sawmill business plan

How to Start a Sawmill Business: Step-by-Step Guide for Beginners

Are you looking to turn your passion for woodworking into a profitable business venture? Starting a sawmill could be just the opportunity you’ve been looking for. But where do you begin? The sawmill industry can seem daunting, with many factors to consider before diving in. Fortunately, by following a few key tips and tricks, you can set yourself up for success and avoid common pitfalls.

In this blog, we’ll explore everything you need to know to start a sawmill business, from choosing the right equipment to marketing your products effectively. So grab your hard hat and let’s get started!

Planning and Research

Starting a sawmill business requires careful planning and extensive research. Before investing money and time, aspiring entrepreneurs must first determine the feasibility of their idea. Factors such as location, market demand, competition, and cost analysis must be taken into account.

Developing a comprehensive business plan can help in identifying potential challenges and opportunities and setting realistic goals. It is also crucial to research and comply with state and local regulations and obtain all necessary permits and licenses. Additionally, understanding the equipment needed, such as saws, kilns, and drying sheds, and investing in high-quality machinery can ensure the success and growth of the business.

Overall, starting a sawmill business requires a lot of investment, both financially and time-wise, but with proper planning and research, it can be a profitable venture in the long run.

Market Analysis

When starting a business, planning and research are crucial to success. Understanding the market and its trends can help determine the demand for your product or service. Market analysis involves studying the industry, competition, and target audience to identify opportunities and potential challenges.

By conducting thorough research, you can gather data on consumer behavior and preferences, industry regulations, and current market conditions. This information can be used to develop a strategic business plan and make informed decisions that position your brand for growth. Without proper planning and research, businesses risk wasting resources and missing out on potential opportunities.

In short, market analysis is the foundation for any successful business venture. By understanding the market and utilizing the insights gathered, businesses can gain an edge over their competition and thrive in their respective industries.

Creating a Business Plan

When planning to start a business, it’s essential to have a well-structured business plan. Thorough research and planning are crucial in creating a business plan that outlines the mission, goals, strategies, and financial projections of the business. The first step in planning is conducting market research to determine the target market, competitors, and industry conditions.

This information helps identify potential customers and trends within the industry that can be leveraged to achieve success. Furthermore, creating a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) helps outline the competitive landscape and gives insight into how to position the business to stand out in the market. With the research conducted, it’s time to strategize and plan out how to implement a cohesive business plan that incorporates branding, marketing, operations, and financials.

A detailed plan helps ensure that the business stays on track and can be adjusted as needed to achieve success. Overall, research and planning are critical steps in creating a well-structured business plan that lays the foundation for a successful business venture.

Location and Equipment

When it comes to planning and researching for a location and equipment for your business, there are a few things that you should take into consideration to ensure the success of your venture. Firstly, think about the target market and what their needs are. Do they require a location that is easily accessible, or are they looking for a unique experience that is off the beaten path? Secondly, consider the logistics of the location, such as parking, transportation, and nearby amenities.

You want your customers to feel comfortable and have everything they need within reach. Finally, when it comes to equipment, it’s essential to research the best of the best. Invest in items that will last long and deliver the best possible experience for your customers.

By taking the time to plan and research, you can ensure that your business gets off to a great start, and you’re able to provide exceptional service to your customers, which will keep them coming back for more.

Legal and Financial Considerations

Starting a sawmill business requires a lot of legal and financial considerations. First and foremost, it’s important to choose the right business structure that suits your needs and goals. You can select from various options like sole proprietorship, partnership, LLC, S-corp or C-corp.

Secondly, you need to obtain all the necessary licenses and permits required by your state or local government. This may include environmental permits, zoning permits, and business licenses. It’s also crucial to register for taxes and get an EIN from the IRS.

Another important aspect of starting a sawmill business is securing financing. This involves finding investors or lenders who can provide the necessary capital. You may also need to prepare a detailed business plan showcasing your financial projections, market analysis, and marketing strategies.

Moreover, it’s advisable to consult with an attorney or business expert to ensure you cover all legal and financial requirements. With diligent planning and expert guidance, you can start a profitable sawmill business and thrive in the industry.

Business Registration and Licenses

When starting a business, it’s essential to consider the legal and financial aspects of the process. One of the most critical steps is registering your business and obtaining the correct licenses. It can be confusing to navigate the various requirements and regulations, but it’s crucial to do so correctly to avoid penalties or legal issues down the line.

Depending on the nature of your business, you may need to register with state or local authorities, obtain specific permits, or apply for a tax identification number. Failing to take the proper steps could result in fines, legal action, or even the closure of your business. Think of it as laying a strong foundation for your business to operate on in the long run.

Taking these legal and financial considerations seriously will help ensure your business’s success.

Insurance Needs

When it comes to legal and financial considerations, insurance needs are something that can’t be overlooked. Whether you’re running a business or simply concerned about your personal liability, there are a variety of insurance options to consider. For example, many businesses will need general liability insurance to protect against lawsuits and property damage, while individuals may want to invest in auto or home insurance to safeguard their assets.

Additionally, there are specialized insurance options for specific industries or professions, such as malpractice insurance for doctors or errors and omissions insurance for insurance agents. No matter what type of insurance coverage you need, it’s important to research your options and choose a policy that is tailored to your unique circumstances. By doing so, you can rest assured that you’re protected in the event of unexpected legal or financial challenges that may arise.

So, don’t neglect your insurance needs – invest in the right coverage and enjoy greater peace of mind.

Financing Options

When considering startup financing options, it’s essential to keep legal and financial considerations in mind. One of the most common financing options is taking out a loan from a bank or other financial institution. However, it’s crucial to understand the terms and repayment schedule before signing on the dotted line.

You should also consider options such as crowdfunding or angel investors, which can provide funding without the need for a loan. It’s also critical to understand legal obligations such as setting up a business entity and obtaining any necessary licenses or permits. Failing to do so can result in legal troubles down the road.

Furthermore, be sure to keep detailed financial records to monitor cash flow and expenses. Understanding and staying on top of these legal and financial considerations from the start can set you up for success in the long run.

Cost Analysis

When starting a business, legal and financial considerations should always be accounted for. Expenses associated with legal and financial requirements can add up quickly and unexpectedly. When determining the cost analysis of starting a business, it is important to factor in the costs of legal fees, accounting fees, taxes, and licenses.

These expenses can vary greatly depending on the type of business and the location, so it is necessary to research the specific requirements for your business. It is also important to consider the long-term costs of not properly handling legal and financial matters, as it can potentially lead to lawsuits or penalties. In the long-run, investing in a qualified lawyer and accountant can save you money and protect your business.

It’s important to prioritize these legal and financial considerations as essential parts of the initial planning and budgeting stages of your new business.

Operations and Marketing

Starting a sawmill business can be a challenging task, but with the right approach, it can lead to great reward. Generally, the first step towards starting your own sawmill business is to develop a detailed business plan that incorporates aspects such as market analysis, demand growth, financial projections, operating requirements, and the cost of starting the business. While developing your business plan, you should also consider operational aspects such as equipment requirements, space, and personnel.

Once you have developed your business plan, the next step is to market your sawmill business. This involves developing a marketing strategy that includes identifying your target market, conducting market research, devising a pricing strategy, and creating an online presence. With the right operational and marketing approach, you can start and grow a successful sawmill business that can offer employment opportunities and add value to your local community.

Hiring and Training Personnel

When it comes to hiring and training personnel for your business, you need to strike a balance between operations and marketing. On the one hand, you want to ensure that your employees are equipped with the necessary skills to effectively handle your day-to-day operations. On the other hand, you also want to make sure that they understand the importance of marketing and how it impacts your overall success.

One effective way to achieve this balance is by providing cross-training opportunities. By offering training in both operations and marketing, you can create well-rounded employees who are capable of handling a variety of tasks and contributing to the growth of your business. Additionally, by highlighting the importance of marketing during the hiring process, you can attract candidates who are passionate about promoting your business and understanding your target audience.

So, whether you’re looking to hire new employees or train your existing team, remember that a focus on both operations and marketing can lead to greater success for your business.

Log Procurement and Milling Operations

As a logging company, it’s crucial to keep an accurate record of all log procurement and milling operations. This involves tracking everything from the initial extraction of the logs to the final stages of milling and processing. By maintaining detailed records, logging companies can better identify any inefficiencies in their operations and make data-driven decisions to optimize their performance.

It also helps to ensure compliance with local regulations and sustainability practices, as well as giving customers peace of mind that their wood products come from a responsible source. In addition to operational benefits, proper record-keeping can also play a role in marketing efforts. Logging companies that can provide transparent and verifiable information about their operations are more likely to attract environmentally conscious consumers who prioritize sustainable practices.

By leveraging data in this way, logging companies can enhance both their operations and marketing efforts, ensuring long-term success in a competitive industry.

Product Line and Sales Strategies

When it comes to successful operations and marketing for a business, the product line and sales strategies play a crucial role. The product line refers to the products or services that a business offers to its customers, while sales strategy is the approach that a business takes to generate sales and revenue. To succeed in the market, a business needs to have a well-defined product line that meets the needs of its customers, and sales strategies that effectively communicate and promote these products to potential customers.

A business can achieve this by aligning its product line with the current market demand and continuously analyzing the sales data to refine its sales strategy accordingly. By adopting a data-driven approach, businesses can predict potential market trends and make informed decisions on product development and marketing initiatives. In summary, the success of a business relies on both the product line and sales strategies, and effective operations and marketing require a balance between the two.

Networking and Building a Customer Base

When starting a new business, networking and building a customer base are crucial steps to success. One effective way to do so is attending local events and getting involved in the community. This allows you to meet potential customers and develop relationships with other businesses in the area.

Utilize social media platforms to establish an online presence and connect with a wider audience. It’s important to have a clear message and brand identity in order to attract the right kind of customers. Once you have established a customer base, it’s important to keep them engaged and satisfied by providing excellent customer service and quality products/services.

Consider offering incentives such as referral programs or loyalty rewards to keep customers coming back. Remember, building a strong customer base takes time and effort, but with dedication and consistency, your business can thrive.

Starting a sawmill business might seem daunting, but with proper planning and execution, it can be a rewarding and profitable venture. From understanding the market demand, securing a suitable location, acquiring the right equipment, to developing a marketing strategy – success lies in meticulous attention to detail and a commitment to quality. But perhaps the most crucial ingredient to this recipe for success is a deep passion for the industry and a willingness to learn and adapt to new challenges.

So, sharpen your saw blades, embrace the wood-loving community, and saw your way to success in the lumber industry!”

What are the initial steps required to start a sawmill business? The initial steps include conducting market research, developing a business plan, obtaining necessary permits and licenses, securing financing, and purchasing equipment.

How much does it cost to start a sawmill business? The cost to start a sawmill business varies depending on the size and scale of the operation. It can range from tens of thousands to millions of dollars.

What permits and licenses are required to start a sawmill business? Required permits and licenses vary by location, but typically include a business license, environmental permits, and timber harvesting permits.

