Business plan/budget...

[firewood]

Your business structure is your own business. If you are happy with it carry on.

 

1. Where are your opportunities?

Are you working to the max in all that you do? Will a new piece of kit improve productivity? Could you use the cash to finance more teams doing what you do now but just more of it.

 

2. If you have gone as as far you can with the above can you expand into related areas of business i.e. Firewood, kindling, chip or pellets for biomass or milling for boards and beams. If you are predominantly in the domestic market what about public sector contracts.

 

3. Whatever you do my advice would be dont stray too far from what you currently do ( Providing a service based around working with wood or landscaping?) . If you expand into related areas some of the kit and staff will be interchangable so if things dont work out you will still have uses for at least some of your investment.

 

 

 

http://www.kinnoirwoodfuel.co.uk

[Ty Korrigan]

O.K,

Thanks for your mostly pessimistic responses...

I'm working with an old friend, in 2 years together we have argued twice, over nothing and due to tiredness, I'm lucky with my friends, in fact people take us for a couple of queers!

(I'm Stuart he's Sebastian, same boots, trousers and t'shirts )

Right now, we are working a CS100 so far past its spec its like going logging with a butter knife.

So, we are going to invest in a BIG CHIPPER and use the wee chipper for a second crew doing jobs better suited for it.

A 4x4 pickup, with a winch.

More rigging kit.

Land and a barn.

We rent our land and have a less than secure barn at the moment.

Our web site is going to be more professional with regular updates.

Work more on our image and publicity.

Well, thats what we hope to achieve, I just wondered what others may do.

Cheers:001_smile:

Ty

[Old Mill Tree Care]

On. Shalt of everyone before, our views are not meant to be pessimistic but to ask us what to spend on gear is odd.

Expansion increases risk and should only be done out of necessity ie: when at your absolute limit with the current set up.

To go splashing money is reckless.

If you have solid demand in a particular area of your work, that will dictate where you need to spend the money.

 

To conclude: spend it on a Unimog!

[Ty Korrigan]

Yars...

I would love to go down the mog route but we cover serious kms all over Brittany and Normandy and I cannot imagine the fuel bill!

Ty

[Arbmatic]

If you read books/ consult gurus on this subject you will get all kinds of responses but they all subscribe to some simple basics that can be applied here.

 

1. What ever you do you should always have more offers of work that you can handle (you don't have to flog yourself doing the work, but you will always have choices!). In this way you can either a) pick and choose the jobs you want to do; b) employ sub-contractors, or c) expand.

 

2. If you don't have more work than you can handle then you probably a) are not offering a good service b) pricing too high compared to competitors c) offering too low a price (look like a cowboy) d) are not well known enough (nobody can find you) e) not offering services people want.

 

3. Analyse your business if you do-not subscribe to 1. Then you need to find out why!

 

For 2)

If the answer is a) then get training or advice where necessary.

If the answer is b or c) then adjust your prices.

If the answer is d) then advertise.

If the answer is e) then diversify.

 

Do, not invest in capital equipment until you have the market to sustain it.

If you are diversifying/expanding, do the marketing first, book in the orders, and then invest in the equipment.

The person at the top of your business should go through this process at least once a week (if they have other commitments), but some should do it almost daily.

 

Do not waist money on business advisers, they will only tell you what it in this posting, but do ask companies how they can help with actioning some of these answers, i.e. how can I get my company noticed, how can can I diversify, how can I get training.

[Ty Korrigan]

Cheers for that.

We have a huge potential here.

In fact, we have a hit rate of 75% on quotes.

Our equipment is at straining point and we need to upgrade and take on employees on zero hour contracts for skilled labour. We currently use sub-contractors for labour and occasional climbing but we need to make a greater margin on them.

I certainly would never spend out on equipment if there wasn't a use for it.

Took me months before I splash out on even simple things like an arb trolley.

I don't know why we are doing so well, it's difficult to pin point the cause but I feel its a pinch of everything.

Energy, image, equipment, personality.

The French love to have a British gardener/arborist.

Ty

[Kev Stephenson]

If you feel you are flogging the CS100 then get a bigger chipper but not massive unless you need massive. Would a 6" or 7.5" be enough?

 

If you do go for a chipper does it need to be tracked or could you cope with a tow behind?

 

Do you need a 4x4 tipper or could you cope with a transit tipper?

 

As has been said above, buy kit that you have the work for now or in the very near future. There is no point in buying a 12" chipper that is going to cost you loads extra to run, tow around and maintain just because it looks good and you feel you need to spend some money when a 6" would do the work you have.

 

With regards to employment, are you at the point where you need someone full time. I know you said use a 0 hours contract but are you sure that will work.