How to start a tree surgery business

Your customers will anticipate an honest evaluation of the work required and seek expert advice on the most suitable course of action. In cases where local authority permissions are necessary due to protected trees, they may rely on you to navigate the bureaucratic aspects. Once the project commences, clients will expect a meticulous and professional approach, addressing any unforeseen challenges while prioritizing safety at all times.

Upon project completion, your responsibility extends to the thorough cleanup of any removed branches and felled trees, as well as the removal of any remaining debris. Clients might request either the complete removal of all materials or the chipping of some for garden mulch, with larger logs prepared for firewood as an alternative.

Consider your work rate

The potential income in your tree surgery and preservation business can fluctuate based on various factors, including your workdays and hours.

You can opt for conventional business hours, such as 8:30 AM to 5:30 PM, Monday through Friday, and possibly even Saturdays. Alternatively, you might choose to extend your workday, perhaps starting earlier or even offering a 24-hour emergency service for situations like severe storm damage.

It’s important to note that adverse weather conditions can occasionally disrupt your planned work schedules. To maximize your earnings, you could consider working longer hours during favorable weather and extended daylight periods, while allowing for some downtime during the winter months. However, it’s essential to be mindful of noise disturbance concerns, especially if you plan to use chainsaws and other machinery early in the morning or late into the evening.

Work rate

It’s crucial to have a solid grasp of the time required for various types of jobs in your tree surgery and preservation business. When providing job quotes, accuracy in estimating the duration is paramount. Always factor in a contingency period. Each job is unique, and unforeseen challenges can extend the time needed. Relying on a two-day estimate when it ends up taking four isn’t a sustainable approach.

The pace at which you work is influenced by your personal expertise, experience, and the nature and quality of your work. Your pricing structure should account for all these variables. Keep in mind that your employees may not share the same level of motivation as you do—after all, it’s not their own business they’re working for.

Non-productive time

Regrettably, not every moment of your working day will directly contribute to your earnings. There are various factors that may lead to situations where your efforts do not translate into income. Here are some examples:

1. Site Visits and Quoting: Time spent visiting sites to assess work and provide quotes doesn’t generate immediate revenue.
2. Job Overruns: Occasionally, tasks may take longer than anticipated due to unexpected challenges like difficult access or weather-related interruptions.
3. Travel Time: Traveling to and from job locations consumes time that isn’t directly billable.
4. Equipment Maintenance: Periods devoted to repairing tools or vehicles can’t be billed as work hours.

In some instances, you may be unable to work at all due to:

1. Equipment Breakdowns: When crucial tools or equipment are inoperable.
2. External Dependencies: Waiting for external factors, such as power companies cutting overhead cables before starting work.
3. Inclement Weather: Adverse weather conditions that make work impossible.
4. Health Issues: Personal illness or injuries that prevent you from working.

When planning your work schedules, it’s essential to factor in these considerations and be realistic about the maximum number of productive hours you can expect each month. Minimising downtime should be a key consideration in your planning efforts.

Pricing policy

Before delving into your tree surgery and preservation business, it’s essential to determine your pricing strategy, which can vary based on the nature of the work. Here are various pricing approaches to consider:

1. Hourly or Daily Rates: Charge clients for your services and those of your team on an hourly or daily basis, with additional costs for any hired equipment or extras.
2. Individual Job Quotes: Offer clients a comprehensive, individualized price for each job. Typically, this quote will be based on your hourly rate plus any added expenses, providing clients with a clear understanding of the total cost.
3. Standard Service Rates: Establish fixed rates for specific tree services. For example, you might set a standard fee for thinning a medium-sized deciduous tree.
4. Standard Rates for Other Services: Determine standard charges for additional services, such as preparing mortgage/insurance reports or renting out your wood chipper for a day.

Consider what’s included in your prices and what will be billed as extras. For instance, decide whether chipping branches or cutting large logs for firewood will be part of your standard price or charged separately. You might also contemplate adjusting rates for work performed at certain heights, near power lines, or close to property boundaries.

Commercial clients may anticipate special rates, with large organizations and insurance companies seeking competitive pricing. You could opt to offer discounts to specific customer segments, such as pensioners or charitable organizations like woodland and wildlife trusts.

Tailoring your costing methods to different jobs and customers can be beneficial, factoring in competition and the complexity of the work involved.

