Logging is one of the most rewarding careers because there are so many opportunities to earn a profit. You could supply lumber to companies that make affordable wood items, premium furniture, or lumber for wall studs, decks, and plywood. That said, logging is also one of the most dangerous careers. In fact, logging workers have some of the highest on-the-job injury and fatality rates. To prevent accidents and maximize profits, you need to know how to start this type of business properly. Our guide to starting a logging company will set you on the right track the first time around. Read on to learn more.
Regardless of the industry, every business should perform some basic preliminary steps before launching. First and foremost, you must develop a business plan, which you will then use as the roadmap for your business. At the very least, your business plan should include the company’s goals, financial statements, marketing strategies, and market research. Additionally, you’ll want to incorporate the business and give it a name, as incorporating is one of the best ways to protect yourself from business operations. Because logging can be such a dangerous job, you’ll also want to bond and insure the business to protect yourself and your workers.
Accept Every Job and Get Your Own Woodlot
In the early stages of owning a business, every opportunity matters, which means you often need to take whatever jobs are available. Looking through local classified ads and social media postings for fallen or dead trees is a great way to find business opportunities. Over time, you’ll likely develop a regular customer base, and you’ll soon have the luxury of picking and choosing jobs. Unsurprisingly, the real money in logging is found in commercial logging—that is, supplying timber to companies and adopting a business to business (B2B) model. Essentially, a B2B model is only an option if you have your own woodlot. The problem is that woodlots are extremely competitive and expensive, so they’re not always a viable option for new businesses.
Invest in Quality Equipment Early
As you might suspect, a logging company requires a large arsenal of tools and equipment. Although most people aren’t going to chop down trees with an axe, you should still have an axe in your toolbox. Other necessary tools include splitting mauls and splitting wedges. You’ll want to invest in the necessary logging equipment such as a harvester and skid steer as well. It’s crucial that you purchase high-quality equipment because it’ll last much longer and maintain its resale value in the event you need to sell or upgrade equipment.
Before launching your business, make sure to research local and state regulations. Some states have specific requirements that prohibit certain logging practices, and if you don’t abide by their rules, the state could fine you or even close your business. We hope our guide to starting a logging company provided you with actionable guidance to jumpstart your career.