A woodworking business designs, manufactures, finishes, repairs, and installs products made primarily from wood and engineered wood materials.

Depending on the company’s specialization, products may include:

• Custom furniture
• Kitchen cabinetry
• Bathroom vanities
• Built-in shelving
• Bookcases
• Entertainment centers
• Dining tables
• Desks
• Commercial counters
• Reception desks
• Retail displays
• Architectural millwork
• Wooden wall panels
• Custom doors
• Decorative wooden products.

A modern woodworking company does not have to depend entirely on hand tools. Commercial shops increasingly use:

• CNC routers
• Sliding table saws
• Planers
• Jointers
• Wide-belt sanders
• Edge banders
• Professional spray-finishing equipment
• Computer-aided design software.

These technologies allow skilled woodworkers to produce custom pieces faster and with greater repeatability while still maintaining the craftsmanship customers expect.

Nathaniel Jacobs® Inc. will combine traditional woodworking skills with modern manufacturing technology.

The company will not attempt to compete with inexpensive mass-produced furniture. Instead, it will focus on customers who need:

• Custom dimensions
• Higher-quality materials
• Unique designs
• Built-in solutions
• Commercial fixtures
• Locally manufactured products.

Entrepreneurs who are still evaluating the industry may also find this guide on how to start a woodworking business useful.

Steps on How to Write a Woodworking Business Plan

1. Executive Summary

Nathaniel Jacobs® Inc. is a proposed custom woodworking, cabinetry, furniture, and architectural millwork company based in Reno, Nevada.

The company will operate from an approximately 6,000-square-foot light-industrial workshop and showroom.

The facility will contain:

• Raw lumber storage
• Sheet-goods storage
• Cutting and machining area
• CNC production area
• Assembly area
• Sanding area
• Dust-collection system
• Professional finishing/spray area
• Finished-goods staging
• Small showroom
• Design office
• Administrative workspace.

Nathaniel Jacobs® Inc. will manufacture:

• Custom residential furniture
• Kitchen and bathroom cabinetry
• Custom built-ins
• Closet and storage systems
• Commercial millwork
• Reception counters
• Retail fixtures
• Office furniture
• Architectural woodwork.

Additional revenue will come from:

• CNC machining
• Wood refinishing
• Design services
• Installation
• Small production runs for other businesses.

Our target customers will include:

• Homeowners
• Interior designers
• General contractors
• Home builders
• Architects
• Restaurants
• Hotels
• Retail businesses
• Professional offices
• Property developers.

Nathaniel Jacobs® Inc. will compete primarily on:

• Craftsmanship
• Design flexibility
• Accurate estimates
• Reliable project schedules
• Professional finishing
• Strong installation
• Customer communication.

The company will require approximately $810,000 in startup capital. Our projected financial performance is:

The long-term objective is to establish Nathaniel Jacobs® Inc. as one of Northern Nevada’s respected custom woodworking and architectural millwork companies and eventually serve commercial and residential clients throughout Nevada, Northern California, and surrounding western markets.

2. Company Profile

a. Our Products and Services

Nathaniel Jacobs® Inc. will offer the following:

Custom Residential Furniture

The company will manufacture furniture including:

• Dining tables
• Coffee tables
• Console tables
• Desks
• Bookcases
• Benches
• Bed frames
• Nightstands
• Storage cabinets.

Customers will be able to select:

• Dimensions
• Wood species
• Finish
• Hardware
• Selected design features.

Common materials may include:

• White oak
• Walnut
• Maple
• Cherry
• Ash
• Selected reclaimed wood
• High-quality hardwood plywood.

Custom Kitchen Cabinetry

Nathaniel Jacobs® Inc. will manufacture:

• Base cabinets
• Wall cabinets
• Tall pantry cabinets
• Kitchen islands
• Decorative panels
• Drawer systems.

Customers may select:

• Painted finishes
• Clear finishes
• Stained wood
• Modern slab doors
• Shaker-style doors
• Custom configurations.

The company will focus on semi-custom and fully custom work rather than competing directly with mass-produced stock cabinets.

Bathroom Vanities

Custom vanities may be manufactured for:

• Homeowners
• Interior designers
• Builders
• Remodeling contractors.

Options may include:

• Floating vanities
• Freestanding vanities
• Double-sink units
• Linen towers.

Custom Built-Ins

Built-ins may include:

• Entertainment centers
• Bookshelves
• Home-office storage
• Window benches
• Mudroom storage
• Fireplace cabinetry.

Built-ins are attractive because customers are purchasing a product designed specifically for their home rather than comparing it directly with mass-produced furniture.

Closet and Storage Systems

The company may produce:

• Walk-in closet systems
• Reach-in closet systems
• Garage cabinetry
• Pantry storage
• Custom shelving.

Commercial Architectural Millwork

Commercial services may include:

• Reception desks
• Wall panels
• Service counters
• Custom shelving
• Restaurant millwork
• Hotel cabinetry
• Office built-ins.

Commercial work can generate larger contracts than individual furniture pieces. However, it also requires:

• Detailed drawings
• Accurate scheduling
• Project management
• Coordination with contractors.

Retail Fixtures

Nathaniel Jacobs® Inc. will manufacture:

• Display shelving
• Cash-wrap counters
• Product displays
• Storage fixtures
• Custom merchandising units.

Office Furniture

Products may include:

• Executive desks
• Conference tables
• Built-in storage
• Reception desks
• Bookcases.

CNC Woodworking Services

The company’s CNC router will provide:

• Sheet cutting
• Cabinet-part machining
• Decorative routing
• Panel machining
• Templates
• Small production runs.

Other woodworkers, cabinet companies, sign companies, and contractors may use this service.

CNC work provides revenue even when Nathaniel Jacobs® Inc. is not producing the final finished item.

Furniture Refinishing and Restoration

Selected pieces may be:

• Stripped
• Repaired
• Sanded
• Refinished.

The company will concentrate on pieces with sufficient value to justify professional restoration. It will not compete heavily for low-priced furniture repair.

Installation Services

Nathaniel Jacobs® Inc. will provide installation for products such as:

• Cabinetry
• Built-ins
• Commercial millwork
• Wall panels.

Where the scope constitutes regulated contracting work, the company will obtain or use the appropriate Nevada contractor licensing rather than assuming manufacturing authorization automatically permits construction contracting.

Entrepreneurs who want to focus principally on installation and site work can also review this guide on how to start a carpentry business.

b. Nature of the Business

Nathaniel Jacobs® Inc. will serve both:

• Business-to-consumer customers
• Business-to-business customers.

Residential clients will include:

• Homeowners
• High-end residential customers.

Business customers will include:

• Contractors
• Designers
• Architects
• Restaurants
• Hotels
• Retailers
• Developers.

c. The Industry

Nathaniel Jacobs® Inc. will operate within the:

• Woodworking industry
• Custom furniture industry
• Cabinet manufacturing industry
• Architectural millwork industry.

A company wanting to concentrate primarily on large-scale furniture production can also review this Furniture Manufacturing Business Plan.

d. Mission Statement

“At Nathaniel Jacobs® Inc., our mission is to design and manufacture durable, beautifully crafted wood products by combining skilled craftsmanship, modern woodworking technology, dependable project management, high-quality materials, and professional customer service.”

e. Vision Statement

“Nathaniel Jacobs® Inc. envisions becoming one of the most trusted custom woodworking and architectural millwork companies in the western United States, known for exceptional craftsmanship, modern production capability, reliable commercial execution, and woodwork designed to last for generations.”

f. Our Tagline

“Nathaniel Jacobs® – Built From Wood. Made to Last.”

g. Legal Structure of the Business

Nathaniel Jacobs® Inc. will operate as a Nevada corporation. The business will maintain appropriate:

• Nevada corporate registration
• Federal Employer Identification Number
• Nevada State Business License
• City of Reno Business License
• Nevada sales/use tax registration
• Workers’ compensation coverage
• General liability insurance
• Product liability coverage where appropriate
• Commercial property insurance
• Commercial auto insurance.

