A roofing company is a business that performs repairs and installation of residential, commercial or industrial roofs. It can also include companies that perform related services, such as gutter, downspout, siding and painting. A roofing company can be a sole proprietorship, partnership or corporation.
Entrepreneurs who want to start a roofing company must carefully plan the venture. This includes drafting a business plan and securing the proper licenses and insurance coverage. In addition, it is recommended that prospective roofing contractors have an accountant to assist them with the business aspects of their startup.
The average gross profit margin for a roofing company is 20 to 40 percent. This number can vary, depending on the size of the business and the type of materials used. Getting referrals from friends and family, advertising on Craigslist and using door-to-door salesmanship are all effective marketing tactics.
During startup, entrepreneurs should avoid purchasing too much equipment, since it can be hard to sell once the roofing company is established. It is also a good idea to get familiar with the types of roofing material available and how each can be installed. This will help the roofing contractor when it comes time to make a product recommendation to a client.
In order to obtain a permit for a roofing company, an entrepreneur must first research the requirements in his local area. Many cities require a permit before commencing certain types of roofing jobs, while others require the contractor to pass an inspection prior to beginning work. Failure to acquire the necessary permits can result in fines and even the shutdown of the company.
The owner of a roofing company should carry general liability insurance to cover accidents and damage caused by employees. Workers’ compensation is another requirement, although the exact amount required varies by state. The owner of a roofing company should also carry a personal policy that covers health-related expenses.
It is important that a roofing contractor provides a written estimate to his clients prior to starting any work. This will allow the homeowner to see exactly what is being done and how long it is expected to take. Vague or cookie cutter contracts should be avoided by all homeowners, as they are a sign that the roofer is not looking out for his clients’ best interest.
A legitimate roofer will have a website, an email address and a business phone number. It is also a good idea to have business cards printed with the company name and contact information as well as a small mobile site or a free business listing on Google. Roofing contractors should also consider credit card processing, which is easy to set up and can increase the revenue stream by offering customers flexible payment options. Depending on the location of the business, it may also be necessary to obtain specific city permits and licenses in order to operate. These permits may require the company to meet building codes and be subject to regular inspections.