The global roofing industry is expected to reach $184.53 billion by 2031, growing at a compound annual growth rate (CAGR) of 5.50% from 2024.

Want to become part of this booming industry? But unsure about how to start your own roofing business?

Then, you’re in the right place.

The demand for quality roofing services is on the rise. Homeowners and businesses alike are in need of reliable roofing solutions, from repairs to complete installations. 

To help new roofing companies set up and run their business successfully, we’ve put together this comprehensive guide. It covers the essential things you need to know on how to start your own roofing business. 

Let’s get started with the basics.

Understanding The Roofing Industry

The roofing industry is a vital part of the construction sector, providing essential protection for building. If you’re considering how to start your own roofing business, it’s important to understand the industry’s ins and outs to succeed. Let’s explore the following areas:

Types of Services Offered

Roofing companies offer a wide range of services to meet the needs of their customers. Here are some of the most common ones:

• Roof Inspection and Installation: This is the most basic service in the roofing industry. It involves installing new roofs on buildings, which could be for new constructions or replacing old, worn-out roofs.

• Roof Repair: Over time, roofs can suffer damage due to weather, wear and tear, or other factors. Companies offer repair services to fix leaks, replace damaged shingles, and address other issues.

• Roof Maintenance: Preventive maintenance is important for keeping a roof in good condition. This service includes routine inspections, cleaning gutters, and addressing minor issues before they become major problems.

• Specialized Roofing Services: Some roofing companies offer specialized services such as installing solar panels, green roofs, or other eco-friendly options for property owners looking for sustainable solutions.

Market Trends and Opportunities

As a dynamic industry, the roofing business sector is evolving to meet the changing needs of customers and the built environment. Several market trends are shaping the industry, creating opportunities for businesses, including:

• Sustainable Roofing: A major trend is the increasing emphasis on sustainability. Eco-friendly materials, such as metal roofs, solar tiles, and green roofing systems, are gaining popularity. These innovations can enhance energy efficiency and reduce environmental impact.

• Changing Customer Preferences: Customers are tilting towards aesthetically pleasing and durable roofing options. Trends in design, color, and material are influencing purchasing decisions, leading to increased demand for high-quality and visually appealing roofs.

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Challenges in the Roofing Industry

While the roofing industry offers opportunities for businesses, it also comes with its challenges. Here are some common ones you can encounter when planning on how to start your own roofing business: 

• Safety Concerns: Roofing is one of the most dangerous businesses in the construction industry. Workers are exposed to the risk of falls, injuries from tools, and extreme weather conditions.

• Weather Dependence: Providing roofing services largely depends on weather conditions. Rain, snow, extreme heat, or other adverse conditions can disrupt roofing project timelines and increase costs.

• Market Competition: The industry is competitive, making it challenging for new businesses to establish themselves. Several contractors are vying for the same customers with businesses.

• Fluctuating Material Costs: The cost of roofing materials can vary due to supply chain issues, changes in demand, and other issues which can make it challenging to maintain profitability as a roofing business owner.

How to Start Your Own Roofing Business: Key Steps to Follow

Starting your own business can be a profitable venture, but it requires careful planning and execution. Here are the essential steps to guide you through the process: 

1. Conduct an Initial Market Evaluation

An important part of learning how to start your own roofing business is to evaluate the market landscape. 

You should conduct thorough research of the roofing businesses in the local market where you intend to operate. How many roofing companies are currently active in the area? What types of roofing services are they offering and what is their customer base?

Determine how your new roofing business can differentiate itself from competitors. To do this, identify gaps in the market where there is a demand for services that are not currently being offered by competitors.

For instance, you can identify specific customer segments with unmet needs, such as homeowners with older homes or businesses requiring specialized roofing solutions.

You can also explore potential niche markets within the roofing industry, such as residential re-roofing, commercial roofing, or emergency roof repair. This way, you can help carve out a niche for your own roofing business.

2. Assess Your Skills and Expertise

Take an honest look at your skills, expertise, and experience to determine if you have what it takes to start a successful roofing business. 

Roofing business is a specialized field that demands an understanding of various materials, techniques, and regulations. 

Do you have hands-on experience in roofing, or are you more adept at managing projects?

Having certain roofing experience and skills may be advantageous, but it’s not always a prerequisite. If you’re confident in your ability to handle different types of roofing projects, you’re off to a good start. 

However, if there are gaps in your knowledge about the field, consider taking courses or gaining hands-on experience to strengthen your expertise. This can help to boost your credibility with potential customers. 

