Can you make $1 million a year with a sawmill business?
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- Опубликовано: 10 июл 2024
- I talk about the economics of running a sawmill, with a little common wisdom about the practicality of doing what you love vs. just making as much money as possible.
Running a sawmill is hard work that earns an honest living and is very rewarding. The real question is, how much money can you make in a year? Is $1 million a realistic goal for one years profit?
I have owned my own businesses for 45 years. What ever business you want to start it is not a 9 to 5 job. You have to love what you're doing. There are pressures on the owner you never anticipate. You have to learn far more than just being a skilled in your chosen profession. You must have a business plan. Cash flow is critical. You must learn to continually analyze how you can do things better.
In the LORD'S prayer there is a line that says, "Give us our daily bread." As the owner, you have to pray that daily as HE is the ONE to move people to use your services.
Amen
Great breakdown. Running a profitable business is way more of a trick than most folks realize... When you spreadsheet the crap out of the numbers, most people find out that the margins are small and the risks are fairly high. Once you add your first employee, then you have to throw out all your numbers and start over. That first dude on the payroll is EXPENSIVE!
you are probably the most honest person talking about a rewarding business i have ever encountered, kudos to you.
If you love what your doing its worth a million dollars
But still make sure you earn something rather than nothing. Cause you are not alone you got a family and it's your duty to bring food in the table and pay medical, childs education and many more.
Superb video. I'm not going to have a sawmill business in my 7th decade but you've got your head screwed on right. Wish you the best.
I took carpentry while I was incarcerated,and had to build a house on the yard,and noticed the material cost,and was reading about portable sawmills while I was there,I see the cost efficiency in having in one ,I would not only sell lumber but also use the material that's cut to fix my home but to save money fixing investment property I purchase in the future
Lots of small streams all going to the same place. That's how you do it.
The main thing I would say is take a pay check! Don’t run your personal life out of your business. Separate the two! They are completely different. Don’t pay your mortgage out of your business account. Your business is your business your home and personal life are based on your income not the business income because it seems to be inflated. (Gross vs. Net). And if you are profitable, put money away for a rainy day. Because no matter how Bright things are right now, that rainy day will come! Trust me I learned the hard way!
That's some sound and seasoned advice there!
really good point. it's easy to justify over investing in the business and under investing in your personal life
jsjohnnyboy, excellent point.
You need to separate the two. Your business needs to pay you a weekly salary AND THEN a profit at the end of the year. This way, what you get is NET This way you have a legal account and MONEY for yourself. You are thus EMPLOYED by your business. The remainder is icing in one lump IF you have any left over at the end in December...
I agree jsjohnnyboy. I always have at least six months worth of income sitting in the bank because in real estate, like most businesses, cycles dictate paydays. Also, save the money for your taxes in a separate account. It's easy to see it in your account and think it's yours.
I have owned my own millwork business for over 20 years you are spot on. Biggest thing I have learned about business is a quote I don't know where it came from but it always stuck with me. " few will help you dig the well, but many will show up with a bucket when you are done" be careful as there were a lot of people who want in your pocket. We are recent into the sawmilling side mainly a start up for my son, and it's funny how many people have there hand out for a piece of the pie. Such as " oh I'll bring a log can you cut it for me.....yeah for $..... funny how the tune changes. Love what you do and you will always be satisfied.
I think the 1 million a year number is people thinking they'd get rich quick doing this not realizing how labor intensive it is or how much time is involved in it.
I definitely think it's worthwhile for someone looking to do a hobby farm/homesteading. I can easily see someone who doing it part time making 40k plus a year.
Interresting video! We bought last year a used Woodmizer LT 20 (might be an LT 35 in Northamerica) and we charge $120 per sawing hour (I did put on a hourmeter that just counts when the blade is running). So that pays for blades, the sharpening inkl. shippingcost for sharpening, fuel and the cost of the saw after 300h of sawing (running blade). For paying the operator we charge $28 per hour, doesn't matter if he is sawing turning logs or even driving to the job...
