How did you grow your business?

[fastbub]

I would love to hear your stories or advice on growing your business. I am a sole prop. I have a friend that helps me out with groundwork when needed, so I am like a 1.5 man show right now. I own my equip. ( I do have a truck note) I have a 6" chipper, saws, rigging gear, a grinder etc. I can do jobs soup to nuts. I carry insurance and I am part time (2-3 days a week) I am booked a few weeks in advance all the time (keep in mind 2 days a week only) I have enough marketing to keep me busy the way I am.

I am frustrated with having to turn down the larger jobs requiring more equip.

I am really interested in how any of you went from my situation to a full time operation with 2 other employees or so. What did you do for equip? How did you finance the growth? Etc. I am a new home owner, married two years now and have a full-time job that is so-so. The tree work has been a nice supplement to our income. The bennys are through my wife's job. Ok enough about me, what are your stories?

 

[tree md]

I climbed for someone else for about 3 years and eventually ran my own crew and had my own region. I had a riff with the guy I worked for and spent all the money I had in the bank at the time on equipment. I made around $2000 that first day and never looked back. I eventually reconciled with my old boss and continued to contract with him. Back then (mid 90's) I was young and it was feast or famine for me. I would work pretty well on my own through the Summer months but would slow down in the Fall and Winter. When I would slow down I would work as a climber for some of the larger tree services in my area which was great experience for me. I learned more advanced climbing techniques and also learned how to work off a crane. I sometimes wish I would have worked longer with the larger tree services to learn more from some of the excellent climbers I worked with. When your on your own there is no one to teach you advanced climbing techniques. You have to read and learn from books and sites like this. Anyway, I'm having my best year to date this year. Have to leave here in a few to look at 3 jobs and have 3 more to look at tomorrow. Out of the 6 jobs I have to bid 4 are from word of mouth referrals and 2 are from ads I have out. I used to do flyers and canvas neighborhoods but I haven't had to do that for awhile. I sell myself as a quality tree service and not a discount service. I try to do a good job for people, clean up well and leave everything as I found it (except the trees of course). I have a couple of ads out that have been rocking for me but I would estimate 75% of my work comes from word of mouth. I also have a yellow page ad coming out next year but I still think word of mouth is the best advertising. Do a good job for people and they will recommend you as well as give you repeat business.

 

[fastbub]

I climbed for someone else for about 3 years and eventually ran my own crew and had my own region. I had a riff with the guy I worked for and spent all the money I had in the bank at the time on equipment. I made around $2000 that first day and never looked back. I eventually reconciled with my old boss and continued to contract with him. Back then (mid 90's) I was young and it was feast or famine for me. I would work pretty well on my own through the Summer months but would slow down in the Fall and Winter. When I would slow down I would work as a climber for some of the larger tree services in my area which was great experience for me. I learned more advanced climbing techniques and also learned how to work off a crane. I sometimes wish I would have worked longer with the larger tree services to learn more from some of the excellent climbers I worked with. When your on your own there is no one to teach you advanced climbing techniques. You have to read and learn from books and sites like this. Anyway, I'm having my best year to date this year. Have to leave here in a few to look at 3 jobs and have 3 more to look at tomorrow. Out of the 6 jobs I have to bid 4 are from word of mouth referrals and 2 are from ads I have out. I used to do flyers and canvas neighborhoods but I haven't had to do that for awhile. I sell myself as a quality tree service and not a discount service. I try to do a good job for people, clean up well and leave everything as I found it (except the trees of course). I have a couple of ads out that have been rocking for me but I would estimate 75% of my work comes from word of mouth. I also have a yellow page ad coming out next year but I still think word of mouth is the best advertising. Do a good job for people and they will recommend you as well as give you repeat business.

Thanks for the response! If you don't mind, how many employees do you have? What equipment do you use? Financed or paid for? Do you have health ins. for your guys? I just feel like I am sitting on the fence right now. Always with a little more to do than I can handle, but not consistent enough to warrant quitting my job. (Too many responsibilities.) Right now I have great word of mouth and like you, I do quality work, not discount. I just know that when I work with only two guys, we are too fast for the equipment (chipper and truck capacity) and I would need an upgrade in order to increase production. I need bigger truck, chipper, and another guy but I am a little leary of jumping off that cliff.

