Are you about starting a firewood delivery business? If YES, here is a complete sample firewood delivery business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a firewood delivery business. We also took it further by analyzing and drafting a sample firewood delivery business marketing plan template backed up by actionable guerrilla marketing ideas for firewood delivery businesses. So let’s proceed to the business planning section.
Table of Content
- Why Start a Firewood Delivery Business?
- 1. Industry Overview
- 2. Executive Summary
- 3. Our Products and Services
- 4. Our Mission and Vision Statement
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 8. Our Target Market
- 9. SALES AND MARKETING STRATEGY
- 10. Sales Forecast
- 11. Publicity and Advertising Strategy
- 12. Our Pricing Strategy
- 13. Startup Expenditure (Budget)
- 14. Sustainability and Expansion Strategy
Why Start a Firewood Delivery Business?
An entrepreneur is basically someone who provides solutions in terms of products or services in exchange for a fee. It means that if you want to venture into any business, it should be a business that is set to provide solutions to people’s need. It could be people in your immediate environment, your country or on a global platform.
For sure it is challenging starting any business, but one business that you can start with little challenges is a firewood delivery business. This business involves helping your clients deliver firewood to homes or offices as the case permits.
With this type of business, you can choose to own a firewood store if you have the financial capacity to or you can choose to operate without a store. The bottom line is that you should know how to source for firewood and how to get them delivered to your customers.
Starting a firewood delivery business is profitable because people need firewood to warm up their houses especially during winter. This business is very easy to start and it is not capital intensive.
So if you have decided to start a firewood delivery business, then you should ensure that you carry out feasibility studies and also market survey. Business plan is yet another very important business document that you should not take for granted when launching your own business.
Below is a sample firewood delivery business plan template that can help you to successfully write your own with little or no hassles.
A Sample Firewood Delivery Business Plan Template
1. Industry Overview
Firewood delivery business is part of the Lumber Wholesaling industry, and this industry includes businesses that distribute a range of lumber, plywood, millwork and wood panel products to contractors, home improvement stores and hardware stores. The industry also includes wholesalers that distribute non – wood roofing and siding materials, and establishments that distribute timber and timber products, such as railroad ties, logs, firewood and pulpwood.
Looking at happenings in this industry, you will come to the conclusion that despite the presence of several buyers, residential construction and retailers remain the single largest sources of demand for the Lumber Wholesaling industry. Improved downstream demand has caused an increase in lumber prices, raising selling prices and buoying both revenue and profit over the five-year period.
However, despite improving demand conditions, the overall number of companies in the industry has fallen, triggered by the exit of numerous small-scale operators and consolidation among the larger and more successful incumbents.
Nevertheless, the industry remains highly fragmented with a low market share concentration. The majority of lumber wholesalers still work alone or employ fewer than five people and operate within a localized radius.
The Lumber Wholesaling industry (firewood delivery businesses inclusive) is a major sector of the economy of the united states and most countries that experience harsh winter. In the United States alone, the lumber wholesaling industry generates over $90 billion annually from more than 10,592 lumber wholesaling businesses all around the United States of America.
The industry is responsible for the employment of over 127,779 people. Experts project the lumber wholesaling industry to grow at a 2.5 percent annual rate within 2013 and 2018. Please note that there are no companies with a dominant market share in this industry.
A recent report published by IBISWorld shows that the Lumber Wholesaling industry exhibits a low level of capital intensity. In 2018, operators will invest $0.07 in machinery, equipment and other capital expenses for every $1.00 spent on labor. Capital requirements include computerized logistic equipment, head saws, forklifts and trucks for transporting and stacking lumber. Capital intensity is low because equipment depreciates slowly.
The report also revealed that wholesaling operations are not reliant on the extensive use of machines since the product is largely untransformed; instead, wholesaling relies on purchasing inventory and distributing it. Therefore, purchase costs eclipse all other costs, including wages and depreciation in this industry.
Over and above, firewood delivery services business is indeed a profitable business venture and it is open for any aspiring entrepreneur to come in and establish his or her business; you can choose to start on a small scale without a store or you can choose to start on a large scale with standard firewood store and strong online presence.
2. Executive Summary
Elton Johnson® Firewood Delivery Services, LLC is a registered firewood delivery service. Our firewood delivery will be located in one of the busiest streets in Burlington – Vermont. We have been able to lease a facility that is big enough to fit into the kind of firewood delivery business that we intend launching and the facility is centrally located in the heart of town with easy delivery network.
