Roofing Business Plan Template

Roofing Business Plan Template

If you want to start a Roofing business or expand your current Roofing business, you need a business plan.

The following Roofing business plan template gives you the key elements to include in a winning Roofing business plan.

You can download our roofing plan template (including a full, customizable financial model) to your computer here.

 

Sample Roofing Business Plan Template

Below is a roofing business plan example with each of the key sections to help you write a roofing business plan for your own company.

I. Executive Summary

Business Overview

[Company Name], located in [insert location here] is a new roofing company that focuses on providing high quality roofing services for residential and commercial clients. The company is owned and operated by [Founder’s Name], an experienced roofing contractor and project manager with over 20 years of experience in the industry. [Company Name] aims to be the reliable source for any roofing project from new installations to restorations and repairs.

Products Served

[Company Name] will provide a variety of different types of roofing materials. Products will include solar tiles, clay tiles, green roofs, shingles, slate, metal roofs, and more.

Roofing services include restoration, repair, installation, maintenance, and gutter work. The company’s products and services are focused on providing durable roofing solutions that will last for years to come.

Customer Focus

[Company Name] will primarily serve homeowners and businesses within a 30-mile radius of its centrally-located office. The community of [company location] has a large number of aging homes and commercial buildings in need of roofing services. The company will also target real estate developers in the area. In addition to the older buildings, there is also a growing number of new homes and commercial properties being constructed that will need quality roof installations.

Management Team

[Company Name] is headed by its founder, [Founder’s Name] who has over 20 years of experience as a roofing contractor, and has spent the past ten years as a roofing project manager. He has spent much of his career working for Home Suite Home Roofing & Construction Company. There he specialized in new roof installations, repairs, and restoration work, managing the completion of 75 new roofs and thousands of repair and restoration projects. He consistently was named a top project manager for Home Suite Home Roofing & Construction Company.

Success Factors

[Company Name] is uniquely qualified to succeed due to the following reasons:

• The company will be providing a valuable service for individuals and businesses in need of roofing services for new and existing buildings.
• The company is in an area with high homeownership rates and a good mix of older buildings with roofs in need of repair and new construction projects.
• The founder has a track record of success in the roofing industry and is a proven expert in the field.
• The pricing will be moderate, less expensive than high-priced, specialized competitors, but more expensive than lower-quality, efficiency driven roofing contractors. This pricing strategy will ensure clients perceive value when choosing the company for their roofing needs.
• The local area is currently under served and has few local roofing companies offering quality customer service.

Financial Highlights

[Company Name] is seeking a total funding of $200,000 in debt financing to open its roofing company.

Specifically, these funds will be used as follows:

• Office build-out: $90,000
• Equipment and supplies: $60,000
• Working capital: $50,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Top line projections over the next five years are as follows:

 

II. Company Overview

Who is [Company Name]?

[Company Name], located in [insert location here] is a newly established roofing company that will provide high quality roofing services for residential and commercial clients. The company aims to be the ultimate choice for reliable roofing services and the most durable and high quality roofing materials. Customer service is at the heart of [Company Name]’s business model and the company will ensure all contractors are trained to provide the highest levels of service throughout the duration of each roofing project.

[Company Name] was founded by [Founder’s Name], a local roofing contractor who has been working in the construction industry for over 20 years. He has extensive experience installing new roofs, repairing old roofs, and providing valuable construction advice for both residential and commercial roofing clients. In addition to his excellent roofing skills, he has been working as a project manager of a large team of roofers for the past ten years. [Founder] has set out to be the first choice for quality roofing services and a dependable contractor clients can trust.

[Company Name]’s History

[Founder] recently began researching what it would take to start his own roofing company and did a thorough analysis on the costs, market, demographics, and competition. [Founder] has compiled enough information to develop his business plan in order to approach investors.

Once his market analysis was complete, [Founder’s Name] began searching for a potential office space for his roofing company. [Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation].

The business is currently being run out of [Founder’s Name] home office, but once the lease on [Company Name]’s office location is finalized, all operations will be run from there.

Since incorporation, the Company has achieved the following milestones:

• Located available office space for rent that is ideal for in-person meetings with roofing clients.
• Developed the company’s name, logo, and website located at [website].
• Planned the suite of services to be offered.
• Determined equipment, supplies, and materials needed.
• Begun recruiting key employees and experienced roofing contractors.