When setting your charges, keep these points in mind:

• Research competitor pricing and how they calculate their rates.
• Consider whether competitive pricing will help you gain an edge in the market.
• Assess whether your rates should vary based on the type and intricacy of the work.
• Decide whether to charge extra for travel to distant job sites.
• Clearly outline what’s included in your prices and what constitutes an additional charge.
• Determine whether to add a profit margin to expenses like hired equipment or pass them on at cost.
• For emergency call-out work, think about charging higher rates for after-hours and Sunday service, or implementing a standard emergency call-out fee atop your regular hourly rate.

When providing estimates or quotes, keep in mind that clients often obtain quotes from multiple firms. Accurate and competitive quoting is crucial, but don’t undervalue your quality workmanship and efficient service. Some clients are willing to pay a fair price for superior service and professionalism.

It’s worth noting that some clients may have received unrealistically low quotes from unscrupulous operators. Rather than matching these rates, emphasize the importance of hiring a fully insured, skilled, and trained contractor who can deliver a high standard of work.

Insurance for tree surgeons

Tree work involves inherent risks, and accidents or property damage can occur despite your best efforts. Having the right insurance coverage ensures that you can continue operating your business with confidence, knowing that you have a safety net in place.

Here’s a breakdown of the types of insurance you should consider and some reputable providers:

• Public Liability Insurance: This is one of the most important types of coverage for tree surgeons. It protects you in case a third party, such as a client or passerby, is injured or their property is damaged as a result of your work.
• Employers’ Liability Insurance: If you have employees, this coverage is legally required in most places. It safeguards your business in case an employee gets injured or falls ill due to work-related activities.
• Professional Indemnity Insurance: This insurance is essential for protecting against claims of professional negligence or errors. It can be particularly valuable if you provide consultancy or advisory services.
• Tools and Equipment Insurance: Your tools and equipment are the lifeblood of your business. This insurance covers the cost of repairing or replacing them if they are stolen, damaged, or lost.
• Commercial Vehicle Insurance: If you use vehicles for your tree surgery business, this type of insurance provides coverage for accidents and damage related to your vehicles.
• Business Interruption Insurance: This coverage can help you recover lost income and cover ongoing expenses in case your business operations are disrupted due to unforeseen events like fire or natural disasters.
• Health and Accident Insurance: Consider coverage for yourself and your employees in case of injury or illness that affects your ability to work.

Reputable insurance providers for tree surgeons include AXA, NFU Mutual, Hiscox, Simply Business, and Aviva. Be sure to compare policies, premiums, and coverage limits to find the right insurance solution that suits your specific needs as a tree surgeon.

Finance for a tree surgery business

Managing your finances effectively ensures that your operations run smoothly, and you can invest in essential equipment, training, and marketing to grow your venture. Whether you’re just starting or looking to expand, understanding the various types of finance available can be a game-changer.

Different types of finance can cater to specific business needs:

• Invoice Finance: This option involves borrowing money against the value of your outstanding invoices. It can provide immediate cash flow and is particularly useful if clients have extended payment terms.
• Startup Finance: When launching your tree surgery business, you may require capital for initial equipment purchases, marketing, and operational expenses. Startup finance, often sourced from personal savings, family, friends, or angel investors, can help you get off the ground.
• Business Loan: Business loans from banks or alternative lenders can provide a lump sum of capital for various purposes, such as expanding your team, upgrading equipment, or investing in marketing efforts. These loans come with interest rates and repayment terms.
• Asset Finance: For acquiring or upgrading equipment like chainsaws, chippers, or vehicles, asset finance allows you to spread the cost over time. This can free up working capital and ensure you have the tools necessary for efficient operations.

Selecting the right finance option depends on your specific circumstances and business goals. Proper financial planning and management will enable your tree surgery business to thrive and adapt to changing market conditions.

Promote your business

Effectively promoting your business is vital to inform prospective clients about your identity, location, and the valuable services you offer.

Advertising and marketing

In today’s digital age, establishing a strong online presence through a well-crafted website can serve as a powerful tool for promoting your business and connecting with a broader customer base. Additionally, consider getting listed in online directories, especially those affiliated with reputable trade associations that offer ‘contact an expert’ directories.

Harness the potential of social media platforms for effective marketing, maintaining relationships with past clients, and engaging with potential new ones. Furthermore, explore the use of relevant forums and perhaps even a blog to share your expertise, although be cautious of forum rules that prohibit overt advertising within posts. You might also consider registering on tradespeople review websites such as Checkatrade and job-referral platforms like Mybuilder.com and Rated People.

Don’t underestimate the impact of an entry in a local print directory; however, as many competitors may have the same idea, focus on setting your business apart.