We are aware that there are several large and small firewood retail store outlets all around Burlington that are also into home delivery services, which is why we spent time and resources to conduct our feasibility studies and market survey so as to offer much more than our competitors will be offering.
Elton Johnson® Firewood Delivery Services, LLC will ensure that all our customers are given first class treatment whenever they order firewood from us. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large they may grow to.
Elton Johnson® Firewood Delivery Services, LLC will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
Elton Johnson® Firewood Delivery Services, LLC is owned by Elton Johnson. He has a B.Sc. in Business Administration, with over 8 years’ experience in the retailing industry. Although the business is launching out in Burlington – Vermont, but there is a plan to expand our distribution network all across the state of Vermont and neighboring cities.
3. Our Products and Services
Elton Johnson® Firewood Delivery Services, LLC is in the firewood delivery line of business to make available firewood to our clients.
4. Our Mission and Vision Statement
- Our vision is to become the leading brand in the firewood delivery line of business in the whole of Burlington – Vermont.
- Our mission is to establish a firewood delivery business that will make available a wide range of high burning firewood at affordable prices to the residents of Burlington and other cities in Vermont where we intend marketing our services.
Our Business Structure
We will ensure that we put the right structure in place that will support the kind of growth we have in mind while setting up the business.
We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders. As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.
In view of that, we have decided to hire qualified and competent hands to occupy the following positions that will be made available at Elton Johnson® Firewood Delivery Services, LLC;
- Chief Executive Officer (Owner)
- Human Resources and Admin Manager
- Sales and Marketing Manager
- Accountants / Cashiers
- Customer Services Executive
- Drivers / Distributors
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
Admin and HR Manager
- Defines job positions for recruitment and managing interviewing process
- Carries out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversee the smooth running of the daily office activities.
Sales and Marketing Manager
- Manages external research and coordinates all the internal sources of information to retain the organizations’ best customers and attract new ones
- Identify, prioritize, and reach out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Client Service Executive
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries
Distribution Truck Drivers
- Assist in loading and unloading of firewood
- Maintain a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
- Keep a record of vehicle inspections and make sure the truck is equipped with safety equipment
- Assist the transport and logistics manager in planning their route according to a delivery schedule.
- Local-delivery drivers may be required to sell products or services to stores and businesses on their route, obtain signatures from recipients and collect cash.
- Inspect vehicles for mechanical items and safety issues and perform preventative maintenance
- Comply with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
- Collect and verify delivery instructions
- Report defects, accidents or violations
6. SWOT Analysis
Our intention of starting just one outlet of our firewood delivery service within Burlington – Vermont is to test run the business for a period of 2 to 5 years to know if we will invest more money, expand the business and then start our firewood delivery services all around the state of Vermont.
We are quite aware that there are several firewood stores all over Burlington and even in the same location where we intend locating ours who are also into home delivery services, which is why we are following the due process of establishing a business.
We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.
Elton Johnson® Firewood Delivery Services, LLC employed the services of an expert HR and Business Analyst with bias in retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.
This is the summary of the SWOT analysis that was conducted for Elton Johnson® Firewood Delivery Services, LLC;
Our location, the business model we will be operating on robust home delivery network, varieties of payment options, wide range of quality firewood and our excellent customer service culture will definitely count as a strong strength for Elton Johnson® Firewood Delivery Services, LLC.
A major weakness that may count against us is the fact that we are a new firewood delivery business and we don’t have the financial capacity to compete with major players in the industry.
The fact that we are going to be operating our firewood delivery business in one of the cities with hash winter and with the right demography in Burlington – Vermont provides us with unlimited opportunities to service a large number of people.
We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they patronize our products and services; we are well positioned to take on the opportunities that will come our way.
Global warming, alternate products used for heating such as gas and electric heater et al are a major threat to the sale of firewood. The truth is that there are legislation that discourage the felling of firewood and that is indeed a major threat for a business such as ours.
7. MARKET ANALYSIS
- Market Trends
The challenge of global warming and afforestation is really posing a threat for firewood delivery businesses in developed countries where strict enforcement against afforestation is followed to the latter.
The trend now is that, in order for players in the firewood delivery business to continue to generate sales, they will concentrate in communities with a demography that still prefer the use of firewood as against expensive form of heating such as gas and electric et al.
8. Our Target Market
We have positioned our firewood delivery services to service residents of Burlington – Vermont and every other location in and around the state of Vermont. We have conducted our market research and we have ideas of what our target market would be expecting from us.
