How to start a carpentry business

If you’re skilled with your hands and have a head for numbers, starting a carpentry business could be a good way to become your own boss.

Now could be the perfect time, too, with the UK construction sector expected to grow by 10% in 2026 (PDF 8.4MB) according to a 2024 report from Glenigan.

According to a recent report, this growth is driven by improving consumer confidence, rising household incomes, and increased government spending on infrastructure.

This growth is good news for carpentry start-ups, as carpenters play a critical role in building and renovating homes.

Why should I start a carpentry business?

There is strong demand for trade skills, including carpentry.

The UK Trade Skills Index 2024 shows that in the next 10 years, we’ll need an estimated 1.3 million new skilled workers and 350,000 apprentices to meet housing and industry demands.

A carpentry business gives you flexibility in the particular services you could offer customers.

You can offer different services or focus on one special area to match what customers want and what’s in demand.

When you own your carpentry business, you can pick projects you enjoy, work when you want, and decide how much to charge.

This freedom could help you balance work and personal life.

Whether creating custom furniture or intricate joinery, you could take pride in making something useful and long-lasting.

Different kinds of carpentry businesses

Carpentry offers numerous business paths – from residential contracting to speciality woodworking – that allow professionals to match their skills with specific market needs.

Here are some business paths you could try:

• residential carpentry – focuses on home improvements, renovations, and custom woodwork. This includes building cabinets, installing doors and windows, and making custom furniture
• commercial carpentry – involves larger-scale projects for businesses and commercial properties. Services might include building office interiors, shop fixtures, or restaurant fittings, which often require working with architects and interior designers
• joinery – involves making detailed wooden items, such as staircases, window frames, and decorative mouldings. This work requires precision and a strong eye for detail
• restoration and repair – this service focuses on restoring and repairing antique or damaged woodwork. This could be a rewarding niche for those who appreciate the history and craftsmanship of older pieces and want to bring them back to life
• 'green'/sustainable carpentry – this market niche specialises in eco-friendly carpentry solutions using responsibly sourced or reclaimed wood, non-toxic finishes, and sustainable practices to cater to environmentally conscious clients.

Retraining as a carpenter

Carpentry isn’t just a path for young people starting their working life; it could also be a good option to build on skills you already have or when switching careers later in life.

If you are already employed, carpentry may be an excellent side business, enabling you to earn extra income while maintaining a full-time job.

Carpentry work is flexible, so you can take on projects at a speed that works for you.

Depending on the type of carpentry business you want to start, you may need specific skills and qualifications.

Skills and qualifications to start a carpentry business

To run a successful carpentry business, you may need a combination of technical skills, experience and qualifications.

Consider achieving a Level 2 or Level 3 Diploma in Carpentry and Joinery from a recognised institution such as City & Guilds.

These certifications could validate your skills and enhance your credibility with potential clients.

Getting hands-on experience during your training could help you build the skills and confidence to handle different projects.

If you plan to do carpentry work on construction sites, you must have a CSCS (Construction Skills Certification Scheme) card by law.

You need to apply for the right CSCS card – learn more about what is involved in this process.

In terms of technical skills, being good with numbers and proficient with tools and machinery could be essential.

Knowing how to measure, cut and shape wood accurately is key, as is the ability to read and interpret blueprints and technical drawings.

You’ll also need to know health and safety regulations to protect yourself and any team members.

People skills matter, too – communication, problem-solving, customer service, and time management are important for understanding what clients want and delivering quality work on schedule.

What equipment do I need?

Having the right equipment could help improve the quality of your work.

You may need some or all of the following:

• a variety of saws
• hammers and screwdrivers
• measuring tools
• electrical tools, such as drills and sanders
• PPE (such as gloves, eye protection and masks)
• sharpening tools
• a mode of private transport (like a van, for example)
• workbench
• toolbox/tool belt.

How to set up a carpentry business

Choose a business structure

Picking the right business structure for your carpentry business could be key to successful operations.

Your business structure affects how your business runs and how much tax you pay.

Popular options for trades businesses, such as carpentry, include sole trader, partnership, or limited company.

You could work with a business advisor to find the right structure for you.

Read our guide to start-up business structures.

Conduct market research

Market research could be vital for running a successful carpentry business.

Research typically involves investigating your local area, identifying target customers and your competitors, so you can make smarter decisions, such as setting competitive pricing, or finding a niche that your competitors don’t serve.

Market research needs to be done regularly to keep your business competitive and growing.

Learn more with our full guide on how to conduct market research.

Write a business plan

A business plan is a vital document for any business seeking success.

It’s a working document that outlines your key objectives, business goals, business structure, competitor analysis, financial projections, services, target customers, and sales plans.

Without a business plan, keeping your business on track to reach your goals or secure funding could be difficult.

Download our free business plan template.

Register your carpentry business

All UK businesses must register with HMRC for tax purposes.

How you register depends on the business structure you choose.

If you work as a sole trader, you need to register for self-assessment.

However, if you operate as a limited company, you need to register for corporation tax and with Companies House.

Get insurance

Getting business insurance could be sensible, as you could be working with potentially dangerous equipment or on a building site.

Public liability insurance protects you from injury or property damage claims caused by your work, while employers’ liability insurance is a legal requirement if you plan to hire staff.

You may also want to get tool and equipment insurance to safeguard against theft or damage.

Learn more about business insurance for beginners.

Set up a business bank account

Consider getting a business bank account to keep your personal and business finances separate and organise your bookkeeping efficiently.

Read our full guide to business banking.

Secure funding

Without the right funding, getting your carpentry business off the ground could be difficult.

You have several funding options, such as bank loans, government grants, crowdfunding, and loans from friends and family.

You might consider a Start Up Loan – a government-backed personal loan scheme that offers loans of up to £25,000 at a fixed 6% interest rate and a year of free mentoring.

With the right funding, you could secure work premises, buy equipment, and market your small business.

Market your business

Smart marketing strategies could help you attract the right customers and grow your business.

Your marketing plans could involve putting up posters in local community hubs, sponsoring local events, having a business website, or using social media.

Discover more efficient strategies with our essential guide to marketing.