How To Start a Tree Service Business
Wondering how to start a tree service business? Looking to start a tree service business? Nate Jones Entrepreneur is here to help you with a free tree service business plan below. Starting your tree trimming business the correct way is important.
How much does it cost to start a tree service business?
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$50,000 - For a Used Bucket Truck
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$30,000 - For a Used Wood Chipper Trailer
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$1o,000 - Equipment, Chainsaws, and Tools
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$500 a year for a website and formation of LLC
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$2,500 a Year for Insurance - If you need insurance, reach out to Wexford Insurance, they work with a lot of Tree Service Businesses. wexfordins.com
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TOTAL COST TO START: $93,000
How much money can you make starting a tree service business?
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The average cost for tree service is $750 for residential and $1,000 for commercial jobs.
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How much money do tree service businesses make a year?
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With servicing 10 jobs a week (6 Residential & 4 Commercial) you can make $8,500 a week
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On a monthly basis that is $34,000
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On a yearly basis that is $408,000!
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Are Tree Service Businesses Profitable?
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Yes, the average profit margin is around 35% (you should be charging 50% over your labor cost)
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At a 35% profit margin, that means if you did $408,000 in revenue you would yield $142,000 a year profit!
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The challenge with this business is scaling past the local level and finding trusted employees.
Positives of a Tree Service Business
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This business is in a niche. There are not a lot of tree service businesses, therefore you have less competition.
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This business is always needed. People do not know how nor want to trim their own trees.
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This business has high profit margins.
How do you get tree service jobs?
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Create a website with SEO (Search Engine Optimization) and post on social media apps.
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Network with local home builders, general contractors, home remodelers, etc.
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Sign up with Contractor Back Office (contractorbackoffice.com) to get leads for tree service jobs.
How to Start a Tree Service Business
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Save up money for down payments on equipment
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Form your LLC with the Federal Government and Local Government
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Create your website and social media pages
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Purchase Insurance
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Find a Lawyer to draft your customer service contract
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Make connections with local realtors, contractors, property managers, and homeowners.
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Implement local marketing.