How Big?

[chucknduck]

I'm just starting out a tree service, and was wondering how big of a town do you need to support a 3-5 man operation. I live in a town of about 14 thousand, with no tree services in that town, only in neighboring towns(35 miles away).

 

[Canyonbc]

If you are good at what you do...

References.

 

[OLD CHIPMONK]

Build a reputation beyong reproach and those living 35 miles away will be calling. All you need is 1,000 new customers. Start advertising locally: newspapers, truck lettering and get out plenty of business cards. Post them at laundrymatts, stores ,bowling alleys & bars. Church bulletins are great. When you do get hired SHOW UP ON TIME , DO EXACTLY WHAT YOU AGREED TO DO, BE PREPARED TO GO THE EXTRA MILE , DON'T CUSS , BE CURTIOUS AND ABOVE ALL ELSE DO A GREAT CLEAN-UP. LAST BUT NOT LEAST GET THE CHECK !!!!!! GOOD LUCK TO YOU & YOURS.

P.S.- AFTER SOME CAREFUL CALCULATIONS & A 300 DAY A YEAR WORK SCHEDULE YOU NOW NEED MORE WORKERS IN ORDER TO GET 3 & 1/3
JOBS A DAY COMPLETED. ( I,000 NEW CUSTOMERS divided by 300 DAYS ) :jawdrop:

 

[Canyonbc]

OLD CHIPMUNK

Nicely put...

i have nothing else really to say...

but want to emphasise again

BEING ON TIME
Finished product - cleaning up

i think those two things...even as small as they are....they can make all the difference in a customer asking you to come back for A. more work B. passing on your number

 

[OLD CHIPMONK]

DON'T FORGET 1,000 CUSTOMERS @ $ 200.00 EACH THATS' ONLY



$ 200,000 ANNUALY


:jawdrop:

 

[chucknduck]

Is $200,000 a lot for a small tree co to gross in a year?

 

[Canyonbc]

Are you looking to run solo...or employees?

Never mind i just read the top

 

[daveyclimber]

I would say 200k is a decent years take. I made 143k my first year in business with my biz partner and myself. Economy turned south this year, I doubt we will even make that this year.

 

[Canyonbc]

How much equipment do you have right now?...How much money do you have to purchase things you dont have?

 

[chucknduck]

How much equipment do you have right now?...How much money do you have to purchase things you dont have?

I plan on having at least 2 employees. Right now I have saws,climbing gear, 1970's asplundh chipper, 2000 T444E 55foot altec forestry truck, and insurance! I am a senior in college, and have been working all summer and every weekend so far, with a crew of two. I have been busy, but I know that business slows down during certain parts of the year, so I wasn't sure if it would dry up in a town this small.

 

[Canyonbc]

Wow you have a nice selection of equipment for being a senior in college. I think your definetly have a solid base.

I think you can definetly succeed right along in your town.

Best of luck,

How long have you been in the industry, climbing and doing tree work???
Just wondering? Cool to see a senior in college moving on to a whole business ....i am a sophmore at Sonoma State, in Northern California

 

[chucknduck]

Wow you have a nice selection of equipment for being a senior in college. I think your definetly have a solid base.

I think you can definetly succeed right along in your town.

Best of luck,

How long have you been in the industry, climbing and doing tree work???
Just wondering? Cool to see a senior in college moving on to a whole business ....i am a sophmore at Sonoma State, in Northern California

I have done a little tree work off and on since high school, but have gotten serious about it this january.

 

[Canyonbc]

Thats awesome

i started a small brush clearing...when i was a junior high school...and now i have moved into trees...and excelling as fast as i can...which isnt that fast...being a full time student...

Good luck

 

[Aaction]

With 3 full time workers, including yourself, and that much equipment, I reckon you should do $360k plus a year. It may take time to buid up to that.
Good luck!

 

[chucknduck]

360 K sounds like a lot of money. How much of that will I take home after paying decent wages to three people ,and fuel, equipment costs, etc. My equipment is in great condition right now,so, I don;t think I will have any major expenses.

 

[Aaction]

That's about what you should earn in Sydney. Based on 3 workers charged at $500 per day each, i.e. $1500 per day. $7500 per week times 48 weeks. I don't know how prices go over there, but here you would do that easily with bucket truck and chipper, provided you got enough work.
Although your equipment is good, it still requires maintenance and certification and you should budget for eventual replacement.
If you don't yet have a stump grinder, you will need to budget for one if you intend to do much removal work.
As regards your profit, the following estimates would apply here.

Wages and on costs 3 men (inc you) $180k
Fuel $ 50k
Repairs and maint $ 10k
Accounting, advertising, phone etc $ 20k
Miscellaneous expenses $ 10k

Total expenses $270k

Profit to your company before tax $ 90k

NOTE; These figures apply to a business in Sydney Australia and may not apply in your area of the US

Good luck with it!

 

[Aaction]

Chuck N Duck, what do you thihk of the figures I posted?

 

[chucknduck]

50 k for fuel! wow Fuel is about $3 a gallon here. IT must be be high over there!

 

[Aaction]

Diesel fuel is about $1.37 per litre here, $5 US gallon. Petrol (gasoline) $1.20,
about $4.50 US.
What we average is Chip truck $50 per day, Chipper $50 per day, bucket truck $50 per day, small truck $30 per day, two stroke and stump machine $20 per day. Total average $200 per day, $1k per week. This can vary greatly, but is average for us over a year.

With the maintenance costs, I allow for saw parts, chipper blades etc as well as vehicle maint.
Miscellaneous can include permits and licencing, some repairs to damage, the odd fence or damaged turf, work clothing and a lot of things you don't readily think of.
I hope I'm not too far off the track.
Cheers.