Firewood Business Plan Template [Updated 2024]
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:
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:
- 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 Business Plan Template (including a full, customizable financial model) to your computer here.
Who is [Company Name]?
[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
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
[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
- Hiring and training staff
- Maintenance functions
- Other general administrative functions
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, 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
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
- Land purchase: $200,000
- Store design/build: $250,000
- Equipment and initial inventory: $100,000
Key Assumptions
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 | |
PRETAX 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% |
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 |
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 |
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- Business plans
Firewood Business Plan
Used 4,918 times
This Firewood Business Plan Template perfectly outlines the company structure of a probable firewood venture. It highlights the budgets needed to start and manage the unique business.
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Firewood Business Plan Template
Prepared by:
[Sender.FirstName] [Sender.LastName]
[Sender.Title] [Sender.Company]
[Sender.Phone] [Sender.Email]
Executive Summary
[Sender.Company] is a firewood business formed to sell its customers various types of firewood in bulk. The business aims to earn profits from selling or delivering firewood from its store that we plan to build on [Sender.StreetAddress] [Sender.City] [Sender.State] [Sender.PostalCode] .
The [Sender.Company] is founded by (Fonder.Name), who has extensive experience in the industry. Moreover, the founder holds a business degree necessary to manage the costs and revenue earned from the venture.
Products and Services
We sell small and large bundles of firewood for fire pits and campsites. In addition, we also source and deliver these bundles to retailers to be sold indirectly to the customers.
Customer Focus
[Sender.Company] plans to serve retailers running firewood businesses primarily. Further, we also want to target adventurers and camping enthusiasts who occasionally need firewood.
Financial Plan
These are our financial statements for the next three years. We have taken care of the inflation rates and maintained accuracy while calculating the estimates.
Company Overview
Company introduction.
[Sender.Company] is a firewood venture that aims to sell small and big bundles of firewood to its target customers. Our founder understood the need for firewood for camping and has taken this necessary step to start a business and make wood supply convenient.
Mission Statement
Our mission is to sell high-quality firewood at a competitive price to light up every campsite, backyard, and beach.
Industry Analysis
The reason behind starting [Sender.Company] was the increase in demand for firewood. Since firewood is essential in campsites, beaches, and even your backyards, it is easy to believe that people need this product more now than ever before. According to industry analysis, the searches made on “Firewood Near Me” have increased significantly, which means that this business has a lot of potential.
Relevant Growth Forecast
The firewood business is predicted to increase by (Percentage) in the next ten years.
Market Size
The potential market size of the firewood business is (Figure).
Customer Analysis
Customer needs.
The primary customer needs of firewood are:
Finding a one-stop-shop to buy small bundles of firewood
Purchasing big bundles to keep in their retail shops and sell to customers
Getting the firewood delivered to their defined address
Target Customer Profile
The target customers of [Sender.Company] are:
Camping enthusiasts
Owners of firewood shops
Adventurous individuals
Competitive Analysis
Below is the list of [Sender.Company] ’s indirect and direct competitors with their addresses.
(Competitor A)
(Competitor B)
(Competitor C)
Competitive Advantage
[Sender.Company] has a competitive advantage over its customers for the following reasons:
High-quality firewood
Competitive prices
Availability of both large and small bundles
Marketing Plan
[Sender.Company] wishes to become a strong brand with a focus to:
Sell high-quality firewood
Provide competitive prices for its product
Offer excellent customer support
Regulate prompt delivery
We aim to curate the following marketing strategies to achieve the business objectives:
Local Publications (Explain how)
Commercial Ads (Explain how)
Social Media Advertisements (Explain how)
Operations Plan
Store location.
[Sender.Company] wishes to run a store at (Company Full Address). This location will help to deliver firewood to its potential customers efficiently. Besides, the appropriate positioning of the location makes it closer to various residential areas and workplaces.
Operational Timings
The store shall remain open from Monday to Saturday from 9 am to 10 pm. It will stay closed on Sundays.
Operations Required
To manage this business effectively, conducting the following operations is essential:
Prompt delivery
Floor sales
Online sales
Administrative functions
Sourcing and storing firewood
Hiring staff
Management Team
Founder and team.
[Sender.Company] shall be run by (Founder.Name) and their assistant (Assistant.Name) . Both individuals have previously worked in the firewood industry and have also studied business.
Other than these two, the business shall require the following:
Store manager
Inventory management staff
Delivery team
Social media management team
Working Hours
Each individual will have to work for the following hours to meet the company’s objectives:
Store manager : (Hours)
Inventory management staff: (Hours)
Delivery team: (Hours)
Social media management team: (Hours)
Accountant: (Hours)
Cost and Revenue Drivers
[Sender.Company] aims to earn its revenue from selling firewood to its target customers. Its major cost drivers are staff salaries, cost of firewood purchased, rent of the store (if any), and delivery-related expenses. Besides, the business shall incur high marketing expenses during its first year.
Funds Required
[Sender.Company] requires the funding of (Amount in dollars) for spending on:
Working capital
Store lease Agreement
Hiring of staff
Cost of purchasing firewood
Key Forecasts and Assumptions
Below, we have shared our income statements, cash flow statements, and balance sheets for the next three years. At the end of every statement, we also evaluated ratios for comparison.
(Attach all statements)
[Recipient.FirstName] [Recipient.LastName]
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