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Starting Tree Cutting & Trimming Business – Profitable Business Plan

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tree cutting and trimming business is very profitable in the USA. Read profitable business plan

The green industry is vast and has a number of businesses under this category. We’ve discussed about businesses relating to landscape, tree surgery, nursery etc. Now the last in the list is the tree cutting and trimming business which is also a growing and promising business to step in. I would say, the work here is little complex than the other businesses. Like how the business has high levels of work, the profits earned are also more. Thus, choosing the same can never let you down without a decent income.

Before you make plans for the business, understand what it is. Tree cutting is the process of removing a tree from the ground for various reasons. Trimming is the process of altering the height or width of the tree. These services cannot be done without experience or research in tree trimming and cutting. And there comes the need for a business like yours! In this article we will discuss about how to start a profitable tree cutting and trimming business.

Why is tree trimming important?

Tree trimming is often understood as a service done to clear branches for more space. Unfortunately, a lot of entrepreneurs go with the same statement and as a result the real value of the business is left untold. For a person to start any business, a business plan alone is not adequate. Thorough knowledge on the importance or benefits of the business is absolutely helpful to assess the business’s capability to generate profits.

Let’s travel through the same and educate ourselves with the exact purpose of tree trimming. The benefits can be categorised into two divisions roughly.

  • Health of the tree
  • Appearances of the tree

These two categories also reveal that the business does not exist for forest trees, but for trees that are grown within the city or in residential areas. Commercial orders may also approach you and the income generated from those are extremely high. Those orders are from the property owners who have trees in their land. Certain norms on properties demand a regular tree service done by the property owners. In such a case, you get an opportunity to provide your service.

Health

With regards to health, a diseased tree is not dangerous for the tree alone, but for the society too. A number of insects can find their habitat in a diseased tree which will directly affect the people living in the same locality. Coming to the effects on the tree, the growth process will be slow. Also, the fruit or plant that the tree is to produce will be highly infected.

Appearance of the tree

The appearance of the tree is considered important since the intervention of technology and other developments in the green industry. People now know that they can have trees according to their ideas and desires. Even the structure of the tree matters to these people who think trees can make a place presentable. As a solution to all these, you as a tree trimmer will facilitate them with services of trimming and cutting.

Investment in tree trimming business

A tree trimming and cutting business runs with tools and labour. Of these two, the expenses for tools is found to be the highest. You can initiate the business if you are ready with at least $10000. Having this as the minimum investment, you can expand your business by increasing the investment to $50000. If you do not have better financial support, then try to focus on mandatory factors. This clearly insists on having just tools and part-time labours for the business.

Here, you will not have office expenses as you operate without an office. In such a situation you will be known to your customers by advertisement and they’ll contact you on your number instead of visiting you. But do not forget that the profits generated without an office is quite less than the one with an office.

Make sure you allocate one part of your investment for future expenses. Undoubtedly you will have your profits coming to you, but it is always better to maintain the further expenses from the amount allocated for investment.

Necessary tools and machines

The first place where you will spend your investment is the department of tools and machines. They are the integral part of the business and it is impossible to run a tree trimming business without necessary tools. Some of the tools are,

  • Climbing rope
  • Helmet
  • Wedges
  • Oil can
  • Saddle
  • Clips
  • Ladder
  • Cutting machines

After purchasing your tools, have a track on the newly invented tools also. This is because, your customer may also look for a modern company to get an elite service. Obsolete machines and tools may at times reduce the quality of the work done.

Next part to concentrate is the safety of the tree trimmer. For the same, you will have to have in stock all the necessary safety equipment like ropes, helmets, etc. These are necessary not only for the safety of your workers, but also to obtain certain licenses.

Warehouse

There is one unique requirement here which makes the business more lucrative. You might wonder why there is a need for a warehouse. Surprisingly, they are needed to store the wood pieces that you will be getting whenever you go for a cutting or a trimming service. This is an additional income that comes out of zero investment.

However, some customers may not allow you to collect those wooden blocks. It is your ability that can play a role in convincing your customers for this.

Labour

Form your crew right by deciding what kind of workers you want. Also, plan for a very decent number so that you don’t go wrong by running out of workers. On the other extreme, don’t have too many workers sitting idle without any orders. To clearly judge on the demand for your workers, study the market. Check how many orders you get every week or forecast the potential customers. Another idea is to have a count of all that you do.

For example, you can advertise about your service to 100 potential customers and with that a rough calculation can be made. In a set of 100, you can expect at least 20 customers turning up for orders. You can pay them $10 to $23 depending on the complexity and risks associated with the work.

Prices for tree trimming and cutting

Tree trimming is a service which is regularly needed and the price for it is also quite less due to less work. It is very easy to arrive at a price for tree trimming. The main price determinant in case of a tree trimming service is the height of the tree. For trees with height up to 60 feet, you can charge from $150 to $875. Taller trees may be trimmed by charging them more than $875 depending on the variety. Some of the different styles of trimming are,

  • Standard pruning
  • Crown reduction
  • Crown raising
  • Crown thinning
  • Topping
  • Topiary

Unlike trimming, tree cutting is a little complex service. It involves a lot of work which in turn proves that the service is time-consuming. Thus, pricing the service high is definitely not an issue. There are few determinants for pricing a tree cutting service.

  • Height of the tree
  • Measurements
  • Location
  • Dead trees

From records, the following prices have been found based on the measurements of the tree.

  • Small sized- $120 to $430
  • Medium sized- $175 to $900
  • Large sized-$400 to $1000

Insurance and license

Tree trimming business operates by using a number of hazardous machines and tools. The professionals working in your firm should be well trained to use those tools. The training is to show them qualified, but as an owner of the company it is your duty to have safety equipment ready in case of any emergency.

You will have to have your business insured by applying for the right type of insurance. Insurance is not important for your workers alone, but also for your customers to trust your company. There are certain types of insurances which will cover the damages incurring in the customer’s property too. With all these, insurance is declared to be one of the most important documents needed to run a tree trimming and cutting business.

  • General liability insurance- Covers claims relating to injuries to body at work, property damage etc.
  • Worker’s compensation insurance- When a worker from your company meets with an accident, this insurance will cover the loss and also defend your company when it is to be sued for such an incident.

Coming to licensing the business, it is the very first thing you have to do while planning for the business. Explaining it short, applying for a license is as important as purchasing tools for further operations in the business. The very first step is to acquire a business license. The following documents are required to obtain a business license.

  • Affidavit of lawful presence
  • The certificate of liability insurance

You will have to pay an application fee and license fee for obtaining this license. The fee will come around $50 including the application fee. In case of a check, it should be produced to the Manager of Finance.

Profit margin

Profits, the most uncertain part you will come across if you have not planned your business properly. Regular revenue is alone not important for a business. As an entrepreneur, it is your responsibility to make necessary and feasible plans to turn all the possible opportunities lucrative. On an average, the profits range from $21000 to $49000.

These numbers are pointed out for services doe for a medium-seized tree. Thus, these can always be elevated with expansion of services. There are few tips to maintain a very decent and consistent profit. Those are,

  • Having a budget for office overheads
  • Planning for perfect number of labours for one work
  • Handling and maintaining machines to avoid chances of replacement
  • Frame a vast network within your city and get huge number of orders
  • Purchase your resources in bulk to reduce the costs

Conclusion

So yes, you will now be knowing what kind of preparation is needed to initiate this business. All that given above can partly taken as theory and partly rethought in a different way. Each section of the article can be modulated depending on your financial strength and other conditions.

Look for the best techniques to trim and cut and that is when you will be able to give your best. You are never old to learn new things and especially learning about your business to explore ideas and strategies will shoot your business to unimaginable position.

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