Advice on establishing my own violin restoration business

[Goran74]

Hello everyone!

I've been working for a few years with two experienced luthiers, specializing in restoring violins and bows, and I feel it's time to take the next step and legalize my own work in violin restoration. However, while I have hands-on experience, I don't have much knowledge about running a business, especially when it comes to taxes, insurance, and managing a small business.

I'm reaching out to ask for advice specifically on the business side of things. How can someone succeed in the violin restoration business beyond just delivering quality work and having the necessary skills and experience? I'm particularly interested in tips for handling the administrative aspects like taxes, insurance, and other formalities.

Additionally, I would appreciate some advice on what supplies and quantities are essential when starting out. I'm already well-stocked with most of the tools I need, but I'm thinking about materials (like pegs, tailpieces, bridges, soundpost/bass bar wood, fingerboards, and similar items).

Here are a few specific questions I have:

1. Financial Management: What tips do you have for managing finances effectively, including budgeting for supplies and tax obligations?

2. Supplies and Inventory: To get started, what essential supplies should I stock up on? I’m particularly interested in recommendations for the quantities of items like pegs, tailpieces, bridges, wood for soundposts and bass bars, fingerboards, etc. Any "budget-friendly" tips on acquiring supplies for a smooth start would be very helpful.

3. Marketing Strategies: What are some effective ways to market my services to potential clients?

Any insights or resources you could share would be immensely appreciated. Thank you so much for your help!

[arglebargle]

Where are you (or will be) located?

[Goran74]

In Europe. Regards.

[GeorgeH]

Respectfully, what you’re asking is way more than what can be delivered in a few comments on a blog post. I suggest that you go to a library or a bookstore where you’ll find many books on how to start and run a small business. There are many software programs for managing your books that you’ll have to learn or contract somebody to do it for you. As far as taxes go, you should engage a good accountant. As far as marketing goes, again, there are many books available for learning how to do marketing. A good place to start would be to look at the website of people already in business in your field to decide what you like and don’t like.

[Strad O Various Jr.]

1 hour ago, Goran74 said:

Hello everyone!

I've been working for a few years with two experienced luthiers, specializing in restoring violins and bows, and I feel it's time to take the next step and legalize my own work in violin restoration. However, while I have hands-on experience, I don't have much knowledge about running a business, especially when it comes to taxes, insurance, and managing a small business.

I'm reaching out to ask for advice specifically on the business side of things. How can someone succeed in the violin restoration business beyond just delivering quality work and having the necessary skills and experience? I'm particularly interested in tips for handling the administrative aspects like taxes, insurance, and other formalities.

Additionally, I would appreciate some advice on what supplies and quantities are essential when starting out. I'm already well-stocked with most of the tools I need, but I'm thinking about materials (like pegs, tailpieces, bridges, soundpost/bass bar wood, fingerboards, and similar items).

Here are a few specific questions I have:

1. Financial Management: What tips do you have for managing finances effectively, including budgeting for supplies and tax obligations?

2. Supplies and Inventory: To get started, what essential supplies should I stock up on? I’m particularly interested in recommendations for the quantities of items like pegs, tailpieces, bridges, wood for soundposts and bass bars, fingerboards, etc. Any "budget-friendly" tips on acquiring supplies for a smooth start would be very helpful.

3. Marketing Strategies: What are some effective ways to market my services to potential clients?

Any insights or resources you could share would be immensely appreciated. Thank you so much for your help!

bookeeping of a violin business is simple enough you don't need a computer program, My accountant recommended the Dome monthly bookeeping record, it gives you all the categories you are going to need with your accountant at the end of the year, if you use the record properly your accountant should be able to e file your taxes in about 20 minutes, which costs me about $125, you keep all your expenses on one side, put the number relevant to each expense, then add up all the expenses by category with the number codes, for instance accounting, telephone, utilities, supplies,advertising etc, this is done in the number coded columns at the right side of the page, I do 6 months at a time because my buisiness is sort of slow, but if you're busy you use one of the 12 monthly pages for each month

[Chris Anderson, PhD]

Goran, 

I'm wondering many of the same questions.  While I am still in the 'Hobbyist' stage  - and am already a well-paid Engineer, some of these same questions have been coming to me. 

