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starting own sawmill?

Started by redneck logger, October 21, 2009, 03:32:00 PM

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redneck logger

Hi everyone,I was just wondering if you could set up a small sawmill and make any money these day with the price of every thing.I was thinking something like a woodmizer lt70 and a edger in a small building.open thoughts on what you think.
got to love working in the woods

Ron Wenrich

You need to do a business plan.  The things you need to find are markets for sawn lumber, and a reasonable supply of logs.  Without either one of those legs, you will have a tough go.

If you're trying to only custom saw, then you need to look at your competition, and your potential markets.  What are you going to do to attract business away from your competitors?

Never under estimate the power of stupid people in large groups.

solidwoods

Just go looking for buyers (buyers first, choosing tools/scale/setup second).
Mills in your area may buy inventory also.
Talk to portable or small scale operators and see how business is.
Also the ability to produce as many different products you can will help diversify your business and allow it to meet market changes.
Get as many tools as you can for your money.  Just an expensive mill for a low production buisness can eat up all the cash.  You may also need other support equipment (depends on the business model) .
jim
Ret. US Army
Kasco II B Band mill
Woodworking since 83
I mill & kiln dry lumber, build custom furniture, artworks, flooring, etc.
If you mill, you'll be interested in some of my work in one way or another.
We ship from our showroom.
N. Central TN.

IVANX71

I am planning to open a sawmill with the LT15? I know that it is a small manual saw mill, but I hope it will be enough for start and later buy a larger model, if the business grows ;D.
Excuse me on my English, English is not my stronger side

redneck logger

ok 1.Im only 14 going on 15 so not planning any time some
2. The only competion around is a large mill down the road that doesnt do resaws they chip it,plus my cousin has a norwood 2000 nice mill i worked with him some throught the summer lots o manual work.
got to love working in the woods

WDH

Quote from: IVANX71 on October 22, 2009, 12:03:39 PM
I am planning to open a sawmill with the LT15? I know that it is a small manual saw mill, but I hope it will be enough for start and later buy a larger model, if the business grows ;D.

Ivan,

Keep us posted on how it is going.  Are there many portable sawmills in Croatia?
Woodmizer LT40HDD35, John Deere 2155, Kubota M5-111, Kubota L2501, Nyle L53 Dehumidification Kiln, and a passion for all things with leafs, twigs, and bark.  hamsleyhardwood.com

kderby

Wonderful to hear from Croatia, Nova Scotia and every other start-up in the world.  We share the joy of making sawdust even if the place and size of our operation differs.

I am four years into the process and have lost a lot of money and time as I "pay" for my "education."   I am here and continue to have hope. ::)

I am of the recent opinion that running a business is like running a race.  You might not win the first race.  Each time you run, you learn more.  Maintain good equipment, health and a steady training regiment (work), you stand a chance of success.  I started without a business plan.  That is more stupid than brave.  Certainly each situation is unique and you never know until you try.  If you are passionate and a hard worker, things will all work out right?   You have to know your costs and you have to know your market or you will work very hard until your passion is crushed and your money is all gone.  I may still pull it off but I have seen the dark side and am humbled by it. In running a race they call it the wall.  If you can make through the wall and finish......you win.  Plan your race carefully, train, and start prepared.  You won't get credit for running in a race.  You will get credit for completing a race.  To make money while making sawdust is a wonderful thing.
8) 8) 8) 8) 8) 8) 8)

rickywashere

the best part of the post is seeing a young person taking a interest in wood now and days so many kids stray from hard work.and look for the easy way out ...  the first reply was prolly the best one i have seen but i would say just starting out a smaller mill would work better for you have you looked at the timberking line of mills the 1600 with a few well placed addons would be ideal for you .. then upgrade as needed ... keep us posted and good luck

Ron Wenrich

Being only 14, you'll have lots of time to do very good research and develop a solid business plan.  It could be your senior project.  Research is your friend, and it helps you make contacts in the business. 

I would think the business plan would be useful in Croatia. 

I have found this formula works very well.  Profit = Lumber value - log costs - manufacturing costs.  Your business plan has to come up with those numbers. 

If your business is providing a service, then Profit = Income - manufacturing costs.  In both cases, marketing would be a part of the manufacturing cost, and shouldn't be overlooked.

