We bring down, saw, cut - the nuances of opening your own sawmill. How to open a sawmill from scratch How much will it cost to own a sawmill from scratch

Today, the sawmill as a business is considered by entrepreneurs. This business can become profitable. First you need to find out how to open a sawmill from scratch, study profitability and reviews.

Living in the forest-steppe zone allows you to profitably invest money. You can organize your own sawmill business. Proper planning of the future business will allow you to make a profit. When compiling a business plan, you need to determine the goals of the project, study competitors, and the presence of customers in the region. Be sure to calculate the number of employees, equipment. After studying this information, calculate the amount of investment, payback time and risks.

Market analysis

A sawmill is a workshop where wood is processed using machine tools. Such a business is considered to be in demand and profitable, which is explained by an increase in the construction of houses and baths. Only a competent approach and the ability to make inexpensive purchases of raw materials will make it possible to make a profit. According to statistics, up to 70% of sawmills are closed during the year, which is explained by errors in the organization of the case.

Initially, you have to study competitors in order to establish real chances of opening your own profitable business. To do this, find out the price level in the region and the availability of customers, analyze the woodworking market in the area, and find out if cutting down trees is prohibited in the region. In addition, the profitability of the sawmill depends on the construction business. This will ensure regular demand for lumber.

Market analysis includes the following information:

1. How easy it is to sell products from the sawmill.
2. If there are prospects for this industry.
3. Are raw materials available?
4. How many sawmills already open.
5. Salary level.

Logging involves complex logistics, because the raw materials need to be delivered to the sawmill, to take the material to the client. It is important that there is an accessible transport interchange. It is necessary to ensure the constant movement of raw materials, but sometimes there are problems here, because it is often difficult to organize felling and removal due to the weather.

economic plan

It is compiled in the event that it is planned to contact investors. Such a plan will help to correctly allocate funds, evaluate costs, and calculate the profitability of the business.

The economic calculation includes the following items:

• sawmill development forecasts, costs and expected profits;
• sources of financing;
• return on investment;
• profit plan;
• description of risks.

The sawmill business is often seasonal. In winter and autumn, they buy raw materials, and work the rest of the time. But the experience of entrepreneurs confirms that with proper planning, you can make a profit all year round. In order for the business to generate income, more than 700 cubic meters of wood are processed throughout the month.

Marketing plan

Materials from sawmill production are always in demand on the market. To make a profit, you need to think about how much product is sold in a short period of time. To become a successful entrepreneur, you can create your own implementation strategy.

Sawmill employees do not cut down trees. Materials are purchased from forestries, suppliers. Only then does the processing and further sale to companies, ordinary consumers take place.

Here are the main lumber that can be made:

1. Clapboard.
2. Bars intended for cladding.
3. Trimmed rafter log.
4. Molding.
5. Dry or wet board.
6. The log is rounded.
7. Pallets, reels.
8. Bar.

You need to think about who will suit all of the above. Such lumber is relevant for companies that are engaged in the construction of houses. Transport organizations, manufacturers need pallets.

When compiling a marketing plan, you will have to take into account that the competition in the market will be high. To attract customers, you will need to carefully consider the principles of lumber promotion. To do this, use the media, the possibilities of the Internet, advertising. The sawmill owner can hold promotions, offer discounts to regular customers. It is necessary to think about how you can reduce the cost of opening a sawmill.

organizational plan

Here you have to figure out how many employees you need to hire, what equipment to choose, where to find the premises. In order for the organization of the sawmill to be done correctly, you can use the feedback from entrepreneurs.

First you need to register a sawmill as an LLC. You should not open an individual entrepreneur, because in this case the businessman will have to face restrictions in carrying out activities. He will be able to sell lumber only to individuals. In the case of registering an LLC, an entrepreneur is allowed to conclude contracts with various factories, legal entities.

You don't need a license to get started. It is enough to have permission from the health station, labor protection authorities, fire inspection. You need to obtain a permit for deforestation if you plan to harvest raw materials yourself.

It is better to open your sawmill in a convenient location with good logistics. The best option would be a location near the forest or on the outskirts of the city. Before you start a sawmill from scratch, you need to consider that the production is quite noisy, so you need to locate the business away from residential premises.