1. First, formulate an LLC and separate your personal finances from the regular business.  Even a small "low-risk" business can be destroyed by an unhappy client with a lawyer on a leash.  Separate what you buy - I'm less sure of european tax codes, but many business-related materials and tools are tax deductible.  Depending upon where you are in Europe- are there any 'guild issues' that you have to be aware of?  We do not have this in the USA, but I understand its still present in Germany.  I second GeorgeH's recommendation to read up on starting a small business.  Repair businesses in a 'disposable' world are difficult to make successful - and most luthiers I've talked with say that the 'repair' business is what keeps the lights on, even if they would rather be 'making violins'.  I feel having a 'reputation' in this business is important to get those clients that are willing to spend the money on a good 'restoration'.  Set your 'labor rate' and have a list of common repairs with fixed costs - nobody likes 'sticker shock' after the job is done.  

2. Ebony is getting harder and harder to acquire legally.  (Yes, you can find it on ebay through Chinese vendors - but those trees don't grow in China.. and Taylor Guitars in the USA exports 75% of the 'legally available' in conjunction with the govt. of Camaroon - no other country will part with their ebony... where does the rest of it come from?).  I have recently disassembled a Piano and now have enough ebony for 'nuts' to last a lifetime - fingerboards, that's harder.  If Camaroon decides to close its borders - have a backup plan (Stained Ipe for fingerboards, or staining ugly ebony).  I will tell you that I have consumed so many bridges (many of which because I suck, and they go in the garbage).  I inherited 13 old instruments from my grandfather and not one of them had a 'usable' bridge.  Small sample size, but that's my #1 consumable so far.  Most other parts of moderate to low quality are available on Amazon or Alibaba (in bulk). Currently, I'm considering 'how many' cases to buy of Ali-baba as I don't want to be in the business of 'making cases' and most antique cases are largely unusable once you have completed the instrument.  Considering space vs cost in these is also something I have to consider.  I'll follow up when I've completed that purchase... Most small shops I have seen in Dallas, TX buy strings in 'bulk' - and then only re-sell high-end strings individually from the package (with a reasonable markup).  Every restore usually needs new strings.  My day-job is Electronics manufacturing and I'll say the hardest thing in that business is managing the supply chain.  Companies come and go, good vendors get bought by bad people, and that 'one time deal' can easily go south.  FoxConn, a Chinese corporation makes  half of all the 'things' that are made - and they are just 1 company in China.  If you buy parts from a Luthier supply - the costs are often high - but the quality will be great.  If your client is willing to pay for premium parts - have some on hand.  Know your customer's expectations on cost beforehand and get things in writing before starting work (Do they want a heavy ebony tailpiece, or will a plastic one meet expectations?  Is the client a collector or professional musician or a little-old-lady who wants to put the instrument in a display case?).  Luckily, restorations are usually consuming 'Spirit varnish' - which you can easily make once or twice a year at home or keep a small amount on hand.  

3. This one I cannot help with.  I'm an engineer, not a marketing person - and know even less about how that works in Europe.  

regards, -Chris

[jacobsaunders]

28 minutes ago, GeorgeH said:

Respectfully, what you’re asking is way more than what can be delivered in a few comments on a blog post. I suggest that you go to a library or a bookstore where you’ll find many books on how to start and run a small business. There are many software programs for managing your books that you’ll have to learn or contract somebody to do it for you. As far as taxes go, you should engage a good accountant. As far as marketing goes, again, there are many books available for learning how to do marketing. A good place to start would be to look at the website of people already in business in your field to decide what you like and don’t like.

You forgot to mention that you don't run a violin business yourself

[GeorgeH]

11 minutes ago, jacobsaunders said:

You forgot to mention that you don't run a violin business yourself

No, I did not forget; it is not relevant.

I started and ran a non-violin related business for over 20 years. Accounting and taxes don't care what business you're in: You have to know and follow the law. Inventory costs are inventory costs. Marketing needs to be tailored to you target customers, but the principles in that are also the same.

