Monday, April 18, 2011

Wood Stock - Part 3

Woodland Stewardship Institute
Wood Stock Investments
Business Plan

I have realized that you don't need anything to start a business, but a good plan of action. Good ideas, experience, and a strategy for implementation.
As I mentioned in parts 1 & 2. We have a 20 plus year collection of wood that keeps growing, with an unlimited supply where that came from! People pay us to take it! Every kind of wood that grows here, and some you've never heard of.

We have the largest capacity mill anywhere. We can cut logs up to 8 ft. diameter and 32 ft. long! We have one slab of wood here that we cut on this mill that is 7 ft. wide, 5 inches thick and 10 ft. long!
The problem is, we have never sold any, to speak of.
The first order of business, the first step, has been, identification.
Every job is assigned a number, so every log has a number, and therefore, every piece of wood stock. Embossed aluminum tags are attached to every piece. This we have done since 1998.
All the work and expense of hauling, milling, moving, stacking, and stickering, we have done.
We have not implemented any computer inventory program. The wood needs to be cataloged according to species, dimensions, job number, date, and section where it is stored. Also, photographs of the better material. This has to be done to start marketing, which will require a qualified secretary with some knowledge of computer science.
The next big step is, storage. We want to use the mill to produce the material to build the wood shelters. This of course is softwood from our horse logging operations.
I anticipate that the shelters will sell also, and be a good market themselves.

As I said in parts 1 & 2, we need investors. Wood workers who want to be a part of this local co-operative, and financiers interested in a risk free investment with real tangible value, and in supporting local enterprise and jobs. Anyone who purchases stock can redeem it's value in wood at a rate equivalent to the estimated minimal wholesale value. The other option of course is, when the wood they have invested in, at just half that wholesale rate sells, they can make a good percentage on their investment.
You can see the need for capitol to make this work. It will take a few yrs. to get established with enough variety of inventory to attract buyers. Also, it takes 5 to 20 yrs. for certain hardwoods to season and stabilize enough for certain applications. This kind of wood is expensive and hard to find. That is why our many years of head start is so valuable.

Our location here in Deary is the ideal spot for a central wood yard, close enough to the quad cities and all the surrounding towns and their crops of trees. We have over a half mile strip along the old R.R. bed that intersects Main st. Most of it is zoned industrial commercial.
So, the first thing to do, as soon as we have people willing to support this kind of local utilization, and value added, wood project, is to start to inventory the wood here. In other words, the money is not appropriated until the product is listed and confirmed.
The first wood to be counted is the premium large cants that are stacked and stickered. This is because they are the least perishable. Even at the aforesaid half of minimum wholesale value, would give us enough operating capital to start building the shelters and organizing the rest of the wood and of course the new wood that is coming in every week.