There are a lot of things to consider when investing in a sawmill business, here are 5 of them. Please subscribe and check out my other videos, THANKS!
Well said. I especially resonate with point #5 these days as I am nearing the end of a 5 year plan I set out on 5 years ago. To my surprise, however, the other day I "suddenly" realized that I now need to start a 10 year plan.
I just bought a used Norwood HD36 I've done alot of research in advance First thing I learned was nobody wants to pay extra for being portable..... I checked around locally and the guys who have mills are set up at home.... and they don't deliver So as a business owner I choose the terms I poured a slab and built a shed roof over it first thing...I won't be offering portable service. Many reasons for this, firstly I have a big bunk for logs to be unloaded onto that is level with the track. I won't be using a tractor to load logs... it's the#1 cause of mill damage Truck has a grapple to unload so get your money's worth on the trucking fee. Another reason to be home based is no additional fuel expense or unpaid window time... No wear and tear on the mill or tow vehicle. Inevitable that you will need a tractor at their location. Breakdowns, blades, bathroom and breaks are all convenient and easier at home If I'm getting paid in lumber, it's already at my house.... SECURITY!!!!! I can't invest thousands in a mill and leave it on a logging yard and I'm not towing it both ways every day I'm sure I'm leaving something out but I think you get my line of thought What would I gain by being portable? Headaches, expenses, and risk I'll likely order my own log loads and design a blueprint for a tiny home and sell kits..... Also plan on a resaw jig for tapered siding as that is mostly unavailable in my area Also will be adding 4 more feet of track to be able to do 20' rafters, stringers, beams and slabs..... I bought a thousand board feet of 1" pine boards this summer for $900. It was assorted widths from 6-12" All 1x12" was $1700 at a competitor nearby Assorted widths don't bother me that much lol Great video, thanks for sharing your experience
Great thoughts-something to think about as I get up amd running. I will have a property that used to be a sawmill amd I now need to figure out if I need a mobile mill (found one at a great price) or just slab it. I do t plan on going mobile but if I need to get the mobile mill to get started I will..:but you e given me pause. Thanks
You mentioned about the "HARD" work, When I lived in FLORENCE OREGON, I had my first experience working in a SAW Mille One was LADUKE Lumber and ERICKSON up Mapleton, I really enjoyed working in saw miles and was amazed at how they take a HUGE Tree and run it through a dble edge Blade sawin just a few minute reduce it to a Pile of Lumber 2x4 6 8 10 etc was awesome experience to see,I was a Lumber Puller and also a Grader there was NO messing around we worked and enjoyed it!,I worked on the DRY Chain and avoided the WET chain. The "SMELL of FIR was Great but HEMLOCK was the heavious
Very good video and all valid points. One thing that I've experienced in my own sawmill adventure is the challenge of working alone and figuring out how to handle difficult tasks by myself.
A brilliant and very honest and self-effacing video - great job! Quincy Jones once said "The money is in the music!" and I fear the same is true for sawmill owners - the money is in the lumber. Sawing other folks' wood seldom leads to riches - just as recording other people's music is not going to make you rich. Finding a good supply of timber-on-the-hoof and churning out 2x4 and 6" boards and all the other things folks need like 3x3 fence posts sounds more like a business plan. Of course, that means having the means to transport logs, store logs, store ready timber and all the other things that go with all that like treatment tanks, chemicals, etc., etc.
Good video. Good points. I have always said, "there is no glory in doing the same thing well, day after day." There is no glory in changing oil, sharpening blades, replacing hydraulic lines, sweeping, shoveling, dumping. But that is where you really pay the down the debt.
I would add to #4: Borrowing for tools and machinery can be good debt, having to have the latest, shiniest pickup truck or other depreciating assets seldom is.
Unfortunately, to buy a reliable truck that is capable of doing heavy work, comes with a hefty price tag. Esthetics and bells and whistles don't count for much with me, but gauss how the market is geared.
Amen, brother. My 25 year old diesel truck suits me great. I can tow the tractor or log trailer with it and its cheap to work on compared to a payment on a newer one ton. Borrowing for the tractor or mill or equipment that makes its payment isnt a bad thing.
Cash is king, you never know when markets are going to swing. When I was high school age I used to live in NW WA. the timber & shake industry was dying & a lot of guys started buying mills and went hot & heavy for a few years & went broke. The are only a few left & the only ones that made real money had a niche market, fiddle back maple guitar blanks & VG old growth flooring either from salvage or recycled timbers. It seems like the only market in my area is barn boards, code won’t allow structural use. Good debt or bad debt is still debit when things slow down and you still have bills to pay.
Good video. Very concise and to the point. Bad debt is paying anything that you don't have the resources to pay it off every month. People complain about the cost of goods but buy it on credit that they don't, or can't pay off. If you fail to pay it off, you will succeed in paying a lot more for it in the future.
Thank you SO much for creating this video. It helped me out a LOT. I am just now in the preliminary stages, and know just enough to be dangerous. Thanks again.
Good video. My two cents: 1. You better love the work first before considering starting a business 2. Half of the success is not in Doing the Work but in actually Running the business. Most start ups fail because even though the owner is skilled at the work, they are not competent at business management. Planning, advertising, finances, bookkeeping, insurance, customer relations, taxes, hiring, safety, etc. If you are a single person doing this you may need to spend equal hours doing business management as you do hauling and sawing. It's a cruel reality of modern business. 3. Have an injury plan. You will eventually get hurt or sick. 4. On debt. Don't take on debt you cannot carry without business income until you have shown over a significant period of time that you can generate an actual profit to carry it. Buy what you can afford and build your assets as you prove the business. 5. If you make a little money, don't buy a new truck, set aside business capital so you can "borrow" from yourself.
One thing that I have always been grateful for as far as monotony goes, is that on those days that things were starting to suck, or I knew I had a project coming my way that was not going to be any fun (I affectionately called them "suicide missions,") I would seriously look for the opportunity that the project offered. That kept me in a positive mental attitude and had the benefit of getting real good at some of the less pleasant tasks that came my way. Once that became a way of life, those tasks were no real big deal anymore.
Good points. I acquired most of my equipment by buying machinery that had issues, then made them operational. No debt here. The rule of thumb for financial responsibility in the sawmill business is to set aside 1/3rd for mill maintenance and other expenses. Don't take your profits and buy a new truck or bass boat. Practice financial discipline.
This was a great video, was thinking about getting a saw mill and doing up some logs I have for profit but you’ve definitely given me some food for thought. Thanks!
As a 30 + year veteran of economic development I want to congratulate you on a very well presented video on preparing to go into the saw mill business, or for any business really. I tell many groups I speak to, one of the finest pieces of work I can do is to talk someone out of spending their life savings on starting a business they are not prepare to do. The first question I ask any entrepreneur is (example): is the first thing you think about when you wakeup in the morning starting a saw mill? Does it consume most of your waking hours, can you think of anything else in the world you'd rather be doing? If it's not, Then DON'T start a new business. You are an asset to your industry and to economic development, thank you! Sincerely, Court Newkirk executive director of the Okmulgee Area Development Corporation.
I've been a sawmill guy for almost 30 years started in the logging business up here in north central Maine and I think you've touched on some very good points you have to want to be successful and adapt improvise and overcome .. great video and best of luck
Can i ask, How did you get started? Its been my dream to start a sawmill business, I just have zero experience in logging and being in NV there arent very much logging jobs if any.
I have a little sawmill and only cut for myself and maybe friends is I have time,... it's way to much work for an old guy like me., but free nice lumber to use in my projects is nice....
All great points. Might add: 1) Rent equip or hire for job those tasks that are sporadic or only "occasional" (your definition). A machine can pretty much run 24/7 with only stops for fuel, minor maintenance & change of operator...you need to have the necessary volume to keep that machine running as close to 24/7 as possible. Thinking you can have a serious business but only milling twice a week or on weekends is not going to pay for that equipment. Long haul trucking perfect example. A two man team per truck running ALL DAY can cover a lot of miles. Another example is the guy who buys a NEW brush hog to mow his 4 acres three times a year. Oh, hell no! That's what 14 y/o boys are hired for. Your time and money are too valuable to BUY a brush hog and then sit on your butt for hours....in summer sun to mow GRASS 2) Have a *written* EXIT plan. Are you going to sell entire operation; lock, stock & barrel? How are you going to value the business? How do you account for "goodwill". Or, are you just going to just sell off a piece of equip here & there with no plan as your energy levels & involvement wanes? You'll end up with a pile of rusted out equipment that could've been sold as part of an entire package if you planned better. So much more but these two concerns, over capitalization & no EXIT plan, have consistently been the things I've seen over the years that cause heartache
If you rethink your saw mill needs and consider the swing blade or twin blade vs bandsaw mill debate. The swing blade and twin blade mill will handle much larger logs and require no log handling beyond the initial loading of the log. This is based on sawing dimensional lumber.
