Should I buy a tree service business or start one?
Weigh what you would have to build from nothing against what you would have to take over. Starting means finding crew, buying equipment and winning customers while you wait for a reputation. Buying means paying for those up front and inheriting what comes with them. Your time, cash and experience decide which suits you.
This is a choice about trade-offs, and only you can weigh them. Tree work needs trained people, costly machines and customers who trust you with large, risky jobs. A start-up builds all of that slowly. A purchase brings much of it at once, but along with the owner’s habits and problems. Use the questions below to see which set of problems you would rather have.
Crew and skills
Skilled climbers and operators are hard to find and hard to replace. If you start, you hire and train from scratch, and you may do much of the climbing yourself. If you buy, ask which crew members would stay and whether they hold the qualifications the work needs. Ask your lawyer what applies to those qualifications and to the staff you would take on.
Equipment and cash
Trucks, chippers, a lift and saws add up, and so does the cost of keeping them safe. Starting small with rented or used gear spreads the outlay but limits the jobs you can take. Buying puts the fleet in your hands on day one, aged and worn as it is. A lender can explain what it would finance. See how to assess equipment condition.
Customers, reputation and time
A new company has to earn its first customers, referrals and reviews, and the slow months are hard to carry. An existing one has a name and a list, but a reputation can also carry old complaints. Ask how much work comes from repeat and commercial customers, and how much depends on the owner. Then ask how long you can go without drawing a wage.
Questions to ask yourself
- Have I run a crew or worked in the trade before?
- How much money and time can I commit before the work steadies?
- Which risks can I live with: an unknown start-up, or someone else’s history?
- Who will check the business with me: my accountant, lawyer and insurance broker?
Related reading
15 pages on the same subject, grouped by topic.
Buying
- GuideBuying a tree care and arborist company in Canada
- Expert answerWhat are the red flags in a business for sale?
- Expert answerWhat if key customers leave after I buy?
- Expert answerDoes a buyer inherit employees’ years of service?
- GuideBuying a snow removal company in Canada
- Expert answerShould I buy a sod farm or start one?
- Expert answerShould I buy a sod installation business or start one?
- Expert answerWhat should I know about a pool company’s dependence on one liner supplier?
Due diligence
Financing
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Business Development Bank of CanadaGovernmentEquipment purchase financing for entrepreneurs
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