As a Nevada corporation, Nathaniel Jacobs® Inc. will also budget for the state’s annual corporate business-license renewal and other required corporate filings.

h. Organizational Structure

The initial organization will include:

• Nathaniel Jacobs – Founder/Chief Executive Officer
• Operations/Production Manager
• Lead Cabinetmaker
• CNC Programmer/Operator
• Custom Woodworkers/Cabinetmakers
• Finishing Specialist
• Installation Lead
• Installers/Field Carpenters
• Estimator/Designer
• Sales and Project Coordinator
• Shop Assistant/Material Handler
• Bookkeeper/Administrative Support.

i. Ownership/Shareholder Structure and Board Members

A proposed ownership structure is:

• Nathaniel Jacobs – Founder and Chief Executive Officer – 65 Percent
• Rebecca Jacobs – Director/Investor – 20 Percent
• Michael Carter – Investor/Construction Advisor – 10 Percent
• David Reynolds – Investor/Business Advisor – 5 Percent.

3. SWOT Analysis

a. Strengths

• Custom Work: Customers cannot directly compare unique products solely by price.
• Residential and Commercial Revenue: The company will not rely on one customer category.
• CNC Capability: Digital production increases speed, accuracy, and repeatability.
• Professional Finishing: High-quality finishing significantly affects the perceived quality of woodworking.
• Installation Capability: Customers can purchase a complete project rather than finding a separate installer.
• Multiple Revenue Streams: Furniture, cabinetry, commercial millwork, CNC services, refinishing, and installation diversify revenue.
• Local Manufacturing: Custom products can often be delivered faster and modified more easily than imported products.

b. Weaknesses

• Skilled woodworkers can be difficult to recruit.
• Professional equipment requires significant capital.
• Custom projects can be difficult to estimate.
• Lumber prices fluctuate.
• Errors can require expensive rework.
• Woodworking creates combustible dust.
• Finishing introduces additional fire and chemical risks.
• Large custom projects can create cash-flow pressure.

c. Opportunities

• Luxury home remodeling
• Custom kitchens
• Built-in home offices
• Commercial interiors
• Restaurant build-outs
• Hotel renovations
• Retail fixtures
• CNC subcontracting
• Designer partnerships
• Small-batch furniture collections.

i. How Big is the Industry?

Woodworking overlaps with several large markets including:

• Furniture
• Cabinetry
• Construction
• Home remodeling
• Commercial interiors
• Retail fixtures.

This gives Nathaniel Jacobs® Inc. opportunities beyond individual furniture buyers. Reno and the wider Northern Nevada region also provide demand from:

• Residential development
• Home renovation
• Hospitality
• Restaurants
• Retail
• Professional offices.

ii. Is the Industry Growing or Declining?

Traditional low-cost furniture manufacturing faces significant import competition.

Custom woodworking occupies a different market. Customers continue paying for:

• Custom dimensions
• Unique designs
• Built-in cabinetry
• Local installation
• Architectural coordination.

The strongest future opportunity will therefore be in specialized custom work rather than commodity furniture.

iii. Future Trends in the Industry

Important trends include:

• CNC Manufacturing: More shops will combine digital production with skilled craftsmanship.
• Design-to-Manufacturing Software: Drawings will increasingly flow directly into production systems.
• Customization: Consumers increasingly expect products fitted to particular rooms and lifestyles.
• Home Offices: Built-in workspaces remain an attractive custom woodworking category.
• Mixed Materials: Wood will increasingly be combined with metal, glass, stone, and other materials.
• Commercial Millwork: Restaurants, hotels, offices, and retailers continue requiring custom interiors.
• Material Efficiency: CNC nesting and production software can reduce waste.
• Dust Control: Professional shops will face growing pressure to maintain safe, clean production environments.

iv. Existing Niches

Woodworking niches include:

• Custom furniture
• Kitchen cabinetry
• Closet systems
• Architectural millwork
• Restaurant interiors
• Retail fixtures
• Wood signs
• Furniture restoration
• CNC services
• Luxury woodwork.

