Are you looking for a way to start a firewood business but aren’t sure where to begin? This comprehensive guide will help you decide whether or not to start a firewood company. It also includes a step-by-step plan for if you do.
A firewood business can be an excellent side-hustle that could generate enough income to become a full-time career. You can definitely make money selling firewood while being your own boss.
Towards the end of this article, you’ll find answers for some of the most frequently asked questions on how to start a firewood business and other online alternatives.
You might be wondering whether there is still enough demand for firewood today, especially with modern heating technology. Many situations still call for firewood. Some examples are:
Access to lots of firewood is essential to starting a profitable firewood business.
Large quantities of firewood are sold by logging firms or hazardous tree removal businesses that take down dying trees for homeowners.
Many people do not use firewood, so it is common for homeowners to ask a tree removal company to remove the tree along with all the wood.
It is crucial to create a plan for any business. Before you can begin selling firewood, business planning will help organize your business model. You can avoid pitfalls down the road by creating one. It will also help you decide what priorities you should be focusing on.
The business plan need not be a hundred-page document. Instead, think of it as a blueprint that you can refer back to as you build things. It will help you get started with the most crucial steps to start a firewood business.
What’s in a name, anyway? There is quite a lot. Naming your company is an important step. This can make you stand out from your competitors. You could call it something simple like “Bailey’s Firewood,” but you can also go a little cheekier and be creative.
Thinking about branding and messaging is something that I find very helpful when naming companies. Are there any catchy slogans or appealing images that the name evokes in you?
Once you have secured your logo and name, it is time to create an official business entity. You might be interested in incorporating your business as a limited liability company (LLC).
Business owners are constantly at risk from lawsuits, whether it is for injury or any other reason. You’re more likely to be injured by firewood than if you were selling paperclips.
This is not to scare you. Although you may never be sued, it’s better safe than sorry. Let’s imagine a drunk man jumping over a firewood-burning beach fire. Your firewood causes the intoxicated person to trip and fall into the fire. Although this sounds absurd, the person would not pursue assets associated with the business if they have an LLC or other business entity.
You may face legal action if an entity is not established. The small fees needed to set up an official business are well worth it for the chance of something like this.
This one is far more important than you might think. The LLC will allow you to open your own business bank account. This will enable you to keep track and report on your income and expenses. It will also allow you to work with more prominent clients and distributors, like grocery stores.
A company limited liability company is a good idea for accounting and bookkeeping. I can speak from experience. If you have to keep track of business and personal expenses, it is easy to get messy.
It is crucial to know your business numbers. Separating personal finance from business finances will make things easier. A bank account is an excellent place to start. This will give you a clear idea of what is coming in and what is going out.
Hire a bookkeeper, and you’re going to do yourself a favor. If you are not proficient at keeping track of all your transactions, a bookkeeper will do it for you. Many bookkeeping companies online specialize in small businesses. You don’t have to hire them as full-time employees; you can get more on a contract basis.
The formation of an LLC for your business is beneficial in many ways. Tax time will be easier if you already have your finances and bookkeeping under control – saving you a lot of time and money and enabling you to concentrate on your business rather than taxes.
You’ll also be able to deduct your business expenses and receive other tax benefits by owning your company.
A startup capital investment is necessary to start a firewood company. The startup costs for firewood businesses are much lower than those of other businesses. But this depends on the situation.
Heavy-duty equipment such as a chainsaw and hydraulic wood splitter (to split wood), or even a firewood processor, can be costly.
You can save money by having a truck. You should think about what you will need to get your inventory (firewood) to deliver to buyers.
Customers may sometimes come to you in certain situations, but you will most likely deliver the wood to someone or a place of business to resell it.
As soon as you have the equipment, you will need the inventory, also known as wood. How can you source the wood for your business?
Perhaps you thought of starting the business because you live in an area with many potential wood-harvesting trees. If so, you’ve already answered this question and can move on to the next phase.
We can show you how to get wood if your location doesn’t allow for it. Think creatively about where to source wood.
Now that you have the equipment, the firewood, and the business plan, it is time to find customers for your firewood company. The following will help guide you through this process.
Depending on your target audience, you will have to structure your firewood business differently. To illustrate, are you looking to sell large quantities of wood stove owners or small bundles that can be used in backyard fire pits, camping, or other purposes? You can do both, but it is best to pick one angle for when you first get started. It’s vital to understand your target audience or your ideal customer.
