It can be difficult to decide between operating as a small one-man carpentry company or hiring subcontractors or employees.
Each option has its own benefits. However, it is important to weigh all options and decide what is most important for you.
We’ve put together a list of all the benefits and disadvantages of being the sole employee of your carpentry company to help you understand your options.
One-Man Carpentry Business Benefits
There are many advantages to starting a single-man carpentry business, especially if it’s your first business. You have many benefits, including controlling your time and cushioning your bottom line.
A one-man carpentry business is a sole proprietor who owns and manages all aspects of a carpentry business.
Here are some benefits to being your only employee in the carpentry trade:
- You can enjoy higher profit margins on your carpentry jobs. As a business proprietor, it is one of your top priorities to bring in profits. There are no employees who will take away your earnings if you manage the whole business on your terms.
- It is possible to keep your prices competitive – As a carpentry team expands, prices need to increase to pay for the additional salaries. Because you are the sole owner of your business, your prices can be kept competitive in your local area. Your clients will likely get estimates from many companies. Offering one of the fairest estimates will win you additional business.
- You can get all the leads you need with a simple marketing strategy, such as carpentry Facebook ads.
- You won’t have to stress over managing people. While managing people can be rewarding, it can also cause headaches.
- You can keep a better track of the business. If you’re the only person in charge of the day-to-day operations, you can better understand everything going on within the company. This includes customer relations, equipment stock, and revenue growth.
Key Takeaway: Starting your own one man carpentry company can be very rewarding. Being the sole employee will give you many advantages.
The drawbacks of an individual electrical contractor
We’ve already discussed the benefits of owning a solo carpentry business. Now it’s time to discuss the downsides.
Understanding both sides of the coin will help you make better business decisions and achieve your goals.
In five years, where do you see your business? In ten years?
Although being the only employee in your company can be a great way to increase your profitability, you may not have the time or the capacity to handle all the jobs you’re offered.
You will start seeing leads come in through your local outreach and marketing efforts. You might find that there are more leads than you can handle.
You are losing customers who don’t want to wait or schedule appointments weeks in advance. They’ll call another carpenter if they have to deal with wood rot in their home.
It is not a good idea to miss out on opportunities that could become recurring business.
- If your carpentry business is receiving a steady stream of leads that you cannot handle, it may be time to consider hiring a subcontractor or employee.
- Hiring will impact your profit margins, but you can handle twice as many jobs.
- As long as your team doesn’t grow too quickly, you can maintain healthy profit margins.
Is there a benefit to employing carpentry subcontractors
You might sometimes need an extra hand but don’t want to take on the responsibility of employing your own team.
- You can also work with a carpentry subcontractor to help out during busy times. They will take on the jobs you need without being a full-time employee.
- You won’t have to pay for a subcontractors’ equipment, health insurance, or paid time off as they work for multiple companies.
They are a good option if there is an increase in leads in a specific season.
But it is crucial to remember that your business reputation can be damaged if a subcontractor underperforms.
Key takeaway: When you use subcontractors, make sure that you have someone you can trust to deliver satisfactory service.
Is it possible to do this all by yourself?
It is now easier than ever for a single person to operate a carpentry business with the help of apps. Quickbooks can be used instead of hiring an accountant, or customer relationship management (CRM) tools make it simple to keep in touch with customers without the need for an administrator.
You can handle everything yourself if you don’t want the headaches associated with managing people.
Today, solo carpenters make good money.
How to hire employees for your carpentry business
You might consider adding help to your team as your business grows and you start to receive more carpentry leads than you can handle. You can get help in two ways: an administrative assistant to handle the backend operations or an additional carpenter to take on more projects.
- Assess your current situation and identify what is consuming your time.
- Hire someone to do the tasks you rather not do so that you can focus on your strengths.
The verdict: A single-man carpentry business is possible
You can run a single-person carpentry business. However, it is important to consider your growth goals before you decide if you can do this with just yourself.
It is possible to be a one-man show when you start out. However, as your leads increase, you might need to reevaluate. You will be the brain behind the company and need to weigh the pros and cons of a solo company.
Frequently Asked Questions
What do you have to do as a one-man carpentry business?
Besides doing the carpentry work, you will also have to manage your bookkeeping, sales, marketing, accounting, and scheduling.
What’s the best way to advertise a one-man carpentry business?
Other than getting referrals, posting regularly on Facebook groups and answering questions from other group members is an inexpensive and effective way of getting your name out there.