Looking to Start a Roofing Business? Here's a Guide to Get Started

If they have a high level of managerial and entrepreneurial skills, the easiest way for a contractor to start a roofing business is to buy one. And if you have the financial backing, now is a good time to consider it.

Considering the Basics

Many roofing companies are family-owned businesses, and a fortunate son or daughter may be positioned to inherit a well-established business. But contractors looking for a real challenge may start a roofing company from the ground up. Two fairly common strategies involve recruiting core personnel from a current employer and letting a subcontractor do the heavy lifting.

The good news this year is that several national training and certification programs are being organized which represents a huge opportunity for contractors looking to start a roofing business. For example, the National Roofing Contractors Association put $15 million toward educational efforts in 2019.

In addition to training and certification, where your prospective company is based geographically may also make a big difference in how quickly your business gets off the ground, considering the voracity of recent severe storm cycles.

Licensing, Insurance and Workers' Compensation

Unfortunately, construction sites remain one of the riskiest workplaces in America. For contractors who take the subcontractor route, the subcontractor must provide a Certificate of Insurance (COI). The document shows that the certificate owner has an insurance policy, as well as the limit or amount of insurance provided on the policy.

A startup company using its own labor force may also be asked to provide its own COI. Because workers' compensation is state-regulated, it varies per $100 in employee wages from $0.75 in Texas to $2.74 in Alaska, according to data from 2017. Fortunately for small businesses, workers' compensation insurance costs have steadily declined over the last 25 years.

As far as being licensed as a commercial roofing contractor, 24 states have no requirements. California's requirements are among the most burdensome, requiring that all applicants have four years of roofing experience before being qualified to take an exam and get fingerprinted. For most contractors, however, the licensing process is fairly straightforward or not required at all.

Formulas for Success

Running a roofing business takes more than just being a great roofer. Skilled contractors looking to start a roofing business should have a fair amount of experience in sales and marketing.

It's critical the contractor establishes the company's vision and mission first, and then ensures that employees and customers understand them. Only then can they concentrate on its structure, work processes and its people.

Although this may sound counterintuitive, good employees are much harder to find than good customers. Happy employees almost always tend to treat clients in a positive way, creating repeat customers in the process.

New companies should be flexible, not stagnant, and employees should be encouraged to challenge A few quick tips can help you avoid some other common weaknesses of burgeoning businesses:

• Lay out a formal organizational structure with a written definition for every position. Spread control amongst several managers (not just the company president), and include crew leaders as part of the management team.
• Start strong with financial reporting, including percent-complete calculations and budgets that go beyond job-cost reports.
• Define all processes for new hires. Remember that human resource administration goes beyond payroll and health insurance.
• Take advantage of technology for things like payments, forecasting capacity, sales pipelines and record keeping.
• Support your roof maintenance division adequately if you have one.
• Monitor all employees' productivity to see where you can improve.

Keep in mind that that running a roofing business takes more than just hands-on skills. No matter how you get your start, it's vital to brush up on the business skills that will help your company last.