If you’re wondering how to start a roofing company, then check out this insightful blog post. It’ll give you plenty of actionable advice that’ll help steer you in the right direction. Click here for more info!
Do you want to know how to start a roofing company?
Now is a good time to do so because more homes are getting crushed by storm damage. That creates a huge opportunity for roofers.
Roofing companies can be very lucrative, but like any business, they’re also a huge financial risk.
Don’t become and other statistic and be a business that goes under.
Read on to learn everything you need to know to start a roofing business.
Are You Experienced?
The first thing you want to establish is whether or not you have the right experience to start a roofing company.
Is experience necessary? If you plan on doing the roofing work yourself, it certainly is.
If you don’t have experience, how will you get it? An apprenticeship with another company is a good way to start. You can learn about the trade and learn how the business is run.
Do you plan to hire other roofers who have more experience than you, so you can focus on the business?
What kind of business experience do you have? How much do you know about marketing, sales, and finances?
This kind of experience isn’t required, but it’s certainly useful.
Take stock of what your best qualities are as a roofer and as a business person. Think about the day to day operations. Are you strong at sales and weak when it comes to managing money?
You’ll also want to think about the customer’s journey. A successful business is based on happy customers. How can your skillset give your customers a great experience?
Note where your weaknesses are and what you can do to fill in those gaps.
Knowing how to start a roofing company really starts with a business plan.
How do you plan to fund your business? You’re going to need trucks and equipment to get started, and they don’t come cheap.
If you plan on asking for loans or an investment, you’re going to need a business plan. This shows that you’ve thought out the business and are aware of any risks.
This plan is critical because you need to establish what your overall costs are going to be. You need to figure out materials, labor, operational, administrative, and marketing costs.
That will help you price jobs out to be totally profitable, not just based on materials and labor.
A good business plan will make you do research on your competition and your target market, whether you work on the commercial or residential side.
Capital for Equipment & Workers
In your business plan, you should have a good idea of how much money you’re going to need to start your roofing company.
Early on in the planning process, you need to figure out if you’re going to use subcontractors or employees.
There’s are advantages and disadvantages to each. Contractors can set their own hours, but you don’t have to pay for health insurance or taxes for them.
Employees cost more, but you have more control over the work that they do.
You’re going to need a truck and tools to start your business.
Do you have to get every roofing tool imaginable? Not when you first start your business. Start with the necessary tools first and set aside money to add to your equipment as needed.
You can also buy used equipment to save on costs.
Marketing costs need to be factored into your startup costs, too. You’ll need a website, business cards, and some local advertising. You’ll want to start small early on and then grow as your business grows.
If you’re not sure how to put a website together, check out this company for inspiration.
Hire the Experts
There’s a reason why you need to assess your strengths and weaknesses. It’s so you can surround yourself with people with skills stronger than yours.
For example, you don’t know much about setting up a business structure that suits your needs. You’ll need to hire an attorney to advise you.
You’ll also need a banker, accountant, and bookkeeper to keep an eye on your cash flow.
You will need to have an excellent insurance representative who has experience working with roofing businesses.
Each state has their own insurance requirements, and you need to be sure you are protected personally and professionally in the event of any mishaps.
You’ll need to consider general liability insurance, worker’s compensation, professional liability insurance, business vehicle insurance, and sub-contractors liability insurance.
Licenses & Permits
You want your business to operate legally from the very beginning. Not doing so puts your business reputation at risk and leaves you liable for lawsuits.
The requirements vary from state to state. Some states like Alaska require separate licenses for commercial and residential projects. Other states like California require a license if the job is over $500.
Learn to Stay Profitable
Have you ever dealt with a business that gets so busy that they couldn’t handle all of the work?
They wouldn’t get back to you or do a bad job overall, right?
Don’t be that business.
It’s tempting to take every job you can to get cash in the door. When you do that, you’ll find yourself stressed because you can’t get your customers.
The lesson here is to take the jobs that you know you can do well and at a profit.
All it takes is one bad job to lose a lot of money. You have to make sure your estimates consider all of your expenses and take into account any delays or setbacks.
How to Start a Roofing Company
Starting a business of any kind is a big deal. There are many ups and downs in business and it’s important to navigate them with a clear mind.
Learning how to start a roofing company is a little bit different because you have to have a good amount of capital to start with. You need to buy equipment and pay for insurance and licensing.
Those are significant costs and add to the risk of starting a roofing company.
By planning ahead and having a great team of people around you, you can beat the odds and have a successful business.
If you want to know more about starting a business, check out this complete guide.