What equipment is necessary to start a sawmill business? The necessary equipment includes a sawmill, debarker, edger, and various machines for sorting, grading, and processing lumber.

How can I finance my sawmill business? Financing options include traditional bank loans, Small Business Administration (SBA) loans, private investors, and crowdfunding.

How can I find a reliable timber supplier for my sawmill business? Networking with local forestry associations, attending trade shows, and using online resources such as the Forest Products Network can help you find a reliable timber supplier.

What are some common challenges faced by sawmill businesses? Common challenges include maintaining consistent quality and quantity of raw materials, dealing with fluctuating market demand and prices, and complying with environmental regulations.

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Sawmill business is a profitable venture for those who specialize in the production and sale of timber products. It involves the cutting, preparation and selling of logs and lumber. Building a successful sawmill business requires significant investments, hard work and knowledge of the industry.

Starting a sawmill business involves the purchase of land to set up and run the sawmill. It also includes the purchase of quality sawmilling machinery, which can be expensive. You should also consider obtaining a working capital loan to help with start-up costs.

You should also carefully plan out the types of timber products you will produce. For example, will you be sawing hardwoods or softwoods? Will you need to purchase kiln-dried lumber? Knowing the types of lumber you will be producing will determine what type of sawmill equipment you need, as well as the size of the log inventory you will need.

Finding the right customers for your sawmill business is vital for long-term success. You should research nearby wood markets, such as furniture and cabinet makers, home builders and woodworking shops.

By offering high quality products, competitive pricing and excellent customer service, you will build a good reputation that will help bring in new customers. Also, expanding into selling additional products, such as unfinished and finished furniture pieces, can expand your target customer base and boost profits.

As the sawmill business grows, it’s important to keep up with changing technologies. Invest in new, more efficient sawmill equipment that can help reduce waste and improve production. Developing a business plan can help you make informed decisions and set goals for your sawmill business.

How much does it cost to start a sawmill business

The cost associated with opening a sawmill business varies depending on the size of the business, location, and equipment and services needed. An estimate of the total cost to start a sawmill business could be around $50,000 – $100,000.

One of the most important costs to consider when starting a sawmill business is your capital investment. The cost of new equipment, such as saws and accessories, can vary greatly but will typically range from $20,000 – $50,000. Used equipment that is still in good working condition is often a good consideration as well, with prices ranging from $5,000 – $20,000.

Another cost to consider is that of personnel and labor. Depending on the size, scope and number of clients that your business will serve, you may need to hire 2-3 additional employees. This should be included in your estimated costs, likely ranging from $10,000 – $20,000 per person.

Your business location is a major factor in the cost of starting a sawmill business. Rent and utility costs can range from $1,000 to $5,000 per month, depending on the size of the facility and location. Also, you may also need to purchase land for the business and construct a building to house the mill, which will increase costs significantly.

Advertising and promotion of your business may also be necessary in order to generate additional customers and revenue. This cost can vary greatly, depending on your desired methods and strategies. If you plan on using digital marketing, this cost may be a few hundred dollars per month, while traditional advertisement through radio, television, or newspaper may be thousands per month.

Additional costs to consider when starting a sawmill business include liability and property insurance, business licenses and permits, and accounting and legal services. The cost of legal and accounting services will vary based on the complexity of your business. Additionally, business permits and licenses may vary by location, so it is important to research specific requirements in the area you plan on operating your business.

The total cost to start a sawmill business may range from approximately $50,000 to $100,000. The total cost will depend on the size and scope of the business, the specific location and the required equipment, personnel and services. In most cases, a larger investment upfront can help reduce costs in the long-term and increase profitability in the future.

Steps Involved in Starting Sawmill Business

• Create a Business Plan: Before launching a sawmill business, you must create a comprehensive business plan that details your goals, vision, and strategies for success.
• Obtain Financing: Depending on the size and scope of your sawmill business, you may need to obtain financing from banks, venture capitalists, or private lenders.
• Acquire Equipment: Sawmill businesses require a variety of special equipment in order to build and craft items. You will need to purchase saws, planers, shapers, chippers, and other essential tools and machinery that are necessary to create items from logs and lumber.
• Source Lumber: In order to make products, you will need lumber to work with. You can purchase logs from lumberyards and tree farms, or you can cut down trees yourself.
• Market Your Business: You will need to advertise your sawmill business in order to make consumers aware of your services. Advertise on social media and in local newspapers.
• Establish a Customer Base: You must establish a customer base in order to make the most of your sawmill business. Develop relationships with potential customers and offer discounts for bulk orders.
• Supply Your Customers: Make sure you can meet customer demand by having ample supplies of lumber and other materials that are necessary for your sawmill business.

Profit Margin in Sawmill Business

The profit margin in a sawmill business depends on a variety of factors, including the cost of the raw materials, overhead costs, operating costs, and the final sale price of the product. The average gross profit margin for sawmills is usually between 20% and 30%, but this can vary significantly depending on the market.

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How to Start Up a Woodworking Sawmill Business

Are you considering starting up a woodworking sawmill business but not sure where to begin? In this article, we will guide you on how to start up a woodworking sawmill business successfully. From understanding the basics of a woodworking sawmill business to tips and tricks for success, we will cover everything you need to know to get your venture off the ground.

To start up a woodworking sawmill business, it is essential to have a strong foundation in the industry. Understanding how the business operates, the equipment needed, and the market demand are crucial aspects to grasp. With proper research and knowledge of the industry, you can set yourself up for success in this competitive field.

Crafting a solid business plan is key to mapping out your goals, budgeting effectively, and securing funding for your woodworking sawmill business. By setting clear objectives and outlining your financial projections, you can create a roadmap for your company’s growth and sustainability. Stay tuned as we delve deeper into each step of starting up a woodworking sawmill business in the following paragraphs.

Table of Contents

Research and Market Analysis

Before diving headfirst into starting a woodworking sawmill business, it is crucial to conduct thorough research and market analysis to ensure success in the industry. Identifying your target market will allow you to tailor your products and services to meet the specific needs and demands of potential customers. Understanding the demographics, preferences, and buying behavior of your target market will give you a competitive edge in the market.

In addition to identifying your target market, evaluating the competition is essential for the growth and sustainability of your woodworking sawmill business. Analyzing existing sawmills in your area or region will help you determine what sets your business apart and how you can differentiate yourself from competitors. Take note of their pricing strategies, product offerings, customer service, and marketing tactics to develop a unique selling proposition that will attract customers to your business.

When conducting market analysis for your woodworking sawmill business, consider reaching out to industry professionals, attending trade shows and conferences, and utilizing online resources to gather valuable insights. Utilize this information to refine your business model, identify opportunities for growth, and develop strategic partnerships within the industry. By thoroughly researching your target market and evaluating the competition, you can position your woodworking sawmill business for long-term success in the marketplace.

Crafting a Business Plan

Starting a woodworking sawmill business requires careful planning and strategic decision-making. Crafting a comprehensive business plan is crucial in setting the foundation for a successful venture. In this section, we will delve into the key steps involved in developing a business plan, including setting goals, budgeting, and securing funding.

Setting Goals

Before diving into the details of your woodworking sawmill business, it is essential to establish clear and achievable goals. Determine what you want to achieve with your sawmill – whether it’s becoming a prominent supplier of quality lumber in your area or expanding your operations to reach a broader market. Setting specific, measurable, attainable, relevant, and time-bound (SMART) goals will guide your business activities and keep you focused on success.

Effective budgeting is vital for the financial health of your woodworking sawmill business. Determine how much capital you need to start and operate your sawmill successfully. Consider expenses such as equipment purchase or lease, site acquisition or construction costs, raw materials, labor wages, utilities, marketing expenses, and other overhead costs. Creating a detailed budget will help you understand your financial requirements and ensure that you allocate resources efficiently to support your operations.

Securing Funding

Once you have outlined your goals and budgeted for your woodworking sawmill business, the next step is securing funding to bring your vision to life. There are various options available for financing your venture, including traditional bank loans, small business grants, crowdfunding platforms, angel investors, or partnerships.

Evaluate each funding option carefully based on factors such as interest rates, terms and conditions, repayment schedules, and potential impact on ownership control. By securing adequate funding sources that align with your financial plan and business goals, you can set yourself up for long-term success in the woodworking sawmill industry.

Equipment and Location

When starting up a woodworking sawmill business, one of the key considerations is selecting the right equipment and finding a suitable location for your operation. The machinery you choose will have a significant impact on the quality and efficiency of your production process. Here are some essential pieces of equipment you will need to get started:

• Band sawmill: This essential piece of machinery is used to cut logs into lumber. Band sawmills come in various sizes and configurations, so it’s important to choose one that fits the scale of your operation.
• Debarker: A debarker removes the bark from logs before they are processed, which helps improve the quality of the finished product and prolongs the life of cutting blades.
• Edger: An edger is used to trim rough edges from lumber and create smooth, straight boards. Investing in an edger can help maximize the yield from each log you process.

In addition to choosing the right equipment, finding a suitable location for your sawmill is crucial for your business’s success. Factors such as access to raw materials, proximity to customers, and zoning regulations will all play a role in determining where to set up your operation. Here are some tips for selecting the ideal site for your woodworking sawmill business:

• Accessibility: Choose a location that allows easy access for transporting raw materials and finished products. Consider access to major roads or highways for efficient distribution.
• Proximity to suppliers: Being close to suppliers of raw materials such as logs can help reduce transportation costs and streamline your production process.
• Zoning requirements: Make sure to research local zoning regulations to ensure that your sawmill is compliant with any land use restrictions or environmental regulations in place.

By carefully selecting the right machinery and finding an optimal location for your woodworking sawmill business, you can position yourself for success in this competitive industry. Conducting thorough research and planning during this stage of setting up your operation will help lay a strong foundation for growth and profitability in the future.

Legalities and Regulations

Starting up a woodworking sawmill business involves more than just purchasing the right equipment and finding a suitable location. It also requires compliance with various legalities and regulations to operate legally and avoid any potential issues down the line. Navigating through permits, licenses, and compliance requirements is crucial for the success of your sawmill business. Here are some key steps to ensure you are meeting all necessary legal obligations:

• Research and Identify Required Permits: Start by researching the specific permits required for operating a sawmill in your area. This may include environmental permits, zoning permits, operational permits, and more. Contact your local government offices or business development centers for guidance on what permits are needed.
• Apply for Licenses: Once you have identified the necessary permits, it’s important to apply for the required licenses to legally operate your sawmill business. This may include business licenses, forestry licenses, timber harvesting licenses, etc. Make sure to fill out all applications accurately and submit them in a timely manner.
• Ensure Compliance with Regulations: Aside from obtaining permits and licenses, it’s essential to ensure that your sawmill operations comply with all relevant regulations. This includes safety regulations, environmental regulations, labor laws, tax requirements, and any other laws that may apply to your business. Consult with legal professionals if needed to ensure full compliance.

