Business plan for opening a sawmill
In this regard, there is a need for sawmills. They almost completely provide the market with wood materials. Treated finished boards will save a lot of time during construction. As a result, many people ask the question of how to correctly draw up a sawmill business plan. Let us consider the answer to this question in more detail below.
First of all, before starting to draw up a business plan for the sawmill, you need to choose a place for its placement in remote areas of the city. In this case, you will have to rent land. It is advisable to choose a place for a sawmill away from municipal organizations and the private sector, closer to the forest. This is important. This location will allow purchasing standing timber. This is very beneficial. Since such a forest costs half the price of a regular one. The sawmill area should be divided into several sections:
It is desirable that there is a reservoir nearby - for supplying cold water. All this is very important for the organization of this project.
Drawing up a business plan
This action must be taken responsibly. The business plan for the sawmill needs to be carefully thought out. It should include provisions such as purchasing equipment, hiring workers, registration, etc.
Before organizing this case, you should conduct a marketing analysis of the state of the market in the region. It is advisable to draw up a business plan for a sawmill with the help of specialists. It should include the following sections:
- identification of potential customers;
- overview of business competitors.
An enterprise such as a sawmill must have: a warehouse for raw materials and finished products, production and repair shops, a shower room and a toilet, a rest room for staff and a dressing room, as well as offices for management and engineering workers.
Today, construction is one of the most profitable and actively developing industries, and wood is considered an elite and demanded material.
It is actively used for the construction of private houses, cottages and other structures. Wooden buildings are beautiful and reliable, they bring a person closer to nature, and therefore a rejection of the use of wood in the coming years is not expected. Being engaged in the manufacture of boards, you will always find an interested client and will not be left without profit.
But, like any other business, the production of boards on a sawmill has its own difficulties and nuances.
In addition to the relevance of the direction, the advantages of the sawmill can also be attributed to the relative cheapness of the equipment. Indeed, the installation itself for sawing logs, for all its functionality, is not too expensive. But this business implies many other significant costs associated with the purchase of raw materials, lease of space (and it will take a lot) and others. In any case, the initial capital should be considerable.
To use your funds as efficiently as possible and try to save money, you need to have a clear business plan and a clear idea of what your job will be like.
How to organize a sawmill: business plan
A business plan can always be ordered from professionals who provide such services, this will simplify your task. But this, again, is money, and you already have enough costs.
If you nevertheless decide to think it over yourself, the first step should be standard: it is market analysis.
Pay attention to the following points:
- Presence / absence of obvious competitors;
- Average cost of products manufactured in your city;
- Potential customers. Immediately it is worthwhile to outline the companies that can subsequently cooperate with you, and make sure that this is so.
Sawmill is a workshop in which wood is processed using special machines. Today the sawmill business is one of the most profitable and in demand, which is associated with the growth in the construction of houses, summer cottages and baths, the popularity of prefabricated wooden structures. An approximate business plan for opening such a business is presented below.
Previously, a sawmill was a machine that was used to process and cut wood. Wooden beams and logs are the main raw materials. Recently, workshops in which the processing process takes place began to be called a sawmill.
Speaking about the opening of a sawmill, it should be noted right away that it is advisable only in those areas where there is a possibility of purchasing cheap raw materials or leasing a land plot where deforestation is permitted. Otherwise, there is a high probability of negative work.
According to statistics, more than 70% of sawmills are closed during the first year of operation. As a rule, this is due to illiterate paperwork, the purchase of cheap equipment, the wrong choice of suppliers or a careless approach to business organization. In order to avoid problems and keep your business, you should carefully analyze the market in your area and draw up a business plan.
Where to start?
Starting a business is worth clarifying a few points:
- if there are competitors in your region and how many there are;
- be sure to check if there is a ban on deforestation in the vicinity and if it is in the project;
- evaluate the pricing policy;
- find out what types of wood are in demand.