Books and good advisors are always a good place to start.

[jacobsaunders]

The truth is that it is futile to want to plan in detail. When I started, I did 5 medium to large viola repairs one after the other. I thought it would go on like that, and drove to Bubenreuth and bought myself viola fingerboards and stuff. I still had half of the fingerboards 20 years later.

Yes you need an accountant, and do what he tells you, and should be careful not to have any debts at the bank. You don’t need everything in stock, you can always order it.

[deans]

I have no idea what the situation is like over there, but here in the US many community colleges offer a course or series of courses on starting a small business, often for minimal cost or even free.

[DelViolino]

6 hours ago, GeorgeH said:

Respectfully, what you’re asking is way more than what can be delivered in a few comments on a blog post. I suggest that you go to a library or a bookstore where you’ll find many books on how to start and run a small business. There are many software programs for managing your books that you’ll have to learn or contract somebody to do it for you. As far as taxes go, you should engage a good accountant. As far as marketing goes, again, there are many books available for learning how to do marketing. A good place to start would be to look at the website of people already in business in your field to decide what you like and don’t like.

I want to tag onto George as well as Deans here. It's hard to know exactly what advice to give since starting a business has so many different moving pieces with differing amounts of hiring-it-done vs doing-it-yourself. Here in the states we have the Small Business Administration which often times works though either an economic development office in a municipality or a local college. If there is anything like that for the EU I would highly suggest it. They would be able to give you a good full overview of possible tracks to take and how to manage them.

[Riccardo964]

7 hours ago, Goran74 said:

In Europe. Regards.

I will go on a limb here and think that the market in, let's say, the UK, is highly different from the Netherlands, or Germany.

Also, business regulations, access to tonewood, players demanding services... and so on.

As any business, aren't you now being the competition of your 'former' bosses? Are they happy about this?

Well, good luck sir, I hope you have a plan B (or C: marrying to a rich family) before embarking on this journey.

Sorry for being pessimist, but you need to be a realist about this.

Best of luck on your endeavours.

Riccardo964

[Goran74]

Thank you all for your valuable insights and replies. I recognize that taxation systems and regulations vary from country to country, and I understand that consulting an accountant is the best way to navigate these complexities. Fortunately, the cost of accounting services is generally reasonable, making this an accessible solution for handling the financial aspects of starting a business.

When it comes to small business management, I have taken the initiative to educate myself through various online resources and educational videos to build a foundation of knowledge. However, I would greatly benefit from more specific advice, particularly regarding the quantities of materials and supplies I should keep on hand to ensure a smooth start.

I am reaching out because I have friends who are involved in violin restoration and instrument making, and they have told me about the need to stock and sell items such as strings, rosin, tailpieces, and other accessories. However, due to my limited budget and family obligations, I do not have the financial means to invest in storing strings and other retail accessories at this time.

Given these constraints, I am looking for advice on how to manage my initial inventory effectively. What are the critical materials I should prioritize, and in what quantities, to avoid overextending my budget while still being prepared for a range of repair and restoration tasks? Any suggestions or recommendations on this matter would be greatly appreciated.

Thank you again for your time and guidance.

[jacobsaunders]

2 hours ago, Goran74 said:

Thank you all for your valuable insights and replies. I recognize that taxation systems and regulations vary from country to country, and I understand that consulting an accountant is the best way to navigate these complexities. Fortunately, the cost of accounting services is generally reasonable, making this an accessible solution for handling the financial aspects of starting a business.

When it comes to small business management, I have taken the initiative to educate myself through various online resources and educational videos to build a foundation of knowledge. However, I would greatly benefit from more specific advice, particularly regarding the quantities of materials and supplies I should keep on hand to ensure a smooth start.

I am reaching out because I have friends who are involved in violin restoration and instrument making, and they have told me about the need to stock and sell items such as strings, rosin, tailpieces, and other accessories. However, due to my limited budget and family obligations, I do not have the financial means to invest in storing strings and other retail accessories at this time.

Given these constraints, I am looking for advice on how to manage my initial inventory effectively. What are the critical materials I should prioritize, and in what quantities, to avoid overextending my budget while still being prepared for a range of repair and restoration tasks? Any suggestions or recommendations on this matter would be greatly appreciated.

Thank you again for your time and guidance.

I don’t know where you are, but in Austria the Handelskammer (chamber of commerce) has courses at its “WIFI” (wirtschaftsförderung institute), but they are worse than useless, because they are trying to brainwash you into opening a business with fifty employees, wheras a violin repairer wants to sit at home on his own.

When I started back in the 80’s, I sold quite a lot of strings & cases and stuff, but that line of business is extinct, everyone buys such stuff online, so there is no point stocking anything. Nowadays there are vm wholesalers (in Austria Petz) who send orders immediately without charging porto. i.e. you send them a mail on Monday, and on Tuesday a Turkisch bloke in a van brings it. This means you need to stock practically nothing, perhaps a couple of sets of dominant strings, a kun shoulder rest and a couple of bridge blanks. Everything else will come in a van tomorrow if you need it

[Riccardo964]

1 hour ago, jacobsaunders said:

Everything else will come in a van tomorrow if you need it

Perhaps the real business model here is buy/sell vans!

[geoff1954]

I run a part-time violin repair and selling business in the UK. 

I would advise you not to invest in much stock. It's hard to make a living but topping up with other forms of income makes it viable for me.  No need to have an accountant in the UK. Just keep a record of all money spent and all money received, with receipts. Filling in the online tax return, once a year, is very easy. I've been doing this for 12 years and the HMRC has never challenged anything.  And don't forget to claim for heating and lighting. 

I assume you will not be hiring employees? That would be a big challenge.

[Brad Dorsey]

6 hours ago, Goran74 said:

...What are the critical materials I should prioritize, and in what quantities, to avoid overextending my budget while still being prepared for a range of repair and restoration tasks?...

I faced the same question when I started my own home-based violin business more than 30 years ago.  I decided than if I was really going to be in business I would need to have in stock most materials that I could reasonably expect to need for my customers' instruments and for my own instruments that I hoped to set up and sell.  Some specifics:

Bridges:  Full-size violin bridges are perhaps my most frequently used item.  At the beginning, I ordered a dozen at a time.  (Now I order them 50 at a time.)  And smaller quantities (perhaps two to four each) of 3/4, 1/2, 1/4 and 1/8 violin bridges.  Viola bridges move very slowly for me.  I initially ordered two of each available width, and I still have some from that initial order.  Cello bridges are a lot more expensive, but you have to have them if you work on cellos.  So, I ordered a half-dozen full-size, I think all the same width, and smaller quantities of smaller sizes down to 1/8.  (I think I have only fit one or two 1/8 cello bridges.)  I also keep a 3/4 bass bridge in stock, but I think I have only fit one or two of these.

Pegs:  When I realized that I really wanted to be in the violin business, I ordered full-size plain ebony violin pegs by the hundreds in thin, medium and thick shafts.  I still have some from these initial orders.  Also, smaller quantities of smaller violin pegs down to 1/8 size.  The smaller ones move very slowly.  Also, maybe two or three sets of viola and cello pegs.  These move very slowly. Occasionally I need to replace a peg or two, but rarely a whole set.

Tail pieces:  Again, I initially ordered maybe a half-dozen plain ebony full-size violin tail pieces, with smaller numbers of tail pieces for smaller violins and violas and cellos.  The idea is to have at least one of every size, and several of commonly used sizes.

Strings:  Stocking a wide string selection can be extremely expensive.  I limit the cost by limiting the selection.  I mostly carry Dominants, in violin sizes down to 1/8.  The small sizes move very slowly.  But I also have a few cheaper ones and a few steel string sets.

These are probably the most commonly used and commonly ordered items in my inventory.  But the principle applies to everything.  I want to have at least a little of everything that I might need, and larger quantities of more commonly used items.  It involves some guess work, and I have made some wrong guesses.  Occasionally I have been able to take advantage of opportunities to acquire some of these things at low cost.  Or no cost, such as when I salvage fittings from a worthless instrument.

