How to Start a Roofing Business ($270K a year)

How to start a ROOFING company ($270K/year) and never actually lay a shingle.

Roofs need to be replaced every 20-30 years. Average cost of a roof in 2023 is $10,000. There a massive opportunity for roofing because there are hundreds and thougsands of houses that are getting older and older.

Pairing that with recent storm damage. THE HOMEOWNER ISNT EVEN PAYING! INSURANCE!

Roofing Paper Contractor. What a paper contractor does is that they get the job and bid the job then they sub out 100% of the work.

We bid a $10K roofing job. Find a sub to do it for $8K-$9K. The sub is happy becuase they are getting a job without the acquisition cost (Marketing, etc.). We make money by providing the job.

How much does it Cost:
Formations Fees $200
Insurance: $10K a year
Marketing Budget: $10K year
Computer, website, training for bidding roofs: $3K
TOTAL: $23K

HOW MUCH CAN WE MAKE/CASHFLOW
If we take the average roof replacement at $10,000.
Average Profit Margin: 10%-20% we use average 15%
$10,000 job = $1,500 in profit.
Win 3-4 jobs a week, 15 jobs a month = $22,500 a month
$22.5K/month = $270,000/year

$270,000/year - $23K/expenses/year = $247,000 profit.

Positives of this business:
You don’t have to roof
Your time is minimal since you are essentially managing jobs.
If you can market, the sky is the ceiling.
No employees.

Think of ways it will fail:
Sales/ Marketing = gettings jobs.
Subcontractors = Find trusted subs before starting this business. Predetermine their pricing so you can mark up yours. Understand how they price jobs.
Make sure they have insurance and do a good job.
Unorganized. You arent managing your jobs. Setting expectations with clients.
Correct Bidding for profit

Legal Up
LLC
Insurance
Subcontractor Agreement.

Commit to Starting

#roofing #contractor #construction #constructionlife #businessideas #business

[chaseeckelbarger]

Great info! Also love the Power vs. Force in the back!

[MattFarrisMUSIC]

Everyones an expert. Fuck all these haters man. If youre making 10 percent and thats low, at least youre not ripping people off

[WeFindSimpleSolutions]

The residential roofing industry is booming for sure.
I will add to your information that, honesty and standards. Make a big difference in this industry because there’s so many money driven people out there that it has started to get a bad name.
But,
If you’re honest, especially in the situation where you’re at a house that actually does not need/require a new roof, actually tell them that that kind of honesty will go a long way and build a great name for your company and sales team

[forshadowj]

10% profit margin is terrible. I make 10% gross on the job as just the salesman. Needs to be 30%+

[ChrisCain-dl]

If you are talking about storm restoration then you can market all you want but you better have boots on the ground (salesman) canvasing neighborhoods as soon as a storm hits! Waiting on calls won’t cut it, your profit should be 30% if you know and study insurance policy, procedures, and know how to use there xactimate software for prices and supplements or you’ll get ripped off real quick.

[Sari-SariStoreAtbp]

In most states, they require a roofing license. And even before you pass the state certifications, you will also have to be working for a minimum of 4 years under someone's license. It's not easy as it seems.

[JCPGator]

your numbers are way off on the cost for insurance, advertising, sales commission, etc.

[jeromerethmel]

Just started a roofing company and my wc insurance was $16, 000!
Also average job is closer to 20k here in New Mexico.

[syedzwaqar]

My man. I've the websites of Roofing (My own). I ranked with my Skills. I'm an Local SEO & Google ads expert for Roofers.

I am just searching for the Roofers to sell the leads to. And I'm from Pakistan.