We are in business to deliver a wide range of firewood to the following groups of people;
- Religious houses
A close study of the firewood delivery business reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.
We are aware of the stiffer competition and we are prepared to compete favorably with other leading firewood delivery businesses in Burlington – Vermont.
Elton Johnson® Firewood Delivery Services, LLC is launching a standard firewood delivery services business that will indeed become the preferred choice of residents of Burlington – Vermont. Our business is located in a corner piece property on a busy road directly opposite one of the largest residential estates in Burlington – Vermont.
We can boast of a guaranteed supply of key inputs, ability to control stock on hand and proximity to key markets, excellent customer service culture, timely and reliable home delivery services, online presence, various payment options will serve as a competitive advantage for us.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Elton Johnson® Firewood Delivery Services, LLC is in business to deliver a wide range of firewood to the residents of Burlington – Vermont. In essence, our source of income will be the delivery of firewood.
10. Sales Forecast
We are well positioned to take on the available market in Burlington – Vermont and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six months of operation and grow the business and our clientele base.
We have been able to examine the firewood delivery line of business, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.
Below are the sales projections for Elton Johnson® Firewood Delivery Services, LLC, it is based on the location of our business and other factors as it relates to firewood delivery startups in the United States;
- First Fiscal Year: $120,000
- Second Fiscal Year: $350,000
- Third Fiscal Year: $650,000
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be drastic government policies that ban the use of firewood in the United States of America. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Before choosing a location for Elton Johnson® Firewood Delivery Services, LLC, we conduct a thorough market survey and feasibility studies in order for us to penetrate the available market and become the preferred choice in Burlington – Vermont. We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.
We hired experts who have good understanding of the firewood delivery line of business to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Burlington.
In summary, Elton Johnson® Firewood Delivery Services, LLC will adopt the following sales and marketing approach to win customers over;
- Position our signage / flexi banners at strategic places around Burlington – Vermont
- Create a loyalty plan that will enable us reward our regular customers
11. Publicity and Advertising Strategy
Even though our firewood delivery services business is well located, we will still go ahead to intensify publicity for the business.
Elton Johnson® Firewood Delivery Services, LLC has a long term plan of expanding our home delivery services all around Vermont which is why we will deliberately build our brand to be well accepted in Burlington before venturing out.
As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Elton Johnson® Firewood Delivery Services, LLC;
- Place adverts on community based newspapers, radio and TV stations.
- Encourage the use of word of mouth publicity from our loyal customers
- Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business.
- Ensure that our we position our banners and billboards in strategic positions all around Burlington – Vermont
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Advertise our firewood delivery services business in our official website and employ strategies that will help us pull traffic to the site
- Brand all our official cars and distribution vans
12. Our Pricing Strategy
We will ensure that we deliver firewood at prices that is slightly below the average price in the industry. It is our strategy of gaining acceptance from clients especially those who are already loyal to our competitors.
We also have plans in place to discount our firewood once in a while and also to reward our loyal customers from time to time.
- Payment Options
The payment policy adopted by Elton Johnson® Firewood Delivery Services, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Elton Johnson® Firewood Delivery Services, LLC will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards / Point of Sale Machines (POS Machines)
- Payment via POS machines
- Payment via check
In view of the above, we have chosen banking platforms that will enable our client make payment for firewood purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
When it comes to starting a standard firewood delivery business, one is expected to spend the bulk of the startup capital on renting a store/warehouse facility. Aside from that, you are expected to purchase distribution vans, pay your employees and utility bills.
These are the key areas where we will spend our startup capital;
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
- Marketing promotion expenses in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The cost for hiring business consultant – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $46,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
- The cost of purchase and installation of CCTVs, and car tracker devices – $5,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
- The cost for the purchase of delivery vans – $15,000
- The cost of launching a Website – $600
- Miscellaneous – $10,000
We would need an estimate of $150,000 to successfully set up our firewood delivery business in Burlington – Vermont.
Generating Startup Capital for Elton Johnson® Firewood Delivery Services, LLC
Elton Johnson® Firewood Delivery Services, LLC is a private business that is owned and financed by Elton Johnson. He has decided to restrict the sourcing of the startup capital to 3 major sources.
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about $50,000 (Personal savings $40,000 and soft loan from family members $10,000) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Elton Johnson® Firewood Delivery Services, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.
Elton Johnson® Firewood Delivery Services, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of facility and remodeling the shop: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the deeded furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Purchase of delivery vans: Completed
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Establishing business relationship with vendors – suppliers of firewood: In Progress