5 Things You Should Know Before Hiring a Roofing Company
You’ve discovered the perfect houston roofing company, and now you’re ready to take the next important step. There’s more to beginning a small business than simply signing it with your local state. If you don’t have all the proper paperwork in order, then there’s a good chance you could be running into some serious headaches. Have you properly accounted for all of your costs and expenses? Have you filled out all the appropriate forms? Have you followed state guidelines and implemented a plan to keep your overhead as low as possible?
If you think all of these questions are too much for you to handle, you should probably think about starting a new business rather than attempting to complete your first repair job. In addition to ensuring that you get all of the right licenses and paperwork in order, there are also many other elements involved in operating a business. Most importantly, you’ll need to determine how much money you’ll be bringing in on a monthly basis in order to support your labor costs, equipment, inventory and everything else that comes with running a small business. These steps can make sure that your brand new company is well prepared, legally registered and well structured.
One of the major challenges facing new roofing business owners is their inability to accurately calculate their ongoing expenses. As they quickly learn, estimates and expenses are never correct – they’re bound to be off by a pretty significant margin. That’s because many aspects of the actual job will be completely unpredictable, as will be the list of roofing materials you’ll need on hand and the amount of time it will take to complete the job. So, you have to factor in not only your labor costs and equipment costs, but also your deductible and ongoing expenses for things like liability and workers’ compensation insurance premiums. The list goes on, but it’s important to remember that these figures will inevitably change every month as the variables mentioned above are continually tweaked in order to maintain your consistent bottom line.
Once you’ve calculated your ongoing expenses and figure out your total profit, then you’ll have to decide what your bottom line should be in order to keep your business going. Many new roofers don’t put a great deal of thought into their profit margins – after all, they’re a brand new roofing company and anything goes in the business world. Unfortunately, when you’re just getting started, it’s very easy to make money with no profits at all. A good rule of thumb when calculating your profits is to assume you have zero dollars – when you do the math you’ll find that you actually do have some very nice profits at the end of the day. As your business grows, you can calculate a bit more realistically your overall profit, but you don’t have to go below zero.
Finally, you need to pay the bills. In order to provide quality service to you and your customers, roofing businesses must have employee benefits, insurance, human resources, payroll taxes, and property management. Not to mention that there are various other bills you’ll need to pay such as your general liability insurance premiums, your roofing contractor’s permit fees, your water and sewer line replacements, your garbage and recycling pickup, your security deposits for damage control, and your advertising.
While it’s true that there are many different elements to keeping your roof maintained and running smoothly, the main thing is making sure that your roof is properly covered. For example, your roofer is responsible for installing the roof and all of the various parts that go along with it, so if you want your roof to last for years to come, your roofer needs to make sure all of the nails, screws, shingles, tiles, metal flashings, etc are all up to date and accounted for. If your roofers are not adequately insured, you could have costly problems come wintertime, especially if you live in a windy area. Proper roof maintenance and coverage can save you a lot of money down the road.