Nathaniel Jacobs® Inc. will focus principally on:

• Custom cabinetry
• Furniture
• Built-ins
• Commercial millwork.

v. Can You Sell a Franchise in the Future?

A woodworking company can theoretically be franchised. However, Nathaniel Jacobs® Inc. will initially expand through:

• Additional production capacity
• Regional installation crews
• Commercial contracts
• Acquisition of smaller woodworking shops.

Franchising would only be considered if the business develops a standardized product and operating model.

d. Threats

• Imported furniture
• Economic downturns
• Construction slowdowns
• Lumber inflation
• Skilled-labor shortages
• Fire
• Combustible-dust incidents
• Equipment failure
• Project delays
• Customer payment disputes
• Poor estimating.

i. Who are the Major Competitors?

The company will compete with:

• Independent cabinet shops
• Custom furniture makers
• Architectural millwork firms
• Finish carpentry companies
• Large cabinet manufacturers
• Imported furniture manufacturers.

Nathaniel Jacobs® Inc. will compete through:

• Design
• Quality
• Project management
• Finishing
• Customization
• Delivery reliability.

ii. Is There a Franchise for Woodworking Businesses?

Some related home-improvement and cabinetry businesses operate under franchise models.

However, independent ownership remains common for custom woodworking because craftsmanship and project specifications vary substantially.

iii. Policies, Regulations and Zoning

Nathaniel Jacobs® Inc. will maintain all required business, tax, workplace, fire, and construction-related approvals.

Nevada State Business License

As a Nevada corporation, Nathaniel Jacobs® Inc. will obtain and annually maintain its Nevada State Business License.

The financial plan will budget for the current corporate renewal fee along with the company’s other annual corporate filing obligations.

City of Reno Business License

Because the woodworking facility will operate within Reno, the company will obtain the applicable City of Reno Business License before beginning operations.

The final industrial property will also be reviewed for appropriate:

• Land use
• Occupancy
• Manufacturing activity
• Fire requirements.

Nevada Sales Tax

Nathaniel Jacobs® Inc. will register appropriately with the Nevada Department of Taxation.

Furniture, cabinetry, and other tangible products sold at retail generally create sales-tax obligations. Invoices will distinguish separately stated:

• Products
• Installation
• Delivery
• Other services

where appropriate so they can be accounted for correctly.

Contractor Licensing

Manufacturing a cabinet in the shop and performing construction work at a property are not necessarily the same activity for licensing purposes.

For projects involving regulated installation or construction work, Nathaniel Jacobs® Inc. will:

• Maintain the applicable contractor license

or:

• Use appropriately licensed contracting partners.

The company will not bid regulated construction work under the assumption that a general business license replaces contractor licensing.

Combustible Wood Dust

Woodworking creates fine combustible dust. Nathaniel Jacobs® Inc. will install a properly designed dust-collection system serving equipment such as:

• Table saws
• Planers
• Sanders
• CNC routers
• Other dust-producing machines.

Employees will not routinely use compressed air to create clouds of accumulated fine dust. Housekeeping will be scheduled and documented.

Fire Permits

The Reno operation will determine and maintain applicable fire operational permits associated with activities such as:

• Woodworking plant operations
• Combustible dust
• Spray finishing
• Flammable and combustible liquids.

Spray Finishing

Professional finishes may contain flammable or hazardous materials. Finishing will occur in appropriately designed areas with:

• Ventilation
• Fire protection
• Approved electrical equipment where required
• Safe material storage
• Employee protective equipment.

Workplace Safety

Employees will receive training on:

• Machine guarding
• Lockout/tagout
• Eye protection
• Hearing protection
• Dust exposure
• Respiratory protection where applicable
• Material handling
• Finishing chemicals.

