With as low as $10,000, you should be able to start a small-scale tree-cutting business especially if you will be operating the business from your home, a shared office, or a virtual office. Note that you can also spend over $100,000 to start a standard and well-equipped tree-cutting business.
A tree-cutting business, often referred to as a tree service or tree removal company, is a professional service that specializes in various aspects of tree care and maintenance, including the removal of trees.
These businesses offer a range of services related to trees, such as pruning, trimming, tree removal, stump grinding, tree disease diagnosis and treatment, and emergency tree services.
So, if you are looking to start a tree-cutting business, you should first acquire the required skills. Interestingly, it will not cost you much to start a tree-cutting business if you choose to start the business on a small scale.
There are some key factors that can determine the total budget of starting a tree-cutting business and that is what we will discuss in this article.
Factors That Determine the Cost of Opening a Tree Cutting Business
Your Choice of Location
The truth is that the location of a business will determine how much you will spend on rent or lease, the amount you will spend on acquiring licenses and permits, the amount you will spend on utilities, transportation, hiring labor, and every other cost associated with locations. If these costs are on the high side, it will increase your overall startup cost.
The Cost of Licensing and Permits
You cannot legally start and operate a tree-cutting business in the United States of America without first obtaining the specific licenses and permits needed to start the business.
You should make plans to obtain a business license, contractor’s license, environmental permit, land use permit, tree removal permit, burning permit, occupational safety, and health administration (OSHA) compliance, federal and state tax identification numbers, vehicle and equipment permits, and hazardous materials permit (if applicable).
In case you are not sure of the permits required to start a tree-cutting business in your city, you may want to check with your local government or regulatory agencies. Please note that the costs of all these licenses and permits are significant and can vary from one state to another.
The Cost of Insurance Policy Cover
As a tree-cutting business owner, it is expected that you go to sites to work, and in some cases, you will be required to operate some advanced machines. Trust me, this can be risky hence it is required that a tree-cutting business purchase the required insurance policy cover.
Tree-cutting businesses typically require general liability insurance, physical damage insurance, auto insurance, equipment, and tools insurance, and workers’ compensation insurance to protect against potential risks and liabilities that the business is subjected to by virtue of the nature of the business.
Note that the cost of insurance policy coverage will depend on factors such as the size of your business and the coverage limits you choose.
The Cost of Tree Cutting Equipment, Tools, and Supplies
The fact that you will need various equipment, tools, and supplies for tree cutting means that you should create a budget for them.
As expected, you should make provision for chainsaws, safety gear (helmets, goggles, gloves, chaps), climbing equipment (harnesses, ropes, carabiners), stump grinders, wood chippers, trucks or trailers, logging and rigging equipment,
Pruning shears and loppers, chainsaw sharpening tools, first aid kit, fuel and oil for equipment, tree identification and disease diagnosis tools,
Safety cones and signage, ladders, rakes and leaf blowers, chainsaw maintenance tools, tree wraps and supports, vehicle maintenance tools, and office equipment.
The amount you are to spend on equipment, tools, and supplies will depend on the size of your business. But the bottom line is that it is a significant cost that will influence the overall cost of starting a tree-cutting business.
The Cost of Purchasing Trucks
Depending on the size and location of your tree-cutting business, you may need a dedicated utility truck for transporting your workers, equipment, and supplies to and from job locations.
It is important to note that the cost of a suitable utility truck, and dump trucks will depend on your preferences and also your decision to settle for outright purchase or lease.
Note that the utility vehicles for your tree-cutting business can also include company cars, commercial trucks, vans et al as long as they are registered under your business name and they are used for the business.
The Cost of Marketing and Advertising the Tree Cutting Business
Promoting your tree-cutting business through marketing and advertising strategies is essential to attract clients. Even though there are no specific costs attached to marketing and advertising a business, the bottom line is that if you want to launch a business that will win a fair share of the available market in your location, then you must be ready to invest a significant amount to promote your tree cutting business.
Operational and Miscellaneous Expenses
For a tree-cutting business, you should make plans to spend on operational, and miscellaneous expenses such as waste disposal fees, toll fees, business levy, rent for office or storage space for your supplies and equipment, utilities, fueling, maintenance, office supplies, and recruiting and paying any additional employees you may hire when you have a project that requires additional workforce.