Toying with the idea of going into the roofing business? If so, you’d be wise to start by taking a look at the wider picture.
What do we mean by that? Simple: a roofing company is a lot like any other company out there. Making a profit out of it depends on many factors, such as your budget, workload, and expertise.
The roofing industry, in particular, requires far more than nails and a nail gun. Want to make sure you have what it takes? Here are 5 no-nonsense tips for starting a roofing business.
1. Prepare Yourself.
Being a talented roofer is only one qualification for launching a roofing business. The other big thing you’ll need is business knowledge. A good start would be to create a plan that defines your business goals.
You should also have intimate knowledge of your services and products. Ideally, you’d have at least three years of experience in the industry. If you lack that kind of knowledge, consider getting an experienced partner.
2. Raise Enough Capital.
The amount of cash you’ll need depends on your business model. That said, we recommend slow initial growth. Be careful about your hires, keep a low overhead, and focus on the local market.
Also, make sure you have enough capital for basic equipment. For example, having a rooftop solar business model means you’ll definitely need solar panels. Remember to allow your equipment to pay off for itself before buying more.
3. Get Permits and Licenses.
Operating a legal business requires the right permits and licenses. There’s the local business permit, which you can get from your city or town hall. In some areas, you may need zoning and safety inspection approvals.
Depending on your state, you may also have to apply for one or more contracting licenses. This can require specialized training or proof of knowledge.
4. Build Your Reputation.
Having certain entrepreneurial qualities can play a key part in your roofing business’ success. For instance, being persistent counts for a lot. The geography of your business and its economic market can lead to volatility.
You should also prepare for continuous networking. In the roofing industry, your biggest source of customers will come from referrals. Finding networking opportunities in your local area can give you a head start in this regard.
5. Get Insurance.
The first type of roofing insurance you can look into is general liability insurance. This covers damage and injuries to third parties. Workers compensation insurance does the same for your employees.
Professional liability insurance is worth considering as well. Its main purpose is to protect your business from various legal claims. For general contractors, subcontractor insurance coverage is also worth it.
More on Going into the Roofing Business.
One final thing to keep in mind is that you’ll need some help. If your business can’t operate without you, do your best to expand it. In most cases, doing all the jobs on your own won’t leave you enough time for running the business.
Want to know more about going into the roofing business? Interested in becoming a more successful entrepreneur? If so, check out some of the other articles on our site!