Is Roofing a Good Business? (Reasons to Starting a Roofing Company and How)

In this article, we’ll go over why roofing is such a great business to get into and why you should consider going into it yourself.

We’ll also discuss common misconceptions about roofing and how to avoid them, as well as what to expect from your first year in business.

Is roofing a good business?

Roofing can be a good business to be in because people always need roofs for their homes and buildings.

Roofs protect us from the weather and keep us warm and dry inside. When a roof starts to leak or is damaged, it needs to be repaired or replaced, so there is a constant demand for roofing services.

However, starting a roofing business can be challenging. It requires a lot of hard work, physical labor, and specialized knowledge.

You will also need to have the right tools and equipment, and follow all local building codes and regulations. It can also be dangerous work, as you will be working on high roofs and using heavy materials.

Roofing can also be a lucrative business if you are skilled at your trade and are able to find enough clients.

The amount of money you can make will depend on a number of factors, such as your location, the cost of materials and labor in your area, the size and complexity of the roofs you work on, and your level of experience and reputation.

Overall, if you enjoy working with your hands, are physically fit, and are willing to put in the time and effort to learn the trade, roofing can be a rewarding and profitable business.

What are the pros of starting a roofing business?

Opportunity to develop a wide range of skills: By starting a roofing business, you will have the opportunity to learn and master a variety of skills, such as measuring and cutting roofing materials, installing flashing and underlayment, and using tools like hammers and nail guns.
Ability to work independently and set your own schedule: As the owner of a roofing business, you will have the freedom to work on your own schedule and decide how to structure your workday.
Potential to earn a substantial income: The roofing business has the potential to be very lucrative, as people will always need roofs for their homes and buildings. If you are skilled at your trade and are able to find enough clients, you can potentially earn a substantial income.
Ability to help people with their home improvement projects: By starting a roofing business, you will have the opportunity to help people with their home improvement projects.
Ability to gain experience in hiring and managing a team: If your business grows, you may have the opportunity to hire and manage a team of employees.
Ability to benefit from professional liability insurance coverage: As a roofing business owner, you may be able to purchase professional liability insurance coverage, which can protect you from financial losses if someone is injured on the job or if you make a mistake that causes damage to a client’s property.
Ability to take advantage of tax deductions: As a business owner, you may be eligible for certain tax deductions that can help reduce your overall tax bill.
Ability to benefit from industry certifications and guilds: There are various industry certifications and guilds that you can join as a roofing business owner, which can help you gain credibility and access to resources such as training and networking opportunities.
Ability to gain access to marketing and advertising resources: As a business owner, you will have the opportunity to promote your services to potential clients through marketing and advertising efforts. There are a variety of resources available to help you with this, such as online directories, social media platforms, and local advertising outlets.

What are the cons of starting a roofing business?

Physical demands of the job: Roofing can be physically demanding work, as it involves lifting heavy materials, climbing ladders, and working on roofs in various weather conditions. This can be challenging for some people, especially if they are not in good physical shape.
Risk of injury: Working on roofs can be dangerous, as there is a risk of falls, cuts, and other injuries. You have to remember to take proper safety precautions and follow all industry guidelines to minimize the risk of injury.
Seasonal work: Depending on where you live, the demand for roofing services may vary significantly depending on the season. For example, because of bad weather, roofing work may be slower in some places during the winter.
Competition: There may be a lot of competition in the roofing industry, especially in areas with a high demand for roofing services. It’s hard to attract new clients and stand out from the competition.
Startup costs: Starting a business can be expensive, as you will need to purchase tools and equipment, obtain licenses and insurance, and possibly rent a storefront or workshop.
Responsibility for running a business: As the owner of a business, you will be responsible for all aspects of the business, including marketing, sales, accounting, and customer service. This means there’s a lot of work involved and may require you to put in long hours to get your business off the ground.
Stress: Running a business can be stressful, as you will need to juggle multiple tasks and meet the expectations of your clients. You will also be responsible for making important decisions that can affect the success of your business.

What are the steps to starting a roofing business?

Step 1: Plan your business

Before starting your roofing business, you need to have a clear plan in place. This should include your goals, target market, pricing strategy, and marketing plan. You should also consider the costs and resources that will be required to start and run your business and develop a budget.

Step 2: Register your company

The next step is to register your business as a sole proprietorship, partnership, limited liability company (LLC), or corporation. You will need to choose a name for your business, register with the Secretary of State in your state, and get any licenses and permits you need.

Step 3: Register for taxes

You will need to sign up for different taxes, such as federal and state income tax, self-employment tax, and sales tax. You will also need to obtain an employer identification number (EIN) from the Internal Revenue Service (IRS). Some states also levy a tax known as the Franchise Tax.

Step 4: Set up business accounting

You will need to set up a system to track your income and expenses, pay your taxes, and prepare financial reports. This may involve hiring an accountant or using accounting software.

Step 5: Choose a supplier and vendor

In order to do your jobs, you will need to buy roofing materials and tools. Do the research and find different suppliers and vendors and choose those that offer competitive prices and good customer service.

