A roofing business can be an incredibly lucrative venture. After all, new buildings will always need to have roofs installed, and the older structures will need repairs or replacements when enough time passes. There are many business owners in the industry who have realized this, which is why so many of these firms exist now.
Running one of these companies is no easy feat, and the same applies to getting one off the ground. However, with the right information, it becomes possible to take the optimal steps to get started. The information below is meant to be a guide that provides the kind of direction that will help aspiring owners get the ball rolling correctly. Blue Collar Websites can also provide information on how to start a pest control business.
Starting Your Own Roofing Business Requires a Plan
As the popular saying goes, those who fail to plan are those who plan to fail. A business plan is an important first step in many startups, and roofing businesses are no different. It is crucial to plan for that first year and everything that will follow it. After all, the idea is to maximize the chances of success. Additionally, getting a loan for a new business will usually mean that a business plan needs to be shown to the prospective lender.
Here are some of the important elements that should be included in any plan of this nature:
Executive summary
Business overview
Market analysis
List of services
Competitive analysis
Employee planning
Financial plan
Pricing strategy
Of course, the entire package should be complemented by an attractive cover page. Additionally, ensure there is an accurate table of contents to help the reader navigate effectively.
Take Care of Licensing
Owning a business in the roofing industry is going to require some level of competence in the field. Therefore, it is recommended to at least do a training program, take on an apprenticeship through a trade school, or work for another business to get a better feel for the nature of the industry.
Another element that may be required is a job license. Depending on where roofing contractors are located, they may need to consider this. Other elements that influence this requirement include the intended pricing strategy and the types of projects that will be done.
In the United States, for example, there isn't a requirement at the federal level for contractor licensing. However, some states will mandate that a license be held.
It's also important to note that these documents are valid in whatever state they are obtained. Therefore, if there is a plan to expand or move to other states that also have licensing requirements, then the application and approval process will need to be repeated for each one.
What Does the Branding of the Roofing Company Look Like?
A roofing business owner will also need to think about branding. Even a company with the best services will not get much traction without a proper marketing strategy. Branding is one of the most important parts of the approach. It is necessary to attract customers, stand out from competitors, and establish the kind of trust that is desired. Some of the important parts of branding are:
Name selection
Color scheme choice
Logo design
Slogan creation
Structure and Registration
Anyone who intends to start a roofing company will need to have it properly registered. One of the most important parts of that is choosing an appropriate structure. This decision will affect what taxation for the business will look like. The available options include:
Sole proprietorship - If the intention is to work alone, this is the right choice.
Partnership - This kind of structure is a good option when the intention is to share leadership responsibilities between/among co-owners.
Incorporation - Going the route of a limited liability company is also an option. Doing so helps to mitigate risk and protect personal assets.
With the structure decision out of the way, the applicable registration process will need to be undertaken before it is possible to legally provide roofing services.
Depending on the country the business is located in, there will be different registration requirements. In the United States, the company will need to be trademarked and the domain name will need to be registered.
Roofing Companies May Require Business Licenses
This is not the same license that was mentioned before. To legally run a company in a given area, there will likely be a business license that is required. There is a defined process associated with obtaining one that includes the payment of a registration fee. Be prepared to get this done before even thinking about working on the first roof.
It is a good idea to contact the local Chamber of Commerce or Small Business Association (SBA) to see what license is needed, as there are different types available.
Take Care of the EIN
An employer identification number (EIN) will also be required if the business has partners or plans to hire employees in the United States. This is obtainable from the Internal Revenue Service. It is highly recommended to apply for this early. After all, it is never a good idea to be open to the risk of inaccurate tax filings, and not having an EIN can introduce that concern.
How Will Pricing Work?
The pricing strategy element of the business plan should've spoken to this. It is very important to decide what the roofing services to be provided will cost customers. While overcharging potential clients is not a good strategy, staying profitable is very important. Here are some of the recommendations to arrive at a fair price:
Meet with clients to discuss what the budget and expectations are. Surveying the roof and looking up business codes will also help.
Determine how much material will be needed by measuring the roof. Take note of the square footage of the home and the roof pitch.
Estimate the cost of materials needed based on the measurements taken. Consider tiling, shingles, underlay, flashing, vents, etc.
Labor costs will also need to be considered. These can be calculated by adding the total number of hours required and multiplying that figure by the hourly cost of work.
Calculate weekly overhead costs. Once these are ascertained, they can be broken down into hourly figures, which can be multiplied by the number of hours the project is estimated to take.
Add whatever markup may be necessary. This can be done by establishing a markup percentage and multiplying it by the project cost.
A New Roofing Business Will Need Its Financials Addressed
Before making or accepting any payments as a roofer, get the financial side of things sorted out. Doing so will make it much easier when tax season comes.
Start by getting a business bank account opened. This will help to keep finances organized, and it also ensures that there is a more professional air to the business. Find a bank that has low interest rates and fees. Getting a business credit card is also not a bad idea, as it helps with cash flow and makes expenses manageable during slow months.
Think about getting an accountant or bookkeeper. Having such a person is necessary to ensure that income and expenses are tracked, bills are paid, invoices are sent, payroll is managed, and finances are streamlined. There are also the benefits of having tax filing managed, getting strategic recommendations, and having the company's financial health consistently evaluated and monitored.
Getting financing for the business is also an excellent idea. After all, this is what is going to get the company up and running. There are different sources of funding, so it is important to go after whichever option seems most suitable for the business. Some of the options include government funding, business loans, or personal loans from family.
