Should I be in business or NOT?

I have just learned more about starting a business. Even if your business is home-based, and you don't generate much income from your sole-proprietorship, in the eyes of insurance companies, you are a business.

I learned a few things when I called my insurance agent to get the new shop insured.

• If you are a business, and use your personal tools for that business, your tools are now only insured up to the policy limit (mine was $1000) on your home owners policy.
• You must purchase a business insurance policy.
• Business insurance policies require you to purchase liability insurance, which in my case is $500 per year, the greatest portion of the premium. Even if you have NO walk-in customers and do 100% of your business from the internet. It is not based on how much revenue you produce, how much time you spend working for your part-time home-based business (because you have a full-time job someplace else to pay bills), nothing at all that pertains to your specific business situation. One size fits all, even if you only make a few hundred bucks a year, your monthly premium for a new shop and existing tools (that are now business tools), is almost $90 per month.
• You also can't have a wood-burner in your garage (shop). That is not permitted. It's a shame, because for a woodworking shop, it would be a very convenient way to heat the shop in the winter time, and also get rid of waste wood and scraps.
• My $19,000 garage has to be insured for $26,000 because of labor?
• I have been working with wood since I was 18 years old in 1979. Over the years I have acquired many tools. Now I have to specify which tools are business or personal tools.
• There is something about dust collectors. I have one, but most likely it isn't up to par with what is required. I will investigate this further, and will read the new policy thoroughly. I am suspecting that any little detail that I don't do correctly will make this new expensive policy null and void. What a bunch of bullshit.
  
• The distance you live from the nearest fire department is also taken into consideration. I do rustic woodworking and live in the country. I'm screwed.
  
• If you do any finishing, such as with varnish, you're really going to pay up the butt. Any type of flammable liquids and stuff like that. Good thing Rustic Woodworking doesn't have to do that.
• If I sell one friggin thing, I'm a business, and my homeowners policy won't cover more than $1000 for all my tools.
  
• If you build a new shop, that is a separate policy from your homeowners.
• Your tools and supplies also require a separate policy.
• If you use an ATV on premise to pull logs, that requires a separate policy even if it is parked in your new business shop.
  
• A visit from the insurance is required, or I have the option of taking pictures.

Extremely discouraging.

But it's ok to use particle boards on the walls........ooooh baby.

I would appreciate anyone's comments and/or suggestions on this insurance stuff, and basic business tips so that I can really get going with Rustic Woodworking.

New Shop Update.....Class 5?

CLASS 5?

Well, the electrician finished up yesterday. Now I just have a few final touches to do like pound in the grounding rod, get switch plate covers, and clean up. Then I can start building a workbench and some shelves and cabinets. I am reluctant to move in my machinery because of the MUCK problem.

It cost $230 for this mess. I am furious.

I thought I would be neighborly and buy the dirt from the guy down the street, Benji Dearborn. When he said he hasn't had any work all summer I should have thought more about that statement.

Not only is it NOT class 5, he has a created a bigger problem for me, as some of the binder is setting up and it's nearly impossible to get a shovel into the side of the garage that I need to slope down so that the pool of water can drain down.

I don't have big toys or machinery to do this. Just my shovel, rake and my own muscle power. Benji came out, per my request, to view the situation. He told me that he did exactly what I said I wanted. He called back later to say that he could get an auger and drill a hole for the water, which told me all I needed to know.

There is somewhat of an urgency here, because the ground will be freezing solid soon, and it will be too late to fix it this year. Then I will REALLY have a mess in the spring. I realize I have to install some gutters on the front of the garage to direct some of the water away from the front of the garage, but there's only so much time in the day.

I really need to get my saws and tools into the new garage and start filling orders. I am really behind. I cannot afford to spend another weekend moving dirt. It kills me that I had to pay for this mess.

What do you guys think?

Thanks,

Sandy

Electricity

I rented a trencher, and cut about a 300' trench to bury the electric cable. It has been raining and snowing for what seems like weeks, and 20 degrees below normal temperatures. Snow and ice in October? Even for Minnesota, that's really early.

Anyway, I didn't get the correct breaker for the house, so the electrician has to come back and finish hooking it up. I can't wait to get juice out there. Then I will have to build a work bench or two, figure out where I want the saws and other machines, and organize all my tools, sanding belts, saw blades, wood stock, etc......and lots more of those "etc....."

This year I have plenty of stock ready to be cut up to whatever my customers want. I have a large variety of wood species, lengths, and diameters. Some of the wood I have is very dry, while some is in the process of drying. I will not sell any wood products without fully disclosing the state of the wood, or any other information the customer needs to know. I will not sell inferior products, or ship green wood out to people knowing full well that it will crack or that the bark will fall off. I would rather lose a sale than lose my good reputation.

I will soon be adding a new product that I don't believe is available anywhere else. I can't wait to put it up on the website so that you will know.

It is exciting here at Rustic Woodworking. Until my business gets going, I want to be sure that people know I also have a full-time "real" job that I have to do to pay the bills. I have been driving an 18-wheeler for over 20 years. Most of those years were long-haul. Now I have a fantastic local trucking job, but I work odd hours (nights) , odd days. I try my best to fit it into Rustic Woodworking.

Remember, anyone who buys some of my wood products and sends me back a digital photo that I can post to my website to give other people ideas, I will reimburse you $5.00. Just yesterday I made the new "Customer Photo" page. I am looking forward to having lots of photos to post.

Also, I have many photos that I plan on incorporating into ebooks for you to download. That's more of a winter project.

Thanks for reading!

Good luck on your projects.

New Shop

The builders finished the new shop last Saturday. We will be installing the electric this weekend. Just wanted to add a picture of what we have so far. Then, when the ground dries up a little I will have some gravel hauled in. I'll keep ya posted!

Concrete Slab

The slab has been poured. I guess it's going to be another week before the builders come out. It doesn't look very big in the picture, but it's a 20' x 40' slab.

I have never had anything built before, so I don't understand how everything works. I am impressed so far by the way these guys are doing what I want.

Meanwhile, I found a home-made wood furnace on Craigs List that I am going to put in to burn up all the little wood scraps, and to heat it in the winter.......which isn't too far away. I am actually getting a little nervous that I'm not going to get everything done before the first snow fall.

I appreciate everyone's patience with me. I am trying to fill as many orders as I can between regular work and this shop project.

I did get a lot of wood out of this little section of land. Big pine logs that will be sawn up into lumber, and lots of other types of wood that can be used for many different projects.

I will post pictures of the new shop progress when time allows.

Thanks for stopping by!

The Excavators Will Be Here Soon

Well, I finished logging my land and the excavators should be here today or tomorrow, September 10, 2009. After that it will only be about a week before the building is constructed. Then a little more time to get the electricity hooked up and installed. Then there will be painting the exterior, sealing the cement slab, and moving all the machines to the new shop. Check back for updates and pictures.

Clearing Land is Hard Work!

Building a new shop. Clearing land. Simple, right?

I suppose most people clear land and just get rid of the trees and branches, or the contractor just hauls all that stuff away, or throws it through a mulcher.

NOT ME!

Every tree and branch, every curve, knot, and all the cool characters of wood, is something that is truly unique.

I see things to make, future projects, slices, wood parts. This is gold!

It is taking me longer than anticipated, but you will love the results.

Rain delayed me a week, one big pine tree dropped over a power line, I had a drunk driver broadside my semi-truck, but other than that, life's good.

I hope that people realize that I love working with wood, and I have high hopes of really getting Rustic Woodworking off and running. That's why I am building a new shop.