Firewood Business Plan (TimberTrail Firewood Supply)

Executive Summary

TimberTrail Firewood Supply produces, seasons, and delivers firewood for homes, restaurants, and campgrounds across Clark and Fayette Counties.

The business operates from a rural production yard in Winchester, Kentucky, where there is enough space for log storage, processing, and a four-month seasoning cycle. TimberTrail supplies mixed hardwood cords, kiln-dried wood, and bundled firewood for residential heating, wood-fired restaurants, and campgrounds across the region.

The company is fully owned and operated by Reed Callahan. Reed has years of forestry and equipment experience and strong sourcing ties with local tree service companies. This background gives the business a steady flow of raw logs, safe operating habits, and consistent production. Every load is cut to uniform 16-inch lengths, checked for moisture before bundling, and delivered within a scheduled two-hour delivery time.

Funding Requirements

TimberTrail Firewood Supply is seeking a $34,000 equipment loan from Farm Credit Mid-America at a fixed 8.8% rate for five years. Reed Callahan contributes $18,500 in owner capital.

Funding covers the firewood processor, splitter, chainsaws, delivery trailer, safety gear, yard improvements, seasoning racks, permits, insurance, early marketing, and the first 60 to 90 days of working capital. This setup gives the business what it needs to run stable production, maintain steady inventory, and deliver reliably throughout the year.

Mission and Vision

Mission: Our mission is to cut, season, and deliver dry, evenly sized firewood for residential heating, wood-fired cooking, camping, and commercial use.

Vision: To become the most trusted firewood supplier in Central Kentucky by providing consistent quality, clear communication, and year-round dependability.

Market Opportunity

According to the U.S. Energy Information Administration data shared by Biomass Magazine, about 1.684 million U.S. households used wood as their main heating source during the 2024–2025 winter season.

This shows that firewood demand remains steady across the country. Usage is higher in rural and semi-rural areas. Wood heating is more common in these locations.

Central Kentucky follows this same pattern.

• Many homes in Clark and Fayette Counties use fireplaces or wood stoves during colder months, creating steady residential heating demand.
• Commercial buyers, including restaurants with wood-fired ovens, campgrounds, outdoor venues, and small retailers, add year-round demand and support purchases beyond the winter season.

This supports TimberTrail’s focus on winter cord sales. It also supports summer bundle demand from campgrounds. Regular orders from restaurant customers add stability.

Target Customers

TimberTrail Firewood Supply serves four main customer groups:

These buyers want dry wood, uniform sizing, dependable delivery, and a vendor who operates year-round rather than seasonally. TimberTrail is built to serve that need through both bulk and bundled supplies.

Financial Outlook

In Year 1, the business earns $128,000 in revenue. It makes about $20,000 in EBITDA. Daily work becomes easier with time. Performance improves as systems settle. More customers return once operations run smoothly.

In Year 2, revenue increases to $174,000. EBITDA rises to around $35,730. Sales volume continues to grow at a steady pace.

In Year 3, revenue reaches $228,000. EBITDA increases to $54,090. Profit grows by selling more firewood. Costs remain mostly stable as output increases. Cost control improves as the business continues to expand.

Based on operating costs and gross margin, TimberTrail Firewood Supply reaches break-even at about $7,800 per month. This equals roughly 18 to 22 cords each month. It also equals about 520 to 650 bundled firewood units. The exact amount depends on the sales mix.

Winter heating demand usually goes beyond this level. Restaurant accounts and campground bundle sales support income during warmer months. This cost setup allows the business to cover fixed expenses early in the year and generate positive cash flow in Year 1, with stronger margins in Years 2 and 3.

Company Overview

TimberTrail Firewood Supply operates from a dedicated production yard in Winchester, Kentucky, where the full firewood cycle is handled on-site. The yard is organized for log storage, cutting, splitting, rotation, bundling, and safe loading, allowing the business to move wood through a predictable workflow. The layout supports both naturally seasoned hardwood and small-batch kiln drying completed through a local partner when needed.

Business Identity

TimberTrail is registered as a Kentucky Limited Liability Company. The company focuses on preparing mixed hardwood cords, kiln-dried hardwood for higher-heat uses, and bundled firewood for campgrounds and retail points. All work is completed at 1198 Briar Hollow Road, with equipment arranged to support steady throughput and low downtime.

