Experts estimate that the roofing industry reached over $20 billion in 2021, making this industry one of the largest.
The truth is that there are always people who need new roofs and roof repairs.
If you want to start a roofing company, now might be a great time to consider this venture. But, before you start, you might wonder what steps you must take to start a new business.
Here are the steps you’ll need to take if you’re ready to start a roofing company.
Consider the Investment Required for a Roofing Company
When you start a business, you will need to invest some money into it to get started. For a roofing company, you might need to purchase the following things:
- Tools, including nail guns, staplers, pry bars, and lasers
- Hard hats and other safety equipment
- Shovels, rakes, and toe boards
- Trucks for you and your employees
You might have a lot of these items already, but if not, you’ll need to get them. A roofing business must have the proper tools and equipment for handling roofing jobs.
You can make a list of the items you need, along with their costs, to determine how much you’ll spend on your initial investment for your new business.
Apply for the Necessary Licenses
Next, you’ll need to apply for the necessary licenses. You must have the correct business licenses to operate when you start a company, as you can’t operate without these.
You can check with your state, county, and town to determine what you need to operate your roofing business legally.
If you plan to operate in multiple counties, you might want to check with each county, as they might have different requirements. You’ll have to follow the procedures for each county and town where you’ll offer services.
The next step is to purchase insurance. Every business needs insurance, and you should not operate your business until you have all the right types. What types does a roofing company need?
Here are the three main types you should buy:
- General Liability
General liability insurance is a type of protection that almost every business needs. It protects you against lawsuits that arise from damages and injuries people experience.
For example, if a customer trips over your equipment while you’re completing their roof job, they can sue you. Your liability coverage protects you from these events.
- Worker’s Compensation
Worker’s compensation insurance is also vital for a roofing business. It protects your workers if they experience injuries from performing job duties.
- Surety Bond
If your business fails to complete a job, your surety bond covers the costs. Surety bonds also protect you from improper work you might complete for a customer.
Each type is vital for different purposes.
Create Your Services and Pricing Schedule
Another thing you must do to start a roofing business is creating a list of the services you offer, along with the pricing schedule.
Most roofing companies offer repair services, new roof installations, and roof replacement services. You might want to offer residential services only, or you might decide to focus on commercial services.
In any case, you should make a list of the roofing services you offer, as well as your target market. Additionally, you should consider how much you’ll charge for the services you offer.
You may want to search your area for the prices other roofing companies charge before setting your price schedule.
Determine How to Calculate Repair Costs
Another vital step is choosing the right estimating software to calculate roofing service costs. Using the software is the best way to calculate the costs, and you can learn how it can help before choosing one.
When you use software, you input the dimensions and materials to calculate the roof size and necessary materials needed for the job.
Choose the Right Business Structure and Name
When creating a new business, you must also choose the right business structure. Some roofing companies operate as sole proprietorships, while others prefer setting up S-corps, LLCs, or corporations.
You might want to talk to a business lawyer before deciding, as a lawyer can help you learn the pros and cons of each. The lawyer can also file the necessary paperwork to help you start the structure you choose.
As you do this, you’ll need to determine your business name. Your lawyer will search through the database of available names if you have trouble finding one that is not currently in use by another business.
When you run a roofing business, you’ll need employees. After all, you can’t handle all the roofing jobs alone. How will you hire employees?
You can start by talking to people you know to see if you can find any workers that way. Next, you can advertise that you need employees.
You might want to choose people with roofing experience, as they’ll know what they’re doing. You may also want a laborer to help clean up jobs and carry heavy materials.
Advertise Your Company
The final step to take is to advertise your new company. Advertising is crucial, as this is how people learn about your company.
You can advertise for free on social media sites. You can also make business cards and flyers to hand out.
Networking is another great way to market your new business. If you have friends who work in the construction industry, tell them about your business and give them your business cards.
As you get the word out about your new business, you’ll start getting phone calls for jobs. If you perform excellent services, these customers will spread the word for you.
Proper Planning Helps You Become Successful
Starting a roofing company is a great idea if your area needs more contractors. If you’re ready to begin, you can follow the steps listed here to start your new company.
If you enjoyed reading this blog, make sure you read through the rest of our articles on our site.