It is important to take care of the source of water, which will be required for the operation of certain types of machines. The room should be large, because it is necessary to arrange the equipment. Typically around 1000 sq. m. of land.

In order for the machines to work perfectly, take care in advance of the approach of a three-phase line rated for 400 kW.

On the territory of your sawmill should be:

• hangar with equipment - 600 sq. m;
• place for unloading materials - 100 sq. m;
• shed where it is planned to store a supply of raw materials - 50 sq. m;
• warehouse designed for finished products - 100 sq. m;
• warehouse for logs - 100 sq. m;
• office space - 50 sq. m.

Equip the plots with a canopy, which will allow you to work in any weather. It is important to take care of fire safety, as the machines are characterized by high power.

Personnel and equipment

Today, various equipment for working at a sawmill is being sold. Preference should be given to devices from European and American manufacturers that differ in quality. But in this case, the prices will be higher in comparison with Chinese machines.

To open your own sawmill, buy:

1. Band saw machine - 2 units.
2. Circular saw - 2 units.
3. Multi-saw - 2 units.

They often save on the purchase of these devices, because there is a sufficient amount of high-quality used equipment on the market that can be bought much cheaper.

As employees, 6 framers, 6 workers, 2 sharpeners, an accountant, and a manager are suitable.

Financial plan

	Expenses	Amount, rubles
1.	LLC registration	50 000
2.	Purchase of equipment	2 800 000
3.	Raw material	1 300 000
4.	Workflow organization	200 000
5.	Rent of premises and land	100 000
6.	Employee salary	180 000
7.	Public utilities	25 000
8.	taxes	60 000
9.	Other expenses	20 000
	Total:	3 185 000

The profitability of 1 cube of wood in our country is approximately 1,500 rubles, and the cost of finished products is 5,000 rubles. The average cost of 1 cubic meter of wood obtained is 3290 rubles. Income from 1 cube can be 1710 rubles.

If you process up to 700 cubic meters per month, you can get 1,197,000 rubles. Invested money pays off in 8 months. Many sawmill owners make additional income from waste by making fences, bars, reels, pallets. Sawdust is used to create pallets.

Some owners of sawmills offer workers a fixed payment: they receive money from the number of sawn cubes. This allows you to save on waste. Shops, furniture factories, construction companies act as a sales market. Often such a product is needed by summer residents or farmers.

So the idea of ​​\u200b\u200bopening a sawmill can become profitable. It is necessary to study the presented sample of starting a business and draw certain conclusions. The sawmill will prosper, as there is a demand for the construction of country houses.

Video: sawmill, the principle of its operation.

In this article, we will tell you how to open a sawmill and properly organize a woodworking business. We will give advice on drawing up a business plan, market analysis and developing a business marketing plan. Consider the methods of marketing finished products and financial issues.

First step

Before drawing up a business plan, you need to clarify some points.

• What is the purpose of the company.
• Is there any in the region and in what quantity.
• Is there a ban on deforestation?
• What prices do competitors adhere to and what kind of wood is used.

It may seem that the goal is clear - making a profit. But now we are talking about something else. For example, does the enterprise open as a sole source of income, or is it a business that complements the main activity: for example, the production of furniture?

The presence of competitors should not scare away. The main thing is that in the chosen region there is a demand for products and affordable wood.

In order not to burn out at the start, you need to immediately make sure that there is no ban on deforestation in the region and that such a bill is not being prepared.

You need to know the pricing policy of competitors in order to offer customers more favorable terms of cooperation.

What to include in a business plan

When creating a business plan for a sawmill, it is necessary to describe in detail the following important points:

• business purpose
• products that will be produced by the sawmill
• where to get raw materials for production
• what equipment to buy
• what professionals to hire
• where is the company located
• how much to invest
• how quickly the investment will pay off
• what are the risks of such a business
• who will buy the finished product

These points should be described in as much detail as possible in order to get a complete and clear picture of the future prospects of the enterprise.

Market analysis

Before you start organizing a business, you need to conduct a thorough market analysis. You need to pay attention to:

• sawmill prospects in the selected region;
• availability of raw materials;
• the number of competitors (direct, indirect);
• sales market;
• target audience.

Still it is necessary to estimate stocks of timber in the region. Understand who can become a regular customer and buyer of finished products. Find out what salaries competitors offer to their employees and how much people generally earn in the selected city or village.

It is also necessary to analyze the real estate market of the region in order to buy a plot or a building at an affordable price. There is also always a chance to acquire a certain area of ​​forest for subsequent felling and obtaining raw materials. But this increases the amount of initial investment, making it unbearable for some. Therefore, it will be more profitable to cooperate with local forestries.

Marketing plan

The marketing plan should contain a list of products that are planned to be released. It could be:

• clapboard
• moldings
• Facing bars
• Wet and dry boards
• Rounded and rafter logs

When creating a plan, you need to understand which businesses and entrepreneurs need these materials. For example, those involved in the construction of country houses and baths need such products. Or transport companies that need wooden pallets.

In the marketing plan, it is necessary to prescribe the methods and principles for promoting the sawmill: local and specialized media, the Internet, advertising on billboards, transport, etc.

Registration of a sawmill

A small sawmill can be run by an individual entrepreneur. Therefore, if production on an industrial scale is not planned, then it will be enough to register an IP.

It is advisable to register a large enterprise as a Limited Liability Company. This will allow us to work with large companies on a long-term basis and supply large batches of finished products.

Industrial enterprises, furniture factories, construction companies are more willing to work and trust LLC more than individual entrepreneurs.

When registering a sawmill with the Federal Tax Service, you must specify code 20.1.

An LLC must have a Charter and an authorized capital of at least 10,000 rubles.

During the registration process, you need to register with the Federal Tax Service and the Pension Fund.

Also, for the implementation of activities, you will need to collect the following documents:

• Lease agreement or ownership of the plot.
• The act of conducting an inspection by the State Fire Supervision Authority.
• Agreement with the forestry.
• Land plan.
• Contract for the supply of raw materials.

After registering with the Federal Tax Service, you need to open a current account. This can be done at any bank: public or private.

Place for sawmill

The minimum area for a sawmill is 30 acres.

When choosing a site, you should pay attention to the convenience of access roads. Long timber trucks should easily drive up to production or loading and unloading buildings.

When building a sawmill building, it is worth remembering that it should be zoned to:

• manufacturing facility
• storage warehouse for raw materials
• warehouse for storage of finished products
• loading and unloading area
• cloakroom and dining room for staff
• bathroom: toilet and shower

The premises must be connected to an electrical network capable of withstanding high loads.

You also need to take care of the availability of fire extinguishing equipment and fire alarms. Do not forget about high-quality ventilation of industrial and administrative premises.

Equipment for sawmill

The number of equipment depends on the products produced. The minimum set for a small sawmill looks like this:

• tape machine
• disk machine
• frame machine
• gang saw
• hand saws
• edge cutting machine
• wood drying chamber
• saw grinder
• waste press
• forklift.

It is worth taking care of the delivery of finished products to customers. This will require at least one truck.

Employees and workers

The staff of modern sawmills is:

• Head - the individual entrepreneur himself or the founder of the LLC can act.
• Accountant.
• Sales and Customer Relations Manager.
• Sales representative for finding new customers and product presentation.
• Sawmill foreman.
• Machine operators.
• Framers.
• Storekeeper.
• Locksmiths.
• Truck and forklift drivers.
• Cleaners and security guards.
• Handymen.

For the competent operation of the sawmill, it is necessary to hire about 15 workers. In the future, with the expansion of the business, new specialists will be needed.

Sales market for finished products

When all organizational issues are resolved, you need to take care of customers. They may be:

• building materials stores
• construction companies building country houses
• factories for the production of furniture, doors, windows
• bases and wholesale warehouses of building materials
• hypermarkets
• private developers
• individuals: farmers, summer residents, etc.

Product promotion and customer acquisition

As soon as production is launched, you need to create an official website for the sawmill. On its pages, it is necessary to demonstrate finished products, place contacts, information about cooperation and promotions.

In order for the site to be seen by more people, it should be added to online directories, launched and found by the target audience in social networks.

Each region has media - TV, radio, newspapers. There are even specialized publications. It is worth using these tools to promote the sawmill.

You can also attract the attention of the target audience by advertising on billboards along the roads, next to hardware stores and directly to the sawmill itself.

Trucks that deliver finished products should also participate in advertising. It is enough to place a logo, the name of the company and briefly list what it produces on the sides and doors. There must be a phone number.

Do not ignore the cold. They can be sent to the email addresses of potential customers.

To effectively promote the sawmill, you need to use all marketing tools. For these purposes, it is better to hire an experienced marketer.

The financial side of the issue

The main item of expenditure is the purchase of equipment. It is about 2,000,000 rubles. This is taking into account that the equipment is new, not used. It is not recommended to buy old machines, because then they will cost more to maintain.

If you manage to find a room in a suitable place, then its rent will cost about 100,000 rubles. per month.

Repair of premises - workshop, office, household - will cost 250,000 rubles.

Before starting production, the equipment must be set up. Start-up and adjustment works will cost 25,000 rubles.

As a result, it turns out that in order to open a sawmill from scratch, you need to have an amount of about 2,500,0000 rubles. And almost 1,000,000 rubles. You may also need to buy transport.

All investments in the business will pay off in 12 months. Profitability - 70%.

For those who have no idea what it is like to open a sawmill, it is very difficult to perceive this type of activity as a business. However, it can be quite profitable, if, of course, the entrepreneur can properly organize the work and learn all its secrets.

What is a sawmill as a business?

First of all, it should be taken into account that this enterprise is not engaged in deforestation and tree felling, it only processes them, receiving various blanks - bars, logs, boards, etc. The sawmill also works outside the forest (although it can be organized there too): it can open anywhere, and its main task is to be convenient for suppliers of raw wood. Ideal places to open a sawmill:

• outskirts of cities in areas where logging enterprises are located (the closer they are located, the lower the cost of transporting timber)
• industrial zones with well-established infrastructure - the sawmill must have a powerful electrical network with a capacity of at least 400 kW (if it is not there, you will have to spend a lot on laying an electrical cable)
• areas with convenient road infrastructure: good and convenient roads should lead to the enterprise

In any case, a sawmill, as a business, will “take root” well where there is enough space for this enterprise: it will require the construction of several fairly large buildings (a production workshop, a product warehouse, a shed, buildings for staff, an administrative office). The total area must be at least 1 thousand square meters. m.

However, before opening an enterprise, it is imperative to collect all the documents for opening a sawmill. A businessman will need to create an individual entrepreneur or LLC, register with the tax office and obtain a work permit. It is issued by the local authorities and can only be obtained if the work is carried out in an area where logging and processing is permitted. Therefore, the choice of area will need to be taken care of separately. Also, a start-up enterprise will have to check the fire inspection, which will make sure that its work will be safe for the surrounding areas. After obtaining permits, it will be necessary to conclude agreements with forest suppliers.

How to open a sawmill?

When a place for the enterprise is selected, and all the documents for opening a sawmill are collected, you can proceed to organizational issues. Chief among them is the construction of buildings necessary for work (you can save a lot if you buy or rent a site that already has suitable buildings), hiring employees and purchasing equipment. Sawmill staff should include:

• manager (this may be the businessman himself)
• sharpeners
• framers
• workers

As for the equipment, you will have to choose literally every single machine, since the choice of equipment is very large, and the prices for it vary. Here are just a few examples of possible costs:

• 800 thousand rubles - 1 million - for a circular saw
• 150-200 thousand - for a multi-saw machine
• 100 thousand - for a band sawmill

About 3 million rubles more will need to be spent on additional equipment and tools, the purchase of blanks, as well as on the lease of space (the latter may amount to about 100 thousand rubles per month). The construction of buildings for the sawmill from scratch will cost at least 5 million rubles. Also, another 200-300 thousand monthly will be needed to pay wages to employees and pay taxes.

What will be the profit from the sawmill?

It all depends on what the company produces, and it is best to earn money by supplying customers with:

• "raw" and "tare" board
• bar and bar
• various wooden pallets
• cable reels

1 cu. m of dead wood during the purchase will cost 1.2 thousand rubles, 1 cu. m of raw wood - 1.8 thousand. Ready-made materials can be sold at 5 thousand per 1 cu. m.

At the same time, if you open a sawmill that will have an accompanying production (the mentioned coils for cables and pallets), you can earn extra - a unit of production can cost 150-200 rubles at a cost of 25-30.

