During the holiday season a successful tree stand business may sell hundreds of Christmas trees. If you're thinking of starting your own tree stand, you may elect to buy your trees wholesale or start a tree farm and sell your own. Either way, you will be subject to regulations. Start with a business plan.
Things You'll Need:
- Lot
- Building permit
- Zoning approval
- Sales tax permit
- Federal tax ID
- Liability insurance
- Wholesale trees
- Merchant account
- Step 1
Contact property managers at high traffic retail stores months before the holiday season about renting space for your tree stand. Ensure that the parking lot has adequate lighting and is located in a relatively safe part of town. Start with businesses that remain open late, to ensure more traffic for your business after normal business hours.
- Step 2
Get a building permit application. Contact your building department to learn what permits are required for your area. Generally, you will be required to obtain permissions from a number of government departments. Start by drawing up a plan of your trailer and the lot to scale. Include information about electrical wiring and generators. It may be necessary to have a licensed electrician obtain an electrical permit on your behalf. Make copies of your plans as needed. Present these to your building department and zoning official, along with proof that the owner of the property has authorized you to use the location for your Christmas tree business. Then contact your Fire Marshall to obtain permission, if necessary.
Get your sales tax permit and federal tax identification number so that you can purchase wholesale. Purchase liability insurance for your tree lot. Expect to need between $100,000 and $500,000. Your insurance representative will help you determine the right amount of coverage for your location and anticipated traffic. - Step 3
Find wholesale suppliers. Christmas trees sell retail from about $15 to $75 depending on the size and type of tree. Ensure that once you've accounted for shipping costs, rent, gas, truck maintenance, permit fees and supplies, the wholesale price leaves enough room for profit. Purchase a truck, hauling equipment, gloves and cold weather gear. Purchase a variety of tree sizes and wreaths.
- Step 4
Open a merchant account so that you can accept credit cards. Look for a merchant account provider that will not only provide you with the credit card swipe machine and equipment, but also include receipt paper and accounting tools.
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