A lot of roofing firms close their doors before they even get to the starting line. But starting a roofing business is not difficult to do when you can find and avoid certain pitfalls.
Plan to avoid failure
With all available advice on the Internet, as well as all the lists of what things to do, what to get or where to get it, how come a lot of roofing companies fail to succeed? Like most truths, the answer is pretty simple. Because nobody focuses on the pitfalls, and once people have decided to go into this kind of venture, they first need to avoid the biggest pitfall in this industry.
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Get a good and reputable accountant
It is the secret ingredient people need for the day they decide to start a roofing business. They need to meet with reputable accountants, may be referred by a family member or a trusted friend, and involve that individual from the start.
Then – before spending a lot of money on equipment – create an achievable plan that clearly state the venture goals, as well as how the company intends to achieve them. Entrepreneurs could also contact consultants or check-in with the United States Small Business Administration or SBA. But the first thing they will likely tell venture owners is to get a reputable accountant.
Establish the cost
Entrepreneurs have to know the cost of starting this kind of business before they go. It is very important to find out how much it is going to cost before starting a roofing venture. Direct costs like labor and materials are straightforward enough to figure out, but some costs like marketing and administrative expenses need to be considered to break even merely. With the accountant, companies can work out the cost of everything:
- Operational expenses like salaries and labor wages
- Promotional materials like stationery and signage
- Commercial properties if other than your house
- Administration
- Small websites
- Registration
- Equipment
- Insurance
- Vehicle
Open a bank account for the company. Deposit checks can be used to help cover material costs as the firm moves forward.
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Set the price
Numbers should make sense. With the total costs are known, entrepreneurs can add markup for profit. Comparison to competition in the area might show that some firms are higher or lower priced compared to what you are charging. The point is to sell a service at the price the firm needs to get to make sure to turn an ROI.
Here is where additional help can make a huge difference. In addition to the accountant, business owners should look for mentors who have been in this kind of situation before and found success. Roofing manufacturers will be only too pleased to help businesses, and they do not compete with companies. On the contrary, it is in the manufacturer’s best interest to see this kind of company succeed, and they have tons of experience to do this.
Register the company
Set things well with the right government agencies. It is also an excellent idea to register a DBA (doing business as) name when registering the roofing venture. A catchy name can carry far more value compared to family names when it comes to selling the firm in the future. Owners need to decide whether they want to be a sole proprietor, a corporation, an LLC or Limited Liability Company, or a partnership. Always make a habit of consulting with legal counsel every time you make a move. Ask them what entity is best for your need.
Licensing
Get the necessary authorization needed to operate this kind of venture. Contracting licenses for a venture differ for every jurisdiction. To find out the requirements in the area, check with the Roofing Business University, provincial or state authority.
Local permits may be needed for every municipality, the firm works in. Owners should contact the city hall to find out and get these types of permits when needed. Local government agencies might also ask for planning, safety inspections, and zoning approvals.
Insure the firm
Owners need to protect their investments. Roofing is a challenging industry in which injuries and accidents can and do happen. Insurance provides the ways to protect the organization financially, the people working on it, and their customers against damage to limbs and life, lawsuits, and the destruction of properties.
Entrepreneurs will always need liability insurance, each province and state have different safety requirements for roofing organizations. To make sure the protection they need for their firm’s security, these are the kinds of insurance they should examine with their service provider.
GLI or General Liability Insurance: It covers injuries and damages to parties other than the workers.
Workers’ Compensation: It covers work-related damages or injuries to workers. Requirements differ from state to state, depending on the number of workers. It is needed in all provinces in the country.
Professional Liability Insurance: It protects the firm against different types of lawsuits.
Personal Liability Insurance: It helps protect businesses in case of damage or injury.
Vehicle Insurance: It helps protect the firm’s work vehicles.
Equipment Insurance: It safeguards the owner’s investment in equipment and tools.
Set up shop
Owners do not need a complete working office to start. A table, some basic stationery, and a working telephone can get the firm rolling. Use the planner function on your mobile phone to schedule client appointments. Set up as the pace in your basement, garage, or spare room. Install a telephone or record professional messages for your personal telephone. Add email addresses dedicated to the firm.