I was curious to see if you all enjoy the tree service business? Is it profitable? The reason I ask is a local tree service is for sale. They are the oldest in the area with a Great reputation and good equipment. There are many employes with lots of experience. I have been in the land clearing business before but not tree removal, so I have a slight understanding of the business. Would any of you recommend getting in the tree removal business.
Get into tree removal business?
- Thread starter turkeyleg
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flushcut
Addicted to ArboristSite
Ok to start you have no clue how to do a technical removal in a postage stamp backyard, it is one thing to use a dozer than it is to use a saw and rigging. I think you are going to have problems with your crew not respecting you and you should be prepared for that and the occasional middle finger. If you plan on being a hands off boss then great let the guys handle everything and do not question them. You just run the books, but keep in mind they know what you should be spending your $$$ on as far as gear is concerned so listen to them.
Thats my idea, let the guys that know what they are doing go and I would run the business and try to grow it. I believe there is room to grow into other avenues. My main question is are you guys making money and would you encourage someone to get into it?
What do you want your profit margin to be? 5%, 10%? You can make a living and be comfortable but I don't know many rich arborists.
B Harrison
ArboristSite Guru
Sounds like a terrible idea, when the boss doesn't know what to expect, how in the world does the job get done correctly and in a safe timely manner. Experience is where a good tree service must start, be it 20 years or 2.
Like General Contractors who just take the test, and know nothing about building, they give us all a bad name.
Just my .02
Like General Contractors who just take the test, and know nothing about building, they give us all a bad name.
Just my .02
ozzy42
Addicted to ArboristSite
How to make a small fortune in the tree bizz
Start with a large one
What is the reason the owner is selling?
Is he retireing? Moving ? Problems with one or more of the ''Many employees''? Marital probs?Or maybe just burned out in spite of success?Happens quite a bit.
I think you need to know before you flop down a wad of cash.It could be the case of this year's profits are down from last years or worse ,,profit no longer there.
I'm not saying any of the above negatives are going on but,you never know??
If all is good and on the ''up&up" ,see if you could negotiate keeping the owner on the payroll for a month or two.Would be worth it for you ,as you would be learning everything from scratch.
It is possible to run a successful tree business Wo/prior tree exp. if you have bussiness exp that can carry over.Sounds like you do from your post.I have seen it done ,BOTOH I have seen 75% of them fail within 2 yrs.
Start with a large one
What is the reason the owner is selling?
Is he retireing? Moving ? Problems with one or more of the ''Many employees''? Marital probs?Or maybe just burned out in spite of success?Happens quite a bit.
I think you need to know before you flop down a wad of cash.It could be the case of this year's profits are down from last years or worse ,,profit no longer there.
I'm not saying any of the above negatives are going on but,you never know??
If all is good and on the ''up&up" ,see if you could negotiate keeping the owner on the payroll for a month or two.Would be worth it for you ,as you would be learning everything from scratch.
It is possible to run a successful tree business Wo/prior tree exp. if you have bussiness exp that can carry over.Sounds like you do from your post.I have seen it done ,BOTOH I have seen 75% of them fail within 2 yrs.
Pelorus
Uva uvam vivendo varia fit
You will have to do some thorough "due diligence" when it comes to going through his financial statements over the last couple of years. Majority of my biz is residential, and the margins have shrunk. Expenses like advertising, fuel, insurance, labour keeps going up; profit does not. Probably a different scenario with strictly commercial / insurance work. Large increase in competition nowadays from landscapers and property maintenance tree "experts". And guys who own a p/u, a ladder, a saw or two, and some junk they got on eBay or Craigslist.
Grouchy old man
ArboristSite Operative
Huh? "Let the guys that know what they are doing go and I would run the business"?:msp_confused:
You mean that you are going to fire all the experienced guys and run the business with no experience yourself?