By taking the necessary steps to navigate through permits, licenses, and compliance requirements effectively, you can establish a solid legal foundation for your woodworking sawmill business. Staying on top of these aspects will not only help you avoid potential penalties or shutdowns but also build a trustworthy reputation within your industry and community.

Remember that laws and regulations may vary depending on your location, so it’s crucial to do thorough research and seek professional advice when needed. By prioritizing legalities and compliance from the start, you can set yourself up for long-term success in running your woodworking sawmill business smoothly and efficiently.

Operations and Production

Establishing efficient workflow processes and maintaining high-quality standards are crucial aspects of running a successful woodworking sawmill business. By focusing on operations and production, you can maximize productivity and ensure customer satisfaction with the products you deliver.

Workflow Processes

One important aspect of operations is establishing effective workflow processes to streamline production in your sawmill. This includes organizing the sequence of tasks from log intake to final product delivery, optimizing the use of machinery, and ensuring smooth transitions between different stages of processing. Implementing standardized procedures can help reduce errors, improve efficiency, and ultimately increase output.

Quality Control

Maintaining quality control is essential to uphold the reputation of your woodworking sawmill business. Developing a robust quality assurance program involves carefully monitoring each step of the production process, conducting regular inspections, and implementing corrective measures when necessary. Ensuring that only top-quality lumber leaves your facility will not only attract repeat customers but also help build a strong brand image in the market.

Employee Training

Investing in employee training is another key component of establishing efficient operations and maintaining quality control in your woodworking sawmill business. Providing comprehensive training programs for your staff can enhance their skills, boost morale, and promote consistency in the work they perform. Well-trained employees are more likely to adhere to best practices, follow safety protocols, and contribute to the overall success of your sawmill operation.

Marketing and Sales Strategies

Once you have set up your woodworking sawmill business, the next crucial step is to develop effective marketing and sales strategies to build a strong brand and attract customers. One of the first things you should do is create a compelling brand identity that reflects the quality and uniqueness of your products. This can include designing a memorable logo, choosing a consistent color scheme, and developing a brand voice that resonates with your target market.

In addition to establishing your brand, you need to focus on promoting your products and services to potential customers. Utilize both online and offline marketing channels to reach a wider audience. This can involve setting up a professional website showcasing your offerings, creating social media profiles to engage with customers, attending trade shows or local markets for networking opportunities, and even investing in targeted advertising campaigns to increase visibility.

Another essential aspect of successful marketing and sales strategies for your woodworking sawmill business is building relationships with customers. Providing excellent customer service, delivering high-quality products consistently, and listening to feedback are all crucial in retaining existing clients and attracting new ones. Word-of-mouth referrals from satisfied customers can be one of the most powerful marketing tools for growing your sawmill business.

Growth and Expansion

Starting a woodworking sawmill business is an exciting venture that can lead to significant growth and expansion opportunities. To scale your business effectively, it is essential to consider various factors such as increasing production capacity, diversifying product offerings, and planning for the future. One of the key aspects of expanding your sawmill business is to invest in additional machinery and equipment to meet growing demand.

When looking to grow your woodworking sawmill business, it is crucial to assess the market trends and customer preferences. This will help you identify new product opportunities and areas for diversification. By offering a wider range of lumber products or value-added services, you can attract a broader customer base and increase revenue streams. Developing strategic partnerships with other businesses in the woodworking industry can also help you expand your market reach and enhance your competitiveness.

Planning for the future of your woodworking sawmill business involves setting clear goals, establishing timelines for expansion, and implementing sustainable practices. Investing in technology upgrades, employee training programs, and efficient production processes can position your business for long-term success. By staying adaptable to changing market conditions and consumer demands, you can ensure that your sawmill business remains competitive in the industry.

Tips and Tricks for Success

Starting up a woodworking sawmill business requires careful planning, strategic decision-making, and a deep understanding of the industry. By following the steps outlined in this guide, entrepreneurs can set themselves up for success in this competitive market. From conducting thorough research and crafting a solid business plan to navigating legalities and regulations, every aspect plays a crucial role in the journey towards establishing a thriving sawmill operation.

One key consideration for success in the woodworking sawmill business is investing in high-quality equipment and choosing a suitable location. The machinery used in the sawmill greatly impacts the quality of the final product, so selecting the right tools is essential. Additionally, finding a strategic location that provides easy access to raw materials and transportation routes can streamline operations and reduce costs. By paying close attention to these details, entrepreneurs can ensure efficiency and profitability in their business.

Moreover, marketing and sales strategies are vital for attracting customers to the woodworking sawmill business. Building a strong brand presence through effective marketing techniques can help drive sales and grow the customer base. Utilizing digital platforms, networking within the industry, and offering unique products or services can set a sawmill apart from competitors. By focusing on customer satisfaction and fostering relationships with clients, entrepreneurs can position their woodworking sawmill business for long-term success and growth.

Frequently Asked Questions

Is owning a sawmill profitable.

Owning a sawmill can be profitable with careful planning and execution. Factors like location, operating costs, market demand, and efficient production processes all play a significant role in determining profitability. It’s essential to conduct thorough research and create a solid business plan to maximize profits in the sawmill industry.

What Is Needed to Start a Sawmill?

Starting a sawmill requires several key components to be successful. You’ll need the right equipment, such as a sawing machine, drying kiln, edger, and other necessary tools for processing lumber.

Additionally, obtaining permits and licenses, securing a suitable location with access to timber resources, hiring skilled workers, developing a marketing strategy, and ensuring compliance with safety regulations are essential steps to start a sawmill operation successfully.

Is It Cheaper to Mill Your Own Lumber?

Milling your own lumber can indeed be cheaper in some cases compared to purchasing pre-milled wood from lumberyards or suppliers. By cutting out the middleman and processing your own logs into lumber, you can save on costs associated with transportation, markup prices, and potentially have access to unique wood species or custom sizing options not readily available commercially.

However, it’s crucial to consider factors like equipment maintenance expenses, labor costs, time investment, and the volume of wood needed before deciding if milling your lumber is cost-effective for your specific needs.

Hi everyone! I’m a woodworker and blogger, and this is my woodworking blog. In my blog, I share tips and tricks for woodworkers of all skill levels, as well as project ideas that you can try yourself.

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Home » Moisture Meters » Wood Division Knowledge Base » How to Start a Successful Small to Medium Sawmilling Business

How to Start a Successful Small to Medium Sawmilling Business

Evaluating the local species that will be available to you is a key aspect for deciding what kind of a mill you will be.

Whether in an urban or rural environment, people are making money starting a sawmill business.

Some fell into the sawmilling business because they started milling their wood to cut costs. Others have more personal motivations, like wanting to work outside or dedicating themselves to conservation.

Whatever your reasons might be, the milling business is like any other; you have to look before you leap if you want to set yourself up for long-term success. Otherwise, the day-in, day-out workload could overwhelm you, and your new sawmill might end up unused.

Since we want you and your business to succeed, we’ve gathered a list of things to consider when starting up a sawmilling business.

Understanding the challenges of operating a sawmill

Opening a new business, regardless of industry, is always a risk. We can’t cover all the challenges and risks of opening a sawmilling business, but here are some common ones to think about:

Managing capital and cash flow

Not having enough working capital—or poorly managing cash flow—is one of the biggest drivers in small businesses closing.

You can risk your entire operation if you don’t have enough operating capital to cover your costs while experiencing limited or no cash flow. In other words, don’t plan on immediate success to cover your equipment leasing or loan costs.

Gathering timber

If a couple of neighbors or local farms let you haul timber off their property for free, you might be tempted to open a professional sawmill. But wait just a second. That’s great that they let you take the wood, but free timber is never a sustainable source.

Buying timber will be one of your largest ongoing costs. Identify alternate sources with pricing, so you know your options and timber costs going in.

Giving up your day job

It’s very common to start running your sawmill as a part-time opportunity.

For many, this is just a smart, conservative approach. It lets you build experience and manage expenses without overextending yourself.

One of the challenges of operating a mill is the large, ongoing cost of purchasing the timber.

If you feel like you’re ready to make sawmilling your primary means of support, be sure you have a solid, realistic business plan. And it is recommended that you have at least a year’s worth of operating capital on hand.

Crunching the numbers

Sure, you’re not thinking about opening a sawmill because you love math.

Even so, you want to have a detailed accounting of your costs and a conservative projection of your revenue, and then see how things line up. A lot of your decisions will be based on how each of your choices impacts your numbers.

What sort of lumber mill do you want to be?

Think of a new restaurant.

The cook doesn’t open his doors to cook up whatever he feels like each day. No, he details precisely what he wants to offer and to whom.

It’s the same for a sawmill business—especially for a small or medium-sized mill that can’t compete with the large industrial sawmill cutting commodity boards. But if you’re in a remote area with a robust, local construction industry, maybe you can succeed. Either way, the point is to first assess your local market. What it offers and what it needs, and then drill down on your niche.

What local wood species are available? Are there species that people can use to build homes or outbuildings? Perhaps local species that are in demand with artisans and furniture makers?

More specialized work requires more specialized sawmills, blades, and skills, which will increase your initial costs. If you’re the only mill that can handle large lumber, then it is worth it to invest in a small sawmill. Having a specialty doesn’t mean you can’t mill common lumber output, like studs and support beams. However, specialties make marketing easier and often allow for higher margin work.

When you offer a niche product or service, that’ll likely be the key to early success.

What scope of services will you offer?

From a revenue perspective, a sawmill has two primary variables: yield and added-value services.

Yield is the number of saleable boards you get from the lumber you mill. The most common pricing method is charging by the board foot , which puts the burden on you to mill the wood efficiently. However, how much you charge per board foot also depends on the grade of the wood , including how far down the processing line you’ve taken it.

For example, you can sell your cut wood green, or you can dry it first. Drying takes time and space, but if you use an accurate moisture meter that provides calibrated readings of the moisture content in each slab, you can sell the wood at a higher grade—which means higher prices—when it’s dried properly.

Should you be a portable sawmill or a stationary sawmill?

Many small sawmills get started by the weekend hobbyist who is experienced working with a portable sawmill. From there, it seems a natural step to take the portable band sawmill onto other people’s properties and complete a job for them.

But, of course, trade-offs exist between acting as a portable mill or working as a stationary operation.

Pros of operating a portable sawmill:

• No log transportation costs since you’re bringing the portable sawmill to the site.
• No need for large amounts of land to manage the wood.
• Lower initial cost for portable sawmills, which allows you to also buy specialty attachments to produce more specialty cuts.
• An ideal entry point into the business for someone who already owns a portable sawmill and wants to start doing seasonal work.

Pros of operating a stationary sawmill:

• Easier to add mobile sawmill services as an additional service, than for a portable outfit to decide to add a stationary sawmill.
• You have time and space to dry the wood for higher resale value.

Equipment you need for milling wood

There are various types of sawmills: From chainsaw mills to manual portable band sawmills, or circular saws to vertical milling machines.