As a rule, the cost of starting a business pays off in 1.5-2 years. Profit from the sawmill will grow very quickly, and a businessman only needs to take into account the needs of potential and real customers working in his area in order to establish the most profitable production that will bring a consistently high income.

The question of how to open a sawmill, you will solve without problems if you have a desire to work in the woodworking industry, as well as start-up capital.

Capital investment in business: from 1,000,000 rubles.

Payback: from 1 year.

In recent years, being closer to nature and striving to care for the environment has become a real fashion.

What caused, among other things, a rapid jump in the popularity of wooden houses, cottages and other construction from natural materials.

And this, in turn, led to sawmill as a business began to attract many entrepreneurs. Including beginners, because this entrepreneurial activity is distinguished by a rather simple start.

The amount of capital investment is also not prohibitive: 1,000,000 rubles is enough to open a full-fledged production.

In general, a sawmill is a special machine that cuts wooden beams or logs (the so-called roundwood) along.

But later this word began to be used for the name of the entire production as a whole, where the sawmill is the main, but not the only piece of equipment.

If this profitable business has attracted your attention, from the article you will learn all the details and secrets of its organization.

Sawmill as a business today

The surge in popularity of "natural" wood building has created fertile ground for a sawmill.

Accordingly, the competition among entrepreneurs also intensified.

But there is also a positive side to this.

For example, those who want to save money at the start can purchase used equipment.

Of course, this step must be approached wisely. But if you know what and how to choose, you can use this excellent opportunity to reduce the threshold for entering the business.

Also, based on current trends, we can conclude that the crisis, for some reason, does not concern the production of window frames from natural materials.

This means that the products produced by sawmills will be in demand in any case.

Analysis of the market situation

“When unraveling the secret of managerial success, it’s worth looking not at the solution, but at the way that made it possible to come to it.”
Justin Menkes

Although the sawmill business is profitable and in demand, these indicators cannot be generalized.

For some regions, the benefits will not be as clear, if not significant at all.

If you plan to open a sawmill, it is worth evaluating the situation according to the following indicators:

• How competitive is the woodworking industry in your area?
• Are there sufficient markets or will the raw materials have to be transported to another region?
• What products are bought especially actively (what do you need to focus on the production of)?
• What are the suppliers in your area and under what conditions are they ready to supply raw materials?
• Does the administration of your region issue logging permits?
  Is it possible to introduce a ban on activities in the near future?

What is needed to start a sawmill business?

The first thing you need to do before starting any business is to write a business plan.

In the document for the opening of the sawmill, you need to highlight the following points:

• stocks of wood in the area selected for development,
• where the product will be sold
• how much does it cost to open a sawmill and what exactly will this money be spent on,
• what equipment is required for work,
• how many people will need to be hired in the state, and what wages will be set for them,
• calculation of the profitability and payback of this project.

When you analyze the current state of affairs in the woodworking industry in your region, pay special attention to competitors.

It is necessary to assess their presence in different areas (processing of raw materials, its production, manufacturing, etc.).

It is also important to determine the share of their presence.

Based on these data, a conclusion is made about potential competitive advantages.

For some enterprises, a more affordable price will be a coup, for others, convenient terms of delivery to customers.

Financial calculations are also a very important section of the sawmill business plan. Perhaps even the most important.

The usual investment to open a sawmill is at least 2 million rubles.

But if you correctly analyze all of the above points and develop a work strategy, you can get by with less investment.

Payback in this case will be no more than a year.

Potential distribution channels for the sawmill

It is important to identify channels for selling sawmill products at the stage of the business plan.

By the time you open, you should already have a list of outlets. A website presenting the company has also been prepared.

It is also important to add data about the organization to thematic portals and relevant printed publications.

Products for sawmills are in demand:

• various furniture factories;
• factories that produce window and door profiles from wood;
• firms that make other wood products;
• building materials stores;
• wholesale points of trade in wooden building materials;
• individual developers and others.

How to open a sawmill: we select premises

To open a sawmill, you need to buy or find a room for rent, the size of which will be at least 500-700 sq.m.

It makes sense to look for square meters not in the central regions.

