Are you interested in getting started in the logging industry? If so, you have your work cut out for you. The industry in the United States alone is worth $15.2 billion, so you have a lot of work to do to stand out from your competition.
If you plan to start a logging business, you need to take a few essential steps. Keep reading to learn how to start a logging company.
Learn About the Industry
Many people think there isn’t much to the logging industry. They believe all that you need to get started is a few pieces of equipment so you can start cutting down trees. Unfortunately, that isn’t the case.
Forestry management is a complex subject, so you don’t want to go into this business blindly. Before you start building your logging business, take some time to learn about the industry and what it takes to manage a forest. There are entire university courses focused on this topic.
As time goes on and environmental issues take the forefront in society, expect more regulations to come down on the logging industry. It’s also vital that you’re familiar with these rules to avoid getting into trouble with your local government.
Do Market Research
There isn’t a one-size-fits-all logging business. The logging industry has many markets, and it’s hard for one company to handle them all.
Do market research in your local area to see what potential business there is for you to capture. Look for gaps left by your competitors that you can capitalize on or people that aren’t getting excellent service from their current logging providers.
Once you know about your current logging market, you can better plan your logging business. Knowing this will inform you about how to market and what kind of equipment you need to purchase.
From there, you can determine what services to offer. Some customers will want regular wood planks, while others will want more custom cuts. Your market research will help you understand exactly what you need to offer to stand out from the crowd.
Create Your Business Entity
Once you know what kind of logging business you want to create, it’s time to start the heavy lifting. The first step to start logging is to create a business entity.
The chances are good that you’ll need to hire employees for this job, so a corporate structure will likely work best. This structure allows you to register employees and set them up on payroll. You also get all the financial and tax benefits that a corporation brings.
Check your local or state government to see what paperwork you need to fill out. Typically, you only need to fill out a few forms to get started. If you want help filling out your business paperwork, get in touch with a lawyer to get the help you need.
Even though the chances of an accident happening at the workplace is low, that doesn’t mean it will never happen. You’ll operate heavy machinery when operating a logging business. If something does go wrong, someone can get seriously hurt.
That’s why logging and forestry insurance is essential for a logging business. Your insurance will cover your damages whenever an accident happens on the worksite. Whether it’s equipment damage or employee injury, there are various policies that will cover all your bases.
Do a search for insurance providers on Google to start your search. You’ll likely need a specialized insurance plan, so make sure your policy provider is familiar with what you do. Doing this will help you get an insurance plan that’s perfect for your company.
Not everyone can just pick up and start a logging company. The logging industry is old and established. Just like building contractors get certifications to prove that they have the knowledge to handle their jobs, so do logging professionals.
The certifications you need will vary based on the location you reside. Look into your local regulations to figure out what you need to learn.
In most cases, you can get your certification after studying the test material and taking an exam. Once you have your logging certification, you’ll have the knowledge you need to run a logging business in your area.
Of course, you don’t require a certification to work in every area. However, getting one proves to customers that you’ve done the work to learn how to run a logging business correctly.
Buy Your Equipment
Unfortunately, starting a logging business is something that isn’t always possible on a budget. While you can cut down trees with basic equipment, it takes too long to get anything done. If you want to ramp up your business, you’ll need the equipment to do so.
Since you already know what kind of customers and cuts you need to make, you should already have an idea about what type of equipment you need to buy. Get in touch with logging equipment providers to get quotes for what you need.
If you need a lot of equipment to get started, you’ll likely need financing for your equipment. Doing this will help you get started with less money. While you’ll be in debt initially, getting financing will leave you with more capital to invest in marketing and other business growth tasks.
Now You Know How to Start a Logging Business
Starting a logging business is no easy task, so you can’t afford to make many mistakes when you first get started. Make sure you follow the steps above to start logging in the right way. The more you can do right in the beginning, the higher chance of success you have.
Of course, there are more things that you need to know about business if you want to find success. Check out the blog to see more great tips that will help you grow your new venture.