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Tree removal invoice example for Logistics

how to start a tree triming business and make $48,000 a year there's a massive need for this type of business because quite frankly there's not enough contractors out there and there are tons of houses that are getting older and those trees that were event that were starting out as Twigs have turned into big massive trees that are overhanging houses a lot of insurance companies are requiring homeowners to trim those trees in order to keep their policy in force so you can take advantage of that by creating this business and on the commercial side there's tons of properties out there that will also pay for you to remove trees next to the commercial building so massive need in this business and you can make a ton of money my name is Nate Jones I make videos on how to start businesses reviewing franchises and reviewing how you can really scale and grow your business so if you really like that type of content hit like And subscribe okay so we're going to go into how much it can Co how much does it cost to start this business you want you want to get into this but what are The Upfront costs well you're going to need a commercial bucket truck which you can get a used one for about $50,000 maybe less but we're not going to want something that's so beat up and old that it's going to cause US problems so 50,000 is probably a good budget for that you're going to need a wood chipping trailer um and the commercial bucket truck you could potentially you might have to have two different trucks like I mentioned before maybe one that's collecting the wood chips and one that's going to have a bucket on it but again the total budget for that probably is good to be about $50,000 a wood chipping trailer is going to be about $30,000 if you get one used obviously new ones can be over $100,000 but you know when you're starting out you want to get used equipment just to get to profitability very quickly uh you're going to need chainsaws equipment tools about $10,000 for that for a website informing your LLC is going to be about $500 in your insurance cost is going to be about $2,500 to $5,000 so your startup cost is going to be anywhere from $93,000 to $100,000 to start this business I know that's kind of depressing thinking of all the costs but let's lift you up and talk about all the things that you can make and how much you can cash flow in this business the average cost for tree service is $750 for resident Residential Properties and then about $1,000 for commercial properties obviously there's massive jobs in which you could make 2 to 3,000 even $4,000 triming trees but I'm just talking about for your average call how much are we making so it's about 750 for residential 1,000 for commercial your profit margin is going to be around 35% because you should be charging in this business about 50% over your labor cost to really be making money because you know if you're going to be out there and you're going to be out there in the Heat or the cold trimming trees chipping things potentially getting hurt we're going to want to make sure that we're making money doing this business so about 50% profit margin plus 15% to cover cost of equipment gasoline and fix fixing things so you're really at a 35% profit margin your average time per job is going to be about 3 to 4 hours your average job per week the number of jobs that you can have per week I would say if you're really hitting it you could do 10 total jobs six residential for commercial so 6 at 750 4 at 1,000 puts us at 8,500 a week that we're making 34,000 a month $48,000 a year trimming trees that's our gross revenue so let's back into what we're profiting because our profit margin is 35% so we take 35% times the $ 34,000 a month puts us at 12,000 a month profit the yearly profit is $142,000 a year now from that 142 I really think you can really scale that and grow that and and then start having multiple Crews but 142 that first you're calculating in those upfront costs I think you're really doing a great job um with this business making over six figures a year trimming trees um and I I think you could probably do more if we kind of lift up some of those commercial jobs and the residential costs but I really want to be conservative with how much you can make in this business um the positives of this business it's very profitable you know what your costs are and you should know what you want to charge how much you're going to want to make off each job um number two it's always needed Contracting trade tree trimming all the other trades concrete Excavating it's always going to be needed um there's never enough contractors in my opinion right now and if you started a tree trimming business it's only a matter of time before you would have more work than you have time available so it's always going to be needed you're always going to have jobs to do the next thing we need to do if you want to be successful in this business and in any business we need to think of ways in which it will fail before we start it because a lot of people they hop into businesses and they get really carried away they get really excited and then something happens that they didn't think about and they were like man I wish I would have done this this would have helped me out well those things are things we need to think about before we start our business and the first thing is jobs we need to make sure that when we start this business that we need to have jobs ready to go we need to have a marketing plan and a sales plan the most important thing in any business is the sales if you don't have any jobs you can't make any money doesn't matter how organized you are how great your system is whatever you have to have sales and the best way to do that is to network with home build Builders um custom home builders in order to put that home on that custom lot they're going to need to remove some trees so I really think with home builders custom home builders you could really get a flow business coming in um commercial Builders same thing when they're clearing land they need somebody to trim the trees um investors who are buying houses that need to be flipped a lot of those houses have been over the trees have been overgrown so they need you to clear out that brush clear out those trees um creating a website is going to be really good if you have some localized SEO which is search engine optimization which means that when somebody searches tree trimming near me your business pops up on Google and it pops up on the links below the businesses in Google so really learn how to do that I think you can learn how to do it yourself you could probably pay somebody to do it but I would really say if you really think about it and you know how to operate a computer you could really learn how to do SEO yourself the second thing is marketing localized marketing if you want to put some yard signs out maybe sponsor some t-ball leagues but just getting your name out there and then also potentially if you don't have any work go door to door and knock and and start driving around on people who have trees that are overhanging on their house and say hey have you thought about trimming that tree you know you could do so much by just driving around looking for opportunities and you will get them if you put in the effort so many people they don't want to put an effort in the business and then they're not going to grow their business okay the next thing is we need to have great quality we need to learn how to trim trees in which it doesn't damage customer property we you know how to trim trees where it looks good that trees is going to continue to stay alive after you treat it or after you trimmed it so make sure that if you don't know how to do that see if you can job shadow somebody locally and if they're not cool with you doing that see if you can jop Shadow somebody else for a week in another city because you're not competition to them okay and say hey I'll work for free I just want to jop Shadow you ask you questions throughout this or if you have some Deployable cash you could probably take a class somewhere in the nation if you Google tree triming class you could probably go spend a week somewhere and learn from some of the best depends on what you want to do but you need to have great quality so you can stay in business cuz you know the marketing gets you started in business but the quality will either take you out or leave you in business then your next next thing you need to you need to show up on time if you say you're going to be there Monday at 9:00 a.m. to trim their trees you better be there at 9:00 a.m. on Monday or else the homeowner or the commercial client is going to be nervous that you're not going to show up at all and if you have a bad reputation of doing that then that will put you out of business you need to also think about ways in which you're going to be able to hire employees because you're going to need employees in this business um so you need to think how can I get people to work for me um what am I going to be able to pay them and um how am I going to make sure that I have a crop of employees always coming in because you're going to have people come in leave the same day is a hard work business so you need to make sure that you have a good feeder system in which you're going to find people to work for you a lot of people don't think about that and they start complaining I can't find good employees you can't find good employees because you never had a strategy to find good employees there are good people out there you just have to find them if you don't believe there's good people out there then that's a loser mentality and you should probably not go into business before you even start okay there are good employees if you just put your head down and you work just like everything else in your business you will find success next thing we need to do to ensure that our business is operating safely is that we need to create an LLC buy insurance and have a customer agreement work with the local CPA local insurance agent and a local attorney to draft these documents the customer agreement is basically holding you and the customer accountable for them paying you for your services and that potentially there could be some issues if something happens where that document is looked at in court of law to make sure that the proper channels of who's responsible is paying for that same thing for the insurance make sure you're with a exper experienced insurance agent that works with tree triming companies and make sure you have a great CPA because you're going to want to make sure that you are appropriate with your taxes so if you got value out of today's video or if you want to start this business comment below hey I'm ready to start this business I'm be happy to see that and give you the best of luck in starting your business um go check out some of my other videos if this business isn't for you I have tons of videos reviewing other businesses I'll be happy to help you out um hit like And subscribe thank you