How To Start A Roofing Business

In this guide, we’ll show you how to start a roofing business.

The construction industry is huge with different specializations.

One of the very important specializations is roofing. There’s no denying the fact that 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.

Residential or Commercial

This has a lot to do with your scale of operation.

On a commercial scale, more investments will be necessary. 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 important 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 is dependent on how long you’ve handled or have been involved with roofing projects in the past.

The experience garnered from your time in the industry will go a long way in helping 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 of these has its unique requirements. You could start a gutter cleaning service, roof replacement, gutter replacement, or roof replacement company.

These are only a few examples of the types of roofing businesses you could establish.

Here, it’s easy to see that your experience and expertise will play a role in determining the option you choose.

Planning A Roofing Business

The first step for 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 as well as the time it will take to break even.

  • Planning

Proper planning is the bedrock of any successful business enterprise.

The same goes for a roofing company. Planning in this sense has to do with putting together all the things necessary for 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 running processes of the business. It gives you more clarity, direction, and focus on your objectives.

As part of the planning process, there needs to be professional input in your financial planning. This is where the expertise of an accountant comes to play.

Hiring an accountant does a lot to help your business become financially viable.

  • 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 ranging from installers, manufacturers, and distributors among others.

Choosing your niche and target market will be a necessary step to take. In the case of installers or roofers, there’s a preference for flat, rather than steep roof installations.

The former is less difficult and dangerous to perform than the latter.

Therefore, as an installer, you’ll be targeting 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.

  • 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 and make the name easy to remember and pronounce. Keep things simple and ensure it makes 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, and more importantly, such a name should be available for use.

One way to know if it’s available is by performing an online search.

  • Startup And Ongoing Costs

You’ll need to factor in the cost of starting a roofing business before proceeding further.

Such costs include the startup and ongoing costs. You’ll need to provide a breakdown of the total cost for actualizing your business. The ongoing cost will be needed to continue smooth operations until the business can sustain itself and becomes profitable.

In coming up with the startup and ongoing cost, a lot of surveys will be required. You’ll need to find out what tools or equipment are needed in addition to renting costs as well as wages among several things.

  • 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.

Having worked out the costs involved in setting up your operation, you’ll need to add a mark-up to help guarantee profitability. Another pricing consideration is by making a comparison with your competitors.

Having an idea of pricing for services within the roofing industry goes a long way to help in setting a proper pricing structure.

  • What More Should Your Plan Have?

To make your dream of starting a roofing business a reality, your plan should be as comprehensive as possible.

This should include the time taken it will take for the business to break even, how to make money, determining the pricing structure as well as working out how much profits you’re likely to earn over a while.

Choose An Appropriate Legal Entity

The legal entity you choose or your roofing business will influence how successful your business becomes.

Now, there are several types of entities ranging from 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 need 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 a variety of potential problems.

Some of the benefits include keeping the assets of your business separate from personal assets. Separate entities allow for greater 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. This ID is called the Employer Identification Number (EIN) for roofing businesses having a workforce. The Internal Revenue Service (IRS) issues the EIN.

You can easily apply for this number in a variety of ways. An online search will turn up lots of 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

To keep track of all expenses and income, business accounting will need to be in place.

There are several benefits attached which include being able to forecast revenues, the ability to create and control budgets, tracking business expenses, and making informed major business purchase decisions.

Business accounting also helps with better monitoring of the financial health of your business, making personnel decisions regarding layoffs and adding staff, monitoring of business growth, and keeping accurate records.

Permits and Licensing

One of the things 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 them.

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 doing business you shouldn’t take lightly.

As you begin to hire workers, it will be necessary to also get workers’ compensation insurance. That way, you’ll be protecting your clients, workers, and business from accidents among other things.

  • Hire your Workforce

The quality of workforce a business has equates to its ability to deliver satisfactory service. Hiring a workforce is usually a painstaking process that carefully chooses the best hands available.

Recruiting wisely does a lot of good to your business operations as it avails you the opportunity of working with persons with an appreciable level of expertise.

Sometimes, this undertaking can prove overwhelming. Under such circumstances, you should outsource your recruitment needs to the right organization.

Remember, the capacity and expertise of your workforce determine how effective and sound your operations will be.

  • Have a Sales Department

It’s not enough to set up a roofing company without having a sales department.

The need for 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 how effective it is.

The sales department is crucial to attracting the right clientele. You’ll have to give it your best shot to have a thriving business operation.


These are some of the essential steps for starting a roofing business. Proper implementation of the above-listed strategies helps your business succeed.