A business plan for lumber mill, if there is an existing structure and operation, should break-out any costs you anticipate for retrofitting, upgrade, or new equipment purchase or lease. The plan required for building a mill from scratch is a significantly more complicated undertaking, mainly because the cost involved is so much higher and the market need, delivery system, and staffing plans are all harder to anticipate accurately. For an existing business, however, you can set the stage for your capital request by demonstrating a past performance snapshot before asking for any funds. For this, collect your profit and loss statements and balance sheets for the past 2-3 years and use them to make a case for your business as it exists today. From there, cover these topics:
• What is the market need for wood products in this area?
• What is the target market for delivery?
• Where will you obtain the trees and what are the approximately costs (COGS) involved?
• What is the plant OpEx likely to run in a given week or month?
• What competing mills or providers are there in the state/region?
The business plan for a lumber mill should offer a competitive comparison talking about the largest mills you would be competing against. Do you know their suppliers, their off-takers, or their average yearly staffing levels or revenues? Much of this information can be determined with some careful market research. You also need to provide current stats on the state of the industry in general and the projected growth or contraction of revenues in this space over the next five years. Finally, a financial pro forma and marketing plan spanning at least five years will be required. Show the input assumptions and ensure that you're estimating a sustainable growth rate. MasterPlans has worked on major business plans for capital equipment-intensive operations like mills, refineries, and chemical plants. Call upon our expertise to help you get the funding you need faster—877-453-2011.
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