Do you want to start roofing business?

Do you want to start roofing business? This is the sort of business whose demand can never subside as every house requires a roof and every roof requires time-to-time maintenance. Although the startup is a bit difficult, however you won’t be at loss provided that you plan your roofing business carefully.

To write an effective business plan, you need an accurate marketing analysis, distinct sales strategy, notable professionals and an accurate financial plan. If you are having a difficulty in making your business plan, you can take help from this sample business plan for a roofing business startup named, ‘Edward Roofers’.

Executive Summary

2.1 The Business

Edward Roofers will be managed and owned by two brothers, Paul Edward and Kim Edward. The business is based on installing, repairing and shingling roofs of residential houses and small offices. Our business, as well as all our workers, are insured and licensed. Our roofing company mission statement is to provide flawless and trusted service to the people of Seattle.

2.2 Management

If you are willing to start a roofing business, you will surely be thinking that what do i need to start a roofing business. Well, besides the general tools, trucks, and ladder, the only thing that matters, is the expertise and skill of your workers. Edward Brothers have hired licensed and insured professionals and have decided to manage the workers by themselves.

2.3 Customers

Finding out that who can be your possible customers, will guide you in defining your work policies according to their interests. If you are starting a roofing business, then the residents, proprietors, construction contractors and small companies’ owners of the city where your business is located, will be your target customers.

2.4 Target of the Company

Companies’ targets to provide the best roofing service to the people of Seattle, and to generate a good profit within the first three years of launch, as summarized in the following table:

Roofing Business Plan - 3 Years Profit Forecast

Company Summary

3.1 Company Owner

Paul Edward and Kim Edward are starting a roofing business, named ‘Edward Roofers’ and will be the managers themselves. The two brothers are famous for their coordination with each other and for their quick and successful power wash company. Edward brothers are trusted in the whole Seattle for the value and importance they give to their clients, workers and their work.

3.2 Why the Business is being started

Before thinking that how to start a roofing business, you must be clear that why do you want to start it. Edward brothers have solely started the roofing business because of its rising demand, and to widen their business scales. They believe in earning a profit by giving the customers maximum satisfaction.

3.3 How the Business will be started

Roofing business is more difficult to run successfully than to start. Edward Roofers will be a registered and insured business run by a team of skilled, licensed and insured workers in the management of Paul and Kim. Basic equipment like roofing tools, trucks, ladders, inventory etc. will be bought. The company will make an online purchasing facility to take orders and scheduling times.

The detailed start-up requirements as forecasted by our company’s analysts is given below:

Roofing Business Plan - Startup Cost

Start-up Expenses 
Legal$55,300
Consultants$0
Insurance$32,750
Rent$32,500
Research and Development$32,750
Expensed Equipment$32,750
Signs$1,250
TOTAL START-UP EXPENSES$187,300
Start-up Assets$0
Cash Required$332,500
Start-up Inventory$32,625
Other Current Assets$232,500
Long-term Assets$235,000
TOTAL ASSETS$121,875
Total Requirements$245,000
START-UP FUNDING$0
START-UP FUNDING$273,125
Start-up Expenses to Fund$11,875
Start-up Assets to Fund$15,000
TOTAL FUNDING REQUIRED$0
Assets$23,125
Non-cash Assets from Start-up$18,750
Cash Requirements from Start-up$0
Additional Cash Raised$18,750
Cash Balance on Starting Date$21,875
TOTAL ASSETS$0
Liabilities and Capital$0
Liabilities$0
Current Borrowing$0
Long-term Liabilities$0
Accounts Payable (Outstanding Bills)$0
Other Current Liabilities (interest-free)$0
TOTAL LIABILITIES$0
Capital$0
Planned Investment$0
Investor 1$332,500
Investor 2$0
Other$0
Additional Investment Requirement$0
TOTAL PLANNED INVESTMENT$695,000
Loss at Start-up (Start-up Expenses)$313,125
TOTAL CAPITAL$251,875
TOTAL CAPITAL AND LIABILITIES$251,875
Total Funding$255,000

Services for customers

Before starting roofing business, you must decide on the services you will provide your customers. It is not the number of your services that decide the reputation of you and your startup, it is the quality. If you are going to start a roofing business, you should set your services according to your manpower and investment. To compete with your competitors, you must put all your resources in providing the customers with best-quality service and satisfaction.

Edward Roofers will provide the following services:

  • Installing Roofs: We have licensed and insured workers with ten-year experience to shingle your roofs with metal or asphalt with architectural shingles available in almost all colors.
  • Repairing Roofs: In case, your roof is leaking or in need of replacing shingles from some part, we are there to perform our duty.
  • Roof Ventilation: We have intake and exhaust vents and the experts to install them in your roofs for attic ventilation.
  • Ice & Water Shields: We have experts to install ice and water shields in your roof to prevent damage by wind-driven ice or rain.

Our work and workers are insured, in case of any damage to your property or any of our worker, the company will be liable to pay the retaliation and no charges will be taken from you.

Marketing Analysis of Roofing Business

If you are starting a roofing business, you must do an accurate marketing analysis in your roofing business plan. Roofing business is an outdoor business, so in your roofing company business plan, you must include the ways by which you can connect to your customers and provide them a fast service in such a busy city. For marketing a roofing business, the best way besides keeping the prices low is to make it easy for your target customers to avail your services.

If you are searching marketing ideas for roofing companies, one of the best roofing marketing ideas  is to provide your customers an easy availability to you. As people usually hesitate to go far off companies to buy their services, so it is recommended to make a website for your roofing company marketing, with an online payment and ordering system. This will help your business flourish, as the reviews of your prior clients can be analyzed by new ones, and people from any corner of the city won’t find hesitation in calling you to their location.

In case you need help regarding your startup, you can take help from a number of sample roofing business plans  available online, as this sample roofing business plan of Edward Roofers.

5.1 Marketing Trends

Roofing business is a type of business which can never experience a downfall, as every building requires a roof and every roof requires timely maintenance. Especially in the United States, roofing business is growing rapidly due to broad economic developments. There are about 100,367 roofing businesses running in the United States, generating a revenue of $42 billion annually. It is reported by IBISWorld that the business has employed more than 260 thousand people and has seen an annual growth of 3.5% during the recent years. So, if you are starting this business due to its rising demand, you must first prepare yourself to survive in so large competition. If you have come up with extraordinary competitive advantages, no hurdle can mitigate the success of your startup.

5.2 Marketing Segmentation

An accurate business plan requires an accurate analysis of your potential customers. It is always better to analyze your target customers and identify their needs, to meet their expectations and requirements. Edward Roofers has hired a marketing analyst who has found the following people as his target audience.

Roofing Business Plan - Marketing Segmentation

5.2.1 Residents: The residents of Seattle, will be our biggest target customers. The residents will avail our services of installing roofs as well as roof ventilation and installing water and ice shields. Moreover, they will require our services of repairing or shingling the damaged parts of their roofs due to wild climatic patterns.

5.2.2 Construction Contractors: Our second biggest purchasers will be the construction contractors. Contractors need a number of people for diverse services while constructing buildings. Roofing and ventilation is the service which is essential in every type of structure, so we are expected to get orders from the contractors as well.

5.2.3 Proprietors & Small Company Owners: Small company owners and some proprietors when are in a need of some construction or repairing work, prefer to get the service done by small yet trusted companies like us. So, we expect to get orders for ventilation or repairing roofs from this category too.

The detailed market analysis of our potential customers is given in the following table:

Market Analysis
Potential CustomersGrowthYear 1Year 2Year 3Year 4Year 5CAGR
Construction Contractors32%11,43313,34416,55318,74520,54513.43%
Residents48%22,33432,34443,66552,54466,43210.00%
Proprietors & Small Company Owner20%12,86714,43315,99917,56519,13115.32%
Total100%46,63460,12176,21788,854106,1089.54%

5.3 Packages Pricing

The people of Seattle are able to pay high for the high-quality services. To provide our customers with the best quality services and the best material we can’t compromise on the prices. So keeping in view our target audience and their demands, we haven’t priced our services low, instead, our prices are almost in the same range as of our competitors.

