Are you about starting a tree planting service? If YES, here is a complete sample tree planting business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a tree planting business. We also took it further by analyzing and drafting a sample tree planting business marketing plan template backed up by actionable guerrilla marketing ideas for tree planting businesses. So let’s proceed to the business planning section.
Why Start a Tree Planting Service?
While this might seem like a strange business to start up and make money from, starting a tree planting service is actually a lucrative business that can be embarked upon by any enterprising and innovative entrepreneur. Every year forestry companies usually cut down thousands of trees and then ensure that thousands more are replanted.
Now, it isn’t the job of these forestry companies to replant the trees but that of subcontractors who have had a history of tree planting or who made a bid for the job to provide the tree planting service.
While this might look like a simple business to start up, it is a highly competitive business environment as most tree planting businesses aggressively set targets and pursue the clients they know is likely to give them long-term contracts that are very lucrative.
In order to ensure that your business thrives in this competitive environment, you will need to stand out by offering quality services that will appeal to your target market that your long existing competitors aren’t.
This is not a business that you should start up without seeking the suggestions of one who is quite knowledgeable in the industry and who also has local knowledge of the area you intend to operate your business from.
Seeking therefore the services of an ISA Certified Arborist and tree service business consultant is very important as the consultant would look through your business concept and help you point out if you should proceed with the business or seek out some other venture to engage in.
Another important thing you would need to do before starting this business is having a business plan. Getting a business plan written before starting a business is very important and if you find the whole thing intimidating, you could hire the services of a business plan writer to draft a comprehensive business plan for you.
Similarly, you could go online and download free business plan templates that relate to your business, edit it and then use it to write one for yourself. Below, is one of such, a sample tree planting service business plan for you.
A Sample Tree Planting Service Business Plan Template
1. Industry Overview
Globally, more than 80 percent of forests are being destroyed. The act which is called deforestation includes clear-cutting for agricultural purposes, fires, degradation due to climate change, ranching and development.
Trees play a very important role in the water cycle as they ground the water in their roots and then release it into the atmosphere. Without this act done by the trees, the climate will become dryer, and yet only 20 percent of trees are being protected.
More than 70 percent of plants globally live in forests and yet are losing their habitats due to deforestation. This is dangerous as it can lead to species becoming extinct. Close to 18 million acres are lost each year due to deforestation, and countries like Afghanistan have lost more than 70 percent of their forests, according to the United Nations, Food and Agricultural Organization (FAO).
Should deforestation continue at this pace, all the rain-forests on earth will be destroyed within 100 years. Tree planting businesses usually work for long days in terrains that are often considered harsh, coping with bugs, weather extremes and bears, but however with get great financial reward.
The united states which has less than 5 percent of the global population, however consumes more than 30 percent of paper globally, according to the Rainforest Action Network. Places like North America, Europe, the Pacific and parts of Asia have had to stop deforestation due mainly to lack of agricultural land.
2. Executive Summary
Michener Tree Planting Service Inc is an influential and standard tree planting business that will be located in Lumberton – New Jersey here in the United States of America. We intend to offer our quality tree planting service to corporate, governmental and domestic clients. Our business is well positioned here in New Jersey to ensure we are reachable to our clients.
Our main service is the tree planting service, however because we intend to offer other quality services that will attract more of our target market and ensure that we generate more income, we intend to offer services such as; chipping waste wood and mulch waste, tree removal service, tree shaping service, tree pruning service, stump grinding service, tree trimming service, training, consultancy and advisory services.
Our vision is to ensure that we offer our various customers’ quality tree planting services that will make them call us time and time again for repeat businesses. We also intend to be the first tree planting business that our customers think of when they need tree planting services.
We understand the values of our customers and are therefore willing to go the extra mile to ensure that we not only meet but also exceed the expectations of our clients as well by offering them not only quality services but those that are far and beyond what they expect.
Because we are in the tree planting service business to favorably compete with our competitors and also stand out in the industry, we have gone the extra mile to ensure we build a business structure that will help us get the right people to work with us and help us achieve our goals and objectives.
Our management team are made up of individuals that do not only have the requisite professional background and experience needed to help grow our company, but also understand how best to help our company grow and achieve its set goals and objectives.
We have also taken measures to ensure that our employees are not only well paid but have the best welfare and incentive packages across the industry in similar start-ups such as ours. We have also put measures in place to ensure that our clients get the necessary training whenever needed in order to continually enhance their skills.
Our Chief Executive Officer, Mr. James Michener is an arborist with more than 10 years’ experience. He also has over 5 years managerial experience as well that will allow us achieve all our goals and objectives.
