Do you want to Firewood Business services business plan?
Do you want to know how to start firewood business? Well, you’re in the right place. The idea of creating a firewood business is a great one if you want to start it as a side hustle and develop it into a full-fledged company. And the best part about it is that you don’t need a different degree or qualifications to start a business in the firewood industry.
But before you do anything else, you’ll need a firewood business plan. If you want, you can hire business plan writing services for this purpose. If you are committed to writing your business plan, you can take help from here. As far as business plans are concerned, you can use any for your reference. Even a furniture business plan will work.
Executive Summary
2.1 The Business
Will’s Firewood will be a firewood company started by Will Truman. The main goal of the business will be to fulfill firewood requirements in and around the area of Denver. The company will offer many services related to firewood, such as tree cutting and firewood processing, etc.
2.2 Management of Firewood Business
To make sure that you start a firewood business with the highest chances of success, you will need to figure out some requirements. These requirements can include things like firewood business logo and firewood business name ideas. You can put all this information together in a business plan for investors.
Whatever route you choose to start your own firewood company, you will need to look at firewood business plans to organize your resources and utilize them in the best way.
2.3 Customers of Firewood Business
Many different types of people require firewood from various walks of life. As such, our potential customer groups will consist of the following:
- Individuals
- Parks and Campgrounds
- Retailers
- Small and Large Businesses
2.4 Business Target
Our target as a business is to become the primary firewood provider around Denver and provide our customers with all firewood-related services whenever they require them.
The targets we want to achieve in terms of our finances during the first four years of our launch are shown below:
Company Summary
3.1 Company Owner
Will Truman will own Will’s Firewood Business. Will has been working as a manager in a grocery conglomerate for the past two years after completing his Bachelor’s. But he wanted to start his own business. And since he had knowledge and passion for the firewood business, he decided to start his business in this domain.
3.2 Why the Firewood Business is being started
Will noticed that there was a limitation of firewood supply around his town. Businesses and campgrounds had to import firewood from other states, which cost a hefty amount. Therefore, he decided to use the resources around his town and his knowledge for starting a firewood business that would be economical and quick.
3.3 How the Firewood Business will be started
Step1: Plan Everything
When you are learning how to start firewood business, the first step is a business plan. That is the case for every business. For instance, you’ll need a Christmas tree farm business plan for starting a Christmas tree farm. To write your plan, you can use this firewood business plan pdf as a guide. You could also turn to business plan experts who will develop the business plan for you.
Step2: Define the Brand
To highlight your services among your competitors, you will need services that will help you stand out. And once you identify those services, you need to brand them so that your customers know about them as well. They will help you gain a competitive advantage in the market.
Step3: Establish Your Corporate Office
Will decided to build a small cabin in the forest area that his family-owned. He wanted to be close to the heart of the business to manage everything from here. To start the company, he will procure firewood business equipment and find competent potential employees.
Step4: Establish a Web Presence
Jack knows how vital the internet is for promoting businesses nowadays. So he decided to establish the social media presence of his company. He also decided to get a simple website developed where people could look up the company’s services and contact him. s
Step5: Promote and Market
The last step in the development stage of a business is to market and promote it through a strong marketing plan.
| Start-up Expenses | |
| Legal | $176,000 |
| Consultants | $0 |
| Insurance | $23,000 |
| Rent | $33,000 |
| Research and Development | $10,000 |
| Expensed Equipment | $16,000 |
| Signs | $3,400 |
| TOTAL START-UP EXPENSES | $261,400 |
| Start-up Assets | $266,000 |
| Cash Required | $369,000 |
| Start-up Inventory | $39,000 |
| Other Current Assets | $110,000 |
| Long-term Assets | $287,000 |
| TOTAL ASSETS | $1,071,000 |
| Total Requirements | $1,332,400 |
| START-UP FUNDING | |
| Start-up Expenses to Fund | $261,400 |
| Start-up Assets to Fund | $1,071,000 |
| TOTAL FUNDING REQUIRED | $1,332,400 |
| Assets | |
| Non-cash Assets from Start-up | $1,376,000 |
| Cash Requirements from Start-up | $285,000 |
| Additional Cash Raised | $50,000 |
| Cash Balance on Starting Date | $35,000 |
| TOTAL ASSETS | $1,746,000 |
| Liabilities and Capital | |
| Liabilities | $18,000 |
| Current Borrowing | $0 |
| Long-term Liabilities | $0 |
| Accounts Payable (Outstanding Bills) | $48,000 |
| Other Current Liabilities (interest-free) | $0 |
| TOTAL LIABILITIES | $66,000 |
| Capital | |
| Planned Investment | $1,332,400 |
| Investor 1 | $0 |
| Investor 2 | $0 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| TOTAL PLANNED INVESTMENT | $1,332,400 |
| Loss at Start-up (Start-up Expenses) | $347,600 |
| TOTAL CAPITAL | $1,680,000 |
| TOTAL CAPITAL AND LIABILITIES | $1,746,000 |
| Total Funding | $1,332,400 |
Services of Firewood Business
Before starting a firewood company, you need to identify the services that you will provide your customers. This will help you plan many aspects of your business and make the firewood business profitable.