5.4 Business Target of the Company

Our business target is to become the most trusted and most successful roofing company in the whole of Seattle. We want to serve our fellow citizens by providing them with our reputable service. Besides that, we also have some financial targets, which includes generating at least a profit in the first five months that can balance our startup costs. And growing our business and range of our services to serve a further large audience.

Strategy

6.1 Competitors

You can never estimate how much does it cost to start a roofing company until you know your competitors and their strategy. Either you have to come up with extraordinary competitive edges, or you have to keep your prices low in the initial stages for if you want people to avail your services.

Edward Roofers is located in Seattle, where people are financially stable and don’t compromise dollars over work quality. Thus, we haven’t priced our services low, instead, we have come with the unmatched and most valuable competitive advantages. Our business and all our workmen are insured, which means that if any of our workers make even the tiniest mistake, our company will be responsible for its repair. Moreover, if any of our workers get some injury while working, you won’t be liable for any charges. Our biggest competitive advantage is our quick service, and the value we give our customers and their property, only we in the whole market are providing an online booking system for receiving your orders and scheduling time so that you don’t need to come to our office if it is far or if you don’t want to!

6.2 Sales Strategy

If you are looking for starting a roofing business tips, we are telling you the biggest tip which is advertising your business through print & social media by providing different packages in the initial stages, this is the only way of getting the attention of your target customers.

6.3 Sales Forecast

Roofing Business Plan - Unit Sales

The detailed information about the sales forecast, total unit sales, total sales is given in the following table.

Sales Forecast   
Unit SalesYear 1Year 2Year 3
Installing Roofs1,887,0302,680,3202,588,240
Repairing Roofs802,370815,430823,540
Roof Ventilation539,3207702301,002,310
Ice & Water Shields265,450322,390393,320
TOTAL UNIT SALES3,494,1704,588,3704,807,410
Unit PricesYear 1Year 2Year 3
Installing Roofs$140.00$150.00$160.00
Repairing Roofs$600.00$800.00$1,000.00
Roof Ventilation$700.00$800.00$900.00
Ice & Water Shields$650.00$750.00$850.00
Sales
Installing Roofs$2,149,800$2,784,000$3,383,200
Repairing Roofs$120,050$194,500$268,500
Roof Ventilation$50,110$71,600$93,000
Ice & Water Shields$139,350$194,600$249,850
TOTAL SALES
Direct Unit CostsYear 1Year 2Year 3
Installing Roofs$0.70$0.80$0.90
Repairing Roofs$0.40$0.45$0.50
Roof Ventilation$0.30$0.35$0.40
Ice & Water Shields$3.00$3.50$4.00
Direct Cost of Sales
Installing Roofs$989,300$1,839,000$2,679,700
Repairing Roofs$66,600$119,900$173,200
Roof Ventilation$17,900$35,000$52,100
Ice & Water Shields$19,400$67,600$115,800
Subtotal Direct Cost of Sales$1,294,100$1,699,400$2,104,700

6.4 Sales Monthly

Roofing Business Plan - Sales Monthly

6.5 Sales Yearly

Roofing Business Plan - Sales Yearly

Personnel plan

Roofing business is a type of business which is totally dependent upon your workers and management system. So, if you are looking for how to start your own roofing business, set your first priority to recruit the right person for the right job. You can take help from many roofing business plan examples like this one.

Edward brothers will manage the business themselves, by hiring the following personnel:

  • 8 Warehouse Officers for loading and recording stocks
  • 8 Roof loaders
  • 2 Drivers
  • 1 Accountant for managing finances
  • 2 Receptionist for receiving orders
  • 2 Persons for receiving orders online or via telephone and managing companies’ website
  • 5 General Workers for routine assistance

The following table shows the forecasted data about employees and their salaries for the next three years.

 Personnel Plan   
Year 1Year 2Year 3
Accountants$85,000$95,000$105,000
Sales Executives$45,000$50,000$55,000
Warehouse Officers$550,000$650,000$750,000
Roof Loaders$410,000$440,000$480,000
Drivers$152,000$159,000$166,000
General Workers$145,000$152,000$159,000
Receptionist$50,000$55,000$60,000
Customer Reps$187,000$194,000$201,000
Total Salaries$562,000$599,000$646,000

Financial Plan

The success of a startup and the growth of any business depends upon its accurate financial planning and an estimate that how the company will balance the startup costs with the earned profits. Edward brothers have hired the services of a professional financial plan developer to outline the roofing company profit margins over the next three years. The business will be financed by both brothers and is expected to grow rapidly due to the excellent coordination between the two.