Good post kderby
Never under estimate the power of stupid people in large groups.

fishpharmer

redneck logger, When I was fourteen my thoughts were about girls, hunting, fishing, trapping and trucks.
Not necessarily in that order ;)

Now over forty I am dreaming of sawmills

Good to see a young person get interested in an early age.  Even if saw milling doesn't become your occupation it's a mighty interesting hobby.

Although I think the fundamentals Ron W. pointed out are timeless.  The economic outlook could be different in ten years.
Built my own band mill with the help of Forestry Forum. 
Lucas 618 with 50" slabber
WoodmizerLT-40 Super Hydraulic
Deere 5065E mfwd w/553 loader

The reason a lot of people do not recognize opportunity is because it usually goes around wearing overalls looking like hard work. --Tom A. Edison

bandmiller2

Redneck,It takes a good Job to support a sawmill,do your duty with education,its tough but won't hurt you.Consider your mill a hobby,at least wile your learning, find a nitch,sell a finished product if you can.Example, make the old style oak slat lobster pots to sell to tourests.You will know when and if you can make a living with the mill,if not you have an education and a dandy hobby.Frank C.
A man armed with common sense is packing a big piece

DanG

Redneck Logger and Ivan, I'm very pleased to see you young folks taking such an interest and getting active at an early age.  I started wanting a mill in my twenties and didn't get one until my mid-fifties.  Huge mistake! :-\

You two have some tremendous opportunities ahead of you.  The younger you are, the better the opportunity.  RL, why not think about scaling back your dream and getting into it sooner?  You could follow the example of Teen-Swinger and TYB525 and have your own mill by the time you're 16 or 17.  If you did that, you could be an accomplished sawyer by the time you're ready to work your way through college with it. ;)
"I don't feel like an old man.  I feel like a young man who has something wrong with him."  Dick Cavett
"Beat not thy sword into a plowshare, rather beat the sword of thine enemy into a plowshare."

red oaks lumber

after you do the leg work about buisness possabilitys, and things look good, start with a good used mill (more mill for the money) don't buy an edger yet, you can edge on the mill, slower yes but, less money spent upfront. once things are rolling buy a edger there again used. you won't be using it that many hours per day. the lower your overhead the less wood you have to saw just to make payments. there is only 30 days each month, maybe you saw 12 days some month, are your monthly payments less than than your slowest month? something to keep in mind, not just the newbies but everybody.
i like to work for myself, not the bank.
the experts think i do things wrong
over 18 million b.f. processed and 7341 happy customers i disagree

redneck logger

yes im very interested in forestry i am also thinking about starting my own logging operation,oh by the way i go to the woods every saturday, to day we cut all white birch.
got to love working in the woods

Ironwood

All good comments.

I put myself thru college w/ a small woodshop in a rented garage. Used my Mom's for awhile. I used to sandblast redwood signs inside her garage inside of an old girl scout tent(held up by a recycled 2x4 framework) . I was breathing fresh air via an old hand dryer like you see in the public restrooms (took the heater element out), and into a surplus firefighter Scott mask.  :D It was a little HOT in there though. I had to keep everything sealed up as it was in a residential nieghborhood. I could tell some more stories, but suffice it to say, where there is a will there is a way. Follow your passion. You wont "have to work" you'll want to work. I have only "had to work" 4-5 years out of my entire life, I am 43. Super motivating, and fullfiling. Get an education FOR SURE. It will pay dividends throughout your life no matter what you do, or what your interest/ major.


             Ironwood (look thru my gallery, from humble start, to well,..... great blessings)
There is no scarcity of opportunity to make a living at what you love to do, there is only scarcity of resolve to make it happen.- Wayne Dyer

Meadows Miller

Gday

Welcome to the forum Ivan  ;) ;D 8) an Lt 15 will do it Mate  ;) I had a band about the size of an l 10 with 95cc Csaw powerhead when i was 15yo and use to do from 600 to 1200 bft 1.3 to2.7 m3  2x and some inch per day in building timber and a good day was around the 5000 mark  ;D 8) on 8x8 beams though  ;) :D :D with any manual mill you just have to keep your head down and your butt up and sawing and you can make a good living with it Just pick your market and who you deal with well Mate

