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Home Money Investing

How to start a timber yard business in Kenya

MYNIUSLINE by MYNIUSLINE
December 2, 2021
in Investing, Money
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How to start a timber yard business in Kenya

Photo showing some huge piles of wooden planks and fence posts, freshly sawn up in a sawmill and piled in the timber yard, ready to be sold to the general public.

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Procedure Taken to Start Timber Yard Business in Kenya  

It takes approximately 30 years for a tree to grow fully and roughly 10 minutes to bring it down depending on its size. If you are going to bring a tree down, please make it worthwhile. I am all for reduction of carbon footprints. Speaking as a tree enthusiast, we should not, in fact we should cease from cutting down trees. It’s a bad habit. Actually, its bad manners. On the other hand, it would be detrimental to have too many trees because we would not have space to construct roads, our beautiful homes and of course our cities. So cutting trees, when done in moderation can become a lucrative business that can easily nourish our souls, spirits and pockets. So just how can you get into the timber yard business without evoking anger, hatred from tree enthusiasts.

However, research shows that lack of wood is not really caused by low supply of timber, rather, adjustments in timber production industries. These adjustments cause shortages of timber and price fluctuations immediately they are developed and implemented. It means that the industry has a major impact on our economy and that demand for timber is quite high. Overtime, researchers’ efforts to find a replacement for timber to curb deforestation have deemed futile.  Replace every furniture in your house with something metallic or plastic and they will be either less durable or too bulky. That’s how much you need timber. By now, you’re imagining yourself in a dustcoat, loading and off-loading trucks with timber and counting bundles of notes. This is what you have to do.

Conduct Market Research  

It is crucial to start with market research for any business in the country. In these cases, the study helps to get information on competitors, prices and sources of timber. It also helps to get information on various on-demand qualities and varieties. Once you conclude the research, you will know whether the venture is viable within the desired location.

Put Down a Timber Yard Business plan.

 As simple as it may seem, you cannot do without a business plan. It aids in the preparations of various business stages. Details that should not be left out include; start-up cost, location strengths and weaknesses of the business. If you are not conversant with writing business plans, hire an expert to help you draft the plan.

Get an Ideal Timber Business Location

Will you be targeting the foot traffic or the people building houses around? It’s up to you. The target market significantly contributes to the site. Those selling roofing timber should have the venture in fast-growing residential areas. Wood is cumbersome; therefore, one should have the yard within accessible and busy roads to facilitate transportation. Setting up your business in an area where other timber yards exist is advantageous since it provides you with economies of clustering, instantly increasing your profit margin and reducing your marketing costs.  

Acquire Vital Permits

It would help if you visited county offices to get an annual renewable permit for the business. You are also required to have a letter from Kenya Forest Service. Forest Service permit allows a business owner to cut down and transport trees from one region to another.

Find a Reliable Timber Source

Quality is paramount while selling timber. You require to have information about popular tree varieties within the business locality. Once you are armed with such information, you can go ahead and look for the best source or supplier.

You can get cheaper timber from rural areas where you can cut down and transport to business premises. Cutting down trees gives one more revenue which comes from selling firewood, rejecting wood and sawdust.

Market Your Timber Business

A business must have clients to break even. For one to thrive in the timber business advertising your business is the priority. You can advertise using billboards, flyers and business cards. Additionally, maximize on social media tools such as Facebook, WhatsApp and Instagram. Social media has the potential to reach a wide number of people at minimal costs. There are at least 2.7 billion people on social media your customer is bound to be one of them.

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