Start Up Requirements For Sawmill Business In Nigeria
Sawmill Business In Nigeria
Despite the fact that iron and steel is widely used in the construction industry, the importance of Wood in our modern day to day life cannot be over emphasized.
Sawmill Business In Nigeria
On daily basis logging companies cut down Timber and other forest trees to be processed into wood Planks in Sawmills for use in furniture making, Toothpicks and building/road construction etc.
Sawmill business in Nigeria is capital intensive, but the demand for planks and other finished wood products has thus made it a very profitable business that has turned many investors into multimillionaires. (I’m sure you are familiar with the term “Timber magnet”)
In this article you would discover the requirements and learn how to start a profitable Sawmill business in Nigeria.
Basic Requirement for Sawmill business Startup
Below are the basic requirement you should put in place to start your own Sawmill business in Nigeria.
Find Suitable Location for Your Sawmill Business
To start, it is very important you look for a suitable location where you can establish your sawmill business.
The best location for setting up a Sawmill business in Nigeria is the Southern part of the country where you have lots of forest trees. Also, your Sawmill business should close to construction sites where Hardwood and Softwood are used for furniture and building construction purposes.
The startup capital requirement for Sawmill Business in Nigeria depends on the scale you want to start with.
The cost of setting up a small Sawmill Business in Nigeria is quite different from that of a large Sawmill.
For example: You can start a small Sawmill Business in Nigeria with about N2 – 10 million Naira, while a large sawmill business requires hundreds of millions of Naira as startup capital.
The amount stated above covers the cost of the Sawmill factory space, Business Registration with CAC, Government Permit/License, equipment/machineries, operational cost and Miscellaneous cost.
Sourcing for Wood
Sourcing the main raw material (Wood) for the Sawmill business is not a difficult thing.
If you are starting a large Sawmill business, all you need is register to become a government licensed logger in states like Ondo, Edo and Delta etc and then process the logs of Wood into planks of different sizes for sale.
For a small Sawmill setup, source your Planks from any large Sawmill close to you and then sell to Furniture makers and others who work with Wood in your area.
NOTE: The different Class of Wood
There are two main classes of Wood and they are hard wood and soft wood, below are examples of each class.
Mahogany, Walnut, Cherry, Beech, Mango, Ash, Maple, Oak, Rosewood and Teakwood
Hardwood is perfect for furnishing jobs due to its strength, mostly used in crafting beautiful furniture.
Cedar, Fir, Pine and Redwood
Softwood repellent qualities are what made it a popular wood for lining drawers,etc.
Below is the list of Equipment/Machinery needed for Sawmill Business Startup in Nigeria.
Circular and Band Mills
Standby Electricity Generator
Truck to convey log of woods from the forest.
To market your planks (processed wood) from your Sawmill business, you will need to create a serious public awareness by placing advertisements in print media, social media platforms and on Radio/TV. Through these mediums you could get individuals or group of companies as customers both in Nigeria and abroad.
Write a Business Plan
It’s said that “Failure to Plan is planning to fail”. So to succeed Sawmill business in Nigeria, you need the services of a business consultant who would write a bankable business plan for you.
Labor Requirement for a Sawmill business in Nigeria, involves employing skilled machine operators, driver, accountant/cashiers and night security guard to watch over your property.
It is very important that you have a means of transporting log of woods from the forest and also for supplying customers’ planks. So to solve the problem of transportation you will need to purchase trucks for your Sawmill Business.
I believe with the above startup requirements for Sawmill business in Nigeria and explanations you can now setup your own Sawmill business and make millions of Naira monthly as profit.