Is it worth a career change?

I know someone who runs another woodworking store. He's been established for quite some time. I don't know exactly what he makes, but it's definitely not 400k.. He says he's "surviving". One interesting thing he told me was that since most of the big machines (tablesaws, etc) have gone to China, the margins have evaporated. Every year, the cost of fuel and steel goes up, and they have less margin. His store has the 10% of Jet/Delta/etc days once a year. He told me that many customers are not impressed, making comments like "that doesn't even cover tax".. but he told me that the only way they are able to do those sales is by having Delta absorb 5% of the discount.. in other words, they don't even make a 10% margin on the machines.

He said they make a decent margin on accessories.

So basically, you definitely aren't going to get rich off it. If I was you, I'd look around the other woodworking stores locally and see what kind of volume they do (look to see how busy they are). Since so many people buy woodworking stuff online now, I think it would be very difficult to start a new store. My guess is it would take awhile to build a customer base to be even just "ok" proftiable.

If any of the information I gave above is false, it's unintentional. I'm just going by what my friend told me.

I considered that, too. I was serious enough about it that I went to Parkersburg for a day for the official presentation for prospective franchisees. Most of what I learned is restricted, so I can't share numbers and such. But, if you're able to survive lean times while business ramps up, which could take a few years, and you can come up with the capitol needed to start up and carry you through that, the potential exists to earn a reasonable income. You *will* have to work your a** off, I expect.

Your best source of information will be Woodcraft. Call Bill Caroll at Woodcraft HQ (800-344-3348), and get the skinny from him. He's a really nice guy, and he won't lead you astray.

Wow. No offense, but the mere fact that you asked the question indicates you have better not do it. It's going to take a substantial cash outlay to get started and profits won't be realized as quickly as you need them, maybe never. You can't just put up a sign and start making money - it doesn't work that way. Now, if you plan to keep your "day job", then it might be worth trying out, just to see how it feels and what prospects, advertising, rent, storage, insurance, fuel, taxes, etc etc etc look like. Believe me, being your own boss is going to take a LOT more work than putting your straight-40/week. I'd save it for when the kids are thru college at least, and you have at least three year's salary put away that you won't have to spend on the business so you can be sure to survive until it'll support you, if it ever does. Also don't neglect your age; leaving now might make it hard to go back, and even if you do, it won't likely be for your current wages since you'll be starting all over again.

Pop

Pop1

| I'm in my early 50's and have been a programmer, designer, and | manger of same for almost 30 years. I feel it's time for a change | but still have to pay a mortgage and 3 kids in college. | | I'd love to open a Woodcrat store. Does anyone have any idea how | much I could take home? I know it depends on location, location, | location, and other things like the qulaity of help, etc. But are | we talking $40K and that's a struggle or $400K? What should be my | expectations?

There used to be a Woodcraft store down a block and across the street. I gather that the entry fee is much closer to the $400K number than $40K - and that the franchisee has very little control over what or how much is stocked. It sounded to me as if deep pockets were a definite requirement.

Even so, about a year ago the store was closed because the owner's pockets weren't deep enough. I've missed it - the prices weren't fantastic; but the store was convenient and the staff was savvy and always helpful. Enough so that I've made an effort to keep in touch with them since.

On the other hand, if you use the time while the kids are in school to plan the next phase of your life, then (graduation) might be a good time to make a well-planned change and open your own woodcraft (lower case intentional) store - but I wouldn't expect the entry fee to be small nor the net ROI to be very high.

-- Morris Dovey DeSoto Solar DeSoto, Iowa USA

It would be a stretch for me to come up with the approx $150K money (I listened to the video on the Woodcraft website regarding their franchise - they say average investment is $500K with owner putting in $150). I have two rental houses I'd have to sell to get that and would have to pay some hefty tax on my profits. I certainly don't have years to build a business, I darn well better be making money the very first day.

Note to self: buy a powerball ticket tonight.

Art Greenberg wrote:

Save your money. Retail is a hard, hard way to make money. If you are just looking for a change in what you do, try fine carpentry. Your overhead is low, your rates are good, and your risk is substantially less. If you have decent people skills, know who can afford your rates, and know how to sell 'trust' then you will do ok.

After you have gained some experience, and possibly some associates, take that down payment you were going to blow on a franchise, put it down on an old house in a good area then flip it for profit. You won't make a ton of money, but it's steady work, and you are in control.

My 2 pennies

In my area its about 40 miles to a specialist store like woodcraft.

To get to it I pass close to a menards, Fleet Farm , Home Depot and a Harbor Freight place.

That usually means its got to something really special for me to stop , and I shop online now for the best prices.

If your kids were out of college and you had a small pension fund and your house was paid for , I would say go for a retail store , it could take you to retirement .

Good advice. However, I expect a McDonald's to have enough income the forst month to pay expenses. Otherwise why even do a franchise?

My brother is in the convenience store business and he makes money day

P> > I'm in my early 50's and have been a programmer, designer, and manger

Never Enough Money

I echo the other sentiments here. If you really want to do this, you should have a good plan. Speak with a financial advisor and look at what it would take to get things rolling.

