Starting a small tree business

[Naptown]

Any advice for someone who may want to start a small tree business? I'm considering a career change and wanted to look into doing light tree work. I'm mid 40s and don't mind working hard. It wouldn't be a full time job but I think I could stay busy with small jobs. Probably more like a small handy man business that does light tree work. I have property where I can haul trees and burn/process wood into firewood. Delivering firewood would be part of the equation too. I'm thinking I would like to buy a stump grinder (~$5-7k) and be able to offer that service. I have a 12ft utility trailer already and hope to buy a tractor with a loader (or potentially a skid loader). We own 10 acres of land that we hope to build on in the next couple of years. I'll need a tractor or skid steer to aid in the build/maintain gravel driveway/etc...

Did you form a LLC or a corporation? Why? Do you need an accountant for things like taxes? How expensive is insurance? I'm guessing there are different type of insurance and you get what you pay for. My target market is in my neighborhood where we have ~20 year fruit trees that were planted in peoples front yards and they are dying/getting too big. I'm not a climber nor do I intend on climbing (pretty sure that is a difference for insurance). I would eventually like to purchase a vehicle for the business. I was hoping to get this going and let the business absorb things like a monthly cell phone bill and internet.

Just thought I would reach out and see if anyone has advice. Things you would do the same and things you would do differently. Not that it matters, but I have a business degree and I have experience running a business with about 50 employees. I enjoy running and maintaining chainsaws. I'm very much a DIYer. Thanks in advance!

 

[cookies]

Do a couple smaller jobs using rental equipment before you make the decision to jump in. If you like it then go work for a private company or two for a while to learn the methods and skills to do the work safely and efficiently and their estimate numbers and how their calculated.

 

[ATH]

What are you thinking you'll do? Just the fruit tree removals?

What makes you think you are able to do what you have in mind?

A 12' utility trailer fills up REAL quick with fruit trees. We haul brush almost always in a dump trailer, but we don't do many removals. Part of that is ability to move lots of wood efficiently...part of that is that we have found a good niche pruning and let others do the removals.

Are you allowed to burn? Every state will be different. My understanding in Ohio is that agricultural burning has exceptions for materials that are burned on the property where it grows. That doesn't allow for bringing material onto a property to burn it. We have a good place to dump brush. It used to be free...but people were dumping trash, so they started charginging, $12, then $15, $17, $20....and $25 per load this year.

I formed an LLC.

Talk to an attorney, accountant, and insurance agent...in no particular order. If you know one who you can trust, ask them who they like for the others.

 

[AnniesDad]

Research your costs for everything you can think of now for the size of your intended market. Equipment, maintenance, insurance, license, replacement costs on the equipment, advertising. This will help you figure out your base rates.
Costs of new toys for your target market. Heck a good pole saw is going to need new blades for a low side example.
Be very mindful that there is always a bigger, better cool tool that is available at a bigger, better cost.
Basically learn about your overhead, both figuratively and literally.
Fruit trees? Could you market the trunks limbs in your area? Hobbiest wood workers for turning, limb wood for grilling smokers or ? Firewood at the very least. Gonna need a wood splitter. Maybe cut some slabs with a Alaskan mill. Rent/buy a chipper for selling mulch. Easier to move a lot of brush and creates a product vs just waste.
LLC would suffice to protect you from basic lawsuits. You might want lawyer help for your wording on your contracts. You may need an account to help guide you with your tax liabilities and ever changing deductions. Yup. More overhead.
How much time and money do you want to dedicate to this new venture is up to you.
How much maintenance on all needed stuff are you set up to do. Warm building and a bunch of tools?
How many others are offering the same target work you are thinking in your area? How much do they charge? How will you have a leg up on them?
Lots of unforeseen costs plus after all those costs what would you like to take home after taxes?
Oh and IF you are thinking about some sort of loader I would suggest a articulated machine. Skid steers tear up lawns and tractors aren’t overly maneuverable.

 

[AnniesDad]

I should add that after all it is a career with many, many, many different branches.
IF done with proper due diligence up front, money DOES grow on trees!