Business Needs

• Starting a business requires a business strategy with a well-researched financial plan and competitive marketing and business skills. Being well-versed in state, local and any federal regulations about the sale of firewood is essential. Many states have specific regulations about the kinds of firewood permissible to sell because of disease and insect infestations. It is imperative that a prospective business owner knows them.
  
  

Knowing Your Market and How to Market

• Advertise in local newspapers and place signs at your business location. Enter into contracts with local convenience stores, gas stations and supermarkets to sell your wood. It will increase your customer base. Homeowners, businesses and campgrounds buy firewood. Position yourself to be their primary supplier by getting to know them and how, when and how much wood they need.
  
  

Tools, Storage and Equipment

• Purchase wheelbarrows, axes, a chain saw and wood splitters, which are the basic tools for preparing firewood. A pickup truck to haul wood, wooden pallets to stack it and at least one storage shed, to keep it clean and dry, also will be needed. Sacks and twine to bundle the wood will be useful. If a firewood business will be operating year-round, an indoor warehouse or other space, protected from the elements, probably will be needed.
  
  

Supply and Suppliers

• Buy mill ends from sawmills. They are pieces of wood that are leftover after a sawmill prepares whole logs for other things. They make great firewood and are easy to handle. Whole logs are logs that are considered imperfect and are sold by logging companies and sawmills. If a firewood business is set-up to handle whole logs, the mill or logging company will deliver them.
  
  

Pricing

• Pricing should be competitive for a fair profit margin. The right price for products will depend on overhead, labor and supply costs. Pricing for firewood will vary according to location and other local distributors. Price should be adjusted for selling wholesale or retail, quantity and whether it will be sold whole or split. Selling a cord of firewood, 128 cubic feet in measurement, for about $225 is average. Delivery charges should be extra.