Table of Content

    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 Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
    Construction Contractors 32% 11,433 13,344 16,553 18,745 20,545 13.43%
    Residents 48% 22,334 32,344 43,665 52,544 66,432 10.00%
    Proprietors & Small Company Owner 20% 12,867 14,433 15,999 17,565 19,131 15.32%
    Total 100% 46,634 60,121 76,217 88,854 106,108 9.54%

    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 business 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 Sales Year 1 Year 2 Year 3
    Installing Roofs 1,887,030 2,680,320 2,588,240
    Repairing Roofs 802,370 815,430 823,540
    Roof Ventilation 539,320 770230 1,002,310
    Ice & Water Shields 265,450 322,390 393,320
    TOTAL UNIT SALES 3,494,170 4,588,370 4,807,410
    Unit Prices Year 1 Year 2 Year 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 Costs Year 1 Year 2 Year 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 1 Year 2 Year 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 1 Year 2 Year 3
    Plan Month 1 2 3
    Current Interest Rate 10.00% 11.00% 12.00%
    Long-term Interest Rate 10.00% 10.00% 10.00%
    Tax Rate 26.42% 27.76% 28.12%
    Other 0 0 0

     

    8.2 Brake-even Analysis

    Roofing Business Plan - Brake-even Analysis

     Brake-Even Analysis  
    Monthly Units Break-even 5530
    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 1 Year 2 Year 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/Sales 30.00% 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 Received Year 1 Year 2 Year 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
    Expenditures Year 1 Year 2 Year 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      
    Assets Year 1 Year 2 Year 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 Capital Year 1 Year 2 Year 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 1 Year 2 Year 3 Industry Profile
    Sales Growth 4.35% 30.82% 63.29% 4.00%
    Percent of Total Assets 4.35% 4.71% 5.80%  9.80%
    Accounts Receivable 5.61% 4.71% 3.81% 9.70%
    Inventory 1.85% 1.82% 1.79% 9.80%
    Other Current Assets 1.75% 2.02% 2.29% 27.40%
    Total Current Assets 138.53% 150.99% 163.45% 54.60%
    Long-term Assets -9.47% -21.01% -32.55% 58.40%
    TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
    Current Liabilities 4.68% 3.04% 2.76% 27.30%
    Long-term Liabilities 0.00% 0.00% 0.00% 25.80%
    Total Liabilities 4.68% 3.04% 2.76% 54.10%
    NET WORTH 99.32% 101.04% 102.76% 44.90%
    Percent of Sales
    Sales 100.00% 100.00% 100.00% 100.00%
    Gross Margin 94.18% 93.85% 93.52% 0.00%
    Selling, General & Administrative Expenses 74.29% 71.83% 69.37% 65.20%
    Advertising Expenses 2.06% 1.11% 0.28% 1.40%
    Profit Before Interest and Taxes 26.47% 29.30% 32.13% 2.86%
    Main Ratios
    Current 25.86 29.39 32.92 1.63
    Quick 25.4 28.88 32.36 0.84
    Total Debt to Total Assets 2.68% 1.04% 0.76% 67.10%
    Pre-tax Return on Net Worth 66.83% 71.26% 75.69% 4.40%
    Pre-tax Return on Assets 64.88% 69.75% 74.62% 9.00%
    Additional Ratios Year 1 Year 2 Year 3
    Net Profit Margin 19.20% 21.16% 23.12% N.A.
    Return on Equity 47.79% 50.53% 53.27% N.A.
    Activity Ratios
    Accounts Receivable Turnover 4.56 4.56 4.56 N.A.
    Collection Days 92 99 106 N.A.
    Inventory Turnover 19.7 22.55 25.4 N.A.
    Accounts Payable Turnover 14.17 14.67 15.17 N.A.
    Payment Days 27 27 27 N.A.
    Total Asset Turnover 1.84 1.55 1.26 N.A.
    Debt Ratios
    Debt to Net Worth 0 -0.02 -0.04 N.A.
    Current Liab. to Liab. 1 1 1 N.A.
    Liquidity Ratios
    Net Working Capital $120,943 $140,664 $160,385 N.A.
    Interest Coverage 0 0 0 N.A.
    Additional Ratios
    Assets to Sales 0.45 0.48 0.51 N.A.
    Current Debt/Total Assets 4% 3% 2% N.A.
    Acid Test 23.66 27.01 30.36 N.A.
    Sales/Net Worth 1.68 1.29 0.9 N.A.
    Dividend Payout 0 0 0 N.A.

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