Operating Model

Production follows a simple process built around a four-month seasoning rotation. Logs arrive from local tree service companies, move through cutting and splitting, and then enter their assigned seasoning rows. Every batch is checked for moisture, organized by rotation date, and prepared for bundling or delivery once it reaches the target dryness. A Hakki Pilke processor, TimberWolf splitter, and MightyBite bundler form the core of the workflow.

Customer Groups

The company supplies ready-to-burn hardwood in Clark and Fayette Counties. We serve homeowners who use fireplaces or wood stoves. We also serve rural families who heat with wood during winter.

Restaurants that cook with hardwood are another key group. Campgrounds that need bundled firewood for guests are included as well. Each group receives evenly cut firewood with low moisture levels, delivered on regular weekly routes.

Work Standards

Daily operations focus on safety, clean yard practices, and quality control. Equipment inspections and moisture checks are completed before each production cycle. Deliveries follow a clear routing schedule, and customer communication remains simple and direct. This approach helps the business operate steadily during winter demand spikes and campground volume in summer.

Owner Background

TimberTrail is a new venture built by Reed Callahan, whose experience in forestry work and equipment handling supports the company’s operating style. Reed has long-standing sourcing relationships with local tree service companies, giving the business a reliable supply of raw logs and a clear understanding of hardwood behavior during drying and processing.

Long-Term Direction

Over the next three years, the company plans to strengthen recurring winter demand, expand restaurant supply, secure campground partnerships, and maintain a year-round inventory through its seasoning rotation. The goal is to build a dependable operation that keeps wood quality consistent and delivery schedules predictable.

Product Offerings

TimberTrail Firewood Supply offers a focused range of firewood products customized for residential heating, commercial kitchens, and campground use, with an emphasis on consistent sizing, dryness, and reliable supply.

Core Product Lines

1. Mixed Hardwood Firewood

Firewood made from several hardwood types cut and seasoned together. It gives steady heat over a longer time and works well for daily home use.

2. Kiln-Dried Hardwood

Hardwood processed using high-temperature drying to remove excess internal moisture. Provides faster ignition, higher combustion efficiency, and cleaner indoor burning compared to air-seasoned wood.

3. Packaged Camfire Wood

Uniformly cut firewood prepared in small bundles for short-duration fires. Designed for occasional use where portability and quick setup matter, such as campsites and outdoor fire pits.

Auxiliary Services

In addition to standard firewood sales, TimberTrail Firewood Supply offers a set of practical add-on services designed to make ordering, delivery, and use easier for both residential and commercial customers.

• Local delivery

Firewood is delivered within a 20-mile radius. Pricing varies based on distance and load size.

• Stacking service

Firewood can be neatly stacked at the customer’s location instead of curb drop-off. This is useful for homeowners who want the wood ready to use.

• Winter emergency refill

Same-day or priority delivery during cold weather, when customers run out unexpectedly. A small surcharge applies.

• Restaurant long-split cuts

Firewood can be cut longer and split to suit wood-fired ovens and grills used by restaurants. Priced per cord.

• Scheduled repeat deliveries

Restaurants and campgrounds can set up weekly or monthly delivery schedules to avoid stock shortages.

• Seasonal bulk orders

Customers can place larger preseason orders for winter or camping season to lock in availability and reduce last-minute needs.

These additional services allow customers to choose the level of support they need while helping TimberTrail maintain steady demand and stronger customer relationships throughout the year.

Market Analysis

Global Market Overview

The firewood market continues to grow at a steady pace. According to MRFR analysis, the firewood market was valued at $41.46 billion in 2024. It is expected to reach $42.84 billion in 2025 and grow to about $59.38 billion by 2035. This means the market is growing at a steady rate of about 3.32% each year from 2025 to 2035.

These numbers show that firewood remains a stable fuel source for heating, cooking, and recreational use across many regions.

Local and Regional Market Snapshot

Clark County, Kentucky, has a population of 36,972 residents and more than 16,000 housing units, with a large share of these homes located in rural areas.

Many of the houses in this region were built before 1990, a period when fireplaces and wood-burning stoves were common. This housing profile supports continued use of wood for home heating and outdoor fires.

Clark County covers 252 square miles, most of which is rural land, creating steady demand for delivered firewood among households that prefer or rely on solid fuel during the winter months.

