You may have been thinking to quit your job and be your own boss nowadays. You want to work at something you enjoy doing and this is roofing maintenance and repairs. However, it can be a whole lot different when you try to turn the hammer and nails into a profitable profession that can support yourself, your family, and your employees for years.
If you are getting serious about building a business, then the good news is that you can jumpstart the beginnings with the help of some tips from the pros. You can further check how to start a roofing business from the link provided and ensure that you are prepared before starting the business. Some of the things that you should do are the following:
- Plan for Success
You may become overwhelmed with all the advice you get online and from the pros. You may have all the resources to get the right tools and what to use, but how come a lot of new businesses are failing than succeeding? The answer is simple. This is because many are unsure of the pitfalls.
Once you have decided to go all out with the business, one of the things that you need is to get an accountant. Meeting a trusted friend to go through your numbers or involving them in your business can be extremely helpful. Go through your balance sheets with a professional accountant before spending a dollar on equipment. Create a thorough plan that can help you achieve success.
Know your Costs
You have to know the amount that you’ll be charging for roof replacements or repairs before starting your roofing company. Some of the direct costs are labor and materials, and they are relatively easy enough to figure out.
You can add a small percentage to the materials and set your hourly rate depending on the project you will do. However, the total costs of the marketing and administrative expenses should be considered, and you should be profiting rather than merely breaking even. Read more about administrative expenses on this page here.
Work with your accountant to know the costs of the following:
- Insurance for your contractors and subcontractors
- Bonds needed for license
- Registration of the business
- Equipment that you’ll need including ladder, tools, gears, and more
- Establishing a website and social media page
- Vehicle to go around town
- Administration fees
- Commercial premise if you’re renting an office
- Promotional advertising and materials
- Operational daily expenses like salaries, utilities, and labor wage
It’s best if you could open a business-type bank account that’s only specific for your roofing company. The job deposit checks can be used to move forward and ensure that there’s enough money down the road.
Setting an Affordable Price
When you set the price for your services or delivery, you need to make it more affordable but competitive in the industry. After you’ve summed up your total costs, you may want to add a mark-up price to make the business more profitable.
Research the costs of other businesses and see whether you fall along with the lower or higher priced range. The whole point of being in business is to make sure that you’re going to profit from your business venture, but the costs should be fair and reasonable.
Aside from an accountant, you can also look for mentors who have been in the business for decades. Some of these people are not in the market for competition. On the other hand, they are interested to see other ventures become a success, and they can offer coaching services for you to achieve the best results.
- Form A Legal Entity
You need to decide whether you will have a sole proprietorship, limited liability company, partnership, or corporation. You may want to establish a corporation or LLC so that you can be protected in cases where you get lawsuits and prevent yourself from being personally liable.
Choose a simple name and consider how it will appear in your social media handles or website URLs. You need to register for taxes that will specifically apply to your company. After you’ve chosen a name and the type of company, you need to consult an insurance agent or accountant for taxes and registration of bonds.
Check your local county about the licenses that you need. Hire the best contractors and fire the wrong ones. You also need to obtain bonds and insurance to protect your contractors since they will be working in a place with a high altitude. Know about your other needs when starting a company here: https://smallbusiness.chron.com/need-start-roofing-company-2311.html.
- Consider Equipment Investments
Getting the right tools to do an excellent job means more satisfied customers. You’ll have a more profitable business in the process, especially if your first customers are happy with the work done. You may choose the cheapest tools in the market since you’re starting. However, this is not recommended because you may not achieve the quality that you want, and your customers may not contact you once again for repairs or maintenance.
It’s better to invest with the right tools to maximize your productivity and decrease labor costs. The best tools and equipment will be more durable, and you and the contractors will be safer when it comes to using them rather than the cheaper options.
- Creating an Off-Season Plan
Your new business may be located somewhere in a cold climate. If this is so, you need a strategy that will let you stay in business even if it means a seasonal downtime for others. You need to set aside the money that you have earned during summer to pay off the bills, taxes, and expenses for winter. You can refresh your strategy by updating your customer profile, reviewing your online presence, and defining a sales plan.
A dip during the cold weather may also be the right time for you to check your construction equipment. Assess whether the hydraulic dump trailers, compressors, and others need repairs. You can pick out the time-consuming tasks like staying on top of your payroll or checking with your customers and encouraging them to give reviews. You can also do social media posting and blogs about your materials and services to let the customers discover more of what you do.