If you’re thinking about starting a roofing company, then you’re already ahead of the game. The roofing industry is booming due to rapid urbanization and increased construction work. According to expert market research, the roofing industry is an extremely lucrative trade for entrepreneurs.
As a new entrepreneur, you may be stuck in long hours of planning and researching to kick-start your roofing business. To help you with this daunting task, we have created a roadmap to starting a roofing business and outlined the aspects and considerations in roofing business ownership.
Dive deep into the market
Take the time to understand the big picture of the roofing industry and its market conditions. It will eventually help you find various business opportunities that eventually grow your roofing business. Gather information from various resources like roofing magazines, market trends reports, websites, and social media. You can also consult with roofing industry professionals and roofing contractors.
By conducting meticulous market research, you can
- Pick the most suitable business structure
- Set your business objectives
- Get market insights into the roofing industry
- Examine the competition and see what’s missing
- Determine the types of customers and identify your target customers
- Choose types of roofing services appropriate to your business needs
- Gain in-depth knowledge about marketing channels
In order to run a roofing business successfully, you don’t just need the courage to start one but also an ample amount of technical knowledge to back up the courage. For, you cannot rely on your employees for every simple task. If you don’t have roofing business experience, you may become directionless at times. Hence, it’s mandatory to acquire knowledge before you take the leap.
Learn how roofing professionals do their roofing job and gain hands-on experience if possible.
- Seek advice related to technical aspects of roofing from industry experts, roofing professionals, and roofing contractors.
- Get hands-on. Involve yourself in training and activities to get the essential experience in roofing techniques.
- Learn technical information through magazines, books, exclusive roofing websites, and videos.
Prepare your business plan
A business plan is much more than a mere document. When you start a roofing company, your business plan will act as a roadmap that guides you through thick and thin.
An ideal business plan needs to answer some questions like,
- Which type of roofing company would you choose to start? (residential roofing, commercial roofing, or industrial roofing)
- What do you aim to achieve with your roofing company?
- How much investment does it take when starting a roofing business, and how do you plan to acquire it?
- How many personnel will you require?
- How will you make a difference in the roofing industry?
- How will you promote your roofing business?
- What kind of roofing equipment is required?
- What roofing services will you provide?
- How will you price your roofing services?
Many roofing business owners find it beneficial to take a step back and investigate their ideas and comprehend the scope and strategy behind their approach. A good business plan helps you focus on the right objective and prevents you from being sidetracked by inconsiderate details.
Plan your finances
List all your business expenses and figure out how much they’ll cost. You need to calculate start-up costs such as
- Business plan expenses
- Market research expenses
- Office and warehouse costs
- Equipment and supplies costs
- Licenses and permits
- Insurance costs
- Lawyer and accountant fees
- Employees salaries
- Marketing and advertising costs
- Roofing software investment
Once you’ve estimated the expenditures, create a detailed financial report for your reference. You can also showcase this financial analysis report when you present your business idea in front of a panel of investors.
Complete your legal paperwork
Once you’ve chosen your unique roofing business company name, register it as your DBA(doing business as) name. Seek a lawyer’s advice to complete the registration of your roofing company.
You may consider choosing any one of the most popular business structures listed below
- Sole proprietorship
- Limited liability company(LLC)
Conduct thorough research on the merits and demerits of these business structures and pick the one that meets your needs. Your choice of business structure can affect an array of things ranging from inherent business risks to task implications and control over business decisions. So, make a wise choice, you can also approach your lawyer to help determine the best business structure.
Open your business bank account
You must not manage all your business expenses in your personal account. Mixing business and personal finance is a recipe for chaos. Try to open a separate business bank account to manage and track your roofing company’s expenses.
A business bank account will make it easier to obtain business loans and business credit cards to expand your business. Additionally, it saves you a ton of effort and time when it comes to things like partnership discussion, incorporation procedures, and tax computations.
