Tree Service Company

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Executive Summary

Steady Oak Tree Service is a tree service company serving homeowners, landlords and small businesses in our county and the nearby towns. We remove, trim and prune trees, grind stumps and clean up after storms, with a careful, insured crew. A tree on the wrong side of a house can be dangerous, and tree work is one of the riskiest jobs there is. Many homeowners get quotes from uninsured crews, who may drop a tree on a roof and leave. We will win customers by being insured, careful, on time and clear about price, and by cleaning up completely. Here is what our numbers show. We expect sales of about $243,000 in Year 1, growing to about $971,800 by Year 5 as we add tree crews and take on more removals and storm work. We expect a loss of about $1,200 in Year 1 while we build our customer base, then a profit from Year 2 (about $33,100), growing to about $219,000 by Year 5. We need $100,500 in total. That covers $67,400 in startup costs (a used chip truck, chipper, chainsaws, climbing and rigging gear, a stump grinder, insurance and advertising) and a cash cushion of about three months of bills. I am putting in $22,000 of my own money, and I am asking for $78,500. The startup costs include a used chip truck, chipper and a trailer. I am Angela Chen, the owner. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Steady Oak Tree Service will be a limited liability company (LLC) in Ohio, owned by Angela Chen. We will work from my home, with the truck and trailer parked on my property and equipment stored in a locked shed. What we believe. Do the work safely, protect the property, give a clear written price and clean up everything we cut. What we offer:
- Tree removal, including hazardous trees near homes. - Pruning, trimming and shaping. - Stump grinding. - Storm damage cleanup and emergency tree removal. - Lot clearing and brush removal. Licenses and insurance. Tree work needs strong insurance, because injuries and property damage can be severe. Many states and cities require a business license, and some require a contractor or arborist license. Certification from the International Society of Arboriculture (ISA) is respected and helps with customers and insurers. Our city requires a business license and proof of insurance, and I will take the ISA arborist exam in my first year. We will carry general liability and workers' compensation insurance before any climber leaves the ground, and we do not work near power lines unless trained and authorized to do so. Where things stand today. I have worked on a tree crew for six years, I hold a chainsaw safety certificate, and I have priced a used chipper and truck.

Problem & Opportunity

Homeowners near us need tree work done safely, and it is hard to find a crew they can trust. 1. Uninsured crews. Some cheap crews have no insurance, so the homeowner pays if something goes wrong. 2. Damage. A tree dropped on a fence, roof or car is costly and common. 3. Unclear prices. Quotes can change after work starts, and cleanup may cost extra. 4. Storm rush. After storms, out-of-town crews arrive, charge high prices and leave. How we know people want this. Seven neighbors asked me for estimates after last spring's storm, and a property manager said she needs a reliable, insured crew.

Products & Services

What we sell. 1. Tree removal and trimming jobs. Removing, trimming and pruning trees, and grinding stumps. Our plan assumes an average of about $850 per job in Year 1, rising to about $957 by Year 5. Fuel, disposal and direct costs run about $320 per job. We expect about 220 jobs in Year 1, growing to about 719 a year by Year 5. 2. Storm damage cleanup. Clearing fallen trees and limbs after storms, which are larger and more urgent jobs. Our plan assumes an average of about $1,400 per job in Year 1, rising to about $1,576. Direct costs run about $520 per job. We expect about 40 jobs in Year 1, growing to about 180. Our prices. Trimming from $350. Average removal $850 to $1,500. Stump grinding from $150. How it works for the customer:
1. A free estimate, usually within a day or two, with a written price. 2. A date, and a call the day before. 3. Careful work, with the property protected and everything cut up, hauled or chipped. 4. A final walk-through to make sure the yard is clean. Gross margin, explained. "Gross margin" is the share of each sale left after paying for materials and direct job costs. Our plan shows about 62% in Year 1. That money pays the owner and crew, vehicle costs, insurance and other bills.

Market Analysis

Who will hire us:
- Homeowners with trees that are dead, leaning or too close to the house. - Homeowners who need pruning, trimming or stump grinding. - Landlords, property managers and small businesses. - Homeowners after storms who need fallen trees removed quickly. Where we will work. A service area close enough to reach jobs quickly, starting with our county and the two neighboring towns, within 30 minutes of my home. After a storm, being local matters. Season. Tree work happens all year. Winter is good for pruning and removals, and storms bring urgent jobs. We use slow weeks for estimates and stump grinding. Our plan is careful on purpose. About 220 jobs in Year 1 is a pace the owner and a small crew can handle safely.

Competitive Landscape

Other choices customers have:
1. Larger tree service companies. Big Tree Service (a made-up name) charges about $900 for an average removal; known for being fast, but not careful with the yard. 2. Uninsured crews and handymen with a chainsaw. Cheaper, but a risk to the homeowner. 3. Doing it yourself. Free, but dangerous. How we will win customers: insured, careful work, clear written prices, a clean finish and quick replies after storms.

Marketing & Sales Strategy

How people will find us. - A free Google business listing with photos, and a simple website with a phone number that gets answered. - Asking every happy customer for a review and a referral. - Door hangers and truck lettering in neighborhoods with mature trees. - Relationships with landscapers, property managers and real estate agents. - Storm readiness: a plan and a mailing list for storm cleanup, so neighbors know who to call. Marketing budget. About $6,000 a year. The truck lettering, door hangers and website are paid for from startup costs.