Step 6: Obtain necessary permits and licenses

Depending on where you live, you may need to get different licenses and permits to legally run your roofing business. This may include a business license, building permit, and contractor’s license.

Step 7: Get business insurance

You have to protect your business with insurance, such as liability insurance, worker’s compensation insurance, and vehicle insurance. This will help cover the costs of any accidents or injuries that may occur on the job.

Step 8: Define your brand

Developing a strong brand can help you stand out from the competition and attract new clients. This could mean making a logo, a website, and other marketing materials that show who you are as a brand.

Step 9: Hire a team

As your business grows, you may need to hire a team of employees to help you with your roofing projects. This may include roofing technicians, sales staff, and office staff.

Step 10: Start marketing and sales

Once your business is up and running, I recommend to start marketing and selling your services to potential clients. This may involve creating a marketing plan, using social media and online directories, and networking with other professionals in the industry.

What are the startup costs for a roofing business?

Starting a roofing business can cost money. Here are some things you might need to pay for:

Registering your business with the government
Getting special papers or licenses you need to do your job
Insurance to protect your business in case of accidents
Tools and materials to do your job, as ladders and roofing felt
A place to work, like a workshop or storefront
A way to get to your job sites, like a truck or van
Advertising your business to people who might want to hire you
Paying employees if you have a team to help you
Asking for help from professionals, like accountants or lawyers

What type of liability insurance do I need for my roofing business?

As the owner of a roofing business, you will want to protect yourself and your business from any potential legal liabilities that may arise. One way to do this is by purchasing liability insurance. There are several types of liability insurance that may be relevant to your roofing business, including:

General liability insurance: This type of insurance covers you if you are sued by a third party for injuries or property damage that occur on your property or as a result of your business operations. For example, if a customer slips and falls on your workshop floor, or if your work damages a client’s property, general liability insurance can help cover the costs of legal fees and damages.
Professional liability insurance: Also known as errors and omissions insurance, this type of insurance covers you if you are sued for mistakes or failures in your work. For example, if you install a roof that later leaks and causes damage to a client’s home, professional liability insurance can help cover the costs of legal fees and damages. Contractors’ liability insurance is typically different from general liability insurance and professional liability insurance.
Worker’s compensation insurance: If you have employees, you will be required to carry worker’s compensation insurance, which covers medical expenses and lost wages for employees who are injured on the job.
Contractor’s liability insurance is another type of liability insurance that may be relevant to your roofing business. This type of insurance covers you if you are sued for damages or injuries that occur as a result of your work as a contractor. For example, if you are working on a roofing project and accidentally damage a client’s property, a contractor’s liability insurance can help cover the costs of legal fees and damages.

How profitable is roofing?

About 23% of roofing professionals make as much as $50,000 per year, 40% make between $50,000 and $100,000 per year, and 24% can make between $100,000 and $200,000 per year. This means that the majority of roofing professionals earn between $50,000 and $200,000 per year, with the average earning between $50,000 and $100,000 per year.

Earnings Range	Percentage of Roofing Professionals
$50,000 or less	23%
$50,000 to $100,000	40%
$100,000 to $200,000	24%

How do I make my roofing business successful?

Digital marketing

Digital marketing refers to promoting your business online through channels such as social media, your website, and online directories. By putting yourself out there online, you can reach more potential customers and show off what you can do.

I also highly recommend you use our business directory as a place to list and advertise your business!

Traditional marketing

Traditional marketing means promoting your business through offline channels like print ads, billboards, and radio or TV commercials. You can use traditional marketing to reach a local audience and build brand awareness.

Onboard a good team

Having a team of skilled and reliable employees can help your business run smoothly and efficiently. It’s important to hire employees who are knowledgeable and experienced in the roofing industry and who are committed to providing excellent customer service.

Providing great customer experience

Providing excellent customer service is key to building a successful business. This means being on time, being professional and kind, and going above and beyond to meet the needs of your clients.

Doing quality work

Providing high-quality work is essential for building a successful roofing business. This means using high-quality materials, following best practices in the industry, and making sure your work meets or exceeds what your clients want.

Networking with other contractors

Networking with other contractors in the industry can help you build relationships and learn from others’ experiences. This could mean joining trade groups or guilds, going to industry events, or working on projects with other contractors.

How can I create a successful business website for my roofing company?

Choose a professional-looking and easy-to-use website platform: There are many website platforms to choose from, such as WordPress, Squarespace, and Wix. Look for a platform that is easy to use and allows you to customize the look and feel of your website to match your brand.
Use high-quality photos: Show off your work by including high-quality photos of your roofing projects on your website. This will help potential clients get a sense of your capabilities and the quality of your work.
Include detailed information about your services: Your website should clearly outline the types of roofing services you offer, as well as any specialties or areas of expertise. Be sure to include details such as the types of roofs you work on, the materials you use, and the warranties you offer.
Include customer testimonials: Customer testimonials are a great way to build trust with potential clients. Include positive reviews or case studies on your website to showcase the satisfaction of your past clients.
Make it easy for visitors to contact you: Include your contact information prominently on your website, and make it easy for visitors to get in touch with you. This may include a contact form, email address, or phone number.
Optimize your website for search engines: To attract more visitors to your website, you have to optimize it for search engines. This may involve including relevant keywords in your website content, using descriptive page titles and meta descriptions, and ensuring that your website is mobile-friendly.