You can use a free firewood business plan to understand how you can identify your services. You can also look at business plans of related companies such as a firewood processing business.
If you want to include all the information about your services in your business plan, you can refer to other plans such as woodworking business plan. This information added to the business plan will help in all aspects of the company, even in making firewood business cards.
- Firewood Provision
The primary service of Will’s Firewood Company will be to provide firewood to all its customers. This firewood will be obtained from the business premises and processed into different sizes according to the clients’ needs.
- Tree Cutting
As an extension of our services, we will also provide tree-cutting services all over Denver. Many people have surplus wood that they don’t know how to cut and process into a usable form. Therefore, we will tap into this potential and provide tree-cutting services to our customers.
- Firewood Processing
The company will offer firewood processing services to all our clients. The customers can bring their unprocessed and cut wood to us or ask us to come to them. We will then take the unprocessed wood chunks and process them into usable firewood for our customers.
- Delivery Services
Our last service will be to provide delivery options to our customers. So, if our customers have a lot of firewood, they can either choose to take it with them or ask us to arrange delivery.
We will also offer our delivery services to smaller clients depending on the workload.
Marketing Analysis of Firewood Business
To convert your firewood business ideas into a proper bundled firewood business, you will need in-depth information about your target market. The best way to tap into that kind of information in detail is to conduct a marketing analysis.
The marketing analysis included in your logging company business plan should contain current, previous, and future market trends. This analysis will reflect the state of the firewood industry and help you determine the correct pricing for your services and products.
If you are unsure what your analysis should contain or how it should be organized, you can take help from a logging business plan sample. You can also refer to this document for further understanding. Here, we are providing the market trends identified for Will’s Firewood Company.
5.1 Market Trends
According to Market Research, the firewood industry has a valuation of 0.2 billion. The sector has also been growing at a rate of 4.9% annually for the past three years. It shows that the demand for firewood is steadily increasing as more and more people turn to firewood instead of LPG. This demand is higher in rural areas where most campgrounds and inns exist as compared to cities.
5.2 Marketing Segmentation
The potential customers of Will’s Firewood Company are divided into the following groups:
Business Plan for Investors
5.2.1 Individuals
Our primary clients will be the residents of Denver and surrounding areas. They are expected to utilize our products and services regularly. And the demand is expected to increase heftily in the winter. Our company will offer them benefits like provision of firewood and firewood processing etc.
5.2.2 Parks and Campgrounds
Our second biggest customers will be campgrounds and parks. They are expected to need a constant supply of firewood for campers. So our primary services utilized by them will be firewood supply and delivery.
5.2.3 Retailers
Our third group of customers will be retailers to whom we will sell firewood that they will then sell in their towns. This will expand the reach of the business. These customers are expected to avail themselves of our firewood provision, processing, and delivery services.
5.2.4 Small and Large Businesses
Our last group of customers will be businesses that may need firewood, such as hotels, cafes, shops that use fireplaces, etc.
| Market Analysis | |||||||
| Potential Customers | Growth | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | CAGR |
| Individuals | 34% | 31,000 | 34,100 | 37,510 | 41,261 | 45,387 | 10.00% |
| Parks & Campgrounds | 26% | 30,000 | 33,000 | 36,300 | 39,930 | 43,923 | 10.00% |
| Retailers | 22% | 22,000 | 24,200 | 26,620 | 29,282 | 32,210 | 10.00% |
| Businesses | 18% | 16,000 | 17,600 | 19,360 | 21,296 | 23,426 | 11.00% |
| Total | 100% | 99,000 | 108,900 | 119,790 | 131,769 | 144,946 | 10% |
5.3 Business Target
- To become the biggest firewood supplier and service provider in Denver
- To expand the business to other cities
- To earn a profit of 15k/month by the end of the second year
- To maintain customer satisfaction with products and services
5.4 Product Pricing
Our prices for products and services will be a little higher than our competitors. But we will provide custom services for maximum satisfaction.
Marketing Strategy
To become one of the biggest local firewood dealers, you need a strong firewood company business plan. Competitive advantage can be obtained by developing a marketing strategy.
A market strategy will help you learn how to start a firewood business and how to make it successful. It will highlight your unique services to the customers. And it will help attract customers to your business instead of the competitors.
Below, we are describing the marketing strategy developed for Will’s Firewood Company.
6.1 Competitive Analysis
- We have strong customer support services. We will guide our clients in making the right decisions.
- We will record feedback from our customers to improve our services regularly.
- Our customers can go through our list of services comfortably through the website. They can also contact us through the website or our social media.
6.2 Sales Strategy
- We will advertise through word of mouth and social media.
- We will offer discounted rates for firewood and our services to our new customers.
- Our old customers can avail of a membership plan that will offer them lowered rates and free delivery.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
| Sales Forecast | |||
| Unit Sales | Year 1 | Year 2 | Year 3 |
| Firewood Provision | 19,211 | 20,364 | 21,585 |
| Tree Cutting | 9,854 | 10,445 | 11,072 |
| Firewood Processing | 8,922 | 9,457 | 10,025 |
| Delivery Services | 3,214 | 3,407 | 3,611 |
| TOTAL UNIT SALES | 41,201 | 43,673 | 46,293 |
| Unit Prices | Year 1 | Year 2 | Year 3 |
| Firewood Provision | $15.00 | $17.40 | $20.18 |
| Tree Cutting | $20.00 | $23.20 | $26.91 |
| Firewood Processing | $20.00 | $23.20 | $26.91 |
| Delivery Services | $50.00 | $58.00 | $67.28 |
| Sales | |||
| Firewood Provision | $288,165.00 | $354,327.68 | $435,681.32 |
| Tree Cutting | $197,080.00 | $242,329.57 | $297,968.44 |
| Firewood Processing | $178,440.00 | $219,409.82 | $269,786.32 |
| Delivery Services | $160,700.00 | $197,596.72 | $242,964.93 |
| TOTAL SALES | $824,385.00 | $1,013,663.80 | $1,246,401.00 |
| Direct Unit Costs | Year 1 | Year 2 | Year 3 |
| Firewood Provision | $5.00 | $5.50 | $5.78 |
| Tree Cutting | $6.00 | $6.60 | $6.93 |
| Firewood Processing | $8.00 | $8.80 | $9.24 |
| Delivery Services | $20.00 | $22.00 | $23.10 |
| Direct Cost of Sales | |||
| Firewood Provision | $96,055.00 | $112,000.13 | $124,656.14 |
| Tree Cutting | $59,124.00 | $68,938.58 | $76,728.64 |
| Firewood Processing | $71,376.00 | $83,224.42 | $92,628.78 |
| Delivery Services | $64,280.00 | $74,950.48 | $83,419.88 |
| Subtotal Direct Cost of Sales | $290,835.00 | $339,113.61 | $377,433.45 |
Personnel plan
Moving from firewood business ideas to starting a firewood business by yourself demands a lot of effort. The sales and success of a business depend a lot on the behavior of the employees dealing with customers.
Note
Understanding the importance, Will decided to implement a selection criterion for selecting employees. Under this criterion, the company staff put together is mentioned below.
7.1 Company Staff
- 1 Co-Manager to help in overall operations
- 4 Certified Machinery Operators for Firewood Processing
- 2 General Cleaners
- 1 Technician to upkeep the machinery
- 1 Web Developer/ Mobile App Developer to manage online sites
- 1 Sales Executive to organize and promote sales
- 1 Accountant
7.2 Average Salary of Employees
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Co Manager | $35,000 | $38,500 | $42,350 |
| Machinery Operators | $92,000 | $101,200 | $111,320 |
| Cleaners | $40,000 | $44,000 | $48,400 |
| Technician | $25,000 | $27,500 | $30,250 |
| Web Developer | $15,000 | $16,500 | $18,150 |
| Sales Executives | $16,000 | $17,600 | $19,360 |
| Accountant | $30,000 | $33,000 | $36,300 |
| Total Salaries | $253,000 | $278,300 | $306,130 |
Financial Plan
You cannot ensure the success of a firewood sales business plan without including financial analysis in it. A proper financial analysis helps you understand how to sale firewood and set reasonable prices. It prevents a business from going into loss.
