How to Start a Timber Company

The timber industry involves logging and forest management services or silviculture. Silviculture involves managing the health and growth of forests. A timber company provides either wood directly to customers or management services to private landowners. Starting a timber company may be a lucrative venture, but its one that requires a great deal of preparation and knowledge of the industry to be successful.

Instructions

1. Learn as much as you can about the logging industry. Educate yourself on the latest equipment and forest management techniques involving harvesting and transporting of trees. Most commercial logging includes log cutting with heavy machines. Understand industry logistics within sawmills or at lumberyards. Consider earning a four-year degree in environmental resources or forestry.

2. Conduct industry market research. This includes researching predictions made for the economy and the timber industry made by key industry members. For example, in 2009, "The New York Times" discussed how the housing market crisis impacted lumber mills. In addition, you may want to study future trends involving alternative energy made from timber and natural properties from trees.

3. Learn the safety regulations set by federal law and industry standards. State and federal governments may regulate your timber company. Make sure you obtain all the correct licenses and permits before starting your company.

4. Draft a business plan. Detail in your plan your business purpose and target consumer. A well written business plan includes financial and technical needs for a start-up business. Visit the U.S. Small Business Administration's website for information on drafting a solid business plan.

5. Register your business with your Secretary of State's office. Hire a business attorney to assist you if needed.

6. Purchase logging supplies, equipment and a business facility. Business facilities house logging tools and administrative offices. Consider having these facilities gated and secured.

7. Secure contracts for logging. Clients may be government agencies and private costumers requiring forestry management services. Join forestry associations to network within the industry and learn about securing government contracts for your timber company. This membership also helps you stay updated on news and trends in the logging industry.

Tips & Warnings

• Contact local associations for free legal advice and potential grant funding for your timber business.

• Make sure your employees are well trained in safety guidelines and laws before attempting to use any logging equipment.

References

• North Carolina State University: Forest Management
• Gaebler: Opening a Logging Companies & Contractors Business
• Start-up Bizhub: Starting a Logging Business

Resources

• AITA: State Loggers Association Directory