Everyone wishes to start their own business. Whether for firewood or any other product, while the procedure applies is the same for every business, differences still exist in how you must handle operations. 

But what exactly lies in the nitty gritty that you need to be aware of to start and later on continue your firewood business? Especially, taking into account the fact that firewood is an ever-lasting product in demand, what are those specific measures that you will take to cater to such a vast population?

We will answer your concerns in the ensuing investigation on how to start a firewood business. So, now you do not have to worry about anything but keep in mind to stick around until this article’s end to avoid missing any important detail. 

How To Start Firewood Business

Be it in theory or practice, it is always advisable that you have everything necessary planned out before you begin. By this, we mean that you should have planned your endeavor out in such a manner that it contains vivid steps to be taken that would eventually result in an outcome. 

Let’s examine and discuss every step that needs to be taken in how to start firewood business. 

Step-to-step- How To Start Firewood Business  

Step #1: Knowing the WHY

This is a very crucial step that needs to be undertaken, and is that you must be fully confident before you begin your firewood business. Sit in peace and contemplate whether this is the business you want to start.

Particularly, focus on the goals and motivations that you have and which are driving you towards opening a firewood business. Also, think about how profitable you want the business to be; then, it would subsequently decide on other measures that must be aligned.

 

For instance, people often start trading firewood as a side business only to make a few dollars. This is a viable option, keeping in mind that the firewood industry is competitive; therefore, earning or establishing a profitable firewood business would demand more than just sitting and dealing from within the comfort of your house. 

The convenient way to do this evaluation, which will clear things out for you, is to list the pros and cons.

Such a list always clarifies your thoughts while simultaneously pointing out whether an idea you had in mind is positive or negative.

From our industry research, we have also summed up a few pros and cons of our study of the industry. Even though the points are general, they will do an efficient job of providing you with an overview of what trading in the firewood industry is like and what you must be expecting. 

Pros 

  • A firewood business contains no such technicalities compared to other businesses in other sectors. Similarly, and as an outcome, the business model too is pretty straightforward and requires no technical knowledge or adequate expertise. All that you would be doing is selling firewood in exchange for money. 
  • The demand remains steady. It does not matter if the season is of summer or winter. People will always have a demand to attain firewood to do one or another purpose. Therefore, it eradicates the worry of going out of business anytime soon or losing all the dollars you invested in purchasing firewood. 
  • A pro that stands for every business is that you have a flexible working timeline. No one will be bossing you around, nor will you be liable for answering to a certain authority figure. This aspect is the most appealing out of all the reasons for why to start your own firewood business instead of taking up another part-time job to earn some extra dollars. 

Cons 

  • Even though the demand at all times is going to remain steady, this factor could be highly influenced by the region you reside in. Maybe the residents have upgraded enough not to utilize firewood anymore for the purposes they previously did. An alternative could be that the market is saturated with competing firms, making it difficult for you to establish your foot. The prices they offer appeal more to the customers and being a recently emerging business, you cannot provide them. Also, establishing a dedicated customer base takes time. 
  • Preparation of the wood is a labor-intensive procedure. While you might have a vision of running a sole-trader business, some operations demand help from others, whereby you would have to hire labor members to distribute your workload. So, the costs will rise, and this is something you cannot afford at the very start of your firewood business. 
  • Let’s say that you forbid to take the help of other more experienced laborers in the field. Then while using high-tech and dangerous machinery, you are at risk of accidentally cutting yourself while attempting to cut wood. 

Step #2: Researching Challenges & Trends 

The next step after you have set your mind to starting a firewood business is to research the challenges and trends of the firewood industry. Like demand and supply have a directly proportional relationship, this case is with products.

Certain products have substitutes, and if the price or supply of the replacement is impacted, it would highly affect the quantity of the product you are selling. Oil and the environment are potential substitute products that you should have in mind while researching for the firewood business. 

