How to Start a Roofing Business – Expert Tips to Get You Started

Roofing is a growing industry as more and more buildings are turning up, and areas are being developed. Also, the statistics presented here are justifying. 

During 2022-2031, North America’s roofing industry is expected to grow at a compound annual growth rate (CAGR) of 4.9% per year, which is expected to cross $41,242.6 million by 2031.

Is this an industry that interests you, but you don’t know where to begin?

This post will guide you on how to start a roofing business.

Here’s the list of how to start roofing company in 10 easy steps:

1. Create an Effective Business Plan

2. Determine your Target Market

3. Choose the Name and Business Structure

4. Keep the Legalities in Order

5. Open a Business Bank Account

6. Invest in Proper Tools and Equipment

7. Employ Online Software

8. Get Insurance Coverage

9. Hire the Right people

10. Market your Business

Let’s discuss them in detail.

1. Create an Effective Business Plan

A clear and actionable roofing business plan is essential for the success of any roofing company. You must include some crucial things in the business plans like

• the startup and ongoing costs of your roofing business,
• the types of roofing services you will provide,
• the target audience of your business,
• the marketing plans you will be following,
• what are the pricing strategies, etc.

Here are some tips, which you can add to establish a successful roofing business:

• Have a clear vision for your business.
• Decide where you will locate your storage and office space and the geographic limits of the community you serve. 
• Get a deeper understanding of the direct and indirect competitors in the area. 
• Make a note of what successful roofing companies are doing, and find out what makes them able to generate more roofing leads.

2. Determine your Target Market

When developing a roofing business plan for your roofing company, identify who you would like to serve as a customer. Spend some time separating, who your ideal client is at this stage to refine further the services you provide to suit their requirements.

The areas where you can focus upon while determining your target audience are

• Choose the houses or new business owners having multiple roofing properties instead of single roofs.
• Check the needs and preferences of your target market and whether you will be able to satisfy the same or not.
• Flat roofs are preferable by many roofers instead of steep roofs, so try finding in what ways it is beneficial and then look for those clients.
• You can even find the areas where your competitors are lacking. Once you find them, you can excel and get more customers for your roofing business. 

After narrowing down your audience, you can go one step further by identifying their job type, age, income, gender, and other characteristics that make each person unique to your target market.

3. Choose the Name and Business Structure

Create a memorable and unique business name for your roofing company. It should relate to the services you offer. The business name should be one that is appealing to your desired customers, and familiar enough to get associated with the targeted audience. 

After choosing the name for your business, the next thing you need to do is create a roofing business entity that suits your needs. There are several options available to you:

• Sole proprietorships
• Partnership
• Limited liability company (LLC)
• S-Corporation
• C-Corporation

4. Keep the Legalities in Order

Once the legal entity gets established, check the registering process with your state and start working on it. You also need to think about other legal formalities such as licensing requirements, permits/renewals, or tax implications. 

For satisfying the tax requirements, your business will need a tax identification number after registering it with your state. 

Using that identification number, you can for the business you have started. 

• open your bank account, 
• apply for a loan, 
• and pay your taxes

The licensing requirements vary from state to state.  You need to check the requirements of your own jurisdictions and apply accordingly. 

Also, as a part of the construction business industry, there are various construction laws, building codes, and other regulations to throw light upon.

5. Open a Business Bank Account

Getting started with a roofing business model requires opening a bank account.

Keeping your roofer business finances separate from your finances makes it much easier for you to file your taxes and track your company’s income & expenses. 

Also, it is very much essential to keep your personal assets in a safe place and to check that they are not at risk if anything goes wrong with your business. 

The process of opening a bank account for a business is quite similar to that of opening an account for personal usage.

Most banks offer accounts specifically tailored for businesses, so you should ask your preferred bank about which rates and features they offer. 

6. Invest in Proper Tools and Equipment

The next step in starting your own roofing business is investing in tools and equipment.

Out of all, you’ll need the following:

• A ladder
• Safety gear and hard hats
• Tools for cleaning (rake, broom, etc.)
• A tarp
• Tools for measuring
• Hammers and nail guns
• An air compressor 
• Tools for cutting (saws, blades, utility knives)
• Tools for shingle removal and pry bars

It is important to remember that your choice of tools will depend on the type of roofing company you are starting.

7. Employ Online Software

It is essential to remember that when you set up a roofing business, the most crucial part of this business is the financial side. 

While running a roofing business, you are concerned about certain things apart from your core business of providing roofing services. Those concerns are  

• When do I need to pay the suppliers for my roofing equipment?
• When are my invoices becoming due?
• Will I be able to keep track of the invoices and never miss a payment?
• Can I make customized estimates & invoices digitally?
• Can I e-sign the estimates & invoices?
• Is it possible to get all my client details at my fingertips?

Yes, it is. With InvoiceOwl (an estimating & invoicing software for roofing), you can

• Create customized invoices in a zap with professional-looking roofing invoice templates.
• Build personalized estimates through a FREE online estimate generator on InvoiceOwl, and get more jobs.
• Generate stunning sales reports, and know the financial health of the business regularly.
• Adopt e-signing and stop using the manual techniques of physically signing the estimates or invoices.

The online software comes with a free trial that allows you to try it out and make the most of its advanced features.

8. Get Insurance Coverage

Entrepreneurs often overlook the importance of business insurance, which can be critical in helping you succeed as a business owner. Here is a crisp description of various types of business insurance, rescuing the business at the time of unexpected events.

In terms of insurance types, the following are some to consider:

• General liability insurance: Comprehensive insurance covers almost all aspects of business that need to be protected. Getting this type of insurance for a roofing company is the best choice. Property damage and bodily injury are also covered.
• Business property: Covers your supplies and equipment.
• Equipment breakdown insurance: If some equipment is broken because of mechanical issues, this insurance for the roofing company will pay for replacement or repair work.
• Worker’s compensation: Ensures that injured employees are compensated.
• Property: Protects the space in which you operate your cart, storefront, or office.
• Commercial auto: You can protect your company’s vehicles with this policy.
• Professional liability: Provides coverage against claims by clients that they suffered losses because of errors or omissions in your work.

9. Hire the Right People

Roof work is doubtful to be done by you alone, and this approach is not practically possible. Hence, you need a reliable team. 

There are a few areas where you need green ticks while looking for workers for the roofing business. They are

• It’s important to hire roofers who have good reputations. 
• Physical fitness is a must.
• A person who is well aware of the roofing industry and who is experienced is required.
• As your roofing business grows, you will likely need to hire employees to manage your accounting and finances, bookings and schedules, and marketing as well.

In all of these positions, the common requirements should be honesty, reliability, attention to detail, and the ability to work under pressure.

10. Market your Business

Marketing is the best way to generate roofing leads when everything has been set up.

The list of who you’d like to target by now has already been decided upon, so you will want to take a strategic approach to get in front of these people.

• Search Engine Optimization: Local search engine optimization (SEO) and search engine marketing (SEM) are great ways to grow your business. SEO will allow you to rank your content organically for searches such as “roofers near me.”
• Referral Programs: Strategic partnerships with companies with similar target audiences are the best way to reach your target audience.
• Influencer Marketing: The roofing business can connect with influencers having a large following on their social media platforms and can promote their products or services.
• Direct Marketing: Alternatively, you can send workers to canvass and knock on doors. To summarize, you will supply flyers and instruct them to look for potential customers.

Why Starting Roofing Business Necessary?

There are a few reasons which necessitate having our own roofing business: 

• Roofs are necessary for every structure to have that shelter over the head and for structural stability 
• The rising number of aging homes 
• The need for periodic maintenance also increases the demand for roofing projects.

If the work you produce meets client expectations, it’s a field that provides dependable work.

Do Roofing Businesses Cost a Lot to Start?

Roofing business will require different amounts of capital, depending on how it will be run – whether it will use subcontractors or employees. However, starting with low overhead is possible, and business owners often suggest the initial growth of roofing businesses.

Invest in your equipment for a while before buying more. Hiring processes are no different.

Be more than just a seat filler. Make sure that your new hires are properly trained. Business owners who are starting often spend a lot of money on marketing and advertising.

You will have to spend a lot on advertising until you receive referrals. Experts recommend starting small and locally.

Before you plunge into the water, do your research and test it out. Start-up costs for a roofing business are listed below.

• The leasing of business space
• A basic set of tools
• The workforce or the labor force
• An insurance policy
• Permits and licenses

Conclusion

Roofing companies can be a lucrative business to start. As a new roofing business owner, you must follow the above steps to get your new business up and running. You can follow these steps to start your roofing business in a smooth and simpler manner.