Is This The Best Way To Start A Firewood Business??
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- Опубликовано: 19 окт 2024
- Today I discuss my strategy for starting my business and how I avoided borrowing money while minimizing my risk of failure. It has worked for me and maybe this can give you confidence to start the process of making your own dream come true.
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Joe,
I’m Cindy’s husband Mark.I have been with a large landscape company for 21 years. The company is re positioning itself in this new market. Lots of changes have ,and are being made. Change is tough. However your advise is on point. Things happen for a reason. I’m taking your advise. Allow the circumstances dictate the move. Your example of the residential idea of fire wood turned into a commercial direction. Thanks again for your advise. This came at the perfect time. I’m worried that I may not have a job when all is re structured. Your talk today helped me tremendously!!! Thanks Mark
I'm feeling you Mark. Take action and keep all your options open. Just don't sit back and wait for your destiny. You can drive change in a positive way for you. I know it's scary and depressing but ACTION will be your best friend. Take ACTION Mark! Joe
Yep, please be kind to your current employers. They might be a supply of logs in the future or even some of them might come work for you! Be positive and serve customers!
While this just costs your time, keep getting educated. Learn all the wood type, learn about all the players in this field, go ask what the customers want. FYI, a domain name can cost 20 per year, try and be sure to get a .com address. Good Luck and Have Fun!
Once again some wise words from the most likeable influencer on RUclips! 😉😁👍
Wow, thank you!
"When I was at my real job all I could think about was firewood." So glad I'm not the only one!
We both must seek professional help Alex. The only know cure is to buy another chainsaw.
Great advice, Joe! I completely agree. I have paid cash for all of my equipment, truck and my college degree as well. Sometimes people look at me funny when I say pay cash for everything as if it were impossible. If you put your mind to it you can fund everything with cash!
Thanks for the comment OSM... Joe
Joe you are exactly right about your business strategy! I do and did the same thing with my business, debt kills more businesses than anything else! I totally agree, if you are in debt you are working FOR the bank. Great video!
Be the bank! Know your numbers. Run a p&l sheet right down to the amount of waste you let rot in a pile or gas you spill. Everything has value til it's gone. Don't run the numbers and find yourselves working for someone else. Be the bank and pay yourself off like you are a loan shark. Charge yourself 15-20% it's your money. Pay yourself first
Thanks Chris. I need to keep the house, keep gas in the tank, THEN keep the money in the bank to keep growing! I mooch off others for my Dr Pepper LOL. Joe
You are spot on Andy. I do keep track of my credits and debits but I am also guilty of not splitting hairs probably where they need split. A lot of that stuff is necessary but no FUN for me to do LOL. Joe
You may not be an expert Joe, but sharing your experiences with those of us that need a little direction will help avoid some mistakes and think outside the box! As you talked about your business itch for firewood, it reminded me of my late mother who had a cliche about starting something new..."you have to crawl before you can walk". Those words have stuck with me and with regard to financing a business, an investor once told me to "never invest more than you can afford to lose". That advice has been huge for me. Thanks for the informative video.
You got it Steve. Given that I'm 50+ with children in school I have a much smaller tolerance for risk but my risk wasn't losing everything more than simply not making any money. Firewood seems like a good industry for people to grow into their market and become self sufficient. I think too many people make the wrong assumptions of the firewood market and limit their profit potential. Joe
@@ohiowoodburner Your right Joe...kids in school limit what you can do, but remember you'll only experience it once while their young, so enjoy it while you can. We're empty nesters, I'm 66, retired from the Fed. gov't. I too dreaded the office politics but uncle Sam has been good to me. Now retired, I cut wood as a hobby and just advertise when I get a face cord or two worked up. A well know logger in my area advised me to process tree tops as firewood and sell the nice straight trunks to the sawmills. I seen this as another market and was able to recover some arborist fees, involving the take down of some large oaks hovering over my house roof. Between the sell of firewood and the saw logs, I recooped nearly all the arborist bill. My saw thanks also as it doesn't have to make as many cuts...LOL Thanks for the response.
I second everything you've said about starting a business. You are doing a great job getting your wisdom out there for others to hear and consider, perhaps a different voice than might be more traditional. I have an MBA and have worked in the high tech world for 25 years; your advice is more valuable than anything that I've experienced in this high velocity, super stressful business world that is mine. Keep up the good work Joe.
