Starting out

[arbclimber]

If you are serious about starting on a tight budget, forget about image and cool machinery, that comes later......

 

 

can you start on a tight budget? ive spent 40k so far not including the hilux

 

 

IMO you wont see a decent ROI on £40k for startup. Firewood processing is very labour intensive so most of the return will be paying you for your time.

[renewablejohn]

My barn has a 30 foot rising to 45 foot roof space so height isn't a problem and it's use will allow me to maximise upon the use of space available to store processed wood.

 

I am going to be building a barn for firewood this year and I have been considering potato crates for stacking to utilise the height.

 

I use IBC container frames for stacking logs 3 high safely and IBC with the plastic bottle still inside with the tops chopped off for storing woodchip and wood pellets. Forklift has pallet rotator for emptying containers.

[davetaz]

can you start on a tight budget? ive spent 40k so far not including the hilux

 

 

IMO you wont see a decent ROI on £40k for startup. Firewood processing is very labour intensive so most of the return will be paying you for your time.

 

I started this time last year with huge amount of support and info (and timber) from arbtalk.

Already had L200, spent less than £10k and have everything I need to hopefully sell up to 200 cubic metres/year for the next 3 years, if that works I may look at expanding.......and if it doesn't work out that way I won't be in financial trouble

[arbclimber]

IMO you wont see a decent ROI on £40k for startup. Firewood processing is very labour intensive so most of the return will be paying you for your time.

 

I started this time last year with huge amount of support and info (and timber) from arbtalk.

Already had L200, spent less than £10k and have everything I need to hopefully sell up to 200 cubic metres/year for the next 3 years, if that works I may look at expanding.......and if it doesn't work out that way I won't be in financial trouble

 

Dont really understand why you put someone elses post under my name, with my post under it mate. Dont even know how you did it actually.

 

Not even sure if you agree with me or not.

 

Now I see, this thread seems to have gone a bit odd. Same happened when I posted

Edited April 29, 2010 by arbclimber
who knows

[baz]

IMO you wont see a decent ROI on £40k for startup. Firewood processing is very labour intensive so most of the return will be paying you for your time.

 

I started this time last year with huge amount of support and info (and timber) from arbtalk.

Already had L200, spent less than £10k and have everything I need to hopefully sell up to 200 cubic metres/year for the next 3 years, if that works I may look at expanding.......and if it doesn't work out that way I won't be in financial trouble

 

It is imperative with any business venture to watch your costs be they capital investment, overheads or in labour and materials. I've run some spreadsheets and firewood doesn't look a money maker at all but I'm in the fortunate position I have free days for my staff to throw into the venture. So, effectively their labour is already covered by another business and is waste to that business. I'm just turning what would presently be their non productive time (in quiet trading periods) into a saleable comodity (firewood). If you look at ROI then with interest rates what they are specualtion on anything is better at the moment. I prefer to look at covering depreciation and costs then anything on top is a bonus - basically pay day or dividends. At least I wont be running out of wood for my own home fire this winter.

 

Thanks everyone for their input, it's been tremendously helpful. I'm really quite excited about doing something new so will go into it with a great amount of energy. 200 tons later it may be different but I'll find that out in a few months.

[Dave Martin]

It is imperative with any business venture to watch your costs be they capital investment, overheads or in labour and materials. I've run some spreadsheets and firewood doesn't look a money maker at all but I'm in the fortunate position I have free days for my staff to throw into the venture. So, effectively their labour is already covered by another business and is waste to that business. I'm just turning what would presently be their non productive time (in quiet trading periods) into a saleable comodity (firewood). If you look at ROI then with interest rates what they are specualtion on anything is better at the moment. I prefer to look at covering depreciation and costs then anything on top is a bonus - basically pay day or dividends. At least I wont be running out of wood for my own home fire this winter.

 

Thanks everyone for their input, it's been tremendously helpful. I'm really quite excited about doing something new so will go into it with a great amount of energy. 200 tons later it may be different but I'll find that out in a few months.

 

Pretty much ditto ... I see my main source of income as property speculation but whilst I tap my toes and twiddle my thumbs waiting for something to sell I can utilise my time and for a very modest investment test the viability of the firewood market. I intended to limit my investment to 20k and as yet have only spent around 7k (I already had a tractor). I have two woodburners and any storage facilities that I build will enhance my properties value so its a no risk enterprise apart from the bad back, shoulder, hip, general lack of fitness due to being to fatigued to go in the gym

[arbclimber]

Decided not to quote anyone in my response as the quoting function seems to have gone a bit odd on this thread.

 

My original opinion was that it would be hard to make a decent ROI having spent 40k on a firewood business, and ill stick with that. There are so many selling logs who source the wood as a bi-product from tree work (for free) that anyone buying in wood to process is already at a competitive disadvantage.

 

As someone said, if you are simply doing it to keep ticking over, or to keep staff busy at quiet times then thats different. I dont agree with the lack of opportunity for speculation by investment in the current time though.

[farmer_ben]

40k investment is scary in my eyes, and yeah will take an age to see a return. surely it could be done cheaper? depends what sort of empire your looking to creat i suppose. In my first year I have spent bout 1.5k I reckon (already had tractor and bench), sold 6k's of firewood and 2/3rds of that is profit i'd say.

 

there are loads of people round here selling firewood but i'm gobbling up their customers by supplying seasoned dry wood, the other guys are big producers and doesn't seem they can wait for wood to season?!

[csservices]

I must be getting old, 40k! investment to sell logs I started out with an Stihl 028, an axe and ancient landy hicap, granted it was back when timber was still considered as a problem or perks of the job when out fencing and hedgelaying, now if you ask if you can have any timber you've cut out of a hedge or a windblown tree when clearing a fence line, it's either how much will you give me for it or no we want it ourselves only for it to sit rotting where its left for the next few years

[Dave Martin]

I must be getting old, 40k! investment to sell logs I started out with an Stihl 028, an axe and ancient landy hicap, granted it was back when timber was still considered as a problem or perks of the job when out fencing and hedgelaying, now if you ask if you can have any timber you've cut out of a hedge or a windblown tree when clearing a fence line, it's either how much will you give me for it or no we want it ourselves only for it to sit rotting where its left for the next few years

 

Well I suppose thats good that the general public are starting to see wood as a valuable commodity and as for the amount to invest in startup it really has got to be tailored to your targeted REALISTIC turnover.