Since roofing business isn’t an indoor business, so the major amount will be spent on hiring the expert professionals and buying the best quality material. If you are looking for how to start my own roofing business  or if you need some guidance regarding the financial plan, you can take help from this sample business plan. However, if you are starting your business on a large scale then it will be better to hire a professional to write you an accurate financial plan with exact figures.

8.1 Important Assumptions

 General Assumptions   
Year 1Year 2Year 3
Plan Month123
Current Interest Rate10.00%11.00%12.00%
Long-term Interest Rate10.00%10.00%10.00%
Tax Rate26.42%27.76%28.12%
Other000

 

8.2 Brake-even Analysis

Roofing Business Plan - Brake-even Analysis

 Brake-Even Analysis 
Monthly Units Break-even5530
Monthly Revenue Break-even$159,740
Assumptions:
Average Per-Unit Revenue$260.87
Average Per-Unit Variable Cost$0.89
Estimated Monthly Fixed Cost$196,410

 

8.3 Projected Profit and Loss

 Pro Forma Profit And Loss   
Year 1Year 2Year 3
Sales$309,069$385,934$462,799
Direct Cost of Sales$15,100$19,153$23,206
Other$0$0$0
TOTAL COST OF SALES$15,100 $19,153 $23,206
Gross Margin$293,969$366,781$439,593
Gross Margin %94.98%94.72%94.46%
Expenses
Payroll$138,036$162,898$187,760
Sales and Marketing and Other Expenses$1,850$2,000$2,150
Depreciation$2,070$2,070$2,070
Leased Equipment$0$0$0
Utilities$4,000$4,250$4,500
Insurance$1,800$1,800$1,800
Rent$6,500$7,000$7,500
Payroll Taxes$34,510$40,726$46,942
Other$0$0$0
Total Operating Expenses$188,766$220,744$252,722
Profit Before Interest and Taxes$105,205$146,040$186,875
EBITDA$107,275$148,110$188,945
Interest Expense$0$0$0
Taxes Incurred$26,838$37,315$47,792
Net Profit$78,367$108,725$139,083
Net Profit/Sales30.00%39.32%48.64%

8.3.1 Profit Monthly

Roofing Business Plan - Profit Monthly

8.3.2 Profit Yearly

Roofing Business Plan - Profit Yearly

8.3.3 Gross Margin Monthly

Roofing Business Plan - Gross Margin Monthly

8.3.4 Gross Margin Yearly

Roofing Business Plan - Gross Margin Yearly

8.4 Projected Cash Flow

Roofing Business Plan - Projected Cash Flow

 Pro Forma Cash Flow   
Cash ReceivedYear 1Year 2Year 3
Cash from Operations
Cash Sales$40,124$45,046$50,068
Cash from Receivables$7,023$8,610$9,297
SUBTOTAL CASH FROM OPERATIONS$47,143 $53,651 $59,359
Additional Cash Received
Sales Tax, VAT, HST/GST Received$0$0$0
New Current Borrowing$0$0$0
New Other Liabilities (interest-free)$0$0$0
New Long-term Liabilities$0$0$0
Sales of Other Current Assets$0$0$0
Sales of Long-term Assets$0$0$0
New Investment Received$0$0$0
SUBTOTAL CASH RECEIVED$47,143 $53,651 $55,359
ExpendituresYear 1Year 2Year 3
Expenditures from Operations
Cash Spending$21,647$24,204$26,951
Bill Payments$13,539$15,385$170,631
SUBTOTAL SPENT ON OPERATIONS$35,296 $39,549 $43,582
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out$0$0$0
Principal Repayment of Current Borrowing$0$0$0
Other Liabilities Principal Repayment$0$0$0
Long-term Liabilities Principal Repayment$0$0$0
Purchase Other Current Assets$0$0$0
Purchase Long-term Assets$0$0$0
Dividends$0$0$0
SUBTOTAL CASH SPENT$35,296 $35,489 $43,882
Net Cash Flow$11,551$13,167$15,683
Cash Balance$21,823$22,381$28,239

