Firewood Business Plan Template

Firewood Business Plan Template

If you want to start a firewood business or expand your current firewood business, you need a business plan.

The following Firewood business plan template gives you the key elements to include in a winning Firewood business plan.

You can download our Firewood Business Plan Template (including a full, customizable financial model) to your computer here.

 

Firewood Business Plan Example

I. Executive Summary

Business Overview

[Company Name] is a new firewood business located in [location]. We aim to be the #1 source of firewood for residents and local businesses who depend on firewood as their source of heat or for recreation. We offer numerous types of firewood to enjoy, including maple, oak, birch, and ash. Customers can order firewood by the cord or in small quantities.

Products Served

[Company Name] provides the highest quality firewood sourced from local forests. All firewood is bought from local vendors who make efforts to reforest the areas they cut down. Some of the types of firewood we sell include:

• Maple
• Oak
• Birch
• Ash
• Fir
• Elm

Customers can get firewood by the cord, by pallet, or in smaller quantities. Prices will vary depending on the type of firewood and quantity ordered. We also offer delivery for commercial orders for an additional fee.

Customer Focus

[Company Name] will provide firewood to both residential and commercial customers. Residents primarily use firewood for heat or for recreation, such as when building a small bonfire in their backyard. Commercial customers include a variety of industries, such as campgrounds, restaurants, and hotels. The current residential demographics for [location] are as follows:

• 45,209 residents
• Average income of $46,000
• 54.3% married
• Median age: 43 years

Management Team

[Company Name] is led by [Founder’s Name] who has worked in the lumber industry for [X] years. He has worked in a variety of roles in the industry which has given him a well-rounded knowledge of all things lumber and firewood. He most recently worked as a manager for a lumber store that sold a large quantity of firewood each year. Therefore, he has extensive knowledge of the industry and of firewood that will prove invaluable to the business. Though he has never run his own business before, his experience as a manager has given him knowledge of the management and operations sides of the business.

Success Factors

[Company Name] is uniquely qualified to succeed due to the following reasons:

• There are few businesses devoted to the exclusive sale of firewood, which means there will be little competition.
• [Founder’s Name] has numerous connections within the industry that will help when obtaining inventory and supplies.

Financial Highlights

[Company Name] is currently seeking $670,000 to launch. Specifically, these funds will be used as follows:

• Land purchase: $200,000
• Store design/build: $250,000
• Equipment and initial inventory: $100,000
• Working capital: $120,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Top line projections over the next five years are as follows:

Financial Summary	FY 1	FY 2	FY 3	FY 4	FY 5
Revenue	$560,401	$782,152	$1,069,331	$1,379,434	$1,699,644
Total Expenses	$328,233	$391,429	$552,149	$696,577	$776,687
EBITDA	$232,168	$390,722	$517,182	$682,858	$922,956
Depreciation	$7,000	$7,000	$7,000	$7,000	$7,000
EBIT	$225,168	$383,722	$510,182	$675,858	$915,956
Interest	$6,016	$5,264	$4,512	$3,760	$3,008
Pre Tax Income	$219,152	$378,458	$505,670	$672,098	$912,948
Income Tax Expense	$76,703	$132,460	$176,985	$235,234	$319,532
Net Income	$142,449	$245,998	$328,686	$436,864	$593,416
Net Profit Margin	25%	31%	31%	32%	35%

 

II. Company Overview

You can download our Firewood Business Plan Template (including a full, customizable financial model) to your computer here.

Who is [Company Name]?

[Company Name] is a new firewood business located in [location]. We aim to be the #1 source of firewood for residents and local businesses who depend on firewood as their source of heat or for recreation. We offer numerous types of firewood to enjoy, including maple, oak, birch, and ash. Customers can order firewood by the cord or in small quantities.

[Company Name] is led by [Founder’s Name] who has [X] years in the lumber industry. After several years managing a lumber store, [Founder’s Name] decided to branch out on his own and create a firewood business. His extensive knowledge of firewood and the industry will prove invaluable to the business.

[Company Name]’s History

[Company Name] was incorporated as an S-corporation on [date of incorporation]. The operations of the company are currently being run out of [Founder’s Name]’s home, but the business will move to the commercial location once the property is built.

