Table of Content

    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.

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    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:

    3 Years Profit Forecast - Firewood Business Plan

    Franchise Business Plan
    Helps the franchisee get business case approval from the franchisor

    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.

    Startup Cost - Firewood Business 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

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    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.

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    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:

    Marketing Segmentation - Firewood Business Plan

    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

    Sales Monthly - Firewood Business Plan

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    6.4 Sales Yearly

    Sales Yearly - Firewood Business Plan

    6.5 Sales Forecast

    Unit Sales - Firewood Business Plan

    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
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    8.2 Break-even Analysis

    Break-even Analysis - Firewood Business Plan

     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

    Profit Monthly - Firewood Business Plan

    8.3.2 Profit Yearly

    Profit Yearly - Firewood Business Plan

    8.3.3 Gross Margin Monthly

    Gross Margin Monthly - Firewood Business Plan

    8.3.4 Gross Margin Yearly

    Gross Margin Yearly - Firewood Business Plan

    8.4 Projected Cash Flow

    Projected Cash Flow - Firewood Business Plan

     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

    1. 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.

    1. 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.

    1. 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.

    1. 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.

    Download Firewood Business Plan Sample in pdf