Additionally, evaluate your business management skills. Running a roofing business involves more than just technical skills; it requires strong organizational abilities, financial literacy, customer relations, and more. 

Knowing where you stand in these areas can help you decide whether to bring on professionals to complement your skill set.

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3. Make a Plan for Your Roofing Business

Every small business may start with an idea but a well-documented business plan should be part of your business startup checklist. 

As a roofing business owner, this will help to map out the specifics of your new business and prepare you for challenges you may face.

Let’s take a look at a few points that you should consider when making a plan for how to start your own roofing business:

• What are the startup and ongoing costs of roofing businesses?

You need to pay state and federal filing fees to register your roofing company.

Though you can start a roofing company from your home, you will need more space in the future. You’ll also need storage space for roofing materials.

You should also consider the costs involved in the transportation of roofing materials, overhead expenses of your company, office supplies, and wages of the roofers and other employees you’ll hire.

You’ll also need to pay insurance premiums for liability insurance and workers’ compensation.

• Who is your target market?

Roofing businesses prefer to work with individuals or companies who have multiple properties as it brings more roofing work their way.

Many roofers also prefer to work with customers who own a property with a flat roof instead of those who own a property with a steep roof.

While some roofing contractors offer services across states, you can also choose to set up a local business and cater to customers in your own region.

All of these points will help you identify who your ideal customers are.

• What type of roofing service will you offer?

You need to decide on the type of roofing service you will offer. As a roofer, you can provide your customers with services such as new roofing, roof replacement, roof repair, leakage repair, and more.

You should also determine whether you want to offer residential roofing or commercial roofing services.

• How much can you charge customers?

You should finalize a pricing model for your roofing work to determine how you’ll charge your customers. You need to evaluate the total expenses on transportation, roofing material, and roofers’ wages and add your profit margin.

You should also research how much your competitors are charging their customers so that you can make your business stand out from them.

On average, you can charge $5K-$10K for roof replacement services based on the area and type of roofing. A full roof replacement costs more than roofing over services (putting a new layer on the existing roof).   

Also, you can charge between $350-$450 for a roof inspection, $500-$700 for roof cleaning, and $750-$1000 to repair roof leaks. 

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4. Pick a Name and Business Structure for Your Roofing Company

The next step on how to start your own roofing business is to name your company. You should choose a roofing business name that is unique, memorable, and relevant to the services you offer. 

Before finalizing a name, it’s essential to conduct a thorough search to ensure it’s not already in use by another business. You should also check with the Secretary of State to ensure no one else has registered it already or use an online business name search tool. 

Along with selecting a name for your roofing company, you will also have to choose a business entity or structure. The structure you decide on for your roofing company can impact your taxes, liability, and management. 

For example, in a sole proprietorship, you and your business are considered one and the same. While easy to set up, it offers no personal liability protection.

Other business entities like a Limited Liability Company (LLC) and Corporation offer personal liability protection for its owners but a Corporation can be more complex to set up and maintain.

As a new business owner, you can consider forming an LLC to start a roofing company. 

Forming an LLC reduces your liabilities as a business owner and protects your personal assets. Many small businesses prefer this entity type because of the flexibility it offers in operational, management, and taxation structures.

To form an LLC, you will have to file Articles of Organization with the Secretary of State’s office and choose a Registered Agent who will be responsible for receiving all legal paperwork on your behalf.

You should also create an LLC Operating Agreement to define the roles and responsibilities of each of the members (owners) of your LLC.

Along with state filing, you’ll also have to file for an Employer Identification Number (EIN) with the internal revenue service (IRS). You’ll need this nine-digit number or tax ID to file your taxes, hire employees, open a business bank account, and more.

The entire process of business formation can be challenging for new business owners. But we can do all of the heavy lifting for you. Our LLC formation service is discounted to $149 (plus state filing fees). 

This is much less than other services in the market or hiring an accountant. The LLC filing package includes: Federal EIN, State Articles of Organization, an LLC Operating Agreement, 5 other essential legal documents, cash back on a business bank account, and a free tax savings analysis for your new LLC business. 

All you have to do is fill out one simple application to form an LLC for your roofing company. 

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5. Obtain Necessary Business Permits, Licenses and Insurance

In addition to essential legal documents like Articles of Organization, Operating Agreement, and others needed to start a business, you may need contractor licensing to work as a roofer and set up a roofing company. This license ensures that you meet certain qualifications and adhere to industry standards. However, roofing licensing and certification rules vary from state to state, and city and county.