Might be different to other countries, but those prises can be quite cheaper than haul logs to a sawmil and picking up again. And it depends if we cut boards or beams, sawmils here charge about $140 per m3 of wood. 2 m3 of wood cut into boards is usually not a problem with our sawmil... beams are even faster of course.
Thanks for your videos, we could learn quite a few things👍🏻
Great video and very informative. As you stated almost all business,s are relatively the same when it comes to income for a small one or two man operation. The only difference is the amount of room you need to operate it and the amount of equipment needed to do it efficiently. Thanks for the video.
Thanks for the message, I preach this to my boys all the time!
I think a lot of people go into the business sawing lumber not knowing much about sawing lumber. That's the most important thing. Know the craft and know it well. Just don't assume that you know or think you'll learn as you go. That's good. We learn something new just about everyday but learning as much as you can about it will put yourself ahead of the game. Thanks Tim.
Love the transparency wish i was closer to your area i would buy from you. Words of wisdom on being happy with your work, i could not agree more. Be blessed.
Very very good presentation and a very very nice guy who knows what he´s talking about. A lot of thumbs up!!
I own a portable sawmill service, I’m working on my second million, I gave up on my first one ha ha
I wish I could upvote this a thousand times! Great video and profoundly strong message.
I like your attitude. I watched this before but just wanted to refresh my short memory... thank you for sharing this
Thanks for the info I’ve been running my own construction business for 2 years and I’m now thinking about cutting timber and milling it myself your video was very helpful.
Did you decide to start your own mill?
I have been milling for a very long time (well over 1 million FBM) and this is a very reasonable assessment.
Where are you located? I’m looking to start one
Great Video, your candor and honesty are appreciated. Thank you
Great Video! As I have been telling my children since an early age, do what you love! If you do you will NEVER work a day in your life and you will be the best at what you do. Money is secondary, if you're the best, the money will be there. I love your videos!
Awesome advice. Certainly worth taking to heart.
Thanks Southern Indiana Sawmill. Really appreciate your advice. We had a family sawmill business a few years ago with some really bad advisers. I went into the business reluctantly as I saw my Dad was being led down the garden path by this adviser. Long story short we ending up making some money but incurred a lot of debt because of the unrealistic figures given to us by the so called expert adviser (who we had to fire). I promised myself that if I ever did it again I would go into it with my research done first and I would learn to walk before I can run. We had a Lucas 6-12 Sawmill which I dont think is even made anymore. Anyways will be buying a Woodmizer LT40 next month and learning from our past mistakes. The Lucas was really a hobbyist sawmill that wasnt able to harvest the volume of Fijian hardwood needed to make the business profitable. Also we just plain employed too many people that it ate up whatever we earned. Start simple, go solo, then build up as you can afford to. All solid advice that you gave to your viewers and I concur completely with everything you said, especially about making an honest living from doing what you love. Thanks for the advice and God Bless from Fiji.
Thanks so much for your response! You will love that LT40! Get the super if you can afford the extra $!
this is such a useful, practical guide to sawering. thank you. :)
Smart man thank you for your insight 👍 keep working hard fellow southern Hoosier
Yeap, it is possible... Not alone as you mentioned, but it is totally possible! Thanks for the video... I'm from southern part of Brazil - Pinus taeda and eucalyptus land - and today I realized I want to start to work on my lumber company....
Your lessons ring true in many forms of labor and business. I work in a large factory for a huge corporation that is much different than a sawmill yet I can relate with your point of view.
Thanks for your time and effort much appreciated
This is my second time watching this video. The first time, I was 1 year into my sawmill business (LT35 new) and now I am 3 years into the business. Your video was good advice then and now.
Sawmilling is hard work. For me running the mill is the easiest part of the job. Stickering, drying, and moving the boards around is three quarters of the work. Selling lumber is a pain in the butt customers suck, they complain about everything and do not want to pay a reasonable price for lumber, waning to get hardwood at 2x4 prices.