I had the opportunity to buy a local furniture store. Guy has had the business for close to 35 years and wanted to retire. His take home was under $50k a year. And that's working 5 days 10 hrs a week. I had to think about all sorts of bills - inventory, fixing the building up, etc. I ran the numbers and figured I couldn't make it work. Be 2 or 3 years before I saw anything coming back.

This is really got to burn a hole in your soul to get involved with a francise. There's going to be money going out the door and long days/nights before you can get settled.

It's attractive to think to be own your own (I've got the same background you do). Perhaps you should think of contracting work in the high tech area? Still a lot out there.

MJ Wallace

We need a strong 3rd Political party in the US.

Imagine... Republicans, Democrats, and Woodcrats!

Sorry...

If you're really serious about this, request the franchisee information information via Woodcraft's web page. After you get and digest the information, if you're still interested, you may be able to contact some distant franchisees.

There should be CPA's and lawyers local to you who specialize in small business matters, some with great experience working with franchises, who can be money in the bank when researching the business. They can help you formulate questions and possibly clarify data provided by Woodcraft HQ. Good franchises can give you a great boost and take some of the risk out of starting up, but you'll pay (possibly a lot) for the service.

The most successful Woodcraft store in my area, Manchester, CT, is attached to a well run woodworking school. Both the school and the store have shown good signs of growth and development over the last 4-5 years they've been open, which is an excellent sign. The store occupies an excellent, easy to find and travel to location.

One important point to remember is that in the end, Woodcraft is a retail store. You'll be hiring, managing, and selling, not woodworking. Retail is retail, regardless of what you're selling, and some background in supervision, store management, customer service, and merchandising will help a great deal toward your success.

Any retail store involves lots of menial labor like cleaning, dusting, arranging items. Finding the right staff and keeping them excited and engaged is very important, as store order and cleanliness and staff attentiveness counts for so much in a walk-in retail operation. Nothing eats profits like a dusty, messy store and rude, inattentive employees.

If you're not in retail now, remember that many of the important times you should be in the store might be the same time that you now spend with family. Some people LOVE running retail stores, others can't stand it.

I know some very successful retailers well, so if you honestly think it's for you, go for it!

Good luck!

Yep, the Woodcrat party would be nice. Their platform could include: Tools in every garage. Encouraging splinter groups. Board, not boring. Go with the grain. Use domestic hardwoods first, use foreign exotics only if they enter legally. Oil for tools. Make the playing field level with a planer. No Child left behind a table saw. Tool stamps, instead of food stamps.

Fri, Dec 1, 2006, 9:54am (EST-3) snipped-for-privacy@yahoo.com (Never=A0Enough=A0Money) doth mumble: I'm in my early 50's I feel it's time for a change I'd love to open a Woodcrat store. Does anyone have any idea how much I could take home? What should be my expectations?

My first thought was, why ask here? My second thought was, why ask here?

If it was me, and I was serious, I'd start out by asking Woodcraft, and any Woodcraft store owners I could track down. I'd probably try to get a part-time job at one of the stores too. Then I'd start talking with my bank. And, as distasteful as even the thought of it is, I'd probably check with a lawyer somewhere along the line too. Before I did ANY of this, if I was married, I'd talk with the wife, and get her views. If I was serioud.

JOAT I am, therefore I think.

What would the Woodcrat party's platform planks be?

-- Mark

Interesting. My wife thinks I should do the same. But I keep hoping to write the next PKZIP instead. ;-) Then I could buy a store & not have to share it with anyone...

IIRC the Small Business Administration (SBA) has a program where retired business execs talk to and perhaps mentor those wanting to start a small business. I talked with a couple of them about 8 years ago when I attempted a small business. I suggest you look them up as a source of possible good advice.

Good Luck!

-- Mark

I'd ask myself this question: If I take woodworking out of the equation, would I still be enthuastic about the idea of opening a retail business?

If you answer yes to that, then you'd really have to ask: What kinds of retail businesses are likely to be sucessful?

I imagine that there are _many_ types of businesses that would come before a woodworking store on that list.

I know that I'd love to spend my 8hrs. a day in a woodworking store. I'd really like working with the people that I'd be likely to meet. And it would be great to be a part of one of those really cool stores. In other words, there are many 'emotional' reasons to want to do it, but how many 'good business decision' reasons are there?

Sorry to be a kill-joy - I've spent my fair share of time daydreaming about similar things.

Mike

You said "8 hours" and "store", in the context of running a business, same sentence.

The co-owner of my airplane is the co-owner of a bicycle shop that's in the top 10 of the industry's "Top 100" bicycle shop list... 8 hour day... I'll tell him that! And he's got a partner and 16 full-time employees!

Do you mean SCORE (Service Corps of Retired Executives)?

If not, add them to the resource list.

If you came up with those on short notice, I'd forget the woody store and concentrate on the writing. You have a flair.

Or, run for office. If that's your platform, I'll vote for you - you couldn't do much worse!

Career changes are based on three factors - money, quality of life and satisfaction. Please note that they are as close to being mutually exclusive as you want them to be.