How to Start a Luxury Woodworking and Fine Craftsmanship Business

Starting a luxury woodworking and fine craftsmanship business can be a rewarding venture. It’s especially for those who love to create high-quality, unique items. The US woodworking industry was worth $258.5 billion in 2018. It will likely grow to $291.3 billion by 2024. This means there are big chances for business success.

First, know who you want to sell to and what your business will do. If you love making furniture, focus on that. If you prefer creating small wood items, that’s another option. Your business could also be about making wooden frames for buildings. This includes windows and doors.

Creating a solid business plan is key. This plan should show how you will advertise, your financial outlook, and how you will grow. Some places, like woodworking incubators, offer a space and tools for new business owners. They can save you money and help you start safely.

By getting really good at making things with wood, finding a niche that pays well, and being smart about marketing, you can have a successful business. This will let you earn money, meet other business people, and be a part of your local community.

Key Takeaways

  • The US woodworking industry is growing fast, making it a good time for new businesses.
  • It’s important to know who you want to sell to and what you will make and sell.
  • Your business plan should include how you’ll promote your products, your budget, and how you want to grow.
  • Woodworking incubators can give you the space and tools you need to get started, making it cheaper and less risky.
  • Getting really good at what you do, finding a niche you can make money in, and marketing well are crucial for a successful business.

Introduction to Starting a Luxury Woodworking Business

Do you love making furniture and other wooden items? Want to turn this passion into a successful business? Think besides just your craft. You’ll need to know how to make money and find people who love unique, handmade pieces. These are often favored over things that are mass-produced.

To start a luxury woodworking business, you need to spend time on many areas. This includes knowing your market, making a solid business plan, managing finances, and how to promote. Selling items from wholesalers might make money, but it can stray from your true love of creating exclusive, high-quality furniture.

To really make it in the luxury woodworking world, keep these points in mind:

  • Know your audience and what they like.
  • Make a detailed business plan with your goals and how you’ll reach them.
  • Use top-notch tools and materials for the best work.
  • Build a brand that shows why your products are special.
  • Market well to attract the right customers and make your business stand out.

The woodworking industry in the US made $258.5 billion in 2018. By 2024, it could hit $291.3 billion. Successful businesses, like John Blunt’s IsGood Woodworks, earn big money. They serve people who appreciate the beauty and quality of handmade furniture.

Woodworking Business Concept Description Target Audience
Custom Furniture Studio Creating unique, luxury furniture for clients’ tastes Rich homeowners, designers, fancy hotels, and top restaurants
Artisanal Woodcraft Shop Making handmade wooden accessories and gifts with premium materials People looking for exclusive, high-quality wood products
Bespoke Cabinetry Firm Making custom cabinets for big kitchens, bathrooms, and homes Wealthy homeowners, architects, and designers focusing on luxury

Focus on what makes you special. Find the right customers. Follow good business strategies. This way, your love for woodworking can become a successful luxury venture. One that not only shows off your craftsmanship but also your skill in running a business.

Developing Your Woodworking Skills and Expertise

To make it big in luxury woodworking, you must always improve your skills. The US woodworking industry is on the up, expected to jump to $291.3 billion in six years. This growth makes it possible for smaller businesses to take a piece of the $6 billion pie.

The Woodworkers Guild of America offers great help. It covers all you need from the basics to more advanced skills. This can prepare you well for the growth in construction despite challenges like labor shortages.

Learning from Experienced Woodworkers and Craftsmen

Getting tips from those already doing it is key. They can show you the ropes and avoid mistakes. Joining pro networks or talking to local businesses can lead you to great mentors.

Attending Workshops and Classes to Enhance Your Skills

Taking classes is also important. Look for local businesses that offer these chances. You’ll learn from hands-on experiences and experts in the field.

Revenue Threshold Woodworking Business Ranking
$1 billion Top 15
$400 million Top 25
$75 million Top 100
$10 million Top 300

Keep working on your skills and follow the trends closely. With hard work and learning, you can succeed in the luxury market. Business owners, on average, earn a good $15,000 a month, or $180,000 a year.

Identifying Your Niche and Target Market

Starting a luxury woodworking business involves key steps. One is picking your niche and target market. Focusing on a specific market segment helps you customize what you offer. This makes your business more appealing to your ideal customers. It can set you apart and grow a loyal following in the luxury woodworking field.

Researching the Luxury Woodworking Industry

It’s crucial to do your homework on the luxury woodworking scene. Look into what’s hot, how people are buying, and who’s buying. Here are some important things to find out:

  • The US woodworking industry was valued at $258.5 billion in 2018 and is projected to reach $291.3 billion by 2024.
  • Look into green woodworking, custom work, tech-savvy tools, unique crafts, and simple designs.
  • Those into luxury often have lots of money, stick with favorite brands, and want something special and timeless.

This research can point you to areas where your skills and ideas match luxury woodworking’s needs.

Creating Buyer Personas for Your Ideal Customers

After studying the market, it’s time to sketch out your ideal customer types. These buyer personas aren’t real people, but they’re drawn from solid market research. They show you what your potential customers want and need.

When making buyer personas, think about:

Demographic Characteristics
Age Well-off adults aged 30-60
Income Level High disposable income
Interests Luxury home decor, unique statement pieces, artisanal craftsmanship
Purchasing Behavior Value exclusivity, prestige, superior quality, and social status in products they purchase
Preferred Products Custom furniture, ornate boxes, keepsakes, dining table sets, rocking chairs

Creating detailed buyer personas guides how you make, sell, and present your products. It forms a strong bond with potential luxury woodworking customers.

Developing a Unique Brand Identity

In the luxury woodworking market, standing out is vital. You need a unique brand identity to attract high-end customers. Think about what makes your products special. It could be custom designs, using rare wood, or unique woodworking techniques.

When creating a powerful brand, certain aspects are crucial:

  • Authenticity: Let customers know the heart and skill put in every piece, showing off your craftmanship.
  • Excellence: Always aim to wow your customers, earning a spot at the industry’s top.
  • Sustainability: Going green can draw in buyers who prefer eco-friendly luxury items.
  • Community engagement: Connect with local talents and customers, building a community that cherishes your brand and its ethos.
  • Storytelling: Tell the stories of your products, creating a stronger bond with your audience from rare wood sourcing to design inspirations.

A memorable brand needs consistency. Make sure your branding looks the same everywhere. This includes your website, social media, and customer service. A consistent look and feel build trust and recognition.

Brand Identity Element Importance for Luxury Woodworking
Unique Selling Proposition (USP) Spotlights what makes your brand the go-to over others, showcasing your unique talents and offers
Visual Identity (logo, color scheme, imagery) Forms a visual image of your brand that mirrors its luxury and quality
Brand Voice and Messaging Conveys the essence and story of your brand in a way that connects with your audience
Customer Experience Ensures excellence and personalization in the entire customer journey, from product quality to post-sale care

With a unique brand identity, you set your luxury woodworking brand up for success. This approach highlights your excellent craft, green practices, and community bonds. A strong brand attracts the right customers, fosters loyalty, and establishes your place as a luxury woodwork leader.

Crafting a Comprehensive Business Plan

A solid business plan is vital for any luxury woodworking venture to succeed. It acts as a guide, showing the way for entrepreneurs as they start and expand their business. It details critical areas such as business setup, goals, competition check, and financial outlook. This plan is key for getting funding and ensuring the business thrives over time.

Defining Your Business Structure and Goals

Choosing the right business type is a major decision when launching a luxury woodworking business. You’ll need to pick from working solo, partnering with others, or setting up a company. Each type comes with its own pros and cons, and the choice depends on things like risk, taxes, and how you want to run your business. It’s also crucial to set clear business goals. This helps give your work a sense of purpose and track your success along the way.

Analyzing Your Competition and Market Demand

It’s key to thoroughly check out your competition to spot challenges and chances in the luxury woodworking world. Looking at what others in the field do well or not can help you stand out and draw in more customers. It’s also important to understand what people want and need in this market. This ensures your business offerings match up with what customers are looking for.