Now, I saw a couple times per year for money, but mostly I cut down free farm standing timber saw the logs into boards on site. Haul it to a friend's place to stack and sticker for a year. Kiln dry it in my solar kiln then make finished products to sell or use. I can sell a cutting board, box, or some trim easier than rough cut lumber. Now I get to work in the shop in the heat of the summer and when the snow is deap. And I saw logs in the spring and the fall.
Owning a sawmill is a great way to deduct a lot of expenses from your taxes. Maby not a great way to make money. You gotta really like it to keep going.
If you want to make lots of money with a bandsaw mill sell it and get in to tree removal, that's where you can find customers willing to pay you a lot to get rid of their trees.
Why not do both? Take the trees you remove and turn them into lumber. Waste not, want not!!!
I get lots of unwanted trees for free. I don't purchase any logs. I mostly log and mill free logs from farmers. I dry the lumber myself and use almost all of it myself to manufacture stuff for resale at my friends store. I rarely deal with homeowners or customers, which is exactly the way I like to opperate.
Sub’ed ...I run a lil LT -40 hydraulic ... we cut for ourselves... skids and floor joists for a Playset business ... enjoyed your video .. Onward, Onward is the watchword..
The quickest way to make a million in the sawmill business is to start with two million!
I love this saying haha. So true.
@@tonykrueger7483
Like saying
If you to be a millionaire if you have to be a billionaire first..
Same with the farming business!
Putting an investment of 2 million and getting a million a year sounds like an amazing rate of return.
They say that about every industry especially trucking
Thank you, great info...much appreciated.
Oh! All by yourself. Of course not. Scale it so that you have a few employees and cutting 10,000 board foot per day with a production mill, sure. Then you could net $1 million a year. That’s a lot of work, though!
I have been planning on starting my sawmill business for a few months now. Started out with the idea of custom sawing, then realized that it would take me quite some time to get my customer base. I’m going to start a production mill with three employees, cut somewhere around 7000 board foot per month, then move into the custom stuff after that. Having cash flow to purchase a kiln and a machine that would be great for custom cutting, that will help!
I also have been thinking quite a bit that a fast band milll running production/quantity Will save quite a bit of wood since it will be a thin kerf/not near as much lost wood to sawdust as a circle mill!
Thankyou! I've recently been given the opportunity to obtain 15 acres in northern Michigan for pennies on the dollar. I have access to a sawmill from a family member and was THINKING about using it to kill lumber for a home on the property as well as sorting a business with it. I knew there was money to be made by milling and you just confirmed that. The mo ney I save in lumber for my home will be worth it alone!
I prefer the videos of "doing stuff"... but I actually loved this video. no real math, graphics, percentages etc. So many people hope to just make a quick buck. You message is appropriate and perfect. Don't expect to do well at anything you don't enjoy. Don't do something for the money alone. With passion comes hard work and hard work drives results (although maybe not $1M a year).
My only additional thought is how many years it takes to build the business up to a sustainable level. There are relationships that you need to develop to be successful. You mention your kiln drying, logger, customers probably the mill manufacturer, etc.
Great video - can't wait to see some sawdust.
Good info . I to run my own sawmill business , Jordan sawmill . I try to aquire a lot of logs from tree trimming companies and individuals who contact me with trees down . A skid steer or tractor is a must . As time goes by you learn what people want to buy and what to have on hand . When things are slow keep milling and stock pile because you will sell the lumber soon . I run Wood - Mizer Lt50 a very dependable tool .
I am a professional floral designer and a hobby woodworking woman. As a floral designer I make $12 an hour but when I give a bride her bridal bouquet and she sees the set up for her reception and her eyes open wide and she loves her flowers that is payment for me too and it FEELS GOOD. And when it comes to making things from wood and they turn out nicely especially after watching your videos and those of others than that FEELS GOOD too.
