Business model – Firewood Business
The firewood industry is a relatively small industry with a niche service offering. Many firewood businesses are illegally run through the unsustainable business practices of illegal tree felling and poor business management.
GroSpace would like to encourage you to start a firewood business using the financial plans described below. We’ve tried to keep this as simple as possible to encourage any reader to stop what they’re doing and get started by cutting down alien invader trees and supplying the firewood business in their local area.
If you are young, middle-aged or an older person you can start a firewood business today!
Follow the steps below to start your firewood business today.
Time needed: 13 days
Start a Firewood Business today
- Register for a GroSite
Register/Login
Don’t worry about the details, for now, you can fill them in later with one of our friendly Market Agents - Find staff
If you are looking for staff send us an email and we will allocate some of our trained staff to assist you to get the job done
hello@grospace.co.za - Looking for a business in a box?
Great! We need investors to cover the costs to produce firewood. Here is how it works:
Average Daily Revenue R3600
Average Daily Costs -R1772
Average daily profit = R3600 – R1772
= R1828
Equipment costs = R23800
Breakeven calculation:
R23800/R1828
=13 days - Looking to expand your operation?
If you are looking to grow your team and improve your productivity, mechanise and even purchase a seconod hand Toyota Hilux, here is how:
Average Daily Revenue R7200
Average Daily Costs -R3818
Average daily profit = R7200 – R3818
= R3382
Equipment costs = R257 600
Breakeven calculation:
R257 600/R3 382
=77 days - Continue reading for a better understanding
For a more indepth description of how these numbers were calculated read more below
Phase 1
Projected Output – 1 team with manual labour
- Fell and split 40x 15cm diameter trees per shift
- 4-5 bags per tree
- 160-200 bags per shift @ R20 per bag
= R3200 – R4000 per day
= R3600 average per day
Cost
Labour + fuel daily cost
- 1x Manager @ R400/day -> R400
- 2x Chainsaw operator @ R250/day -> R500
- 4x Log Splitter @ R200/day -> R800
- 4x litres of fuel @ R18/l -> R72
= -R1772
Average Daily Profit
- R3600 – R1772
= R1828
Equipment startup costs
- 4x Chainsaws @ R5000 each -> R20 000
- 4x spare chains @ R450 each -> R1800
- 4x splitting maul @ R500 each -> R2000
=R23 800
Breakeven time
- R23800 / R1828
= 13 days
Phase 2
Projected Output – 2 teams with automatic log splitters
- Fell and split 80x 15cm diameter trees per shift
- 4-5 bags per tree
- 320-400 bag per shift @ R20 per bag
= R6400-R8000 per day
= R7200 average per day
Labour + fuel daily cost
- 1x Supervisor @ R500/day
- 2x Manager @ R400/day -> R800
- 4x Chainsaw operator @ R250/day -> R1000
- 2x Log Splitter machine operator @ R200/day -> R400
- 1x Maintenance mechanic @ R200/day
- 8x litres of fuel @ R18/l -> R144
- 2x 6 hours generator x 0.8litres/hour x R18 -> R174
- Vehicle Fuel Allowance -> R200/day
- Vehicle Maintenance allowance -> R100/day
- Equipment maintenance Allowance -> R300/day
= -R3818
Average Daily Profit
- R7200 – R3818
= R3382
Equipment startup costs
- 8x Chainsaws @ R5000 each -> R40 000
- 8x spare chains @ R450 each -> R3 600
- 2x Generator @ R18000 each -> R36 000
- 2x Log splitter @ R4000 each -> R8 000
- 1x Toyota Hilux 4×4 2008-2010 model -> R150 000
- 1x 4.5m trailer double chassis trailer -> R20 000
=R257 600
Breakeven time
- R257 600 / R3382
= 76 days
General requirements
- Ablutions for tree fellers
- Living quarters for duration of contract
- Storage facility for bags of wood
Terms of engagement
This contract is entered into between GroSpace and ……………………………………………….(Client)
The period of this contract is …………………………………………… months
Date: ……………………………..
Location: ………………………………………………………………………………………………………………
Signature for GroSpace: ……………………………………………………………..
Signature for Client: ……………………………………………………………..