I inherited an entire woodworking business, how do I make profit?

There is at least $300,000 worth of machinery in this massive shop, but I have no idea what to do with it as I don't woodwork. For example, there are two massive saws called "Akhurtz KS 3200" and other ones called Voorwood. What do I do?

can't post the shop because it will dox me

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  1. 3 weeks ago
    Anonymous

    Unironically you should sell the shop unless you have a lot of money to make a bunch of business mistakes before finding your groove.
    Are there any employees? Any records? If it's a business there must be customers right?

    • 3 weeks ago
      Anonymous

      Employees left to find new work, the shop was closed for a month before I got it, I have about $6,000 in savings so theoretically I could buy wood and start making something with it.

      There are a bunch of templates for cabinets, sinks, doors, windows etc. Also, each drawer is filled to the brim with expensive looking bits and saws. The last businesses he worked with show Lowe's and Raytheon on the invoices

      1. obtain wood with burls or other large sought imperfections
      2. sell live edge slabs cut from them for thousands
      3. offer planing of large slabs post resin

      alternatively find someone who is talented but doesn't have the means for equipment.

      side note: my buddy is a lifelong woodworker who makes custom furniture largely out of reclaimed wood, each unique, large and taking a moderate amount of talent costing 4-5 digits on average. his wife paints stupid carved ducks poorly whittled from shit wood. guess who makes more?

      Planing of large slabs? so people send me their slabs and I chuck them in this massive ass planer for them? What would I charge per unit? I have absolutely no idea how to price that. There is a grizzly planer and a cantek double surface planer

      • 3 weeks ago
        Anonymous

        >Planing of large slabs?
        first you sell them the raw cut slabs, they pour the resin nu-meme and bring the piece back to you for planing.

        you charge what the market will bear and enough to keep you in business. less and it's not worth it, but the pieces can go for five figures and none of the risk is really yours.

        with large format saws and planer you can also sell large unfinished pieces for mantels.

        Two forklifts are on site, if I go the selling route should I sell the machines seperate you think?

        yes because what the frick are you going to do with a forklift if you aren't moving big wood. sell one now and one last because you will want one to load heavy machines if you liquidate.

        • 3 weeks ago
          Anonymous

          Five figures really? Holy shit I'll have to dig into this

      • 3 weeks ago
        Anonymous

        >The last businesses he worked with show Lowe's and Raytheon on the invoices
        Call every one of them and tell them you're back in business.
        >What would I charge per unit? I have absolutely no idea how to price that.
        You just said that you have a bunch of invoices. Read them.

      • 3 weeks ago
        Anonymous

        To start a business you'd sink that 6k trying to cover employees, insurances and comps. It doesn't sound like you have the products, production processes, or clients figured out. If you can fire up a couple of the machines and quickly produce a dozen $50-$200 pieces per day, you're a one man show until you can get set up for employees. Otherwise it makes more sense to sell and rent out the space.

      • 2 weeks ago
        Anonymous

        okay, since you have no idea what you're doing you should look into liquidating that business and maybe using the funds to do something different.

      • 2 weeks ago
        Prepare

        Find the employees.
        Reopen it as employee-owned and operated.

    • 3 weeks ago
      Anonymous

      Two forklifts are on site, if I go the selling route should I sell the machines seperate you think?

  2. 3 weeks ago
    Anonymous

    1. obtain wood with burls or other large sought imperfections
    2. sell live edge slabs cut from them for thousands
    3. offer planing of large slabs post resin

    alternatively find someone who is talented but doesn't have the means for equipment.

    side note: my buddy is a lifelong woodworker who makes custom furniture largely out of reclaimed wood, each unique, large and taking a moderate amount of talent costing 4-5 digits on average. his wife paints stupid carved ducks poorly whittled from shit wood. guess who makes more?

