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Table of Contents
HOW TO START A ROOFING BUSINESS
A Roofing Business Startup Guide
The following information includes the framework for how to get your roofing company off the ground including creating a business plan, legal requirements, marketing strategies, and more. You can find much more by exploring The Roofer’s Helper website.
If you want to start a roofing business, you must realize that running a profitable roofing company is a lot more than knowing how to find a leak or replace a roof. Just because you can do a great job installing shingles, managing a crew as a foreman, or selling roofs, doesn’t guarantee that you will be effective at running a roofing company.
Being a successful roofing business owner involves discipline, organization, both business and general roofing knowledge, patience, perseverance, people-skills, and a number of other traits. A majority of roofing businesses fail within the first few years of business. This is usually not because the owner wasn’t skilled in their roofing craft, but because they were not skilled in running a business.
The U.S. Roofing Industry Overview
As of 2023, there were 96,474 roofing contractor businesses in the United States according to Consumer Affairs, marking a steady 3.7% growth from the previous year. From 2018 to 2023, the number of roofing businesses increased by an average of 3.7% annually. Among the 154,500 roofers in the workforce in 2022, 76% were employed as contractors. Notably, the roofing industry remains highly fragmented, with no single company dominating the market. Instead, it comprises many small businesses, with the three largest companies making up less than 5% of the total market share.
The states with the highest concentration of roofing contractor businesses are California, Texas, and Florida, which aligns with the large populations of these states.
Roofing Industry Market Size and Trends
In 2023, the U.S. roofing contractor industry generated $50.6 billion in revenue, reflecting a 4.6% decrease from the previous year. This decline aligns with a broader downward trend, with the industry seeing an average revenue reduction of 1.9% annually from 2018 to 2023. The roofing market is highly competitive, with low barriers to entry, making growth challenging. Roofing businesses tend to be labor-intensive rather than capital-intensive. Companies in this industry allocate the largest portions of their revenue to materials (43.1%) and wages (26.2%), while costs for rent and utilities are relatively low, at just 1.9%.
Building Essential Skills for Roofing Business Success
Here’s a breakdown of critical business skills that can make a major difference in your success:
Financial Management: Starting a business means tracking expenses, setting budgets, and planning for both fixed and variable costs. From day one, establish a clear budgeting process, separate business from personal expenses, and learn basic accounting practices. Free tools like Wave and more robust options like QuickBooks can simplify your finances.
Sales and Marketing: To grow your business, learn how to present your services in a way that resonates with potential clients. Sales skills, including active listening, responding to objections, and closing strategies, can make a big difference in client conversion rates. Marketing includes social media, your website, local advertising, and referrals.
Project Management: Balancing multiple projects and timelines is crucial in roofing. Develop a system for scheduling and tracking projects, whether through a CRM, a project management tool, or a manual calendar. Communicate regularly with customers about project progress and delays.
Customer Service and Communication: Roofing can involve unexpected surprises, so strong customer service and clear communication build trust and reduce potential conflicts. Set expectations with clients from the beginning, provide updates throughout, and promptly address questions or concerns.
Mastering these skills can create a seamless experience for your clients, encouraging repeat business and referrals that contribute to long-term growth.
GETTING STARTED
There are basically 3 steps for how to start a roofing business:
- Plan your roofing company. This is a major step, and will help guide the direction of your business.
- Register your business with proper government institutions. You need to make sure your business is operating legally in your area.
- Promote your business. A solid marketing and sales strategy is critical to attract new customers.
1. PLAN YOUR ROOFING BUSINESS
Develop a Realistic Business Plan
Before diving in to any business, you should develop a business plan. Roofing equipment and vehicles can cost a lot of money. Don’t forget about insurance costs, not only for you, but for any employees. A business plan doesn’t have to be anything complicated, but is something that will help organize your goals and priorities and help you make wise decisions. It is important to know how much you will need to spend to get started, and how much you will need to make (after expenses) to support yourself.
Not everyone wants to have a multi-million dollar roofing company with hundreds of employees. If your goal is to have a small to medium sized business, then the goals you set will be much different from a business plan for a large corporation.
Either way, you need to have a solid plan set in place that will help you achieve the goals you set for your business.
The larger you want your company to be, the better you need to be as a business owner, as the responsibility will be greater. It is not wrong to dream big, but if you are a new business owner, it is best to start small and work your way up.
A mentor can be a huge asset for anyone who wants to start a roofing company. The ability to learn from another successful roofing business owner can save you time, and help you avoid many costly mistakes.
Research, Research, Research
When starting your business, an important part of planning is research. Depending on your location, a running a successful roofing business can potentially be difficult. You may want to find answers to these questions before starting your company:
- What is the competition? How many other roofers are in business in my area? What are they charging? Would commercial roofing be a better option than residential? Residential roofing accounts for about 80% of the market, while commercial roofing makes up the remaining 20%.