[Company Name]’s Products/Services

Below are [Company Name]’s service offerings:

A team of licensed roofing contractors will be able to perform the following roofing services for residential and commercial clients:

• Roof inspections
• Roof repair
• New roof installation
• Roof restoration
• Shingle replacement
• Emergency repair
• Gutter installation, maintenance, and repair

 

III. Industry Analysis

The Roofing industry is currently valued at $56.1 billion dollars with approximately 108,000 roofing contractors operating in the United States. Over the past five years, there has been a 15% increase in the number of roofing contractors throughout the country.

Demand for roofing has remained steady over the past five years and is expected to increase as more older homes in the U.S. are needing replacement roofing. Additionally, new homes are being built at a fast rate in many areas throughout the country, all of which will need new roof installations.

Healthy disposable income growth combined with an increase in environmentally conscious purchasing decisions has enticed residential consumers to spend money on home improvement projects such as replacing their old roofs with green roofing materials.

Commercial clients are looking for ways to be more energy efficient and eco-friendly as well. Many are investing in green roof replacements for their commercial buildings. The shift toward green products has helped support a higher level of average industry profit.

Moving forward, industry revenue is projected to increase an annualized 3.5% over the next five years as technological advancements and rapid urbanization are expected to positively impact industry demand. For capturing eco-conscious customers, operators should offer green and energy efficient roofing products.

 

IV. Customer Analysis

Demographic Profile of Target Market

[Company Name] will serve homeowners, businesses, and real estate developers of [company location] and its surrounding areas.

The community of [company location] has a large number of aging homes and commercial buildings in need of roofing services. The company will also target real estate developers in the area. In addition to the older buildings, there is also a growing number of new homes and commercial properties being constructed that will need quality roof installations.

Customer Segmentation

The Company will primarily target the following three customer segments:

1. Homeowners: The area has an abundance of aging homes in need of roofing replacement, repairs, and maintenance. The area also has a large number of homeowners versus renters.
2. Businesses: The area also has numerous commercial businesses operating in aging buildings in need of roofing replacement, repairs, and maintenance.
3. Real Estate Developers: The Company will also target real estate developers who are in the business of developing new residential and commercial buildings. Real estate development firms, whether hired by individual clients or working on a group of properties prefers long-term relationships with quality roofing contractors who can work to a budget and schedule.

 

V. Competitive Analysis

Direct & Indirect Competitors

The following roofing contractor companies do business within a 20-mile radius of [Company Name], thus providing either direct or indirect competition for customers:

Better Roof
Better Roof is a roofing company in [location]. In business for over 40 years, Better Roof focuses on roofing repairs and maintenance for residential homes with installation of new roofs as a secondary focus. The company has a good reputation among homeowners in the area.

Better Roof’s repair and maintenance services are generally for customers at the upper-end of the market, who choose to improve their current home either for sale or for their own purposes.

Happy House Roofing Solutions
Happy House Roofing Solutions is a roofing contractor for planned and existing residential properties. The company offers a wide range of roofing services from new installation to emergency repair and restoration. The company is a full-service roofing option for any residential property from single family homes to multifamily apartments and condominiums.

Clients are able to set up roofing consultations and schedule services through the company’s scheduling app. Each client is then matched with a highly rated roofing contractor experienced in the type of roofing service needed. Happy House Roofing Solutions works with a network of more than 500 roofing contractors to ensure there is always a highly qualified roofer available for every project.

Raise The Bar Roofing Co.
Raise The Bar Roofing Co. is a local roofing company that provides a variety of roofing services for both residential and commercial buildings. The company is mostly known for its reliable roofing installation process. The company has been in business for about ten years and has developed a large customer-base of real estate developers due to its focus on efficiency when installing roofs on new homes and commercial buildings.

While Raise The Bar Roofing Co. has a strong reputation for new installations, the company does not take on as many small maintenance or repair customers as competitors, preferring to stick with larger, more substantial projects.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. Those advantages include:

• Product: [Company Name] not only provides an array of roofing services, but the company also offers multiple roofing product options to fit any client’s requirements, budget, and preferences. Roofing materials options include asphalt shingles, metal roofing, solar tiles, green roofs, slate, clay tiles, and more.
• Customer-Focus: [Company Name] contractors provide the highest quality customer service focused on transparency, communication, and responsiveness throughout the roofing process from the initial inquiry to the follow-up once the project is completed.
• Management: [Founder’s Name] has been extremely successful working in the roofing industry and will be able to use his previous experience to make clients feel comfortable with the roofing process. His unique qualifications will serve customers in a much more sophisticated manner than many of [Company Name]’s competitors.
• Relationships: Having lived in the community for 25 years, [Founder’s Name] knows many of the local leaders, real estate developers, and business owners. These relationships will help the company build a significant customer base.