Obtain your federal and state tax ID
You’ll need a federal tax ID and state tax ID once you’ve registered your roofing company. To begin, you need to obtain an EIN (Employer Identification Number), which serves as a substitute for your social security number when filing taxes with the internal revenue service (IRS). EIN is also mandatory to apply for a business bank account, permits, and licenses.
Apply for an EIN for free on the IRS website or by mail by providing your roofing business name and business structure. The procedure for obtaining a state tax ID is similar to getting a federal tax ID, but it varies by state. Check your state government websites for precise instructions.
Apply for permits and licenses
Ensure that you have a proper roofing license before you start providing roofing services. The procedure for getting a roofing license and license fee differs by the state you live in. The license fee also varies.
Some states require experience certification to obtain the roofing contractor license. You also need a roofing contractor license to open your business bank account. You could refer to your state’s website or consult with a lawyer to know what kind of permits and licenses you need.
Protect your business with insurance
Choose the right roofing business insurance coverage that suits your business needs. Running a roofing business can be hazardous at times, so it is wise to get insurance to protect your roofing company, employees, and customers. Consult with a licensed insurance agent to get the right insurance policy.
Worker’s compensation: It is essential insurance coverage that pays for work-related injuries.
General liability insurance: It covers third-party risks such as property damages and injuries to persons not affiliated with your company.
Professional liability insurance: It protects your roofing company against legal actions.
Roofing contractor’s tools and equipment insurance: It covers your tools and equipment against damages.
Purchase roofing materials
Roofing materials and equipment may vary based on type of roofing company you start and the service that you offer. Make a list of the roofing services you offer and learn what kind of roofing equipment you need to perform those services.
Carefully choose high-quality roofing materials and tools to maintain a good reputation amongst your customers. Purchase only necessary equipment and materials else you will end up burning a hole in your startup budget.
Hiring professional roofers can be quite a challenge. The best way to find qualified roofing technicians is through recommendations from roofing material suppliers, local roofing companies, and reliable resources. You can also use a tool like Field Nation to find the right technician.
Identify all the positions that need to be filled and create a job description for each one. Mention the necessary training and certifications that candidates must have. Post your job openings on social media, employment sites, and newspapers. Try assessing the performance of potential roofing technicians beforehand and provide them with sufficient training, before you let them embark on a roofing project.
Develop a marketing strategy
You’ll need to plan your marketing strategy early on. Utilize various marketing channels for reaching out to your potential customers. When they need a roofing job done, most customers do not waste their time hunting a local business and typically call the first trustworthy company they come across.
To become a trustworthy prospect for your customers,
- Create a roofing service website.
- Indulge in word-of-mouth marketing through acquaintances and the local community.
- List your roofing business in various local business directories like Yelp, and Google My Business.
- Optimize your website content with SEO (search engine optimization) practices.
- Build your website with content like blogs, videos, and eBooks
- Use social media to post about your roofing company. Create a solid follower base by sharing valuable content.
- Try pay-per-clicks and paid social media ads.
Use roofing software
Relying on paper-based tools and managing all your end-to-end operations using legacy software can get tedious. As a growing roofing company, you need to be more productive and provide excellent customer service.
Use roofing software to simplify and optimize all your roofing business’ daily operations, including
- Scheduling and dispatching your roofing technicians without hassles.
- Tracking your roofing technician’s location in real-time.
- Creating and sharing roofing estimates and invoices instantly.
- Providing a better customer experience with features ranging from online appointments to part and online payments.
- Improving roof technicians’ work efficiency with an AI-powered mobile app.
Learn all the benefits of having roofing software here to know how it can improve your business productivity and revenue.
Now, you’re all set up to kick-start a roofing business. Perform thorough market research, create a solid business plan, stay on the right side of the law by completing all legal paperwork, hire the right roofing professionals, and market your roofing business the right way.
Streamline your complicated roofing business operations with roofing software. Sign up for a free trial of Zuper today and see how effortless your roofing business operations could be with the right roofing software.