KenJax Tree
Terraphobic
RiverRocket
ArboristSite Guru
it's all about management
i'm a General Manager, Here is how i'd evaluate weather i would buy the business
#1) interview the owner (ask lots of questions) identify any/all company issues
#2) interview all employees (ask lots of questions, Dig-find the issues,ideas and problems) are there any employees that are capable or willing to manage the day to day operations (customer service,scheduling etc)
#3)Review last four years Finances
collect all the issues,Ideas and Problems and prioritize them
After collecting as much data as you can and prioritizing all the company issues:
ask yourself if you are willing or do you have the manpower to start MANAGING the company
You don't have to have experience cutting trees-you have to be able to manage people and things.
It takes four Components to operate any company, Sales,operation, Finance, and administrations, and one person can only effectively manage 6 people so is there people within the company or your existing company to manage these positions?
i'm a General Manager, Here is how i'd evaluate weather i would buy the business
#1) interview the owner (ask lots of questions) identify any/all company issues
#2) interview all employees (ask lots of questions, Dig-find the issues,ideas and problems) are there any employees that are capable or willing to manage the day to day operations (customer service,scheduling etc)
#3)Review last four years Finances
collect all the issues,Ideas and Problems and prioritize them
After collecting as much data as you can and prioritizing all the company issues:
ask yourself if you are willing or do you have the manpower to start MANAGING the company
You don't have to have experience cutting trees-you have to be able to manage people and things.
It takes four Components to operate any company, Sales,operation, Finance, and administrations, and one person can only effectively manage 6 people so is there people within the company or your existing company to manage these positions?
Good post but where do you come up with the idea that "one person can only effectively manage 6 people"?
If I had a manager who could only manage six people I think I'd need to take a look at his management style. Maybe mine, too.
Our work is never the same thing two days in a row, very often it changes several times a day. We move from place to place a lot. Weather, terrain, type of timber being logged, types of machinery used, these change constantly. I see 8 to 10 man crews every day that are run by one man. If he's running a crew, doesn't matter if he's a bullbuck, a side rod, or a hooktender, he's a manager.
LOL...there are a lot of days when running only six people, especially if they're good hands, would be like being on vacation.
And you left out two components needed to run a company...major components. You need a healthy dose of common sense, and a good sense of humor.
formationrx
ArboristSite Guru
op...
o hell no....
o hell no....
beastmaster
Addicted to ArboristSite
Like any field, be it pipe laying or tree removal, a few businesses are going to shine above the others. Why, well because of the reputation they have earned, the quality of work they perform, even the personality and knowledge of the owner. Some thing has to make a Company shine.
If you bought this Company whats going to set it above the others? It don't take long for a business to get run in the ground and become a huge money pitt.
I'm sorry to say, but your dependent on your employees, and if they want they'll milk Jobs, fudge hours, take risk or do half ass work. I know when a crew is f##king up, slow dragging or what knot , and yelling and threating isn't how you handle it. They have to respect you even if they don't like you.
I know crews that love ''the old man," and will ride for the brand, and I know others that do as little as possible and could care less if a job is done on time or right.
Even if you paid for the business, it'll be your foremen who is going to have to run it. Hire the best one you can and listen to him, without him your dead in the water
Without experience your business can't be a top shelf company, and if your not that, your fighting the other little fish for the scrapes, while being bled a little each day watching your investment go down the tubes.
Your money might be better spent expanding what you already have. IMHO
If you bought this Company whats going to set it above the others? It don't take long for a business to get run in the ground and become a huge money pitt.
I'm sorry to say, but your dependent on your employees, and if they want they'll milk Jobs, fudge hours, take risk or do half ass work. I know when a crew is f##king up, slow dragging or what knot , and yelling and threating isn't how you handle it. They have to respect you even if they don't like you.
I know crews that love ''the old man," and will ride for the brand, and I know others that do as little as possible and could care less if a job is done on time or right.
Even if you paid for the business, it'll be your foremen who is going to have to run it. Hire the best one you can and listen to him, without him your dead in the water
Without experience your business can't be a top shelf company, and if your not that, your fighting the other little fish for the scrapes, while being bled a little each day watching your investment go down the tubes.
Your money might be better spent expanding what you already have. IMHO
flushcut
Addicted to ArboristSite
Can you smell the sarcasm? I can.
