If you think owning a roofing business is about nailing shingles to a roof, think again. A profitable roofing business is much more about effective marketing, customer acquisition and having effective systems and processes.
Roofing is another little known industry that can be very lucrative and some franchise systems have owners generating over over 7 million dollars a year. The margins are strong and top owners in some systems are putting as much as 1.5 million dollars a year into their pocket. Those are EBITDA numbers plus owner benefit. Obviously not all owners make that, but if you are in the right region, and have the right skills roofing and construction can be a great business. With an investment much lower than most fast food restaurants owners are generating significant revenue.
Two major misconceptions in roofing, First you need construction experience. You don’t. It can help, but much more important is having executive white collar, business building experience. Running these types of businesses is not as much about roofing as it is about sales, marketing and client acquisition. Top owners often have executive sales experience, or project management backgrounds, and are good at managing sales teams and roofing crews. People who have never managed people often think it is easy, those of you who have managed people know it is not.
2nd misconception is “I don’t need a franchise because I know how to shingle a roof” Sure, but do you know how to build a multi-million dollar business? That’s why you buy a franchise, not to learn how to put on a roof. How many independent roofers in your own city, we call them “Chuck in a truck” one guy driving a rusty old pickup, personally knocking on doors, or placing ads on telephone poles never getting anywhere, never able to scale the business. The secret to any business are the systems and processes. Thats why you buy a franchise.
You also have to consider buying power and better deals on materials. Chuck in a truck cant match the buying power on equipment and materials of dozens of combined franchise owners. You’ll often save money there.
Sales and marketing. A franchise gives you the sales and marketing recipe that has been refined over years with dozens of franchise owners. They know what ads work and which don’t so your ad spend is effective.
Industry relationships. Most larger industry organizations wont look at an independent, but as a large franchise you can leverage these relationships.
And again Systems and processes help with billing, working with insurance companies, payroll, marketing and client acquisition. The more effective and efficient you become, the more money you can earn.
Some franchises focus on repair of storm damage which is a profitable niche. Certain parts of the country that are subjected to storms are obviously more lucrative. Remember a homeowner that has a slightly worn roof is a different prospect than someone who has had their roof blown off and has rain leaking in the house. Whenever a storm goes through a neighborhood most contractors have work lined up for several weeks. And customers, as long as you provide a good price and value, are unlikely to spend too much time shopping around.
The Roofing industry is an essential, recession resistant, and growing sector expected to reach $19.9 billion by end of 2021. The industry itself is fragmented, unprofessional, many roofing companies do not have permanent locations and just chase storms around the country. Homeowners are becoming wary of one person operators, you have probably heard horror stories in the news, so you can become the local, trusted resource for roofs in your town, and build a reputation through quality work and warranties. Your all-in investment for a roofing franchise will range from about $150k to $250k, you can finance most of that with an SBA loan.
One thing to remember is that many states do require a contractors license for owners of a roofing franchise, which is harder to get in some states than others, This is true for any construction type franchises. So in certain parts of the country it will take some time to get set up so be sure you are sufficiently capitalized to accommodate for the wait. Also remember not all construction franchises are created equal, and finding the right one for your skills and market requires some research. If you have executive or sales management experience and think roofing might be a fit Franchise City brokers can help that link is below.
REQUEST INFORMATION ROOFING FRANCHISES: https://www.franchise.city/franchise-inquiry
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