This way you can save up to 50% on the cost. Of course, we will have to invest in the arrangement of the entrance to the production and beautification of the territories.

But due to the short distance between the forest and the workshops, you will be able to save on the transportation of raw materials in the future.

On the territory of the complex should be located a lot of production facilities:

• the main workshop where the production is located;
• workshops where repairs are made;
• a place to store stocks of raw materials;
• warehouse for manufactured sawmill products;
• hangar;
• administration building;
• personal premises for employees - toilet, shower, kitchen.

How to open a sawmill from scratch: employees

A sawmill is a business that cannot be opened alone.

You will need a team of professionals, which will consist of the following positions:

• administrator,
• machine workers,
• repair workers,
• handymen,
• drivers,
• security (watchmen).

The size of the team will depend on the expected production volumes.

Payment should be set piece-rate in order to create an additional incentive for employees to work.

Risks of opening a sawmill

When drawing up a development plan for a business, it is important to consider the point of potential risks that may arise when opening a sawmill.

There are two main difficulties:

1. Opening a sawmill is relatively simple and does not require a huge start-up capital.
   Therefore, many start-up entrepreneurs try their hand at this area, creating huge competition.
   At the same time, many sawmills are closed after the first working season.
   Still, the fact of high competition in the field cannot be canceled.
2. Another risk that awaits entrepreneurs who decide to open a sawmill is a high level of dependence on the construction industry.
   The more the demand for construction services falls, the worse things will be at the sawmill.

How much money do you need to open a sawmill?

It will take at least 1 million rubles to open a sawmill.

The largest part of the costs (about 70%) will be for the purchase of equipment.

If you want to save on this item, you can consider buying used machines.

In connection with the past crisis, a lot of high-quality equipment is on sale at a very affordable price.

But what you should not do in any case is to buy machines from unreliable manufacturers, which differ only in cheapness.

After all, the quality of your equipment is the key to success.

One breakdown can stop the work of the sawmill, and this is unacceptable.

The opening cost table looks like this:

Business expense item	Amount (rub.)
Total:	From 1,000,000 rubles
Purchase of equipment	From 700 000
Setting up and starting equipment	20 000
Premises for rent	From 50 000
Repair and arrangement of premises	From 100 000
Advertising campaign	From 10 000
Employee salary	piecework
Unrecorded expenses	20 000

The video below shows

sawmill workflow:

Is the sawmill a profitable business?

Statistically, all investments in the sawmill business will pay off in a year of operation.

The level of profitability in this case is at least 40%, and sometimes up to 70%!

And this is a very high figure.

But if you are going to open a sawmill of a more serious level, the numbers will change.

Extensive production will cost the entrepreneur no less than 4,000,000 rubles.

The payback period for invested funds will increase to several years.

There is an important detail that will help you get more income from your activities.

To do this, you just need to establish a cycle of work that will not have waste. After all, about half of the raw materials remain in the form of sawdust, shavings and other small wood waste.

They can not only heat dryers, but also sell them.

Especially actively they will "disperse" in the prepared form - that is, as fuel briquettes or granules.

But you can also sell them as material for firms producing furniture boards.

In any case, it is also possible to make money on the seemingly useless waste from the production of a sawmill.

And as a bonus, get more loyalty from environmental services.

At the end of the above, we can conclude.

If you have a desire to work in the woodworking industry, as well as a starting capital of at least 1,000,000 rubles, the question is, how to open a sawmill, you will solve without problems.

This business is not accompanied by many difficulties.

Moreover, there are many loopholes that can help save or increase revenue without harming production.

The sawmill is a profitable business, but highly competitive.

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Often, aspiring entrepreneurs cannot decide in which area to start their activities in order to immediately start earning income. The sawmill is a profitable business that is in demand. For construction, bars or tes are always needed, because repair work never ends. Therefore, it is worth figuring out how to open a sawmill from scratch and what costs will have to be made.

Where to start a business?

To open a sawmill you need:

• A room or workshop where there is electrical wiring.
• Warehouse for storage of finished products.
• Storage area for raw materials (round timber). Ideally, with a capacity of at least 300 m³ of wood.
• Working sawmills. The minimum composition: a framer, a couple of assistants, a sharpener.
• Establish a supply chain for round timber for further processing. According to statistics, most sawmills cannot function properly due to late deliveries. Therefore, it is better to open a sawmill near a potential source of raw materials.
• Try to work out a scheme for selling the forest.

