In this guide, we’ll show you how to start a roofing business.
The construction industry is one that 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.
Planning A Roofing Business
The first step for success in starting a roofing business begins with your 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.
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.
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 breakeven, 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 Busines 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 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.
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.
These are some of the essential steps for starting a roofing business. Proper implementation of the above-listed strategies helps your business succeed.