How to Start a Roofing Company

Starting your own roofing company is an exciting adventure. You may have sleepless nights, long days and many frustrations. But being the one to call your own shots and run your own business is a life like no other.

If you are thinking about starting your own roofing company, you are probably looking forward to joining the ranks of some hard-working entrepreneurs. But what do you need to start a roofing company? Where should you begin? It can be overwhelming. Here is some insight about how to start a roofing company.

First things First: Taxes and Licenses

Taxes are a certainty in any business. What taxes you are required to pay and how you file them depends on how you structure your roofing company (more on that later) and what state your business is in.

You may check with a professional when filing your business taxes. For federal tax information you can consult the IRS directly. Also, the U.S. Small Business Association has information on taxes.

Licensing for a roofing company Is not so certain. Some states require licenses, and some do not.

In Florida a license is required, and the licensee must meet certain experience requirements and pass an exam. In Texas however, there is no license requirement for roofing contractors. Most states have information about contractor licensing on their official websites.

For licensing information, you can also consult the National Association of Sate Contractors Licensing Agencies (NASCLA). This is a nonprofit organization that promotes for license uniformity and best practices within the construction trades.

Insurance: Expect the best, but prepare for the worst when starting your new roofing business

As a roofing company, you have several things to protect. You will need insurance. Here is a quick primer on the bare minimum.

Commercial General Liability: Insurance to protect you from lawsuits if you are at fault for injuring someone or damaging their property.
Commercial Property: Coverage to protect your business property.
Equipment Floater: Covers your property if it is damaged on a job site or while in transit
Commercial Auto Insurance: This is auto insurance for your roofing vehicle. It will cover you for liability and for physical damage to the vehicle.

Contact a professional for assistance with getting the proper roofing contractor insurance for your business. Don’t skimp on this. Nobody likes insurance until they need it. It may be the thing that keeps you in business if you have a loss.

Get Some Business Skills

You’re probably already a great roofer. You can probably swing a hammer in your sleep and have better balance with your feet on a roof than when they are on the ground.

That’s great! But being a good roofer doesn’t mean you will automatically be a good business owner. The good news is, a little business know how is not hard to acquire, and a lot of it can be picked up as you go.

Here are a few good places to start:

The National Roofing Contractors Association (NRCA): The leading organization for education, news, advocacy and support for roofing contractors.

The U.S Small Business Administration (SBA): The SBA offers a wealth of free information for small businesses. A quick glance on their website reveals help for everything from filing taxes to creating a business plan.

And don’t rule out your local library. Library’s often have free training on starting a business, computer classes and free tax advice.

Have a Plan for Your Roofing Company

If you want to start a roofing company, you must have a plan. Just don’t get so caught up in planning that you don’t execute.

If you’re going to apply for financing or a small business loan, you must have a written business plan. Here are a few of the basics to include:

A narrative of your roofing company: Your business narrative is just a paragraph describing your business. You can write it in a who, what, when, where and why type of format.

Who: Who are you? What is the name of your roofing company? What makes you unique?
What: What services does your roofing company offer? Will you work on new construction? Residential? Commercial?
When: When will you operate? You may want to consider business hours or seasonal restrictions.
Where: Where will your roofing company do business? How far are you willing to travel for jobs?
Why: Why do you do what you do? No need to get all existential. Just throw in a word or two about why you enjoy doing roofing.

An example of a narrative may be something like this:

Joe’s Roofing was started by Joe Jones to offer residential roofing services to Hillsborough County. We operate 12 months out the year weather permitting. We take great pride in our workmanship and we like doing our part to make sure our customers have a good roof over their heads.

Choose your business structure and include it in your business plan: Choose your business structure based on your risks, the protection you need and the legal benefits they offer.

There are several to choose from: partnerships, limited liability companies and different corporations. This article from the SBA gives a good description of each.

Create a marketing plan for your roofing company, and don’t forget to use it: A marketing plan at its most basic level answers the question, “How are your customers going to find you?”

You’ll want to include information on your marketing budget, the channels you will use, your target market and your competition.

(A bonus side note on marketing: When profits get lean, many small businesses cut their marketing budget. This is not a good idea. Consistent marketing is the key to a successful roofing company. Find what marketing channels work for you and ride them out.)

Your roofing company’s projected expense and revenue: At this point you may not have solid information on your projected expenses / revenues but go ahead and ballpark it for your business plan.

Short term and long-term goals: All business owners need goals. Short term goals will keep you focused. Long term goals will keep your eyes on the prize.

So now you know about licenses, taxes, insurance and you’ve created a business plan.

Here’s a few more pointers:

Getting organized when starting your business

Keep good records – This may be the single best piece of advice for a new business owner. Records are everything in business. You never know when you are going to need them: Insurance claims, lawsuits, loans and financing, even tax obligations. All these things will require business records. The better your records, the better you will fare if you must deal with any of these.

Professional Associations

You may want to join a professional association. You may find a state or local association you like, or you can join a national association such as the NRCA. Professional associations offer your roofing company a wealth of knowledge, networking opportunities and education.

Also, consider subscribing to a trade magazine or purchasing an online subscription. It can keep you in the loop on national trends and happenings in the industry. This one has been around since about 2010.

One last thing…

Don’t forget to have fun!

You will only get to start a roofing company for the first time once, so make sure you slow down and enjoy the experience.