Sawmill business plan with calculations 2021
Despite the availability of a large number of equipment and machinery for construction work, in Russia there remains a demand for products such as scaffolding. It would seem a simple device, but without it there is no way for the masters to rise to the proper height. Hence the question arises, why not develop a business in the production of scaffolding, because any demand generates supply.
Starting investments - from 300,000 rubles.
Market saturation is low.
Difficulty starting a business - 4/10.
Market for this equipment
According to statistics, the volume of products produced in this area annually is about 15 million square meters. meters or 8.5 million rubles. Which indicates the profitability of the business in the sale and production of forests.
If you make a preliminary estimate, you can get approximate data:
This indicates that there are great prospects for achieving success, the main thing is to apply the right strategy and develop it.
Tip: in order to increase profit growth, it is necessary to focus not only on the production of scaffolding and their sale, but also on the lease of equipment.
Stages of building a business plan
In addition, in order to lay the foundation for business development, you need to take into account certain features that will play an important role in the correct development of the entire event.
Investments: from 500 thousand rubles
Payback: from 4 months
Taking into account the climatic features of our country, the procurement and sale of firewood can become a good source of income, especially in rural areas.
Logging, sawing and selling firewood is a great opportunity to make good money even if you don't have a business plan. The advantage of this type of earnings is that it does not require large expenses and arrangement for doing business. Firewood can be sold to private house owners.
It is necessary to clearly understand how quickly the products are sold. If you plan to sell firewood directly with logs, you can take them to the client from the plot. The main peak of sales falls on autumn-winter, but it makes sense to prepare them in the summer.
The room should be dry and ventilated, well lit, because dry firewood is more in demand. It is better to harvest birch for sale. Another important point: decide in what form you will sell them: logs or logs. The cost per cubic meter will also depend on this.
Since this type of business has seasonal characteristics, you need to take care of the client base in the spring and summer. At this time, you can sell firewood to barbecue, bath and sauna owners.
What is required for implementation?
As already mentioned, the list of necessary things for running this business is minimal. In order to procure and sell goods, you need to issue a forestry permit for felling and logging, as well as find dry storage facilities. In this case, you also cannot do without helpers and a vehicle.
Step-by-step startup instructions
For many people thinking about their business, their own sawmill is associated with a small candle factory, the ownership of which in pre-revolutionary times was considered an extremely reliable business, albeit moderately profitable. Actually, therefore, on the forums you can often read posts on the topic: "there is a desire to start your sawmill." Entrepreneurs make seemingly ironclad arguments in favor of this idea. First, Russia is a forest country, so there should be no problems with raw materials. Secondly, lumber is a traditional building material, which means that with demand, according to the logic of things, everything is in order. Thirdly, a ready-made and very detailed business plan for a sawmill - a kind of "road map" - can be found without any problems.
However, stubborn statistics show that over 70% of newly opened sawmills go broke. Let's try to figure out what needs to be done to be among the remaining 30% of the lucky ones.
State of the industry and business specifics
Lately, timber processing has been on the rise: 3% and 5.7% growth each in 2021 and 2021, respectively. This is largely due to the start of trading on the electronic exchange in St. Petersburg, which eliminated the factor of mediation and protectionism. The accompanying pellet production is developing especially strongly.
As for sawnwood - the products of sawmills - the production of sawn timber appears to be stagnating. After falling by 12% in the period from 2021-2021, there was a so-called 4.8% rebound.
“In fact, the sawmill business is experiencing market transformations, where there is a demand for deeper processing. Instead of planks, today you need to make doors and frames, instead of logs - log cabins ”, - comments an expert on timber processing Mikhail Yagodov. According to him, the cost of sawn timber on the market sharply reduces and even takes away the profitability of the sawmill.
But what is interesting: in Russia, almost 90% of sawn timber is coniferous, while the output of sawn hardwood is unacceptably small and does not meet market needs. But here, too, the niche is being quickly filled with powerful players. In general, an entrepreneur dreaming of his own sawmill needs to be prepared for “stifling” competition with leaders, in particular, with Sawmill 25, Segezha Group enterprises, and so on.
“They have their own forests, and the best equipment, and excellent logistics,” the bankrupt businessman Vasily Ganza explains the peculiarities of the business at the sawmill.
