This guide will show you how to start a roofing business.
The construction industry is vast and has different specializations.
One of the significant specializations is roofing. Major businesses have been built around roofing services.
The construction industry offers loads of opportunities if you know what to do. A roofing company is a vital component of the industry we’ll be talking about.
Starting A Roofing Company
Each year, millions of businesses are launched covering diverse niches. While this is true, the sad reality is that only a handful of these ever become successful.
This information will be disheartening for persons seeking to start their businesses.
Here, it’s clear that optimism alone won’t do much to guarantee success. However, here is how to make 100k in roofing sales.
Residential or Commercial
This has a lot to do with your scale of operation.
More investments will be necessary on a commercial scale. The reason is simple: you’ll be dealing with major roofing contracts, which can be more complex than those handled by residential roofing companies.
With this knowledge, it’s crucial that you fully assess your capacity before anything else.
Experience is Essential
Before starting a roofing company, one of the essential things to have is experience. This depends on how long you’ve handled or have been involved with roofing projects.
The experience you garner from your time in the industry will help you identify opportunities and set up a successful operation.
However, there are few cases where roofing company owners who aren’t experienced still succeed. Their success in setting up a successful roofing company is tied to their collaboration with experienced contractors.
Here, partnerships with pros help cover up their deficiency.
Your Preferred Roofing Business Type Matters
Another fundamental consideration you’ll have to make is choosing the type of business to do. There are different niche areas you could engage in.
Each has its unique requirements. You could start a gutter cleaning service, roof replacement company, or roof replacement company.
These are only a few examples of the types of roofing businesses you could establish.
It’s clear that your experience and expertise will determine the option you choose.
Planning A Roofing Business
The first step to success involves developing a roofing business plan.
Your plan should be a detailed and carefully written document that highlights every aspect necessary for success.
This should include your target market, choice of a suitable name, startup and ongoing costs, and the time it will take to break even.
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Planning
Proper planning is the bedrock of any successful business enterprise.
The same goes for a roofing company. Planning, in this sense, involves putting together all the things necessary for a smooth takeoff and operation.
Planning begins from the earliest stage of the business (conceptualization) to its actualization and continued running.
A roofing company business plan is a vital document that helps document all the business’s running processes. It gives you more clarity, direction, and focus on your objectives.
Financial planning requires professional input as part of the planning process. This is where an accountant’s expertise comes into play.
Hiring an accountant does a lot to help your business become financially viable.
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Target Market
The construction or housing industry is never complete without roofing companies or businesses. However, not all clients want the same product. As such, you’ll need to choose your target market.
There are also different players, including installers, manufacturers, and distributors.
Choosing your niche and target market will be a necessary step. Installers or roofers prefer flat rather than steep roof installations.
The former is less complicated and dangerous to perform than the latter.
Therefore, as an installer, you’ll target clients requiring flat roof installation.
Identifying your target market helps you design or craft your message to fit or solve their specific problems.
What more? You’ll need to work closely with property developers to attract more contracts.
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Choice Of A Suitable Name
When picking a name for your roofing business, it will serve you well to ensure it is unique and unforgettable.
Try avoiding unusual spellings, making the name easy to remember and pronounce. Keep things simple and ensure they make some sense.
Are clues included in the name? There should be.
Also, seek the opinion of friends and potential clients on what they think about the name you’ve picked for your roofing business. Avoid boxing yourself in; more importantly, such a name should be available for use.
An online search is one way to know if it’s available.
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Startup And Ongoing Costs
Before proceeding further, you’ll need to factor in the cost of starting a roofing business.
Such costs include the startup and ongoing expenses. You’ll need to provide a breakdown of the total cost for actualizing your business. The ongoing cost will be required to continue smooth operations until the company can sustain itself and become profitable.
A lot of surveys will be required to calculate the startup and ongoing costs. You’ll need to find out what tools or equipment are needed, as well as renting costs and wages.
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Have a Pricing Structure for Services
This is one of the things you’ll need to put in place to start a successful roofing company.
After calculating the costs of setting up your operation, you’ll need to add a markup to help guarantee profitability. Another pricing consideration is comparing your prices with those of your competitors.
Having an idea of pricing for services within the roofing industry can help set a proper pricing structure.
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What More Should Your Plan Have?
Your plan should be as comprehensive as possible to make your dream of starting a roofing business a reality.
This should include the time it will take for the business to break even, how to make money, determining the pricing structure, and working out how much profit you’re likely to earn over time.
Choose An Appropriate Legal Entity
The legal entity you choose or your roofing business will influence your business’s success.
There are several types of entities, including Doing Business As (DBAs), sole proprietorship, partnership, limited liability company (LLC), and corporation.
It’s necessary to seek legal advice as to which entity best serves the needs of your business. Now, there are several advantages or benefits conferred by such entities. Each has its unique benefits.
Without setting it up from the start, it won’t protect you from various potential problems.
Some benefits include keeping your business’s assets separate from personal assets. Separate entities allow for more excellent asset protection. What more? You get to build business credit in addition to enjoying tax benefits, lower audit rates, and earning more money.
Register For Taxes
Your roofing business needs to be registered for taxes.
This process begins with the application for a tax ID. The Internal Revenue Service (IRS) issues the Employer Identification Number (EIN) for roofing businesses with a workforce.
You can easily apply for this number in various ways. An online search will yield many relevant results on how to proceed.
Open A Business Bank Account And Credit Card
Part of the requirements for starting a successful roofing business involves opening a bank account and credit card.
There are benefits attached to this. First, your business records are much more organized, you have an accurate record of taxes and deductions, credit cards can be accepted, and your business looks more professional.
Business Accounting Is Essential
Business accounting must be in place to keep track of all expenses and income.
Several benefits are attached, including the ability to forecast revenues, create and control budgets, track business expenses, and make informed major business purchase decisions.
Business accounting also helps with better monitoring your business’s financial health, making personnel decisions regarding layoffs and staff additions, monitoring business growth, and keeping accurate records.
Permits and Licensing
One thing you need to figure out is how to obtain the necessary permits. Many states have different permits and licensing requirements. You’ll need to find out what applies to your location and obtain it.
Licensing Requirements (State & Local)
Not all states have licensing requirements for roofing businesses. It is best to check with your city, town, or county clerk’s office to find out what licensing regulations apply to your roofing business.
Business Insurance
Getting your business insured is an essential part of business you shouldn’t take lightly.
As you begin to hire workers, getting workers’ compensation insurance will be necessary. That way, you’ll protect your clients, workers, and business from accidents, among other things.
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Hire your Workforce
The quality of a business’s workforce equates to its ability to deliver satisfactory service. Hiring a workforce is usually a painstaking process that carefully selects the best hands available.
Recruiting wisely does a lot of good for your business operations as it allows you to work with people with an appreciable level of expertise.
Sometimes, this undertaking can prove overwhelming. Under such circumstances, you should outsource your recruitment needs to the proper organization.
Remember, the capacity and expertise of your workforce determine how effective and sound your operations will be.
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Have a Sales Department
It’s not enough to set up a roofing company without having a sales department.
A sales department is paramount as it helps develop effective marketing campaigns to promote the company.
Also, the quality of the workforce selected to run the sales department determines its effectiveness.
The sales department is crucial to attracting the right clientele. To have a thriving business operation, you’ll have to give it your best shot.
Conclusion
These are some of the essential steps for starting a roofing business. Proper implementation of the above-listed strategies helps your business succeed.