Written by: Emily Joswiak • August 6, 2020• Business

Tips on How to Start a Successful Tree Farm Business

If you enjoy spending time outdoors and are looking for a career change or part-time side hustle, you may want to consider starting a tree farm. A tree farm is a privately owned and managed forest that exists to produce and sell timber. For helpful tips on how to start a successful tree farm business, continue reading.

Determine what type of tree farm you want to start

First, you must know what type of tree farm you wish to start so that you can tailor your growing practices to the needs of your target customer. There are several types of tree farms that you can start, depending on your financial goals and capabilities. For example, you could start a lumber tree farm that produces trees suitable for planks for structural purposes, or you could start a Christmas tree farm.

If you want to start a tree farm that will yield profits in a shorter amount of time, consider starting a tree nursery. Because many trees take decades to reach full maturity before they are ready for harvest, starting a lumber or Christmas tree farm isn’t always ideal for people who want to turn a profit quickly. By structuring your business as a tree nursery, you can start selling your young trees to landscapers and homeowners in as little as one or two years.

Stock up on high-quality equipment

When starting a tree farm business, it’s important not to skimp on the quality of your equipment if you can help it. While purchasing inexpensive equipment may save you some money upfront, doing so will often cost you more in the long run, which can hurt your business’s growth.

As such, it’s a good idea to invest in high-quality equipment that operates more efficiently, requires less maintenance, and will last longer than poor-quality models. Examples of some equipment that you’ll need to start a successful tree farm business include a tractor or skid steer with an auger, hand saws, a plow, a shearing knife, chainsaws, and netters.

Grow highly profitable trees

Perhaps the most important tip on how to start a successful tree farm business is to grow highly profitable trees. Do some research to determine which types of trees are in demand for your target market, which ones will grow quickly, and which ones are the most valuable. Don’t forget to track your expenses using some sort of accounting software too. This way, you’ll be able to determine how much you can actually spend on the trees and forecast an income. As a small business, you can reach out to an accountant to manage your finances for you but there are plenty of free accounting tools on Software Mole and sites alike, making it easy for you to manage your own finances. Plus, you get to cut out an accounting fee, letting you invest more in the trees you’re hoping to sell.

If you’re looking for trees that will start to yield a profit sooner, then you will want to invest in trees that grow quickly, such as birch or cherry. To grow trees that take a bit longer to mature but typically sell for more money, consider growing high-value trees, such as black walnut or chestnut.

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