4. Marketing Plan

a. Target Audience

i. Residential Customers

Residential customers will generally include homeowners who:

• Own established homes
• Are remodeling
• Want premium cabinetry
• Need built-in storage
• Prefer custom furniture.

ii. Interior Designers

Interior designers can become a valuable repeat referral source. They may regularly require:

• Custom furniture
• Cabinetry
• Built-ins
• Millwork.

iii. General Contractors and Builders

Contractors may outsource:

• Cabinetry
• Millwork
• Custom built-ins
• Commercial fixtures.

iv. Architects

Architects may specify custom woodwork on:

• Residential projects
• Restaurants
• Offices
• Hospitality projects.

v. Commercial Customers

Commercial targets include:

• Restaurants
• Hotels
• Retailers
• Medical offices
• Law firms
• Technology companies
• Professional offices.

vi. Geographical Market

Initial service areas will include:

• Reno
• Sparks
• Washoe County
• Carson City
• Lake Tahoe-area projects where commercially practical.

Longer-term expansion may include Northern California and additional Nevada markets.

b. Advertising and Promotion Strategies

Nathaniel Jacobs® Inc. will use:

• Interior designer partnerships
• Contractor relationships
• Architect outreach
• Completed-project photography
• Showroom appointments
• Customer referrals
• Home and design events
• Commercial sales outreach.

i. Traditional Marketing Strategies

• Architect and designer sample presentations
• Contractor meetings
• Home shows
• Builder relationships
• Commercial networking
• Referral incentives where appropriate.

ii. Digital Marketing Strategies

The company will use:

• Local search optimization
• Project portfolio pages
• Paid search
• Estimate request forms
• Email marketing
• Customer review management.

iii. Social Media Marketing Plan

Woodworking provides excellent visual content. Videos may feature:

• CNC machining
• Furniture assembly
• Wood finishing
• Before-and-after installations
• Raw lumber becoming finished furniture
• Shop craftsmanship.

c. Pricing Strategy

Nathaniel Jacobs® Inc. will not price custom products solely by adding a small markup to lumber. Pricing must recover:

• Materials
• Shop labor
• Design time
• Finishing
• Equipment cost
• Installation
• Overhead
• Profit.

Every significant custom project will receive a written estimate or proposal defining:

• Scope
• Materials
• Finish
• Installation
• Payment schedule
• Expected lead time.

5. Sales and Distribution Plan

a. Sales Channels

Customers will come through:

• Direct inquiries
• Contractors
• Interior designers
• Architects
• Commercial bidding
• Customer referrals
• Website leads
• Showroom appointments.

b. Order and Production Strategy

Most work will be produced to order. Nathaniel Jacobs® Inc. will avoid accumulating large amounts of finished furniture without confirmed customers.

The company will maintain raw-material inventory for commonly used:

• Plywood
• Hardwoods
• Hardware
• Finishing supplies.

Special materials will generally be ordered after the customer deposit is received.

c. Payment Options

Customers may pay through:

• ACH
• Credit/debit card
• Check
• Bank transfer
• Approved commercial payment terms.

d. Deposit and Payment Policy

A typical custom project may require:

Large commercial contracts may use negotiated progress billing. Deposits help fund:

• Lumber
• Hardware
• Production labor
• Special-order materials.

e. Customer Support Strategy

Each major project will have an assigned project contact. Customers will receive updates concerning:

• Design approval
• Material selection
• Production schedule
• Finishing
• Installation.

Changes requested after approval will be handled through written change orders.

6. Operational Plan

The shop will initially operate:

• Monday – Friday: 7:00 AM – 5:00 PM.

Installation crews may work different hours according to customer and construction-site requirements.

a. What Happens During a Typical Day?

The production manager begins by reviewing:

• Active projects
• Production deadlines
• Installation dates
• Machine availability
• Material shortages.

Woodworkers then move projects through:

• Material selection
• Cutting
• Machining
• Joinery
• Assembly
• Sanding
• Finishing
• Final inspection.

Meanwhile:

• Designers prepare drawings.
• Estimators prepare quotes.
• Installers complete field projects.
• Sales staff follow up on proposals.

