Sourcing Land for your Wood Business Ft: Wood by Wicks

 

“I feel like everybody knows that doing the same thing over and over and expecting a different outcome is called insanity. So how do you get to that next level? Obviously, I want to buy land, but land is really expensive. I just don’t have any land in the family. Most people with a sawmill have somewhere to use it, but I have nowhere to do so.”

 

• Zachary Wicks

 

While acquiring land is the most direct element of Zach’s needs, at the core of it, he is looking for the same thing as every business. A way to grow. Getting his own parcel of land will allow him to use his time more efficiently and take on larger projects, resulting in his company’s growth. But because of the upfront investment, there need to be stepping stones on the way there.

 

 

 

 

Gaining Leverage

 

“Sometimes, the way you can grow your business is by having leverage. One way you have leverage is by the equipment that you have because then you can turn that equipment into cash right away. So if you are sitting on a lot of green lumber, maybe investing in an IDRY kiln that can turn that lumber around could be something that can generate cash quickly, especially if you have the market there. 

 

Another example in terms of leverage is your geography. If you’re in a bustling location like it sounds like Oklahoma City is, you naturally have the people around you and the marketplace there that provides you that benefit. On top of that, you have your brand and personality, and passion. That’s your competitive advantage. That’s your leverage.”

 

• Steve Larosiliere

 

In Zach’s case, he has a market, the right location, and a product. The missing things can be solved by getting more capital to work with. Steve notes that he has three options. Zach can save up, which would take forever. He could get a loan from a bank or a private lender. Or he can look into state or government grants.

 

A previous guest on the Woodpreneur Podcast, Josh from Full Circle Forest Products, spoke about scaling up his business primarily through government grants. Steve advises Zach to look into the same opportunities by getting involved with his local community and appealing to his county or city.

 

 

 

 

Finding the Right Spot

 

As Zach finds a way to get the investment funds he needs, he can also begin searching for the right bit of land for himself and his business. The best option for that process is by searching for land in his area using the website Zillow. From there, Steve advises Zach to start looking for the newest to oldest, search prices from low to high, and then begin making lowball offers.

 

“There are lots of places that you can probably go in on, especially if it’s spent like three or four months on Zillow. You can just buy it and hold it, and I’m sure taxes are pretty low. Then run a generator there for at least a short term, put up a storage container to store all of your lumber, and you can just put up an A-frame. You get in there for $20,000-30,000, and then you build on top of that.”

 

• Steve Larosiliere

 

While the upfront costs may seem prohibitive to many, as Steve points out to Zach, there are many costs he’s already paying that could be absorbed by his new property. For example, he keeps his Woodmizer sawmill in a storage facility for $400 per month. Ultimately, there are options available; they just require some creative thinking.

 

“I would just go in with the mindset of “Listen, I’m going to buy some land.” Or better yet, find somebody with some land. Ask them if you can use it, and rent it from them. I’m sure somebody has something empty, with a building and everything.

 

I would even go to your own personal Facebook page and say, “Hey, I’m looking to lease some land from somebody in 2022. It’d be great if they had some buildings or a warehouse available. Give me some leads.” If you have more space, you’ll make more money, period.”

 

• Steve Larosiliere

 

Instagram: @woodbywicks