Stonehedge Fiber Milling Equipment, Inc.

Business Planning

The bottom line for me is, I want you to be successful as the operator of a cottage carding mill. If you are thinking about this type of operation, I encourage you to do your homework. A sound business plan is essential. I will assist you in any way that I can. Some of the first issues to consider are local zoning, waste water disposal, and a building to house the equipment. Lack of humidity and hard water can create severe problems for a fiber processor.

I encourage you to visit our mill as well as other mills. The initial investment that you will make in machinery and the wash operation will approach $125,000 to $135,000. I also recommend that anyone entering into this type of business have a strong fiber background. The learning curve in operating a mill is significant and your timely delivery of a quality product will be the key to your success.

I will be glad to answer any questions that you may have regarding the equipment (see our contact page). I will also provide you with a financial history of my wife's business and the costs you may incur processing 1500 plus pounds of fiber a month.

I strongly recommend you call rather than email. I will need to ask you questions about your situation in order to be able to give you useful answers. With a phone call I can immediately find out exactly what you're looking for, and be able to give you information tailored to your needs.

We have compiled a list of possible Monthly expenses incurred by a cottage carding mill processing 1500 pounds of fiber a month. These costs will vary depending on location and other factors. These particular figures are averages based on a three-year operating history and have just been updated as of March 2011.

Important Points to Consider
Before Starting:

• Business planning
• Building(s) to house the mill and fiber
• Your knowlege of fiber and its processing
• Local zoning
• Utility costs
• Water source and quality
• Waste water disposal
• Trash disposal
• Likely labor needed
• Managing employees
• Cost of labor
• Cost of taxes, Workman's Comp
• Cost of insurance
• Shipping issues
• Projected cash flow
• Bookkeeping skills
• Accounting
• Your health, energy level, and committment