A roofing company installs roofs, siding, sheet metal, and roof drainage systems including gutters and downspouts. They also perform tasks like treating roofs (such as spraying, painting, or coating them), working with copper and tin, installing skylights and metal ceilings, flashing, ductwork, and capping.
They could be tasked with undertaking new projects, alterations, additions, maintenance, and repairs. In 2021, the US roofing market had a value of around USD 26.6 billion, and was projected to expand at a CAGR of roughly 6.8 percent over the following five years. In terms of revenue, the market for roofing contractors will be worth $56.7 billion in subsequent years.
Steps on How to Start a Roofing Company in Texas
Table of Content
Conduct Market Research
Conducting market research is key to the success of every business. This is because market research provides critical information about your business landscape. It gives you information on how your business is perceived by the target customers and clients you want to reach.
It helps you determine who and where your customers are, and which customers are most likely to do business with you. In essence, market research will you understand how your target customers feel, and adapt to their needs in order to turn them into regular customers and brand advocates.
a. Who is the Target Market for Roofing Companies in Texas?
Make your target demographics as inclusive as possible if you are thinking about starting a roofing business. It should include all construction companies, proprietors of office buildings, participants in the real estate market, staging companies, shipping companies, and residents of the area where your roofing business will be located.
b. Is the Flooring Business Profitable in Texas?
Yes, Texas’s roofing sector is profitable. It is anticipated that in the subsequent years, the state’s roofing contractors generate more than $56.7 billion in profit.
c. Are There Existing Niches in the Industry?
No, there are no existing niches when it comes to roofing businesses.
d. Who are the Major Competitors in Texas?
- Bearded Brothers Roofing & Restoration
- Texas Star Roofing Inc.
- First Out Roofing
- Lon Smith Roofing & Construction
- CMC Roofing Services
- Billy Harris Roofing
- Texas Traditions Roofing
- T Rock Roofing & Construction
- Graham Construction and Roofing, LLC
- Joe Hall Roofing Inc.
- Texas Roofing & Leak Repair
- Texas State Roofing Company
- 3:16 Roofing and Construction
- State Roofing Company
- Telge Roofing
- Ace Roofing Company
- Alliance Roofing Company, LLC
- Abbott Roofing Company
- Mike Huddleston Roofing Systems
- KPost Roofing & Waterproofing.
e. Are There County or State Regulations or Zoning Laws for Roofing Businesses in Texas?
Roofing firms are exempted from the county, state, and federal restrictions and zoning laws, but those who work in this sector must adhere to any guidelines the county where their facility is located has previously established for enterprises of such.
f. Is There a Franchise for Roofing Business?
There are franchise options for roofing companies, some are the following;
- Honest Abe Roofing Franchise
- RIG Roofing Franchise
- Great American Roofing Company
- Storm Guard Roofing
- Best Choice Roofing
- Roofing-Pro Franchise.
g. What Do You Need to Start a Roofing Company in Texas?
- A feasibility report
- Business plan
- Business licenses and permits
- An office facility
- EIN (Employer Identification Number)/Federal Tax ID Number
- A corporate bank account
- Toolbox
- Employees
- Startup capital.
Choose a Memorable Business Name
When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable.
Some of the catchy business name ideas suitable for a roofing business are;
Creative Roofing Company Business Name ideas
- Daniel Moses© Roofing Installation Company, Inc.
- Silver Linings® Roofing Contractors, LLC
- Goerge Finish© Roofing Installation Company, Inc.
- Peter Mosley® Roofing Installation Company, Inc.
- Citizens Edge™ Roofing Installation Company, Inc.
- Viva Rhodes™ Roofing Contractors, LLC.
- Right Way© Roofing Installation Company, LLC
- Henry Johnson® Roofing Contractors, Inc.
- Penny Mack© Roofing Installation Company, Inc.
- Hillard Etah© Roofing Installation Company, Inc.
- Simon Tims® Roofing Installation Company, LLC
- Jerry Hyflux Group® Roofing Installation Company, LLC
- David Prima™ Roofing Installation Company, LLC
- Tandra Toby© Roofing Installation Company, Inc.