The sawmill you’ll need depends on the scope of operations, the volume of wood you expect to cut daily, and the types of lumber and cutting you want to do.

Having decided the type of sawmill you want, you’ll also want to consider other equipment needs based on your scope of operations.

The bare minimum for just getting started

If you want the lowest overhead to start turning trees into money, this is the bare bones list of what you’ll need:

• Single portable sawmill
• A truck or tractor that can haul both the portable sawmill and your lumber around
• Trash bin for the wood waste
• Cant hook to move logs around
• Wood storage options
• Fuel reserves for your sawmill
• Protection wear, like steel-toed boots, gloves, eye-and-ear protection, and a hard hat
• Fire extinguisher and emergency first-aid kit
• Kilns come in a range of styles and prices, including low-cost solar kilns. You can even build your own solar kiln. Learn more about kiln drying here.
• Protection from the elements

For good airflow when drying wood, it is always recommended that you sticker stack your boards.

Let’s talk about “Protection from the elements” a bit.

The cheapest option to protect your wood from rain and snow is just draping some tarps over it, but the right way to do it is this: Sticker stack the wood.

Concrete blocks and “sticker stacks” keep the wood off the ground and get airflow between boards. You will also need some sheet metal roofing— here’s a full guide on storing wood .

And finally, get yourself a high-quality moisture meter to monitor and ensure moisture quality control. There are also stack probe sensors you can use to measure moisture deep into your wood stacks.

Value-add equipment:

Once you have the basics, you might look into these tools:

• Extra blades and spare parts to avoid prolonged downtime when something goes wrong with any of your sawmills
• Any specialty blades you need for edging and trimming

Equipment to add to be a midsize sawmill:

An accurate moisture meter that provides calibrated readings of the wood’s moisture content is an important tool to ensure that the wood is dried properly.

When you start ramping up operations, everything needs to grow a bit bigger to accommodate the larger volumes of wood that you’ll be managing at various stages in the milling process. So the first thing you’ll need is land to put it on.

Here’s what comes after that:

• Forklift and other support equipment, like loaders, roller tables, and log decks, to move, sort, and store wood
• Trailer beds and winches for the trucks moving the wood around
• Chippers and bins
• In-kiln moisture meter to monitor the wood’s moisture content as it drys
• Handheld moisture meters to quickly check the dryness of the wood and find “trouble spots”
• Edgebanders
• Finishing and sanding equipment
• Shavers and grinders

Putting it all together

Running a profitable sawmill takes planning and patience. But with the right tools and the right approach, you can join the ranks of those making money in the sawmilling business.

Best of luck as you venture out.

As Sales Manager for Wagner Meters, Ron has more than 35 years of experience with instrumentation and measurement systems in different industries.  In previous positions, he has served as Regional Sales Manager, Product and Projects Manager, and Sales Manager for manufacturers involved in measurement instrumentation.

Thanks Ron. I had a lot of those same thoughts when deciding how and which direction to go with my very basic mill.

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Making Money with a Sawmill Business

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How to Make Money With a Portable Sawmill Business: Proven Strategies for Success

To make money with a portable sawmill business, you need a clear business plan with a budget for equipment and operating costs. Starting a portable sawmill business can be a rewarding and profitable venture if done right.

A portable sawmill gives you a ready supply of lumber, and considering lumber prices, it can quickly pay for itself. With the right equipment and reliable support equipment, you can provide a source of wood for your own projects and also start a side business selling lumber.

We will explore the steps to starting a successful portable sawmill business, including tips on equipment selection, pricing, and marketing strategies.

Table of Contents

Building A Successful Portable Sawmill Business

Building a successful portable sawmill business requires careful consideration of several key factors. One of the first things to consider is choosing the right equipment for your sawmill business. Investing in good, reliable equipment that can grow with your business is essential. This includes not only the sawmill itself but also support equipment such as chain saws.

Understanding the market demand for your sawmill products is also crucial. Conduct research to determine what types of products are in demand and tailor your business accordingly. This will help ensure a steady stream of customers and profitability.

In addition, developing a clear business plan is essential for success. This plan should outline your goals, target market, pricing strategy, and marketing efforts. It will serve as a roadmap for your business and help guide your decision-making.

By carefully considering these factors and implementing a well-thought-out plan, you can start and grow a profitable portable sawmill business.

Finding Customers For Your Portable Sawmill Business

Looking to make money with a portable sawmill business? With a clear business plan, reliable equipment, and a budget in place, starting a portable sawmill business can be a profitable venture, providing a source of wood for projects and potentially even a side business.

Identifying Potential Customers For Your Sawmill Products

Starting a portable sawmill business can be a rewarding and profitable venture. However, there are a few things to keep in mind when starting out. First, it is important to have a clear business plan in place, including a budget for equipment and operating costs. Once you have your sawmill up and running, your next step is to identify potential customers for your sawmill products.

To attract customers to your portable sawmill business, it is crucial to implement effective marketing strategies. Utilize online platforms such as social media and create a professional website to showcase your products and services. Additionally, consider networking with local construction companies, furniture makers, and individuals interested in woodworking.

Building relationships with your customers is key to maintaining their loyalty. Provide exceptional customer service and offer personalized recommendations based on their specific needs. This will help establish trust and encourage repeat business.

Maximizing Profitability In Your Portable Sawmill Business

Starting a portable sawmill business can be a rewarding and profitable venture. However, there are a few things to keep in mind when starting out. First, it is important to have a clear business plan in place, including a budget for equipment and operating costs. This will help you set realistic goals and track your progress. Additionally, streamlining operations to reduce costs and increase efficiency can greatly impact your profitability. Investing in good, reliable equipment that can grow with your business is essential. Remember to also consider support equipment such as chain saws. Adding value to your sawmill products through additional services or customization options is another way to maximize profit margins. Lastly, developing effective pricing strategies, taking into account factors such as market demand and competition, can help ensure you are charging the right price for your products. With careful planning and strategic decision-making, a portable sawmill business can be a lucrative opportunity.

Expanding Your Portable Sawmill Business

Challenges And Solutions For Running A Portable Sawmill Business

Starting a portable sawmill business can be a rewarding and profitable venture. However, there are a few challenges that you may face along the way. One of the major challenges is dealing with competition in the sawmill industry. With the increasing demand for lumber, more and more entrepreneurs are entering the market. To overcome this challenge, it is important to differentiate your business by offering unique services or products. Additionally, managing the logistical challenges of operating a portable sawmill business can be daunting. This involves ensuring that you have reliable equipment and support equipment. It is also important to stay updated with the latest market trends and adapt to changes accordingly. By overcoming these challenges and consistently providing quality products and services, you can make a profitable business out of a portable sawmill.

Credit: www.frontiersawmills.com

Frequently Asked Questions Of How To Make Money With A Portable Sawmill Business

Is owning a portable sawmill profitable.

Yes, owning a portable sawmill can be profitable. Starting a portable sawmill business can be a rewarding and lucrative venture. With a clear business plan and budget for equipment and operating costs, you can make money by providing a source of wood for your own projects and potentially having a side business.

Can You Make Any Money With A Portable Sawmill?

Yes, it is possible to make money with a portable sawmill. It can be a profitable venture, especially if you have a clear business plan and budget for equipment and operating costs. Portable sawmills provide a source of wood for your own projects and also offer the opportunity for a side business.

Is A Portable Sawmill Worth It?

Yes, a portable sawmill can be worth it. It provides a source of wood for your own projects and can be a profitable side business. With a clear business plan and budget, it can be a rewarding and lucrative venture.

A portable sawmill gives you access to free lumber, which can quickly pay for itself.

Will A Saw Mill Pay For Itself?

Yes, a sawmill can pay for itself because it provides a ready supply of lumber, which can save money on purchasing lumber and potentially generate income from selling the milled wood.

Starting a portable sawmill business can be a profitable venture, especially when approached with a clear business plan. With the right equipment and budget in place, you can turn your love for woodworking into a lucrative opportunity. Owning a portable sawmill allows you to have a steady supply of lumber at your disposal, saving on costs and potentially traveling to different locations for more business opportunities.

So, if you’re passionate about woodworking and ready to make money, starting a portable sawmill business is definitely worth considering.

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How to Start a Successful Weekend Sawmill Business

• December 29, 2020

Vince Antonicelli got laid off so he started a successful weekend sawing business that’s simple, clean, and makes good money. Customers cut their own trees and stack the logs. Vince shows up with his TimberKing, saws lumber, and drives home with a check!

Vince Antonichelli is a suburban sawyer. Most weekends, he saws logs into lumber for homeowners in suburban communities within 50 or 60 miles from his home. “A good weekend is several small sawing jobs,” he says.

“I got introduced to sawmilling when I was a kid. We took logs from a farm to a mill where I watched them get sawn into lumber. It was amazing to see. Decades later, I bought my first sawmill, a TimberKing 1600. I’d gotten laid off from my job as an engineer and used my severance to buy the mill. I figured it would be something to do besides getting welfare. Later, I got rehired by the same company but I’m still running a custom sawmill business on weekends.

Vince tows his TimberKing to the job site. Homeowners gather to watch Vince turn their logs into lumber.

Article: you can make good money sawing lumber

I read an article in Fine Woodworking that said you can make decent money sawing hardwoods into lumber for others. And I saw an article by a guy who recommended getting a mill that’s simple and easy to maintain. TimberKing is very simple, very well built. I went to an open house at a TimberKing dealer to see one in operation.  

I like TimberKing’s design because it’s a horizontal bandsaw run by hydraulics. It’s built like a tank and I love the simplicity of it. And working with the guys at TimberKing has been good.

Vince does no tree felling or log stacking

My customers include a lot of engineers, small scale home woodworkers, and people looking to maybe make a special table from a favorite tree. 

I don’t do any felling – my customers cut and stack the logs. I tow in the mill and saw them. I don’t mill at my home, it’s all at customers’ places. I joke with them, ‘I come to your house and make a mess and leave with a check.’ 

When I got the 1600, I expected to get logs only 16” to 18” diameter but I got logs 30” diameter and 12’ to 15’ long. I needed a bigger mill and traded up to the TimberKing 2000. 

LEARN MORE NOW

$100 an hour

I charge $100 an hour with a two-hour minimum. That includes travel from my home to theirs and back home again. These are ‘urban logs’ and I sometimes hit nails. I don’t nickel-and-dime customers but if I hit many nails, I ask them to compensate me for blades. There’s never any pushback on that.

What do you see here? For most folks, this is just a pile of boards. But if you’re a D-I-Y’er, you’re probably thinking, “Hey, just think what I could build with material like that.”

I work a regular job and a side job during the week and saw lumber for others on the weekends. A good weekend for me is a lot of small sawing jobs in different suburbs within 50 or 60 miles of my home. These are usually small jobs people can’t really take to a commercial mill so that’s my niche. I’m usually scheduling work a month out.