Even when you want to know who sales firewood near me, you should look at the financial plans of the business.
You can take help from other business plans such as organic farm business plan to develop your financial guide. The benefits of business continuity planning are highlighted with a business plan as it helps start your business.
For instance, if you are preparing to succession for agriculture, you need a business plan as a guide. Similarly, a good firewood business can only be achieved with a good business plan.
Here we’re providing the detailed financial plan made for Will’s Firewood Company.
8.1 Important Assumptions
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 8.12% | 8.20% | 8.26% |
| Long-term Interest Rate | 8.40% | 8.44% | 8.47% |
| Tax Rate | 24.03% | 24.21% | 24.60% |
| Other | 0 | 0 | 0 |
8.2 Break-even Analysis
| Break-Even Analysis | |
| Monthly Units Break-even | 5340 |
| Monthly Revenue Break-even | $132,500 |
| Assumptions: | |
| Average Per-Unit Revenue | $231.00 |
| Average Per-Unit Variable Cost | $0.62 |
| Estimated Monthly Fixed Cost | $163,800 |
8.3 Projected Profit and Loss
| Pro Forma Profit And Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $824,385 | $1,013,664 | $1,246,401 |
| Direct Cost of Sales | $290,835 | $339,114 | $377,433 |
| Other | $0 | $0 | $0 |
| TOTAL COST OF SALES | $290,835 | $339,114 | $377,433 |
| Gross Margin | $533,550 | $674,550 | $868,968 |
| Gross Margin % | 64.72% | 66.55% | 69.72% |
| Expenses | |||
| Payroll | $253,000 | $278,300 | $306,130 |
| Sales and Marketing and Other Expenses | $145,000 | $148,000 | $156,000 |
| Depreciation | $2,300 | $2,350 | $2,500 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $2,900 | $3,000 | $3,100 |
| Insurance | $2,100 | $2,100 | $2,100 |
| Rent | $2,900 | $3,000 | $3,200 |
| Payroll Taxes | $24,000 | $25,000 | $27,000 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $432,200 | $461,750 | $500,030 |
| Profit Before Interest and Taxes | $101,350 | $212,800 | $368,938 |
| EBITDA | $101,350 | $212,800 | $368,938 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | $20,270 | $42,560 | $73,788 |
| Net Profit | $81,080 | $170,240 | $295,150 |
| Net Profit/Sales | 9.84% | 16.79% | 23.68% |
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
| Pro Forma Cash Flow | |||
| Cash Received | Year 1 | Year 2 | Year 3 |
| Cash from Operations | |||
| Cash Sales | $51,000 | $55,080 | $59,486 |
| Cash from Receivables | $22,000 | $23,760 | $25,661 |
| SUBTOTAL CASH FROM OPERATIONS | $73,000 | $79,570 | $85,936 |
| Additional Cash Received | |||
| Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 |
| New Other Liabilities (interest-free) | $0 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 |
| Sales of Other Current Assets | $0 | $0 | $0 |
| Sales of Long-term Assets | $0 | $0 | $0 |
| New Investment Received | $0 | $0 | $0 |
| SUBTOTAL CASH RECEIVED | $74,000 | $79,000 | $85,000 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $42,000 | $42,000 | $45,000 |
| Bill Payments | $27,000 | $28,000 | $31,000 |
| SUBTOTAL SPENT ON OPERATIONS | $69,000 | $70,000 | $76,000 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| SUBTOTAL CASH SPENT | $69,000 | $74,520 | $80,482 |
| Net Cash Flow | $21,000 | $23,000 | $25,000 |
| Cash Balance | $27,000 | $30,000 | $33,000 |
8.5 Projected Balance Sheet
| Pro Forma Balance Sheet | |||
| Assets | Year 1 | Year 2 | Year 3 |
| Current Assets | |||
| Cash | $275,000 | $308,000 | $338,800 |
| Accounts Receivable | $24,000 | $26,880 | $30,213 |
| Inventory | $4,300 | $4,816 | $4,900 |
| Other Current Assets | $1,000 | $1,000 | $1,000 |
| TOTAL CURRENT ASSETS | $282,000 | $315,840 | $355,004 |
| Long-term Assets | |||
| Long-term Assets | $10,000 | $10,000 | $10,000 |
| Accumulated Depreciation | $19,400 | $21,728 | $24,444 |
| TOTAL LONG-TERM ASSETS | $24,400 | $27,328 | $30,744 |
| TOTAL ASSETS | $294,000 | $329,280 | $370,440 |
| Liabilities and Capital | Year 4 | Year 5 | Year 6 |