- Epic Signature® Roofing Installation Company, Inc.
- Stanley Humphrey™ Roofing Installation Company, Inc.
- Ethan Victor™ Roofing Contractors, Inc.
- Benny James© Roofing Installation Company, Inc.
- Jude Bellington® Roofing Contractors, LLC
- Bennard Excel™ Roofing Installation Company, Inc.
Register Your Business
a. What Type of Business Structure is Best for a Roofing Company?
There are several options when it comes to business structure, which includes sole proprietorship, partnership, limited liability company (LLC), and corporation, but most companies in this industry choose an LLC as their legal form for a roofing firm. A business chooses LLC in order to defend itself against any lawsuit.
b. Steps to Form an LLC
- Choose a name for your LLC
- File articles of organization
- Choose a registered agent
- Decide on member vs. manager management
- Create an LLC operating agreement
- Comply with other tax and regulatory requirements
- File annual reports.
c. What Type of License is Needed to Open a Roofing Company in Texas?
- General Business License
- Zonal Permits
- Signage Permit
- Operational State Facility Inspections.
d. What Type of Certification is Needed to Start a Roofing Company in Texas?
In Texas, starting a roofing business doesn’t require any special licensing. But the majority of roofers have a trade qualification, which they usually obtain through an apprenticeship.
e. What Documents are Needed to Open a Roofing Company in Texas?
- DBA
- EIN
- Business and Liability Insurance
- Federal Tax Payer’s ID
- State Permit and Building Approval
- Certificate of Incorporation
- Business License
- Business Plan
- Employment Agreement (offer letters)
- Operating Agreement for LLCs
- Insurance Policy
- Online Terms of Use
- Online Privacy Policy Document
- Contract Document
- Company Bylaws
- Memorandum of Understanding (MoU).
f. Do You Need a Trademark, Copyright, or Patent?
If you are considering starting a roofing business, you don’t always need to register a trademark for intellectual property protection. The structure of the business makes it possible for you to run it without needing to take legal action against anyone for utilizing your intellectual property without your permission.
Cost Analysis and Budgeting
a. How Much Does It Cost to Start a Roofing Company in Texas?
Depending on the amount of equipment the business owner chooses, and the number of employees, the initial costs of a roofing company in Texas might range from $20,000 to $200,000 and above.
b. What are the Costs Involved in Starting a Roofing Company in Texas?
- A total of $750 is required to register a business in the United States.
- About $1,200 in legal fees for accounting services and the acquisition of licenses and permits
- Marketing promotion costs- $80 in total
- Hiring a business consultant will cost you $4,500 (business plan drafting included).
- About $12,400 in total premiums for insurance coverage (general liability, workers’ compensation, and property casualty)
- Payroll software, accounting software, CRM software, and logistics software each cost – $1,500
- A long-term lease deal for an office facility will cost- $105,600
- Installation and remodeling of the facility will cost -$20,000 in total
- The price to buy the utility trucks and equipment is $100,000
- Deposits for phones and utilities will cost – $2,500
- Operational costs during the first three months (staff salary, bill payments, etc.): $50,000
- Purchasing office equipment and furniture will cost $8,000 in total
- About $600 is required to build an official website
- The grand opening party will cost $3,000, while other expenses will run approximately -$2,500.
c. What Factors Determine the Cost of Opening a Roofing Company in Texas?
- The size of the roofing firm and the location selection
- The cost of hiring and paying a business consultant and attorney.
- The cost of branding, promotion, and marketing the roofing company.
- The cost of furnishing and equipping the roofing company – facility. The kind of equipment and toolbox needed.
- The cost of hiring and training your crew.
- The cost of purchasing and customizing uniforms, shoes, and caps for your employees.
- The cost of the roofing company’s grand opening.
- The cost of registering the business.
d. Do You Need to Build a Facility?
No, building a new facility for your roofing business is not required. However, if you have the necessary financing, it will benefit you to do so. The fact is that building or reconstructing a facility will provide you the chance to design a facility that will fit into your business goals.
e. What are the Ongoing Expenses of a Roofing Company?
