How to Start a Tree Service

Part 1 - How to start a Tree Service business - Background

Tree service providers are incredibly important to homeowners. Responsible for the installation and removal of trees, these businesses take care of households and businesses alike. They additionally help property owners with weekly, monthly and annual maintenance, including trimming and pruning. In the event of an emergency, a tree service business will remove roots, remove stumps, move fallen tree branches and remove entire trees. They’re knowledgeable about local codes and regulations, helping property owners maintain operations legally.

Our guide is in 3 parts:

• Part 1 - How to start a Tree Service 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 tree service?

A tree service business’ startup costs are typically between $10,000 and $50,000. It’s a hefty sum, accounting for a business license, liability insurance, disability insurance, a warehouse, auto insurance, equipment insurance, umbrella insurance and workers’ comp. The cost additionally includes your business’s many equipment needs, including trucks, safety gear, ladders, chainsaws, a wood chipper, pruning shears, computers, wheelbarrows, invoicing software, an accounting system, a payroll system, business cards, a professional website and estimate forms.

What are the ongoing expenses for a tree service?

Firstly, a tree service provider must pay its technicians between $10 and $23, per hour, to work. This approximates to between $21,000 and $49,700 per year—on average. You’ll need to purchase safety equipment whenever your current equipment is degraded or outdated. Gas, too, is a common expense. As part of your financial planning, you’ll need to take care of vehicle and equipment depreciation. Aside from these expenses, much of your ongoing money will be directed towards promotion and insurance costs.

Who is the target market?

Tree service companies thrive when working for commercial clients. While you’ll mostly encounter residential clients, commercial land owners require constant tree upkeep to maintain land permit standards. They’re lucrative, professional and easy to work with. Because commercial property owners require consistent services, they’re easy to profile—making services quick, effective and thus incredibly cost effective.

How does a tree service make money?

As a tree care provider, your business will make most of its money by maintaining various properties. While installation, removal and emergency services offer decent lump-sum payoffs, monthly trimming and pruning are far more reliable. Tree rescue, root removal, pressure cutting and branch removal, too, are lucrative jobs. Because they’re in high demand—as not purchasing them can be disastrous—a tree service provider offering highly skilled services can make decent money.

How much can you charge customers?

You should charge clients between $75 and $1,400 per job, depending upon the task’s complexity. Additionally, you can charge more if a lot of time—or a lot of risk—is involved. Artisan tree cutting and large projects, on average, cost more. If you want to be a competitive provider, consider offering free, or low-priced, emergency services.

How much profit can a tree service make?

Individual tree service providers, as stated above, make between $21,000 and $49,000 per year. A tree service business, however, can make about $100,000 to $200,000 in annual gross income. After expenses are deducted, annual profit is around $50,000. These profits are, however, based on average-sized tree service businesses—which are mostly small businesses. It’s entirely possible to shoot past these numbers, becoming a preferred provider in your area.

How can you make your business more profitable?

Make the jump to commercial tree care as soon as possible, as it pays better, has more reliability and will fortify your promotion network. A lot of businesses have partners—and these partners can become your partners. Get good at networking, and prioritize quick, consistent services. Consider expanding your services to other outdoor or garden services for additional income.

Day-to-Day and Growth

What happens during a typical day at a tree service?

As a tree care business owner, you’ll be responsible for securing relationships with lenders while registering with local, county and state agencies. You’ll also need to secure and maintain operating permits and licenses. As a decision maker, you’ll conduct competitive analysis and make long-range objectives. Your workers will need to be skilled, insured and understand your business’s equipment intimately. On the service end, day-to-day activities include tree installation and removal quoting, actual installation and removal, trimming, pruning and emergency services. During bad weather—or other emergencies—your business will need to be “on call,” to help local property owners.

What are some skills and experiences that will help you build a successful tree service?

Before taking on an administrative role, you’ll need to understand the basics of tree care. On the technician level, you’ll need to have experience with tree felling, knot creation, A-1 climber use, tree rescue, tree trimming, pressure cutting, chainsaw usage, equipment maintenance and wood disposal. Joining a trade school can help.

From an administrative standpoint, you’ll need to be a capable advertiser. You’ll also need to garner service leads. Tree care, in particular, is a lead-heavy business practice. It’s a good idea to obtain small business consulting, too. It additionally pays off to be well-versed in your area’s property regulations, landscaping laws and hardscaping laws.

What is the growth potential for a tree service?

A good tree service provider can become a cross-state staple. That said, a lot of tree service providers are local businesses. Property owners have surprisingly little knowledge about tree service providers, which keeps the market open from a small business standpoint. If a local provider offers competitive pricing, incredibly fast services and skilled labor, it will experience a lot of service. A local tree service business can grow large if its business plan capably serves multiple areas.

What are some insider tips for jump starting a tree service?

As a tree service provider, you should specialize in either personal lawn trimming or commercial tree care. By having such a niche, you’ll hit a much-needed market angle to get off the ground. By focusing on public spaces, you’ll secure more consistent work. You will, however, need to have a bigger team. If you want to provide personalized lawn care, you can get by with a smaller but highly skilled team.

How and when to build a team

You’ll need to hire independent contractors immediately. They’re cheaper than highly-skilled tree care labor. That said, you should invest in a highly-trained tree crew as soon as you can afford it. If you have friends in the business who are looking for work, offer them a job. You could also search for general labor on Craigslist. Because tree care is incredibly labor-intensive, you’ll need human resources as soon as possible. Aim for at least 10 technicians, as a starting point.

Part 2 - Is a Tree Service business the right fit for you?

Part 3 - Action plan to launch your Tree Service business in 90 days