Whilst many of us are using gas to heat our homes, there is still nothing like an old-fashioned log fire. Starting your own firewood business can be a great way to make some extra money or even begin a brand new career. If you have some land with some timber or a friend or family member with a lot of trees on their land, you may already have everything that you need. Starting a firewood business can be really quite simple as long as you make sure to take the right steps. This article is a guide to how to make extra money by starting your own firewood business.
1. Know Your Market
As is the case when you start any kind of business, the first thing you must do when starting your own firewood business is to get to know your market. Before you get started, you have to research your competition and find out what your target customers are looking for. If you live in an area where there are a lot of people who all own land with lots of trees, then there are many potential competitors. Make sure you are totally aware of everything that is going on locally, whether that be your neighbors selling firewood on the side of the road or big timber companies selling it in bulk. Get yourself up to scratch on firewood prices and make sure that you have the correct set up to sell your firewood at a price point that will appeal to your customers. If you live in the woods, the chances are that the traffic count going past your place isn’t going to be very high, and also all of your neighbors will be living in a similar situation to you and so they won’t need any firewood. Most of your customers, therefore, are going to be suburban people or people that have moved out to the country so you will have to plan accordingly for how to attract these customers.
2. Work Out Your Delivery Options
As most of your customers are likely to live in town, the best way to attract new business is by offering a firewood delivery service. The experts at Buyfirewooddirect.co.uk told us that most customers expect 48-hour delivery, but in order to stay competitive, it is vital to find out what delivery options your competition offers to their customers. Remember that you need to factor delivery costs into your pricing as everything that delivery requires is going to cost money. The cost of your trucks, vehicle and car insurance, fuel, driver’s salary, and road tax are all going to add up so make sure that you are charging enough to cover these costs. A good way to save money on delivery costs is to try and tie your regular customers into the same delivery schedule each week so that you can plan a set route and reduce the number of deliveries you have to do and how many miles you have to drive.
3. Work Out Your Costs
Everything costs money from your chainsaw fuel to the chains, to the employees who will cut the logs down to size. Especially when starting a new business, operating costs need to be carefully calculated and this will determine what product you can deliver at a competitive price point. The usual mantra you will hear when you are running your own business is “Pay yourself first”, but there is so much equipment involved in starting a firewood business that a better mantra, in this case, would be “Pay your equipment first and then think about yourself.” For firewood businesses, the least steps that you are involved in, the fewer costs you will incur. What this means practically is that delivering pre-cut logs to your customer’s doorstep is going to cost you a lot more than charging a customer to come and cut down a tree themselves for the same amount of wood. When you first start your firewood business, it is so important that you don’t overlook these costs. Offer a variety of services at different price points to diversify your business. For example, you may offer 100kg of firewood pre-cut to size and delivered to a local customer for £200, but the same weight of firewood for £100 if a customer comes to your firewood farm and cuts it themselves.
There are some great opportunities available from starting your own firewood business but it is really important that you address every facet of your business first. Take into account your local competition, your operating costs, and how you are going to deliver your product to your customer in order to ensure that you have a viable business plan. If you are thinking about starting your own firewood business, make sure you follow this guide and you could make some real money.
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