Ner With The Right Team
Start with a small team that covers the most essential aspects of a successful roofing business:
- Foreman/crew leader
- Administrative/office staff
- Sales representatives
Use resources such as job boards, local trade associations, and recommendations from friends to build a strong team. Youll want to hire people who are committed to the goals of your roofing business, excited about the industry, and willing to work hard.
Are You Ready To Start A Roofing Business
Starting a roofing company can be a lucrative business option. You should follow all of the steps mentioned above to set up your new roofing business.
Do you have other questions about starting a roofing business? Ask them in the comments below. Well be happy to help you set up your small business.
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To Start A Roofing Business You Need To Save Money
Just like any business, to start a roofing business, youll need money to fund your dream. This money should be enough to support all the business requirements. The amount of money, which is your working capital, will depend on your roofing business needs and business model. As a beginner, most roofing business owners recommend a slow initial growth. In this case, you should recover your investment in machinery before buying more.
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Where Choose Your Business Premises
In the early stages, you may want to run your business from home to keep costs low. But as your business grows, youll likely need to hire workers for various roles and may need to rent out a warehouse facility for roofing materials storage. You can find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.
When choosing a commercial space, you may want to follow these rules of thumb:
- Central location accessible via public transport
- Ventilated and spacious, with good natural light
- Flexible lease that can be extended as your business grows
- Ready-to-use space with no major renovations or repairs needed
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License Permits And Becoming Legit
One of those upfront expenses youll be dealing with is getting licensed as a business and as a roofing contractor. While there is no blanket requirement for the entire U.S., some states have licensing and bonding requirements in order to operate as a roofing specialist. Most states and in Canada contractors are required to have a general contractors license. Different types of general contractors often need special licensing. This normally is gauged on the value of the jobs which fall under a specialty. Since roofing projects are generally high-ticket items, many states have requisite roofing licensing and certification rules. At the same time, many states dont require any license, no matter what type of work you do. You only need to register with the State Contractors Board or the local Department of Labor. License boards set rules and requirements aimed at protecting consumers, and preventing unscrupulous individuals from exploiting legitimate, compliant roofing companies by offering substandard services and/or materials.
- Research How-Tos on getting licensed
In some places permits vary by locality, right down to counties and towns. Most of the information you need can be searched and found online.
Research Current Trends Plus Legal And Tax Issues
- repairs to various types of roofing, perhaps including emergency repair work
- chimney repairs
If you have the appropriate skills you may decide to specialise in a particular type of roofing, for example stone roofing, traditional metal roofing , other heritage roofing, wooden shingles, green or living roofs, or thatching. You might also decide to work on solar panel installations if you have the right knowledge and expertise.
If you decide to offer an emergency service you will probably make this available 24 hours a day 365 days a year. Emergency customers will expect a prompt and reliable service. You might decide to team up with another roofer to offer this level of emergency cover.
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Running A Successful Roofing Business Is Within Reach
While each of these companies is unique, their paths to success had one thing in common: using AccuLynx roofing CRM software to manage their businesses. Their stories show that the right tools can go a long way towards improving the way you work, and that using a single system to manage every aspect of your business leads to better outcomes for your business as a whole. To learn more about how AccuLynx roofing software can help you grow your business, visit our guide to roofing software. And to hear more success stories from contractors who use AccuLynx, you can find testimonials and case studies here.
Before Jumping Straight In Plan Your Next Steps With A Business Plan
If you dont know where to begin with writing a business plan, thats ok, heres a free and easy to use template to get started.
A business plan is a written document that outlines where you are now, where you want your business to be in the future, and how youre going to get it there.
You wouldnt go to a roofing job without a plan, would you? Its the same for starting your business!
Check out this guide for more info on how to write a business plan:
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Starting A Roofing Business
Are you planning to start a roofing company? Are you already operating a roofing business but just arent sure if all your bases are covered? Have you looked into your operating efficiency and are you wondering if your expenses are too high? Are you harnessing the benefits of technology with tools uniquely designed to start roofing jobs right off the bat?
Since 2012, iRoofing has been working with thousands of contractors across North America. Weve gained more than a little insight into what new roofing companies might be missing what established roofing operations can be doing better and what those success secrets are among the best-of-the-best roofing businesses.
Lets start out with the basics of starting a roofing business and establishing yourself as a legitimate specialist in this exciting field. After reading this article and researching information specific to your local market, youll be better prepared to run your new roofing business like the best of breed competitors youll be up against.
Select A Business Name And Business Structure
Choose a unique and memorable professional business name. It should be something related to the services you offer.
After that, decide on the business entity you want to form. Your options include:
- A sole proprietorship
- Limited liability company
Forming an LLC protects your personal assets and reduces your liabilities if an outside party were to take legal action against your business. Plus, it offers flexibility regarding operational and taxation structures.
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How Much Does It Cost To Start A Roofing Business
Startup costs for a roofing company range from $6,500 to $13,000. Youll need a truck to transport materials, ladders, and tools. Youll also need a roofing contractors license from your state. Requirements vary, but often you have to show a certain number of years of experience and education, and also pass an exam.
To learn to roof you can do an apprenticeship or attend a trade school in your area. You could start your education with an online course, such as from The Roofing Academy, and decide if its for you.
You might get roofing certification from the National Roofing Contractors Association. A certain amount of experience is required for certification, and exams must be passed.