Experts recommend launching the project in winter, when demand for products falls. Then there is time for preparing workshops, debugging equipment.
You also need to decide on the products. It can be edged or unedged board or timber. Better to start with one type, then expand the business.
After the assessment has been made, you can proceed to the registration of all the necessary papers according to the following scheme:
Many consider a business plan to open a sawmill as a complex business with a huge initial investment, but this is not always true: to implement a project and start earning, very small amounts are needed. And the perspective and relevance of the idea will make it possible to expand and develop the business.
Sawmill is one of the most promising areas today due to the active development of construction, an increase in the number of projects for both individual housing development and multi-storey office buildings. Houses are being built quickly using modern technologies, and for their construction you need a lot of timber, boards, and other woodworking products.
Therefore, the demand for sawn timber is high and opening a sawmill will be an excellent opportunity to create a profitable business.
Choosing the current direction
Before organizing a sawmill and starting a business plan, you need to choose a suitable direction. First, you need to analyze the industry in the region in terms of the competitive environment, determine the most demanded products (this can be a bar, unedged board, euro lining).
It is imperative to inquire about the presence of potential customers (furniture factories, construction firms, private buyers, workshops for the creation of doors and windows, wholesale markets). It is also advisable to evaluate the suppliers of raw materials. When deciding which sawmill is better to buy for a business, they usually choose from several options.
Common types of sawmills:
1) Ribbon - most often used both in private households and in small business organizations. The principle of operation is based on the circulating motion of a band saw rotating on two pulleys. One of them drives an internal combustion engine or an electric motor. Saws of simple design, low cost, small dimensions. Minimum waste, can handle large diameter logs, cut width 2. meters, small cut, high quality of the final product. Easy to install (no foundation), set up, gives a large output.
2) Frame - high energy consumption, requires a foundation for installation. The productivity is high, but the volume of sawdust is considerable. More suitable for large enterprises that also process sawdust. Among the advantages, it is worth noting excellent quality, high level of productivity, stable operation in any conditions, long service life, simplicity and ease of use, reliability.
3) Disk - great capabilities and high reliability, easy and efficient cutting, but very high cost and scale, gives a small output of finished products. But it does not require constant sharpening. Among the advantages are the ability to work with different cutting patterns, simple installation, easy transportation, high accuracy and speed, productivity.
4) Tire (chain) - according to the principle of operation, it is similar to tape: here the log is fixed stationary, the dissolution is carried out with a saw on a movable carriage. The work is simple, the equipment is mobile, has a high level of wear resistance, reliability, easy repair, low weight and dimensions, but the cut is wide, you will often have to change the chain.
An increase in the level of well-being of Russians has led to the fact that new buildings are actively growing on the territory of the country. This process contributes to a stable demand for building materials and spurs the growth in popularity of timber products.
Despite the fact that it is difficult to immediately discern all the advantages of the business of opening a sawmill, however, in comparison with other activities, this enterprise can be easily started by any novice entrepreneur.
The trend of recent years shows an increase in the profitability of opening a sawmill as a type of business. The right start and long-term business planning will allow you to receive stable and high profits.
The enterprise should not engage in any logging. Raw materials (timber) will be purchased from suppliers and processed into a final product.
How to start production correctly?
Both in big cities and in the outskirts, there is a constant construction of new facilities for which wood materials are actively used. The construction of wooden dachas, baths, log cabins has become very fashionable, the construction of which consumes a huge amount of timber.
The demand for wood in the domestic market is very high. Another factor in favor of the sale of the final product on the territory of the country is the increase in state duties on the export of timber.
All the attractiveness of an idea can be calculated even at the planning stage.
However, the nice thing is that there is no clear-cut monopolist in this area.
Initially, it is worth planning to open a small-scale production. This will allow you to flexibly respond to market changes.
A very important stage in business planning is its registration. It is necessary to get rid of the temptation to register as a private entrepreneur.