Market Segment Estimated Population Key Characteristics
Affluent sector of Boulder, Colorado 24,000 Females, married, college-educated, with children, household income greater than $100,000, aged 35 to 55, owning properties valued at over $425,000, working in professional settings

Creating a Financial Plan and Projections

Having a sound financial plan is crucial for your luxury woodworking business plan. It shows the business’s money matters are in order and can help you get financial support from investors or banks. Your plan should cover costs to start up, keep running, how you’ll make money, and your expected profits. When setting up your financial plan, remember these important points:

  • The custom fine furniture industry has been growing at about 7% yearly for the last five years, and it’s now worth over $20 billion.
  • You’ll need money for your work space, tools, hiring artisans, designers, showcasing your work, going online, marketing, and running your business.
  • You should make over $46,000 in revenue in the first year, and by year three, aim for nearly $80,000.
  • Try to get 45% of your money from selling your products, and make sure at least 10% comes from commercial clients.

By focusing on these key points in your business plan, you set your luxury woodworking business up for success. Keep in mind that staying flexible and adjusting your plan as needed is critical as your business and the market evolve.

Securing Funding for Your Luxury Woodworking Business

Getting enough funding is key to starting and expanding a luxury woodworking business. When starting out, it’s vital to look into different ways to finance your business. This ensures it has everything it needs to grow. Use your own money at first, but be ready to find other ways to fund your startup costs and future development.

Turning to friends and family for loans can be easier and more supportive. Yet, make sure to set very clear loan terms. This helps avoid any family drama later on.

Also, consider asking banks for a loan. A good business plan is a must to land one. Show the bank you know your stuff with insight into the luxury woodworking world. Let them see how you’ll pay back your loan and succeed in the long run.

If you need a lot of money, think about angel investors or venture capitalists. They inject cash in your business in exchange for a share of it. Plus, they bring in their industry knowledge and contacts. But, think hard about giving up part of your business before you decide.

Funding Option Pros Cons
Personal Savings Maintains full control and ownership Limited funds may hinder growth
Friends and Family Loans Flexible terms and understanding lenders Potential for personal conflicts
Bank Loans Access to larger sums of money Strict requirements and collateral needed
Angel Investors/Venture Capitalists Substantial funding and industry expertise Loss of some ownership and control

The best funding choice depends on what you aim to achieve as well as your finances and how much risk you can take. Look at the good and bad of each option. Then, pick the one that supports your business plan best. This will help you get the funds needed to turn your woodworking dream into a successful business that stands out.

Setting Up Your Workshop and Equipment

Setting up a well-equipped workshop is key for making top-notch luxury wood items. Space, accessibility, and zoning rules are important. An ideal size is about 125 square feet, good for tools and lumber storage.

Choosing the Right Location for Your Workshop

Picking the best spot for your workshop helps with productivity and efficiency. Key things to think about include:

  • Adequate space for your tools, machinery, and materials.
  • Area for deliveries and shipping.
  • Following local rules on zoning and noise.
  • Space for growth as your business expands.

Good lighting is a must. Aim for natural light or add plenty of light by painting in a bright color. For power, a dedicated electrical sub-panel is a good idea. This allows you to run multiple machines and lights at once. Make sure outlets are placed well for easy use.

Investing in High-Quality Tools and Machinery

High-quality tools are a must for your woodworking business. Think about your woodworking niche when choosing them. This will help your business grow and create fine pieces.

Tool/Machinery Purpose
Table saw Accurate cross, rip, and miter cuts when set up correctly.
Router Makes patterns or joins wood for decoration.
Power drill Does drilling, driving screws, and sanding with tools.
Miter saw Makes precise straight and miter cuts; some do bevel cutting.
Jigsaw For cutting detailed curved designs.
Clamps Keeps wood still when cutting or gluing.

Dust collection is vital for a clean and safe work area. Costs for these systems have come down. A good system can now be bought for less than $1000. They usually have a motor size from 1 to 2 HP. A 1.5 HP model is a good start. For a workshop with many machines, consider a system over 5 HP.

Choosing the right workshop location and having quality tools and machines are essential. They help you make fine luxury pieces and expand your business.

Sourcing Premium Materials and Supplies

For a luxury woodworking business, top-notch materials are key. They help in crafting outstanding items that command high prices. Finding high-quality woods and reliable suppliers is vital for top-notch work.

Start by looking for suppliers that focus on luxury wood types. These may include mahogany, walnut, cherry, and rare hardwoods. It helps to form strong bonds with dependable sellers. This ensures you get the best, and maybe at a discount for big orders. Think about these factors when picking your supplies:

  • Quality of wood grain, color, and texture
  • Whether the wood was sourced sustainably and ethically
  • How long it takes for your orders to arrive and if they’re reliable
  • The minimum amount you can order and how much space it needs

Caring about where your materials come from matters more now. Many buyers look for eco-friendly items. Look for suppliers who care about sustainable practices. They should have certifications like FSC or PEFC.

Think about the finish, hardware, and glue quality besides just wood. The best supplies can cost more, but they make your products more premium. This justifies their higher price.

Wood Species Price Range (per board foot)
Mahogany $8 – $28
Walnut $7 – $20
Cherry $5 – $15
Exotic Hardwoods (e.g., Ebony, Rosewood) $20 – $50+

Building a solid supply network keeps you stocked with premium supplies. It’s about connecting with trusted suppliers and keeping the lines of communication open. This way, you know about new stock, lead times, and any possible delays. Having multiple suppliers also helps keep your business running smoothly.

Looking into bulk buying can bring in some financial benefits. It ensures you’re never out of stock and can fulfill orders quickly. Being smart about when and what you buy helps you get discounts and have what you need when you need it.

Putting effort into getting top materials and supplies pays off. Your luxury woodworking operation can stand out with beautifully made pieces. These show off both the wood’s beauty and your skills.

Luxury Woodworking and Fine Craftsmanship Business Concept

A luxury woodworking business centers on unique, exquisite pieces. These items display outstanding skill and detail. They are sought after by clients who appreciate quality and the art behind each creation. Such businesses stand out by focusing on quality over quantity, earning a reputation for their exceptional work.

In this sector, craftsmanship reflects old and valuable traditions. One example is Azulejos, where craftsmen paint tiles by hand with careful precision. Wood carving, another notable craft, demonstrates the use of tools to create detailed designs. These practices set luxury woodworking apart from simple, factory-made goods.

Offering Customized and Bespoke Woodworking Services

At the heart of luxury woodworking is the ability to customize. This approach lets customers influence the final design, ensuring each piece reflects their unique style. This personal touch makes these items truly distinct, standing out against the mass-produced market.

Custom options can vary:

  • Choice of wood species, such as rare or exotic woods
  • Unique finishes, including gilding or hand-painted details
  • Personalized engravings or inlays
  • Custom dimensions and configurations to fit specific spaces

Collaborating with Interior Designers and Architects

Working with interior designers and architects is crucial. It opens doors to major projects and introduces work to a broader audience. These professionals often look for skilled woodworkers to create custom pieces that fit their designs perfectly.

To secure partnerships, woodworking businesses must showcase their best work. Their portfolio should show a variety of techniques and styles. This highlights their skill and creativity, proving their value to those in the design industry.

Technique Description
Gilding The application of thin coatings of metal, typically gold, on surfaces like metal, wood, porcelain, or stone, creating a luxurious and opulent finish.
Filigree A delicate jewelry technique involving the skilled soldering of tiny beads and twisted threads to create intricate motifs in gold and silver.
Metal Casting The art of heating metal until molten and pouring it into molds to create outstanding pieces like the Newton series or the iconic Eden series.

Focusing on quality, customization, and collaborative efforts with design professionals allows woodworking businesses to excel. This dedication to detailed work and creativity is what sets them apart in the luxury market.

Marketing Your Luxury Woodworking Business

Attracting high-end clients is key to being a top luxury woodworking business. To do this, a solid marketing plan is vital. Use digital platforms, attend events, and network widely. This will help you reach the right people and capture their interest.

Building a Strong Online Presence

Today, being online is a must for reaching clients and showing off your skills. Start with a great website. It should have beautiful photos of your work and happy client reviews. Make sure your site is easy to find by using search words that fit what you do.

Be active on Instagram, Facebook, and Pinterest to show off your latest work. Also, give your followers a peek behind the scenes at your workshop. Using these platforms for ads can help you get noticed by people looking for quality craftsmanship.

Networking and Building Relationships with Potential Clients

Networking can build important business connections. Go to industry events and join business groups. Online, forums can also be a great place to meet others. This is how you meet people like interior designers and luxury home builders who might want your services.

Know your ideal client well by creating a detailed buyer persona. Knowing their likes and needs helps you market to them better. This way, you can direct your marketing in a way that really speaks to who you want to attract to your business.

