Business Owners: What did you start with?

[theciscokid]

I've been working in the tree biz for the last 4 years, and climbing full-time for the last 3. In a few years, I am planning on going out on my own. I know every tree service has a different story, so I am curious to hear some of them. I had a few questions for those who took the plunge and started their own company.

1. What were start your up costs?

2. What did you start out with for equipment?

3. Was your business financed?

4. Which marketing/advertising methods did you use?

5. If you could go back, what would you do differently?

 

[ATH]

Are you planning to leave and compete with your current employer or offer different services or move to a different market? The reason I ask is can you start phasing into that slowly now? Would the place you work for now be willing to sell you equipment they don't use or perhaps an old piece of equipment when they upgrade?

I started out with everything I needed to climb and a dump trailer to haul away brush, an AirKnife and compressor. Also had to buy a pickup to pull it around. Total start up was somewhere around $20K. Most of that came from savings. I did borrow some, but paid it off in less than 2 years...kinda think maybe I shouldn't have, but it didn't kill the business, so not a huge regret - just something I wouldn't do again. I would have liked to start out with more pest control capabilities, but what would I have dropped? Maybe the AirKnife stuff. That gets underused, but I think it is a great tool so I don't regret that...just thinking maybe I should have switched order of purchase getting a sprayer first.

Marketing was word of mouth, website, and paying too much for phonebook (still do that...not worth what they charge, but gotta be in the book I guess, so I just take out a small ad in each of them).

If you have a solid 2 year plan, start saving HARD now and look for great buys on equipment. You don't need it yet, so don't buy it unless you feel like you are stealing it.

 

[jefflovstrom]

Are you planning to leave and compete with your current employer or offer different services or move to a different market? The reason I ask is can you start phasing into that slowly now? Would the place you work for now be willing to sell you equipment they don't use or perhaps an old piece of equipment when they upgrade?

I started out with everything I needed to climb and a dump trailer to haul away brush, an AirKnife and compressor. Also had to buy a pickup to pull it around. Total start up was somewhere around $20K. Most of that came from savings. I did borrow some, but paid it off in less than 2 years...kinda think maybe I shouldn't have, but it didn't kill the business, so not a huge regret - just something I wouldn't do again. I would have liked to start out with more pest control capabilities, but what would I have dropped? Maybe the AirKnife stuff. That gets underused, but I think it is a great tool so I don't regret that...just thinking maybe I should have switched order of purchase getting a sprayer first.

Marketing was word of mouth, website, and paying too much for phonebook (still do that...not worth what they charge, but gotta be in the book I guess, so I just take out a small ad in each of them).

If you have a solid 2 year plan, start saving HARD now and look for great buys on equipment. You don't need it yet, so don't buy it unless you feel like you are stealing it.

Dang!,,,you fed the troll,,,hope he don't get email alerts!
Jeff

 

[theciscokid]

Dang!,,,you fed the troll,,,hope he don't get email alerts!
Jeff

I might be the most boring troll of all time then.

 

[Magnum783]

Although I don't run a large service my recommendation is more just a blanket business statement. Purchase and have things that are super versatile things that can do many jobs although they may not be the absolute best they are suitable and quality and can get the job done.
Also don't try to get every job pick a specialty type work you want to do become good at it. Just my opinion.

 

[CanopyGorilla]

Start with all the climbing and rigging gear...... and a knowledge of how to use it. If you show up on time, sell good work, do good pruning, don't crush anything on removals, you will gain loyal customers who enjoy watching you grow and succeed.

 

[tree MDS]

Yeah,, don't forget to low ball everything into the dirt either. Working on volume is good. It may take a while, but eventually they'll all fold. Then you can really jack up the prices!!

 

[tree MDS]

Besides, it's good for people to see your trucks out there...

 

[mckeetree]

Yeah,, don't forget to low ball everything into the dirt either. Working on volume is good. It may take a while, but eventually they'll all fold. Then you can really jack up the prices!!

Yep. Good advice. That's old school stuff right there. Basically, after being in this industry for 40 years now the best advice I can give some new guy starting out is don't worry what you are making on individual jobs...just low ball the hell out of them and get'um. Think volume.

 

[Pelorus]

Volume is the key!
I've been running a lowball not-for- profit tree business for years, and it's awesome!!!
Why pay Income Tax to Uncle Sam (Obongo) or Uncle Justin (pretty boy Trudeau) when you can teeter on the razor edge of prosperity / poverty.

 

[jefflovstrom]

 

[tree MDS]

 

[mckeetree]

Volume is the key!
I've been running a lowball not-for- profit tree business for years, and it's awesome!!!
Why pay Income Tax to Uncle Sam (Obongo) or Uncle Justin (pretty boy Trudeau) when you can teeter on the razor edge of prosperity / poverty.

You damn right it's freakin awesome ice sickle. There is nothing, and I mean nothing, quite as exhilarating as being right on the edge of being a damn poster boy for poverty while occasionally lightly flirting with prosperity...just flirting with it now...a touch here a feel there...but nothing you would ever need a condom for.