- Roofing material supplies (inventory expenses)
- Utility bills (fuel, phone bills, signage and software renewal fees et al)
- Salaries of employees
- Transportation and logistics.
f. What is the Average Salary of your Staff?
- Chief Executives Office – $55,000
- Manager – $44,000
- Accountant -$41,000
- Roofing Installers – $40,630,000
- Truck Driver – $33,100 Per year.
g. How Do You Get Funding to Start a Roofing Company?
Selling shares to interested investors, raising capital from investors and business partners, raising capital from personal savings, applying for a loan from your bank, Seeking business grants and seed funding from the government, donor organizations, and angel investors, and obtaining soft loans from friends and family.
Write a Business Plan
a. Executive Summary
David Prima™ Roofing Installation Company, LLC is a U.S.-based and licensed roofing company. Our corporate headquarters will be located in the center of Fort Worth, Texas, in a typical office building with excellent accessibility. Although we plan to begin operations in Fort Worth, Texas, where our head office will be located, we intend to open branch offices in other areas in Texas.
We have established strategies to implement global best practices that can compete with the best in the business as part of our ambitions to put our clients first and also become one of the top roofing businesses in Texas.
Over time, David Prima™ Roofing Installation Company, LLC has refined plans that will enable us to become experts at transforming the roofs of slums into beautiful cities and at transforming the roof of a run-down and dilapidated building into a work of art. We hope that this will become our trademark and identifying feature.
b. Products and Services
- The installation of shingles, slate, ceramic or concrete tiles
- Installing liquid and modified bitumen roofing, metal, single-ply, built-up, and other roofing systems
- Gutters and downpipes; installing, maintaining, and replacing
- Sheet metal installation
- Replacing shingles and tiles that are damaged
- Capping repair using cement or acrylic mortar
- Installing engineered wood, brick, vinyl, aluminum, and fiber cement siding; cleaning existing roof materials; applying roof sealant compounds; installing soffit beneath easement fascia’s; securing flashings and capping; and correcting leaks.
c. Mission Statement
Our mission as a roofing contractor business is to grow a profitable all-around roofing contractor company that offers topnotch services in our neighborhood and to set the bar for an ideal roofing contractor business, not only in Texas but also across the United States and Canada, where we intend to source for clients.
Vision Statement
Our vision is to become the leading brand in the roofing installation industry in Texas.
d. Goals and Objectives
The goals and objectives of a roofing company are to install, uninstall and repair roofing for clients.
e. Organizational Structure
- Chief Executives Office
- Manager
- Accountant
- Roofing Installers
- Truck Driver.
Marketing Plan
a. SWOT Analysis
Strength:
- Availability of the most recent and simple-to-use commercial roofing machinery and equipment, accurate estimates with no hidden fees, an ideal location, excellent operational history, and exemplary client testimonials.
Weakness:
- The number of current customers is insufficient to instantly reach capacity
- Because the owner is currently operating the firm alone, he or she will have to oversee construction and expand the current operation. Because of the lack of scale, we will require a loan to buy commercial roofing equipment and other related accessories.
Opportunities:
- Build on your current customers and consider expanding into other markets; the online market, new services, and new technology.
Threat:
- Loans reduce profitability until they are repaid; the first year will be financially challenging as we add customers and pay off loans; the level of competition in the area may rise; managing employees requires time, money, and effort; and the regulatory department may decide to change its regulatory status and decide to enforce stringent regulations that could stifle new businesses.
b. How Do Roofing Companies Make Money?
Roofing companies make money in the following ways;
- The installation of shingles, slate, ceramic or concrete tiles
- Installing liquid and modified bitumen roofing, metal, single-ply, built-up, and other roofing systems
- Gutters and downpipes; installing, maintaining, and replacing
- Sheet metal installation
- Replacing shingles and tiles that are damaged
- Capping repair using cement or acrylic mortar
- Installing engineered wood, brick, vinyl, aluminum, and fiber cement siding; cleaning existing roof materials; applying roof sealant compounds; installing soffit beneath easement fascia’s; securing flashings and capping; and correcting leaks.
c. Payment Options
- Payment via bank transfer
- Payment with cash
- Payment via credit cards/Point of Sale Machines (POS)
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft.
d. Sales and Advertising Strategies
- Introduce your company by sending introductory letters and a brochure to customers, construction firms, home staging businesses, shipping firms, and other players in the building and real estate sectors, among others, along with information about where your business is located.
