How To Start a Roofing Company: 5 Tips for Success
According to research from Payscale, roofing contractors and foremen earn an average of $23.40 per hour and make about $2,000 in bonuses each year. These are respectable earnings, but what if you want to do even more with your knowledge and skillset? Why not start your own business? With the desire to be your own boss and some information on how to start a roofing company, you could be well on your way to turning your career goals into a successful business of your own.
The Planning Process
The key to knowing how to start a roofing business and have it be successful is to plan well. If you want to start a roofing business, you need to take your time. Planning can take months or even years, so if you want to get rich quick, roofing is not the way to do it. In fact, even the planning process has several steps to it.
1. Research the Roofing Industry in the Area You Plan to Market Your Business
Before you start putting yourself out there, you must research how to start a roofing company. Consider the competition first. The larger the city you're in, the more likely there are other local roofing companies already in business. You need to consider things like how much do they charge? Do they only do residential roofing, or do they offer commercial services as well? Are there jobs the competition isn't covering that you could handle?
After you know what the competition is like, consider the market in your area. What types of roofing do homes and businesses use in your city? Do you know how to repair and replace them? Can you specialize in any materials? Remember, if you live in a neighborhood that has mostly newer homes, you may need to go further away to find work. On the other hand if you plan to work in an area where new builds are going up quickly, you may find work at the construction level.
Depending on the economic development of your area, you may be unable to sustain your business on roofing alone. Are there other services you can provide? Consider whether you have the skills to offer services in siding, windows, painting, or even snow removal.
2. Create a Business Plan for Starting a Roofing Company
Researching is the first step to creating a business plan when starting your roofing company. Once you have a solid grasp of the local market and competition, you can begin to develop a business plan as part of learning how to start a roofing company. This plan will be essential when it comes to finding investors or taking out a small business loan to get your company off the ground. Your business plan should help you create a list of your goals and organize them by priority. As you write your plan, focus on your short- and long-term goals, which services you'll offer, how you plan to brand and market your business, and what you'll charge for your services. Of course, you'll also want to choose a business name.
Part of a business plan's purpose is to help you determine how much your startup costs are. Remember to factor in registering your business, receiving the proper certifications and licenses, marketing and website costs, equipment and supplies, and anything else that you'll need to pay for before you even begin your first job.
How to Start a Roofing Company: Making Your Business Legal
Even if you know the basics of how to start a roofing company, you must pay special attention to the process when it comes to ensuring you can legally operate your roofing company. This means staying organized and meeting deadlines.
3. Organize Your Company's Office
Even if you don't have a brick-and-mortar storefront for your roofing company (most don't, so that's okay), you'll still need to set up a home office and create a professional website. Your website should detail your experience and the services you provide, as well as have a contact page. You should also have an email address and phone number dedicated solely to your business, so you don't miss important correspondence. Finally, your office should include forms for estimates and bills, as well as software that will track your leads, jobs, sales, estimates, and more. Organization is an important part of knowing how to start a roofing company.
4. Register Your Roofing Business
Once you have a strong business plan and a well-organized office, it's time to make your roofing business legal. This is an essential part of learning how to start a roofing company. It involves choosing a business structure (such as a sole proprietor or a corporation), registering your company's name, and registering it as a business entity. You must also register as a contractor in your state, create a business bank account, and get an employer identification number for tax purposes. Finally, you'll need liability insurance and any other coverage required by your state, as well as any city licenses or permits that are required.
Ensuring Your Success
While much of starting a roofing company is methodical and requires lots of research and paperwork, that isn't all there is to running a business. Other strategies are also important for moving you along your path to success.
5. Find Ways to Save Money
Overspending is one of the main reasons that new businesses end up never getting off the ground, no matter how much the owners know about how to start a roofing company. You can reduce the risk of this happening to your company by finding ways to save money along the way. Take your equipment and supplies as an example. Yes, you need a work truck, but does it need to be fresh off the lot? Do your basic supplies need to be brand new or are there things you can purchase certified pre-owned that you know are just as safe and effective?
It also helps to consider your advertising campaigns. Television commercials are expensive and may not be as effective as drawing up flyers and mailing them to residences or businesses in the area. Finding ways to save money now could mean a more successful roofing business later.
Finally, don't forget to take time for yourself. The excitement of learning how to start a roofing company could have you eating, breathing, and sleeping business, which will only cause you to burn out quickly. Remember to take time off for yourself, your friends, and your family if you truly want to be successful. Check out Billy.com to learn more about starting your company and how to find exclusive roofing leads.