Sometimes it is not a good time to begin such a controversial business. We are all well aware of the spike in the awareness around environmental issues and how sustainability and preserving the environment are now being attempted to be settled in the norm.

Therefore, you should be aware of these. You would not have to hire a fancy market research company to research these elements, but they will suffice if you have good and efficient research skills. 

Lately, oil prices have been rising, which means that they are also causing an increase in the demand for firewood. When people cannot afford a product, say oil, in this scenario, they would look around for other products that would do the job and are not costly enough, such as firewood. 

Another challenge that you would have to withstand is the environment. Firstly, not every county in your state will allow you to cut trees randomly to sell firewood. Secondly, if you do this extensively, the situation can cause an alarm and a predicted out rest with the people.

You would have to avoid these at all costs as then it would adversely impact the reputation of your business, causing the customers to be apprehensive of purchasing from you. The most plausible method to handle this is obtaining a permit to cut trees. 

This license is authentic and verified by the government, permitting you to cut trees in specific locations for identified purposes. 

Step#3: Customer Spending & Deciding Prices 

While researching challenges and trends of the firewood industry, research along the lines of the customer. You should know how much an average customer is willing to spend on purchasing a cord of firewood from you.

 

If your prices are too high or too light, it will spark doubt in the consumer until and unless the high price rightly justifies the quality of firewood you have. With low prices, the customer will be anxious about the sort of wood they will purchase. 

After estimating all your costs and without keeping a profit margin or a slight one, at the start, come up with a price that would suit you and your in-future customers both. However, do not keep a low-profit margin since it will be months after you break even and then proceed to earn a profit.

Usually, in the market, firewood traders have their prices for firewood sold centered around $200-$500. This, too, is highly dependent on the quantity and quality of the firewood they have in stock.

The price for firewood has been taken from the recent market prices in 2021. Due to inflation, prices might have fluctuated. Most sellers prefer selling every log through its weight, but since this is up to your discretion, you can decide for yourself. 

Step#4: Finalizing Remaining Operations

If you have successfully surpassed the first three steps, this last step is only the final nail in the coffin that has to be hammered. If you have already made up your mind, done your research, and decided on the possible prices for the firewood you will sell, the last step will be to finalize the operations.

These operations would include where you will be obtaining the firewood from. Always choose the forest that is the most convenient to you, near to where you reside or are going to manage your business, as it will significantly lower the associated travel costs. 

Decide whether you need extra help and, per your decision, hire the necessary members of labor. Additionally, know how you will be dealing with and advertising your business. 

Will you be renting a vacant warehouse for storage purposes or handling the operations of your firewood business from the garage of your house? 

Tip: After deciding on all these matters, consider the cost you have settled for selling firewood. In some cases, the transportation or the labor can be costly, and if it is in your case, then feel free to alter the original numbers of the decided cost. But be gentle with the changes you make, and always keep in mind that it is the start, so avoid overcharging your customers. 

How To Start Firewood Business- Earnings

Something of the utmost concern for an individual looking to establish their own firewood business is how much they should expect to be earning from the endeavor.

 

Every time you sell firewood, it will be in a cord which is a pile of firewood, so the earnings you will have are primarily dependent on the cords of firewood that you are selling in a day, week, or month. 

During the peak season, when the demand is very high for firewood, you can sell the cord of firewood for up to $400. However, this is not a steady situation since the demand is susceptible and keeps changing. 

Therefore, during the normative seasons with an average market, you can sell a cord of firewood for as low as $120 or as high as $180. Again, this will also depend on your operation’s location and the quality you have in the stack.

If you are operating your business from home in the first two years, even if you sell a single cord at $140 and sell ten cords per week, you can make $1400. 

While the business can be high in earnings and profits, it is inconsistent. The case is not necessary to always remain the same, so no certain amount can define the number of dollars you will earn by the end of the month. 

Conclusion

We have dedicated this entire article to proposing steps for how to start a business. This is all we could have done for you now, it is on you to use the information and put it to the right use.