Specialty hardwood lumber yard

Hobby woodworkers, furniture makers, cabinet shops, small contractors and craft businesses in your area.

You mark up wood bought wholesale and sell by the board foot or by the piece. Extra income comes from milling, cut-to-size services and local delivery fees.

• Knowing wood species, grades and moisture
• Inventory and cash flow management
• Customer service and sales
• Safe handling of heavy materials

• Zoning and local business license rules for a retail or storage site, check with your city or county
• General liability and property insurance, including cover for stock and fire risk
• Register for sales tax with your state and ask about a resale certificate for buying stock
• Forklift and equipment safety, check OSHA training rules, and workers' compensation once you hire
• Wood tied up in stock can hurt cash flow, and moisture and storage problems can ruin boards
• Some states restrict moving certain untreated wood across state lines because of pests, check your state agriculture department

Startup costs are typically around $15,000 to $70,000, depending on your site, the stock you buy and any equipment. These are estimates, and stock can tie up cash, so plan your buying carefully.

Monthly revenue is typically around $5,000 to $25,000, depending on your stock, location and customer base. Estimates assume at least about 30 hours a week. Revenue is not profit, so budget for stock and premises costs.

Check zoning and local business license rules for a retail or storage site with your city or county. Register for sales tax with your state and ask about a resale certificate. Also check insurance for stock and fire risk, OSHA equipment training, and state limits on moving untreated wood.