Those points are good. The bad debt is key. If you are buying groceries on credit you have to do something about that. You probably should know something about the business you want to partake in. Work for someone else, gain knowledge see how you can make improvements.
I appreciate this indepth presentation. I have several friends that have the dream. However, they are not thinking it through thoroughly enough to be successful. Therefore I will certainly be sending my friends to your channel. Sincerely I really appreciate your content. Be well brother.
Hey buddy how are ya? Great video!!! I bought a sawmill about a year ago, was thinking of starting a business. I’ve been sawing for my self and a few others. I think I’m ready now to start charging folks for sawing. My mill is all manual for the moment I hope to add hydraulics within the next year or so! I don’t have a tractor of skid steer. I built a large log arch I pull with my quad, Jeep or truck depending on size of the log and how much slope I’m dealing with. I’m not sure how to charge for sawing. By the hour? By the board foot? What do you think? Thanks for the videos and any advice you could give. God bless you and yours.
I can't believe how many songs I see go up for sale with under 500 hours This is good information they do market it like you can build all the lumber in the world fast and you're gonna make a fortune You definitely need the infrastructure to make it profitable is profitable you need somewhere to protect the lumber after it's mild especially if you're milling for customers and then you need to dry it and then you have to protect it once it's dry will they take their time to come and pick it up
I know men & women think differently, but one of the most important things for me is to block all negativity from myself and others. We have plenty of obstacles to overcome, and plenty of haters wanting to watch u fail, my mindset is the no's & u can'ts, all the she wishes looks, or the snickering fuels my passions fire. The same ppl will all b right there acting like they were my biggest cheerleaders getting me to the top and that's fine because they really will have pushed me to the top. I'm building a empire one tree at a time. Best of luck to u and ur dream. Also u should do some motivational speaking ur voice and temperament is intentional while being supportive
I just bought a brand new Norwood HD 36. Would you buy a tractor first or all hydraulics. Thank you for your video. I love learning off of other people's success and failures. My primary reason is for my own personal woodworking. But I also want to make money.
Appreciate the video. As a new Lucas 8-30 mill owner I have the tractor, grapple, wallenstein skidding winch, oh I have decent equipment plus a 22ac Carolinian hardwood woodlot with 80yr old birr and red oak soft maple but scared to death where I’ll draw business from. An important missing piece of the puzzle but truly appreciate watching your video
You definitely made some excellent points... really, for starting ANY type of business. The only thing I personally think you should change is the title of your episode. I almost didn't watch it because I thought you were being presumptuous "EVERYONE KNEW ". However, I ended up enjoying it, even though I actually "knew" these things already since I've owned my own business in the past... I believe a better way of titling it would have been to personalize it (Erich you did in the video ", and simply call it, "5 things I wish I knew before starting my sawmill". Pointing inward instead of outward invites others to learn from YOUR experiences, and doesn't make them feel like you presume to know their situation... Excellent video though!
They are good points. I wont a mill its more personal for my self because of the size of wood i wont to mill would pay for the mill and it help haveing familey who log and haul trees.Another thing is get with contractors doing clearing for job sites. Always have alot of trees that maby you can get free just to hault them off saveing them money great vidio
Heres my list to add to your list: 1. Save money. If you cant do this, dont buy a mill. Simple. You need to save more than the amount of money required to purchase a capable mill before purchasing one. Do not quit your day job! Do not finance what will be a hobby until you know what you're doing. The learning curve is incredibly steep at first and always climbs, never drops. 2. Volunteer to work with a Sawyer. They usually like the help and you can learn on the job to see if its right for you. If you stick around for more than a day, they will likely pay you something and give you lumber. 3. Bring water, you will be working hard.
I'm 34 and have a herniated disc my back, torn ACL, 2 torn tendons in my ankle, a hernia, 2 missing finger tips, and other small things wrong with me. And no pension lol. I should have listened to old timers about taking care of myself when I was younger!
