Which is better?

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BS Tree Service

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When running a tree service, is it better to work your way up and buy your equipment as you go, or is it better to take out the loans for everything you want/need and make the payments?

What's your opinion???
 
Either buy as you go or a hybrid approach. Hybrid approach would be starting by buying what you need to focus on a more limited suite of services (maybe just modest removals that you will climb, just pruning, just pest treatment if you have the knowledge to go that route, etc...). As you pay off that small batch of equipment, look to expand or upgrade, and on and on. I would NOT take out loans to fully outfit everything you ultimately want to run a full service company. I wouldn't want equipment loans I cannot comfortably pay in 3-5 years. I borrowed a couple of thousand 8-9 years ago, paid that off within a year and haven't borrowed since...not saying I never will again, but would love to avoid it.

One more thought: Everybody in bankruptcy borrowed money while nobody who hasn't borrowed money files for bankruptcy.
 
When running a tree service, is it better to work your way up and buy your equipment as you go, or is it better to take out the loans for everything you want/need and make the payments?

What's your opinion???
How could you buy a whole bunch of stuff and make payments? Do you want 4 or 5 thousand dollar payments a month for 6 years? What guarantee is there that you will make enough every month? I know it is better to buy new . I would buy what you need only. Cash would be better or half cash down. Lets start like this, What are you trying to buy ?
 
Either buy as you go or a hybrid approach. Hybrid approach would be starting by buying what you need to focus on a more limited suite of services (maybe just modest removals that you will climb, just pruning, just pest treatment if you have the knowledge to go that route, etc...). As you pay off that small batch of equipment, look to expand or upgrade, and on and on. I would NOT take out loans to fully outfit everything you ultimately want to run a full service company. I wouldn't want equipment loans I cannot comfortably pay in 3-5 years. I borrowed a couple of thousand 8-9 years ago, paid that off within a year and haven't borrowed since...not saying I never will again, but would love to avoid it.

One more thought: Everybody in bankruptcy borrowed money while nobody who hasn't borrowed money files for bankruptcy.
Good point! I have the basics of what I need now but it seems like I need to invest in some other equipment to help us with our efficiency. Problem is we don't have the money to get the equipment to do the jobs faster because we can't get them done fast enough, if that makes sense lol so I thought maybe a loan but it's risky... on top of that it's hard to know what's best to get. Everyone has different opinions. It's kind of a shot in the dark for me because I don't have anyone holding my hand showing me which is the best option.
I would like to do pest control and learn all about it but it seems like people don't want to spend the money on it in my area.
 
How could you buy a whole bunch of stuff and make payments? Do you want 4 or 5 thousand dollar payments a month for 6 years? What guarantee is there that you will make enough every month? I know it is better to buy new . I would buy what you need only. Cash would be better or half cash down. Lets start like this, What are you trying to buy ?
Well were doing it the good ol fashion grunt way now. Dragging brush, moving wood with dollies stuff like that. I would like to get something to change that. That way we're not melting in the lazy boy every night and so we can get through jobs faster.
 
Well were doing it the good ol fashion grunt way now. Dragging brush, moving wood with dollies stuff like that. I would like to get something to change that. That way we're not melting in the lazy boy every night and so we can get through jobs faster.
A dump truck and a chipper is where to start. Now your at 70 grand.
 
If you want somebody "holding your hand", you should not start your own business - any business, not just tree care. We would all like that...but most of us who have started a business also like doing our own thing and some of the adventure of figuring it out for ourselves.

There are no hard fast rules. Sure, 99% of tree companies run a chipper everyday...but does that doesn't mean you can't do without. Right on the active forums, there is a guy with a crane with the grapple saw and nothing else. Contracts out to let others chip. I mentioned in another thread about a company who does everything with large grapples and large dumps instead of chippers. Neither of these will lower your start-up costs (in fact, both are more expensive than a conventional operation) but I use these examples to show not everybody needs to be the same.

Keep asking around. See what other people do. If you can get 100 miles from home, most would be more than willing to spend time with you talking about what works best and why. Within your own market, you may find more "hostility" as not many want to feed the competition...

Regarding plant health: people are willing to spend money on that in most markets. They just need to see the value, and know that you have the ability to it properly. Every year I get clients calling me because the large national lawn treatment firm tells them they have a tree or shrub problem. I have yet to agree with what the turf guy told them needed treated. No quicker way to lose trust and clients than selling them stuff they don't need...and people aren't going to call us because we have the name recognition of those national companies with multi-million dollar advertising campaigns.
 
If you want somebody "holding your hand", you should not start your own business - any business, not just tree care. We would all like that...but most of us who have started a business also like doing our own thing and some of the adventure of figuring it out for ourselves.

There are no hard fast rules. Sure, 99% of tree companies run a chipper everyday...but does that doesn't mean you can't do without. Right on the active forums, there is a guy with a crane with the grapple saw and nothing else. Contracts out to let others chip. I mentioned in another thread about a company who does everything with large grapples and large dumps instead of chippers. Neither of these will lower your start-up costs (in fact, both are more expensive than a conventional operation) but I use these examples to show not everybody needs to be the same.

Keep asking around. See what other people do. If you can get 100 miles from home, most would be more than willing to spend time with you talking about what works best and why. Within your own market, you may find more "hostility" as not many want to feed the competition...

Regarding plant health: people are willing to spend money on that in most markets. They just need to see the value, and know that you have the ability to it properly. Every year I get clients calling me because the large national lawn treatment firm tells them they have a tree or shrub problem. I have yet to agree with what the turf guy told them needed treated. No quicker way to lose trust and clients than selling them stuff they don't need...and people aren't going to call us because we have the name recognition of those national companies with multi-million dollar advertising campaigns.
Unfortunately I find out things the hard way at times lol but I can't complain. I love the business. I have a chipper and a couple dump trucks and at one point a forestry bucket truck. I paid cash for everything and it's been good but sometimes I just get the urge to go buy some newer equipment to help us get things done quicker and take on different jobs.

That's what I would really like to do. I just have not found anyone yet. I thought about going to jambo this year. Ever been there? Or maybe something like it just to talk to people in the business.

Who knows, maybe I'll get into the pest control someday. It would be nice to be well rounded in the tree care industry. Not just pruning and removals.
 
I think I need a skid steer or a one of those WL35 loaders first

Don't get a skid steer. If you go with a loader get an articulating loader. I bought a skid steer and four years later I sold it to get a gehl 540. I incurred a small loss in doing so.

Make sure that you get what you need the first time you buy something.
 
Getting equipment and trying to find the extra business to pay for it is a bad idea unless it is really cheap equipment that will allow you to sell impulse purchases to your existing customers. The exception to this is buying equipment to replace employees. If you can buy a mini and fire an employee it is will save you more money than it costs. In general you should get more business and buy the equipment you need to keep up with the extra work. If your money is burning a hole in your pocket spend it on advertising so you will get the extra business you need to support more equipment.
 

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