Side business in sawblades

A few years ago, the guy who sharpened my blades went out of business. So I took over his business and became a dealer for several blade manufacturers. I have 500 or so blade customers. (Editor’s note: one of Vince’s sawblade customers wrote on Facebook, “Vince, you put together a heck of a blade! Ran this one through 16 nails before it finally stopped sawing. I’ll definitely be ordering again soon!”

All in a day’s work for Vince and his TimberKing sawing business

These days, I work at my engineering job in the mornings, work on my blade business in the afternoons, and saw on weekends year round except winter. Business is growing.

Future plans? It’s hard to leave a full-time job with a steady paycheck. I’ll keep sawing and selling sawblades. I may get into hardwood lumber sales – logs are inexpensive these days.

I do some woodworking myself. I have a Woodmaster planer , a jointer, and a small wood shop. I got an email from Woodmaster that a customer had returned a planer and they gave me a good deal on it.

Find a good niche and good pricing

Here’s my advice for others considering doing on-site custom sawing like I’m doing. Start small with low prices and learn where the market goes. See what your expenses are – insurance, fuel, your drive time, that sort of thing. Learn the market and find a good niche and a good price. I started at $50 an hour and worked up to $100.

My customers sometimes say, ‘Now I have too much lumber, what do I do with it all?’ I tell them to put it on Craigslist. Sometimes they’ll ask me, ‘Is that all you want for all your work?’

TimberKing’s a great machine and I’m very happy with it.”

— Vince Antonicelli, TimberKing 2000 Owner, Despatch Custom Milling , Rochester NY

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Profit with a Portable Sawmill Business

Learn how to make a profit with a portable sawmill business for your homestead.

Dreaming of a new home or barn you can’t quite afford? If you cut your own lumber using a portable sawmill, you could save enough to bring the project within reach. And you can use the mill to develop a business custom-cutting lumber or producing other wood products. (Or, after you’ve cut all the lumber you need, you could sell the mill.)

This special section outlines how to choose and use a portable mill to create value-added lumber and other products. Even if you don’t have your own forest, you can salvage storm-damaged trees or harvest trees being removed when land is cleared for construction or farming (see “ Woodworkers Recycle Storm-Damaged and Bulldozed Logs “).

When it comes to making money from lumber, it’s all about value added,” says Michael Best. “The further you take wood from a tree to a finished product, the more valuable it is.”

Best is the executive director of the nonprofit Sustainable Mountain Agricultural Center near Berea, Kentucky. SMAC’s mission is to demonstrate that sustainable agriculture is possible on small farms. “Farmers can make enough profit to avoid working outside the farm if they utilize the whole farm, including woodlots.”

Initially, SMAC used its manually operated Wood-Mizer LT40 portable sawmill for on-farm use, cutting trees for tomato stakes, barn hoards and racks.

Will Johnson, president of TimberKing, a sawmill manufacturer, says about half of sawmill buyers get one for their own use. “Younger customers especially tend to buy a mill because they have one or two big projects in mind, and then get into custom cutting or into developing niche markets — which is where the real money is.” Some niche markets are particularly valuable, he says. “If you find the right niche, such as cutting beams for custom homes, you can pay for the saw with just one or two jobs..

SMAC board member Carl Kilbourne, a former tree farmer and lumber dealer, was interested in the value-added aspect of turning hardwoods, which are abundant in the mountain regions of the south, into valuable kiln-dried lumber.

He found tree farming and managing small woodlots frustrating because timber cruisers are not interested in buying small, scattered stands of trees. And, he says, even if hardwood trees were cut, commercial wood-kiln operators were only interested in processing large quantities of lumber, making it inconvenient and expensive to kiln-dry small batches.

“About a decade ago,” he says, “I suddenly realized that the development of the one-man band sawmill and the inexpensive solar kiln were the major breakthroughs farmers with woodlots needed to harvest their valuable hardwood trees.”

Kilbourne had more in mind than making small stands of hardwoods profitable. He wanted harvesting done in a manner that would improve, rather than degrade, the woodlots, turning them into self-sustaining crops. This philosophy ties right in with SMAC’s mission.

Initially, Best hauled the portable sawmill to job sites, cutting lumber on either a per-board-foot or a by-the-hour basis. But he soon went to a stationary- setup at the SMAC farm. There are several reasons, he says, why this makes sense.

To price a job you have to see it, says Best, because of on-site concerns, such as safety issues, availability of bathroom facilities and the general condition of the work area. “Don’t underplay that,” he says. “In terms of money, log handling can make or break a job.”

Often there isn’t enough work to justify the trip. “Most cutting around here is either for people who have one, two or three logs, or for people who are buying logs. Neither of these provides an economic incentive to do most on-site work.” For a full day’s cutting, he says, it pays to haul the mill to the job site. Otherwise he has customers bring the logs to him.

“Most people start out using the portability function, but then go to a stationary setup for better control, safety and cleanliness of the logs,” Johnson says.

Best designed SMAC’s setup to combine the physical benefits of a raised-bed saw with the log-handling benefits of a ground-level bed. The saw is nested in a pit-like depression. The saw bed is even with the ground. Logs are then easily rolled over the ground onto the bed.

Before moving them, the logs are cleaned with a high-pressure hose. “There’s nothing like crusted mud and imbedded forest duff to dull a blade,” says Best. “And the time and cost of changing blades can cut into your profits.”

Kilns are the next step in value added logging. Nothing adds profits to wood as dramatically as kiln-drying. “Typically,” Best says, “simple cutting of lumber brings in about 16 cents per board foot. Kiln-drying that wood can add 20 cents to $1 per board foot, depending on the species and how thick you cut it.” And because you can produce the same volume with less work, he says, the thicker the boards, the higher the profits.

SMAC used Wood-Mizer kits to build its own solar kilns, using its saw to cut all the structural members from its own woodlot. “Ironically,” Best says, “when we checked with the folks at WoodMizer, we were the first people to actually cut our own dimensional lumber for the kiln.”

SMAC built two 3,000-board-foot-ca pacify kilns. “They cost $4,300 each in materials to erect, plus labor, and take about three weeks to build with two semi-skilled builders,” Best says. “After that, they run themselves.” The only other equipment necessary, a moisture gauge, tells when to increase the fresh air ventilation and when the wood is dry enough to remove.

Although cutting is the first step in converting trees to value-added lumber, it’s also the one that produces the lowest net profit. “Niche marketing is where the money is,” Best says. Understanding the preferences and buying habits of potential buyers is essential to developing your markets. “It’s not the act of cutting that makes you money. It’s knowing how to cut it for people, and who to cut it for.”

Rod Wilcox of Minong, Wisconsin, couldn’t agree more. Unlike SMAC, which does strictly custom cutting Wilcox took another route when he started his sawmill business after 25 years as a logger. “About 90 percent of our business is cutting lumber from logs we buy.” This, he says, is how you really serve niche markets. “We buy logs, saw them into boards and raise the value by getting closer to an end result. Using a niche marketing system, every part of the wood is used.”

Before starting his business, he and his wife got phone directories from cities within 300 miles and called every company they could find that used wood products. “They were almost all real responsive, and were looking for stuff we could provide,” he remembers. Wilcox also thought he might be able to sell wood blocks to carving-supply houses. “So I bought some carving magazines and started making calls. Most of the companies already had suppliers, but that day we became the supplier to two of them.”

Wilcox’s experience as a logger developed into another niche market: cutting staves for a barrel maker. “We used to sell them logs when I was logging,” he says. “When they shut down their own sawing operation, they called me.” Cutting staves led to the purchase of a kiln, which, in turn, opened up additional markets.

Diversification, Wilcox says, is a key to success. “We make enough products now that if the flooring or paneling market goes soft, we make it up with wood for cribbage boards or with handles for barbecue grills.”

You have to learn the markets, he says. When Wilcox first started, he bought some aspens to practice on, and learned how to use his new TimberKing B-20. Figuring there was always a market for it, he fumed the logs into tongue-and-groove paneling. But aspen is too plain: People prefer paneling with some pattern in the grain. The aspen wood just sat. Finally he ran an ad, pricing the boards to sell.

“A couple drove up and bought the whole load to use in their business making wine racks,” he says. At the time, clear aspen sold for $1.40 per board foot in lumber stores. “At our price of 75 cents, they could afford to cut off the tongues and grooves, and still be ahead of the game. If I had researched the markets first,” he says. “I could have saved the labor of cutting the tongues and grooves, and sold the boards for $1.40.

The Wilcoxs reach out several hundred miles developing niche markets, but according to SMAC’s Michael Best, most markets are generally within a hundred miles of the sawmill.

In conjunction with the University of Tennessee’s Agricultural Development Center and funded through the U.S. Department of Agriculture’s Sustainable Research and Education Program, SMAC recently conducted a survey to determine woodworkers’ preferences and buying habits. Anyone contemplating making money with portable sawmills should read the study. Copies are available from the Sustainable Mountain Agricultural Center; Berea, KY; www.heirlooms.org.

“How To Set Up and Run A Profitable Custom Sawing Business” is another great resource that covers everything from figuring profitability to how to write a contract. It’s available from TimberKing; Kansas City, MO; www.timberking.com.

Sawmill Resources

Bailey’s Laytonville, CA www.bbaileys.com (circular)

Baker Products Ellington, MO www.baker-online.com

Better Built Corp. Wilmington, MA www.ripsaw.com (hybrid)

Cook’s Sawmill Manufacturing Newton, AL www.cookssaw.com

Dave’s Welding & Fabrication Troy, MT www.timbergrizz.com

Granberg International Vallejo, CA www.granberg.com (chain)

Hud-Son Forest Equipment Barneveld, NY www.hud-son.com

Linn Lumber Mills Sweet Home, OR www.linnlumber.com

Logosol Inc. Madison, MS www.logosol.com (hybrid)

Log-Master Nacogdoches,TX www.logmaster.com

Meadows Mills N. Wilkesboro, NC www.meadowsmills.com (circular)

Mighty Mite Portland, OR www.mightymitesawmills.com (circular)

Mobile Manufacturing Co. Troutdale, OR www.mobilemfg.com (circular)

Norwood Industries Buffalo, NY www.norwoodindustries.com

Quality Manufacturing Co. Rome, NY www.bandmill.com

Select Sawmill Co. 17 Plantagenet, Ontario K0B1 LO www.selectsawmill.com

TA. Schmid Co. W. Edmeston, NY www.taschmid.com

Thomas Bandsaw Mitts Brooks, ME www.thomasbandsawmills.com

Tilton Equipment Co. Rye, NH www.tiltonequipment.com (chain)

TimberKin Kansas City, MO www.timberking.com

Turner Band Sawmills Oxford, NY www.turnermills.com

Wizard Engineering Sheep Ranch, CA

Wood-Mizer Products Indianapolis, IN www.wood-mizer.com

Except when noted, all companies listed above offer band sawmills.

