How to Start a Custom Treehouse Business

Part 1 - How to start a Custom Treehouse business - Background

Since the beginning of time, trees have been used by humans as a form of shelter. In more modern times, treehouses have become fun places for children and even adults to spend their time. Tree house builders design and build treehouse structures in trees. This includes everything from a child’s tree house fort, complete with zip lines and rope bridges, all the way up to small family homes.

You may also be interested in additional unique business ideas.

Our guide is in 3 parts:

• Part 1 - How to start a Custom Treehouse business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening a custom treehouse business?

Your knowledge is the biggest asset to the company. If you’re considering a career in tree house building, you likely have years of education and experience under your belt; something that no one can put a price on.

In addition to your own knowledge, one of your biggest expenses will be building a team of employees who can expand that knowledge base. Customers are entrusting you to ensure their investment is safe and will last for years to come; hire those you can entrust with your life and your livelihood.

Given the niche group of customers you’re catering to, a strong marketing strategy will be critical from day one. Partner with an individual or company experienced in marketing for more specialized professions. Invest in a website from the beginning and offer prospective customers insight into the entire process. Your site doesn’t have to be huge and interactive at first, but it will be an integral part of your marketing investment. For a simple website, budget for between $4,000 and $6,000, depending upon your location.

If there are any specialty tools you need, now is the time to purchase those as well. This will include a few trucks to haul all equipment and team members from site to site. Make sure your business name and contact information is prominently displayed on each vehicle. This is a great way to get your business’ name out in the community.

What are the ongoing expenses for a custom treehouse business?

Many tree house companies operate with very little overhead. Traveling is often required, which can be built into the overall price of the project. If you decide to have a storefront for people to visit, you’ll have your standard expenses stemming from that. The largest ongoing expense will come from your marketing efforts. If this isn’t your strong suit, you will want to team up with a company who is well-versed in online marketing campaigns.

Additionally, an insurance policy is critical for protecting your company, customers, and staff. Speak with a qualified agent to discuss the specifics of your business, as there are a number of factors that influence the annual premium. Due to the nature of your business, these policies can prove to be quite expensive.

Who is the target market?

Unfortunately, not everyone will have the funds to commission this sort of project. Your clients will be those who love the outdoors, who are kids or kids at heart, and who have enough money readily available to finance the venture.

How does a custom treehouse business make money?

A custom tree house builder designs and constructs structures based on their client’s vision. Customers are billed based on a number of factors including time spent on design, quality of materials required, location, and size and scope of the project.

How much can you charge customers?

Each project will come with its own price tag, based on the specifics of the model you and your customer have designed. Many tree house builders operate under a full service business model. During the initial consultation, you will evaluate the area for a potential new structure at a set hourly charge. In the design stage, the elevation, floor plan, and platform plan are drawn up, typically for a set fee. Once construction begins, the designer can either subcontract the work out to a building contractor or choose to do the work themselves. Cost of this phase of the project is dictated by a number of factors and will vary from house to house.

There are a number of additional items to consider when setting the price for each custom tree house. The amenities, such as running water or electricity, that your treeshouse has will affect which type of building it is classified as. The classification of each treehouse will affect which permits will be necessary to obtain for that structure to be built. Since each permit costs a different amount, it is important to consider the classicification of each treehouse so that you can charge your customer an adequate amount that will cover the costs of all permits needed. To learn more on this subject, click here.

How much profit can a custom treehouse business make?

Tree house builders are part of a highly specialized field. It requires a great deal of knowledge and experience to be successful. Therefore, there’s a small pool of builders for clients to choose from. Consequently, these custom structures come with a hefty price tag, with some going for over a million dollars. Your profit is directly tied to your marketing efforts, how many custom jobs you take on each year, and how much of the process you perform yourself. Pete Nelson, Treehouse Master’s host, is reportedly worth over $5 million, proving that the sky’s the limit.

How can you make your business more profitable?

Some companies have reported higher earnings by integrating the following into their business plan:

• Focus your efforts on the design aspect, outsourcing the construction work to local construction businesses. By entrusting this stage of the job to a subcontractor, you’re able to take on more clients and grow your business faster.

• Offer tree house restoration services

• Offer tree house kit planning services. Custom design and sell blueprints and materials for the structure, leaving the construction aspect up to the customer.

• Sell standard tree house plans, along with all necessary materials

Day-to-Day and Growth

What happens during a typical day at a custom treehouse business?

While much of your time is spent in the actual construction of the tree house, there are a number of other tasks that will fill your days. Once you’ve gained a client, you’ll meet with them to get to know them on a more personal level. This helps you really understand their dream tree house and turn that vision into reality. While the customers have hired you, the tree itself is your most important customer. An inspection of the tree is critical to building a treehouse that is safe for everyone involved.

Once your meetings are complete, it will be time to design the custom tree house. Additional meetings will be necessary, until a contract for your services have been signed. At that time, construction will begin. Some tree house builders contract this aspect of the business out to a construction crew, while others jump in and get their hands dirty. Either way, your job as the owner will be to oversee construction from beginning to end.

What are some skills and experiences that will help you build a successful custom treehouse business?

Your job is to design a treehouse that is structurally sound and safe for both its inhabitants and the tree. Individuals seeking to start this type of business must have a firm understanding of mechanical engineering and construction principles. These skills are required for both the designing of the tree house to scale and being able to manage construction of the tree house. Carpentry is also a beneficial skill to possess in this line of work.

What is the growth potential for a custom treehouse business?

It’s important to remember that this is a highly specialized field. Each phase of the project will require your full attention. This will limit you in how many custom jobs your company can take on each year. However, the specialized nature of this career also affords you the opportunity to charge a high premium for your services, making it quite the lucrative business.

How and when to build a team

Safety is the greatest concern in the custom tree house building business. You’ll need a knowledgeable team that consists of individuals experienced in dendrology, engineering, architecture, and woodworking. A majority of the work will take place in the trees, so everyone on your team should be cautious and respectful of this fact.

Part 2 - Is a Custom Treehouse business the right fit for you?

Part 3 - Action plan to launch your Custom Treehouse business in 90 days