 

VI. Marketing Plan

You can download our roofing plan template (including a full, customizable financial model) to your computer here.

[Company Name] seeks to position itself as a high-quality, durable roofing brand. Clients can expect to receive the best roofing services from skilled contractors in [location] using the highest quality roofing materials.

The [Company Name] Brand

The [Company Name] brand will focus on the Company’s unique value proposition:

• Client-focused roof installation, restoration, and repair services, where the company’s interests are aligned with the customer.
• Service built on long-term relationships and personal attention.
• Big-firm expertise in a small-firm environment.

Promotions Strategy

[Company Name] expects its target market to be individuals and businesses within a 30-mile radius of its location. [The Company’s] promotion strategy to reach these potential customers includes:

Targeted Cold Calls
[Company name] will initially invest significant time and energy into contacting potential clients via telephone. In order to improve the effectiveness of this phase of the marketing strategy, a highly-focused call list will be used, targeting real estate developers and local businesses. As this is a very time-consuming process, it will primarily be used during the startup phase to build an initial client base.

Referrals
[Company name] understands that the best promotion comes from satisfied customers. The Company will encourage its clients to refer other individuals and businesses by providing discounts on future services for every new client produced. This strategy will increase in effectiveness after the business has already been established.

Additionally, [company name] will aggressively network with useful sources such as home improvement stores, real estate development companies, and homeowners associations. This network will generate qualified referral leads.

Broadcast & Streaming Media Advertising
[Company Name] will invest in professionally produced commercials to run on broadcast networks, radio stations, streaming platforms, and podcasts.

Website/SEO
[Company name] will invest in developing a professional website that displays all the service and roofing materials offered by the roofing company. It will also invest in SEO so that the company’s website will appear at the top of search engine results.

Social Media
[Company Name] will create the company’s social media accounts and invest in ads on all social media platforms. It will use targeted marketing to appeal to the target demographic.

Publications
[Company name] will advertise its services in key local publications, including newspapers and area magazines. Additionally, the company will print brochures and place them in specific locations frequented by target individuals, such as home improvement stores and real estate offices.

Direct Mail
[Company Name] will blanket neighborhoods in the area with direct mail pieces. These pieces will provide general information on [Company Name], its services, and promotional discounts.

Pricing Strategy

[Company Name]’s pricing will be estimated on a project basis drawing on [Founder’s Name]’s deep expertise in roofing. Pricing will be moderate, less expensive than Raise The Bar Roofing CO., but more expensive than lower-quality, efficiency driven roofing contractors.

 

VII. Operations Plan

Functional Roles

[Company Name] will carry out its day-to-day office operations primarily on an appointment basis. Clients will make appointments to discuss potential and current projects. Clients will be able to set appointments online, on-site, or over the phone.

[Founder’s Name] will work on an as-needed basis, generally Monday through Friday. Roofing contractors will work flexible schedules, so someone will always be available, seven days a week.

Project management software will be utilized to control the schedule and costs of each project, and to manage the resources (labor and equipment) applied to the different projects.

Milestones

The following are a series of steps that lead to the company’s vision of long-term success. [Company Name] expects to achieve the following milestones in the next [xyz] months:

Date	Milestone
[Date 1]	Finalize lease agreement
[Date 2]	Design and build out [Company Name]
[Date 3]	Hire and train initial staff
[Date 4]	Kickoff of promotional campaign
[Date 5]	Launch [Company Name]
[Date 6]	Reach break-even

 

VIII. Management Team

Management Team Members

[Company Name] is headed by its founder, [Founder’s Name] who has over 20 years of experience as a roofing contractor, and ten years as a roofing manager. He has spent much of his career working for Home Suite Home Roofing & Construction Company. There he specialized in new roof installations, repairs, and restoration work, managing the completion of 75 new roofs and thousands of repair and restoration projects. He consistently was named a top project manager for Home Suite Home Roofing & Construction Company.

[Founder’s Name] maintains his project management certification (PMP) license. He is a member of the National Roofing Contractors Association (NRCA). [First name] has spoken at regional conferences and taken part in panel discussions at homeowners associations and local trade schools on roofing and project management best practices.

[Company Name] will also employ an experienced assistant project manager to co-manage projects when multiple projects are running concurrently. [Assistant’s name] has roofing and project management experience and has spent significant time as a contractor.

