How to Write a Roofing Contractor Business Plan

The Roofing industry is a growing trend for several reasons.  First, an unfortunate reality is that there have been more natural disasters, like forest fires, hurricanes, and snowstorms in the last several years as compared to previous decades.  These natural disasters inevitably lead to roof damage.  As a result, the more business out there for roofing, the more roofers.  Also, the number of homes across the US have been growing at an above-average pace.  This new construction also drives the demand for new roofing companies.  As new roofing companies enter the marketplace, or, established roofing companies seek to grow, inevitably, the need for a roofing business plan is almost unavoidable.  From this, here are some tips and tricks that are business plan writer recommend to utilize when constructing a roofing business plan.

Executive Summary for a Roofing Business Plan.

In the executive summary section of the Roofing business plan, make sure to first discuss what type of business your organization will be.  A common business structure for a roofing company is either limited liability or a limited partnership.  A limited partnership is common because roofers tend to start businesses with other roofers.  In a partnership, they can share ownership percentages and also tax responsibilities.

Also, in the executive summary section, make sure to discuss how your business will look and feel for customers.  The roofing process is usually similar for either residential homes or commercial entities.  The first step is for the roofer to explain to the customer the roof replacement process.  In doing this, the roofing company can properly set expectations for the customer and locked out a price for services.  Because of the importance of this process, make sure to document it in the executive summary section of the business plan.

Company Information for a Roofing Business Plan.

The company information section of a Roofing business plan should start by explaining the problem that the company will solve for the client, then address the “Who, what, where, when, why, and Hows.”  To illustrate, a common problem that a roofing company solves is that when a roof deteriorates, water leaks inevitably happen.  Once water leaks happen, then not only will the customer need to replace the roof but also ceiling damage, trust damage, and even insulation deterioration.  By starting off a roofing business plan with identifying a problem, our business plan writer has found that justifying the needs for a roofing company is a lot easier.

Product Description for a Roofing Business Plan.

Roofing businesses generate revenues from the sale of new roofs or replacing existing roofs.  In the business product section of the business plan, make sure to identify the different types of roofs that you may sell.  To illustrate, some roofing contractors sell only three-tab shingle roofs.  Whereas others might do asphalt or metal.  By differentiating products, a roofing business owner can better show how they will compete in the industry and local market.

Competitive Advantages for a Roofing Business Plan.

The Roofing industry has been growing substantially over the last several years, thanks to the need for roof replacements and new construction.  From this, our business plan writer has found that roofers need to put a lot of thought into their competitive advantage section for the business plan.  An important competitive advantage for a roofer would be warranty services.  Once the sale of a roof is complete, most roofers move on to the next sale.  However, other roofers may offer an annual inspection for a customer.  This annual inspection will not only increase revenues but will also help to ensure customers receive the best possible product for their money spent.  Finally, visiting previous customers on an annual basis is a great way to land referrals.

Location Description for a Roofing Business Plan

The location for a new Roofing facility is critical for the success of the business.  For the interior of the business, roofing organizations need substantial space for products and supplies.  Common products stored for roofing companies would include shingles, metal roofing, flashing, nails, and other common roofing supplies.  From this, roofing locations are often found in warehouses with about 1500 to 5000 ft.² under roof.

As for the general location of the Roofing facility, our business plan writer has found that these types of businesses do well in locations near new construction subdivisions or older subdivisions.  By placing a roofing company in a centralized area, our business plan writer has found that roofing business owners can quickly and easily map out marketing segments as well as the central location helps with scheduling repairs and new installations.

Target Market for a Roofing Business Plan.

A common Roofing target market is are either builders or homeowners whose homes are 10 or more years old.  A roofer may target a builder to gain access to new home roofs.  This target market often leads to lower profit margins.  However, the amount of work is steady and predictable.  Targeting homeowners, roofing business owners can charge a little bit more because advertising costs are higher.  This leads to higher profits.  However, the amount of work is often feast or famine.

Industry research for a Roofing Business Plan

Based on quick research from our business plan writer, the main industry in which Roofing competitors compete in the roofing contractor industry.  This industry generates revenues from installing roofs, maintaining roofs, and repairing commercial or residential establishments.  IBIS World found that this industry has generated approximately $47 billion in the last 12 months.  Industry experts claim that the last five-year growth rate, annually, has been about 4.9%.  In the next five years, our business plan writer projects roofing contractors to grow at about a 2% rate.  In total, profits for the industry exceeded about $3 billion.  Because of the need for a significant amount of labor when installing roofs, wages for the industry have reached about $11 billion.  Throughout the US, there are about 100,000 roofing contractors.

When writing the industry research section for your roofing business plan, make sure to use this information as a foundation for summarizing the industry.

Owner and Management Section of a Roofing Business Plan

Owning and managing a Roofing business is quite different from other organizations.  This is because owners are often employees as well.  To illustrate, some roofing owners will also work on installing or removing roofs daily.  By following this process, business owners can ensure top quality customer service as well as high and workmanship.  Unfortunately, our writers have found that when business owners continually work in their business, they have less time to create marketing and other strategies to grow the organization.

Funding Request for a Roofing Business Plan

Starting in the Roofing business is actually quite expensive.  Business owners need to lease a warehouse, purchase trucks for transporting roofing material, store inventory to ensure timely roof installation, and hire and train employees to ensure top quality roof installations.  From this, our business plan writer has found that starting a roofing company may run from $25,000 up to hundred $50,000 or more.

Financials for a Roofing Business Plan.

Financial projections and financial models for a Roofing business plan should first start with weekly or monthly roof sales or repairs.  Next, roofing business owners should align roofing material costs with insulation sales for new roofs.  Once this is complete, business owners need to address fixed cost for the business.  Some fixed cost for a roofing company may include truck payments, warehouse storage rent, roofer labor, and also any type of credit card payments or loan payments that arise from daily roofing operations.  With this complete, the business owner is now ready to complete their roofing financial projections by expanding their daily and monthly sales to an annual basis.

Author: Paul Borosky, Doctoral Candidate, MBA., Author

Owner of: Tutor With PaulQuality Business Plan, Finance Homework Help, Quality Business Consultant, Sanford Cleaning and Tutor4Finance.

Date: 2/11/2020