- What types of roofs are in your area? Are these the types of roofs you want to repair/replace? Is there a certain type of installation/repair you can specialize in?
- How old are the homes in your area? Is there a great need for new roofs, or mostly repairs?
- How many homes are in your proposed service area? Are there enough potential jobs to sustain a full time business?
- What are the economics of your area?
- If a full-time roofing business can’t be supported, are you willing/able to offer additional services (snow removal, painting, siding, windows, etc.) in order to produce a full-time income?
Below are some additional points to consider in the research/planning process:
- Set short and long-term goals – Plan your roofing business before you spend a dime.
- Decide what services you will offer – Decide the scope of your business. How many different services and options will you offer customers?
- Find a niche – What will be your specialty? What will set you apart from the competition?
- Choose a business name – Put some thought into deciding your company name. You could always change it later, but a name change could hurt your business.
- Decide what you will charge for your services – What you charge will vary depending on location, economics, products used, and your skill level, among other things. You can’t just set your prices based upon what some other roofer charges 1,000 miles away.
Financial Considerations
It can be scary to start a roofing business from scratch. Even if you already have experience as a roofer, or in managing a roofing company, you will need to consider the time it will take to get your business off the ground, and to make the income you will need. Often a new business will take longer to grow than you planned, and may bring in less income than you planned.
It is generally advisable to not quit your job and then start your roofing business. If your business doesn’t make it for whatever reason, you may regret letting go of the job you had.
A safer financial decision is to keep your day job (if possible), and start your roofing company slowly. This can be difficult, as you will have to work around your normal work schedule, but a lot can be done on weekends, evenings, or mornings, depending on what your work schedule is like. Another option is to at least keep a part-time job (such as an evening shift) to help provide funds to pay the bills while your roofing business is growing.
Another possible option is to obtain financing. With minimum startup costs ranging from $5,000 to $25,000 or more, you may want to consider a business loan depending on what your needs will be for equipment, vehicles, and a business location. Once again, be careful that you don’t get over your head in debt. Be sure to get a loan only for what you absolutely need to get started.
A Guide to Financial Planning and Cost Projections for New Roofers
Starting a roofing business involves specific financial planning to avoid cash flow issues and ensure profitability. Here’s a breakdown of the financial steps for long-term success:
Startup Costs: Startup costs vary but often include essentials like roofing tools, vehicles, licenses, marketing, and initial employee expenses. Estimate up front and look for financing options if needed, ensuring you have a plan to pay off any debts.
Forecasting Earnings and Expenses: Set realistic monthly projections for earnings based on your business goals. Consider costs like fuel, supplies, advertising, and insurance premiums. Budget for slower seasons, especially if you’re in an area with extreme winter weather.
Emergency Fund: Keep a reserve fund for unexpected costs such as equipment repairs, customer complaints, or even legal fees. Many businesses set aside at least three months’ worth of operating expenses.
Managing Debt: Many startups rely on financing for major purchases like vehicles and heavy equipment. Avoid taking on more debt than you can manage by maintaining a strong cash flow and prioritizing essential expenses.
Proper financial planning helps you manage predictable and unexpected expenses, allowing you to reinvest in growth.
Get Organized
As soon as you start your roofing business, you will need some sort of organizational structure so you can keep your customer communications and roofing-related paperwork in order. You won’t necessarily need a full office when starting out. An office desk dedicated to your business paperwork would be helpful.
Get a daily planner or use your smartphone to schedule estimates, jobs, and other work-related appointments. An easy way to lose customers is to arrive late or even forget a scheduled appointment. A schedule will help you plan your day, week, and month, so you can make best use of your time and your customer’s time.
There are many helpful software programs that can be used for accounting, estimating, customer communications and more. Some software is especially designed for contractors. You probably don’t need to invest in expensive software right away. This would be a consideration as your business grows.
- Set up an office- this can even be a home office
- E-mail- have an email dedicated to your roofing company
- Business phone- if you don’t have a separate phone, make sure you answer your personal phone in a professional manner.
- Roofing Estimate and Bill forms- You can order custom forms online, or create your own.
- Roofing Software – Track leads, sales, jobs, create estimates, and more in a single program. Try JobNimbus for Free!
Equipment needed when starting a roofing business
You can’t start a roofing company without roofing equipment. Equipment will probably account for the largest portion of your startup costs. Starting out, you don’t necessarily need all brand-new equipment. You will save thousands of dollars in startup costs by purchasing a used truck, used ladders and ladder rack, and other miscellaneous tools. Another tip is to only buy tools as jobs require them. This will help keep you from going into debt for tools and equipment you may end up never using. Some of the tools and equipment you will need will vary according to what roofing services you plan to specialize in.
