Opening a Roofing Company


Hello all! I’m a new poster, but I’ve been a long time lurker on this site. I’m extremely interested in opening my own roofing company. Interested is actually the wrong word. Im going to open my own roofing company!

Go figure, the one thing I am missing is funding. I am currently looking for funding and have gotten a few offers of 100k plus, but with very unfavorable terms attached.

I am seeking advice:

I understand that the best route would be to be self funded (duh). If that was not an option, what would you do next? For this scenario, let’s pretend you have no collateral, absolutely crap credit, but have 3 extremely strong salespeople ready to start, plenty of experience, and all of the necessary plans in place to begin.


This is not gonna be what you wanna hear but they key to any new business is low overhead. Its not a good idea to have to borrow six figures to pay your three salespeople. Its really in your best interest to start as small as possible and grow from there when you are ready to take the next step.


Oh, the money isn’t to pay salespeople. The two major costs I have outlined are insurance (they want a huge chunk upfront to start policies, as much as 50% of the estimated annual total) and a used truck for production. Since we are all used to selling 120 a month in total revenue, our insurance costs are going to be huge based on commission payouts. And I’d rather owe as little as possible during an audit, just like I’d rather pay as little taxes at the end of the year as possible. The goal being to get nothing back and owe nothing. Those two costs alone will be more than 50.

I can certainly cut back in other areas. I can run this out of my basement for a few months. I can nix the iPads and CRM. But honestly, after the two mentioned costs above, and having a cushion for work being done, that puts you right at about 100k.


Lower your projected revenue substantially to get your upfront insurance costs down. It’ll get evened out a year later with the audit.

Unless you’re buying a bunch of equipment, no way you need $100K. More like $10K. Just require a deposit with all roof builds early on. 50% would cover your labor and materials or close to it. Start slow to manage cash flow.


What about money to have for security? If my first roof brings an ACV check that doesn’t cover material, labor, and commission…I’d be screwed. I see that I can cut costs dramatically, but all the way down to 10 grand?


Sell the first 5 to 10 jobs yourself if you’re that concerned. Boot strap yourself up. That’s a ton better than accepting a detrimental deal on a $100K loan that you don’t need. Show me where somebody said starting and growing a successful business is easy? The last thing you want is to start a business with $100k in unnecessary debt. Formula for failure. Or even worse, have silent money men partners you’ll be paying forever when they’re contributing nothing. Get over your fear and make it happen.


Start slow… youve been lurking here a lobg time so dont rush into it all of a sudden. Sell your own 10 roofs to start and cherry pick the deals with higher ACV’s to avoid out of pocket. As for insurance set your projections low to keep cost down as the other poster recommended. You can always adjust it 6 months down the road. Start out small and you dont need a production truck. Its tough not to be able to sell a ton of roofs but its much less painful than getting a huge loan, having those awesome sales guys walk on you, have your crew go MIA… shit happens you never thought would… its inevitable but easier to manage if you are small! I cant think of anothwr business with lower overhead than roofing. Good luck


You guys are great! You’ve all given me a tremendous amount of good information. You’ve brought me back to reality. I swear, a month back when I started planning this, I told myself I needed 20 grand to start. Over this last month I have steadily increased my amount based on wants that I should be building with my own money, telling myself I needed it right away.

I really appreciate the reality check!


Talk to some local suppliers, they may be hesitant to work with a new guy but you may find one willing to work with you on payment terms so you don’t have to float the cost of work till you get paid.


You shouldn’t be afraid, and never consider any kinds of debts. If you’re in it for a long run, which I suppose you are, start small and slowly buiild your way up and once again, do not be afraid.


Salesman doing 120k per month is average for this industry. Top salesman sell 250k per month. You need to get in home financing. Put the salesman on 100% commission. You should not take 50% down. instead offer a discount and have the customer get a Dual Name Certified check. Certified bank check with customers name and your company name on it UN-endorsed for the FULL amount. Your roofing materials and labor should at max be held up for 3-5 days depending on size. If you can sell the jobs thats 90% of the company. DO NOT BORROW MONEY. Sell everything you have. Sub out the work in the beginning. Have the subs name you additionally insured. This will lower your insurance. Email me If you need anymore help. I just went through it.


Equity investment includes any money from people, including yourself, or different organizations in your business. This money might be from individual reserve funds, legacy, individual advances, companions or relatives, business accomplices, or stockholders. These assets are not secured on any of your concern resources.

However, before going down this street, it is vital to know the BC laws that apply to any organization or other substance that raises cash from financial specialists.


Great advice. I try my best not to be hesitant.

With that being said, we are open, licensed, and insured to do business since originally posting this. :slight_smile:


I thought 100-150 was great. In the last 3 weeks along I have come to realize you are correct. That number is average. And it should be considered average! :stuck_out_tongue:

My salespeople are 100% commission. I am working on financing. Any suggestions there?


What state are you in? Howe long have you been in business? What is your
TDV for the past three years? Do you have the right to rescission notice
on your contract and on a separate form?


It is tough to have Sales Reps to average more than $100K per month in a non storm environment.


Its hard to average 100k per month doing insurance estimates.


If you haven’t already call your local BBB and open an account with them. Go down to their office set up a meeting and have a face to face with the president. Bring your contracts warranty info all advertising and offers. Have them review and make a file. This way you are transparent with your company. They will love you for it and help you when you get in a bind. Its not what you know its who you know. Relationships are very important in business


It’s harder averaging it doing cash bids unless you’re doing commercial.


AD - The main salesperson I have now is consistently writing 100-130 a month non storm. 6 months experience. We don’t chase storms. Not even interested. I believe the guys I have coming on will do just as well.

I’m in Georgia, by the way. 3 weeks in business give or take a few days. :sunglasses:

Xterior - Going to contact BBB. Was kind of waiting until my website was at least done.