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How to organize a business on wood?

Currently, gasification occupies a leading position in the heating system. However, one does not need to think that firewood is irrelevant as fuel. On the contrary, country houses and cottages are heated only with wood. In addition, owners of private houses like to build baths and saunas on the site. And what is a sauna without firewood? If you live in a rural area, then this area is just perfect for starting your own business. The wood business is profitable for several reasons: you do not need to invest a large amount of money, quick payback and low competition. These factors are very important for becoming an entrepreneur in the market.

Business profitability

It is worth noting that the wood business has a high level of profitability. If there are many orders, then all investments pay off in one season. Among the positive aspects, the fact that firewood can be stored for a long time can be noted. In this case, all properties are saved. Many harvest a large amount of firewood, and then sell it over the course of a year.

wood business

Demand for these products is quite high, and is unlikely to fall in the near future. Among the population, custom-made firewood is especially in demand for fireplaces, stoves, etc. If you provide such services, then things will go up. The greatest profit can be obtained by carrying out a full cycle of harvesting firewood: felling, sawing into logs, then into log blocks, chopping and selling the resulting firewood to the public.

It is recommended that a novice entrepreneur deal with organizational issues and finding clients. Direct work should be entrusted to local lumberjacks, agreeing on payment. If you chop wood yourself, then the business will grow slowly. In addition, it is a high physical activity that not everyone can withstand.

Customer search

It is necessary to take into account all the nuances when developing a business idea. Firewood needs to be sold to someone, which means that you need to actively seek customers. Despite prejudices, finding people who need this product is quite simple. You need to search in the following areas: use as fuel for fireplaces, use for heating boilers, enterprises, saunas and baths.

business plan firewood

In a private house with a high degree of probability there is a fireplace, and the owner of the site will gladly purchase chopped firewood. It should be noted that such products are not cheap. As for the rooms heated by the boiler, firewood is also needed there. True, their price will be much less, but no one will find fault with quality.

Enterprises buy up large amounts of firewood, as they need this raw material. Often they enter into a contract for the supply of material. The quality requirements are low, the price is average. For saunas and baths, firewood is ordered in small quantities.

Where to begin? check in

How to organize a business on wood? As in other areas, there are some nuances that you need to know about. First you need to officially register your business. As you know, in Russia at the moment two of the most popular organizational forms are: IE (individual entrepreneur) and LLC (limited liability company).

business firewood chopped

If you plan to open a small business, it is recommended to choose an IP. This form is easier to register, and you don’t need to submit a lot of reports and documents. If it is planned to continue working, including with state enterprises, it is better to opt for LLC. Despite some difficulties with registration, large firms willingly go to the deal. Many companies do not agree to work with IP for various reasons.

Storage room

Starting a business on wood is not possible without a room where you can store them. If you are planning a large-scale business, it is recommended to use a spacious warehouse or hangar. The main requirement is the lack of moisture, no one needs damp firewood. Where to get such a room? Everyone solves the issue depending on their capabilities. The warehouse can be rented or acquired in the property. If you plan a small business on wood, you can build a room yourself.

business plan selling firewood

It is recommended to choose a warehouse territory so that there is free space next to it. Sometimes even a spacious room is not enough to accommodate long firewood or whole whips. To begin with, you can build a small canopy and fence the room. In the future, as far as possible, the warehouse can be improved and improved.

Raw materials

This refers, of course, to the forest, which will go for firewood. First you need to arrange a place for cutting down. To do this, you need to agree with the forestry. After all issues are resolved, the forester will show you the place, and you can get to work. Birch, oak and aspen firewood are in demand, this should be given special attention.

business on wood how to organize

Raw materials can be found at sawmills and sawmills. A large number of scraps are accumulating there, which are also in demand. Small firewood can be cut and packaged in bags. Get cheap raw materials from old wooden houses. Now a large number of such buildings are being disassembled. Of course, not all of these firewood meets quality standards, but there is a buyer. You can also ask the administration if trees are being cut down. This is very beneficial, since in addition to raw materials, you can get more money for help in business.

Equipment

This business cannot be organized without the necessary inventory and equipment. To begin with, you should purchase a large number of gloves, goggles, and other consumables. Of the tools you will need sharp axes, crowbars, etc. If you are going to chop wood, you should take care of metal wedges for cutting stumps.

The main tool is a chainsaw, which is represented on the market by a large number of different types. What to buy, to decide the entrepreneur, it depends on financial capabilities. If they allow, then it is better to take the tool from a high-quality manufacturer: "Calm", "Partner", etc.

business ideas firewood

The equipment also includes a wood splitter, which passes a stump through itself and cuts it into logs. This inventory is also represented by different species. The average cost of a wood splitter is about 20,000 rubles. However, such a tool will not have high power.

Firewood category

In total, there are three most popular categories of wood products:

  1. Chipped firewood. To make a profit, there is no need to make any effort. It’s not even necessary to draw up a business plan for selling firewood. The main task is to transport to the warehouse and from there to implement.
  2. Chipped firewood. This is the most popular and profitable type of business. Such firewood can be sold in various ways. It is necessary to organize the splitting and packing of them on its territory. Business with chopped wood is not an easy task, but if you make an effort, you can get a good profit.
  3. Branded firewood. These products belong to the premium class, and the cost of the bar increases significantly. Such firewood differs in that an exclusive logo is applied on the end part. They are popular with owners of country houses and cottages.

Chipped firewood. Business plan

When organizing a business, you must have at least minimal knowledge about the income and expenses of this business. We will consider an approximate business plan for the implementation of chopped firewood.

wood business reviews

On average, the cost of 1 cubic meter is about 1000-1500 rubles. If 3 cubic meters are produced per hour, then their number will be 24 per working day.If you take the minimum cost, then a day you can make firewood for 24,000 rubles. After making easy calculations, we find out that for a month you can get about 530000 rubles, taking into account two days off per week. Of course, this figure is relevant if there are distribution channels and products are constantly being sold.

This amount does not reflect net income. From it you need to deduct the costs of transport, the purchase of raw materials, workers' wages, etc. Even if we take into account that you can get half of this amount per month, this is quite a decent income. It is necessary to keep in mind the seasonality of this production.

Reviews about the wood business are mostly positive. With proper organization of their business, one can earn very good money on this, even taking into account seasonality.


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