 

[jefflovstrom]

You should move to San Diego,,
but I hope you don't,,
Jeff

 

[mckeetree]

You should move to San Diego,,
but I hope you don't,,
Jeff

I won't. Two years and ten months and this shack is paid for. If I sold out it wouldn't buy me much in San Diego.

 

[Crusherclaw]

If the company your working for offers to help with certs especially plant health care take advantage of that. As I get older it sure would be nice to take a day a week and go spray and or fert some trees . Not to mention the profit in that end of the bizz .

 

[Treeman317]

I've been working in the tree biz for the last 4 years, and climbing full-time for the last 3. In a few years, I am planning on going out on my own. I know every tree service has a different story, so I am curious to hear some of them. I had a few questions for those who took the plunge and started their own company.

1. What were start your up costs?
Few thousand dollars

2. What did you start out with for equipment?
Rope borrowed climbing gear rigging blocks ports wrap and other basic necessities. I'd say $4-5k in climbing and rigging gear
3. Was your business financed?
No cash out of my pocket the little cash I had
4. Which marketing/advertising methods did you use?
Lead service and word of mouth
5. If you could go back, what would you do differently?

Got a damn lease on a chipper and truck from day 1 instead I rented a dump trailer with no sides at 100/day and we made several trips. Did this for months...bought a chip truck jobs got bigger...then started renting chippers and skid steers

 

[mikewhite85]

I started my first business with a beat up dodge dakota and poulan pro!!! I wouldn't recommend it! I was a grad student and had very little money.

Things started to go smooth after I bought an old ford dump truck and bandit model 90. Pay cash for relatively cheap stuff and work your way up to the bigger stuff. Don't finance a brand new vermeer bc2000 off the start!!

If you look hard, are patient, and have some mechanical skills you can get a truck and chipper for 10k. I bought my first dump truck for 1800 bucks and it lasted 3-4 years! It was a Ford Superduty from the first year they made 7.3's. The chipper was around 7k and it only had 150 hours when I bought it. I basically stole it for that price. I never upgraded the chipper though I wished I had a bigger one during crane jobs and big removals. That said, when you start out you don't need anything too big. DO NOT buy a vermeer 6" though. I'd rather stack a trailer full of brush. I wish I could find one of those chipper dump box combo trailers for cheap. If I could go back I'd start with one of those and an f350 pickup!

Your saws, rigging and climbing gear, and ropes you probably have already. I don't think you'll need an airspade right away. Buy your saws new or lightly used, especially the topper saws.

Get a website and make a yelp and angies list page.

Also, the hard part in starting out is that if you're going to have employees you need worker's comp. You'll also need your proper licensing. And becoming a certified arborist helps too.

 

[mikewhite85]

I started my first business with a beat up dodge dakota and poulan pro!!! I wouldn't recommend it! I was a grad student and had very little money.

Things started to go smooth after I bought an old ford dump truck and bandit model 90. Pay cash for relatively cheap stuff and work your way up to the bigger stuff. Don't finance a brand new vermeer bc2000 off the start!!

If you look hard, are patient, and have some mechanical skills you can get a truck and chipper for 10k. I bought my first dump truck for 1800 bucks and it lasted 3-4 years! It was a Ford Superduty from the first year they made 7.3's. The chipper was around 7k and it only had 150 hours when I bought it. I basically stole it for that price. I never upgraded the chipper though I wished I had a bigger one during crane jobs and big removals. That said, when you start out you don't need anything too big. DO NOT buy a vermeer 6" though. I'd rather stack a trailer full of brush. I wish I could find one of those chipper dump box combo trailers for cheap. If I could go back I'd start with one of those and an f350 pickup!

Your saws, rigging and climbing gear, and ropes you probably have already. I don't think you'll need an airspade right away. Buy your saws new or lightly used, especially the topper saws.

Get a website and make a yelp and angies list page.

Also, the hard part in starting out is that if you're going to have employees you need worker's comp. You'll also need your proper licensing. And becoming a certified arborist helps too.

Oh an the other thing is, it can be stressful!!

I sold my business Dec 31, 2014. But if I wasn't going to sell it and do another career I would have done a one man arborist consulting, Pesticide applicator, and stump grinding business. It would have been easy to build that off of my existing clientele. Employees and insurance add a lot of stress.

 

[JeffGu]

Yeah, anytime you can build a small business with family members, you can avoid the Work Comp headaches... that's the way to go if you aren't terribly greedy or needy. Going big means bigger money, but it also means bigger headaches, stress, and bills. I saw Warren Buffet give a talk up in Omaha years ago, and one of the questions somebody asked, was if he could do it all over again, what he would do. He never hesitated a second... he said he wouldn't. He'd start a small, low-stress business with just family members and keep it that way. He said people that make $40K a year are usually happier and healthier than the ones that are worth $40 million. I thought it was the most sensible thing Warren Buffet has ever said.