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Timber Harvesting Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Agriculture Sector » Agro-Allied

Are you about starting a timber harvesting business? If YES, here is a complete sample timber harvesting business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a timber harvesting business. We also took it further by analyzing and drafting a sample timber harvesting marketing plan template backed up by actionable guerrilla marketing ideas for timber harvesting companies. So let’s proceed to the business planning section.

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If you are thinking of starting a business with good returns on investment, then one of your best bet is to venture into the logging industry and you just want to concentrate on timber harvesting and supply.

Just like all other investment vehicles, there are potential down sides that you need to look out for if you want to start a timber harvesting and supply business. One of the major risks in the timber harvesting and supply business is deforestation which may attract unfavorable government legislation.

Part of what you need to do to make headway in this line of business is to ensure that you have the required license and permits and you have good business relationship with construction contractors, constructions companies, furniture manufacturers, paper manufacturers and key players in relevant industries.

If you are truly convinced that starting a timber harvesting and supply business is the right business for you to do, then you need to write your own business plan. Below is a sample timber harvesting and supply business plan template that will help you successfully write yours with little or no stress.

A Sample Timber Harvesting Business Plan Template

1. industry overview.

Timber harvesting companies are involved in cutting, skidding, on-site processing, and loading of trees or logs onto trucks or skeleton cars. The trees are then transported as saw logs to cottage companies such as sawmills and pulp mills et al.

It is important to state that the logging industry that timber harvesting business is a part of does not include businesses that are involved in breeding, planting or growing trees. Companies that provide these services are classified under the Timber Services industry.

Timber harvesting is indeed a big business and should not be handled with levity; little wonder there is a university degree dedicated to forestry. So, it is important that you acquire relevant training and education before launching your own timber harvesting company.

Part of what you need to do is to enroll for a degree or diploma in forestry and upon graduation; you can apply and work with a logging company or the forestry ministry in your country.

The truth is that when you are properly educated, it makes it easier for you to follow best practices in conducting your business. As a matter of fact, there are laws regulating the logging industry and it is your responsibility to ensure that you abide by them.

If you are a close watcher of the logging industry, you will agree that over the past five years, the industry has been in recovery mode since construction activities have been climbing upward from recessionary low point, driving industry revenue.

The demand conditions for the industry are expected to continue improving going forward, as recovery in the residential construction market is forecast to strengthen as home improvement spending rises. On the other hand, paper manufacturing is forecast to slow due to the trend toward electronic communication, and of course reducing demand from key industrial players.

The logging industry that timber harvesting business is a subset of is indeed a large industry and pretty much active in a lot of countries.

Statistics has it that in the united states of America alone, there are about 49,828 registered and licensed logging companies scattered all across the United States responsible for employing about 93,353 and the industry rakes in a whooping sum of $16 billion annually.

The industry is projected to grow at 2.3 percent annual growth within 2011 and 2016. It is important to state that Weyerhaeuser has the lion market share of the available market in the industry.

A recent report published by IBISWORLD shows that the logging industry has medium barriers to entry, and this is due to the various regulations and policies that logging companies must comply with as well as the high level of competition within the industry.

The report further stated that industry regulations primarily focus on environmental factors that include: The Clean Air Act, the Clean Water Act, the Endangered Species Act and the Toxic Substances Control Act, which regulate the use of fire, chemicals and timber extraction in timber tracts.

The report also stated that despite the fact that there is a high level of regulation, the industry also benefits from government assistance provided by the US Forest Service, the Sustainable Forestry Implementation Committee and the National Resources Conservation Service, as well as some protectionist trade policies.

Some of the factors that encourage entrepreneurs to start their own timber harvesting company could be that the business is a profitable business. Even though the business is not a Green business, the truth is that the business will continue to remain relevant as long as logs and other products manufactured by loggers are still in use in our world.

It is important to state that the logging industry is highly regulated in the United States of America and anyone who aspires to start a timber harvesting company must apply and obtain a license before they can legally operate in the industry.

2. Executive Summary

Bradford Lugard™ Timber Harvesting & Processing, Inc. is a registered timber harvesting and processing business that will be located in Des Moines – Iowa. We have been able to secure all the needed state and federal licenses and permits that will enable us operate the business in Des Moines – Iowa.

Bradford Lugard™ Timber Harvesting & Processing, Inc. will be involved in cutting, skidding, on-site processing, and loading of trees or logs onto trucks or skeleton cars. We are set to service a wide range of clientele in and around Des Moines – Iowa.

We are aware that there are several timber harvesting companies all around Des Moines – Iowa, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to be well positioned to favorably compete with all our competitors.

Bradford Lugard™ Timber Harvesting & Processing, Inc. will ensure that all our customers are given first class treatment whenever they contact us or patronize our services.

We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large they may grow to. We will ensure that we get our customers involved in the selection of brands that will be on our store and also when making some business decisions.

Bradford Lugard™ Timber Harvesting & Processing, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely whenever they patronize our products.

Bradford Lugard™ Timber Harvesting & Processing, Inc. is a family business that is owned by Bradford Lugard and his immediate family members. Bradford Lugard has a B.Sc. in Forestry, with over 5 years’ experience in the logging industry, working for some of the leading brands in the United States.

3. Our Products and Services

Bradford Lugard™ Timber Harvesting & Processing, Inc. is in the logging industry to service a wide range of clients and of course to make profits, which is why we will ensure that we go all the way to service a wide range of clients in the United States.

We will do all that is permitted by the law of the United States to achieve our aim and ambition of starting the business. Our product offerings are listed below;

• Cutting, skidding, on-site processing, and selling/supply of logs

4. Our Mission and Vision Statement

• Our vision is to become the leading brand in the timber harvesting industry in Des Moines – Iowa and with license to operate all across the United States of America.
• Our mission is to establish a world – class timber harvesting and processing business that will work with clients all across the United States of America via supply of processed timber.

Our Business Structure

At Bradford Lugard™ Timber Harvesting & Processing, Inc., our business structure will be designed in such a way that it can accommodate both full-time and part-time staff.

We intend starting our timber harvesting and processing company with a handful of full time employees (professional loggers and truck drivers); and some of the available timber cutting and processing machine operators and truck driving roles fill be handled by qualified contract operators. Adequate packages have been prepared for all our full-time employees.

As a means of maximizing operational cost, we will contract the maintenance of all our timber cutting and processing machines and trucks to a service provider, we don’t intend to maintain a very large overhead from the onset. But as soon as the business grows and stabilizes, we will assemble our own professional in-house maintenance team.

Below is the business structure and the roles that will be available at Bradford Lugard™ Timber Harvesting & Processing, Inc.;

• Chief Operating Officer (Owner)

Admin and HR Manager

Transport and Logistics Manager

• Business Developer

Timber Harvesting and Processing Machine Operators

• Professional Truck Drivers
• Client Service Executive/Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Accountable for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs
• Defines job positions for recruitment and managing interviewing process
• Carries out induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversee the smooth running of the daily office activities.

Sales and Marketing Manager

• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Identify, prioritize, and reach out to new partners, and business opportunities et al
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company
• Accountable for coordinating truck drivers, vehicles, loads and journeys
• In control of operating IT systems for the organization
• In charge of negotiating contracts for the organization
• Responsible for developing and confirming schedules
• Responsible for planning for and negotiating technical difficulties
• Responsible for implementing environmental and safety standards
• Handles the planning routes and load scheduling for multi-drop deliveries.
• Handles booking in deliveries and liaising with customers.
• In charge of allocating and recording resources and movements on the transport planning system.
• Responsible for ensuring all partners in the supply chain are working effectively and efficiently to ensure smooth operations.
• Responsible for communicating effectively with clients and responding to their requirements.
• In charge of directing all transportation activities.
• Responsible for developing transportation relationships.
• Responsible for monitoring transport costs.
• In charge of negotiating and bargaining transportation prices.
• Responsible for dealing with the effects of congestion.
• Responsible for confronting climate change issues by implementing transport strategies and monitoring an organization’s carbon footprint.
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managers with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company
• Responsible for cutting, skidding and on-site processing of logs
• Assist in loading and unloading timbers

Truck Drivers

• Responsible for transporting timbers
• Assists in loading and unloading timbers
• Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
• Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment, such as hazardous material placards.
• Inspects vehicles for mechanical items and safety issues and perform preventative maintenance
• Complies with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures

Client Service Executive

• Welcomes/receive clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with parents and students on the phone, uses every opportunity to build clients’ interest in the organizations’ products and services
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
• Receives parcels/documents for Bradford Lugard™ Timber Harvesting & Processing, Inc. and distribute mails in the organization
• Handles any other duties as assigned by HR and Admin Manager or Transport & Logistic Manager.

6. SWOT Analysis

Our intention of starting Bradford Lugard™ Timber Harvesting & Processing, Inc. in Des Moines – Iowa is to test run the business for a period of 2 to 4 years to know if we will invest more money and expand the business all around in the United States of America.

We are quite aware that there are several timber harvesting and processing companies scattered all over the United States of America and even in the same location where we intend starting ours, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.

Bradford Lugard™ Timber Harvesting & Processing, Inc. employed the services of an expert HR and Business Analyst with bias in startups to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.

This is the summary of the SWOT analysis that was conducted for Bradford Lugard™ Timber Harvesting & Processing, Inc.;

Our core strength lies in the power of our team; our workforce. We have a team that can go all the way to give our clients value for their money; a team that are trained and equipped to pay attention to details and to deliver excellent jobs.

We are well positioned and we have standard and reliable timber harvesting and processing machines and trucks. We know we will attract loads of clients from the first day we open our doors for business.

Our weakness could be lack of finance, high debt burden, cost structure, lack of scale compared to our peers who have already gained ground in the timber harvesting cum logging industry.

• Opportunities:

The opportunities that are available to us as a timber harvesting company operating in the United States of America are online market, new services, new technology, and of course the opening of new markets within our target locations.

Some of the threats that we are likely going to face are mature markets, bad economy (economy downturn), stiff competition, volatile costs, and rising fuel prices. Basically, just like any other business, one of the major threats that we are likely going to face is economic downturn.

It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a timber harvesting and processing company in same location where ours is located. unfavorable government policies can also pose a major threat to businesses such as ours.

7. MARKET ANALYSIS

• Market Trends

The market trend as it involves the timber harvesting industry especially in the United States of America is indeed dynamic and at the same time highly competitive and challenging.

But one thing is certain, once a timber harvesting and processing company can gain credibility, it will be much easier for the company to secure permanent deals / contracts with big time construction companies, furniture manufacturers and paper production companies who are always carrying out construction works on a regular basis.

If you are a close observer of the trends in the timber harvesting industry, you will notice that revenue generated by players in the industry has registered a sharp increase over the last half decade. This is supported by the increase in demand from downstream construction industries.

So also, improvement in performance from the industry matched with the rapid expansion in demand for timber in the booming housing market and nonresidential building market in the United States. Going forward, industry revenue is expected to continue growing, albeit at a slower pace.

Another common trend in this industry is that once a timber harvesting and processing company has gained credibility, it is easier for them to go for brand new trucks and timber harvesting and processing machines as against making use of second hand trucks and timber harvesting and processing machines which are usually expensive to maintain.

