A timber mill.
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cut logs cut longs and cut more logs once you get enough money flip
A sawmill
Well it's simple you cut/buy logs I'm guessing you'r level 1 Fire making. You will need to get some normal logs you can cut them at level 1 Wood Cutting and you need 1 Tinder box that you can buy at the general store for under 10gp. When you have a Tinder box and a full inventory of logs all you need to do is click the tinder box then click a log and you'r character will start to light the logs on fire and repeat that until you have used all logs
You have to get the ax from Luke first. Step into the forest for the first time and you'll meet him and Bo. Luke will then hand over the ax. Just chop away at a tree and pick up the logs it leaves behind once it falls. These logs will become your lumber automatically.
The adze. Looks like an axe with the blade running side-to-side instead of up and down. Used to cut the sides of logs flat to make beams, and to smooth the wood.