3. Our Products and Services
At Michener Tree Planting Services Inc, we intend to deal in all forms of tree services in order to cater to the needs of all our various customers.
Even though our core service is tree planting, we intend to offer other services as well, from tree trimming service, tree removal service, tree shaping service, training to consultation and advisory services. This is so that we can conveniently boost our sources of revenue, grow and then sustain our business from there. We intend to ensure that we make profit as is legally permissible within our ambitions and within the laws of the United States of America.
Therefore some of the services that we would provide at Michener Tree Planting Service Inc are;
- Tree planting service
- Chipping waste wood and mulch waste
- Tree removal service
- Tree shaping service
- Tree pruning service
- Stump grinding service
- Tree trimming service
- Consultancy and advisory services
4. Our Mission and Vision Statement
- Our vision is to ensure that we offer our various customers’ quality tree planting services that will make them call us time and time again for repeat business. Our intention is to be the first tree planting business that our customers think of when they need tree planting services.
- In order to achieve our vision, we intend to be quick responders to the request of our clients whilst ensuring that we not only meet but exceed their expectations as well. We intend to procure quality equipment and hire only trained professionals into our company to help us attain all our goals and objectives.
Our Business Structure
This is a highly competitive business and it is therefore important that we build the right business structure here in Lumberton – New Jersey that will ensure that we start our tree planting business with little or no hitches. We therefore will go the extra mile to ensure that we hire employees that are the right fit for our company and will not only help us achieve all our goals and objectives but will also ensure that we stand out in the industry through the quality of our work.
The kind of standard we have set for our tree planting service business has led us to assemble the right amount of individuals into our management team that are not only experienced and highly capable but who strongly believe in our vision and will ensure that they do all it takes to carry everyone along – especially the lower staff and make them achieve our stated goals and objectives.
Due to the fact that we would not be running a standard or conventional tree planting service business, because of the additional services that we intend offer; we are going to be employing more hands than other similar tree planting service start-ups like ours, to handle the additional services that we will be offering at Michener Tree Planting Service Inc;
Below therefore is the business structure that we will build at Michener Tree Planting Service Inc;
- Chief Executive Officer
- Human Resources Manager
- Administrative Manager
- Field Supervisor
- Marketing Team
- Customer Service Executive
5. Job Roles and Responsibilities
Chief Executive Officer
- Creates effective policies that would drive the growth of the company
- Formally introduces the company and meets with high level clients to negotiate long-term contracts on behalf of the company
- Evaluates the success of the company and carries out adjustments where necessary
Human Resources Manager
- In charge of sourcing for, interviewing, hiring and conducting orientation for new employees in the company
- In charge of training, welfare and incentive packages for employees
- Conducts periodic performance appraisal on the employee and ensures the workers are up and doing
- Ensures that all management team members are in sync with whatever policies given by the company
- Helps the chief executive officer run the day-to-day affairs of the company
- Ensures that the administrative section of the company functions smoothly with no hitches at all
- In charge of all tree planting services done for customers
- Keeps updated about industry trends as well as company policies to ensure that customers get what is in trend
- Supervises the workers and make sure that services are done the right way in order to positively promote the image of the company
- Continually conducts market survey in order to identify new target markets on behalf of the company
- Prepares effective marketing strategies that would attract customers and generate revenue for the company
- Meets with clients and negotiates for long standing contracts on behalf of the company
- Prepares financial statements, reports, and budget on behalf of the company
- Handles all financial transaction on behalf of the company
- Ensures that the company complies with tax legislation by paying tax and ensuring that tax documents are submitted to the right authorities
Customer Service Executive
- In charge of answering inquiries, taking requests and bookings and also complaints if any on behalf of the company
- Stays updated on industry trends as well as company policies in order to give customers accurate information
- Keeps an updated but accurate customer database on behalf of the company
- Carries out official errands on behalf of the company
- Drives all the employees for field work to and from work site
- Ensures that all traffic laws and rules are obeyed at every point in time
- Ensures that the premises are kept clean at all times
- Keeps the convenience clean for employees and visitors
- Ensures that the cleaning supplies are always in stock and replenishes once supplies runs low
6. SWOT Analysis
Due to our intention to run a standard tree planting business, we have engaged the services of a reputable and experienced business consultant here in Lumberton – New Jersey to look through our business plan and determine if we were likely to make it in this business and compete favorably against our competitors.
Using our strengths, weakness, opportunities and threats, the business consultant was able to point out what we would most likely be exposed to and how we could survive and thrive here in Lumberton – New Jersey. Below therefore is the result of the SWOT analysis that was conducted on behalf of Michener Tree Planting Service Inc;
We have several strengths to our advantage and they include the fact that we are offering several kinds of services in addition to our major tree planting service. This has given us the advantage we need and has allowed us stand out. Also, we have the necessary equipment that can allow us handle more than one job at once no matter the location.
We have also hired highly trained employees who understand the industry well and knows how best to ensure that we achieve all our goals and objectives. And lastly, another advantage we have is the background of our Chief Executive Officer, who is not just an arborist but has the managerial experience as well that will allow us achieve all our goals and objectives.
Asides from the fact that we are in an environment that is intensely competitive in nature, as a new company we have a harder task to ensure that we are being seen by our target customers; two problems we have regarding this are, the necessary staff strength as well as finances.
Due to the strict laws regarding the environment, more companies who do not want to be on the erring side of the law and so usually seek for the services of genuine tree planters to help them fulfill their environmental quota.
Every business either new or existing faces threats and our business is no different. As a start-up in an intensely competitive industry, we would be facing threats such as having to battle with competitors over getting hold of a fair market share, which might result in price wars.
7. MARKET ANALYSIS
- Market Trends
The longest living organisms on the planet earth are trees and they are also one of the greatest natural resources. This is because, trees keep the air clean, improve the quality of water, create shade, reduce noise pollution, provide building materials, prevent erosion, provide food, and also make the landscape appear beautiful.
Trees that are well maintained can help increase the value for a property by 14 percent. Also, trees that are healthy are valued for up to $10,000. According to the forestry inventory, there are more than 247 billion trees within every 1 inch diameter in the United States of America.
Nearly one third of the United States of America is covered by forests. These national forests provide drinking water for more than 3,400 communities, which means close to 60 million people.
8. Our Target Market
Trees are a constant part of our living environment and so we have a large number of people that would be demanding our services. However in order to be thoroughly sure about this, we have conducted a market survey that will allow us identify our target market and know what they expect from us so that we will be able to meet their expectations.
Another reason for conducting a market survey is that it will help us focus on the right strategies that would allow us not only effectively compete with our competitors but will also allow us achieve our goals and objectives more quickly.
Therefore, we will be offering our services to the following groups of individuals and companies;
- Forestry Companies
- Government Agencies
- Environmental Organizations
- Construction Companies
Our competitive advantage
Our intention of starting our own tree planting service is to build a business that stands out and allows customers understand the meaning of getting quality service. We want to be the first tree planting service business that our customers reach out to whenever they need a tree service done here in Lumberton – New Jersey. However, to be able to achieve this feat, we have come up with several strategies that would allow us have a competitive advantage over our competitors.
Even though there are other tree planting services that offer other services in addition to their core service, the additional services we offer our clients are far beyond what our competitors offer and this has set us apart from our competitors.
Asides the fact that we have quality equipment that would not break down in the middle of a client’s job, what sets us apart and allows us retain more customers than our competitors is the fact that we have adopted a customer service attitude that is excellent and this allows us to always keep in touch with our customers whilst on the job to make sure that their expectations are being met.
The fact that we take building our business structure very seriously is why we have gone the extra mile to ensure that we source for and hire only capable, efficient and experienced employees to handle the different roles and positions that their positions would give them. Our management team for instance is filled with individuals that have the kind of experience we need in this business and will work hard to ensure that we are able to achieve all our goals and objectives.
Finally, our employees are well paid and have a welfare and incentive package that is the best across startups in our category, which has made them to become more committed and dedicated in carrying out their tasks. Also, we always ensure that our employees undergo training in the right period so as to ensure that their skills remain enhanced and will allow them boost their productivity rate for the company.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Michener Tree Planting Service Inc is a standard tree planting business that has been established with the aim of generating revenue and maximizing income in the tree industry here in the United States of America. We are going to be offering several services in addition to our core service to our wide range of customers in order to be able to achieve our goals and objectives.
Michener Tree Planting Service Inc will therefore generate income through the following services;
- Tree planting service
- Chipping waste wood and mulch waste
- Tree removal service
- Tree shaping service
- Tree pruning service
- Stump grinding service
- Tree trimming service
- Consultancy and advisory services
10. Sales Forecast
At first glance, the tree planting service business might not be a lucrative one to start, but further evaluation of the commercial tree industry has shown that this business is one that would always provide a source of income for any innovative and enterprising entrepreneur.
Our strategic location here in Lumberton – New Jersey has us very close to our target market and with our connections, we are quite optimistic about our ability to generate revenue and maximize profit within a year of our operations that would grow and boost our business.
