If your dream is to determine how much you could earn in a month and also have full control of your time, then you should consider becoming an entrepreneur. However, it is a great challenge to become an entrepreneur, but the truth is that being an entrepreneur is one of the surest ways to achieve financial freedom.
So if you want to be in full control of your time and you want to achieve financial freedom, then you should consider starting your own business and one of the businesses you can start is a lumber company.
The logging industry is actually a very large industry both in the United States of America and in Canada. Logging companies are known to be major players in the home building and forestry industries. Most homes in the U.S. and Canada are built with logs; therefore, the sale of logs is linked to the real estate industry (the construction and sale of homes).
Starting a logging business can be considered a capital-intensive process, but it is actually very profitable. It is capital intensive because of the money required to purchase logging equipment and the money required to obtain licenses and permits. Without a doubt, the industry is highly regulated by both the Federal and State Governments, and any logging company that is on the wrong side of the law is always treated.
Starting a logging company requires proper preparation and planning; it would require training and could be a degree in forestry or a university diploma in forest management. Now let’s quickly review the 7 steps to follow to successfully set up your own logging business;
Starting a Logging Business Plan
1. Research on the timber industry
The step you should take before starting your own timber company is to spend time on research about the timber industry. It is important that you do this, because you will gain a lot when you carry out proper research.
Part of what you should consider when doing research on the timber industry is knowing the areas in which the business thrives, the financial turnover of the business, the right equipment needed, the type of tree (wood) in high demand, the license, permits, and insurance coverage needed in the industry, how to obtain labor, the government agency responsible for regulating the industry, the umbrella organization for logging companies and how you can become a member, as well as a host of other factors unique to the country or state in which you intend to establish your logging company.
2. Write your business plan
The information you get from your research will be very helpful when writing your business plan. You should be able to strategize about how to shape your logging business in your business plan. The truth is that if you are able to come up with a good business plan that can pass the reality check, then you can be sure you are on your way to building a successful and profitable business.
3. Acquiring relevant training and education
The logging business is really a big business and should not be handled lightly; no wonder there is a university degree in forestry. It is therefore important that you acquire the relevant training and education before you start your own logging business. Part of what you need to do is register for a degree or diploma in forestry and then after you graduate, you can apply and work with a logging company or with your country’s forestry ministry.
The truth is that when you have the right education, it makes it easier to follow best practices in conducting business. In fact, there are laws that regulate the timber industry and it is your responsibility to make sure you comply with the laws.
4. Incorporate your company and obtain all required licenses and permits
The fact that no one can enter the forest to start logging without obtaining permission and approval from the government makes it mandatory to first incorporate your company and then obtain all the necessary licenses and permits to run a logging business. You can consult your attorney to help you with the registration of your company and perhaps to guide you through the process of obtaining your license and permits.
5. Rent or lease a facility for your sawmill
Starting a lumber company means that you would need a facility for your sawmill, except that you want to run a small-scale lumber company that is operated from your backyard. Therefore, make sure your facility is large enough to accommodate both your sawmill and your management block. In most states in the United States, a special permit is required to use any facility for a large-scale sawmill. So be sure to inform your real estate agent that you are looking for a facility for your sawmill.
6. Buy the necessary equipment
The main equipment you would need for your logging business is a lumberjack, a Feller roller, a skidder, a forklift and a skeleton truck for transporting logs. You would also need safety devices such as hard hats, safety cabs, safety glasses, proper hand gloves, etc. In some cases, I would also need a bulldozer.
7. Networking and marketing your business
The log market is in fact a very large market and is still growing. All you need to do to make good profits in this industry is to properly position your logging company. You can sell your logs to the government, to construction companies and also to individuals. Make sure you have a network of contacts with the main players in the construction and logging industry. You are likely to receive referrals from your network and also from your customers.
There you have it; the 7 steps that can help you follow to successfully establish your own lumber company from scratch, and then build it to profitability in record time.