Besides roofing contractor’s license, you might need additional business permits depending on your location. These can include zoning permits, building permits, and others.

You should check with the State Contractors’ Board or the local authorities in your state to see which business permits and licenses you will need to run a local business in the roofing industry.

Moreover, securing the necessary types of insurance is also an important step on how to start your own roofing business. Insurance can protect your roofing company from potential risks and liabilities, and ensure the well-being of your workers.

You should buy the following insurance plans for your roofing company:

• General liability insurance to cover you for any property damage caused by the roofing professionals associated with your company. For instance, if your team accidentally damages a customer’s property or someone gets injured due to your work, general liability insurance will help cover the costs and protect your business from legal claims.

• Workers’ compensation insurance to cover your employees if they become sick or injured on the job. Roofing is a high-risk business, and workers’ compensation provides financial support for medical expenses and lost wages. While this is a legal requirement in most states, it also helps to maintain a healthy work environment.

• Commercial vehicle insurance to cover for any damage to your company-owned vehicles that employees use for work. This coverage also protects against any liability arising from vehicle-related incidents.

To ensure you get the right coverage for your specific needs, it’s beneficial to work with a trusted insurance agent who specializes in business insurance.

We have partnered with the most trusted insurance agent to help your small business get the right coverage for your roofing company.

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6. Secure Funding and Plan Your Business Finances

Starting a roofing business requires significant financial investment. You need to secure the necessary funds to get your business off the ground and create a solid financial plan to manage your operations. 

Let’s break down what’s involved to help you navigate this critical phase on how to start your own roofing business effectively:

Estimating Startup Costs and Operating Expenses

Before you seek funding, you need to understand the startup costs involved in launching your roofing business. These costs can vary depending on the scale of your operations, location, and business model. Some key expenses to consider include:

• Equipment and Tools: Roofing requires specialized equipment, including ladders, scaffolding, safety gear, power tools, and vehicles. The cost of these items can be significant, so it’s important to budget accordingly.

• Materials and Supplies: Initially, you will need to purchase roofing materials such as shingles, tiles, underlayment, nails, and other supplies. Establishing relationships with suppliers for bulk purchasing can help reduce costs.

• Office Setup: If you plan to operate from a physical location, factor in the costs of renting or buying office space, furnishing it, and setting up a computer system for administrative tasks. If you’re starting small, you may opt for a home office to reduce expenses.

• Marketing and Branding: You’ll need to invest in marketing materials to establish your brand and attract customers. Costs may include creating a website, printing business cards, signage, online advertising, and possibly hiring a marketing consultant.

• Working Capital: This involves the funds you need to cover daily operational expenses until your business generates steady cash flow. Working capital covers payroll, utility bills, fuel, and other ongoing costs.

Exploring Funding Options

Once you have a clear picture of your costs, you can calculate the total amount of funding you’ll need. Many business incorporation services offer assistance with exploring funding options for your businesses. 

Some of the avenues you can pursue to secure the finances needed to start your roofing business include:

• Personal Savings: If you have savings set aside, this can be a great way to fund your business without taking on debt.

• Bank Loans: Traditional bank loans are a common way to finance a new business. To apply, you’ll need a strong business plan, good credit score, and possibly collateral.

• Investors: If you’re open to sharing ownership, you could seek investment from venture capitalists or angel investors. These investors provide capital in exchange for equity in your business.

• Grants: Some grants are available for small businesses, particularly those in specific industries or locations. You can research available grants in your region to see if your roofing business qualifies.

Setting Up a Business Bank Account

Managing your finances requires proper organization from the start. To separate your personal and business finances, you need to open a dedicated business bank account. 

This will help you track income and expenses, simplify tax filing, and portray a more professional image for your new roofing company. 

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7. Set Up Operations for Your Roofing Business

Transforming your roofing business plan into a reality would involve establishing the infrastructure, systems, and processes that will support your day-to-day operations. Here’s a detailed breakdown to guide you through this process:

Secure a Physical Location

While not mandatory for all roofing businesses, having a dedicated space for your business activities can streamline operations even if you’re starting small. It can serve as an office to keep business documents, a storage space for roofing tools, or a place to meet with potential clients.

Source Roofing Equipment and Supplies

An important part of how to start your own roofing business is to source for the necessary equipment to set up your business operations. The tools and materials you use can influence the quality of your work and your profitability.

Start by making a comprehensive list of all the tools and equipment needed for various roofing jobs. Once you have a list of required tools, look for suppliers who offer competitive pricing and reliable delivery times. 

