Starting a firewood delivery business requires careful advance planning because of the many issues that can impact profitability and sustainability. The firewood business plan will demonstrate that the specific requirements of starting or expanding a firewood business have all been considered, including space needs, equipment, staffing and types of clients. One of the first things that must be decided is the type of products that will be sold because that directly impacts equipment, space and inventory needs. For example, will the product line include green and/or dry firewood; palletized or bundled cords; cut to order lengths; or chipped wood for smokers or wood stoves? Assets could ideally include equipment like a log truck with a knuckleboom loader, as well as a self unloading trailer. All the product line will dictate the need for specialized processing equipment also, like log feeders, chippers, chainsaws, etc.
The firewood business plan clearly outlines the steps to creating a successful business by discussing:
- If product will be sold to wholesale clients, consumers or both
- The lease or purchase of land to maintain production levels
- Space requirements for seasoning and storing inventory
- Required number and size of the delivery trucks and trailers
- Payment and credit terms, including discount terms for cash payments, summer deliveries, etc.
- Whether equipment will be leased or purchased or if any jobs will be subcontracted, i.e. trucking company hired to fill wholesale purchases
- Sustainability of the business due to the cyclical nature of the business
- Labor requirements
One of the most important decisions the business owner makes concerns ensuring a continual supply of wood is available. Supplies can come from trees raised on private property, purchasing firewood already split or cut-to-length from wholesalers, buying logs from commercial and private property owners, purchasing leftover wood or mill ends from sawmills, landing contracts to cull logs from state parks, cleaning up tops or rejects after loggers are finished working, and so on. Establishing business relationships with loggers is a critical element of success.
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Key requirements to Firewood Business Plan
Investors will closely analyze how well the business plan identifies regular material sources and revenue sources year round.The firewood business plan must also describe the qualifications and knowledge of the business owner. The firewood business requires having in-depth knowledge of the different types of wood, how they burn, how to cut and measure wood per industry standards, how to season wood and so on. This is not considered one of the easier businesses to start because of the materials sourcing issues, which means the business plan must be thorough, detailed and high quality in order to attract investors willing to accept the risks associated with this type of enterprise.
OGS Capital can help entrepreneurs develop a business plan that includes the details the business owner and investors need for decision-making. Completing the online contact form is all it takes to put the entrepreneur on the path of success.
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