Selling firewood bulk to a grocery is an excellent way to get it sold quickly. Even though you may not charge the same amount as a single customer, you will be able to make up the difference in bulk sales. Consider this: You don’t need to get all the customers and deliver wood. You only have one big customer, and you supply them. Focusing on local grocery stores and supermarkets is a smart strategy.
It is not as simple as getting customers for wood-burning fireplaces as it is with grocery shops. One way to get customers for wood-burning stoves is to ask the store clerks to give you flyers and stack business cards. A partner could be offered a discount for each purchase of a stove. Make sure to think outside the box and work together to create a mutually beneficial deal.
Another alternative would be to post an ad on a classified site like Craigslist. Send your firewood to be sold along with any details that will facilitate the buyer’s purchase decision. Online classifieds remain a great way of doing business.
These people are your bread & butter customers. As an upsell, you might sell a small package of wood. They are likely to grab the wood from convenience or impulse and will not mind paying a premium in return for the grab and run benefit.
Pricing is influenced by who you sell to and where you sell. Look in classifieds and stores to see if there are any comparable products. The price should be reasonable, and people are willing to pay it. The smaller bundles will cost more than the bulk ones, but bulk customers will be cheaper.
A firewood cord can range from approximately $130 to $400, depending on its location.
The costs below will get you started, provided you have enough free log supply. Because of the variety of ways you can acquire your inventory, you might need to add the cost of the wood to these figures. You can also subtract the price of a trailer if you don’t have a truck but still want one.
Other optional expenses such as a website or marketing materials are not included.
Log Splitter: $500.00
Kindling Splitter: $80.00
High-Quality Axe: $80.00
High-Quality Hatchet: $30.00
Cord Strapping Kit: $300.00
Sturdy Leather Gloves: $25.00
Utility Trailer: $500.00
5 Gallons of Gas: $15.00
Misc. Licenses And Fees: $100.00
Total Startup Cost: $2,150.00
Profit margins can vary due to the nature and price of firewood. Your business model, who you are selling to, and the quantities you sell will be significant determinants. The profit you make from wood free from storms and private property will be higher than if you have to purchase wood. We will not guess how much profit you’ll make, but we’ll show you the pricing ranges for different scenarios.
Let’s just say that if you sell a lot of wood, it will cost you an average of $175. The cord could be sold for more if it was broken up into smaller bundles. While the second option offers a higher payday, it takes more time and effort.
You can usually get 48 bundles for every cord. Let’s suppose you can sell a bundle of firewood for $6.00 like Tractor Supply.
48 x $6.00 = $288
According to this, it would be $113 more to sell the cord in bundles.
This guide has provided information and steps to help you start a firewood company. You are now ready to sell firewood and start your entrepreneurial journey! Keep in mind that there are many opportunities to make money with the current demand for firewood.
Our review team has come across a program in the real estate industry that is next level!
Although it’s not real estate in the traditional sense, it’s all digital.
With digital real estate, you have the opportunity to completely walk away from your 9-5 job!
Sound too good to be true?
Of course it does!
But it isn’t… in fact, business owners wish they had this skill!
What exactly is the skill?
Well, basically you are acting as a conduit for small business to increase their bottom line.
What we mean is…
You are helping these businesses grow!
All you have to do is build and rank a website and forward certain jobs off to a business owner in town, you could even email it to them!
This works for literally any service based business… i.e.: tree service, plumbing, towing, etc.
Simple, after you forward the jobs off to a business owner and he makes closes the deal, you simply ask to agree to a WIN-WIN arrangement.
A fair price to charge per lead, depending on the industry is 10-20%… let’s just use the tree service industry for example and go by worst case scenario.
Let’s say you build and rank the site and only 20 jobs a month come in. The average tree service job is anywhere from $500-$2000!
That means at bare minimum you have an asset worth $1000 a month!
See why they call it digital real estate now?
That’s a rent payment.
The great thing is how easy it is to scale. You don’t have to answer the phone…all you have to do is get the phone to ring.
Truly passive income!
The training program takes making money online to a whole other level. The owner of the program walks you through how to build and rank a site hand in hand, with the occasional voice over when he is sharing his screen.
You will learn the importance of keywords, website name, how to send call notifications via email, backlinking, etc.
Once the training program is completed you will also have access to a Facebook group where you can ask questions and be in a community with others on the same journey as you.
Digital real estate allows you to have passive income with most of your day being spent OUT of the brick and mortar landscape.
Now, we know you probably have tons of questions…