1. Strategy Team
Weston Thayne - Daniel Godoy - Mike Peterson - Rebecca Thorpe - Stuart Davis

2.  Chad Hull Logging in Montana
 Moved to Idaho and Started Hull Tree Care
 Had high demand and couldn’t keep up with
work
 Mont bought the Utah Side
 and later Idaho side of Hull Tree Care

3.  Tree Removal
 Tree Trimming
 Wood Chipping
Aiming to move into
 Stump Grinding
 Tree Spraying

4. Mont
Poulsen
Idaho
Kody Alden
Utah
Foreman
Main
Cutter
Main
Cutter
Ground
Crew
Ground
Crew
Chad &
Raven

5. INDUSTRY STRUCTURE
• Almost 140,000 establishments
in 2015
• 69% Nonemployees / Sole
• Narrow geographical markets
• Stable market - establishments
grew at an average annual rate
of 1.6% from 2010 to 2015
• Employees have risen at an
average annual rate of 2.4%
from 2010 to 2015
MARKET TRENDS
• Revenues US $16.2 Billion
in 2015
• Annual growth in revenue
was an average of 3% from
2010 to 2015
• 3.3% of growth in 2015

6. MAIN DRIVERS
In the five years to 2015, demand for tree cutting and
other arboriculture services has grown as a result of
rising disposable income and a rebound in
construction activity. Crippled real estate markets
halted construction activity and lowered demand for
industry services prior to the period. Since then,
favorable macroeconomic trends have revived
residential and commercial construction and
investment; although local government spending
remains tepid, positive employment trends have
relaxed budgetary constraints in recent years.
Source:
IBISWorld
http://clients1.ibisworld.com/reports/us/industr
y/currentperformance.aspx?entid=6064

7. Source:
IBISWorld
http://clients1.ibisworld.com/reports/us/industry/currentperformance.aspx?entid=6064
IMPORTANT TAKEWAYS
• This industry is HIGHLY sensitive to construction/real state
market
• Public investment also have high influence over this industry

8.  Asplundh
 Tree's Inc
 Bud to Branch
 Total Tree Care
 Self Trimming Homeowner

9.  Ethical
 Company others can trust
 Work that brings happy customers
 High quality employees
 Vision “Our Mission is to provide Dependable
High Quality Customer Service.”

10. Current Company Struggles:
 Not profitable – Projected loss of about $21,000 in 2015
 Human Resource issues
Recommendations:
 Understand Business Financials
 Create Price Structure and Process
 Know the Industry
 Employees (Core Team
 Form Organizational Structure

11. Jobs per Day Average Ticket
Utah 2 363
Idaho 2 287
Consol 4 325
Metrics
2015 Actual
US$ ‘000
US$ ‘000

12. Jobs per Day Average Ticket Jobs per Day Average Ticket Jobs Var AVG Ticket
Utah 2 363 4 436 100% 20%
Idaho 2 287 2 316 0% 10%
Consol 4 325 6 376 50% 16%
2015 Actual 2016 Budget Variances
Metrics
US$ ‘000 US$ ‘000

13. Projections
• 82% growth in revenue in
2016
• 29.5% growth in expenses
• 2016 Net Income = $ 139k
US$ ‘000

14. Service Item Price Basis
Cutter Labor $45 Hour
Ground Labor $35 Hour
Vehicle Fees $3 Mile (outside 10 mile
radius)
Boom Truck Use $50 Hour
Minimum Fee $150 Hour
Pricing based on assumption that all
employees are trained and efficient

15. Average Hourly Pay $39
Hours worked per day 8
Men working per day 5
Total labor Revenue Pot./day $1,560
Truck and Travel revenues $300
Daily Revenues $1,860
Discounts/other (10%) $(186)
Total Daily Revenues $1,674

16. Company Processes
 Quickbooks – Easily View AR, Profits, comparisons;
database for customers; bidding and invoicing
 Bid sheets
 Time Cards (Reconcile employee hours with bidding
sheets)
 Social Entrepreneurship
Scheduled meetings with management
 Meet with estimator/foreman 1 day each
week to review bids
and schedule

18. “Only a small percent of the successful entrepreneurs I
have interviewed over the past 20 years have started
businesses in markets they knew absolutely nothing
about. And these people generally become serious
students of the industry” – Mike Glauser (Building Your Dream on Main Street)
 Why?
 Knowing the industry allows you to ask the right questions about your
business
 Gain a basic knowledge of financials within the business
 Know your numbers
 How?
 Talking to Chad the previous owner isn’t enough
 GEMBA- Go and Do
 Prioritize
 Be the Owner of Hull Tree Care
 Drive what you want from this company

19.  You need a TEAM.
- Honest and transparent
- Has strong work ethic
- Willing to do all jobs
- Works well in groups
- Able to keep ego in check
- Respects people’s experience
- Comfortable with different opinions
 Compensation to motivate- Utah manager to move hourly
Quarterly profits
 Favoritism of employees hired by leaders
- Hourly wage promised
 Provide Utah manager a cut in the grinding
- Join forces
 Look into network of potential hires

20. “Entrepreneurs we interview choose team members primarily based on character.
Since many of them run smaller companies, they can’t afford to have noxious people
in their organization. They tend to look for decent people first, and skills second.
When you only have five or six people in your company, you can’t bury a difficult
person deep in a corporate structure. So quality of character is a major emphasis in
finding team members.” – Mike Glauser (Building Your Dream on Main Street)

21. Craig D. Aston
Senior Lecturer, Ornamental Horticulture
craig.aston@usu.edu
Mykel Beorchia
Academic Advisor College of Natural Resources
mykel.beorchia@usu.edu

22.  Hire on CareerAggie
 https://www.usu.edu/career/htm/career-aggie
 Click “Off-Campus Employer Guide”
 LDS employment
 Monster
 Indeed
 KSL/Craigslist

23.  Create training videos instructed by Chad &
Kody
 New hire required to travel up to Idaho and
shadow Kody
 Train new hire trimmers on how to price trees
 Create a culture of employees to talk to
neighbors when they visit sites