Get Insured
The roofing industry is not a bed of roses. Things can get dangerous very quickly, which is something that should never be taken for granted. After all, the work is done on top of homes. One of the best ways to reduce risk to the company and the owner is to have the right business insurance policy in place. A good one will include the following:
Commercial property insurance to take care of damages to the office and equipment.
General liability insurance, which will cover any personal harm or property damage that may occur.
Workers' compensation insurance to ensure that any employees who may be injured while performing their duties are taken care of.
Professional liability insurance, which will cover any lawsuits or claims that arise from mistakes that may be made.
Commercial auto insurance to take care of any company vehicles.
Business income insurance, which ensures that the company can remain afloat after any disaster or other incident occurs.
It may also be a good idea to have added coverage for certain situations, such as cyber liability, crime, or employment practice liability.
Secure Equipment
The jobs are not going to get done without the right roofing equipment present. Getting started can feel very expensive, but it is to be expected. Note that the costs of the said equipment can vary greatly. The numbers will depend on what kind of roofing services will be provided. Tile, slate, and other implementations can attract very different costs.
Over time, try to spread out these expenses using equipment financing on bigger purchases. It may also be a good idea to consider used equipment, as doing so will make things cheaper than purchasing everything brand new.
Take the time to check out any roofing suppliers in the area too. It helps to know which ones are cost-efficient. Additionally, this is a good time to find out if any kind of credit relationships or payment plans are possible.
Hiring Employees
A careful hiring process will be needed to ensure that the right people are working for the business. Try to consider incentives that will help with the retention of the best talent. Job advertisements are helpful, and it may also be a good idea to capitalize on professional recruiters, since they can handle a lot of the screening that will be needed.
Visiting supplier stores also is not a bad idea, as it becomes possible to talk to the people who are doing business there. Many of them are prospective employees. Credential checking is going to be a big part of the process to ensure that the team aligns with company values.
Applications for payroll accounts can be made through the Internal Revenue Service when new employees are being hired.
Where possible, giving employees training on the job can be very beneficial. This will make it easy to watch and correct them. After all, as their skills improve, so will the amount of value that they can bring to the business.
Marketing Is a Friend
Now the business is legal and staffed. It's time to take on all the commercial or residential roofing jobs that customers may need handled. As indicated before, marketing is going to be very important in ensuring that the company is known and attractive to prospective clients. To start getting jobs, here are some of the marketing ideas that may be considered:
Have some business cards printed with the important details of the firm. Contact information, branding info, and a few service listings should do the trick. Pass them along in the area.
Social media is an invaluable tool in the world of business marketing. Bear in mind that many of the people who are potential clients spend a lot of their time on these platforms. Set up business pages and targeted ad campaigns to help get the word out. Try to post regularly. Additionally, ensure there is engagement with clients who try to interact.
Get the business listed on Yelp for Business, Google Business, Angi, Bing Places, and other online directories that can help in search engine listings. Having a presence on lead generation sites can also be helpful, as many homeowners will use them to find roofing companies.
Vehicle decals can be very useful too. They are pretty easy to apply, and they can function as a billboard to help get the word out about the company.
Attend and sponsor events for networking opportunities.
Word of mouth is another underrated option to consider. However, it is most effective after a few jobs have been landed. The process can be incentivized through the introduction of a customer referral program. There is also nothing wrong if a business chooses to encourage satisfied customers to leave online reviews.
Running the Business for the Future
The work of a business owner never stops. Developing sales skills is essential to driving repeat business. It will also help to close the deal on new engagements. Owners will need to have these kinds of skills, especially in cases where there is no dedicated salesperson to take on the duties.
A winning sales strategy is non-negotiable. Thankfully, there are resources out there that can help to come up with one. Consider taking courses, reading books, or working with a sales coach to learn how to navigate the process correctly.
Pay attention to the way different approaches work to ascertain what is best for the firm. Putting a portfolio together is also a great idea. It should include photos of past work, roofing material samples, and just about anything else that potential customers may want to see when they are deciding if they want to work with the business.
Be ready to grow the company when the time comes to do so. The initial workforce may be too small when things start to pick up. More web design for roofing contractors may be required at some point, and there may be a need for more back-office staff, such as an office manager, executive assistant, marketing manager, receptionist, etc.
Final Tips
At this point, a wealth of information has been provided on getting a roofing company off the ground. It is not an easy thing to do, but it is most certainly possible. Here are a couple of words for the wise to keep in mind:
Try not to take on more than is reasonable.
Roofing equipment needs to pay for itself before more is purchased.
Pursue only the jobs that can be completed profitably.
Low-liability roofs, such as sloped ones, should be the focus when getting started.
Put money aside to cover bills and expenses that come with the off-season.
Consider related work, such as attic insulation, which can help to fill the financial gap when business is slow.
Speak with an accounting professional about the benefits of a set-aside account.
A Successful Roofing Business Needs an Outstanding Website
Opening your own business in the roofing space can be quite the venture. As you may have noted, marketing is one of the essential puzzle pieces that you will need to ensure that you are getting jobs. Having a well-designed website that doesn't cost much will always be an asset in this regard. This can also be helpful when figuring out how to start a landscaping business as well.
For $97 monthly, Blue Collar Websites can build you the perfect trade-specific site. The package comes with flexible contract terms, complete management, updates, etc. Call (740) 729-1010 for more information today!
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