How To Start A Tree Removal Business?

A tree removal service is an excellent business venture. It is sustainable because trees will always need attention. It is constantly growing because the industry is currently worth over $29 billion. In addition, it is a business that can operate from your home. If you are unable to commit to it on a full-time basis, then opt for part-time services.

However, this does not mean that getting a tree removal service off the ground is easy. You will need to have an arborist’s skills and training. Apart from direct work experience, to run a business you must have good customer service skills, business management skills, and pricing information. You will also need the right tools and a tree removal service business plan.

If you are interested in delving into this industry, keep reading our guide on how to start a tree removal service.

What do you need to start a tree removal service?

Starting any type of business is overwhelming. However, we’ve put together a series of things you need to do to launch your tree service. These are:

• Write a business plan
• Select a legal entity
• Acquire capital
• Register your business
• Certification and license
• Set up an accounting system
• Acquire staff and equipment
• Get insured
• Promote your business

How to write a tree removal business plan?

A business plan is the only way to turn your idea into a reality. This acts as a roadmap. It will state your purpose and focus, your business goals and how you will achieve them, etc. With a business plan, you can keep track of your growth and assess your tree removal service.

How do you draw up a business plan? There is no clear-cut way to create a business plan. Simply write one up that fulfills your needs. If you’re creating one for yourself, use the lean format. This type focuses on important aspects of the plan like revenue streams, value proposition, key partnerships and resources, customer segments, and activities.

Obtaining Capital

Just how much money will you need to run a tree trimming service? The answer depends on the types of services you want to provide, the number of people you hire, the equipment, the business software, etc. You should plan to have $10,000 to $50,000 to get your business off the ground.

To get a realistic picture of how much you will need, set up a spreadsheet. Write all the startup expenses you will face such as equipment, license fees, marketing, permits, etc. Plan to set aside enough money to run your business for at least one year. When you get a rough estimate of the capital you will need, decide how you‘ll get the money. You have several options at your disposal such as:

• Crowdfunding
• Small business loans and grants
• Personal savings
• Small business loans
• Bootstrapping

You may select one or several of these to obtain capital.

Define partnerships and revenue streams

What services will you offer? How do you plan to make money? What services can you do and for which services will you need to subcontract another company? For instance, you may specialize in treatment and inspection but you may subcontract another tree service for the removal of tree stumps. You may also subcontract your services to a landscaping company.

Other services that you may offer include:

• Stump grinding
• Tree pruning
• Fertilization
• Tree storm repairs

Pricing

Once you’ve defined your list of services, you must set a price. The goal is to make a profit, so don’t price your service too low. To set the right price, consider variables like labor, gas, insurance premiums, and the competition’s prices. Ensure your prices can cover operational costs and meet profit goals.

Define your market

What does your customer look like? Do you plan to offer your services to only residents? Will you include commercial establishments? Even though there are more retail customers in residential settings, you can acquire more profit from offering services to commercial properties. This type of property needs lots of upkeep. By offering your services every month, you will set up a regular income stream for your business.

Select a legal entity

Structure your tree removal services as an LLC, partnership, sole proprietorship, or corporation. Your legal entity will affect your taxes, business name, and liability. Consult with a lawyer or accountant to figure what’s the best way to structure your company.

Registering Your Business Name

Choose a suitable name for your venture and register it.

Create your logo and business name

It’s not easy to pick a business name. You want to come up with one that sounds professional, is easy to recall, and paints a clear picture of the services your company offers. Keep in mind, this is a name that will show up on documents, on social media platforms, and on the side of trucks. It takes time to come up with names that reflect ‘the best tree removal company’.

After selecting a name, decide what the logo will look like. Similar to your business name, it will appear on everything including paraphernalia, business cards, document,s, and marketing paraphernalia.

Register your tree removal service

Register your business name with state and local agencies. If you have trademark protection, don’t forget to register at the federal level. The registration procedure varies depending on the type of business entity and location where you will operate your business.

Seek tax registration

Obtain an employer identification number from the Internal Revenue Service. You will need this to obtain a business loan, set up a business account, and set up business credit as a professional tree removal service. Your EIN number adds credibility, eases filing, and prevents identity fraud.

Certification and License

Obtain licenses and permits to set up a tree removal service. Do some research to learn about which types of permits and licenses are necessary for state and local agencies for small businesses.

How to obtain a tree service license?

A tree service license is mandatory in some states only, like California. Check with state and local agencies to determine if you will need one. Licensing guidelines are different in each state. For example, tree license requirements in California need 4 years of minimum journey-man level experience before obtaining a passing grade on a state exam.

Certification

You don’t need to have certification as an arborist to set up a tree removal business. You may hire people with this training. In this industry, most training happens on the job.

Set up an Accounting System

Set up your business account and obtain a business credit card. Keep business finances and personal finances separate. Set up an accounting program that creates, oversees, and manages the budget.

Hire the crew and equipment

What essentials do you need to start your tree removal service? How many people will you hire? The answers depend on the types of services you will offer and the size of your operation.

What tools will you need?

You will need the following:

• Helmets
• Ladders
• Saws
• Eye guards
• Ear protectors
• Stump grinder
• Bull ropes
• Block trailers
• Ladders
• Clips

In terms of your crew, you may start solo and subcontract work to other tree companies. On the contrary, you may hire a small crew as well.

Get insurance coverage

Tree removal is dangerous work. You will use lots of tools and operate equipment that might injure you. Accidents can happen at any time, so it’s best to be insured. Opt for general liability insurance to cover your business.

Promote your business 

There are many ways to do this including:

• Word of mouth
• Social media platforms like Facebook, Twitter, and Instagram
• Print flyers and business cards
• Publish ads in your local newspaper

Starting a professional tree removal service won’t happen overnight. You will need to put in a lot of time, effort, and money to succeed.