Sales of wood

Since lumber is always in demand, there are no problems with sales, if you do not overestimate the average market prices. There is an option to increase profits if you cut wood to order. With well-established supplies of raw materials, you can safely cut "in reserve", and carry out sales directly from the warehouse. If production is at a high level, then it is necessary to organize sales of goods in local markets. It would be useful to go with the finished products of the sawmill to remote areas where there are problems with the supply of lumber.

Business and its features

Any business has its own nuances. Features of the sawmill:

• Drying of finished materials. In summer, it is better to lay out the products on linings so that they do not corrode. In winter, lumber can be packed without lining. In the future, you should get a drying unit, which will facilitate the workflow.
• Waste can also be sold as fuel briquettes. For their production, you will have to purchase an additional installation, but the production will become waste-free. Additional profit will only bring benefits, you will not have to look for opportunities for waste disposal.
• Wages should be paid depending on the products produced in order to interest the sawmill workers in increasing volumes. Any work should be adequately paid, especially such hard work as in this type of production.
• The sawmill requires legal registration. You should open an LLC or IP in accordance with the established rules.

Business registration

designing a sawmill is best to open an IP. The registration procedure will take less time and money. At the same time, less taxes are levied on an individual entrepreneur than on an LLC. The state keeps 6 or 15% of the profits. The difference in rates lies in the fact that in the second case, the costs of the taxpayer are taken into account. In some regions, you can get a patent for wood processing. This point must be clarified with the Federal Tax Service at the place of registration. The simplified tax system or a patent will facilitate bookkeeping at the enterprise.

A forest license is not required.

There are two options for sawing wood:

• Work on a round timber supplied by another organization.
• Sawing and cutting down your own forest. To do this, you need to rent a forest area to cut it down. Please contact the Forest Department. The law prohibits the sale of the forest, as it cannot be privately owned. However, it can be rented. To cut down round timber on a rented site, you will have to obtain a permit. Such actions are regulated by the relevant resolution "On the issuance of a permit for the production of cutting down trees."

Renting a plot requires land surveying. An enterprise that performs such a procedure will charge a certain amount for its services. Further, a cadastral passport is issued along with an act for the survey of the territory. When the documents are received, you can start cutting down (harvesting) the forest.

The land is leased for no more than 49 years.

To obtain a logging permit, you need to prepare the following documents:

• A document confirming the ownership of the land. If the land is leased, then a permit (duly executed) for felling issued by the owner.
• Coordination with the relevant department.
• The act of surveying the territory.
• Land plan.

To open a business entity, you need to prepare:

• IP registration application. Most operations can be performed on the Rosreestr website online.
• Original and copy of the individual taxpayer number.
• Passport (1 page, registration).
• Receipt of payment of state duty (800 rubles).
• If necessary, an application for the transition to the simplified tax system.

Manufacturing risks

Any business is exposed to risks, depending on the specification of the enterprise. Risks to which the sawmill is exposed:

• Fire hazard. Every building is subject to this risk, but here it is increased due to the work with timber. 90% of the damage can be suffered from fire, because wood belongs to the category of flammable materials. To reduce the risk, you need to insure the business (land, round timber, finished products). A fire alarm will not interfere, compliance with safety regulations during all types of work.
• If the warehouse is large, it will save if there are supply disruptions. Ideally, the warehouse should have a supply of raw materials for 2 months of uninterrupted operation.
• Storage. Raw wood is much cheaper than dry wood. It is recommended to build a canopy over the raw materials so that they are not afraid of weather conditions.
• It is worth considering the possibility of obtaining a ban on deforestation near the sawmill. We need to make sure that such a ban is not planned in the near future.

If you follow these rules, then you can safely choose the right place for organizing a sawmill and doing business. Naturally, this list does not take into account such factors as absenteeism of employees from work, interruptions in the production process due to late payment of wages, weather conditions. Every business is attractive depending on the area where it is implemented. It is not necessary to start a business from scratch. Perhaps someone decides to sell a ready-made sawmill, which will greatly facilitate the conduct of business.