Median household income in the county is about $64,526, which supports recurring seasonal purchases for both heating and recreational use. Together, these local conditions create a reliable customer base across Clark County and nearby areas.

Market Trends

Recent buying patterns show clear changes in how firewood customers choose their suppliers.

• Homeowners now look for evenly cut firewood. It should stack easily and burn well in fireplaces and wood stoves.
• Restaurants that use wood-fired ovens prefer kiln-dried hardwood. It lights faster and creates less smoke during busy service hours.
• Campgrounds and RV parks depend more on bundled firewood. This makes sales easier and reduces handling work.
• Buyers pay more attention to moisture levels. This is especially true in winter, when wet wood is harder to burn.
• Customers also favor suppliers that offer set delivery windows. They prefer vendors who supply firewood year-round instead of only seasonally.

These trends support TimberTrail’s approach: Consistent cuts, moisture checks, bundling capacity, seasoning rows, and dependable delivery.

Target Market and Customer Segments

Firewood buyers in Clark and Fayette Counties fall into four main groups. These groups match the core of TimberTrail’s supply model and keep demand steady across all seasons.

1. Homeowners and Rural Households

Many rural households use firewood for basic heating needs. Some use it as their main heat source in winter. Others use it together with electric or propane systems. This helps them lower overall energy costs. These customers usually buy firewood by the cord. They want dry wood, even cuts, and delivery they can depend on.

2. Wood-Fired Restaurants

Lexington has barbecue spots, pizza kitchens, and other wood-cooking restaurants. These kitchens rely on wood for daily cooking. They need a steady and reliable supply of hardwood. The wood must have the right moisture level. Cuts must be consistent from load to load. Longer pieces and on-time delivery help kitchens avoid service delays.

3. Campgrounds and RV Parks

Campgrounds and RV parks buy bundled firewood from TimberTrail. This provides guests with a safe and straightforward option. Firewood is used for campfires, cooking, and evening fires. Demand rises during spring, summer, and fall seasons. Visitor traffic is highest during these months. These customers prefer wrapped firewood bundles. They want bundles that store easily and handle safely. The bundles must meet campground safety rules.

4. Convenience Stores and Hardware Shops

Local convenience stores and hardware shops sell bundled firewood. They sell it mainly for short-term customer needs. Typical buyers include travelers and weekend users. Some homeowners also buy small amounts at a time. Orders follow clear seasonal buying patterns. Demand stays steady during the winter months. Short spikes happen during holidays and summer travel periods. These buyers want consistent bundle sizes. They also expect reliable and regular restocking.

Competitor Analysis

The firewood market in Clark and Fayette Counties is served by a mix of small seasonal operators, medium regional suppliers, and a few retail outlets that sell bundled wood. Most competitors work with limited equipment, small yards, and inconsistent inventory rotation.

Direct Competitors

Indirect Competitors

1) Big-box retailers (Lowe’s, Rural King, Home Depot): Sell small pre-wrapped bundles, but do not offer bulk delivery or consistent hardwood sourcing.

2) Gas stations and convenience stores: Sell firewood bundles seasonally, but the wood is often mixed species with no moisture standard.

3) Tree service companies: Sometimes sell firewood as a byproduct, but the supply is unpredictable and rarely fully seasoned.

4) Pellet and propane suppliers: Not direct substitutes, but they compete for the homeowner’s heating budget during the winter months.

TimberTrail’s Competitive Advantages

Differentiation Summary

In a market where timing, moisture levels, and consistent supply matter, TimberTrail provides a predictable production model, stronger quality control, and more reliable delivery than smaller operators in the region.

Management Team

TimberTrail Firewood Supply has one owner responsible for all strategic and operational decisions.

Marketing & Sales Strategy

TimberTrail Firewood Supply grows through local visibility, repeat seasonal buyers, campground partnerships, and steady restaurant orders. The focus is on simple, low-cost marketing that reaches nearby customers and supports repeat business.

Firewood buyers care most about location, availability, and clear pricing. TimberTrail focuses on being visible in the local places where homeowners and campground operators already search for firewood.

Marketing Channels & Allocation

TimberTrail uses a small set of proven channels to reach customers and manage costs. The table below summarizes TimberTrail’s main marketing channels and how customer acquisition is distributed across them.

