Most owners of a tree surgery business know roughly how busy they are. Far fewer know whether they are actually making money on each job, where profit is leaking, or which part of the business is growing. Key performance indicators, or KPIs, answer those questions in a few numbers you can check every month.
This guide covers the 7 KPIs that matter most for a tree surgery business, how to calculate each one, and what to do when a number moves the wrong way.
Why KPIs matter more than turnover
Turnover tells you how much came in. It does not tell you whether prices cover costs, whether time is being used well, or whether cash will be there next month. A tree surgery business can grow turnover and still make less profit if costs grow faster. KPIs show you the drivers behind the result, early enough to act.
The 7 KPIs for a tree surgery business
1. Average job value
How to calculate it: Revenue ÷ jobs
Tracks bigger felling and clearance work.
2. Crew hours sold
How to calculate it: Crew hours charged
Your capacity and pricing base.
3. Revenue per crew hour
How to calculate it: Revenue ÷ crew hours
Whether your rate covers the crew and kit.
4. Disposal and hire % of revenue
How to calculate it: Disposal and hire ÷ revenue
Rises when waste is underpriced.
5. Equipment downtime
How to calculate it: Days a key machine is out of action
Lost days cost a whole crew.
6. Repeat work due
How to calculate it: Customers with a re-cut or inspection due in 30 days
Your pipeline of easy work.
7. Quote win rate
How to calculate it: Quotes accepted ÷ quotes sent
Shows whether pricing and response speed are right.
Interpreting these measures in practice
Read crew utilisation with job margin, disposal cost and equipment downtime. A crew can be busy but unprofitable if travel, traffic management, chipping or waste haulage were underquoted. Compare estimated and actual hours for access, dismantling and clean-up, and track repairs against machine-use days. Use near-miss and safety records as operational controls rather than targets to minimise; safe planning and suitable equipment are prerequisites for reliable output.
Start with the profit basics
Alongside the industry KPIs above, every owner should check four headline figures each month:
- Total income for the month and year to date
- Total costs, split into direct costs and overheads
- Net profit and operating margin
- Lowest cash balance in the next 12 weeks, from a cash flow forecast
If net profit is falling while turnover rises, look at the cost KPIs first. If cash is tight while profit looks fine, look at unpaid invoices.
An example month (illustrative figures)
Say a tree surgery business takes £13,000 in a month and spends £8,800 on the direct costs of delivering the work. Gross profit is £4,200, a gross margin of 32%. If last month the margin was several points higher on similar turnover, something has changed in prices, costs or the mix of work, and the KPIs above show where to look. These figures are illustrations only: use your own.
What to do when the numbers slip
- Pricing disposal separately in every quote
- Selling logs and chip instead of paying to dump them
- Hedge and re-cut reminders for repeat work
- Council, estate and letting agent contracts
Pick one action at a time, so you can see what made the difference. If you are asking what the business could pay you, read how much a tree surgeon earns in the UK.
How to review your KPIs every month
1. Update your records for the month: jobs, sales, costs and invoices. 2. Compare each KPI with last month and the same month last year, so seasonal swings do not mislead you. 3. Pick the one number that moved most in the wrong direction and find out why. 4. Decide one action for next month, such as a price change, a rota change or chasing a debtor. 5. Check the result at the next review.
Fifteen minutes a month on this routine is enough to catch most problems while they are still small.
Common mistakes with KPIs
Tracking too many numbers. Pick the handful that drive your profit and review them consistently.
Looking at one month in isolation. Trends matter more than single results.
Not acting on what you find. A KPI that never changes a decision is just a number.
Keeping figures in your head. Write them down, or let a spreadsheet calculate them, so nothing is guessed.
Run the numbers on your own business
The **Tree Surgery Business Management System** tracks every job, cost, invoice and VAT return, and works out your profit, margin and key figures automatically on a one-page dashboard. It costs £15 once, with no subscription. For the full start-up walkthrough, read our guide on how to start a tree surgery business.
Frequently asked questions
What is the most important KPI for a tree surgery business? Gross margin, because it shows whether your prices cover the direct cost of each job. If it is wrong, growth only makes things worse.
Which KPIs should a new tree surgery business track first? Start with average job value, crew hours sold and revenue per crew hour. They are quick to work out and show straight away whether your pricing and capacity are right.
Can KPIs help me set prices? Yes. If your margin or rate per job is below target, your prices are too low for your costs, however busy you are.
What is a good gross margin for a tree surgery business? There is no single benchmark, because margins depend on your mix of work, location and whether you pay staff. The useful test is your own trend: a margin that holds steady or rises as you grow is healthy, and a falling one needs action on price or costs.
How often should I check my KPIs? Monthly for most figures, and weekly for cash and unpaid invoices.
Do I need software to track KPIs? No. A spreadsheet that calculates the figures from your records works well for most small businesses and avoids monthly fees.