Free Tree Removal Service Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
It should be noted that there is no special software required to use these
templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
1.0 Executive Summary
The purpose of this business plan is to raise $100,000 for the development of a tree trimming and removal service while showcasing the expected financials and operations over the next three years. The Removal Service, Inc. (“the Company”) is a New York based corporation that will provide tree trimming and tree removal services to customers in its targeted market. The Company was founded by John Doe.
1.1 Products and Services
The Company provides tree removal, trimming, maintenance, inspection and repair services to building/home owners and property managers in regards to trees on their properties. All of the services by the Company will be rendered on site. One of the positive aspects of operating in this business is that many state and local ordinances demand that building owners inspect and maintain their landscaping and trees so that injuries to both people and buildings do not occur. The third section of the business plan will further describe the services offered by Tree Removal Service, Inc.
1.2 The Financing
Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate. Mr. Doe will contribute $50,000 to the venture.
1.3 Mission Statement
It is the goal of the Company to create a business that provides customers with high quality and affordable tree/stump removal and tree trimming services that will be in demand throughout the year.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the landscaping industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target homeowners, property owners, and managers within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Tree Removal Service, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Tree Removal Service requires $100,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Tree Removal Service, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of Tree Removal Service, Inc. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Products and Services
The Company will offer a wide variety of tree services that will generate significant revenues for the business. Tree Removal Service, Inc. will offer its services to both residential and commercial users. Mr. Die feels that targeting all markets will allow the business to operate profitability regardless of the general economic environment. While the Company will offer all of these services, Tree Removal Service, Inc. will specialize specifically in tree and stump removal. The Company will seek to develop relationships with residential clients as well as property and building managers. Mr. Doe feels that by offering professional services at reasonable prices, Management can become the selected service provider for a broad audience of users.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the tree removal/trimming industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2010, at which point the economy will begin a prolonged recovery period.
4.2 Industry Analysis
In the United States, there are more than 8,000 businesses that operate in a capacity that is substantially similar or identical to those of the Company. Each year, the tree removal and tree services industry generates more than $2.9 billion dollars per year. Additionally, the businesses aggregately employ more than 30,000 people nationwide, and provide gross annual payrolls in excess of $1.3 billion dollars. The industry has experienced solid growth as the number of real estate developers building property in the United States has swelled with the rise in general housing and building prices. However, with the current economic environment, Management expects that the Company may have some issues with its early revenues. Tree and stump removal services are expensive, and as such, decreases in general economic output will result in decreases of revenue to the Company.
4.3 Customer Profile
The Company anticipates that a majority of its clients will be building owners and property management firms contracting on behalf of building owners. Mr. Doe expects that the client base will consist of commercial, industrial, and residential clientele. However, Management anticipates that its largest client base will come from the residential arena. As time progresses, the Company may engage more complicated tree and stump removal services for businesses such as real estate developers.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
Tree Removal Service intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Company.
5.1 Marketing Objectives
• Establish relationships with general contractors within the targeted market.
• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising.
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies that will allow Tree Removal Service, Inc, to easily target homeowners, building owners, and property management firms within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public. Tree Removal Service will also use an internet based strategy. This is very important as many people seeking local services, such as tree removal/trimming services, now the Internet to conduct their preliminary searches. Mr. Doe will register Tree Removal Service, Inc, with online portals so that potential customers can easily reach the business. The Company will also develop its own online website showcasing the services, contact information, and preliminary pricing information in regards to the Company’s tree related services. Mr. Doe will also actively develop ongoing relationships with local real estate developers and general contractors that will call on the business to render services in a subcontracted capacity. Once the housing market corrects itself, this may be an invaluable source of business once normal construction operations resume.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• Tree Removal Service will have an annual revenue growth rate of 16% per year.
• The Owner will acquire $100,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
Tree and stump businesses are needed regardless of the economic climate. This is especially true since many states and municipalities have ordinances requiring building owners to have regular inspections and maintenance on their properties. Additionally, as this is a contractor business, the Company can scale back its operations at anytime depending on the demand for services.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis