How to Start a Tree Service Business: 11 Steps to Success

1. Become a certified arborist

Becoming a qualified arborist is helpful for two reasons: you’ll have industry-leading instruction on how to do the job and set you apart from other tree service professionals in a competitive industry. 

Arborist training can also help you stay safe in work environments that are sometimes dangerous or risky. To become an ISA-certified arborist, visit the International Society of Arboriculture (ISAs) website and apply for eligibility.

2. Select an official business name and logo

Your tree company name is a prospective customer’s first impression of your business.

Make sure to pick a memorable name that describes your services and sounds or looks different from local competitors.

Then, design a logo to match your business name. Depending on your design experience, you can easily create one yourself or outsource the branding work to a designer.

Next, apply your business name and logo to your business assets, including:

• Business cards
• Employee uniforms
• Company vehicles
• Business website
• Social media accounts

Consistent branding helps customers easily recognize your business. Here’s an example of what your tree service business branding could look like:

3. Create your tree service business plan

A business plan is the roadmap for what you plan to accomplish over time. A well-written plan will also help attract investors if you need financing to get started.

Your tree service business plan should include:

•  A cover page with your business name, logo, and contact information
• A quick overview of your business, including how much money you need to start
• An overview of the structure of your business (or how you plan to operate)
• Your tree services list, pricing strategy, and high-level details on profit or revenue
• A market analysis identifying who your potential customers are in your service area, what tree services they need, and how much they’re willing to pay
• A competitive analysis that describes what makes your business different from competing arborist businesses in your service area
• Your marketing plan to attract potential customers to your tree care business
• A financial plan that details the money coming into and going out of your business for the first year (including a budget, sales forecast, and labor costs)

4. Get business financing

If you don’t have money already set aside, you’ll need business financing to buy insurance, purchase tools and equipment, and advertise your tree care services. Consider options like:

• Business loans: Apply for a small business loan or line of credit from your bank, or through an online lender like Fundera or OnDeck.
  
• Government funding: Get a small business grant, loan, or find an investor through the Small Business Administration’s funding programs. You’ll also want to check with your local government to see what federal or state-level business grants are available to you.
  
• Credit card: Apply for a business credit card with a low interest rate to help with cash flow while you’re just starting out.
  
• Small business grants: Some programs funding to recognize excellence in small home services businesses. For instance, Jobber Grants offer $150,000 in startup costs to qualified applicants.

Apply for Jobber Grants

Jobber awards $10k grants to qualifying business owners for exceptional work on their teams and in their communities. Stay updated on application timelines, or sign up to get more info.

How much money does it take to start a tree care business?

When starting from scratch, you can expect to spend $7,375+ to start your tree service business. The costs break down like this:

• Business license and registration ($75–400)
• Tree care business software ($400+)
• Business insurance ($600–2,000/year)
• Tree care tools and safety equipment ($6,000+)
• Business cards, branded uniform, and website ($300)

If you need to purchase a bucket truck or work vehicle, budget another $30,000+ or more.

5. Register your new business

To legally operate your business, you’ll first need to register it. Here’s how:

• Choose your legal structure: In the US, you can choose between a limited liability company (LLC), sole proprietorship, or partnership. An LLC is often the go-to business structure because of liability and legal protections.
• Register your business name: If you live in the U.S., you’ll need to register your tree service business with local, state, and federal agencies. Run a trademark search to make sure your tree company name isn’t already taken.
• Apply for a business license and get the necessary permits. The requirements may vary depending on where you live, so contact your local municipality to clarify. (Here’s how to register your name in Canada, the UK, or Australia.)

Register for taxes: Get your employer identification number (EIN) from the IRS so you can file taxes. You’ll also need your EIN to open a business bank account.

6. Purchase business insurance

Working at heights and operating tree service equipment can be dangerous. 

To protect you and your clients against accidents, it’s always wise to invest in tree service business insurance.

Your small business insurance coverage should include:

• General liability insurance to cover an injury on the job or damage to your client’s property
• Commercial property insurance to cover any damage to your property or tree care equipment
• Business income insurance to keep your business up and running after an incident or unexpected loss of work
• Workers’ compensation insurance to cover employee injuries on the job
• Professional liability insurance to cover claims and lawsuits over professional mistakes
• Commercial auto insurance to cover collision or damage claims to your company vehicle

You might find you need added types of coverage for different purposes. Work with your insurance provider to build a policy that’s right for your tree service business.

7. Price your tree services for profit

Start by listing the tree care services you plan to offer. Your list might include:

• Tree trimming (residential or commercial properties)
• Tree removal
• Tree inspection
• Tree and shrubbery pruning
• Deadwooding
• Stump grinding

Once you have your service list, create your tree service pricing strategy. This should take into account what your competition is charging and how much you need to earn per job in order to be profitable.

You can use an automated service pricing calculator to add up labor costs, material costs, overhead expenses, and profit margin. Don’t forget to factor in expenses like gas, labor, and insurance premiums to get a more accurate profit result.

Take it from the Tree Lady Company on the importance of getting your margins right:

8. Set up your small business accounting

A big part of running your new business is maintaining accurate financial records, especially when you book and send invoices for jobs. You can invest in accounting software like QuickBooks Online to easily track expenses, run payroll, and view income at a glance. 

Using small business accounting software also simplifies your tax information and helps you keep detailed and accurate financial records—preventing lots of stress later on.

READ MORE: 30 small business tax deductions to save money when filing

It’s also best practice to open a business bank account so that you can easily separate business and personal expenses.

10. Book your first customers

To get your business noticed and attract new customers, you’ll need to invest time and money into tree service marketing. There are many tactics you can try to spread the word about your new services.

Here are a few ways to get your first customers:

• Build an arborist website that’s easy to navigate and lets customers request new work online.
• Claim your free Google Business Profile, and add the tree services you offer, your service area, and your hours of operation.
• Create your Facebook Business page, share content regularly, and include before-and-after photos of every tree service you perform.
• Set up a referral program and get more reviews from satisfied customers.
• Print and distribute tree service flyers, postcards, or door hangers in neighborhoods where you want to work.
• Ask customers to leave behind lawn signs with your business information once a job is done.
• Advertise your business on Google with Local Services ads to reach new customers in your service area.
• Join your local business association and attend community events to connect with potential customers and network with other business owners. (Bring along plenty of business cards with your branded logo and contact details.)

11. Hire your first employees and grow your business

When you’re ready to add new tree service, expand your service area, and take on more work, it could be time to hire your first employee. 

Follow these steps to hire a skilled arborist to join your business:

• Decide if you want to hire a subcontractor or employee and figure out how much you can afford to pay them.
• Write an arborist job description to describe the responsibilities, qualifications, and traits the ideal candidate should have.
• Post your job description on online job boards like Indeed or LinkedIn, and clarify how potential candidates can apply.
• Book interviews and ask the right interview questions to find the right match.
• Extend an offer to the top candidate and prepare for their first day, including onboarding and training.

Join the Tree Care Industry Association to help build safety and training programs, establish policies that help employees perform better, and evaluate your business against industry standards.

LISTEN: Overcoming hiring challenges in the tree industry

What is an arborist’s annual salary?

According to the U.S. Bureau of Labor Statistics, the annual salary for a full-time arborist can range from $30,1800 to $64,210, or $31.33–24.90 per hour. Keep in mind that professionals with more training or experience often earn a higher base salary.