8. Our Target Market

Our target market are basically construction companies and of course any other company that makes use of timber. We cover both short distance (inter states) and long distance (intra states). We are in business to harvest, processed and supply timbers within the United States.

In other words, our target market is the whole of the United States of America and below is a list of the people and organizations that we have plans to do business with;

• Construction companies
• Paper Pulp companies
• Furniture manufactures
• Cottage companies that make use of processed timber

Our Competitive Advantage

We are aware of the competitive nature of the timber harvesting industry and we are ready to get into the mix and favorably compete with players in the industry. Our major competitive advantage is the vast industry experience and solid reputation of our owner, Bradford Lugard and our management team.

Bradford Lugard™ Timber Harvesting & Processing, Inc. no doubt is a timber harvesting and processing company, which is why we took our time to do a thorough market research and feasibility studies before launching the business.

We were able to highlight some factors that will give us competitive advantage in the marketplace; some of the factors are trust, honesty, good network and excellent relationship management, qualified and experienced management team, robust fleet operations, direct access to forests and construction sites in the United States of America, our size and cost advantage, supply chain, customer loyalty and strong reputation amongst domestic industry players.

Another competitive advantage that we are bringing to the industry is the fact that we have designed our business in such a way that we can comfortably work with both individual clients (contractors) and big construction companies.

Lastly, our employees will be well taken care of and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Bradford Lugard™ Timber Harvesting & Processing, Inc. will ensure that we leverage on our strength and the opportunities available to us in the U.S. to generate enough income that will help us drive the business to stability. We will go all the way to explore every available source of income in the timber harvesting industry.

Below are the sources we intend exploring to generate income for Bradford Lugard™ Timber Harvesting & Processing, Inc.;

• Cutting, skidding, on-site processing, and supply of logs

10. Sales Forecast

One thing is certain; there would always be construction companies and other related businesses that would need the timbers from time to time.

We are well positioned to take on the available market in the United States of America and we are quite optimistic that we will meet our set target of generating enough profits from our first six months of operation and grow our business and our clientele base.

We have been able to critically examine the timber harvesting market in the United States of America, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in the United States of America.

• First Fiscal Year: $350,000
• Second Fiscal Year: $750,000
• Third Fiscal Year: $1,000,000

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above.

So also, there won’t be any major competitor (timber harvesting and processing company) offering same services as we do within the same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

No doubt, networking is an effective way to begin building your client base as a business man or woman and we have plans in place to leverage on all networks. In view of that, we will look out for gatherings where we can network with captain of industries, construction contractors, paper manufacturing companies and furniture manufacturing companies et al.

As a matter of fact, our first port of call will be to connect with the nearest Chamber of Commerce; we are likely going to get our first major deal from them.

At Bradford Lugard™ Timber Harvesting & Processing, Inc. all our employees will be directly or indirectly involved in sales and marketing of our products. We will create provision for our employees to earn commission when they bring in business for the organization.

We will also encourage freelancers to work with us; whenever they refer clients to us they will earn a percentage of the deal as agreed by both parties.

Lastly, we will leverage on the power of the media by advertising our services using both online and offline platforms. We will work hard to ensure that get repeated business from any business deal we execute. In summary, Bradford Lugard™ Timber Harvesting & Processing, Inc. will adopt the following sales and marketing strategies in sourcing for clients for our business;

• Introduce our business by sending introductory letters alongside our brochure to corporate organizations, businesses in the construction industry, paper manufacturers, furniture manufacturers and related industries in Des Moines – Iowa and throughout the United States
• Print handbills about our timber harvesting and processing company and its locations and drop them in public facilities.
• Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get our message across, so that those on the social media or those who read blogs can know where to go when they need the processed timber
• Creating a basic website for our business, so as to give our business an online presence
• Directly market our business.
• Join local timber harvesting and processing company associations and chambers of commerce for industry trends and tips
• Advertise our business in community – based newspapers, local TV and radio stations
• List our business on yellow pages ads (local directories)
• Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Bradford Lugard™ Timber Harvesting & Processing, Inc. has a long – term plan of operating in various locations (major timber sites) in the United States which is why we will deliberately build our brand to be well accepted in Des Moines – Iowa before venturing out to other cities both in the United States of America.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Bradford Lugard™ Timber Harvesting & Processing, Inc.;

• Place adverts on both print (community – based newspapers and magazines) and electronic media platforms
• Sponsor relevant community programs
• Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, et al to promote our brand
• Install our billboards in strategic locations all around Des Moines – Iowa
• Distribute our fliers and handbills in target areas
• Position our Flexi Banners at strategic positions in the location where our photo booths are located.
• Ensure that all our workers wear our branded shirts and all our trucks are well branded with our company’s logo

12. Our Pricing Strategy

Bradford Lugard™ Timber Harvesting & Processing, Inc. has a lease arrangement with various companies and the company’s pricing is based on miles per thousands of tons of processed timbers purchased and transported. We have perfected our plans to charge competitive rates since we have minimal overhead compared to our competition in the industry.

We will ensure that we leverage on price to win over customers; our prices will be affordable and negotiable. The fact that our business door is open to both individuals and corporation organizations means that we will have different price range for different category of clients.

We are aware that government contracts come with a bidding template, we will ensure that we abide by such bidding templates whenever we have the opportunity to bid for government contracts. As the business grows, we will continue to review our pricing system to accommodate a wide range of clientele.

• Payment Options

The payment policy adopted by Bradford Lugard™ Timber Harvesting & Processing, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Bradford Lugard™ Timber Harvesting & Processing, Inc. will make available to her clients;

• Payment via bank transfer
• Payment via credit cards/Point of Sale Machines (POS Machines)
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for timbers purchased without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our processed timber.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.

The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a timber harvesting and processing company; it might differ in other countries due to the value of their money.

When it comes to starting a timber harvesting and processing company, the major areas that you look towards spending the bulk of your cash is in the purchase of standard timber harvesting and processing machines and trucks and of course renting or leasing a facility large enough to accommodate your trucks and processing plant.

Aside from that, you are not expected to spend much except for paying of your employees, maintaining your trucks and fueling. These are the key areas where we will spend our startup capital;

• The total fee for incorporating the Business in the United States of America – $750.
• The budget for liability insurance, permits and license – $2,500
• The amount needed to acquire a suitable office facility with enough parking space for our trucks in Des Moines – Iowa for 6 months (Re – Construction of the facility inclusive) – $40,000.
• The amount required to finance the purchase of the first set of trucks and timber harvesting and processing machines – $200,000
• The cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $5,000
• The cost of accounting software, CRM software and Payroll Software – $3,000
• Other start-up expenses including stationery – $1000
• Phone and Utilities (gas, sewer, water and electric) deposits – ( $3,500 ).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
• The cost of launching our official website – $600
• The amount needed to pay staff for the first 2 months – $20,000
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500

Going by the report from the market research and feasibility studies conducted, we will need about three hundred and fifty thousand ( 350,000 ) U.S. dollars to successfully set up a medium scale but standard timber harvesting and processing company in the United States of America.

Generating Startup Capital for Bradford Lugard™ Timber Harvesting & Processing, Inc.

Bradford Lugard™ Timber Harvesting & Processing, Inc. is a family business that will be owned and managed by Bradford Lugard and his immediate family members. They are the sole financiers of the business which is why they decided to restrict the sourcing of startup capital to just three major sources.

These are the areas we intend generating our startup capital;

• Generate part of the startup capital from personal savings and sale of stocks
• Generate part of the startup capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $100,000 ( Personal savings $80,000 and soft loan from family members $20,000 ) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of any business lies in the number of loyal customers that they have, the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Bradford Lugard™ Timber Harvesting & Processing, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to engage in affordable and efficient timber harvesting, processing and supply services at all times.

Bradford Lugard™ Timber Harvesting & Processing, Inc. will make sure that the right foundation and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Acquiring of trucks and relevant equipment: In progress
• Leasing of Office Facility in Des Moines – Iowa: Completed
• Conducting Feasibility Studies: Completed
• Startup Capital Generation: Completed
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of The Company’s Logo: Completed
• Printing of Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the needed furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with key players in the construction industry, furniture making industry and paper manufacturing industry: In Progress
• Leasing of the first set of timber harvesting and processing machines and trucks: In Progress

It should be noted that there is no special software required to use these templates. All business plans come in Microsoft Word and Microsoft Excel format. Each business plan features:

• Excecutive Summary
• Company and Financing Summary
• Products and Services Overview
• Strategic Analysis with current research!
• Marketing Plan
• Personnel Plan
• 3 Year Advanced Financial Plan
• Expanded Financial Plan with Monthly Financials
• Loan Amortization and ROI Tools
• FREE PowerPoint Presentation for Banks, Investors, or Grant Companies!

1.0 Executive Summary

The purpose of this business plan is to raise $250,000 for the development of a saw milling company while showcasing the expected financials and operations over the next three years. Saw Mill, Inc. (“the Company”) is a New York based corporation that will sell large inventories lumber that are used in conjunction with manufacturing and home building. The Company was founded by John Doe.

1.1 Products and Services

As mentioned above, the business specializes in the sale of lumber to contractors, carpenters, and the general public within New York. After the launching period is complete, Mr. Doe intends to offer direct delivery services of lumber, which will significantly increase the revenues and profitability of the business while providing a value added advantage to the Company’s operations. The third section of the business plan will further describe the produces offered by the Saw Mill.

1.2 The Financing

Mr. Doe is seeking to raise $250,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate. The financing will be used for the following: • Development of the Company’s production location. • Financing for the first six months of operation. • Capital to purchase the Company’s inventory. Mr. Doe will contribute $50,000 to the venture.

1.3 Mission Statement

The Saw Mill’s mission is to become the recognized leader in its targeted market for providing lumber at a low cost.

1.4 Mangement Team

The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the lumber industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.

1.5 Sales Forecasts

Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.

1.6 Expansion Plan

As time progresses, Management may seek to continually increase its manufacturing capacity by either acquiring additional production equipment or developing additional facilities while concurrently acquiring additional saw milling equipment.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

Saw Mill, Inc. The Company is registered as a corporation in the State of New York.

2.2 Required Funds

At this time, the Saw Mill requires $250,000 of debt funds. Below is a breakdown of how these funds will be used:

2.3 Investor Equity

Mr. Doe is not seeking an investment from a third party at this time.

2.4 Management Equity

John Doe owns 100% of the Saw Mill, Inc.

2.5 Exit Strategy

If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Saw Mill. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.