  3. 3 weeks ago
    Anonymous

    call an auction company and liquidate it before the overhead drags you down

    • 3 weeks ago
      Anonymous

      >call an auction company
      I bet you hire plumbers

      >before the overhead
      which I bet is practically zero you fricking moron

      • 3 weeks ago
        Anonymous

        go ego fish on reddit. nobody here gives a frick about some chinkshit grizzly junk you got

      • 3 weeks ago
        Anonymous

        Are you a child who lives with mom? Depending where he lives tax alone could be over 1k a month

      • 3 weeks ago
        Anonymous

        >I bet you hire plumbers

        You cannot match the exposure auction companies get to INDUSTRIAL buyers who have deep pockets and are set up to move what they buy.

        Check out auctions in your state online and attend a few just to learn how they work. Self and bro outfit our home metal/mechanic shops via auctions and to understand them you need to make an effort. It's not hard but ignore anyone without serious exposure to that world.

        OP can compare fees by doing due diligence. Most of the industrial liquidation world is via auction because it works and the big boy firms. If he doesn't like the terms offered he's free to reject them.

        OP can clean the shop and determine the legal status of the land. If he owns it free and clear he can lease it to pay property taxes and make a profit while retaining a useful asset.

        OP, do you already own your home free and clear? What are your circumstances? I'd certainly live in a large warehouse or shop building but I'd have it inspected (necessary to price it before potential resale) to see if it requires big bucks like a roof. Selling the equipment to pay taxes on the inheritance and tidy up the building could be wise since owning large property free and clear is a good thing if it's not in a dangerous hood. If it is, sell it FSBO after consulting with a real estate lawyer who can handle the transaction.

        Make no decisions in haste.
        Get on manufacturing forums and subreddits to find people who specialize in that gear. Study to know exactly what you have. Not hard. Just decide to do it and use the time you normally waste on the internet to get educated. You can take good quality pics like they do for good online auctions of you want to sell the equipment piece by piece rather than liquidate in one shot.

        Employees left to find new work, the shop was closed for a month before I got it, I have about $6,000 in savings so theoretically I could buy wood and start making something with it.

        There are a bunch of templates for cabinets, sinks, doors, windows etc. Also, each drawer is filled to the brim with expensive looking bits and saws. The last businesses he worked with show Lowe's and Raytheon on the invoices

        [...]
        Planing of large slabs? so people send me their slabs and I chuck them in this massive ass planer for them? What would I charge per unit? I have absolutely no idea how to price that. There is a grizzly planer and a cantek double surface planer

        Six grand isn't nearly enough capital to start a business.

        Two forklifts are on site, if I go the selling route should I sell the machines seperate you think?

        Sell the forklifts last so you can use them. If you keep the building keep one forklift. Got trucks?

    • 3 weeks ago
      Anonymous

      have any recommendations? I thought auction companies severely israeliteed you when it came to fees

      • 3 weeks ago
        Anonymous

        they do which is why

        call an auction company and liquidate it before the overhead drags you down

        is a fricking moron

  4. 3 weeks ago
    Anonymous

    Why not partner with someone who has experience with woodworking or lease it out. The goal should be passive income.

    • 3 weeks ago
      Anonymous

      Did "he" have any good friends in the business? If so, you could risk giving them a call, telling them what's up, asking if they could give you a couple of hours to look things over and give you their perspective on it. I know that here you're going to get a lot of "Don't trust anyone, they'll all frick you!" but you can always double check stuff on the internet, or possibly have a second guy in the industry come and then compare their advice. You could possibly make them a deal if they'll do you a solid with advice. Sounds to me like you could well be having an auction in the future.

      None that I know of, I lived a state away when he suddenly passed. I might try to lease the shop out to a larger business and see if they want to use it as a location for a fixed contract

  5. 3 weeks ago
    Anonymous

    Did "he" have any good friends in the business? If so, you could risk giving them a call, telling them what's up, asking if they could give you a couple of hours to look things over and give you their perspective on it. I know that here you're going to get a lot of "Don't trust anyone, they'll all frick you!" but you can always double check stuff on the internet, or possibly have a second guy in the industry come and then compare their advice. You could possibly make them a deal if they'll do you a solid with advice. Sounds to me like you could well be having an auction in the future.