I appreciate that Tim. Thanks so much for your comments and watching the channel. Joe
Joe, absolutely correct! 12 yrs as sole individual Welding company, to a Mechanical Contracting, class A for another 31 years, dissolved the corporation in may of 2019. Owning every thing, owing nothing! Never in the 43 years did we borrow money! Its called being Frugal, ALSO I had as many as 40 employees at one Time. My Company was “Hottle and Myers Inc.”👍🏼🇱🇷
Never a borrower nor a lender be. Do not forget, stay out of debt! Joe
What a breath of fresh air this vid was Joe. Thank you for your take on the steps into the business scene. Keep it up, you have lots of backers. We are there for you Joe.
I appreciate that DL. Thanks for the comment and watching. Joe
Hi Joe, more good information as always. The challenges are many, but you're living your passion and it shows. I just bought a truckload of log length trees to process for my home use. You've inspired me to give the firewood business a shot. I'll sell the wood I don't use and see where things go. Thanks again for your inspiration!
That sounds like a great place to start and a great way to find your way. Good luck! Joe
Great advice Joe. Exactly what Dave Ramsey would advise. Good words.
Thanks Brian. Joe
We have been bootstrapping HomeAgain Firewood since 2020. The reality of situations has forced us to take some debt, but it’s low. Gonna crush it ASAP. But we had a startup dream of a contract to remove 6 decks of logs off of a property in order to close a real estate deal. As the deadline approached, we had to borrow the cash to hire a self-loader to bring the bulk to our wood yard. We sold about 70 cord from that project & it established us. I appreciated hearing your experience, Joe. One thing you said once, really made sense. “What’s the price of peace?” On that note, I gotta get to splitting. Deliveries to make! ✌️
Great story Alex. Thanks for sharing. Joe
6 decks? As in 6 loading deck with multiple truck load piles... That's a haul problem most start ups wouldn't touch. Must have been a big property. Most farms only have 1 deck for load out. That's also select cut vs clear... Either way hope it paid off. That's s bunch of effort for a start up job.
Having had formal business school training and operating as a business consultant - keep doing it your way! It appears to be working nicely and you are to be congratulated on your success to date.
Thanks so much Dexter. As long as I'm having fun I will keep it up. Joe
Joe
Another insightful video. I started off boot strapping my tree work and small firewood business. As my business grew, work load increased and I became more ambitious I ended up borrowing money to pay for equipment. Whilst my work load pays off the gear I am still going out to work to make the payments!
After watching your video today I did a quick financial consolidation in my head and have decided to consolidate a few things and sell some assets to reduce the amount of debt. I figure I can do without some of the gear I purchased but still stay in this line of work.
I don’t think I would have done that without watching you today. THANKS.
I will keep you updated.
Thanks for sharing. It seems adjusting is a constant in business. I hope you are doing well and growing. Joe
20+ years ago I worked for a small company that installed and serviced fire sprinkler systems, the owner would take out a loan for the trucks when a new one was needed and then pay the loan off in full when the first bill came, I guess to help build the businesses credit. Good advice, good video. Stay warm!
Business credit is a weird line. It's easier to add a business name on a credit card than to get a credit card for the business. I'm in trucking, and you would be shocked how many people only take cash capitals... Accounts that are standing with your money not an I.O.U. like comcheck, efs, or a money order. No checks no credit card. cash or cash capitals only.
Thanks Jared. I haven't gotten to the size where I would start considering things like that but I did open a Discover card which gives me a pretty sizable line of credit when needed. Joe
Joe dont be so hesitant to give advice. You are full of knowledge and all of your info is good solid info for someone looking to start up a small business. Glad you started the channel so we all could go along on the ride with you.
Thanks for the nice words Zeke. Joe
That is the video I needed! I am restarting my life in Missoula, MT and am starting a firewood business. I am starting with an axe and a cord of wood in my garage. I am doing monthly firewood subscription with delivery. Ranch fuel wood management.Thanks for the videos. You are my motivator to go split just a few more sticks before bed!
I like the idea of a subscription program Rob. Very innovative. If you can come up with some packaging, labels etc that will make you profit go up. Joe
thanks for being awesome Joe .. a little about me I'm a ISA certified Arborist , tree worker and TRAQ qualified lol but I like to prune , trim Etc and as a hobby I sell firewood . its a bit challenging because I live in the Bay area but I find my joy daily .. I have a few videos for entertainment for the family .. thanks again Joe from California
A hillbilly in the Bay? Do you find yourself out of place any? I can speak from experience!
