restoration louver doors for people restoring old Chris-Craft boats, Reproduce a line of antique furniture, Religious artifacts, fraternity paraphernalia, collector displays for ...pens, lighters, or whatever.....

Stop and think about your other interests and what you you would like to do. Don't accept "I can't do that". Someone has to be the one that has that dream job - why not you?

I recently wrote a book in part, to help shops expand into making of custom wood doors. My shop has never been out of work in 32 years. A wonderful niche.

While we specialize in doors, we also make staircases, windows, furniture, wall panels and more. Keeps it from getting boring.

4/6/22       #6: Advice on business growth and strat ...
mose li  Member

Website: http://www.3qmachining.com/

As small business owner, you already invested money for the company, now you don't have enough jobs to hire 1 or 2 more employees, that is fine, let's do it step by step.

First of all, you need to make profit for the business, even small or few, but at least you can make money from it, so you can keep doing it until you make more money one day.

How to make this work, you don't have to hire full time employee, try to save money at everything, that you can outsource or co-operate with other cnc shop, saving every money means you can keep the business running for longer time when you don't make profit from it, and forcus on solving problems for customers and market to get more business.

12/22/23       #7: Advice on business growth and strat ...
Clarke

Website: http://hydrogenexecutor.app

Amit, building a cabinet business demands strategic choices. Consider specializing in high-demand areas like custom kitchens or unique furniture pieces.


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