In conducting the sales forecast for our business, we took a critical look at the commercial tree services industry and used that to analyze our chances of thriving in this industry. The data and assumptions for the sales forecast we conducted was gotten from existing and already established businesses as well as new start-ups here in Lumberton – New Jersey.
Below therefore are the sales projections that was conducted on behalf of Michener Tree Planting Service Inc based on several assumptions and data.
- First Fiscal Year-: $180,000
- Second Fiscal Year-: $350,000
- Third Fiscal Year-: $700,000
N.B: The above projections that we conducted are based entirely on what is obtainable in this industry. The major assumptions we used was that there won’t be an arrival of a new competitor in the same location offering same or better services than we were. Should there at any time be a change in the assumption, it is likely to cause an increase or decrease in the sales projections for the defined time period.
- Marketing Strategy and Sales Strategy
Having a marketing plan for your business is very important if you intend for your business to become a success and generate the needed revenue that will help sustain and grow your business. Knowing the importance of marketing to your business will help you set corporate goals and create plans that would help attain these corporate goals.
In view of this, we have decided to conduct a market survey where we used data and certain information to understand the market we are going into, so that we would know how best to penetrate the market and strategically position our business in order to get a huge share of the market.
The market survey will also allow us understand our customers and also identify certain unique characteristics they possess, this information would then be used to structure our business in order to attract the number of customers we would need to grow and sustain our tree planting service business here in Lumberton – New Jersey.
Marketing has moved from just using one conventional form to reach customers. Technology has come to play a huge role in the way businesses market their product and we do not intend to be left out. We have created a website that will enable us market our services and reach customers that we would not otherwise have reached due to the wide reaching effects of the internet. In similar vein, we would also ensure that we make great use of our social media platforms in getting to our intended target market.
In order to ensure that we have marketing strategies that have been known to be effective, we intend to engage the services of a reputable marketing consultant here in New Jersey, especially one that has an understanding of the industry we are in, to help us create effective marketing strategies that would make us stand out and compete favorably against our competitors. We would also ensure that our marketing executives are empowered to attain our corporate sales goals and objectives,
In summary, Michener Tree Planting Service Inc intends to adopt the following approaches to market its services to the following groups of people;
- Formally get in touch with forestry companies here in New Jersey and form a relationship so that they could inform us of forthcoming tenders as well as their tree planting programs
- Throw a grand party to celebrate the launching of our company in order to generate interest from the forestry companies
- Ensure that we place adverts in local newspapers and environmental related magazines as well as on radio and television stations
- Make use of our social media platforms such as Facebook, Twitter and Linkedin to market our services
- Ensure that our tree planting service is listed in yellow pages as well as on online directories
- Engage in direct marketing to our target market
11. Publicity and Advertising Strategy
Having the right publicity for our business is very important as our business would just likely exist as any other business if we do not conduct the right publicity to bring it to the awareness of our target market. Publicity and advertising are two edged sword that not only generates more awareness for a business but also ensures that revenue is generated as well.
Knowing how a business could fail without the right publicity strategies, we intend to ensure that we explore every means that would allow us gain the attention of our target market and positively communicate the image of our brand to them.
In this regard, we would be hiring the services of a reputable and highly experienced publicity consultant who has specific knowledge regarding our industry to help us create the right strategies that would help us achieve all our intended goals and objectives, stand out as well as compete favorably against our competitors.
The platforms that we intend to use in promoting and advertising Michener Tree Planting Service Inc are;
- Ensure that we place adverts in local newspapers, environmental related magazines as well as on radio and television stations
- Distribute handbills in strategic locations and paste fliers close to forestry companies
- Participate in and sponsor relevant community programs
- Position our flexi banners in strategic locations in order to get the attention of our target market
- Use our social media platforms such as Facebook, Twitter, and Linkedin to vigorously promote our brand
- Ensure that our staff members wear customized tee shirts especially when out on field work
12. Our Pricing Strategy
Determining the right rates for our tree planting service business is one that would not need extensive deliberation and planning as there are several factors that determine how much we can charge. First, the area one is located in is a determinant, how many competitors abound in the same area, the experience of the tree planting service business, the quality of its job, overhead and running expenses as well as what other services it offers as an incentive to its customers.
Due to the fact that we would basically be a new business without yet a strong presence, we have come up with different pricing strategies that would allow us duly attract the attention of our target market, make us stand out as well as get a huge share of the target market.
We intend to ensure that we offer discount prices during the first three months of starting the business, we will also offer an additional service free for services where we would not be offering any discounts whatsoever. Having critically looked at what our revenue is likely to look like during this period, we are confident that we would not be running at a loss even if we might experience a drop in revenue.