@@ohiowoodburner oh boy , I drove a 1975 Chevrolet for about nine years. Prior to that was a 1965 and then between I had a diesel. To answer your question most often yes . I do feel out of place. I am a kind friendly easy-going talkative kind of person. people often say I have a good old fashion southern hospitality personality.
Dude amen. Bootstrapped 2 successful businesses here in Hawaii. I owe nobody. I also read and follow the "PROFIT FIRST" principals (amazing book) and I became a Dave Ramsey fanatic along the way.
First time viewer...I am in a very similiar position to where you were when you started. I have some videos on my channel of my home made set up. It works well, I'm on the fence about going full time. I know that I stopped enjoying my day job years ago, (being self employed makes it harder and easier at fhe same time) I'm not real sure which way I'm headed but my current business, I boot strapped 10 years ago, I think I will do nothing for a short time and then consider moving full time to fireood. Good video about the backend of starting a business.
Thanks for watching Mountain Man. My circumstances all seemed to put me where I am today. I love what I'm doing but to each their own. I followed the rule that it had to be fun. If I wasnt having any fun I could easily do that working for the Man.
Thanks for the great info. I’ve been selling firewood for a bit and from December 10 to January 14 I’ve sold 58 cords of wood and in that time I was gone to work for 14 days. I just had xtra wood from the past two years of buying a full load of wood cause I like doing it. So last week I bought another load of 60 cord of wood. Stared processing but what I really want to do is get a processor so I don’t have to touch the wood so many time. I do have a splitter and good saws. But the time we spend manipulating the wood is to much.
So I’m gonna give myself a bit of time I did contact a couple processor manufacturers and I know the price range but just not. Ready to make the big purchase.
Good luck with your decision. I really think you will know the right direction to go when you decide to make it. IMO it should be an easy choice between all your options. Joe
Joe, I have enjoyed your videos. The major thing comes from your "common sense" approach to being in business. As an owner of several businesses, I still learn a lot from your videos.
Super advice. U can use this advice for any business. I have a very successful job but craved more. I bought a concession trailer with a Christmas bonus I got and flipped it for double the money. I then built a 16 ft bbq trailer how I wanted it and bought a nice bbq pit to add to the collection. I got most of my stuff off of Fb marketplace for super deals. It is all paid for You are doing great things my friend
Sounds like you may be on the same path that I am Jason. Keep it going and see where it goes! Joe
Great advice! boot strap, and stay out of debt, especially in uncertain financial times. growing up, those that lived thru the great depression consistently gave me that same advice. Prov 22:7 The rich ruleth over the poor, and
the borrower is servant to the lender.
Always enjoy your honest, from the heart, common sense approach. Glad to see you growing. Seems it was just yesterday you were celebrating 3,000 subs. Going back to a Dilbert life is a non-starter!
I'm hearing you MUMC. It has been a lot of fun. Joe
To aid in decision making, I didn't hear anything about a business plan. I am glad you tippy-toed into your passion. In order to even see if your idea is worth pursuing, one MUST have a business plan that spells everything out from acquiring product to marketing and expense sheets and research. One may find, after due diligence, it is too much work and expense or they don't have a market in their area for the product. Banks love business plans and when one presents a formal business plan, they take you serious.
A business plan is NOT a must. I am in year 7 and did not start with one.
joe you hit the nail on the head when you said you having to much "fun" doing this, that's what its all about is having fun while your making money. love the videos!
Thanks Jacki. Fun is rule #1. If this isn't fun I wouldn't do it. Joe
I have a "formal" business education and your simple advice is good or better than anything you learn getting the degree. Dont cut yourself short, building a profitable business is a great achievement. I enjoy the channel, I recently bought a property that came with a hardy h25 that heats 2 shop buildings and a tenant occupied house, I underestimated the amount of work to keep that thing fed. Im trying to get more education on firewood so I can be better prepared next year.
Thanks for the kind words Christian. Funny thing about the Hardy is the concept of "free heat." You are trading your time and effort to keep $$ in your pocket. I learned that quick but I wouldn't have it any other way! Joe
Great advice. I agree with staying out of debt. I’m working hard to pay off school loans and our mortgage, and then we will be debt free. Thanks for sharing your experience.