Since incorporation, [Company Name] has achieved the following milestones:

• Located a plot of land to build the store and keep our firewood inventory
• Developed the company’s name, logo, and website located at [website]
• Determined equipment and necessary supplies
• Began recruiting key employees with experience in the lumber industry

[Company Name]’s Products/Services

[Company Name] provides the highest quality firewood sourced from local forests. All firewood is bought from local vendors who make efforts to reforest the areas they cut down. Some of the types of firewood we sell include:

• Maple
• Oak
• Birch
• Ash
• Fir
• Elm

Customers can get firewood by the cord, by pallet, or in smaller quantities. Prices will vary depending on the type of firewood and quantity ordered. We also offer delivery for commercial orders for an additional fee.

 

III. Industry Analysis

Humans have been burning wood since the dawn of the species. Therefore, firewood is a staple product for many families, providing warmth and a source of recreation. All year round, humans look to firewood to provide an ambiance and a source of heat and this is not expected to stop anytime soon. People look forward to firewood season and continue to buy it year after year.

The main challenge to the firewood industry is the pushback due to environmental concerns. With the increasing concerns around logging and deforestation, many individuals are using less firewood and finding alternatives. We understand that this can be a challenge to our business, but the demographics of our rural town indicate that this is not a major concern for the locals. Overall, the lumber industry continues to grow, and the firewood industry is no exception.

Furthermore, [Company Name] aims to source all its firewood from local vendors who have sworn a pledge to harvest timber responsibly and take action to reforest affected areas. Considering all these factors, we expect [Company Name] to be a successful business.

 

IV. Customer Analysis

Demographic Profile of Target Market

[Company Name] will serve the community residents and businesses of [location] and its surrounding areas. The local area is full of middle-class rural Americans and local, outdoors-focused businesses that utilize firewood in much of their operations.

Customer Segmentation

The Company will primarily target the following customer segments:

• Residents who depend on wood for heat: Though most homes use natural gas for heat, some residents still depend on wood to warm their homes. We aim to be their year-round supplier for their firewood.
• Residents who use firewood recreationally: Most residents only need firewood in the fall and winter for bonfires and to use in their fireplaces. We expect a good portion of our business will come from these customers during the colder months.
• Local businesses that use firewood: Local businesses that use a lot of firewood, such as campgrounds, will also be a major customer segment. We expect that these businesses will be the primary source of our income and sales.

 

V. Competitive Analysis

Direct & Indirect Competitors

The following establishments are located within 20 miles of [Company Name] and therefore provide indirect or direct competition.

Dean’s Firewood Supply
Dean’s Firewood Supply has been a major supplier of firewood for [location] for decades. The business serves both residential and commercial customers in the local area. Dean’s has a large offering of firewood options including ash, oak, and maple. Customers can order their firewood by the cord or pallet and can get their wood delivered for an additional cost.

Rivertown Lumber Company
Rivertown Lumber Company is the #1 seller of lumber in the area. Whether you need lumber to build a deck or build a small table, Rivertown Lumber has all the lumber you need for your projects. During the summer and fall seasons, Rivertown Lumber also sells a moderate selection of firewood for local residents, making it a minor competitor during this time of year.

Jack’s Campground Supplies
Jack’s Campground Supplies provides everything you could need to enjoy the outdoors. From camping gear to fishing supplies, Jack’s has you covered. Jack’s is a very popular place for residents to buy firewood for their camping adventures or just for their backyard, so it provides some indirect competition.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

• Management: [Founder’s Name] has extensive knowledge and experience in the lumber and firewood industries which will improve invaluable to the business.
• Affordable pricing: Our pricing model will keep the average American in mind. We aim to sell all of our firewood products for a competitive and moderate price.
• Relationships: [Founder’s Name] has extensive experience in the local lumber industry and has made connections with local timber companies and vendors. These connections will prove invaluable to gathering our initial inventory and creating an initial client base.

 

VI. Marketing Plan

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

[Company Name] seeks to position itself as the #1 source of firewood in [location]. Customers can expect to receive high-quality firewood for a moderate price.