- Payment Options
The fact that we are offering a service does not mean we would not take out time to deliberate on the payment options that would be best for our customers. Also, the fact that we would be offering various services to our various customers mean that we would need to come up with payment options that would suit their various preferences.
The payment options that we will therefore make available to our customers are;
- Payment via cash
- Payment via credit card
- Payment via online payment portal
- Payment via Point of Sale (POS) Machine
- Payment via check
The above payment options were carefully chosen due to the convenience it would offer our business and also allow our customers do business with us at ease. The platforms, after due diligence, will work with no hitches whatsoever.
13. Startup Expenditure (Budget)
In order to run a standard tree planting service here in Lumberton – New Jersey, there are certain items that we would need to get and ensure that they are in place before attempting to start a tree planting service business. The key requirements that we would need to get are; procuring the needed equipment, getting a vehicle even if fairly used, leasing a little facility for administrative work, massively advertising the business and then paying the salaries of employees as well as utility bills for a definite period of time.
The key areas where we therefore intend to focus on as we get ready to start our business are;
- Fee for registering our tree planting business here in the United States of America – $750
- Obtaining of business license and tree planting permits, acquiring customer and accounting software as well as other legal services and expenses – $1,250
- Cost of hiring an ISA Certified Arborist and tree service business consultant, publicity and marketing consultant – $3,000
- Insurance premium (general liability, workers’ compensation, equipment liability, health insurance) – $1,000
- Marketing promotion expenses targeted towards the grand opening of Michener Tree Planting Service Inc; as well as general marketing expenses for a defined period – $3,000
- Cost of start-up inventory (dump, chip box and chipper, and chainsaws) – $5,000
- Purchase of a box truck to carry equipment – $20,000
- Cost of leasing a facility for at least two years and carrying out renovations – $15,000
- Operational cost for the first 6 months (paying salaries of employees and utility bills) – $100,000
- Other start-up expenses (stationery, phones, computers and printers) – $3,000
- Cost of launching a website – $300
- Cost of throwing a party to celebrate our launch – $2,000
- Miscellaneous – $5,000
From the above analysis, in order for us to successfully start and run a tree planting service here in Lumberton – New Jersey, we would require an estimate of $159,300. It should be noted that the amount will cater to our procuring a vehicle, our leasing a facility for use, getting the necessary equipment we need and also paying the salaries of employees as well as utility bills for at most 6 months.
Generating Funding/Startup Capital for Michener Tree Planting Inc Business
Michener Tree Planting Service Inc is a leading tree planting business that is fully owned and run by Mr. James Michener. Even though Mr. Michener will most likely seek for funds externally in order to start up and run his business successfully, he is however not seeking for external business partners at this point, which is why he will be restricting the avenues where he can source his startup capital.
The areas where we therefore will source for the needed capital to start and run our business are;
- Generate part of our start-up capital from personal savings
- Approach family members and friends for soft loan
- Apply for loan from the commercial bank
N.B: We were able to generate the sum of $50,000 from personal savings. We got the sum of $9,300 from our family members and friends, and we are right now at the stage of obtaining a loan of $100,000 from our bank to be repaid in 5 years at 2% per annum. All the approving documents and statements concerning the loan has been crosschecked and signed. This approval means that we are likely to get the money into our business account before the week runs out.
14. Sustainability and Expansion Strategy
Just like any business that wants to exist for a long time, there are certain factors that we would look into in order to ensure that our business exists for a long time. The factors are engaging in networking and adopting customer excellence attitude; effective publicity strategies and building the right business structure for our business.
Without getting and having the customers needed for our business, we are likely to have a business that would not exist for very long. This is why we have laid out plans and strategies that will see us getting and retaining the customers we would need for our business.
After formally introducing our business to several of our target customers, we would position our business in such a way that would allow us to always be in the view of our customers. Any customers we get will not only get quality jobs done, they would be treated with utmost value. We intend to give our loyal customers incentives that would make them not only become repeat customers but ones that would refer our business to others.
Because we do not intend to constantly seek for funds externally to run our business, we have rolled out a re-investment plan and structure that will see us putting back a percentage of our earnings right into our business. This would enable us boost our bottom line that will in turn ensure that we grow and sustain our business.
We intend to ensure that our employees are well paid and that they have the welfare packages better than what their counterparts in startups like ours are getting. We would also ensure that our employees undergo trainings and seminars when necessary so that their skills would not only be enhanced but the productivity rate for our business would be boosted from their commitment and motivation.
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting feasibility studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing/Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party/launching party planning: In Progress
- Establishing business relationship with vendors – wholesale suppliers/merchants: In Progress
- Purchase of trucks: Completed