Thanks for the comment PCL. Joe
So far the only time I have borrowed money was when my truck was totaled.
Insurance paid for the replacement but I was shot by a few grand so my parents helped me with the rest.
The rest of what I am doing has all been as I go and will be like this as I go..
Great advice Joe..
Thanks Dan. You next purchase shall be a Super Splitter! Joe
@@ohiowoodburner : dump trailer than a bigger splitter.. That is my goals when I will hit both who knows but its a start..
Joe, in my most humble opinion, you are doing it right. Start small, learn as you grow and incorporate the goods of processes/practices that work and discard the others. No debt = freedom. Love to see your happiness and success. I am constantly wondering what Wednesday and Sunday have in store for your next adventure.
YES!
Thanks so much for the kind words Tom. I often wonder if I will ever run out of ideas for future vids but I think the foundation of the channel is simply a day in the life of a firewood delivery service. I just show what I'm doing and sharing my successes and setbacks. Thank god I have high self esteem! LOL. Joe
Yes you have experience. Thank you for talking about starting your business. I'm 32 and starting my 1st business.
Best of luck!
You bet, bootstrapping is the way to go, start small and work your way up, great vid Joe
Thanks Sam
Totally agree joe. If you haven’t got the money in your pocket for something that means you can’t afford it.🙏👍🇮🇪🇮🇪
Yes sir!
I'm hearing you Rob. Joe
Wow that is awesome Joe! Glad to hear you didn't finance that tractor 🤘
. Have you ever heard of Dave Ramsey?. you did it the right way bootstrapping it. A lot of business fail in the first 5yrs and I think alot of it is because of cash flow. Like you said you don't have those payments to worry about if it didn't take off. You did the right thing by bootstrapping. Every successful business owner I have come across, they worked their day job till they could get their business supporting them full time.
Thanks so much MH. It is great to have you on the channel and I always appreciate your comments. Joe
I'm doing the same thing as well. Though I did have to finance my truck and tractor. They were the last things financed and the tractor is paid off and the truck is nearly paid off. I dont mind buying new equipment because they can be sold and turned back in to cash. Maybe not what I paid for them, but hopefully pretty close. Your bobcat should hold its value very well along with all of your other equipment. I'd like a Bobcat too but maybe I'd just settle for a hat at the moment!
The hat is very nice. lol Joe
Good way of doing it. You owe no one and all you purchase are assets and inventory. Good job. Your money is now in equipment that still can be sold to replace that bank account. Worse case scenario. Stay confident you're doing pretty good in my eyes. Even in the worse of times like you said you can use that wood and save money on that end. Congratulations
Reinvesting the profit in your business is the purist definition of how capitalism works in a country where we have the freedom to take risk and reap the rewards of our diligent effort. Faithfulness to do the daily things that have needed to be done have brought you to today. Congratulations. I look forward to your next video.
YES!!!!
Good sound advice. A bit of rambling but some good advice. I have done a very similar thing the same way that you have. If everything comes apart, I'm still gonna be ok. Thank you for sharing.
Lord I was born a rambling man. Thanks LN. Joe
Good talk, Joe. As a sole proprietor of my own small business, being debt free has been the most important factor for success and freedom. Debt means you are a slave, working for the bank or entity that loaned you the money instead of working for yourself. I wake up every morning and say "What do I want to do today?" Setting my own agenda is what makes me happiest. I realize this is just my own personal preference and perspective but bottom line for the little guy is, debt sucks.
There are many ways to approach finance, especially with the artificially low interest rates. And I'm not saying my way or your way works for everybody. But again, debt sucks. Being a debt slave sucks. I work for myself to be free!
Great advice. Unless it is something large like a house purchase, I prefer to save and pay cash. A lot of times I end up making better decisions if I wait anyhow. For a business especially it is important to start small. Had a friend of a friend recently take out a business loan to open up a restaurant. The guy knew nothing about the industry but decided that because there was no good BBQ in the area that it was a million dollar idea. Well a year later he figured out he took a couple of costly wrong turns.
