Operating Agreements

[Montana_Sam]

Hello all:

I'm new to the business management side of things...and actively getting my single-member LLC up and running. Currently participating in some type of mentorship program with the Montana SCORE program (free SBA mentoring), which has been relatively helpful, although my mentors know nothing about running a tree business. I'm curious how many of you:

1.) Have a formal "business model" that you adhere to, have drafted, written up somewhere?

2.) Have an "operating agreement" written up, formalized, etc?

Thanks!

 

[Ted Jenkins]

Hello all:

I'm new to the business management side of things...and actively getting my single-member LLC up and running. Currently participating in some type of mentorship program with the Montana SCORE program (free SBA mentoring), which has been relatively helpful, although my mentors know nothing about running a tree business. I'm curious how many of you:

1.) Have a formal "business model" that you adhere to, have drafted, written up somewhere?

2.) Have an "operating agreement" written up, formalized, etc?

Thanks!

Some of the things you mention just do not work. Probably the most important concern would be evaluate your market in the communities you plan to operate. Such as business licenses required in the State or communities. If you are going to operate just as A one person crew then your requirements can be very simple but when you have a ground person or helper that operates at job site then much more liability and insurance is needed. The mentoring plan is just fine but often many adjustments will be needed as you actually start to succeed. On a typical basis once you start to promote or advertise your services then your insurance license and other legal requirements must be in place. Most people just start off doing jobs with out much experience or knowledge trying to learn and be careful not to make mistakes then slowly progress step by step until they have met all legal requirements then finally adding staff to assist. Most people that I have talked to or met have followed this process because forming a formal model meeting all needs is slow and very expensive that is not attainable. Thanks

 

[Montana_Sam]

Thanks for the reply. Developing a business model does not need to slow you down or be expensive…it’s a relatively easy process. I’m just curious how many tree companies out there have found having a formal business plan and operating agreement helpful in the long run. Commonly we get into business with one goal and get sucked down some rabbit hole, or many. A plan helps keep things in line, focused.

 

[mikewhite85]

I have owned 2 tree companies in different states. Never had a formal business plan. We just looked at the current local markets and determined where the most need was and tried to fill it. Not to say I'm against a business plan. I suppose I have one in my head!