Here is a list of other things that I have in my inventory:  tail guts, chin rests, shoulder rests, fine tuners, end pins (including cello), bass bar wood, sound post sticks, peg hole bushings, bow tips, rosin, bow windings (silver wire, tinsel, plastic strips), silver sheet (for bow fittings), pearl bow slides, fingerboard blanks, bow ferrules, bow hair, pearl dots, bow eyelets, bow screws, cases.  The total value (my cost) of everything in all of these categories is about $7000.  This value is the result of building up my inventory over many years.  I'm sure it is a lot more than I would need to get started.

[Larry Furse]

On 10/3/2024 at 3:21 PM, jacobsaunders said:

The truth is that it is futile to want to plan in detail. When I started, I did 5 medium to large viola repairs one after the other. I thought it would go on like that, and drove to Bubenreuth and bought myself viola fingerboards and stuff. I still had half of the fingerboards 20 years later.

Yes you need an accountant, and do what he tells you, and should be careful not to have any debts at the bank. You don’t need everything in stock, you can always order it.

As usual Jacob has sage advice.   

 

[geoff1954]

If you are in the UK, and maybe elsewhere in Europe, you'll probably want your turnover to remain below the VAT threshold. (About £70 in the UK?) This will keep your paperwork to a minimum. So beware of high quantity low profit items.

[Andreas Preuss]

I found it most difficult to explain ‘fair’ prices to customers. This made me writing a 20 page catalogue of repairs with descriptions and variant options. At the end I had 3 of them one for violin, one for viola and one for cello. My clients really liked it, especially viola customers because I didn’t treat them with the philosophy ‘violin price + 10percent’. However, Japanese customers are a bit different than European customers. 
 

In Germany the association of violin and bow makers made a price list for repairs which is a good guide line for a start up. Maybe you can get hold of something like that in your country.

In the digitalised world of Japan it was good to set up different forms of cashless payment methods. I think if you manage to accept only cashless payments the bookkeeping can be attached on the internet to your different payment systems. 

Also an internet appointment system is helpful, so that clients could choose a convenient visit time without calling by phone. (So this works outside your regular opening hours and you just need to check appointments every morning.) 

For the work flow I found it important to separate working time from consulting time. So I kept mornings for work and would accept appointments only in the afternoon. (For some reason I couldn’t set up the ‘by appointment only’ policy)

In the end, customers who felt well treated make the best advertising for your business.
 

There will be eventually all sorts of ‘business offers’ for promoting your business in the most ‘promising’ ways. I just found that I was helping them with no reward for myself. 

Good luck.

 

[M Alpert]

Great advice to be had here, as always!

I am curious where you are, and what your clientele and competition is like. If you don't know that, you're should start evaluating.

In Finland there is a local government organization that gives help with starting small businesses, you can consult free on writing a business plan which helps you analyze your chances in the market and your financial plan for success. Maybe there is something similar where you are? Of course there are also online resources.

@Brad Dorsey gave an excellent and very thorough inventory list, but depending on your workload starting out, you can get by with much less. I'd second @jacobsaunders :

Petz is great, Holfter is maybe even better, quick shipments wholesale throughout EU, most everything you will need you can get in a few days.

For violin strings, Dominants should be enough, especially if there's another store in your city that has a selection. Find your niche and cooperate with your colleagues (let them upkeep the inventory!)

Our accountant is essential, at least for calculating VAT! I'd rather repair things than crunch numbers. You need a card payment system, Sumup has worked and has low fees. And a business bank account, not always as easy as you might think *#$%

Keep your costs down, but pay for things someone else does faster and better. Open your doors, be honest but smart, your customers and your work are the best advertising you'll get. Listen to good musicians. Build your business as you can afford to, and be ready to work too much.

Good luck. It is possible!

 

[Goran74]

I would like to take a moment to express my heartfelt gratitude to each of you for the thoughtful responses, valuable insights, and time you have dedicated to my questions. Your insights and suggestions have been incredibly helpful as I navigate this journey. I truly appreciate your support and look forward to applying your recommendations as I move forward.