The [Company Name] Brand

The [Company Name] brand will focus on the Company’s unique value proposition:

• Offering a wide collection of high-quality firewood options
• Convenient location
• Comfortable, customer-focused environment
• Moderate price point
• Providing excellent customer service

Promotions Strategy

[Company Name] expects its target market to be residents and local businesses located within a 20-mile radius of the location. The Company’s promotions strategy to reach this audience includes:

Pre-Opening Events
Before opening, [Company Name] will organize pre-opening events designed for prospective customers, the local community, and press contacts. These events will create buzz and awareness for [Company Name] in the area.

Local Publications
[Company Name] will announce its opening several weeks in advance through publicity pieces in multiple local newspapers and publications. Regular advertisements will run to maintain exposure to relevant markets. Community newspapers, outdoorsy publications, and similar channels will be a major promotion effort.

Website
[Company Name] will develop a professional website that showcases the products we sell and our commitment to excellence. We will also invest in SEO so that the company’s website will appear at the top of search engine results.

Social Media Marketing
Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The Company will use social media to develop engaging content in terms of various forms. This will include educational posts about different types of firewood and how to store and use firewood properly.

Word of Mouth Marketing
[Company Name] will encourage word-of-mouth marketing from loyal and satisfied customers. The Company will use recommendations and word-of-mouth marketing to grow the customer base through the network of its existing customers. The Company will be incentivizing its existing customer base to encourage their friends to come and buy our firewood for the first time.

Special Offers
Offers and incentives are an excellent approach to assisting businesses in replenishing the churn in their customer base that they lose each year. [Company Name] will introduce special offers to attract new consumers and encourage repeat purchases, which will be quite advantageous in the long run

Pricing Strategy

[Company Name]’s pricing will be moderate, so clients feel they receive great value when buying our firewood. Our prices will be competitive with local competitors to create an ongoing demand for our products.

 

VII. Operations Plan

To execute [Company Name]’s business model, the company needs to perform many functions, including the following:

Service Functions

• Order firewood from local vendors
• Cut, gather and store firewood for sale
• Help customers load their orders into their vehicles
• Deliver firewood to commercial customers
• Provide customer service

Administrative Functions

• Social media and website management
• Bookkeeping
• Marketing
• Hiring and training staff
• Maintenance functions
• Other general administrative functions

Milestones

The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:

Date	Milestone
[Date 1]	Finalize lease agreement
[Date 2]	Design and build out [Company Name]
[Date 3]	Hire and train initial staff
[Date 4]	Kickoff of promotional campaign
[Date 5]	Launch [Company Name]
[Date 6]	Reach break-even

 

VIII. Management Team

Management Team Members

[Company Name] is led by [Founder’s Name] who has worked in the lumber industry for [X] years. He has worked in a variety of roles in the industry which has given him a well-rounded knowledge of all things lumber and firewood. He most recently worked as a manager for a lumber store that sold a large quantity of firewood each year. Therefore, he has extensive knowledge of the industry and of firewood that will prove invaluable to the business. Though he has never run his own business before, his experience as a manager has given him knowledge of the management and operations sides of the business.

Hiring Plan

[Founder’s Name] will serve as the Store Manager. In order to launch the business, we need to hire the following personnel:

• Assistant Manager (1 to start)
• Sales Associates (3 to start)
• Drivers (2 to start)

 

IX. Financial Plan

You can download our Firewood Business Plan Template (including a full, customizable financial model) to your computer here.

Revenue and Cost Drivers

[Company Name]’s revenues will come primarily from the sale of firewood. The company will sell its products directly to customers or commercial businesses.

The major cost drivers for the company will include labor expenses, marketing expenses, expenses from purchasing and maintaining inventory, the lease on the commercial space, and the maintenance costs for the vehicles and equipment.

