Another business idea for all those who want to seek higher returns with minimal costs. Yes, we aren’t kidding or misleading you with a fake business idea. We have real news for you. A tree removal service is a business that can be started with a little amount of capital and a skilled workforce.
As this venture is not affected by seasonal changes or market fluctuations, you can be sure that you will be in business all the time of the year. You can start it anywhere in the United States, provided there are trees in that region.
Why is tree removal service a good business idea?
- You save lives and other mishaps occurring to people. Damaged trees are a nuisance. It could be due to wind, lighting, and other seasonal factors, or simply that the tree has got old. People’s lives and buildings are at considerable risk. To avoid any loss, it is advisable to approach a tree removal service. You can come to the rescue of such people and help them from dangers.
- A tree removal service is always in demand. Rain could be a more valid reason to be in business, but you always need to be on your heels. Moreover, you can find trees all over the country. This business venture is not region-specific, and so, you can start it anywhere.
Tree removal services do not only mean uprooting the tree from the ground. It involves various intricate tasks such as tree trimming, pruning, cutting away unwanted tree parts, fertilization, and removal of trees. The demand for such removal services has been continuously rising because of the increase in disposable incomes and more construction activities carried out in urban and semi-urban areas. People prefer to approach such services and spend money on them instead of bearing all the consequences.
This industry is in the mature phase and undergoes several changes, though all are favored towards its growth and expansion. The growth rate of the tree removal industry is at 3.4 percent every year. In the last decade up to 2021, the employment rate in the tree removal industry has been at an annual rate of 2.2 percent.
This component of the business plan provides you a brief idea about the business venture. As the concerned person at the financial institution or an investor checks this section at first glance, he should know what this business is about.
- Name – It should be unique, precise, and must be easy to remember.
- Location- Though you won’t have a physical space, you are free to use your home address as well. You will need a small space to store all the equipment necessary for tree removal, but you certainly don’t have to lease a front office to attract clients. It can be done indirectly.
- The corporation needs to be registered and licensed as per the state laws.
- You need to be brief about the services you can provide to your clients.
- Add the values that you want to impart to the organization. You can even include the unique selling points of your business to prove that you are a reliable business entity.
- Details of owners such as names, addresses, and their expertise levels in connection with the tree removal services. If you do not have any experience in the field, you can mention the overall experience if you have any thoughts about the specific business idea.
Services you can offer
- Tree removal (the entire part).
- Tree trimming and maintenance.
- Pruning of tree branches.
- Inspection of the building that is affected by trees.
- Cutting extra parts of unwanted parts of the trees.
Corporation Vision – “To become the Number one tree removal service in the city and expand the services to other parts of the United States, thereby creating a chain of tree removal services in the country.”
Corporation Mission – “To become the best business in the tree removal industry and provide timely, efficient and reliable services to the customers in the specific part of the country.”
Your Business Structure
If you haven’t thought of business structure and the job positions needed in your venture, this is the time to give a brief thought to it.
- The Owner or the CEO – He is the one who initiated this business venture, and he knows how to take the same ahead. In the absence of a proper HR Manager, he looks after the staff recruitment to keep a close tab on the same.
- Accountant – A tree removal service is availed by several clients, and their accounting tasks need to be taken care of by a certified and qualified accountant.
- Manual staff – They are the persons who are in-person involved in tree maintenance, removal, and cutting down. They need to be super-skilled as they provide the desired level of efficiency to your projects.
- Client Support Executive and Marketing Professional – Though it seems to be an average tree removal service, you need a person to take care of the marketing activities and tap clients. Moreover, you need to provide customer support to help clients understand how their projects will be handled.
- S – Strengths – Skilled services, workforce, and high values and ethics are some of the strengths that you can really utilize.
- W – Weaknesses – It takes funds to purchase all the tree removal equipment and find the first few clients.
- O– Opportunities – Monopoly in the area is a good opportunity to tap. Moreover, you can be free to serve the clients that you want and retain them in the future.
- T – Threats – More tree removal businesses in the same is the biggest threat one can see. Moreover, any new government law or any change can also be detrimental to business growth.
- The rising number of buildings and households is the reason why tree removal services are required.
- Moreover, as people have disposable incomes in their hands, they prefer convenience over consequences. You will be called to trim a tree as they have money to spend on your valuable services.
- Commercial premises such as financial and private undertakings.
- Huge shipping complexes and malls.
- Households but those situated in villas and bungalows.
- Families but those living in buildings. They might not call you as individuals, but the whole building might require your services.
- Households having gardens, yards, and lawns.
- Government undertakings.
- Garden owners, park owners, and ground owners.
Advertising, marketing, and sales plans
- Online medium of advertising – It can include setting up your web portal, ad campaigns, and social media usage.
- Offline advertising mediums – These include newspapers, magazines, billboards, flyers, and brochures, etc.
- You need to make your future customers aware of the importance of tree removal services. Hence, setting up seminars and talks at suitable places and inviting prospective clients to the same is a good idea.
For a newly setup tree removal business, you can set a sales revenue figure of $100,000 and go with it. Often, business owners fix this sales revenue figure at a much higher value or at a lower one. You do not have to underestimate your abilities since this business is in demand throughout the year. Moreover, you cannot over-expect your business to grow exponentially from the first day itself.
Hence, keeping a minimal value for the first year is reasonable. You can go a little overboard in the second year as you know your clients and are stable. Plus, you know the market very well and the different ways of expanding your business to other cities.
Tree removal charges need to be reasonable. But this does not imply you have to keep them lower than your rivals to get more clients. On the other hand, lower prices might also infer the lower quality of your services. Hence, just try to keep those prices reasonable and not low or high.
Pricing also helps you set sales goals. Therefore, your prices should be such that they help in achieving sales objectives and not intervene with the same.
We suggest setting an estimate of $50000-$75000 as of the startup expenditure. Break-up of costs is much needed in this section as the mere setting of the figure is misleading for you and your investors as well. As we mentioned, a physical setup is not mandatory, but think about the places where you can park your equipment and tools required for tree removal services.
You can borrow the said amount from a financial institution, but don’t forget to negotiate the interest rate with the bank authorities. Business partners can also pour into the finances.
We hope this tree removal business plan sample is of help to you.