At the end of each production day:

• Machines are cleaned.
• Dust is removed.
• Finished components are protected.
• Materials are returned to storage.
• Production progress is updated.

b. Production Process

A typical custom project follows:

1. Customer inquiry.
2. Site visit or design consultation.
3. Measurements.
4. Initial design.
5. Estimate.
6. Contract and deposit.
7. Final drawings.
8. Customer approval.
9. Material purchasing.
10. CNC and shop machining.
11. Assembly.
12. Sanding.
13. Finishing.
14. Quality inspection.
15. Delivery.
16. Installation.
17. Final customer walkthrough.

c. Quality-Control Procedure

Projects will be checked for:

• Dimensions
• Square
• Joinery
• Door and drawer alignment
• Hardware operation
• Surface preparation
• Finish consistency
• Visible defects.

Production drawings will specify important dimensions rather than relying on verbal instructions.

d. Supply Chain

Suppliers will include:

• Hardwood lumber distributors
• Plywood distributors
• Cabinet-hardware suppliers
• Finishing suppliers
• Adhesive suppliers
• Tool suppliers
• Abrasive suppliers
• Equipment-maintenance companies.

Alternative suppliers will be maintained for critical materials such as:

• Cabinet plywood
• Drawer slides
• Hinges
• Finishes.

e. Sources of Income

Nathaniel Jacobs® Inc. will earn revenue from:

• Custom furniture
• Custom cabinetry
• Residential built-ins
• Commercial millwork
• Retail fixtures
• CNC machining
• Furniture refinishing
• Installation
• Design services.

7. Financial Plan

a. Amount Needed to Start Nathaniel Jacobs® Inc.

Nathaniel Jacobs® Inc. will require approximately: $810,000 to establish the proposed Reno operation.

A one-person home woodworking business could start for a fraction of this amount.

Those considering a smaller model can compare their assumptions with this guide on how much it costs to start a woodworking business. Our budget is substantially larger because this plan assumes:

• A commercial production facility
• CNC equipment
• Professional dust collection
• Spray finishing
• Multiple skilled employees
• Vehicles
• Working capital.

b. Startup Costs

c. Do You Need to Build a Facility?

No. Nathaniel Jacobs® Inc. will lease and improve an existing industrial property. The preferred building should provide:

• Industrial/manufacturing-compatible use
• Adequate electrical service
• Loading access
• High ceilings
• Room for dust collection
• Finishing capability
• Material storage
• Delivery vehicle parking.

The company will not sign a long-term lease until confirming that the proposed woodworking and finishing activities are permitted.

d. Ongoing Expenses

e. Average Salary of Staff

f. Funding Sources

8. Financial Projection

a. Sales and Profit Forecast

b. Profit Margin

Once stabilized, Nathaniel Jacobs® Inc. will target:

• 10 – 16 percent net profit margin.

Individual projects may carry substantially different margins. A custom dining table may produce excellent gross margin while an inaccurately estimated commercial installation can lose money despite generating high revenue.

For this reason, profitability will be analyzed by project rather than only at the company level.

c. Material Cost Target

Materials will generally be targeted around:

• 25 – 35 percent of project revenue

depending on the work. High-end walnut furniture may carry a higher material percentage than painted cabinetry.

d. Revenue Mix Target

e. Production and Operating Targets

f. Average Project Values

As the business becomes established, management will target a healthy mix of projects rather than accepting dozens of very small jobs that consume estimating and setup time.

g. Key Performance Indicators

Management will monitor:

• Total revenue
• Gross margin
• Net profit
• Revenue per productive employee
• Labor hours estimated versus actual
• Material cost versus estimate
• Shop utilization
• Machine downtime
• Project rework
• Proposal close rate
• Average project value
• Backlog in weeks
• On-time completion
• Customer referrals
• Accounts receivable.

9. Growth Plan

a. How Do You Intend to Grow and Expand?

Nathaniel Jacobs® Inc. will grow in stages.

