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The business of wood

Started by ScottCC, January 21, 2017, 09:49:04 PM

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ScottCC

I am taking a business course and have found so far that the market/marketing is the biggest concern for all places someone can go for money.  Been to the bank, USDA, SBA, Industrial development agency and the neighbors looking for a little cash but no luck.  Same old same old, you need to have money to get the money in residential construction to make a big move now.  Wondering if anyone has resorted to small retail sales of any nature to create cash flow in order to fund spec homes.  Start a business to fund a business that is hard to traditionally fund.  Maybe pre-made trims for homes pre-finished and shipped to your site?Just an example, not really considering.
Necessity is the mother of invention.  Poverty is its big brother.  WM mp100, WM eg100, WM sp4000 chip extractor,  WM 260 molder on order ,WM electric  lt15 wide with extra track, 71 Oliver allterrain forklift, 26' flat bed trailer, road legal log arch, homemade kiln, AutoCAD lt15

Gearbox

The cold hard facts . Why should I put my hard earned money in your hand when you have nothing to lose if it won't fly .You just walk away and I take the hit .
A bunch of chainsaws a BT6870 processer , TC 5 International track skidder and not near enough time

low_48

Nothing near a short term/high profit business in my history. I was raised on a farm, worked as a draftsman and designer, and always made wood items for sale by hand at night. All of those were careers where you basically used your hands and a little ingenuity to earn a living.  To make a million dollars in woodworking or farming, you need to start with 2 million. I've sold wood items for over 40 years. The only single item I have ever come close to doing well with, is a laminated wood necklace I make. About $1 in materials, sells for $25. I've sold a couple hundred of them over the years, but you sure aren't going to finance a home business with that kind of money. Does you business class have a chapter on medical/recreational marijuana business? That appears to be the fast money business right now!

ScottCC

I don't mean I'm looking for everything to give it a try, I'm certainly invested.  Have the equipment to produce a ground breaking log home structure.  Have a lot, permit and work has started.  I just thought $25,000 would get it done by June.  Otherwise I'm looking at Christmas and my 50th birthday.  I don't have million dollar dreams just dreams worth a million.  I really was wondering of a retail market that had decent sales a bank would look favorably on.
Necessity is the mother of invention.  Poverty is its big brother.  WM mp100, WM eg100, WM sp4000 chip extractor,  WM 260 molder on order ,WM electric  lt15 wide with extra track, 71 Oliver allterrain forklift, 26' flat bed trailer, road legal log arch, homemade kiln, AutoCAD lt15

Kbeitz

Just take out a personal loan...
Collector and builder of many things.
Love machine shop work
and Wood work shop work
And now a saw mill work

ScottCC

They will only lend 50 cents on the dollar for assets and real estate does not count that is for sale.  A problem when the object is to sell the product you are producing.
Necessity is the mother of invention.  Poverty is its big brother.  WM mp100, WM eg100, WM sp4000 chip extractor,  WM 260 molder on order ,WM electric  lt15 wide with extra track, 71 Oliver allterrain forklift, 26' flat bed trailer, road legal log arch, homemade kiln, AutoCAD lt15

Gearbox

50% Sounds about right and be ready to pay at least 8 % interest . Welcome to the business world .
A bunch of chainsaws a BT6870 processer , TC 5 International track skidder and not near enough time

Den Socling

It took a long, long time for me. Back in the early '80's, I fell into the forest products industry. I tried selling metal detectors then conventional kiln controllers and finally vacuum kilns. I used to sit alone in a small, quiet office and wonder why I couldn't get off the ground. Then things started happening through word of mouth. My son calls it organic advertising. He now runs the conventional control business and i take care of the vacuum kilns. He recently got an order for 5 controllers from a company who had bought 1. I now get inquiries for vac kilns at least 1 a day. It took about 35 years and money was really tight for most of them. Don't expect an overnight success