Prior to taking on good debt, one should prove to themselves that they can handle their finances by actually accumulating some capital (saving some money).
Advertising, financing aka debt, goals - these are factors that apply to Any self-employment situation or entrepreneurial endeavors. Your points are all valid, but not all that limited to sawmills :)
Let me tell you something boy!!! What you said!!! well well now now that was really somethen, I like you man especially the God part, I subscribed, I liked, now where’s my Damn free TShirt ? You got that in your budget? 😂
Work is monotony by nature.. Shingling a roof, hanging endless sheets of drywall, milling board after board turns to bored.. That's why it's called work. How many people know how much a green hemlock 2x12x16' weighs? Pulling that slab off a mill & stickering it is tough, thankless work?!
be sure to tell them why the metal detector is so important.......you can save a torn up blade if you wave a metal detector over a log and pick up metal....there is all kinds of ways metal can be in a tree.....bullets....old metals lain against a small tree and the tree grows around it covering it........so use a metal detector...and do not tear up your blades.
I’ve just retired from logging 35 years purchased a saw mill Kabota tractor every thing is paid for no dept bought 15 acres of wood want to cut my own wood I’m 73 years old would like to sell a little bit of wood any ideas
I'm also in southern Indiana and the mills down here that I've talked to are just lazy. I'm cutting down a few acres of pretty nice red oak with a little white oak and beach and nobody wants to even come look at them so I'm probably going to buy a smaller mill for some of it, firewood for part of it, but most is going to end up in piles in a ravine. I'm amazed that I can't even give away logs to these people.
You told it like it is. Any business is tough to get going and make a go of it. Saw milling requires a lot of capital up front before you ever cut a log. You don’t even know at that time if you like getting you and your cloths full of saw dust. If you like taking off your cloths and emptying all the saw dust out of your pockets. If you like getting splinters and an aching back. Then there already those jobs you spend a week doing and the client says. “That’s not what I ordered at all”. Yal you told it right. Later
I don't understand why saw millers use a slabbing /bandsaw to cut dimensional timber ,, there are many mills on the market to do this ,,, and cut dimensional timber much faster than a band saw ,
Great advice. Except about debt. There is no such thing as good debt. Every reference to debt in The Bible is negative. I'm not saying it's a sin to have debt I'm saying that it is always a bad thing.
You MUST have internal motivation. That is you MUST WANT to run YOUR business for YOURSELF, not anyone else or to impress others, and then do exactly that. A job gets in the way of your success and independence. A job robs you of time and energy you need to become successful for YOURSELF. You must pay your business first before paying yourself. If you have a job you pay first growing your employer's business and his pension plan, not yours. The same is true if you rent a house. You are buying a house for someone else, not yourself. If you "need a steady paycheck" working for yourself is not for a mediocrity like you. The same is true if you "must" work "only" 5 days per week, 8am to 5pm and have a "two week vacation" every year. You will work your entire life and if you are lucky your employer has a pension plan. If you are doubly lucky that pension plan did not go broke. When work is available you must do it, rain or shine, holidays or not. If you work a job you will only make what an employer gives you, not what you are potentially worth. You must understand that finding work is work. Then you must promptly do the work you found to the best of your ability each time. Cutting corners or getting lazy in the slightest builds in certain failure. You are not a success until calamity strikes, you pray that things do not get worse, they do, and you get through it. If you think about quitting you already have. The successful person says "this is what I do" and then does it. Doing anything else never enters his mind. This is not the same as constantly thinking and striving to improve your business. You must constantly learn, improve and evolve as you go along. That is called progress. If you are married to or otherwise tied up with someone who doesn't understand all of the above and lets you know it daily, LOL, good luck you. Brad Paisley has a song about a man who fishes every day all day long. His wife complains about it constantly and wants him to do something else. One day he returns home and finds her gone. The next day he goes fishing again and says to himself "I am going to miss her." If you have a business partner who does't have the same motivation and ambition as yours you won't be partners long. Years ago I was in a steakhouse with my girlfriend at the time. She asked me what I charged per hour for a certain task. I told her. She became all upset and said "you can't charge people that much." The fact was I charged less than others. Instead of telling her that I said "what do you think is paying for that steak you are chewing on?" She never again asked such foolishness. Go back to the beginning and reread the first sentence.