| Current Liabilities | |||
| Accounts Payable | $18,700 | $20,944 | $23,541 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| SUBTOTAL CURRENT LIABILITIES | $19,000 | $21,280 | $23,919 |
| Long-term Liabilities | $0 | $0 | $0 |
| TOTAL LIABILITIES | $15,000 | $16,800 | $18,883 |
| Paid-in Capital | $30,000 | $30,000 | $31,000 |
| Retained Earnings | $53,000 | $57,770 | $63,547 |
| Earnings | $193,400 | $210,806 | $231,887 |
| TOTAL CAPITAL | $285,000 | $310,650 | $341,715 |
| TOTAL LIABILITIES AND CAPITAL | $300,000 | $329,280 | $370,440 |
| Net Worth | $293,400 | $319,806 | $351,787 |
8.6 Business Ratios
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | INDUSTRY PROFILE | |
| Sales Growth | 7.25% | 8.03% | 8.90% | 3.00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 9.21% | 10.20% | 11.31% | 9.80% |
| Inventory | 5.39% | 5.97% | 6.62% | 9.90% |
| Other Current Assets | 2.11% | 2.34% | 2.59% | 2.40% |
| Total Current Assets | 149.80% | 151.00% | 152.00% | 158.00% |
| Long-term Assets | 11.55% | 11.60% | 11.64% | 12.00% |
| TOTAL ASSETS | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 4.90% | 4.94% | 4.98% | 4.34% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 0.00% |
| Total Liabilities | 7.59% | 7.65% | 7.72% | 7.38% |
| NET WORTH | 100.45% | 101.25% | 102.19% | 110.00% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 94.60% | 97.15% | 99.87% | 99.00% |
| Selling, General & Administrative Expenses | 93.56% | 96.09% | 98.78% | 97.80% |
| Advertising Expenses | 1.52% | 1.56% | 1.60% | 1.40% |
| Profit Before Interest and Taxes | 41.50% | 42.62% | 43.81% | 33.90% |
| Main Ratios | ||||
| Current | 34 | 35 | 36 | 32 |
| Quick | 33 | 33.8 | 34.645 | 33 |
| Total Debt to Total Assets | 0.18% | 0.18% | 0.17% | 0.40% |
| Pre-tax Return on Net Worth | 74.08% | 74.89% | 75.00% | 75.00% |
| Pre-tax Return on Assets | 96.30% | 101.12% | 106.17% | 111.30% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 33.56% | 34.60% | 35.67% | N.A. |
| Return on Equity | 55.80% | 57.53% | 59.31% | N.A. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 7.7 | 7.8 | 7.8 | N.A. |
| Collection Days | 100 | 100 | 100 | N.A. |
| Inventory Turnover | 32.4 | 34.02 | 35 | N.A. |
| Accounts Payable Turnover | 15.6 | 16 | 16.3 | N.A. |
| Payment Days | 27 | 27 | 27 | N.A. |
| Total Asset Turnover | 2.5 | 2.5 | 2.6 | N.A. |
| Debt Ratios | ||||
| Debt to Net Worth | -0.04 | -0.03 | -0.04 | N.A. |
| Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
| Liquidity Ratios | ||||
| Net Working Capital | $244,000 | $257,664 | $272,093 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 0.85 | 0.87 | 0.89 | N.A. |
| Current Debt/Total Assets | 1% | 0% | 0% | N.A. |
| Acid Test | 29 | 29.12 | 29.16 | N.A. |
| Sales/Net Worth | 2.1 | 2.2 | 2.2 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
FAQ
- How do I start a firewood business?
The first step to start a firewood business is to develop firewood business plans. You can use this business plan as a reference to develop your own.
- Can you make good money selling firewood?
Starting a firewood business can be a great side-hustle that you can develop into a full-time job with time, provided you have access to wood and know how to bundle firewood for sale.
- Can you make money with a firewood processor?
You can start a good firewood selling business if you have surplus wood available and enough money to buy a firewood processor. With a firewood processor, you can increase the services you provide and, thus, your income.
- What are the five basic elements of a business plan?
If you have firewood business ideas, you can start by developing a business plan. The five main components of any business plan include Executive Summary, Company Summary, Market Analysis, Personnel Plan, and Revenue Projections.
Starting a firewood business.
Thanks for your feedback. If you need advice from our business consultants, you can contact us. Our consultants will help you draw up a professional business plan.