That is bad to hear about him. A friend of mine said the easiest way to lose money is to open a restaurant! Joe
i started with my dads log splitter chainsaw and pick up truck. he never really used em and I always did the family firewood. i figured i might as well start selling some. now i am a fulltime logger and dont work for anyone anymore. i hate working for other people. And to be honest it has taken almost 20 months to actually start making real money but the motivation was there because like I said I really prefer working for myself
Joe, love your channel and how you approach the firewood business and life in general.
I was born in Conneaut, (A few years before you), my mom is from Youngstown BTW. Now that we've established that, I have question about the viability of the firewood business.
How many cords are you selling a year? What's the cost per cord? Profit???
I know you probably won't disclose how much you make, and I totally understand that, but I'm just not seeing how the numbers come together. Maybe I missed something.
Oh, and check out a wireless microphone setup, it would cut down on wind noise.
Thanks again for all you do.
It is great to know you are from NEO Jeff. It is a great part of the world. Without splitting hairs I have about $120 in a cord of wood and I average about $550 per cord once it is all sold. I rarely sell 1 cord at a time. I specialize in smaller qty's for delivery, bundles etc. I am ramping up for 200 cord this year.
@@ohiowoodburner THANKS for sharing that info.
Thanks for the video and advice. Well said; especially regarding the market and being fluid to the demand. I've found thinking outside the box and "testing" markets/customer demographics pays off, as long as your not locked into a specific idea or product. Congrats on the new tractor! I also like what you said about how you measure success....money isn't the only factor.👍😊 Take care!
Thanks Brady. I really think the biggest attribute we all can have is being able to adjust and course correct. Joe
Really liked the Jeremiah Johnson reference. Unfortunately there are probably several generations that won’t get it. Keep up the great work!
LOL Probably correct... There are prob those that don't know who the Professor is too. We are getting old Kent. Joe
Terrific vid, Joe! 👍 You should pin this vid onto all future vids….great advice, and some history of how OWB came to be.
Hopefully you catch this. You have mentioned you took a sabbatical to take care of your dad. Were you a teacher/professor? I lost my dad to cancer in 2006. Lost my mom to cancer a few months ago. I'm a special education teacher in Rochester, MN. I own land in buffalo county, live about an hour away. Want to start a side business cutting wood. Have friends that have splitters and stihls, as I just grabbed the 170 and 291. Can you give me any advice? Thank you if you ever reach out.
I was once an adjunct professor but had a corporate hack position. Nothing special. Advice? Get a website. Focus on sales, not production. Let sales dictate your production. Joe
You have a great outlook. I find succesful folks always do, it's a tool you need in the bag. The biggest advantage it gives you is the freedom to be there for your Dad.
What I enjoy most is the freedom. Thanks Mike
Good advice small amounts I pay cash.Big tickets items I least purchase smallup front investments known pay off on back side 100% tax right off and if things go south can walk away with no bad credit history.
Awesome advice as always.
What’s your summers look like? Minus your restaurants do you stay busy with
Home deliveries for summer camp fires?
That will be an unknown this summer. We had a big summer last bc of COVID. Not sure what is in store for us. Joe
Good info Joe I always try to pay for everything as I go. That said I did finance my tractor though because I got 0% interest. I figured let my money make money while making the payments. Thanks again take care brother.
Nothing is ever 0%.What you do when you finance at "0%" is you lose some of your bargaining power from MSRP on the piece of equipment.You will never get the same deal at "0%"that you will get on a straight up cash purchase.Example,I roll into BOBCAT looking for 0% option,the price is 20,000.00 on a tractor.I may get the deal for 18000.00 at 0% financed over 4 years.Cash price,16,500.00.Theres a carrying cost for the lien holder on that equipment,in this case 1500.00 over 4 yrs paid by you.So,you did better than paying higher interest by far over 4 yrs{example}but not as good as cash upfront.No disrespect intended,just an FYI.NOTHING is ever free,They can work magic in dealerships to get you into the seat.
@@moultonditcher6187
Thanks but in my situation I’m pretty sure I got the best deal. We negotiated a price I was happy with before the financing even came up. I was planning to pay cash but then decided to go with the 0% interest.
Thanks for sharing your experience and what worked for you. This lesson you shared will help me when I am ready to make that step. Thanks!
Glad it was helpful Tom. IMO it is time for you to get it going! Joe
@@ohiowoodburner You hit that nail on the head sir!
