startING a roofing business: A CHECKLIST
After working as a roofer for some years and gaining relevant experience, it may be time to start your own roofing business. There are two ways to own a roofing company. Firstly, you can create a new company and work on it to see its growth. The second option for owning a roofing business is buying a roofing company. You might have already seen a roofing company for sale sign in your line of duty, hence the reason you want your own.
When you identify a roofing business for sale, do not jump right into it blindly. There are several factors to consider before owning a roofing business. Talented and experienced roofers launch a roofing business with ample mechanical knowledge but little knowledge on how to start and run a business.
Here is a checklist to help you consider all the factors necessary to purchase and sustain a roofing company for sale:
Relevant Expertise
To successfully operate a roofing company, you need to have relevant experience in roofing and business knowledge. Going into the roofing business without these qualifications will be a huge mistake. You need some expertise in roofing products and expertise; an experience spanning three years is recommended. If you have the experience but lack business knowledge, you can partner with someone who has relevant business acumen.
Qualities in Entrepreneurship
There are four qualities of an entrepreneur that you need to have before looking for roofing business opportunities.
Persistence – Every business requires your tenacity. Your market’s geography and seasonality can make the company unpredictable. Demand for your product will also depend on the economic climate; therefore, you should be prepared to endure volatility.
Continuous Networking – Most of your customers will come from word of mouth and referrals in the industry. It is essential to build a name within local networks to grow your business significantly. Locate networking opportunities in your locality and develop relationships when presented with the prospect.
Risk Taker – An expanding business incurs exponential increases in costs and liabilities. Roofing is perceived as a dangerous profession; it ranks fifth in high work-related death rates in the construction industry. The moment you decide to own a roofing business, you accept all emerging risks in the roofing industry.
Delegation – Your roofing business should not revolve around you; learn to delegate tasks to the right people. Taking on all the jobs will leave you overwhelmed, leaving you with little time to focus and expand it. A profitable business is one with functioning systems that allow it to operate even when you are out of the equation.
Capital
Your business model will determine the amount of capital you will inject into the business. Hiring people to work as employees or using subcontractors are all good business models, but it is still possible to work with low overheads. Roofing business owners who have been in the business recommend that, you grow the business slowly during the first few years. Before you buy new equipment, allow the old ones to pay for themselves; the same principle applies to hire processes; take your time when hiring but be quick when firing. Your aim should not be to fill a vacancy but to find the right person and train them properly.
Another mistake that new business owners make is to overindulge in advertising and to market their business. Advertising a business is an expensive undertaking, especially when you are not getting any referrals. It is advisable to start small within your locality, do your research testing the waters before fully emerging yourself in it.
Insurance
As stated earlier, the roofing industry witnesses high rates of accidents. Due to this, you need to purchase relevant insurance policies to shield you from liability claims. Different states have different insurance requirements for those in the roofing business. There are various types of insurance to protect your business if an accident occurs.
The first and most important is General Liability Insurance covering injury and damage to third parties who get injured in your business. Workers Compensation Insurance is also essential as it covers your employees when they acquire work-related injuries. Professional Liability Insurance protects your roofing business from lawsuits brought about by your customers on your recommendations and services.
Licenses and Permits
Just like insurance, licenses and permits requirements are determined by your state or city. Permits and licenses enable a business to operate and run legally. Inquire from your town hall or town about local business permits; you may need planning, zoning, or safety inspection approvals in some areas.
Do roofing companies make good money?
A roofing contractor makes at least $30,000 annually, but it can go up to millions. The average roofing business with a good rep, an average of 10 employees, at least two foremen can make $100,000-$150,000 annually or more.
How profitable is a roofing company?
Roofing companies that deal with residential roofing should make an average of 30%-35% gross profit. A properly run company with decent costs and quality controls can up this to 35%-40% annually. Top companies should manage 40%-45% in gross profit, with some doing better than this.
What is the cost of starting a roofing company?
In urban areas, insurance costs are higher than in rural areas. But you need $15,000-$20,000 to start a roofing company. This will cover purchasing a truck, insurance, computers, phones, and other vital necessities in running a business.
How do I start a metal roofing business?
Before starting a metal roofing business, the first thing you need to do is to connect with industry experts. People who have been in the industry for a long will offer you valuable insight into the business.
After learning from the experts, determine the products your preferred products and which manufacturers have them. Do not settle on the first manufacturer you find; talk with several, and decide on the one who best suits your needs. Experts say that it is good to work with one or two manufacturers, making you and the manufacturers more receptive.
The next thing is to gain relevant education. There are various resources that you can use to acquire valuable industry knowledge. After receiving all the education, building relationships, and product information, you can now let people know about your business through marketing. In the metal roofing business, you need to develop a strong presence online; a reliable website drives traffic to the company.
Best roofing franchises for sale
Metal and steel roofing is a fast-growing industry in the last few years. We are slowly moving from asphalt roofing products that depend on petroleum to adopt renewable and recyclable roofing products that last longer.
When looking at buying a roofing company, you can choose to look for roofing franchises for sale. One such franchise is ABC Premium Steel, which will give you a continuous revenue stream. The roofing product provided by this franchise can be used on sidewall and roofing applications. You will have to take your employees for installation training in a facility that will be communicated to you.
In conclusion, roofing business opportunities are available in most states. When thinking about owning a roofing business, the main thing to consider is your preparedness, both in skills and capital. If you have the mechanical aptitude but are not business savvy, you can always hire someone qualified to run a business. You can bring them in as an employee or as a partner. If you are lucky to have both the skill and business knowledge, you can go ahead and purchase your roofing business.