Red i like your style Mate and its a good question to ask for a young Bloke your age I use to get told all the time that i was 14 going on 40 15 going on 50 and so on ;) :D ;D mum just thought  i was an old soul    ;) :D :D  :D ;D 8)

an lt 70s a nice machine and id love an edger Meself mate  ;)  :D ;D but im not that far along myself mate I sett meself Back afew years chasing the first thing on Fp's/James's list there for awhile  mate :o :) ??? ::) ;) :D :D :D but thats life and we all make choises good and bad based on the info or how we feel at the time Mate  ;)

but you could start sooner and smaller say a Csm or smal bandmill as thats what  started on at about 13 even though it was mainly a sideline to dads log building business at the time it made us some bloody nice money for what we had invested  ;) and it also didnt have to be worked all the time to do it weekends mainly  ;) ;D 8) Dads rule to support my Habbit  :D ;D was that any machine had to be built out of pocket or paid off over a short term  ;) eg an Lt15 sould only realy take you a couple of months of w/end sawing to pay of at 0.35 a bft then its yours forever  ;) ;D 8)


It sounds like log supply wont be your issue but log supply on a larger scale needs planing and good contacts in the industry i have 4 companys i could ring tomorrow and bookup say 15-20 ks worth of logs ea per month if i need be  If only i had a bigenough Mill to process it all in a timely manner  :) ??? ::) but im getting there  ;) ;D 8) 8)

Dept Sawmilling and logging is either Capital or Labour Intensive So you could go down one of two paths  ;) the way i chose is labour intensive but work on my own atm and  im not tied to a bank but if things go bad you have more of a chance of surviving and paying out your creditors than if you where in dept to the eyeballs and the bank decides they have had enough and pull the pin ive seen that afew times in my life with other ppls experiances one eg with myself late last year i got short shifted on a job and got the runaround from a customer for over 6 months  which was the main issue (cashflow)along with afew other things that didnt go to plan but i tightend up on things like not  booking any new things up with supplyers to the point i only have two bills to pay off over the next couple of months

Ironwood some of us where'nt cutout w  to live on a weekly wage where we Mate  ;) :D :D ;D 8) It drives me up the bloody wall every time ive try'd to do it  :) ??? ::) ::) ;) :D :D :D ;D

I was around at my uncle's saw shop to day and Keiran said You picked a hard life to lead getting into this sawmilling caper Christopher  :D ;) to that my other uncle Tim said He's allways been in it and i dont think he'd have it any other way   ;) ;D 8) 8) tims also said things will start moving the way they should the the tough times will be a distant memory  ;) ;D 8) 8)

Ill leave you with afew quotes I live by Fellas  ;) ;D

Live by your word  ;)  and do what you say your going to do and if things dont go to plan and it seems to take forever to get somthing sorted out  ;)  The only time people fail in anything is when they Give Up  ;)

Find a job you love and you will never work another day in your life  ;D 8) 8)

Anything worthwile isnt easy  ;) If it was everybody would be doing it !!  ;) :D :D ;D

Perserverence There is No Substiute for Hard work  ;)

Regards Chris
4TH Generation Timbergetter

venice

Redneck,

sign up for a business class first. No matter what you're gonna do in the future, learning how to do business, how calculate cost of operating and where loss and profit comes from will put you ahead of the pack.

learn how to turn rough wood into a finished product. Furniture, staircases, doors, turnings, what ever it might be. Makes you a better sawyer since you know how to use the wood best and gives you some more options to turn your logs into something more valuable than 1 by's.

when you are starting to saw, put the best pieces away and build a stock of quality lumber to draw from in the future and make some finished stuff out of it.

don't look for the fast profit. Building a successfull (small or big) business is a long term venture.

man, i wish i could start over at 14....  ::)

my best wishes to all of you.

venice

Tom

Welcome to the forum, Venice.
I was 14 once't :D

venice

"I was 14 once't Ya dats a good one!"   ;D

Thanks Tom.

venice

Magicman

Welcome to FF, venice.  Looks like you've been here for a while, just quite..... :)
Knothole Sawmill, LLC     '98 Wood-Mizer LT40SuperHydraulic   WM Million BF Club Member   WM Pro Sawyer Network

It's Weird being the Same Age as Old People

Never allow your "need" to make money to exceed your "desire" to provide quality service.....The Magicman

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