3 years ago I dropped 30 + pines and cut them into 16 rounds to eventually split and sell for campfires and outdoor fire pits. I had a hydraulic log splitter for my tractor and it took forever and a day to split 1 face cord. My buddy has a kinetic splitter and I knocked out approximately 15 face cords in 3 days. Of course I had 2 chainsaws but knew I couldn’t be productive using my old hydraulic splitter so I took the profits from the pine I sold and invested that plus a little from my savings account and now waiting on my Super Split model J. In the meantime, I’m gathering felled trees from my woods and stacking while waiting for the arrival of my splitter. When i clear out my woods with hardwoods, my buddy with the kinetic splitter has a guy that drops wood for a 100 bucks a load which which will yield around 8 to 10 face cords which will be around a 800 profit.
This will not be a full time business endeavor but rather a supplement to my pension.
It’s hard work but it’s possible to make it easier with the right equipment.
That’s my busy model and may not work for everyone.
Sounds like a nice plan to me. You are going to LOVE the Super Splitter. You will never use your hydro again. Joe
@@ohiowoodburner lol! I sold it last year. Starting my collection of logs and have a real good supply ready to split.
Joe, you are hands down the most congenial person I’ve had interactions with on RUclips. It shows you care because you take the time to reply!
Being in Michigan in the Ann Arbor area, I’m not too far from you and would like the opportunity to meet you in person one day. I’m sure you get requests from viewers who would like a meet and greet so I’m not sure of how you’d feel about that.
Thanks a million
Randy
Joe, you did it right. I will say that two things come to mind. It is very important to set up the company to limit liability, so before you get to the point of hiring employees, transition to an LLC before that step if you have not already done it. And one step everyone should do from the minute they go full time if not sooner is get a good CPA to set up your accounting and tax records. I know it seems expensive, but so many get in trouble with the IRS and that is no way to start off. And in later years you will start getting advice from your tax advisor. Mention what you are wanting to do in advance and you can often get tax write offs to pay for the equipment you want that can be from a quarter to a half of the expense if you do it the right way. My second year, the tax guy roughed out my numbers and said "recent tax changes will save you a bunch if you buy that stuff before the end of the year." So I made the purchase earlier than I planned but it saved me so much in taxes that it was easy. Not saying cheat on taxes, but I am saying use the tax laws to your best advantage and for they you need a specialist. The LLC is so that if something does happen, you are not on the hook personally. It is cheap insurance and worth every penny. Better to lose the company and walk away then to lose the company and still be on the hook personally for something that garnishes your wages for the rest of your life or costs you your home and hearth. This will also get you in the habit of splitting your business money from your personal money. Very important to not commingle the funds. Yes, use your bootstrap but let it be officially an investment in the company. Yes, reinvest and only take out the amount you need until it gets going, but keep books on all of that so that when the day comes that the company can reimburse you for the investment funds, you are not double taxed upon that money! No reason to pay taxes on money that you have already paid taxes on and do not owe taxes again. Long winded but a few things I see too many avoid and get messed up over. Good luck to all who take the leap. America is a land of small businessmen. Just do it smartly and by the book.
Thanks for the nice, helpful post Mark. I am an LLC. In Ohio you can use other determiners for a limited liability corp. I chose Ltd because it sounded classier LOL. I have an accountant and he played a big role with me even getting started. I did a vid on it in the summer. Here is the link . ruclips.net/video/d7g8W72Dc9w/видео.html
Joe, The Bobcat Tractor looks good in your location. You made a good choice and I wish you much success with this addition. I think your next purchase should be a grapple attachment to more efficiently relocate those logs.
Thanks Ed. I think a grapple is on the list but I want to see what's out there first. Joe
Great advice people need to think what happens if you fail or worse get hurt and you have big loans hanging over your head.
Very true Greg. Joe
Well said Joe! I’m teaching my kids now to establish some good credit on some small purchases first but to try to pay cash for everything they can. Then the choices they make as they grow are controlled by what they want to do. Not what they have to do! Thanks for sharing!
Thanks for the post Todd and thanks for supporting the channel. Joe
G'day Joe, well spoken you seem to have all the boxes ticked moving along nicely wood is gold. it looks cold there it was 105 in the shade here today total fire ban if you light a fire outside you go to jail . Stay safe 👍🇦🇺.