Showcasing Your Work at High-End Exhibitions and Events

Exhibiting at high-end events lets you show your work to the right crowd. Luxury home shows and design fairs are great for this. They allow you to show your best pieces and talk to people who love high quality and unique items.

When you’re at these events, make sure your display is eye-catching and reflects your luxury brand well. Don’t forget to have materials like brochures and business cards that tell people what you do. After the event, make it a priority to follow up with new contacts.

Marketing Strategy Benefits
Strong Online Presence
  • Reaches a global audience
  • Showcases your work 24/7
  • Generates leads through SEO and targeted advertising
Networking and Building Relationships
  • Connects you with potential clients and industry professionals
  • Leads to valuable partnerships and referrals
  • Helps you understand your target market better
Showcasing Your Work at Exhibitions and Events
  • Exposes your brand to a targeted audience
  • Demonstrates your craftsmanship and luxury positioning
  • Generates high-quality leads and nurtures relationships

Providing Exceptional Customer Service

In the luxury woodworking industry, giving great customer service is key. It’s vital for keeping clients coming back and for being known for top-notch work. A strategy that puts the client first, with clear talks, honesty, and quick replies, leads to great relationships and happy customers.

Providing a unique, personal touch is very important in luxury. As James Brown from Brownstone Hotels & Resorts says, luxury customers want to be stimulated, not just see the usual stuff. By focusing on each client’s wants and needs, you can show you really care. This approach should start from the first meeting and last till the end of the project.

To deliver amazing luxury service, focus on these important customer service areas:

  • Attentive listening and understanding of client requirements
  • Prompt and professional communication via phone, email, or in-person meetings
  • Regular updates on project progress and timelines
  • Flexibility and adaptability to accommodate client requests or changes
  • Meticulous attention to detail in craftsmanship and presentation
  • Personalized touches, such as customized packaging or handwritten thank-you notes

Getting feedback from clients and using it to improve is a sign of excellence and care. By listening and acting on what clients say, you demonstrate a real commitment to top service and quality.

Customer Service Element Impact on Luxury Experience
Personalized communication Builds strong client relationships and loyalty
Attention to detail Ensures exceptional quality and meets high expectations
Flexibility and adaptability Accommodates unique client requests and preferences
Continuous improvement Demonstrates commitment to excellence and customer satisfaction

By making great customer service your focus, your woodworking business can shine in a tough market. It will attract clients who need and appreciate your special, personalized approach. Building strong relationships and offering unbeatable service will help your business grow and succeed in luxury.

Managing Your Finances and Growth

Being a luxury woodworking business owner means keeping a tight grip on your finances. It’s key for the long-lasting success of your venture. Implementing good accounting and bookkeeping lets you track your money. This helps you make smart choices. This careful financial work is crucial for keeping your business profitable and growing.

Implementing Effective Accounting and Bookkeeping Practices

Keeping track of your business’s financial health is important. Consider hiring a professional to help. An expert accountant or bookkeeper can guide you through tax and financial rules. They can also give you insights into how your business is doing. And they’ll spot where you can do better and grow.

To set the right price for your woodworking items, knowing your costs is vital. Here are some things to keep in mind when figuring out your prices:

  • Wood prices can vary from $1 to $50 per board foot.
  • Factor in extra wood for waste and fixes, about 20%.
  • Add 10% to cover small costs like gas and time at the lumber yard.
  • For your labor, expect to charge $35 to $40 per hour.

A simple pricing formula is this: add 10% to materials cost, then add your hourly rate times the hours needed for the project.

Reinvesting Profits for Business Expansion

Growing your luxury woodworking business means putting some of your profits back into it. Reinvesting smartly can help you buy new equipment, upgrade your space, and market your products better. This all helps your business get bigger and come out on top.

Investment Area Estimated Cost Range
Starting a luxury woodworking business $5,000 – $200,000+
Carpentry workshop space (per square meter) $500 – $3,000
Core woodworking machines (table saw, planer, jointer) $1,500 – $8,000 each
Additional equipment (band saws, drill presses, dust collection systems, workbenches) $5,000 – $20,000
Optional equipment (CNC router, spray booth) $2,000 – $20,000

When planning your budget, put quality machinery and tools at the top of your list. They directly affect your product’s quality. For storage and finishing equipment, look for a balance between price and quality. This approach will help your business grow and thrive.