What are the different types of roofing services?

Roofing services are professional services related to the construction, repair, and maintenance of roofs. Here are some common types of roofing services:

Roof installation: This is when roofers are installing a new roof on a building. This may include tearing off the old roof, preparing the roof deck, and installing new roofing materials such as shingles, tiles, or metal panels.
Roof repair: This is when they work on fixing any issues or damage on an existing roof. This may include patching holes, replacing damaged shingles or tiles, sealing leaks, and repairing flashing or other components.
Roof maintenance: Roofers regularly inspect and maintain a roof to ensure that it is in good condition and to prevent small issues from becoming bigger problems. This may include cleaning gutters, replacing missing shingles or tiles, and applying a protective coating to extend the life of the roof.
Roof inspection: Roofers thoroughly inspect a roof to identify any issues or potential problems. This may be done before buying a new home, after a storm, or as part of regular maintenance.
Roof design: This is when a roofer is designing a roof that is aesthetically pleasing and functional, and that meets the specific needs and preferences of the client. This may involve working with an architect or designing the roof in-house.
Roof consultation: Roofers need to provide expert advice and recommendations to clients on roof-related issues, such as which roofing materials to use, how to repair or maintain a roof, or how to address specific issues or problems.

What qualifications do you need to become a roofing contractor?

The qualifications required to become a roofing contractor vary by location. Roofing contractors need to have a certain amount of education, training, and experience in the roofing industry. Here are some common qualifications that may be required to become a roofing contractor:

Education: Many roofing contractors have at least a high school diploma. Some may have additional education, such as a degree in construction management or a related field.
Training: Many roofing contractors receive on-the-job training from experienced contractors or roofing technicians. Some may also complete formal training programs or apprenticeships, which can provide more in-depth knowledge of the roofing industry.
Experience: Many roofing contractors gain experience by working as roofing technicians or apprentices before starting their own businesses. This can help them learn the skills and techniques needed to succeed in the industry.
Licensing: Many states and localities require roofing contractors to be licensed in order to legally operate a roofing business. In order to obtain a license, roofing contractors may be required to pass a written exam and meet certain educational and experience requirements.
Certification: Some roofing contractors choose to pursue additional certifications in order to demonstrate their expertise and professionalism. For example, the National Roofing Contractors Association (NRCA) offers an NRCA ProCertified Roof System Installer or GAF with their GAF Master Elite Certification program, both of which require a combination of education, experience, and a passing score on an exam.

Why do some roofing companies fail?

Roofing companies can fail for many reasons. Here are some common reasons why some roofing companies may struggle:

Lack of experience: Some roofing companies may fail because they don’t have enough experience in the industry. It’s definitely difficult for them to complete projects effectively, or to compete with more experienced contractors.
Poor quality work: If a roofing company does not provide high-quality work, it may struggle to retain customers or attract new business. Poor quality work can lead to complaints, negative reviews, and legal issues.
Poor customer service: If a roofing company does not provide good customer service, it may struggle to retain customers and attract new business. The biggest culprit is being unresponsive, unreliable, or disrespectful to clients.
Lack of financial planning: Some roofing companies may fail because they do not have a solid financial plan in place. Unfortunately, not everyone has enough capital to cover expenses, not setting aside money for unexpected costs or emergencies, or not pricing projects accurately.
Lack of marketing: If a roofing company does not effectively market itself, it may struggle to attract new clients. It’s important to own a website, advertise in local directories (such as this one!) or newspapers, or network with other contractors or industry professionals.

Is a roofing company recession-proof?

It’s difficult to say whether any particular industry is completely “recession-proof,” as economic recessions can affect different industries in different ways.

However, it is possible that the roofing industry may be less affected by economic downturns than some other industries, for a few reasons:

Roofs are necessary: Regardless of economic conditions, roofs are a necessary component of any building and need to be maintained or replaced when necessary. You might find roofing to likely always be a demand for roofing services, even during economic downturns.
Roofing work is often time-sensitive: Leaks or other issues can cause damage to the interior of a building if not addressed promptly. Roofing work is more likely to be prioritized over other types of home improvement projects during economic downturns.
Government incentives: During economic downturns, governments may offer incentives to homeowners to make home improvements, such as energy-efficient upgrades or weatherization. Consider roofing work, which could help to boost demand for roofing services.

That being said, understand that the roofing industry is not immune to economic downturns, and some roofing companies may still struggle during these times.

For example, during the Great Recession, many construction and home improvement companies, including roofing companies, saw a decline in business as the housing market slowed and people scaled back on home improvement projects.

However, the roofing industry did recover along with the overall economy, and many companies were able to adapt and continue operating successfully.

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