The Lego Group began in the carpentry workshop of Ole Kirk Christiansen, in Billund, Denmark. In 1916, Christiansen purchased a woodworking shop in Billund which had been in business since 1895.[1]:8 The shop mostly helped construct houses and furniture, and had a small staff of apprentices. The workshop burned down in 1924 when a fire ignited some wood shavings.[2]:37 Ole Kirk constructed a larger workshop, and worked towards expanding his business even further. When the Great Depression hit, Ole Kirk had fewer customers and had to focus on smaller projects. He began producing miniature versions of his products as design aids. It was these miniature models of stepladders and ironing boards that inspired him to begin producing toys.[2]:39

In 1932, Ole Kirk's shop started making wooden toys such as piggy banks, pull toys, cars and trucks and houses. The business was not profitable because of the Great Depression. Farmers in the area sometimes traded food in exchange for his toys; Ole Kirk continued producing practical furniture in addition to toys to stay in business. In the mid-1930s, the yo-yo toy fad gave him a brief period of increased activity until it suddenly collapsed. To reduce waste, Ole Kirk used the leftover yo-yo parts as wheels for toy trucks.[1]:15 His son Godtfred began working for him, taking an active role in the company.[1]:15