Start up cost

[T-rain]

How much did you spend in your first year towards your new company? Just curious, planning ahead for the day that I make the jump to owner operator. Also with in the first year what was your top three investments? Can be anything. (besides meth that lets you work a week with out sleep)

 

[mattfr12]

Chipper and something to chip into or it will take days trying to haul that stuff out. Climbing gear saws ropes and pulleys that would be how i started up. 5500.00 chip truck 6500.00 chipper some saws ropes and a saddle.

 

[2treeornot2tree]

I bought a 98 old asplaud truck for $14,000 and a 85 Morbark 200 chipper for $5,300. If I could have done it again, I would have bought a 75' elevator asplaud truck instead of the 55' truck I got. I got a harness, had a rope, and bought some flip lines and a cheap pair of spikes. Oh yeah and my fav tool, my big shot and a throw weight and line.

 

[sgreanbeans]

When I was called back into the Marines, I sold EVERYTHING! Thought I was going to get my 20 in, that didn't happen, when I came home, Got my severance and I spent about 65,000 in 3 days. I had to buy everything all over! Equipment is not the only thing ya need to get, all the proper paper work, advertising, insurance,phones, small tools, etc! Still rebuilding, at about 100g's invested now, still need another 100g's, any buddy got a couple bucks laying around! Or you could send donations to the Domestic Tree Violence Task Force.

 

[T-rain]

Thanks guys. accumulation might be hard for me. I hate not being prepared as it is and i know the first few years will drive me nuts not having every little piece of desired equipment..

 

[DDM]

Whatever you think you might need multiply by 2...

 

[Bearcreek]

Whatever you do, do your damndest to keep overhead as low as possible, never buy new unless you can pay cash and use as few employees as you can get by with. I'm sure there are those who would disagree but I've seen to many guys, in a variety of different service industries, buy someone out or start a new business and buy all new, shiny equipment and hire a bunch of people. 2-6 years later they're in the hole up to their neck and/or bankrupt.

 

[ducaticorse]

I won't tell you my initial investment, because I bought dog crap stuff cheap, that ended up costing me triple og cost in repairs the first year. I am basically starting from scratch this coming spring, and will be spending in the area of 100K including the Bucket and chip truck I already have. That money covers ins, marketing, another chipper, bobcat, saws, small related items truck painting and lettering etc. As someone mentioned above, having the least amount of overhead is KEY. I will have no overhead besides fuel, repairs, and payroll from the get go this year. Another thing that is VERY IMPORTANT is CASH CAPITAL. You should have at least a few grand if not 10K in the bank on any given day for emergency use.

 

[ozzy42]

I started with nothing and still have most of it.

 

[2treeornot2tree]

idk how I posted I like the last comment with a heart. Save up and get a GCRS. I love mine.

 

[ozzy42]

I have the power to control your mind.

See,,,I made you like this post too.

 

[ozzy42]

:hmm3grin2orange:

 

[newsawtooth]

Other problem you will find in the Treasure Valley is the lack of a green industry. Not much in the way of used equipment floating around. Tree equipment is specialized and expensive anyway; in small markets it can almost cost prohibitive. Of course you may not need much, I've got an acquaintance who made upwards of $50 g's with only a trailer, 1/2 ton and a 200T for five years or so. Then he bought a chipper and chip truck.

 

[flushcut]

More than I care to talk about.

 

[DangerTree]

Assuming you have enough experience in both the tree world and the business end of things here is my 2 bits. Contrary to a few suggestions I personally would never buy used gear period. Always buy industry standard stuff ie. MS 200T not some cheapo saw. Don't invest to much to fast it will give you time to learn whats needed and whats not. The basic gear would be all the climbing junk like saddle etc. should set you back a G note. You will need 1 climbing rope, 1 bull rope and a utility rope 1/2" is fine. A spool of 1" tubular webbing and a wack of Biners sport,locking and non locking that will be another G note. You will require a 1 ton dump truck( get this BEFORE some moron tries to sell you his piece of **** bucket truck) as you need to remove branches etc. and believe me hand bombing on and off the truck is bullchit! Don't bother with a chipper in the beginning it's not needed. You will need to secure a dump site for all the trees you will be killing try leasing a spot from a farmer don't use logging roads it gives tree workers a black eye! Insurance is a must don't play if you can't pay you will be screwed if something goes bad. Extra stuff that pays LARGE dividends are things like BIG SHOT, Silky saw, blocks and slings. I would say a guy could start from nothing and be logging in say....10 G's. The only thing I would buy used would be the Chevy 1 ton dumpy!

Then it's time to bust some ass and make some squirrels freak out like back in Nam baby!!!

 

[TimberMcPherson]

2 bits of advice

My start up was about 10k.

1)The most important thing to have for your business is 5k in the Bank.

This doesnt get touched unless theres an emergency.
Its there if the truck breaks down for the second time in a week.
Its there if the phone doesnt ring for 4 weeks.

Spend money above that, pay yourself with money above that. But dont think of it as savings, but save your ass funds.

2) Treework is contextual. (so is advice)

Gear, staff and the nature of tree work that you do is unique to your situation (environment, budget, tree species, tree sizes, clients budget and property size and attitude and tree coverage, access, competitor coverage, travel distances, dumping situation, firewood demand, mulch demand, your skills and mechanical ability etc etc.)

Basically all situations are different. What works for one company would ruin another.

For example, I can count on one hand the number of times a tracked stumpgrinder would be useful or profitable for me in a year, but my stumpmaster (like an alpine magnum) gets used weekly. But for others the opposite would be true

This site is full of knowledgable guys who know what the best gear is, but only YOU will know what gear will work out for you.

 

[NCTREE]

I started up for under 10k that includes insurance(don't leave home with out it), 75 dodge dump, chuck and duck chipper, and some basic climbing and rigging gear. You can be successful but you have to be cheap first, get your foot in the door and build clientele. Take advantage of tax benefits for starting a new business; don't be afraid to invest back into your business but don't finance for new equiptment, pay for it with cash. It's ok to finance equiptment but wait a few years before you do and build steady clientele.

 

[flushcut]

Then it's time to bust some ass and make some squirrels freak out like back in Nam baby!!!

It's funny you should say that I launched two yesterday. I have to agree with you however for me a chipper is a necessity because chips are easier to get rid of than brush. Customers sometimes want chips and the dump sites I use don't want brush, big wood and logs are easy people will always take wood for free.

 

[T-rain]

Thanks again guys. I suppose that i already knew most answers to my questions but its nice to hear it confirmed from people who have already been there.

 

[treemandan]

I have the power to control your mind.

See,,,I made you like this post too.

Hooked another one with that didn't you?