Introduction

Henry is currently working for a consulting firm, having been declared bankrupt just over a year ago due to a failed business endeavor. He is also a woodworking enthusiast and has been interested in woodworking sincehigh school. Now, many years later, Henry crafts wooden items for use in his own home and as gifts for his friends and extended family. Going forward, he is hoping to supplement his income,in particular duringretirement, by making items to sell.

Background

Over the last 5 years, Henry and his dad invested in woodworking machines, tools and supplies. These include a table saw (cost $2,495), a 16-inch planer (cost $1,950) and an 8-inch jointer (cost $750), the latter was bought secondhand on Craigslist. As these machines produce a significant amount of sawdust/fine dust particles, they purchased a dust collection system and retrofitted this in his dad's woodshop, which is a barn on his property. The cost of this system was approx. $900, excluding the time it took for them to install it. While there are many othertoolsand machines they would like to buy, their cost is prohibitive, unless they will be used frequently. In addition to these 'big ticket' items, they have acquired a myriad of smaller tools and supplies - chisels,handheldsanders,safety glasses, dust masks,sandpaper, screws, glue, clamps, etc.

The wood they use is mostly hardwoods that are native to Pennsylvania. They buy this locally for cash and their current timber 'stack' cost in the region of $2,400.

Imminent opportunities

Cutting boards for realtor