What is a sawmill finished product
The main consumers of products for sawmills are builders of all stripes, from shabashniks to the largest construction trusts. They dictate the demand for the following sawn timber:
- dry or wet board;
- blocks for cladding;
- trolley; li >
- truncated rafter log;
- rounded log.
A sawmill is a workshop in which wood is processed using special machines. Today this business can be called one of the most relevant and demanded, which makes such a project attractive. This is associated with an increase in the volume of construction of summer cottages, houses, baths, as well as prefabricated wooden structures. Below is a business plan for a sawmill with calculations, which can help you understand the features of the direction.
Sawmill Market and Competitor Analysis
Any business plan starts with analytics of the market and its main players. This will help you to accurately determine the possibility of entering the industry, to understand the profitability of the market, to realize with which of the competitors you will have to fight and what methods are used for this. In order to analyze the market, it is recommended to consider the following factors:
- You need to understand if this industry has any prospects. As mentioned above, sawmills are a fairly relevant type of business, which are in demand due to the increased volumes of low-rise construction. However, in different regions the situation may be different.
- How many sawmills and similar businesses operate in your area. By answering this question, you will be able to understand what competitors you have and how many there are. Among the direct competitors of sawmills are large manufacturing companies that can cover large market volumes.
- How affordable are the raw materials and how easy it is to sell the finished product at the desired price. This factor will help you understand how quickly you will put your business on stream, and how soon it will start bringing you stable profits.
A good option would be to study not only your direct and secondary competitors, but also logistics in the region. The logging process involves the use of a rather complex logistic system. At the initial stage, the wood is transported to the sawmill, after processing the materials are sent to the client. Remember that a very important factor will be the availability of good roads and approaches to the business point in the region. If this condition is not met, your costs may increase significantly due to logistics costs.
Remember, too, that raw materials must be readily available. This is important if you want to establish a continuous supply of timber. In most regions of the Russian Federation, timber removal and deforestation will be challenging. Be sure to check local laws when choosing a location.
Summary of the future project of the sawn timber company
The main goal of the project, for which a business plan for opening a sawmill with calculations is being written, is the creation of an organization for the production of sawn timber. Lumber is one of the most widely used building materials today. It is used not only for the construction itself, but also for the exterior and interior decoration of buildings. Among the prerequisites for starting such a business may be:
- shortage of available building materials;
- increased interest of private investors in construction;
- development of housing infrastructure;
- low level of competition.
The technological algorithm includes the supply of material for harvesting with scaffolding, its sawing and planing, and then marketing. The material can be sold both wholesale and retail.
How to take a logging site for deforestation Business for deforestation
Every novice entrepreneur, at the initial stage of his activity, thinks in which industry to organize his business. Deforestation as a business can be very profitable. Perhaps it is worth considering this business idea in more detail? So, let's begin.
You need to start cutting wood from the area where this whole process will take place.
It is proposed to legally arrange a plot for different purposes, and there can be a lot of them: cutting down for the preparation of firewood, for the construction of roads, etc. Which one is most suitable for your goals, or such is, of great importance for registration It has.
Based on Russian legislation, logging is possible only through the lease of a site. It is not always easy to find a site convenient from the point of view of access roads, with the required area outside the swampy area, and it should be borne in mind that such a site on average ensures deforestation for three years. Further, a prerequisite will be the execution of a forest plantation agreement or, more simply, a document permitting the export of forest outside the plot.
After the place is found, the documents are drawn up, it is necessary to start solving practical problems, for example, to find a felling team, to determine the place where the team will be located. The provision of working conditions depends on this. It is necessary either to organize change houses on the spot, with normal living conditions, as well as catering. Or deliver people to and from work every day. Although, as an option, you can cut down the forest using special equipment, if there is a large area of the site.
An important question regarding the choice of equipment for work at all stages, from the tree shaft to removal. Can be rented.
It is most profitable to sell the cut down timber as lumber. Purchase a sawmill and hand over lumber all year round. Sell - for firewood, pulp mills.
As soon as the deforestation is finished, it is necessary to start cleaning up the deforested area. Free the area from tall stumps, debris, rotten wood. Otherwise, your site will not be accepted, moreover, failure to eliminate comments can lead to a huge fine and refusal to lease further. We hope our article will help you organize a forestry business.
forestry business from scratch