That was one hell of a good video! Taking what you said to heart makes me rethink about trying it at my age (72) I wanted to start a mill years ago and should of. I had people who wanted to partner with me and yada yada but they didn't want to do the work with me. I had a very successful mechanics business that I ran for over thirty years. I can't walk very good and only have one good arm now as the arthritis gets going through me and leaves me heaving with pain. Yet I want to work and think I could do it still cause of working in the woods as a young man in the late fifties (year) an sixties. Then I went in the service (drafted) and spent three very hard years there getting shot, hurt bad, and in general lucky to be alive. I would start a job and always find myself working on the stuff we had and wind up being their mechanic and so did it for a living (very successful) but two divorce's got most of what I earned so was I Really successful?? One thing I did well at was just isolating from people for years. I just worked and that was how I got through stress was working by myself and getting it done fast and good and never ever not giving it all I had! I am now re evaluating why I wanted a mill and I think you are smart enough to see why... thank you for this video
Very well said!!!
Great video! Thank you!
The only way to make all that money 1 million...... In one year. Well the money never mattered to me that much. I absolutely love what I do. I was taught to love what I do and to do what i do to the best of my ability and not worry about money. Cuz when u supply the highest quality product around the money comes. Thanks for keeping it real. God bless u my brother. Let heaven rain on us all
Thank you. Very valuable information. Need more honest people like you.
lots of good information here. I will be getting out of the Robotics industry in a few years when everything is paid off, including the new sawmill I will be getting next year, then I will open a sawmill/wood shop business. Just need to make enough money to get by. thanks for all the useful info
Thanks for the video and the information brother. I have been looking at setting up a saw mill to support all of the wood needed for my apiary and to provide off season income. Lots to learn, but great insight.
Question: What do you charge for cutting if someone else supplies the logs? And, if cutting your own logs, have you determined what size product is most profitable?
thanks for the vid your a good man.I been operating my own mill for prob. three years its a tough gig dealing with the public people want to pay as little as possible I do all my own maintenance and blade sharpening and its still not enough to survive on I also do mechanical work ,metal fab.and small renos to try to make ends meet good luck!!!
I never pay for a single log. I have a friend with over 400 acres of hardwood timber oaks, walnut, ash, hickory, and so on I have got 110 logs for free from him with about 20 of those being quality walnut logs. And I also get free logs from tree companies just ask they always would rather give them away the pay to dispose of them. Quality tends to vary but at the end of the day they are still nice enough to do something with. They know what I want and will sometime stock logs at their yard and deliver then to me when they get a load. Never pay for logs build relationships.
shut up richard
I think you nailed it. Life is all about relationships. I know a guy who does the same thing with a sawyer in my area. He wants to put the trees on the ground and move on. If you're willing to do the clean up of the logs, they're free. Good stuff.
I have had my WoodMizer for 20 years or so and have used it part time. I am a small time contractor so I find the wood useful for projects, such as poplar siding and trim, white pine posts and beams, hardwood slabs for furniture, etc. I love wood and I love the fact that I can create a home from trees to furniture. There is a lot of satisfaction in that. I have never found the market for my boards, so don't think there is a ready market for what you are producing. On the other hand, I have never bought logs. You really need a bobcat and a trailer to go out and retrieve logs and move them around
Thoroughly enjoyed your video, thanks
This is really great detail thank you!
I REALLY ENJOYED THESE VIDEO - I MORE THAN DETERMINED TO VENTURE INTO MY SAW MILLING PROJECT NOT FAR FROM NOW!
So you mostly sell lumber? Ive found theres definitely more room for profit, but you have to have the right market and supply
Great videos. Enjoy watching.
Admirable. Very likable.
