Workers' Comp. Ins is mandatory for all employees. In some states it is optional for owners. A disability insurance policy is another option for owners. This was recommended to me by an experienced climber trainer that only prunes. His likelihood of an injury is lower based on much skill and few removals. For a new climber, the risks are much, much greater. As well, this only covers his disability, possibly not medical bills.
I have this option, but I still opt for WC for myself, even though I try to be super-safe. In WA state, WC is run though the state. Its based hourly, not as a percentage of payroll, which I've heard usually runs between 31-41%. Easy for me to just pay this rate of about $2.25/ hour. For my other climber, paid at $22.50/ hour, this is only 10%, so relatively painless, though most places WC would be more like $8/ hour. As you might increase size over time and hire an employee, you need to factor this in.
If you are reinvesting a lot into the business, you may be paying yourself a small paycheck, at least at first, so your workers' comp coverage MAY be relatively cheap at first. Sounds like you're interested in getting a partnership. You will need to be sure how Worker's comp will work in CO. Get many quotes and read the fine print from different insurance companies.
Equipment versus labor:
Machines need insurance, and maintenance, after the initial purchase price, so factoring this equipment cost versus labor cost may become important. For example, if you need to load and unload a trailer of firewood from a job, having a small tractor that you load firewood with, or a log arch at least, will reduce you need for labor, as will a dump trailer. A big expense of front, but may or may not pay off over time, as you will cut your labor and WC expenses.
Firewood: Not such a profitable thing, especially if you are legit and non-automated. Sounds like most firewood people make out better by volume and use of equipment versus hand-loading, unloading, splitting, stacking, hand loading for delivery after seasoning it (or you can sell it cheaper as green wood for the next season), then hand unloading. Lots of work, and strain on the body, for small return. Of course if you have a bunch of time on your hands while getting started, a small return may be better than none, providing that it isn't taking way from your business development time.
Also, since beetles are such a problem (mountain pine bettles, maybe???), storing firewood without removing the bark (I think that this is a recommended measure) might become a problem. You'll be concentrating beetles at your wood pile, exposing your trees to greater risk, and your neighbors, which could of course bring a lawsuit. I don't know if this is a problem or not, but I'd check into it. Removing all the bark off of beetle-killed trees sounds bad, off green wood, even worse.
I don't want to discourage you, just offer some heads-up to some pitfalls, so that they may be considered and avoided.