- Throw a celebration when you initially open your roofing installation business to inform the neighborhood’s residents, who will be your first customers.
- Publicize your services in newspapers, on regional tv, and on radio stations.
- Place adverts for your company and items in the yellow pages (local directories)
- Utilize the internet to market your roofing installation business.
- Take part in direct the marketing
- Encourage people to use word-of-mouth marketing (referrals).
Financial Projection
a. How Much Should You Charge for your Product/Service?
Approximately $150 to $1,500 per square of roofing material is the pricing range for roofing materials. The cost of roofing materials and any skilled labor needed for installation normally ranges from $3,300 to $33,000 for a home with an average floor area of 2,200 square feet.
b. How Much Profit Do Roofing Company Owners Make a Year in Texas?
The owner of a roofing company generates over $55,000 in profit per year.
c. What Factors Determine the Amount of Profit to Be Made?
- The capacity of the roofing company
- The types of roofing they are specialized in
- The location roofing company is covering
- The management style of the company
- The business approach of the company
- The advertising and marketing strategies adopted by the company
- The number of years the roofing company is in business.
d. What is the Profit Margin of a Roofing Company in Texas?
The profit margin of a roofing firm is not usually fixed, it falls between 15 and 25 percent.
e. What is the Sales Forecast?
- First Fiscal Year: $420,000
- Second Fiscal Year: $850,000
- Third Fiscal Year: $1.75 million.
Set Up your Shop/Office
a. How Do You Choose a Perfect Location for a Roofing Company in Texas?
- The demography of the location as it relates to activities in the real estate market
- The demand for roofing installation in the location
- The purchasing power of businesses and the residents of the location
- Accessibility of the location
- The number of roofing companies in the location
- The local laws and regulations in the community/state
- Traffic, parking, and security et al.
b. What City is Best to Open a Roofing Company in Texas?
- El Paso, Texas
- Arlington, Texas
- Corpus Christi, Texas
- Grand Prairie, Texas
- Plano, Texas
- Dallas, Texas
- Austin, Texas
- Fort Worth, Texas
- Houston, Texas
- San Antonio, Texas.
c. What Equipment is Needed to Operate a Roofing Company?
Hatchet or hammer for roofing, a compressor for air utility; a knife or a roofing blade shingle-tearing tools, or a shovel for roofing.
Hire Employees
Hire a capable chief executive officer (you can hold this position), manager, roofing installers, and truck drivers when it comes to staffing the roofing business.
Launch the Business Proper
No roofing company opens for business without first planning an opening party to formally start the company. If you have a limited budget, you may choose to hold a soft opening party rather than a big one. With proper launching, you will officially inform the residents of your community that your company is open for business.
a. What Makes a Roofing Company Successful?
- Choose a good location to launch the business
- Make sure all your projects are thorough and top-notch
- Be deliberate with your marketing sales approach
- Encourage the use of word of mouth to promote your company
- Leverage all available online and offline platforms to promote your roofing company.
b. What Happens During a Typical Day at a Roofing Company?
- The office is open for the day’s work
- The jobs to be done for the day are reviewed, and all the needed materials are put together
- Manpower, materials, and tools are transported to the site and installed
- Staff return back to the office and reports for the day is written and submitted
- The business is closed for the day.
c. What Skills and Experience Do You Need to Build a Roofing Company?
- Attention details
- Outstanding tools handling skills
- Outstanding project managing skills
- Customer services skills
- Interpersonal skill
- Accounting and bookkeeping skills
- Business management skills
- Bargaining skill
- Work experience in a roofing installation company
- Understanding of managing people
- Understanding of business administration
- Understanding of handling projects.