Capital Requirements and Use of Funds

[Company Name] is currently seeking $670,000 to launch. Specifically, these funds will be used as follows:

• Land purchase: $200,000
• Store design/build: $250,000
• Equipment and initial inventory: $100,000
• Working capital: $120,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Key Assumptions

The following table reflects the key revenue and cost assumptions made in the financial model:

	Number of customers per day
FY 1	75
FY 2	100
FY 3	125
FY 4	150
FY 5	175
Annual Lease (per location)	$50,000

 
5 Year Annual Income Statement

		Year 1	Year 2	Year 3	Year 4	Year 5
Revenues
	Product/Service A	$151,200	$333,396	$367,569	$405,245	$446,783
	Product/Service B	$100,800	$222,264	$245,046	$270,163	$297,855
	Total Revenues	$252,000	$555,660	$612,615	$675,408	$744,638
Expenses & Costs
	Cost of goods sold	$57,960	$122,245	$122,523	$128,328	$134,035
	Lease	$60,000	$61,500	$63,038	$64,613	$66,229
	Marketing	$20,000	$25,000	$25,000	$25,000	$25,000
	Salaries	$133,890	$204,030	$224,943	$236,190	$248,000
	Other Expenses	$3,500	$4,000	$4,500	$5,000	$5,500
	Total Expenses & Costs	$271,850	$412,775	$435,504	$454,131	$473,263
EBITDA		($19,850)	$142,885	$177,112	$221,277	$271,374
	Depreciation	$36,960	$36,960	$36,960	$36,960	$36,960
EBIT		($56,810)	$105,925	$140,152	$184,317	$234,414
	Interest	$23,621	$20,668	$17,716	$14,763	$11,810
PRE-TAX INCOME		($80,431)	$85,257	$122,436	$169,554	$222,604
	Net Operating Loss	($80,431)	($80,431)	$0	$0	$0
	Income Tax Expense	$0	$1,689	$42,853	$59,344	$77,911
NET INCOME		($80,431)	$83,568	$79,583	$110,210	$144,693
Net Profit Margin (%)		-	15.00%	13.00%	16.30%	19.40%

 
5 Year Annual Balance Sheet

		Year 1	Year 2	Year 3	Year 4	Year 5
ASSETS
	Cash	$16,710	$90,188	$158,957	$258,570	$392,389
	Accounts receivable	$0	$0	$0	$0	$0
	Inventory	$21,000	$23,153	$25,526	$28,142	$31,027
	Total Current Assets	$37,710	$113,340	$184,482	$286,712	$423,416
	Fixed assets	$246,450	$246,450	$246,450	$246,450	$246,450
	Depreciation	$36,960	$73,920	$110,880	$147,840	$184,800
	Net fixed assets	$209,490	$172,530	$135,570	$98,610	$61,650
TOTAL ASSETS		$247,200	$285,870	$320,052	$385,322	$485,066
LIABILITIES & EQUITY
	Debt	$317,971	$272,546	$227,122	$181,698	$136,273
	Accounts payable	$9,660	$10,187	$10,210	$10,694	$11,170
	Total Liabilities	$327,631	$282,733	$237,332	$192,391	$147,443
	Share Capital	$0	$0	$0	$0	$0
	Retained earnings	($80,431)	$3,137	$82,720	$192,930	$337,623
	Total Equity	($80,431)	$3,137	$82,720	$192,930	$337,623
TOTAL LIABILITIES & EQUITY		$247,200	$285,870	$320,052	$385,322	$485,066

 
5 Year Annual Cash Flow Statement

	Year 1	Year 2	Year 3	Year 4	Year 5
CASH FLOW FROM OPERATIONS
Net Income (Loss)	($80,431)	$83,568	$79,583	$110,210	$144,693
Change in working capital	($11,340)	($1,625)	($2,350)	($2,133)	($2,409)
Depreciation	$36,960	$36,960	$36,960	$36,960	$36,960
Net Cash Flow from Operations	($54,811)	$118,902	$114,193	$145,037	$179,244
CASH FLOW FROM INVESTMENTS
Investment	($246,450)	$0	$0	$0	$0
Net Cash Flow from Investments	($246,450)	$0	$0	$0	$0
CASH FLOW FROM FINANCING
Cash from equity	$0	$0	$0	$0	$0
Cash from debt	$317,971	($45,424)	($45,424)	($45,424)	($45,424)
Net Cash Flow from Financing	$317,971	($45,424)	($45,424)	($45,424)	($45,424)
SUMMARY
Net Cash Flow	$16,710	$73,478	$68,769	$99,613	$133,819
Cash at Beginning of Period	$0	$16,710	$90,188	$158,957	$258,570
Cash at End of Period	$16,710	$90,188	$158,957	$258,570	$392,389