This channel mix supports strong winter demand while maintaining steady sales during slower months.

Early Promotions

To build demand before winter, TimberTrail offers a few early promotions.

• Customers receive $20 off their first full cord order.
• Free stacking is included with the first half-cord delivery.
• Restaurants are offered a first-month trial rate for long-split hardwood.
• Campgrounds receive bundle discounts for early summer orders.

These offers help secure early bookings, build trust, and support repeat purchases during peak demand periods.

Sales Strategy

TimberTrail follows a simple step-by-step process that makes ordering firewood quick, clear, and consistent for every customer. The table below shows how each stage of the sales process works from first contact to follow-up.

Restaurants and campgrounds often move to recurring schedules after a successful first delivery.

Measurement and Metrics

TimberTrail tracks a simple set of practical KPIs:

• Cost per lead from Facebook and Google
• Conversion rate from inquiry to confirmed order
• Repeat customer rate across the winter months
• Average order value, including delivery and stacking
• Bundle volume for campground accounts
• Delivery on-time percentage

Reed updates metrics weekly alongside moisture and inventory checks. These measurements help maintain steady cash flow and keep production aligned with demand.

These relationships keep production steady, reduce downtime, and ensure a consistent flow of materials.

Customer Support

Client communication stays simple and direct:

• Text or call before delivery
• Clear order confirmation with price and delivery window
• Follow-up message after stacking or drop-off
• Quick replies during business hours
• Emergency winter refill communication for urgent needs

Homeowners and commercial partners receive consistent updates, reducing missed appointments and confusion during peak periods.

Financial Planning

TimberTrail Firewood Supply’s financial plan shows how startup capital is allocated, how monthly costs are controlled, and how revenue grows across the first three years.

The projections match real firewood cycles: strong winter cord demand, steady restaurant orders, and campground bundle volume in summer. A working capital reserve provides protection against weather delays, fuel fluctuations, and early operating costs.

The projections assume no owner draws during the first three years, with all profits retained in the business to support growth and liquidity.

Startup Costs

The startup costs outline everything needed to get TimberTrail fully operational. These items cover equipment, yard upgrades, insurance, and early working capital. Together, they form the complete budget required to begin production and delivery.

Funding Requirements

TimberTrail Firewood Supply is seeking a $34,000 equipment loan through Farm Credit Mid-America – Lexington Branch. The loan carries a 5-year term at an 8.8% fixed interest rate. Collateral includes the firewood processor, log splitter, delivery trailer, and chainsaws.

Reed Callahan contributes $18,500 in owner capital, alongside a $34,000 equipment loan, for a total of $52,500 in funding.

Operating Expense

These monthly expenses reflect what it takes to run TimberTrail day to day. Labor, bookkeeping, marketing, and insurance make up the core operating costs. Seasonal and non-seasonal totals are listed to match the changes in workload.

Revenue Forecast

Revenue expectations for the next three years are listed here. These figures follow the natural rise in demand as the business grows its customer base.

EBITDA increases as processes improve, and output becomes more consistent.

Seasonal Financial Breakdown

This table shows TimberTrail’s monthly operating performance for Year 1, reflecting seasonal revenue patterns and production-driven costs, and represents EBITDA before startup investments, loan repayments, and financing activity.

Profit & Loss Statement

This statement summarizes TimberTrail’s yearly financial performance. Revenue, cost of goods, operating expenses, and net results are laid out clearly. The table gives a simple view of how profit improves over time.

Cash Flow Statement

Excess cash accumulation reflects conservative spending assumptions, limited capital reinvestment during early years, and retained earnings to strengthen liquidity.

Balance Sheet (3-Year)

The balance sheet summarizes assets, liabilities, and equity over the first three years, including equipment, cash balances, and remaining loan amounts, to show changes in the company’s financial position over time.

Break-Even Analysis

This outlines the revenue TimberTrail must reach each month to cover all costs. The cord and bundle volumes needed to hit that target are included.

• Annual operating expenses: $23,430 ÷ 12 = $1,953 per month
• Annual loan payments: $8,443 ÷ 12 = $703 per month
• Total fixed monthly costs: $1,953 + $703 = $2,656
• Gross margin: $43,430 ÷ $128,000 ≈ 34%

Monthly break-even revenue: $2,656 ÷ 0.34 ≈ $7,800