Timber or wood that is widely used for construction, furniture making, fencing, and other purposes is generally sourced from a timber supplies company. Timber has different qualities, and according to that different types of forests are grown only for commercial purposes. Timber needs a lot of processing before it is used for its intended purpose. Once the trees are cut, they are sent to a wood mill where timber planks are produced after cutting the woods into long uniform pieces. According to the quality of wood, there can be different qualities of timber. Some are predesignated for some specific uses only, while others have to be treated with additional coating or layers to make them weather resistant.
In the past we had to source timber from the tree cutting companies itself. But in today’s age, we can source it from the companies involved in timber supplies. These companies might do the wood processing on their own or source the timber from the wood cutting companies. These companies are the retail sellers, wholesalers, or merchants that provide us the timber we need. It is important to note at all times that these companies sell the wood that is processed and ready to be used. If you are planning to start your own business in this industry, then here we have gathered a few things that you need to know.
Starting your own timber supply business
The timber supply business is highly lucrative and profitable. Although initially it may be tough for you to create your contacts and connections, once you build them, you can see your profits soaring high. The reason is that the timber supplies business is giving double-digit returns for the past few decades. With the rise of the global population and massive demand for wood, forests are cut and wood is sent to the wood processing industries from where it reaches the wholesalers. Timber or wood is needed for a lot of regular uses, be it the construction of houses, furniture, bookshelves, floors, doors, and windows, etc.
Fundamental Things Required to Starting the Business
To start your timber supplies business, you need to look at certain things, including the following:
This can be counted as one of the disadvantages, but as a retailer and timber seller, you need to purchase wood. Before starting your timber supply business, you need to make the right business plan. This includes how much money you need to start, how much positive cash flow you can generate, getting help from banks to create a line of credit, and the demand for timber in your locality.
The timber industry is growing at a high rate, but as a timber supplies business owner, you need to procure timber from the right sources. This is a continuous process and procuring good quality timber is extremely important. Otherwise you will not be able to stand against your rivals. You need to get into contracts with the wood processing industries, so that you are the first to whom they will send the wood once it is processed. Create a list of wood processing companies in your nearest locality and contact them.
As mentioned previously, this industry is capital intensive. You need to have enough space for storing timber, hire labor, buy wood processing equipment and tools, buy an insurance policy for your company, and get licenses. While multiple points come under liabilities, the only way to generate positive cash flow is to sell. So, you need to find out the demand for each type of timber. For better understanding, you can get in touch with furniture manufacturing industries and offices or industries that need bulk timber supplies.
The timber supplies business is no doubt a high income and profit-generating venture. But to get into this and achieve success, you need to have patience and have a solid business plan backed by enough research and good contacts.