Bill Henthorn formerly was principal broker and owner of a resort / commercial real estate brokerage in Honolulu which specialized in representing sellers in transactions up to $50MM.He currently serves as the marketing director of http://www.acquireo.com
Tree care and trimming can be done by a one-man business or a large corporate business. The larger business will be able to have the more expensive equipment which means they can be bigger trees with much greater speed as far as trimming is concerned. Vehicles with an armed power ladder or basket makes tree trimming much easier to do. A one-man shop will probably be doing the work by climbing up into the tree and using ropes and safety harnesses.
Tree care and disease analysis or prevention is an activity that can be done only with education and experience. A one-man shop could do this work as easily as a large corporate shop. Both businesses if they have the needed expertise could do this type of work equally well. The knowledge is the important ingredient here and not equipment or number of personnel.
Finding or starting a tree service company
A person that is interested in owning a tree service company could start one out of their home by prospecting in residential neighborhoods to get started in the business. Of course some equipment and knowledge would be a needed element to starting such a business. The tree trimming will take some skill and knowledge about how to accomplish the tasks in a safe manner. Some one who worked for a nursery or a tree farm could have learned the basics of tree trimming. There are also many information sources on the Internet and in books that could be purchased.
Tree diseases would be best learned in a formal setting and could be credentialed by earning a degree in the topic. There are universities and colleges that offer this type of study. Once a person has earned the degree, experience could be gained by working for a state or the federal government. The training and experience could also be gained by working for a private firm.
With the knowledge a person could start business from their home and add personnel as the customer base grow. Buying an existing company would require capital and some business acumen. Hiring a business broker to help with the search would speed up the process. This professional would also be a good source for getting questions answered about this type of business.
This is a niche market and the number of business that come up for sale in a given year, would be far less than many retail stores. A person thinking of getting into this business is faced with moving to buy a business or starting one up from the ground up. Also the solid business broker will have some idea of what amount of money is needed to buy such a business. When this is learned, the buyer must decide if they can come up with the price of buying a business. Starting one up may be the only way the to get into an owner position.
Coming up with the needed money
No matter whether you are starting the business or buying a business, you are going to need to have some cash to make it happen. You will need more money when buying an existing business than you will normally need to start one up from your home. When you buy a business, you are also buying the built in cash flow that comes with the business. The customer base has value and can make the business very likely to succeed in the future. This cash cushion will help the business get through the growing stages and provide the business with income to buy more equipment or hire more people.
The operative question is does the buyer have the funds to pull this off or are they going to need help in buying the business. The help can be found in several places. Relatives and friends could be a source. A bank loan may be able to be arranged by the buyer. There are companies on internet that advertise that they lend money to prospective business buyers. This source should at least be checked out if you need extra cash to pull off the deal. The most likely source for some of the money is the seller of the business. Many business sales are completed each year in this way. The current owner will take back paper as part of the purchase price. If this is the way the purchase is done, be prepared to pay a little more for the business.
An existing business in this field would need careful inspection of the equipment being purchased. What is the state of repair or can it be put in good repair at a reasonable price. This is where you may need expert advice. If there is a need for new equipment, the business must be evaluated on the worth of the existing customers and not the equipment. Long-term contracts have value if they can be assumed.
Conclusions
The tree service business is a very small part of all of the businesses that come up for sale each year. This niche business can be a very profitable business to start or buy. The service is needed by homeowners and businesses every year and can be in great demand if you live in an ice storm area of the country. These storms create a huge demand, as trees will need to be taken care of by someone. Diseases in trees are another matter that takes expert attention and analysis. If the tree is on the property of a private person, they may have no outs when it comes to solving the problem. Certain types of trees are more susceptible to life killing diseases. This should also be taken into consideration when choosing the trees to be planted for a new landscaping project. Good advice is the way to go.
The final suggestion for those interested in this business niche is get the experience by working some where for a time and also get the education so you can do it right. Like other niche companies there are few shortcuts that can be used to speed up the learning curve.
Looking for tree care services for sale ? We have it right here at Tree trimming and tree care businesses
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