In recent years, there’s been an uptick in the number of roofing businesses. The roofing industry generated about $52 billion in revenue in 2021 alone. But on the flip side, according to the Small Business Administration, 96% of roofing businesses are defunct by their 5th year. The reason: they didn’t start their business off on the right foot.
Fortunately, there’s a clear-cut formula for starting a roofing business that will last. In this guide, we’ll teach you how to get into the roofing business the right way.
How To Get Into Roofing
If you’re looking to start a roofing business or want to know if you’ve started right, this straightforward formula is for you. Find out here how to get into roofing.
Select The Right Roofing Software
Are you wondering how to get into roofing sales? Whether you want to drive more sales to your new business or convert leads to customers faster, the best way to achieve this is to invest in software for roofing contractors.
A roofing contractor software helps you create efficient workflows to streamline your company’s processes. Track and manage projects easily, deliver excellent customer service, communicate with clients, and save time and money.
You can join the thousands of roofers who streamline their sales process using an effective platform, so you can focus on growing your business.
Devise A Business Plan
Every successful business starts with a carefully thought-out business plan that defines its goals and helps assess itself from the beginning. It doesn’t have to be a fancy multipage document; a clear layout of your objectives and milestones is a good start.
The most effective business plans include information on:
- Startup costs
- Operational costs
- Buyer personas (i.e., the target market)
- The service you’ll provide
- Pricing plans
This information gives you an overview of what you’re getting into and the best way to start the job. For instance, knowing startup costs can influence your financing methods and service pricing.
Choose Your Business Name And Structure
Now that you’ve gotten your idea on paper and plan to see it through, you’ll need a name. Pick something unique to you, your services, and your area of operation.
You can check the names of already registered roofing companies for inspiration. Remember to keep your name short and memorable. Prospective clients may look up your company online before contacting you. If they can’t remember or even spell your name, they may simply go with the next guy.
Moreover, you’ll need to ensure that no one else has a business registered under that name. You can do this by checking the Secretary of State’s directory.
Another thing you’ll need to sort out is your business structure. For example, will you operate as an LLC, a sole proprietorship, a partnership, or a corporation? For a small roofing company, it’s best to work as an LLC since you’re entitled to tax breaks and personal asset protection.
Open A Bank Account
When considering how to get into the roofing business, you’ll need a dedicated bank account for your new roofing company. This helps protect your personal assets from those of the company. Merging your company and personal accounts only puts you at risk.
With a dedicated account, you can build business credit and accumulate better interest rates for the company. Plus, you’ll be able to apply for business loans with a bank account.
It’s also recommended to open a Net 30 account to facilitate your business cash flow. A Net 30 account helps you make business purchases that you can repay in 30 days. Ensure you get a business card to build a stronger credit history for your company.
Get Licenses And Register For Taxes
Next is your roofing contractor’s license from your local chamber of commerce. Depending on your state, you’ll need specific licenses to operate as a roofing contractor.
Since licensure is a tricky business, it’s best to get expert advice. Alternatively, you can talk to local business mentors or colleagues in the roofing business for pointers.
You’ll also need to visit the IRS website for information on tax registration. What are the tax obligations for your state? Are there any local taxes you’ll need to cover? You can find all these at the IRS Small Business/Self Employed Tax Centre.
Secure An Insurance Plan
Protecting your business and employees should be a priority for you. The best way to do that is to get insurance for your roofing business.
There’s an endless list of insurance policies for your business. But General Liability Insurance is arguably the most important insurance for your company. It’s the best starter insurance to get, as it covers any property damage your employees may cause.
Another standard insurance plan that small roofing companies get is Worker’s Compensation Insurance. It ensures that your employees are sorted out if they get sick on the job. This coverage may even be required for your company before you’re registered.
Create A Company Website
A professional website helps define your brand and establish an authoritative outlook for your company. Moreover, close to 50% of Google searches are for local businesses, so you’re losing out on valuable leads without a website.
Today, you can quickly build a stunning website for yourself. No technical knowledge or code is needed.
Promote Your Roofing Company
When it comes to how to get into roofing, remember to get your company out there. You won’t be able to connect to prospective clients if they cannot find you in the first place. That’s where your marketing strategy kicks in.
You’ll need a solid marketing plan to boost your visibility online and in your area of operation. This means:
- Creating a portfolio for your website
- Creating profiles on listings like Google
- Building a social media presence
- Advertising your new company through multiple channels
Taking these steps can help with increasing brand awareness.
Everyone Starts Somewhere
Even though starting a roofing company isn’t easy, these pointers should help establish a long-lasting business. A combination of trial and error, plus time, can help you hone in on the best possible strategies for your company.