Very informative. People never see the work that goes into a business. You have to find buyers too. Not easy if you are not willing to undercut your competition. Can you mill your logs cheaper than the big log mills? Not a prayer. Which means you have to figure out what you're going to use them for? Things to consider are: 1) What is my start-up cost 2) What am I making per hour of labor (in most instances you will be shocked how little you are making per hour) 3) Who is my market and more importantly why me (people have all kinds of choices when it comes to lumber, and you better have a good enough reason for them to come to you versus home depot where everything is backed by a return policy 4) As you say what is the cost of the logs (if you have to buy them) 5) Am I willing to work very hard my first year or two and not make very much while I am learning. Even someone like me who has a lot of trees on his property that he can cut up is leery about this. My uncle did it and when he finished he said: "not worth it". So I am never one to piss in anyone's pool but starting your own business is dam hard anywhere you are. If there isn't much barrier to entry the competition is fierce. That is all I will say.
I love sawmilling and cutting trees. Where most small sawmill operators are disappointed in the profits they make is the lack of an ability to market there product at a higher enough volume and a higher enough price to make money after the lumber is cut. Sawmilling in Texas.
Awesome video. Very informative. Like your key points.
Nicely explained ! Thank you !!!
Awesome video keep up the great work!
great video!! i need a mill because i love my job as an arborist plan on building my own log home in about a decade from now. hard work at the end of the day is rewarding if you enjoy what you do.
as well we get rid of so many big oak ,ash, maple and butternut logs to a gentleman becouse its convenient for dumping and my boss doesnt care for the wood at the end of the day. and buddy benifits by selling full logs(of higher value) and processes everything else into fire wood.
Awesome info! Thanks!!!
I did my first paying portable sawmill job last week. My LT40 made $350 in about seven hours. And every penny went to do maintenance on my truck and mill. So how's that for getting rich quick?
You are charging half of what you should if you worked all that time. I understand more than you know about the money going to fixing things. Keep it up, and it will pan out! Blessings to you, thanks!
Southern Indiana Sawmill LLC I charged 35¢ per board foot and I had nice straight logs so production was high, just over 1,000 BF. Yes, I might try charging by the hour, I'd make a bit more.
@@DarrelCarson you will get faster as time goes on, but I highly recommend by the hour. It is more of a CYA policy, because there are good days and bad, but you are skilled labor and need to charge accordingly
Thanks for your well explained video sir.
Good basic info for someone getting started who wants to turn their saw into a part-time business
you're very informative. thank you
Thank you for the info sir.
Great information!
You helped me out with your video!
Very honest and straightforward information.
Running a business is like having a family. I have my business and it is helping other businesses. As you say the price of the resource determines the price of the end result. Once one knows the price of creating your product. Loving what you do and believing in it, makes some of the "soft costs" disappear.
great vid i learned alot. Tq.
love and enjoy what you do and anything is possible
Brother you have inspired me to work harder.
Thanks Buddy !!!
I'm not into woodworking as a business venture just a hobby but still loved the video. Keep up the good work.
Great information! I'm a retired hobbyist and restoring an old Wood-Mizer LT-40 HD that I bought at an auction. Don't need to feed the family, but wouldn't mind picking up a few bucks here and there. I would guess getting the logs and sawing are easier than selling the lumber. Hope you do a video sometime about selling your inventory of lumber. Thank you!
Steve Hasebroock very interesting , Steve I’m 72 and cut trees and logs no one wants and is upgradable. I keep two or three thousand board feet lying around drying learning about what I have missed out on for the past 50 years. Milling is the most enjoyable thing I’ve done in my life. Enjoy life love what you can do while you can share what you can.
Thanks! Sounds like you have found a good niche!
...very true.
About twenty years ago I tried selling lumber from my wood Mizer operation. It was a complete flop, the lumber quality was erratic with much of it being spoilage. I was not set up to do a retail business. You can be a Logger, a Sawyer, a retailer,or wholesaler. These are separate businesses and each one is different. Now I custom cut "your" logs only. "Your place or mine". I would make a smooth operation in one area before adding to it.
Best Ive heard in a long long time.
I agree with you 100 percent
Excellent video. 90% of businesses fail in the first five years because people either do not face the reality of what it takes to run a business or they take huge risks and fail both believing they can get "Rich" quick.
some good information .