ScottCC

Your right, my rush started when I got a job building a big post and beam home.  I know it will take a ton of effort and time starting in two months and lasting five.  My personal gets side tracked again.  I guess back to the night weekend approach.
Necessity is the mother of invention.  Poverty is its big brother.  WM mp100, WM eg100, WM sp4000 chip extractor,  WM 260 molder on order ,WM electric  lt15 wide with extra track, 71 Oliver allterrain forklift, 26' flat bed trailer, road legal log arch, homemade kiln, AutoCAD lt15

ScottCC

New subject in class this week, the market you are selling to specifically.  This subject has proven tough because it makes you look at exactly where you are going with the business and I don't necessarily like the answers.  I contacted the NAHB of log and timer frames and got a market research study that says of the respondents no one was starting a home under 1200 sq ft for years.  Could this be true?  Hope not bc that's what I want to concentrate on.  Also, no budgets under $150000.  Again, I hope not.  Threre was 105 respondents in the study I think.  Anyone building small and affordable out there?
Necessity is the mother of invention.  Poverty is its big brother.  WM mp100, WM eg100, WM sp4000 chip extractor,  WM 260 molder on order ,WM electric  lt15 wide with extra track, 71 Oliver allterrain forklift, 26' flat bed trailer, road legal log arch, homemade kiln, AutoCAD lt15

TKehl

Just my hunch, but I think most people looking for timber frame are looking for a showpiece.  IE going to spend a ton of money.

Small and affordable generally = don't care about construction methods -> stick built.  If timber framed in this size, it's likely owner/builder.

Perhaps look into the cabin market?  Perhaps prefabbed.  Perhaps knock down kits for site builds.

And of course my consultant fee is fully refundable.   :D
In the long run, you make your own luck – good, bad, or indifferent. Loretta Lynn

ScottCC

i just think log home living has so many upsides and the average homeowner dreams of such a life.  Obviously not city life, but still a very common dream none the less.  That smaller log homes, if within reach financially and build wise, would increase in style of choice.  Hence why I have focused on that answer.  I'm sure I can match starter home price dollar for dollar.  Amenity for amenity.
Necessity is the mother of invention.  Poverty is its big brother.  WM mp100, WM eg100, WM sp4000 chip extractor,  WM 260 molder on order ,WM electric  lt15 wide with extra track, 71 Oliver allterrain forklift, 26' flat bed trailer, road legal log arch, homemade kiln, AutoCAD lt15

low_48

I see a lot of enthusiasm in your posts, but I caution you about ignoring market research due to your passion. I'd sure have to see a cost out on the facts that you can timber frame or build a log cabin for the same cost as conventionally built. Do your homework in the class.

ScottCC

I would never think that a timber frame would be anything but more expensive than stick, intuitively I'm guessing 30 percent or more.  Logs on the other hand should be less.  Those that control the means of production control the price.  In logs the wall is the biggest factor and I can buy a square foot of wall for 50  cents.  Yes stuff goes into final product but I do that and efficiency and innovation controls that cost.  Yes, my model will tell the tale.
Necessity is the mother of invention.  Poverty is its big brother.  WM mp100, WM eg100, WM sp4000 chip extractor,  WM 260 molder on order ,WM electric  lt15 wide with extra track, 71 Oliver allterrain forklift, 26' flat bed trailer, road legal log arch, homemade kiln, AutoCAD lt15

killamplanes

All the smaller <1500ft log or timber framed houses around here were bought as kit and owner or buddy system built. But they (timber frame) are few and far between. Stick built dominates here mine built last year 2700ft. I never considered log but that's just me.    On another note starting a business is more diffucult now then 15yrs ago. Banks got burned by alot of people. I started 15yrs ago with a 20k note on basically my word. You can't get those at banks anymore. I know have 5 checkbooks and several company's and employees, I wouldn't do it all over again but sure glad I got were I'm at... I still do most my business with the original bank that loaned me the 20k... But I'm still not rich, just busy
jd440 skidder, western star w/grapple,tk B-20 hyd, electric, stihl660,and 2X661. and other support Equipment, pallet manufacturing line

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