Cold as an icebox here today! But I would rather deal with this than 105 lol Joe
Sound business advice here! Now, I just need to dream up a catchy firewood business name for all the timber laying/standing on our place here in the north TN hills. Tim @ Cliffside Acres
Contact Melissa for help with your name, logo etc. Here link is in the description. Very reasonable rates and there have been a number of subscribers who have already used her. Joe
Good advice for new comers! I unfortunately had to take out a few loans in the beginning, as we ran into a few emergencies where I had to spend our business money.. and took out loans to keep up on equipment costs and to get me into a reliable truck. Just getting out of debt this spring! So happy to have them payments end soon here 👍
Thanks for sharing Armands. I really do think despite all the cool machines etc in firewood the most important piece of equipment is the truck. When it breaks EVERYTHING comes to a halt. Joe
Hey Joe,
I really enjoyed the video and the advice. I agree that bootstrapping is the way to go for starting a business. It’s great that you were able to use your profits to buy that tractor! I hope that you get a lot of use out of it!
Tom
Thanks Tom. I am still getting to know it and how to work it effectively. But it sure is a HUGE help. Joe
4 someone who don't no what he is doing Joe u are doing well u have don't better than most people your business is doing great u should pat yourself on your back u are keeping a roof over your family's head I no nothing about business but u are doing well u keep doing what u are doing and don't worry about what other people say keep up the good work Joe u till next time
Thanks Toni. That was very nice of you to say. Joe
Thanks Joe, you always have good advice enjoy watching your videos. Regards Pete from New Zealand.
Glad to hear from you Pete. You are now the official OWB Kiwi! Stay in touch! Joe
Thanks for the video. Just starting out myself there is some great advice here. Hope you have a great day Joe!
Thanks FatF. Hammer down! Joe
Thanks Joe
Very wise advice, experience is worth it's wieght in gold. Be blessed and stay safe.
Same to you!
Yes, debt free is the smartest way to go. You are doing a great job with the channel and your business.
Yes! Thank you Joel.
Great advice. Try to exhaust all of your options before going to take out a big loan. Taking a step back every now and then to reevaluate everything and then going forward from there is becoming a lost art.
Well said John! Joe
A cup of hot coffee, and a perfect video! Joe Thank You👍
Glad you enjoyed it Dave! Joe
Good common sense. Totally agree.
Thanks Tom
Great advice, no need to borrow money just because one’s able to. All the best, Jeff
The banks are rich enough. LOL.
One of the best things you can do with a business is to take 10% of the profits to put into an emergency fund so you have a bit of padding in case something fails on you. Truck broken? Wood processor needs new blades? Need new tires on the trailer? That is what the emergency fund is for.
YES!
Or if I run out of Dr Pepper! Joe
Great advice joe, did you start off buying semi loads of logs? Or how did you get your wood?
When I started OWB I purchased wood from the loggers. Before that I would take my truck to the farmers' fields, woods etc. Joe
I like your attitude and style.
Direct but humble
Thanks buddy. I'm glad to have you here on the channel. Joe
Paying cash for everything is excellent advise. I often think wow I'm doing pretty good, just imagine if I didn't have all these payments...
I suppose there are some bean counters out there that would disagree but for me this seemed like the right thing to do. Joe
You brought up some great points me and my daughter started sell firewood last year we had a great first year we are in north east Ohio we both have regular jobs it’s a side business for now does your firewood business pay your household expenses
My wife still works but after a slow start we would be able to make it with just OWB...but we aren't going to do that just yet. Joe
Awesome video Joe! You might want to consider numbering your videos. Keep up the good work.
Very good advice, for most. That said if you have a bigger business idea, you need to focus on your market research for you to take debt on. Once you do that, talk to your banker your accountant and your attorney and they will pretty much confirm with her taking that risk to bring you the reward you are looking for.
I agree Jim. I think in your evolution there may come a time when borrowing to scale makes sense. that is probably a better example of the businesses that appear on Shark Tank than what I was talking about in the vid. Joe
I watch a good many of your videos, this is one of the best ones yet.. thanks for the videos keep it up...
Great to hear Scott. Thanks for the nice comment. Joe
Well said Joe you again make perfect sense to me anyhow
Glad to hear Harry. I hope you are well. Joe
Hi Joe. Great Live Stream with Dan, Friday night. You looked like you were in your element. Keep up the great work👍
Thanks Al. I hope you have been doing well. It's COLD outside today. Not getting much accomplished. I remember you said you are in your 70's but where do you live? Joe
@@ohiowoodburner Hi Joe. I turned 70 this past November. I live in Massachusetts. Been cutting and splitting firewood since 1974. I’ve lost a few steps since my 20’s, but it keeps me in shape.