Youll need a handful of items to successfully launch your roofing business, including:
- Roofing nail guns
Open A Business Bank Account
Before you start making money, youll need a place to keep it, and that requires opening a bank account.
Keeping your business finances separate from your personal account makes it easy to file taxes and track your companys income, so its worth doing even if youre running your roofing business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses just inquire at your preferred bank to learn about their rates and features.
Banks vary in terms of offerings, so its a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN , articles of incorporation, and other legal documents and open your new account.
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First Things First: Taxes And Licenses
Taxes are a certainty in any business. What taxes you are required to pay and how you file them depends on how you structure your roofing company and what state your business is in.
You may check with a professional when filing your business taxes. For federal tax information you can consult theIRS directly. Also, the U.S. Small Business Association has information on taxes.
Licensing for a roofing company Is not so certain. Some states require licenses, and some do not.
In Florida a license is required, and the licensee must meet certain experience requirements and pass an exam. In Texas however, there is no license requirement for roofing contractors. Most states have information about contractor licensing on their official websites.
For licensing information, you can also consult the National Association of Sate Contractors Licensing Agencies . This is a nonprofit organization that promotes for license uniformity and best practices within the construction trades.
Have A Plan For Your Roofing Company
If you want to start a roofing company, you must have a plan. Just dont get so caught up in planning that you dont execute.
If youre going to apply for financing or a small business loan, you must have a written business plan. Here are a few of the basics to include:
A narrative of your roofing company: Your business narrative is just a paragraph describing your business. You can write it in a who, what, when, where and why type of format.
- Who: Who are you? What is the name of your roofing company? What makes you unique?
- What: What services does your roofing company offer? Will you work on new construction? Residential? Commercial?
- When: When will you operate? You may want to consider business hours or seasonal restrictions.
- Where: Where will your roofing company do business? How far are you willing to travel for jobs?
- Why: Why do you do what you do? No need to get all existential. Just throw in a word or two about why you enjoy doing roofing.
An example of a narrative may be something like this:
Joes Roofing was started by Joe Jones to offer residential roofing services to Hillsborough County. We operate 12 months out the year weather permitting. We take great pride in our workmanship and we like doing our part to make sure our customers have a good roof over their heads.
Choose your business structure and include it in your business plan: Choose your business structure based on your risks, the protection you need and the legal benefits they offer.
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Who Is Your Roofing Target Market
Knowing your target customers will help you define your work policies to suit their preferences and interests. For example, since youre starting a roofing business, potential customers include the residents, construction contractors, proprietors, and other small company owners in the region where your roofing business is located.
Step : Set Up Your Business Phone System
Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. Thats not the only benefit it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.
There are many services available to entrepreneurs who want to set up a business phone system. Weve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2022 to find the best phone service for your small business.
Recommended Business Phone Service: Phone.com
Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it’s fair pricing.
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Easy Job Tracking And Management
In order to compete in a crowded market, your roofing company needs to follow up with leads promptly and keep jobs moving forward. Roofing contractor software with robust job/project management capabilities will help you track leads and stay updated on the status of your jobs so nothing falls through the cracks. Once your jobs are in production, your roofing CRM will enable you to manage schedules in real time and keep work progressing efficiently.
How To Encourage Word Of Mouth Marketing
Word of mouth marketing is a powerful tool for gaining new customers and establishing a reputation as a trustworthy roofing company. These strategies can help you gain referrals, encourage word of mouth marketing, and grow your customer base.
- Put up yard signs. Ask your customers if you can put a simple sign with your company name in their front yard. These signs help promote your roofing company to the neighborhood and turn your current project into an advertisement for your services.
- Offer incentives for referrals. Offer a reward or discount to your customers for referring someone they know to your roofing company. This is a great way to generate new customers from the networks of your current customers.
- Encourage reviews. Include language on your website, in your emails to customers, and on your sales materials that reminds customers to leave a review of your roofing company. You can also offer an incentive, like a gift card, to any customer who leaves a review.
- Follow up with past customers.Get in touch with past customers periodically to see if they need any repairs or have any questions you could answer. Checking back in with former customers reminds them of the great work you did, making it more likely that they will use your services again and recommend them to others.
Working to deliver great customer service while encouraging reviews and referrals will help you reach more potential customers and take advantage of existing networks.
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The Software To Help Your New Roofing Company Grow
Starting a roofing company can seem like a daunting challenge. But with the right tools and strategies, you can build a thriving business.
AccuLynx is an all-in-one business management software platform created specifically for roofing contractors. As a leader in the roofing industry, weve helped thousands of companies grow their profits and scale their businesses. By bringing together every aspect of your business in a single cloud-based system, AccuLynx helps you stay organized, work more efficiently and reduce repetitive tasks.
How Much Should You Charge For Roofing Services
Your prices will depend on the size of the roof and the materials used. You should estimate your total costs of materials and labor and aim for a profit margin of about 30% when youre running your business from home.
Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.
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Take Care Of The Legalities
Once you decide on a name for your new roofing business, you need to make it a legal entity. This could be an limited liability company or a corporation. After youve registered your business for that status through your state, youll need to obtain a tax identification number. This is as simple as going to the IRS website and filling out a quick application.
Youll use that identification number to open bank accounts, apply for loans and pay taxes for your business.
Since your roofing business offers a service that can pose risks to your workers safety, youre going to need additional licensing and general liability insurance to protect you, your employees and your customers.
Please contact a lawyer or mentor in your local roofing industry to find out specific rules and regulations for the area where you are operating your business.