  6. 3 weeks ago
    Anonymous

    If you don’t have their sales channel and no experience either the most money efficient thing to do is leasing it out for now.

    You can start a woodworking business but the first few years you’ll be working full time making very little while most of the machines are just catching dust. Woodworking isn’t really a capital intensive trade unless you’re a complete furniture factory, so the expensive shop doesn’t give you a big head start in the market.

    If I’d had just $6k in savings I wouldn’t risk quitting my day job to become a woodworker. Maybe as a weekend side job but there’s no way this will make you a profit quickly. Or just spend every weekend in there for two years and see if you can make it work

  7. 3 weeks ago
    Anonymous

    you are basically fricked no workers, no sales channels you probably don't know how to do shit, so you are fricked everyone with know how left. put up for rent at one those business sale sites, maybe you can make them pay you based on the income they make.

  8. 3 weeks ago
    Anonymous

    Yeah you skipped over the important stuff, like is the building leased or paid for, how much is the electrical/heating bill and WTF are you gonna do about the property taxes. If you're not into this business, I'd get out now, before the headaches pile up.

  9. 3 weeks ago
    Anonymous

    well, if it didn't come with clients, workers to run the shit, contracts, etc

    then time to liquidate it

    What else are you gonna do

  10. 3 weeks ago
    Anonymous

    >There is at least $300,000 worth of machinery in this massive shop, but I have no idea what to do with it as I don't woodwork
    Sell it.

  11. 3 weeks ago
    Anonymous

    >I have three hundred thousand United States Dollars worth of machinery and tooling I literally don't know how to use sitting around, I don't want to actually learn how to use it in any quick time frame, and I don't have money to fart around with and learn how to use it and stay positive or at least break even
    >What should I do guys?
    Well, my not-moronic advice would be to sell it all and pocket a cool 300k.
    If I were moronic, I would say actually bother learning how to use it all, and understand you're really gonna frick up the first month or two. If you want to take the moronic route, you should start watching YouTube videos of woodworkers ASAP, (You would be surprised how much you can learn just watching some moron make an epoxy slab table start to finish) and talking to people in the field to get an idea of what sells and what doesn't.

  12. 3 weeks ago
    Anonymous

    everyone here saying your fricked acts like etsy doesn't exist and you can operate fly by night until your know what you're doing.
    just learn to take good pictures

    • 3 weeks ago
      Anonymous

      Stupid noob detected with no industrial background. Stay in your lane, child.

      Yeah you skipped over the important stuff, like is the building leased or paid for, how much is the electrical/heating bill and WTF are you gonna do about the property taxes. If you're not into this business, I'd get out now, before the headaches pile up.

      ^This very much

      In all seriousness. Unless this is going to be your profession, you need to liquidate the company or sell it to someone you know (who WOULD be able to operate it) for a fair price.
      You could always hire some people and run the business, but unless you are very knowledgeable about this and want it to be your future. I say sale.
      I recommend listing all machinery on Facebook marketplace. You’re going to get a LOT of tire kickers and low ball shitters - ignore them. If you can sell things for a couple hundred bucks below market value, you’ll be gold.

      If you’re in central Florida, I know quite a few people who would be interested.

      ^Concur

      >$300,000 worth of machinery
      More like $15k, woodworking stuff is cheap.

      It will def need serious research to see what each goes for, but used old machinery does go cheap. Owners who bought shit new have dreams of glory but only SPECIFIC knowledge matters.

      If it’s all paid off and you liquidate it your are kind of a bum semi-SRS.

      Wrong answer. It requires subject matter expertise to make money in industry rather than get raped. Many experts still go bankrupt and OP has no play money to burn. Overhead is real. Stop thinking like a child.