8.5 Projected Balance Sheet

 Pro Forma Balance Sheet   
AssetsYear 1Year 2Year 3
Current Assets
Cash$184,666$218,525$252,384
Accounts Receivable$12,613$14,493$16,373
Inventory$2,980$3,450$3,920
Other Current Assets$1,000$1,000$1,000
TOTAL CURRENT ASSETS$201,259 $237,468 $273,677
Long-term Assets
Long-term Assets$10,000$10,000$10,000
Accumulated Depreciation$12,420$14,490$16,560
TOTAL LONG-TERM ASSETS$980 $610 $240
TOTAL ASSETS$198,839 $232,978 $267,117
Liabilities and CapitalYear 1Year 2Year 3
Current Liabilities
Accounts Payable$9,482$10,792$12,102
Current Borrowing$0$0$0
Other Current Liabilities$0$0$0
SUBTOTAL CURRENT LIABILITIES$9,482 $10,792 $12,102
Long-term Liabilities$0$0$0
TOTAL LIABILITIES$9,482 $10,792 $12,102
Paid-in Capital$30,000$30,000$30,000
Retained Earnings$48,651$72,636$96,621
Earnings$100,709$119,555$138,401
TOTAL CAPITAL$189,360 $222,190 $255,020
TOTAL LIABILITIES AND CAPITAL$198,839 $232,978 $267,117
Net Worth$182,060$226,240$270,420

 

8.6 Business Ratios

 Ratio Analysis    
Year 1Year 2Year 3Industry Profile
Sales Growth4.35%30.82%63.29%4.00%
Percent of Total Assets4.35%4.71%5.80% 9.80%
Accounts Receivable5.61%4.71%3.81%9.70%
Inventory1.85%1.82%1.79%9.80%
Other Current Assets1.75%2.02%2.29%27.40%
Total Current Assets138.53%150.99%163.45%54.60%
Long-term Assets-9.47%-21.01%-32.55%58.40%
TOTAL ASSETS100.00%100.00%100.00%100.00%
Current Liabilities4.68%3.04%2.76%27.30%
Long-term Liabilities0.00%0.00%0.00%25.80%
Total Liabilities4.68%3.04%2.76%54.10%
NET WORTH99.32%101.04%102.76%44.90%
Percent of Sales
Sales100.00%100.00%100.00%100.00%
Gross Margin94.18%93.85%93.52%0.00%
Selling, General & Administrative Expenses74.29%71.83%69.37%65.20%
Advertising Expenses2.06%1.11%0.28%1.40%
Profit Before Interest and Taxes26.47%29.30%32.13%2.86%
Main Ratios
Current25.8629.3932.921.63
Quick25.428.8832.360.84
Total Debt to Total Assets2.68%1.04%0.76%67.10%
Pre-tax Return on Net Worth66.83%71.26%75.69%4.40%
Pre-tax Return on Assets64.88%69.75%74.62%9.00%
Additional RatiosYear 1Year 2Year 3
Net Profit Margin19.20%21.16%23.12%N.A.
Return on Equity47.79%50.53%53.27%N.A.
Activity Ratios
Accounts Receivable Turnover4.564.564.56N.A.
Collection Days9299106N.A.
Inventory Turnover19.722.5525.4N.A.
Accounts Payable Turnover14.1714.6715.17N.A.
Payment Days272727N.A.
Total Asset Turnover1.841.551.26N.A.
Debt Ratios
Debt to Net Worth0-0.02-0.04N.A.
Current Liab. to Liab.111N.A.
Liquidity Ratios
Net Working Capital$120,943$140,664$160,385N.A.
Interest Coverage000N.A.
Additional Ratios
Assets to Sales0.450.480.51N.A.
Current Debt/Total Assets4%3%2%N.A.
Acid Test23.6627.0130.36N.A.
Sales/Net Worth1.681.290.9N.A.
Dividend Payout000N.A.