While some firms invest heavily in eye-catching display advertisements, you can choose to differentiate your approach by highlighting your Unique Selling Points (USPs) in your marketing materials. These might include showcasing “25 years of experience,” emphasizing that your business is “family-run,” or simply promoting a “friendly, honest service.”

Explore alternative advertising methods, such as distributing paper flyers, plastic cards, or stickers with your business details during targeted mail-shots, especially in the early spring season. Investigate opportunities to be listed as an ‘approved tradesman’ by insurers, helplines, or directories, many of which have stringent quality screening processes. Some may require a minimum of two years in business.

Reach out to local residential landlords’ associations to inquire about inclusion in their supplier guides. Consider additional promotional avenues, including advertising in local newspapers or trade magazines tailored to businesses like farmers. Joining respected trade associations like the Arboricultural Association can also help promote your business, as they often maintain online directories of approved contractors and consultants.

Explore the possibility of placing advertisements or flyers in local garden centers and nurseries. Network with local landowners, landscape gardeners, and horticulturalists, as they could become regular clients or refer potential customers to your business.

Initiate contact with estate management personnel in organizations like the local authority or the National Trust to secure a spot on their ‘approved supplier’ list.

When advertising, focus on highlighting the unique strengths of your business, particularly those that distinguish you from competitors. Include details of professional qualifications and membership in trade associations to build credibility.

Remember that your vehicle can serve as an effective mobile advertisement if you have it sign-written and maintain its cleanliness and appearance. Consider creating a sign that can be displayed at job sites, but always obtain the customer’s consent before doing so. If you rent out equipment like wood chippers and mini-excavators, incorporate your business name and contact information on them for additional visibility.

Personal contact

When you’re engaged in a residential project, it’s quite common for other homeowners to approach you with potential work requests. It’s essential to maintain a courteous and helpful demeanor in such situations. Ensure you provide them with your contact information, perhaps in the form of a business card. While it’s important to be polite and accommodating, it’s equally vital not to let these inquiries divert your attention from your ongoing task. Instead, schedule a later visit to their location and assess the job once you’ve completed your current work site.

Word of mouth

Positive word-of-mouth recommendations can be an invaluable asset to your business. In a world where tales of unscrupulous tradesmen abound, clients are understandably cautious and seek assurance that you won’t disappoint them. Establishing and maintaining a stellar reputation hinges on consistently delivering top-notch workmanship, but even seemingly minor gestures like politeness and thoughtfulness can yield substantial dividends.

Additionally, it’s imperative that any employees you bring into your fold embody the values and professionalism of your business, as they also play a pivotal role in shaping your reputation. Building trust and goodwill with your clients will be your most effective marketing tool.

Some things to avoid doing

It’s important to be cautious and discerning when it comes to certain advertising and marketing methods in the tree services industry. Unfortunately, this sector has seen its share of unskilled operators who tarnish its reputation.

Some individuals employ questionable tactics, such as going door-to-door, making unsubstantiated claims like “that tree is dying and requires immediate removal.” Others exploit post-storm situations, capitalizing on tree debris cleanup and the felling of seemingly unsafe trees. These practices are widely considered unscrupulous by conscientious tree surgeons, many of whom maintain a steady workload without resorting to aggressive door-to-door sales tactics.

Instead, focus on establishing your credibility through quality work, professionalism, and ethical business practices. Building a strong reputation within your community will attract genuine clients who appreciate your expertise and trustworthiness, without the need for misleading or high-pressure sales techniques.

Buy an existing business

Opting to acquire an existing tree surgeon business instead of launching your own startup can offer several advantages. Purchasing an established operation means that essential components like products, a customer base, regular revenue, staff, premises, and equipment are already in place.

However, when considering the acquisition of a small tree services business, it’s crucial to conduct a thorough assessment of what you’re truly acquiring for your investment. Smaller businesses may have limited tangible assets, so it’s essential to ensure that you’re receiving fair value, especially if you’re paying for intangibles like goodwill, contact lists, and potentially ongoing long-term contracts.

It’s important to recognize that purchasing a business can be a complex and costly endeavor, particularly if you lack the requisite skills and experience. Having a well-rounded team, including professionals with legal and financial expertise, is crucial. Ensuring you have a clear understanding of the business’s true trading and financial status is paramount to avoid overpaying for the acquisition. Proper due diligence and a well-executed acquisition strategy can make the process smoother and more financially prudent.

Conclusion