Thanks for another great video Joe! I agree wholeheartedly with the bootstrapping idea! Have a great day, and may God bless...
Thanks for watching Donald! Joe
Great vid Joe; my dad always had the same advice for me growing up,
Thanks for watching buddy! Joe
I needed to hear this. I want to buy a used skid steer thinking about financing it even though I could pay cash but My thoughts are it would push me every month to exceed the payment.
There prob isn't a right answer but there is always a financial and emotional component to these major purchases. Joe
Thanks for your videos..
Give you credit. I can’t deal with people anymore. Always trying to nickel and dime. Some don’t realize or care what involved.
At least for me Brian it is one of the positives of this business. I have met a lot of nice people on RUclips and delivering them firewood. Joe
@@ohiowoodburner keep it up I’m not one for social media or even commenting I do enjoy your channel. Take care
Joe my question is how big do you want to get? The tractor should add to production with growth comes change. Maybe separate Firewood business from Delivery business if you get to big to do it all alone
That is a question on my mind David but I don't know the answer yet. I do know I need to grow more to get my cash flow at a higher level to better satisfy our family needs but I really don't think I would want to have a huge operation with multiple employees etc. I simply don't know the answer to that yet but I do believe I am honest enough to myself that I will know it when I experience it. Joe
I too started by just having a outdoor burner but I don't really sell wood not that I don't but I drop trees
I have cut down my fair share in the past Bill but my saws never leave the yard anymore. It is so much nicer having the logs brought to me! Joe
I just like listening to you talk
Thanks... Now if I could get my daughters to say the same thing! Joe
@@ohiowoodburner one day they will understand sir!
Joe
Well said, self investment.
Best of luck!
Feel the rush
Trust me I felt it with the tractor! LOL Joe
Using your own money is a low risk strategy however it is also a modest growth strategy.
Modest growth can be very good because it gives you the chance to learn as you go.
If you buy the biggest shiniest gear you have the potential to make lots of money but you have to keep the equipment busy if you make a mistake it can be expensive.
However you do have a robust business in that if conditions change (such as covid) you don't have payments to make that can get very challenging if there is a slowdown.
What you want from the business and how you define success is a very personal thing. After all being rich wont make people cry at your funeral.
Eventually this raises the interesting issue can your kids do a better job of spending your money than you can?
Very nice insight Don. You sound like you have experienced a lot in life and I'm glad you are sharing with me and the others. BTW I am spending my daughters' inheritance as we speak! Joe
Great info ! Thanks 🪵🪓🔥👍🤠👏🇺🇸
Any time!
Sound advice brother keep up the good work
Thanks Matt. It is great to see you on the channel. Joe
Most people like myself have worked for the man and a guaranteed check. It takes big balls to finally just do it
I know exactly what you are saying Jason. At least for me if OWB turned out to be a dud I would have simply gone back to a job in my old career. I'm not sure where that would have been or if it would have been better or worse than what I left but so far this has been a blast. Joe
I love what your doing if granted an opportunity I would love to work for you
I think for the most part you are right on. However, what was that $20K+ earning at the bank as compared to the added earnings from the business. Also, interest rates are very low right now so small business loans can be very profitable but you need to be very cautious about that.
Very valid assessment and question Rich. At least for me the cushion I need in my bank account would be for purchasing logs. I am relatively comfortable that I could overcome a loss of a truck, which to me is the biggest business risk I carry...my health of course notwithstanding. I am pretty good a keeping my $$ in the bank so buying the tractor was possible without leaving me vulnerable. Joe
Never wince when avoiding debt. Debt kills many new businesses.
If it's not hard .....it's not worth doing.
Great video, still warm friend.
ruclips.net/video/zyiQl2mDHsE/видео.html
This scene gets me every time. Joe
Great video again Joe. The paid off mortgage has taken the place of a Mercedes Benz as the status symbol for us. You bought yourself freedom and can run with it.
Dave Ramsey agrees!!
@@jefftaussig6602 my other mentor besides Joe.
My guilty, selfish pleasure is a Maserati. Some day that will be my status symbol! Joe