Business Ideas | Small Business Ideas: Starting a Tree Farming Business

Thursday, December 5, 2013

Starting a Tree Farming Business | Tree Plantation Business

Starting a tree farm business will help in conserving and reviving the forest. This is the best business among all the green businesses available right away. In order to be successful, you need to plan and read about this venture.
You need to do some tasks and buy equipment to help you in making the tree farm business grow.

Tree farms or known as tree nurseries are forests that are privately owned and managed for the production of timber. Tree farmers are called to those people who managed these plantations. Most tree farms are certified by an organization called American Tree Farm System. Tree farms are usually established because forests are little by little being taken down and the effort of reforestation is not sustainable enough. A tree farm owner manages this certain piece of land for wood, wildlife and recreation. If you are a type of person who have the heart for conserving the environment, then starting a tree farm business could be a good business venture for you.

Planning to become a tree farmer is not that simple as you are not stopped with planting trees and seeing them grow. There are tasks at hand but don’t be discouraged as there are some tools that could help you with the job.

Preparing the site

Choosing a location for your tree farm involves keen observation of the area. Site preparation includes hiring a logger that can help you in clearing the location of your choice. Remember to practice good logging techniques involve leaving behind woody debris on the ground. Clearing the whole area can give you the perfect ground to start tree planting.

Planting of trees

As we all know planting is done by using shovel and other tools. Make sure that before you start planting you know the basic of doing so in order to become successful. Controlling of the growth of weeds is very important during the first few years of planting because they can compete with the growing seedling when it comes to nutrients.

Putting property lines

When it comes to tree farm business, it is important to have a complete measure of your property in order to anticipate the growth of trees. There are a lot of instruments that could help you in doing this task. A clinometer is a sample of the tool that can measure height, diameter and circumference of a tree. This is good when you want to map out the growth of the forest.

Getting the harvest

After all the hard work, this is where the profit comes in. Before doing this, you need to have equipments that will do the job. Chainsaws, wedges, axes, logging tapes and a lot more are the tools when it comes to harvesting. It is important to keep track of everything that you do for future reference.

Taking Precautions

Your tree farm business should follow the guidelines imposed by forestry office when it comes to fire safety and protection. This way you are not prone to start a huge disaster.

Investing on Equipment

The property that you have is considered as your huge investment. The equipment and tools that you need are also part of this investment. A reliable chainsaw and tractor are essential ones. The market got a good selection of these equipments. All you need to do is research and compare prices to get the best one.

References

Starting a Tree Farming Business | Tree Plantation Business

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1 comment:

Tree Plantation BusinessDecember 6, 2013 at 1:51 AM
Starting a Tree Farm, Starting a Tree Farming Business, Tree Plantation, Tree Plantation Business
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Easy Tips and Ideas to Start Business

Although anyone can start a business, many people fail because of a bad product or improper research. If you want to start your own business, you can improve your chances for success before you even begin. In order to make your business successful, start strong and make sure that your idea will hold out for the long haul.

Have a Good Product

Ensure that you plan to sell something useful. Although you may think that your product is important or special, that doesn't mean the general public will agree. Ask friends, family and strangers what they think of your product. If they don't seem that interested, ask them why. With their suggestions, you can either improve the product or scrap the idea completely. According to Brad Sugars of Entrepreneur magazine, most small businesses fail because they sold a product that didn't have an adequate market. This also applies to small businesses that provide a service. A lawn-care business might be useful for part of the year in a northern state, but it is in-demand year-round in the south. Consider whether people will actually want to use your service and get constructive advice from those not afraid to give their opinion.

Research Local Businesses

Research local companies before starting up your own business. This will not only give you an idea of the amount of competition you will have, but it will also help you price your product or service. If you're looking to start a wedding photography business, you may find during your research that the market is over-saturated in your area. If not over-saturated, you should contact each business and ask them for a price list. Alter your prices so you can stay competitive with the competition in town. Researching similar local businesses will also help you decide where to locate your business location. Try not to start up a store or office close to another business of your type. If your small business is located away from similar business types, this will cause locals to choose you over businesses that are farther away from where they live.

Get Professional Advice

You may know someone who has started their own successful business. Ask him for advice and listen to his stories of how he started his company. You may gain useful advice on the good and bad ways to start a business. Local entrepreneurs can also introduce you to local product providers or advertisers that you may not have met without their help. Accept any advice with open arms, especially if the advice is coming from someone successful in the area.

How to Calculate Business Start Up Costs

Starting a business in no easy endeavor. It takes a great deal of research, perseverance and hard work. While sweat equity will make your small business more successful, you will most likely need real capital to get the business started. Before you start raising capital and/or investing your own funds, the first thing you need to do is determine the total start-up costs.

Step 1

Determine your costs of sales. For most small businesses this means inventory, the cost of raw materials, manufacturing equipment, shipping, packaging, and warehousing. However, not all businesses sell products. In this case, the cost of sales is primarily the direct labor involved in making the sale. For example, to open a small shoe business entails purchasing enough inventory ($10,000) to stock the store.

Step 2

Determine professional fees. Planning your business structure, i.e., limited liability corporation or general partnership, means hiring an attorney. There may also be the need to pay an attorney for help with establishing trademarks, copyrights, and patents. In this scenario, that puts total professional fees at an estimated $20,000.

Step 3

Determine technology costs. Technology can greatly reduce the cost of labor for small business if used effectively. Most small businesses require computers, printers, cell phones, website development, Internet access, software applications, information security, data storage, and outsourced information technology (IT) consulting. If the cost of technology is $10,000 to start, add an additional $5,000 a year for maintenance (hint: maintenance is not included in start-up costs).

Step 4

Determine administrative costs. This varies with business types and may include items such as business insurance, office supplies, product packaging, parking, rent, express shipping, desks, chairs, fax machines, phones, or anything else necessary to operate the business daily. A good estimate for start-up administrative costs would be $5,000 for the first six months.

Step 5

Determine initial sales and marketing costs. Now that you have your product, you need to let folks know about it. Sales and marketing costs generally include marketing materials for presentations, printing stationery, business cards, advertising, trade show events, and public relations. These initial sales and marketing costs can add up to $3,000.

Step 6

Determine the wages and benefits needed to secure a staff. This includes employee salaries, benefits, workers compensation, and payroll taxes. Let's put the cost of wages and benefits estimated at $20,000 for the first three months of business.

Step 7

Add all costs associated with starting the business for a total. Be sure to only include business start-up costs that will be incurred in the first three to six months of operations. For this example, the calculation is: $10,000 + $20,000 + $10,000 + $5,000 + $3,000 + $20,000 = $68,000.

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