This is great thank you
Good stuff. A video that goes into more depth on sourcing logs would be good as well as selling the final product. I think that's one that would be good as you can have all the wood milled in the world but if you don't have a way to move that final product you have nothing. Thanks man.
GREAT VIDEO GREAT ADVICE !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Amazing and really good info, and specialy if you love working with wood , its a dream !!
Very good sir. I appreciate it. We have just purchased several acres of wooded land. Mostly Oak. This may make a difference in the Net Profit we hope. Thank you.
Overall ... a good presentation.
A few things I would suggest ....
Invest in a band saw blade sharpener system (that can also adjust the set of the teeth) and weld bandsaw blades yourself as part of the system (expensive option, yes, but well worth it if you just buy your blades by the roll instead of ready-made). Also, by re-sharpening your blades (and possibly investing in carbide tipped blades, which ARE available, but much more expensive) you can increase your board feet of stock produced per blade tremendously.
Also ... invest in MORE THAN ONE METAL DETECTOR ... the battery operated wand kinds used in airport security work for this. More than one because ... if you misplace one, you don't want to just start cutting without checking first.
Plus ... get a truck and a trailer for yourself, and periodically stalk the road service workers that go around cutting back the trees for public safety ... they might even help you load up the logs and you'll get them for FREE.
Talk to local arborists and tree service professionals ... go around the neighboorhood after big storms ... people will want to GET RID of their logs without having to PAY for someone to come in and cut them up and cart them away ... Hell, they may even just pay you to take it away for them as well!
I had 7 huge pines last place i lived. $1800 per tree for removal was the quote. I just finished cutting a smaller tree that was threatening to come down possibly in the next storm. "Seriously" I'm old, and I can't warn you enough... these trees are seriously "HEAVY" so unless you have a loader / skidster etc. BEWARE Back Pain ain't no joking matter;
You are a rock star.
That's an excellent breakdown. Your honesty is refreshing.
Thx for sharing
great video, alot of good info
Really glad I found your channel, you speak truth AND you live right near me. Great videos and lessons. Thank you again for making these.
Great video!
Awesome, thanks!!!! You make a lot of sense and thats just what we need to see, whats possible! Again, thanks!!!! Side note, if we were boys then we are men at every step of the way, no matter what we do! Selling trees is strange for me to think of, almost sacs of religiousnesses! When i listen and learn , I see the remarkablenesses of long term foresting!!!! We are learning and growing!!!!
Thanks good advise
Right on!
Excellent. Luca
I like your video and thank you for the information. Please can share who dries your logs. Thanks.
I could only dream of working with wood as a profession. I'm in my mid 40's and have been in my current profession for 20. I don't see how I could realistically make such a drastic switch - but that doesn't mean I let go of my dream. I currently cut trees and split firewood on the side and have considering a basic mill. But I just don't have the extra time.
I found your video enlightening and honest. I run a free wood-bank on my off hours and would love to find a way to support my family while milling and splitting/selling firewood. I will be looking into this more and maybe someday the opportunity will be there.
Thanks for the Video. Sub'd.
I'm 40 and just switched from IT to mechanical insulation after 19 years in IT. With these trades you need to search for apprenticeships. I'm making as a first year apprentice only 2$ less an hour than I was after 8 years with my last company. In 4 years I'll be making 40k more a year than I was before. You fail at 100% of the things you don't attempt in your life.
Good evening from Greece sir.Grate video,very inlightning.Would you start a sawmill business based on olive tree logs?As you probably know they are very tricky to handle,but the wood is very beautifull (and expensive).Thank you.
You should make a marketing video. That is the hardest part of especially the hardwood business.
I am thinking about getting into sawing lumber. I have a small manual mill a wood mils 126 right now but I am thinking about getting a bigger mill. How do I price cutting a log for someone if I take the mill to them? I live in South georgia. Thanks