Hiring and Training a Skilled Roofing Team
When just starting out, you will be able to work solo, or with a small team. If you are going to grow, you will need to hire additional laborers, sales staff, and office staff. The larger you want to grow, the more employees you will need. Obviously, the more employees you will have, the higher the payroll will be, so a good sales team, along with solid marketing is key to bring in enough work to meet payroll requirements and continue to grow. Here’s how to build a top-notch crew:
Recruitment Strategies: Post job listings on roofing industry job boards and connect with local trade schools. During interviews, look for candidates with experience, positive references, and a willingness to learn.
Training and Safety: Roofing is high-risk, so prioritize training and safety. Invest in safety certifications for yourself and employees, covering equipment use, fall protection, and heat exposure prevention. OSHA offers training resources to help you stay compliant.
Developing a Positive Workplace Culture: Retaining employees often hinges on a strong work culture. Show appreciation for your team, provide opportunities for advancement, and maintain open lines of communication. Regular team meetings and positive feedback can enhance loyalty.
Performance Tracking: Track performance through client feedback, internal reviews, and regular evaluations. Reward quality work to encourage consistent improvement.
With a well-trained, motivated team, you can tackle complex projects confidently and offer clients exceptional service.
Suppliers
Pricing can vary among roofing supply companies in various regions. When starting your roofing company, you’ll want to save every penny possible. It pays to shop around and take advantage of competitive pricing. You may notice a significant cost difference in materials when comparing prices at big box home improvement stores and roofing supply warehouses. You may even notice price differences from one city to another because of local competition.
A good supplier can help keep you aware of roofing trends and new products. Many suppliers will offer a credit line, product discounts, customer management, online ordering, and more.
- Build a relationship
- Know your costs
2. REGISTER YOUR ROOFING BUSINESS
Make it legal
Make sure you are following proper protocol in your region. This means having necessary insurance, following tax codes, getting proper licenses and permits, etc. This applies even to a part-time roofing business.
Need help registering your business?
Some steps (not necessarily in order) to starting your roofing company legally:
- Select your business structure (sole-proprietor, LLC, Corporation, etc.)
- Register your roofing business name
- Register your business entity
- Register as a roofer or home improvement contractor with your state (US)
- Open a business bank account for your roofing company
- Taxes- either get an accountant, or do research on filing yourself
- Liability Insurance
- Worker’s Compensation
- City Licenses and Permits
- OSHA
- Health Insurance
Register A Roofing Company In: The United States
Click on a state to find out how to start a roofing business in your area:
Register A Roofing Company In: Canada
Register A Roofing Company In: The United Kingdom
3. MARKETING YOUR ROOFING BUSINESS
In order to grow your roofing company, you will need to work hard, have people skills, and be patient. You will also need to market your business effectively. Success and profit won’t come overnight.
Customers
Beside employees, dealing with customers can cause a great amount of stress. Learning how to communicate well with customers can help boost sales and increase word-of-mouth leads. Good customers can be one of your greatest sources of free marketing!
- Learn how to sell a roofing job to a potential customer
- Estimate a roofing job properly – How much should I charge?
- Communicate regularly and clearly with the customer
- Be fair and honest- take responsibility for your mistakes
Advertising/Marketing
After you start a roofing business, you need to market it. Some low-cost advertising to get started can include a basic 1 or 2 page website, setting up a free business listing for your roofing company on Google and other online directories, social media accounts, business cards and a few yard signs.
Effective Marketing and Networking Strategies for Roofing Businesses
Marketing plays a vital role in attracting and retaining customers. Here’s how to boost your visibility and reputation:
Networking with Local Businesses: Partner with real estate agents, general contractors, and property managers who can refer clients to you. Attending local networking events and participating in community organizations can lead to long-term referrals.
Building a Strong Online Presence: Create a website showcasing your services, testimonials, and project photos. Use social media platforms to connect with potential clients, answer questions, and share valuable tips, which can establish you as an expert in your community.
Creating Valuable Content: Blogging about roofing tips, maintenance guides, and seasonal advice can attract local clients. Posting content on social media platforms and encouraging followers to share it expands your reach.
Investing in Local SEO: Optimize your website for local searches by claiming your Google Business Profile and ensuring your contact information, reviews, and address are up-to-date. Use keywords like “[Your City] roofing services” on your website.
Strategic marketing can enhance your reputation, generate leads, and help you become the go-to roofer in your area.
How the Roofer’s Helper can help you:
- Need help on social? We have almost a million social media followers! We can point you in the right direction. Contact us to see how we can help!
- Get Featured on The Roofer’s Helper – Improve SEO and internet exposure
- 15 Simple Roofing Marketing Ideas
Resources
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