 

[tree md]

I would recommend that you hang on to your day job through the Winter. Tree jobs can get hard to come by through the Holidays. I would suggest that you wait until the Spring if you really want to go for it. Only you can decide if your good enough to make a living at it. I have enough equipment and enough guys to do anything out there. I do commercial jobs, crane work, all the way down to kitty cat rescue. I have done this stuff nearly my entire adult life.

Keep your job through the Winter for the wife and kids sake and see what you can do in the Spring. Best of luck to you!

 

[FARMBOSS]

re

These worked for me,
#1 Honesty, Good work, and a fair price
#2 Don't be afraid to take risks, thats what running a business is all about, don't ever try to expand too much too fast, as long as your work quality isn't affected you should be ok.
#3 Blood, sweat, and tears,
#4 Do your taxes right, and don't lose sleep at night.
#5 Know the difference between an asset and a liability

I have used these 5 phrases as a rule of thumb since day 1, and In just shy of 2 years on my own at 21 years old, I had 5 employees on payroll at 1 time, now it is me and 1 guy on crew, and 1 secretary, for me it is the most profitable for now, least stress, and the 2 of us are averaging 5k per week going into the winter, I scheduled oak trims for the winter all year long so we shouldnt get slow, Good Luck, tree works addicting, challenging, and rewarding, never be discouraged by bad days, they happen, the good will outweigh the bad in the end

 

[reachtreeservi]

I would recommend that you hang on to your day job through the Winter. Tree jobs can get hard to come by through the Holidays. I would suggest that you wait until the Spring if you really want to go for it. Only you can decide if your good enough to make a living at it. I have enough equipment and enough guys to do anything out there. I do commercial jobs, crane work, all the way down to kitty cat rescue. I have done this stuff nearly my entire adult life.

Keep your job through the Winter for the wife and kids sake and see what you can do in the Spring. Best of luck to you!

+ 10
Definitely keep the day job for the winter. And probably till you pay the truck note off also. The first full time years can be very lean at times. I worked for years part time and put 90% of what I made back into the company. My wife said it was the most dangerous and expensive hobby she had ever seen.

I think low debt and constant equipment upgrade , continual learning about the climbing and rigging side of things and word of mouth advertising are the keys. You'll know when It's time to go full time, and it'll probably be longer than you think.

It take years to grow an oak, but only a few weeks to grow a summer squash. And You can't build a house with a summer squash. Good luck to you !

 

[fastbub]

+ 10
My wife said it was the most dangerous and expensive hobby she had ever seen.

:

Mine too!

 

[extremewoodwork]

Going full time

Hey fast bub you only live once so take a chance. Find out when the next yellow pages actually come out and three months before that buy a radio ad on some talk radio station not a music station. When the yellow pages come out people will have heard your ad now they will see it in print and you already have good word of mouth. You will be busy. Third thing buy a bigger chipper you get paid the same but actual time on the job is cut by three.

 

[ronnyb]

Add to Farmboss' advice

Excellent advice from FarmBoss. From my experience owning my own business you also need to make time for yourself and your family. I know that you will have lots riding on your venture, and tend to push yourself to be successful, but you can't forget who you are doing this for.

 

[ropensaddle]

Take out the competition!


























Just kiddin :monkey::angel:

 

[Ironxylem]

Hey fast bub you only live once so take a chance. Find out when the next yellow pages actually come out and three months before that buy a radio ad on some talk radio station not a music station. When the yellow pages come out people will have heard your ad now they will see it in print and you already have good word of mouth. You will be busy. Third thing buy a bigger chipper you get paid the same but actual time on the job is cut by three.

I can't tell you how important the Yellow Pages are. If you want to grow you need to be there.A display ad is expensive, but a must.

Also, listen to people, doesn't matter about what. People just want someone who will stop and listen to them...It does wonders.

Cheers:computer:

 

[Ritchie]

Do every thing right.

Our company has been in buisness for 21 years and we have seen our largest growth in the last 5 years. So the words it does not happen over night really are true. In the summers we might employ up to 30 or so people.

The first thing I would say to you is do job perfect and treat all your customers like they are your only one. Then charge accordingly! That is the biggest problem in this buisness and why companys don't grow. Theyvare too cheap.

After that this is what you need:
The right people - Not just a yoyo to fill some boots.
Equipment- see a need, fill a need. (bye what you think you can afford)

And for the love of God letter your trucks! We spend 75 grand a year in advertising and people seeing our trucks is still our best ads.


Good Luck