Local suppliers often offer the advantage of quick delivery and personalized service. Visit their stores, inspect the quality of the materials they offer, and negotiate favorable terms.

Many online platforms also offer a wide range of tools and materials, often at discounted prices. However, be mindful of shipping costs and delivery times, especially for bulky items.

Consider establishing a relationship with a supplier who can also help you stay stocked with essential materials even during peak seasons.

Develop Standard Operating Procedures (SOPs)

SOPs are detailed, written instructions that describe how to perform tasks consistently. Developing SOPs for your roofing business can help ensure that all employees follow the same processes and standards. SOPs can help you to maintain better quality control even when you scale your business.

Some key areas to develop SOPs for include:

• Job estimating and quoting
• Customer communication and scheduling
• Material ordering and inventory management
• Safety protocols and training
• Job site setup and cleanup
• Quality control and inspections
• Invoicing and accounts receivable

When developing your SOPs, involve your team members to get their input and buy-in. Make sure the procedures are clear, concise, and easy to follow. 

8. Brand and Promote Your Roofing Company

Once you’ve laid the foundation by setting up your operations, securing necessary licenses, and defining your services, the next step involved in how to start your own roofing business is to help customers find your business when they’re looking for the services you offer. 

Branding and promoting your company can help you stand out from other roofing businesses.

Here are actionable steps you can take to promote your roofing business: 

Create a brand identity. Invest in a logo for your roofing business. A well-designed logo can help customers recognize your business. See an example of a logo for a roofing company.

Image via Pinterest

• Build a business website and list your services on it. With more customers turning to the internet to find services, having an online presence is an important component for promoting your roofing business. Optimize your website with relevant keywords to improve visibility in search results.

• Create profiles for your business on platforms like Google, Yelp, Thumbtack and other online directories. You can showcase the portfolio of your roofing company and encourage customers to leave reviews to build credibility.

• Build a brand presence on various social media channels. You can create business profiles on popular platforms like Facebook, Instagram, and LinkedIn. Also, share engaging content, such as before-and-after photos, and customer testimonials. Ensure to interact with your audience by responding to comments and messages promptly.

• Come up with effective advertising strategies to promote your roofing business and services. You can invest in Google Ads and target your ads to specific geographic locations to reach potential customers in your area. Vehicle wrap is another creative way to reach a broad audience. You can brand your company vehicles with your logo, contact information, and services.

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Frequently Asked Questions

1. How much does it cost to start a roofing business?

You may need $15,000 to $20,000 to start your roofing business. This includes registration fees, wages of roofers, material costs, transportation costs, and professional liability insurance premiums.

2. How do I start a roofing business?

The processes involved in how to start your own roofing business include the following:

• Write a business plan.
• Pick a name for your business.
• Choose a business structure.
• Register your roofing company.
• Decide on the type of services you’ll offer to customers.
• Hire a roofing contractor, roofers, and other professionals.
• Create a marketing strategy.
• Deliver a good experience to your customers and build loyalty.

3. Is a roofing business profitable?

Yes, a roofing business is a profitable business idea because every structure requires a roof, from schools to houses, offices, city hall, and other buildings. Roofs require periodic inspection and maintenance, which means that you’ll never run out of roofing work.

4. What do I need to start a roofing company?

To start a roofing company, you need:

• Business registration
• Skilled roofers and labors
• Professionals with marketing and sales skills
• Roofing materials
• Roofing work training
• Business insurance

5. How do you price roofing jobs?

Pricing is an important factor to keep in mind when considering how to start your own roofing business. While pricing your roofing services, you should:

• Understand the scope of work.
• Estimate material costs and labor costs.
• Calculate overhead expenses.
• Add your desired profit margin to the break-even cost of the roofing job. Most roofing contractors aim for an average profit margin of 6.4% and above, as per industry standards.
• Create and share your roofing bid.

Are You Ready to Start a Roofing Business?

Starting a roofing company can be a lucrative business option. The roofing industry is experiencing a surge in demand for quality roofing solutions due to factors such as increasing construction activity, and more. 

This presents a golden opportunity for entrepreneurs to establish their own roofing businesses and introduce innovative products and services to stand out. The steps mentioned above answer the question of how to start your own roofing business.

Remember to stay adaptable and responsive to industry trends and customer needs, and you’ll be well-positioned to thrive in this competitive market. 

Do you have other questions about starting a roofing business? Ask them in the comments below. We’ll be happy to help you set up your small business.