      If OP can clear the building AND it's rentable/leasable by being in a desirable location (location is fricking key) then that could work well IF OP studies how to manage that asset effectively.

      • 3 weeks ago
        Anonymous

        i work for a manufacturer and make more money than you

  13. 3 weeks ago
    Anonymous

    In all seriousness. Unless this is going to be your profession, you need to liquidate the company or sell it to someone you know (who WOULD be able to operate it) for a fair price.
    You could always hire some people and run the business, but unless you are very knowledgeable about this and want it to be your future. I say sale.
    I recommend listing all machinery on Facebook marketplace. You’re going to get a LOT of tire kickers and low ball shitters - ignore them. If you can sell things for a couple hundred bucks below market value, you’ll be gold.

    If you’re in central Florida, I know quite a few people who would be interested.

  14. 3 weeks ago
    Anonymous

    to have 300k in stuff you need a space for it to live in. Figure out your true overhead cost to just have the stuff. Your main goal is to cover your overhead, pay yourself a wage and any other wagies you need to make that goal a reality. gaining space and equipment is the hardest part in starting up a business. okay really the hardest part is finding contracts to sell to people. assuming your not personally drowning in debt its pretty easy to make money in manufacturing. I would not sell it. you will only get 10cents on the dollar if your lucky.

  15. 3 weeks ago
    Anonymous

    >$300,000 worth of machinery
    More like $15k, woodworking stuff is cheap.

  16. 3 weeks ago
    Anonymous

    If it’s all paid off and you liquidate it your are kind of a bum semi-SRS.

  17. 2 weeks ago
    Anonymous

    Restarting a business that's been idle for a while after turnover and ownership is difficult. You might have old customers that might come to you but you have no idea to do the projects.

    I've been woodworker 30 years but I don't take on custom projects for people that come to me. I usually do one or two off projects and then advertising on Facebook or to people I've already sold to before.

    Case in point is this yellow cedar deacons bench that I made two of but it turns out that the space is where I want it in my own house is entirely wrong for it so either have to sell it or just keep it disassembled until I move later in the year and see if it works in the place I'm moving to

  18. 2 weeks ago
    Anonymous

    One of the big problems with being a custom furniture maker in North America is wood supply at least on the west coast. Good Hardwoods that are locally grown are not particularly easy to get, but in the East that's not as much of an issue.

    Too many wood sellers are trying to see Live Edge slab bullshit and try to charge you four times what the stuff is worth per board foot. Don't even bother with those people there's lots of companies that have been in business decades or several Generations even that sell wood at a reasonable price go to them and give them your business. Don't support bullshit sellers who just try to make a quick Buck because they saw trendy YouTube video a few years ago

    I'd have to see that the hardest thing of all if you're going to do this is coming up with a Woodworking and Design language and style that is entirely your own. There are not many custom furniture makers that are instantly recognizable by their work. Nakashima and molesworth come to mind. My friend does Furniture but virtually all of it is just for his own house. Lots of people admire it and want him to build something for it but he's not really interested in that currently. Has a bonus though he has his own sawmill, and he works at a wood sorting a lot so he has access to good Lumber. Perhaps now that he's retiring from there he'll think about that a little bit more and try doing something. The problem is a source of good logs is the hard thing in this climate.

    One source of clients that I never expected to get was people who saw a bunch of my limited runs of a certain thing. Years ago I built a series of spice racks meant to be hung on a wall or stood up on a counter. I used a bunch of lumber that some guy had collected years ago from working at a motorcycle dealership that used it to create the stuff up and then just the woods sat around but it was extremely nice wood from the far east. One guy got me to build a legal bookcase for him in his apartment

  19. 2 weeks ago
    Anonymous

    OP where are you located? I know a mill operator in Maine that makes serious money doing custom work. I might also have people interested in tools and machinery if close

  20. 2 weeks ago
    peterjquill

    >raytheon
    anon don't become an experiment

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