Stage One – Establish the Reno Shop

The first objective will be developing:

• Accurate estimating
• Reliable production schedules
• High-quality finishing
• Strong customer reviews.

Stage Two – Build Designer and Contractor Relationships

Rather than relying only on individual homeowners, Nathaniel Jacobs® Inc. will develop repeat referral relationships with:

• Interior designers
• Architects
• General contractors
• Builders.

One productive designer or contractor may generate several projects each year.

Stage Three – Expand Commercial Millwork

The company will pursue:

• Restaurant interiors
• Office projects
• Hospitality renovations
• Retail fixtures.

Stage Four – Increase CNC Capacity

As production volume increases, the business may add:

• Second CNC machine
• Automated edge bander
• Larger sanding equipment
• Improved material handling.

Equipment will be added based on production bottlenecks rather than merely to make the shop look sophisticated.

Stage Five – Add Installation Crews

Dedicated installation teams can allow shop employees to continue production while completed projects are installed.

Stage Six – Develop a Signature Furniture Collection

Nathaniel Jacobs® Inc. may eventually produce a small collection of repeatable:

• Tables
• Desks
• Benches
• Storage furniture.

These products can generate revenue without requiring a completely new design for every customer.

Stage Seven – Regional Expansion

Once Reno operations are stable, sales may expand into:

• Carson City
• Lake Tahoe
• Las Vegas
• Northern California.

b. Where Do You Intend to Expand?

The first priority will remain Northern Nevada. Potential expansion markets include:

• Sparks
• Carson City
• Lake Tahoe-area communities
• Truckee
• Sacramento-area commercial projects
• Las Vegas.

The company will not open another production shop simply because customers exist in another city.

Where practical, products can be manufactured in Reno and transported for installation.

A second manufacturing location will only be considered when freight, installation distance, and capacity make it economically necessary.

10. Exit Plan

Nathaniel Jacobs® Inc. will be built as a scalable woodworking and millwork company capable of eventually being:

• Sold
• Transferred to management
• Transferred to family members
• Recapitalized
• Merged with another woodworking company
• Acquired by a commercial millwork or construction group.

Potential buyers may include:

• Cabinet manufacturers
• Architectural millwork companies
• General contractors
• Furniture manufacturers
• Regional construction groups
• Private investors.

A future buyer will evaluate:

• Revenue
• Profit
• Gross margins
• Customer concentration
• Commercial backlog
• Skilled workforce
• CNC and production equipment
• Facility lease
• Contractor licenses
• Safety record
• Designer/contractor relationships.

The company’s greatest value should eventually come from more than its machinery.

Machines can be purchased by almost anyone with enough capital. More valuable assets will include:

• Experienced employees
• Documented production systems
• Customer relationships
• Commercial contracts
• Design files
• Production knowledge
• Brand reputation.

Nathaniel Jacobs® Inc. will therefore document:

• Estimating procedures
• Design approval
• CNC programming standards
• Production methods
• Finishing schedules
• Installation procedures
• Safety procedures
• Quality-control standards.

Project profitability will also be recorded by job. This is important because a buyer should be able to determine:

• Which project categories make money
• Which customers are profitable
• Which products create excessive rework.

Management will also reduce dependence on Nathaniel Jacobs personally producing every important item.

Nathaniel’s craftsmanship may initially help establish the brand, but long-term enterprise value requires trained employees who can consistently execute the company’s quality standards.

A management buyout may eventually become an attractive option. Senior managers or experienced cabinetmakers could acquire the founder’s shares and continue operating the business.

A strategic millwork company may also acquire Nathaniel Jacobs® Inc. for its:

• Reno customer base
• Skilled workforce
• Equipment
• Commercial relationships
• Northern Nevada production capacity.

Ultimately, Nathaniel Jacobs® Inc. will be built as much more than a workshop where talented people make attractive wooden products.

The goal is to create a professionally managed woodworking company with disciplined estimating, modern CNC capability, excellent craftsmanship, safe production systems, strong commercial relationships, dependable installations, profitable projects, and operating procedures capable of supporting regional growth.