3.0 Products and Services

The business, in its warehouse and milling, will maintain an extensive inventory of wood products for real estate development and carpentry purposes. The Company will provide the following types of wood to its customers: • African Mahogany • Alder • American Cherry • Ash • Black Walnut • Brazilian Cherry • Canarywood • Carribean Rosewood • Cumaru • Gonalco Alves • Honduras Mahogany • Lacewood • Maple • Padouk • Plainsawn Bubinga • Poplar • Quatersawn Bubinga • Quartersawn White Oak • Raintree • Red Oak • Santos Mahogany • Spanish Cedar • Teak • Tiete Rosewood • Wenge • White Oka • Yellowheart • Zebrawood The business will sell lumber on both a wholesale and retail basis directly to contractors and the general public. Management is currently examining the standardized cost of goods markup that Management will employ for sales to contractors and retail sales.

4.0 Strategic and Market Analysis

4.1 Economic Outlook

This section of the analysis will detail the economic climate, the saw milling industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is moderate. The meltdown of the sub prime mortgage market coupled with increasing gas prices has led many people to believe that the US is on the cusp of a double dip economic recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. However, Saw Mills tend to operate with great economic stability as people will continue to purchase these goods in any economic climate.

4.2 Industry Analysis

Within the United States, there are more than 3,800 companies that specialize in the production of wood products (which includes saw milling).. Aggregately, these businesses generate more than $25 billion of revenue per year while providing jobs to more than 110,000 people. Aggregate payrolls in each of the last five years have exceeded $3.5 billion. This is a mature industry, and the excepted future growth rate is expected to mirror that of the general population and economic growth. One of the strong points about this industry is that market agents operate with a strong degree of economic stability as people will continue to require lumber for a number of purposes.

4.3 Customer Profile

It is difficult to determine the average customer profile for Saw Mill, Inc. as the business will sell its lumber products directly to third party distributors and wholesalers that in turn will sell branded or bulk inventories to retail stores or directly to end users. However, based on market research, there are approximately 400 companies that specialize in the retail distribution of lumber and the Company will be able to develop a number of ongoing purchase order relationships with distributors, contractors, and specialty firms throughout the target market.

4.4 Competitive Analysis

This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.

5.0 Marketing Plan

The Saw Mill intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Company.

5.1 Marketing Objectives

• Develop connections with lumber distributors.

• Establish connections with major national and regional retailers that may purchase bulk orders of lumber directly from the Company.

5.2 Marketing Strategies

The marketing required by the Company will be minimal as Saw Mill will not market its products directly to the general public. As stated many times in this business plan, the Company has already begun to secure purchase order relationships that will ensure that the Company can produce and immediately distribute its inventories from the onset of operations. As the business expands, the business may seek to develop relationships with additional distributors of lumber products. In these instances, Management will directly contact other distributors in the industry to discuss how the business can supply them with the raw lumber that they are seeking to distribute directly to end users and retailers. Brochures and other sales literature will be produced to showcase the facility, pricing, and operations of the business when seeking to develop new ongoing purchase order relationships.

5.3 Pricing

In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.

6.0 Organizational Plan and Personnel Summary

6.1 Corporate Organization

6.2 Organizational Budget

6.3 Management Biographies

In this section of the business plan, you should write a two to four paragraph biography about your work experience, your education, and your skill set. For each owner or key employee, you should provide a brief biography in this section.

7.0 Financial Plan

7.1 Underlying Assumptions

• Saw Mill will have an annual revenue growth rate of 7% per year.

• The Owner will acquire $250,000 of debt funds to develop the business.

• The loan will have a 10 year term with a 9% interest rate.

7.2 Sensitivity Analysis

The Company’s revenues are modestly sensitive to changes in the general economy. The lumber products manufactured by the Company are in demand on a year round basis.

7.3 Source of Funds

7.4 General Assumptions

7.5 Profit and Loss Statements 

7.6 Cash Flow Analysis

7.7 Balance Sheet

7.8 General Assumptions

7.9 Business Ratios

Expanded Profit and Loss Statements

Expanded Cash Flow Analysis

Canfor mill closures leave B.C. communities eyeing difficult transitions

Vanderhoof is now pinning its hopes on the transition plans that Canfor and the B.C. government committed to to help with its ambitions to diversify its economy.

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Vanderhoof Mayor Kevin Moutray has watched the deteriorating conditions of B.C.’s forest industry gather like black clouds over the province’s central Interior for months, but it was still a shock to learn that Canfor Corp. will shutter its mill in his town of 4,500.

Canfor mill closures leave B.C. communities eyeing difficult transitions Back to video

“Obviously, 260 direct jobs (lost), plus contractors, is a huge blow to families personally (to) their income,” Moutray said. “And from the municipal taxation side … it’s almost $900,000 (in) taxes that we’ll be missing from the budget.”

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However, “it’s a decision that we have anticipated, (and is the reason) we’ve worked hard on improving livability within the community,” Moutray said.

He added Vanderhoof is now pinning its hopes on the transition plans that Canfor and the B.C. government committed to to help Vanderhoof with its ambitions to diversify its economy.

On Wednesday, Canfor said it will close its Plateau mill in Vanderhoof and its Fort St. John operation, which would eliminate 500 jobs and remove 670 million board feet of annual production capacity.

The company blamed the closures on the challenge of accessing economically viable timber, as well as continuing financial losses and weak lumber markets, but said the final blow was the big increase in U.S. tariffs.

They become the second and third sawmills that Canfor has closed this year and the fourth since the start of 2023, which narrows some of the options for workers looking to transition to new jobs.

Canfor, working with the United Steelworkers, which represents many of its workers, will set up transition offices in both communities to work on “a comprehensive employee adjustment plan,” according to company executive Mina Laudan.

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There “may be opportunities for some employees” to move to other jobs, but “(we) are committed to assisting everyone impacted by this change the best we can,” Laudan, Canfor’s vice-president of corporate affairs, said in an email response to Postmedia questions.

Transition plans will include severance, help for employees to file for employment insurance or access other government services, and information about vacancies elsewhere in Canfor.

With the closures, however, United Steelworkers representative Jeff Bromley said opportunities within the company will be slimmer after the Plateau and Fort St. John mills wind down operations, leaving just its sawmill in Prince George running in northern B.C. Its remaining three mills are in the Kootenays.

“By the end of the year, if this holds out, they’re going to have no other mills in the north and that is an astounding figure for Canfor, which has been around for over 80 years,” Bromley said. “There’s no question, we’re in (an industry) down cycle, in terms of the ability to get a decent price for their products.”

However, he’s pushing government to take away some of the timber harvesting rights that Canfor still holds if “they’re not going to provide a net benefit to the people of B.C. that own the resource.”

Bromley said that the severance provisions in the Steelworkers’ contract are generous enough that employees with service of longer than 30 years or are older than 55 can contemplate transitioning to retirement, especially if they can access transition funding the province has offered in previous rounds of mill closures.

Younger employees, those in their 30s, with less than 15 years of experience, face a more difficult decision, Bromley said.

Those in skilled trades have more transferable skills, he said. Production employees or equipment operators still have options, but many will be in mining where work tends to be in “fly-in-fly-out” operations, he added.

“It’s very difficult to relocate anywhere in B.C. right now because of the mortgage situation,” Bromley said. “Even in central B.C. Having a $500,000 or $600,000 house and then trying to find something in that range in another community, it’s not easy.”

Forest Minister Bruce Ralston said the forest sector is a “foundational part” of the province and the government will work to support local jobs. He added that the province is focused on supporting the affected workers and is also working to increase access to fibre and support for made-in-B.C. wood manufacturing.

In Vanderhoof, Moutray said mining offers some opportunities for transition with Centerra Gold Inc.’s Mount Milligan mine 150 kilometres north of Vanderhoof and Artemis Gold Inc.’s Blackwater mine 108 km to its south.

But Vanderhoof has also been working hard to develop its agricultural sector and build on other value-added manufacturing in the community.

“Vanderhoof is a very resilient, entrepreneurial community and in the long-term economy, I’m sure we will get through this,” Moutray said.

However, a lot of major projects such as pipelines and B.C. Hydro’s Site C dam, are winding up and there are no new projects in the works to fill the void they’re going to leave, which further narrows options for transition, said Joel McKay, president of the Northern Development Initiative Trust.

“We just do not have either the projects in the hopper or the reputation as an attractive jurisdiction for capital (investment),” McKay said. “In the absence of those things, it puts us into a more difficult position.”

With files from The Canadian Press

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Canfor’s decision to close Fort St. John and Plateau sawmills devastating blow to workers and communities

BURNABY, British Columbia, Sept. 05, 2024 (GLOBE NEWSWIRE) -- The United Steelworkers union (USW) Local 1-2017 (Prince George, B.C.), and the USW Wood Council are devastated to learn of Canfor’s sudden decision to permanently close Fort St. John and Plateau (Vanderhoof, B.C.), sawmills impacting over 500 jobs, 325 of them USW members.

The mills will be slated for closure by the end of 2024.

While our collective agreements provide for decent closure severance and the USW will fight for every benefit and right afforded to members by the collective agreement and B.C. government programs, if any, it is time the B.C. government stood up for B.C.’s forest industry and the mostly rural communities that these closures are impacting.

“I can’t imagine what is going through the minds of our members and their families in Vanderhoof and Ft. St. John following the announcement,” said Jeff Bromley, USW Wood Council Chair.

“This is another kick in the gut for our members,” said Brian O’Rourke, USW Local 1-2017 President. “When does it stop? When is the B.C. government going to hold these companies accountable? Will the tenure and timber rights held by Canfor be taken away if they can’t mill that timber in those communities?”

“I doubt it,” O’Rourke added.

“There used to be accountability and a social contract for the forest industry to provide good-paying jobs to these communities in exchange for the right to harvest the timber. When is the government going to stand up for the public’s resource and the communities it supports?” continued O’Rourke.

USW District 3 Director Scott Lunny called on the B.C. government to put forward a concrete plan to resurrect the industry in British Columbia. “There needs to be a better effort by government to decide what vision they have for the industry in B.C.,” said Lunny. “Right now, we don’t know what that vision is and mills continue to close. Communities are impacted and families are devastated.”

The USW commits to hold Canfor and the government accountable. “We have a provincial election coming up and forest policy and a plan to renew the industry needs to be front and centre,” said Bromley. “If the government is going to do nothing more than throw retirement sums at those who are eligible, we’ll have no industry in B.C. in short order. That’s unacceptable.”

Since purchasing the Tembec mills and tenure in the East Kootenay, B.C., in November 2011, Canfor, then with 13 mills in B.C., purchased one mill in Creston, B.C., a non-union operation. In that time, 10 mills in B.C. have been closed, one (Canal Flats) in the southeast and nine in Northern B.C.

“If Canfor wants out of B.C., and it sure looks like it does, then we need to find someone who will provide high-paying, community-supporting jobs for the right to harvest the timber,” said Lunny. “If Canfor won’t do it, find a company that will invest in B.C.”

The USW represents over 13,000 workers in Canada’s forest industry including 9,000 in B.C.

For more information: Jeff Bromley, USW Wood Council Chair, 250-426-9870 Brian O’Rourke, USW Local 1-2017 President, [email protected]   Scott Lunny, USW District 3 Director (Western Canada and the Territories), 604-683-1117