Staying Current with Industry Trends and Innovations

Staying updated with trends and innovations is key for luxury woodworking entrepreneurs. This helps keep them ahead in the market. Keeping an eye on the newest designs, materials, and how things are made lets you stand out. It helps ensure your business leads the way in the field.

It’s important for you and your team to keep learning. Going to workshops and shows gives you the latest info and gets you inspired. It also lets you meet others in the industry. These events can introduce you to tools that make your work better. They can also make your clients happier.

One game-changer in the luxury woodworking world is 3D modeling and CNC machines. With these, you can make detailed designs with ease. This lets you make unique pieces that really show off your skill and care. Using these tools can make your work smoother. You can also take on more complex projects.

Trend Impact on Luxury Woodworking
Sustainable and eco-friendly materials Increased demand for responsibly sourced wood and materials that minimize environmental impact
Multifunctional and space-saving designs Growing interest in furniture pieces that serve multiple purposes and maximize living space
Integration of technology Incorporation of smart features, such as wireless charging and LED lighting, into luxury woodworking pieces
Collaboration with other artisans Partnering with metalworkers, glassblowers, and other craftsmen to create unique, multidisciplinary pieces

The luxury furniture market is growing fast. It could reach USD 34.69 billion by 2030. To be successful, it’s crucial to keep up with trends and innovations. By always improving, adopting new tech, and meeting customer needs, your business can thrive.


Starting a luxury woodworking business needs a blend of skill, business know-how, and a love for top-tier goods. Those looking to start should work on their craft, pinpoint who their customers are, and create a detailed business plan. This plan sets the stage for a successful start. It’s key to invest in top-notch materials, the best equipment, and set up a great workshop.

To stand out in the luxury woodworking world, effective marketing is crucial. This could mean having a strong online presence, networking, and showing off work at fancy events. Offering top-notch service is a must from the first talk to the final piece’s delivery. This builds loyal customers and a solid reputation. Luxury woodworking businesses thrive on ongoing learning, keeping up with new trends, and using new tech to improve clients’ experiences and work processes.

Success for a luxury woodworking venture boils down to uniting craftsmanship zeal with smart business moves. Entrepreneurs in this area should always seek to improve their craft, keep up with what customers want, and manage finances well. This way, they can foster long-lasting growth and achieve significant success in this dynamic industry.


What skills do I need to start a luxury woodworking business?

Start by mastering woodworking skills. This means knowing many techniques, tools, and materials. Join workshops and classes. Also, get advice from experienced woodworkers to level up your skills.

How do I identify my target market for a luxury woodworking business?

Start by researching the luxury woodworking scene. Create buyer personas to understand your ideal customers. Know what they like and need. This info will shape your products and services to fit their desires.

Why is a unique brand identity important for a luxury woodworking business?

A standout brand makes your business different from others. It shows the top-notch quality and craft of your items. A memorable brand helps your target customers recognize and choose your products.

What should I include in my business plan for a luxury woodworking business?

Your business plan must detail your business model, objectives, competition, and market needs. Include financial forecasts. A solid plan guides your business and attracts funding from investors or lenders.

How can I secure funding for my luxury woodworking business?

You can use personal savings, borrow from loved ones, or apply for bank loans. Also, seek investments from angel investors or venture capitalists. With a detailed business plan, you can show your business is solid and worthy of investment.

What should I consider when setting up my luxury woodworking workshop?

Think about location, space, and local rules. Buy high-quality tools that fit your niche. This ensures your work is precise and efficient.

How do I source premium materials for my luxury woodworking projects?

Find suppliers of luxury woods and form strong partnerships. Always choose materials that are sourced ethically. Establish a solid supply chain for reliable access to top-quality woods.

What marketing strategies are effective for a luxury woodworking business?

To market your luxury woodworking business, create a sleek website and engage on social media. Network with interior designers and showcase your work at high-profile events and shows.

How can I provide exceptional customer service in the luxury woodworking industry?

Key in on clear communication, transparency, and quick responses. Aim for a personalized approach that makes every customer feel special. Always ask for feedback to keep improving.

What financial management practices are essential for a luxury woodworking business?

Start with great accounting and bookkeeping. Keep an eye on cash flow. Reinvest part of your profits for business growth. Consider hiring a pro to manage your finances and stay on top of tax laws.

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