Operations Plan

How the business runs day to day. Estimates and jobs. The owner visits each site, writes a quote, schedules the crew and decides how each tree will come down safely. In Year 1 the owner works with one crew member, and we grow to five by Year 5. Each job has a safety plan, a drop zone, a hauling plan and a final walk-through. Equipment. About $55,000 to start: used chip truck; chainsaws and pole saws; used wood chipper; climbing gear and ropes; rigging and lowering equipment; used stump grinder; safety gear: helmets, chaps and gloves; used trailer. We set aside about $6,000 to $8,000 a year for repairs and replacements. Upkeep. Safety. Tree work is dangerous. Everyone wears a helmet, eye and ear protection, chaps and gloves. We follow industry safety standards, keep a first aid kit and radio on every job, and never work near power lines or in high wind. Running costs in Year 1: equipment maintenance about $16,000, insurance and certifications about $10,000, marketing about $6,000. Scheduling and billing. A simple scheduling and invoicing app on my phone, with customers billed after each job.

Management & Organization

Who runs the business. Angela Chen, owner. As owner I will climb and cut, write estimates, schedule jobs, keep the equipment running and handle the money side of the business. I plan to pay myself $58,000 a year in salary in Year 1. Crew. Tree crew members at about $42,000 a year each (or part-time pay): one in Year 1, two in Year 2, three in Year 3, four in Year 4 and five in Year 5. People who will help us: a bookkeeper or tax preparer, an insurance agent, and a free mentor from SCORE or the Small Business Development Center (SBDC). James Perry serves as a key volunteer advisor.

Milestones Narrative

Our goals and when we plan to reach them. - Before starting: get the insurance and certification, register the business, buy the truck, chipper and equipment, and put out door hangers. Target start: February 2027. - First year: complete about 220 trimming and removal jobs and 40 storm cleanup jobs, for about $243,000 in sales. - Year 2: add crew members, about $382,800 in sales, and a profit of about $33,100. - Years 3 to 5: grow to five tree crew members and about $971,800 in sales by Year 5. Growth depends on hiring good people and winning the work, so treat the later years as goals, not promises. What we check every week: estimates given, jobs finished, near misses, equipment problems, fuel and disposal costs, and cash in the bank.

Funding Request

How much we need and how we will use it. Total needed: $100,500. This number comes from the Funding Need Calculator in this plan. It adds up: - Startup costs of $67,400, listed item by item in the Startup Costs section (about $55,000 for the chip truck, chipper, saws, climbing and rigging gear, stump grinder and trailer, $800 for opening fuel, oil and chains, $800 for a business license and the arborist exam, $8,000 for the first insurance payments, $800 for business setup and bookkeeping software, and $2,000 for truck lettering, door hangers and a website). - A cash cushion of about $33,100: the deepest cash dip in the early months plus about three months of bills, so slow weeks do not put the business at risk. Lenders call this "working capital." - Together that comes to about $100,500 (rounded up to the nearest $500), which is the total we are planning for. Where the money comes from: - My own money: $22,000. - Amount requested: $78,500. Kind of funding we are looking for: an SBA 7(a) loan through a local bank or community lender. How we will pay it back. We expect a loss of about $1,200 in Year 1 while we build our customer base, then a profit from Year 2 (about $33,100), growing to about $219,000 by Year 5. With this funding, the business has money in the bank every year of the plan. The loan is planned at 12.75% interest over 10 years, the most the SBA allows for a loan this size, so payments of about $1,161 a month are already included in our cash flow. What we are offering the lender: our truck and equipment as collateral and my personal guarantee A smaller first step, if needed. If we cannot raise the full amount right away, we can start smaller and grow into this plan: - Phase 1: start with pruning and small removals on weekends using hand tools and a rented chipper, while keeping your current job. Startup can be under $3,000. - Phase 2: once you have more jobs than you can handle part-time, buy the chipper, truck and rigging gear and follow this plan. To plan the smaller start, make a copy of this plan (use Duplicate) and lower the numbers to match. All numbers in this plan are estimates. We will update them as real results come in.

Appendix Notes

Documents to attach before you send this plan:

- Your resume (one page is fine) and any licenses or certificates. - A personal financial statement (a list of what you own and what you owe; lenders usually provide a form). - Business registration papers and your EIN (your business tax number from the IRS, free at irs.gov). - Proof of insurance, or a quote. - Your arborist certification or training records, if you have them. - Quotes for the truck, chipper and equipment. - Your price list and a sample written estimate. If you don't have any of this yet, no worries - let's continue. The assumptions behind our numbers (change them in the Financials section to match your own):
- Tree Removal & Trimming Jobs: about $850 per job in Year 1, rising to $957; about $320 per job in direct costs; about 220 jobs in Year 1, growing to 719. - Storm Damage Cleanup: about $1,400 per job in Year 1, rising to $1,576; about $520 per job in direct costs; about 40 jobs in Year 1, growing to 180. - Owner salary: $58,000 a year. Crew: $42,000 a year each, from one in Year 1 to five in Year 5. - Other yearly costs in Year 1: equipment maintenance about $16,000, insurance and certifications about $10,000, marketing about $6,000. - Tax rate: 21%. - Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs