How to Start a Roofing Company

Key Takeaways

 ➤ Create a solid business plan with clear goals and strategies.

 ➤ Meet all legal and operational requirements for smooth operations.

➤ Build strong, positive relationships with your target customers for lasting loyalty.

Starting your own roofing business requires more than technical expertise; it needs strategic planning and execution. If you want to know how to start a roofing company, this guide will equip you with the right knowledge and tools to get on track. 

We’ll discuss the following points step by step to help you learn how to create a roofing business to stand the test of time:

Step 1: Understanding the Roofing Industry

Step 2: Building a Solid Business Plan

Step 3: Legal Requirements and Licensing

Step 4: Acquiring Equipment and Hiring Staff

Step 5: Marketing Your Roofing Company

Step 6: Pricing Your Services and Managing Finances

Step 7: Managing Projects and Customer Relationships

First, let’s take a look at the broader market of roofing contractors in the U.S. to understand what trends and industry developments can affect your business.

Understanding the Roofing Industry

IBISWorld’s extensive report, Roofing Contractors in the US – Market Research Report 2014-2029, characterizes the roofing market as fragmented, facing several unique challenges. . This market has experienced a roller-coaster of economic conditions, from strong demand driven by the housing boom to the complete standstill caused by COVID-19 and its related lockdowns. 

During and after the COVID-19 lockdowns, the roofing market saw another surge in demand due to a widespread shift to remote work and the availability of new financing options.

However, inflation and skyrocketing mortgage rates have once again stalled housing starts, putting a damper on the growth of roofing projects. Additionally, the exodus of office workers from company buildings has also reduced the demand for roofing work at non-residential sites.

Overall, the market is seeing stronger demand for roofing repairs compared to installations due to fewer housing construction projects. However, most contractors must rely on consumer loyalty from existing residential and commercial building owners to sustain their business. On the other hand, increasing interest in energy-efficient roofing (such as those using heat-absorbing materials) presents roofers with new opportunities to grow their business.

Common Roofing Services

While the issues discussed earlier persist, they represent only some of the big basket of challenges and opportunities available to roofing contractors. To determine where (and how) your roofing business can best thrive, it’s important to understand the various types of roofing services in demand today.

Here are some common services offered by roofing contractors and businesses:

• Residential Roofing: Installation, repair, and replacement of roofs on homes.
  
  
• Commercial Roofing: Specialized services for commercial buildings, including flat roof systems.
  
  
• Roof Repairs: Fixing leaks, repairing shingles, and other issues.
  
  
• Full Replacements: Complete removal and installation of a new roof. 

Target Audience

Roofing contractors also need to understand the type of person seeking their services, and where to find them. Here are some typical roofing service customers:

• Homeowners: Individuals who often need roof repairs, replacements, or maintenance for personal residences. 
  
  
• Real Estate Agents: Professionals who might need roofing services to improve property values or address damage issues.
  
  
• Property Managers: Managers can often need roof maintenance services for both residential and commercial properties.
  
  
• Commercial Property Owners: Commercial building owners might need specialized roofing solutions for larger and more complex structures, including those with modern energy-efficient roof installations. 
  
  
• Construction Companies: Construction firms often need to coordinate with roofers for installation projects as part of the building process.   
  

The roofing company you’re creating might focus on one or more of these audiences. Take time to understand your customer segment’s needs and how your services can best meet them. 

Building a Solid Roofing Business Plan

The next step in your journey toward building your own roofing company is developing a business plan to define your company’s goals, strategies, and financial projections.

A good business plan includes a description of the company’s mission and objectives. It should also outline specific roofing services that align with your mission statement. Additionally, your business plan should identify target customers and competitors. Finally, it should include a financial plan for profitability, covering pricing models, cost estimates, and revenue projections.

Sample Business Plan 

Below is a sample business plan for a roofing contractor named Tim:

1. Executive Summary
   Tim’s Roofing Contractor is a newly established roofing business located in New York City, New York. Our mission is to provide high-quality roofing services to residential and commercial clients, ensuring safety, durability, and aesthetic appeal. We aim to capture significant market share in the local construction industry by leveraging our expertise, competitive pricing, and exceptional customer service. Over the next three years, we project a steady growth rate of 15% annually, driven by increasing demand for roofing services and our strategic marketing efforts.
   
   
2. Business Description
   Tim’s Roofing Contractor will offer a wide range of roofing services, including installation, repair, and maintenance of various roofing systems such as asphalt shingles, metal roofs, and flat roofing solutions. The business will operate as a sole proprietorship, with Tim as the owner and primary operator. Our commitment to quality workmanship and customer satisfaction will set us apart from competitors.
   
   
3. Market Analysis
   The roofing industry is experiencing robust growth, driven by the increasing need for home renovations and new construction projects. According to industry reports, the roofing market is expected to grow by 4.1% annually. Our target market includes homeowners, property managers, and commercial property owners in NYC and surrounding areas. We will conduct a SWOT analysis to identify strengths, weaknesses, opportunities, and threats, ensuring we position ourselves effectively within the market.
   
   
4. Organization and Management
   Tim will serve as the owner and manager of the business, overseeing all operations, including project management, customer relations, and financial oversight. He has over eight years of experience in the roofing industry, with a strong background in construction management. As the business grows, we plan to hire additional skilled laborers and administrative staff to support operations.
   
   
5. Services Offered
   Tim’s Roofing Contractor will provide the following services:
   
   • Roof Installation: New roofs for residential and commercial properties.
   • Roof Repair: Fixing leaks, damaged shingles, and other issues.
   • Maintenance Services: Regular inspections and maintenance to prolong roof life.
   • Emergency Services: 24/7 response for urgent roofing issues.
   
   
6. Marketing Strategy
   Our marketing strategy will focus on building brand awareness and attracting new customers through various channels. This includes developing a professional website and utilizing social media platforms to showcase our work and engage with potential clients. We will also distribute flyers, run local newspaper ads, and participate in community events to reach our target audience. Additionally, a referral program will be implemented to incentivize satisfied customers to recommend our services to others.
   
   
7. Financial Plan
   The initial funding requirement for Tim’s Roofing Contractor is estimated at $50,000, which will cover equipment purchases, marketing expenses, and operational costs for the first six months. We anticipate generating revenue through service contracts, with projected sales of $100,000 in the first year, increasing to $150,000 by year three. A detailed budget will be maintained to track expenses and ensure profitability.
   
   
8. Conclusion
   By adhering to this business plan, Tim’s Roofing Contractor aims to establish a reputable brand in the roofing industry, delivering exceptional service and value to our clients.
   

Choosing a Business Structure 

Lastly, you need to choose the appropriate business structure for your roofing company. Select from the following legal structures:

• Sole Proprietorship: A business owned and operated by a single individual, where there is no legal distinction between the owner and the business. It’s important to note that a Limited Liability Company (LLC) or other corporate structures can provide better protection against personal liability compared to a sole proprietorship. With an LLC, for example, the owner’s personal assets are typically shielded from business debts and legal claims, reducing the risk of personal financial loss.
  
  
• Limited Liability Company (LLC): A flexible business structure that provides limited liability protection, safeguarding the personal assets of its owners, known as members, from business debts. It allows for various taxation options—such as being taxed as a sole proprietorship, partnership, or corporation—depending on what suits the members’ needs. LLCs have fewer formal requirements than corporations, making them easier to manage, and can accommodate an unlimited number of members. This combination of liability protection and operational flexibility makes LLCs an appealing choice for many entrepreneurs.
  
  
• Corporation: A corporation is a business legally separate from its owners, offering limited liability protection but subject to more regulations. There are different types of corporations, such as C corporations and S corporations, each with its own advantages and disadvantages. C corps are subject to double taxation on profits, while S corps allow income to pass through to shareholders to avoid this, but have restrictions on the number of shareholders. Other types, like Limited Liability Companies (LLCs), also provide liability protection with more flexible tax options.
  

Did You Know

There are about 13,600 projected job openings for roofers each year, according to the U.S. Bureau of Labor Statistics.

Legal Requirements and Licensing for Roofers

After completing your business plan and deciding on your business structure, it’s time to register your business and obtain the right licenses. Depending on your location, you may need to apply for multiple licenses and meet multiple requirements to legally operate as a roofing contractor.

Business Registration and Licensing

Registering your business usually require:

1. Choosing a unique business name that’s not already used by another company. You can check your Secretary of State’s corporate registry or the equivalent database in your area of operations. 
   
2. Registering with local and state authorities and submitting necessary paperwork. 
   
3. Obtaining an Employer Identification Number (EIN) from the IRS.

Keep in mind that even if your state doesn’t require a roofing license, most larger cities and counties enforce local licensing rules for contractors. It’s best to check with your local authorities to ensure compliance.

Insurance and Bonding 

Acquiring liability insurance can cover work-related injuries or accidental damage to your clients’ (or your own) property. Additionally, bonding can protect against financial loss and ensure adherence to contractual obligations.

Acquiring Roofing Equipment and Hiring Staff

The next step is to start listing the necessary equipment for your roofing business. Basic roofing equipment can include:

Tools

• Nail Guns
• Ladders
• Safety Harnesses
• Roofing Felt
• Flashing
• Roofing Nails
• Caulking Gun
• Roofing Square
• Pry Bars
• Utility Knife
• Roofing Shovel
• Tape Measure
• Hand Tools
• Roofing Safety Gear
• Dump Trailer
• Power Drill
• Respirators
• Broom and Shovel

Transportation

• Trucks for transporting heavy loads for roofing installations
• Vehicles for transporting personnel and equipment for smaller jobs

Materials

• Asphalt Shingles
• Metal Roofing
• Wood Shingles
• Slate Tiles
• Clay Tiles
• Concrete Tiles
• Synthetic Roofing

As your company grows, you’ll need to consider increasing your workforce to handle more and larger jobs. Be sure to recruit skilled and trainable roofers, implement effective systems for managing attendance and payroll, and provide regular training for upskilling and safety.

Did You Know?

The US roofing contractor market is estimated to reach $51.3 billion in 2024, according to IBISWorld.

Marketing Your Roofing Company

Now that your company is fully equipped, it’s time to find customers – or let them find you. Give a thought to how people in your community can hear about your new roofing company – some methods of marketing will be more effective (and cost-effective) than others for securing profitable roofing jobs.

You can try one or a combination of the marketing strategies below:

Online and Social Media Presence

A lot of people find it convenient to search for local services online or using their social media. You can start building your brand presence with the following steps:

• Design a professional logo and build a company website so people can find you using search. You can try creating your own logo using tools like Canva, or hire professional designers from Upwork or Fiverr. 
  
  
• Create a dedicated company profile page on social media platforms like Facebook and Instagram. You can explore marketing tools like campaigns and targeting to expand your reach. 
  
  
• List your business on Google My Business and other local listings. 
  
  
• Showcase your work by uploading before-and-after photos of your roofing projects. 
  
  
• Ask for customer testimonials whenever you successfully complete a roofing project. 
  
  

Traditional Marketing

You can also reach out to your target demographic using traditional strategies. These include:

• Flyers: Hand out branded flyers in your neighborhood and nearby areas.
  
  
• Business Cards: Create professional business cards and distribute them at local events (or just hand them out to anyone who seems interested).
  
  
• Yard Signs: Ask customers if you can place signs on properties where you’ve completed roofing projects.
  
  
• Partner with Local Businesses: Build partnerships with local suppliers and contractors to exchange referral business.
  
  
• Local Media: Place ads in local newspapers, radio, and TV stations, or even onto billboards and other prominent physical ad spaces.
  

Pricing Your Services and Managing Finances

As a business owner, you want every project to be profitable. Take these steps to protect your bottom line while delivering quality services to clients:

Set competitive prices. Analyze costs and base your pricing on materials, labor, and overhead. Research local rates for roofing services and find out what your competitors are charging.

Manage finances and bookkeeping. You can use digital tools and software to handle recruiting, payroll, and other financial aspects of your business. 

Secure financial backing. Every business venture comes with a risk. Consider how you might secure financing in case of unexpected expenses or a sudden decrease in demand. You can try applying for small business loans, open a credit line for short-term needs, or look for investors to support your business. 

Did You Know?

There is typically no formal educational credential or work experience needed to become a roofer, according to the Bureau of Labor Statistics.

Managing Projects and Customer Relationships

Finally, pay attention to how your business builds and maintains relationships with its customers. As mentioned in the market overview above, roofing contractors should nurture consumer loyalty to ensure a steady stream of roofing repair and upgrade projects.

You can take the following steps to build your relationship with customers:

Project Management

• Use scheduling tools to ensure proper distribution of workers and timely project delivery.
  
  
• Try digital tracking tools like time clocks, GPS, and route optimization solutions to prevent delays, time theft, and unnecessary detours.
  
  
• Utilize modern solutions for estimating projects to avoid unforeseen extra costs. 
  

Customer Relationships

• Keep clients in the loop with project updates and notes.
  
  
• Present detailed budgets to align customer expectations with realistic project scope and financial limits.  
  
  
• Handle complaints in a timely and professional manner.

Warranties

• Consider offering warranties to address customer concerns about their roofing projects. 
  
  
• Provide post-service support and build long-term relationships with clients even after the immediate job is done.  

Starting your own roofing company entails not only technical knowledge but also business acumen. To ensure your roofing company is off to a good start, remember to create a solid business plan, meet the legal and operational requirements of your locale, and go the extra mile to build healthy relationships with your customers.

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