Hiring Plan

[Founder] will serve as the Owner and Manager of [Company Name]. In order to launch, he needs to hire the following personnel:

• Assistant Project Manager: To manage procurement, human resources, and project management.
• Bookkeeper: To manage accounts payable, accounts receivable, and payroll.
• Contractors: Three to start – experienced roofing contractors with expertise in various roofing techniques and materials.
• Office Staff: Two to start – to manage phone calls, scheduling, clerical, and any other administrative task required.
• Marketing & Sales Manager: One full-time employee who will be responsible for developing and launching the marketing campaign and managing the website and social media accounts.

Over time, additional project managers, assistant project managers, and contractors will be hired to increase the company’s capacity to take on projects.

 

IX. Financial Plan

You can download our roofing plan template (including a full, customizable financial model) to your computer here.

Revenue and Cost Drivers

[Company Name]’s revenues will come primarily from new roof installations for homes and businesses. Approximately 15% of revenue will come from restoration and repairs. For each new roofing installation project, half of the fee is expected at signing and half on completion of the work.

Labor expenses will be key cost drivers – including both salaried employees and hired subcontractor labor. Cost of sales, which will include subcontractors, materials, and direct labor for projects, is equal to roughly 75% of revenue for projects. This percentage is expected to drop with experience over the first five years of operation. Marketing and lease for the company’s office space will be secondary costs.

Capital Requirements and Use of Funds

[Company Name] is seeking a total funding of $200,000 in debt financing to open its roofing company. The funds will be used for capital expenditures, office build-out, hiring initial employees, marketing expenses, and working capital.

Specifically, these funds will be used as follows:

• Office build-out: $90,000
• Equipment and supplies: $60,000
• Working capital: $50,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Key Assumptions

The following table reflects the key revenue and cost assumptions made in the financial model:

Number of Clients	Average
FY 1	100
FY 2	120
FY 3	150
FY 4	200
FY 5	225

 
5 Year Annual Income Statement

		Year 1	Year 2	Year 3	Year 4	Year 5
Revenues
	Product/Service A	$151,200	$333,396	$367,569	$405,245	$446,783
	Product/Service B	$100,800	$222,264	$245,046	$270,163	$297,855
	Total Revenues	$252,000	$555,660	$612,615	$675,408	$744,638
Expenses & Costs
	Cost of goods sold	$57,960	$122,245	$122,523	$128,328	$134,035
	Lease	$60,000	$61,500	$63,038	$64,613	$66,229
	Marketing	$20,000	$25,000	$25,000	$25,000	$25,000
	Salaries	$133,890	$204,030	$224,943	$236,190	$248,000
	Other Expenses	$3,500	$4,000	$4,500	$5,000	$5,500
	Total Expenses & Costs	$271,850	$412,775	$435,504	$454,131	$473,263
EBITDA		($19,850)	$142,885	$177,112	$221,277	$271,374
	Depreciation	$36,960	$36,960	$36,960	$36,960	$36,960
EBIT		($56,810)	$105,925	$140,152	$184,317	$234,414
	Interest	$23,621	$20,668	$17,716	$14,763	$11,810
PRE-TAX INCOME		($80,431)	$85,257	$122,436	$169,554	$222,604
	Net Operating Loss	($80,431)	($80,431)	$0	$0	$0
	Income Tax Expense	$0	$1,689	$42,853	$59,344	$77,911
NET INCOME		($80,431)	$83,568	$79,583	$110,210	$144,693
Net Profit Margin (%)		-	15.00%	13.00%	16.30%	19.40%

 
5 Year Annual Balance Sheet

		Year 1	Year 2	Year 3	Year 4	Year 5
ASSETS
	Cash	$16,710	$90,188	$158,957	$258,570	$392,389
	Accounts receivable	$0	$0	$0	$0	$0
	Inventory	$21,000	$23,153	$25,526	$28,142	$31,027
	Total Current Assets	$37,710	$113,340	$184,482	$286,712	$423,416
	Fixed assets	$246,450	$246,450	$246,450	$246,450	$246,450
	Depreciation	$36,960	$73,920	$110,880	$147,840	$184,800
	Net fixed assets	$209,490	$172,530	$135,570	$98,610	$61,650
TOTAL ASSETS		$247,200	$285,870	$320,052	$385,322	$485,066
LIABILITIES & EQUITY
	Debt	$317,971	$272,546	$227,122	$181,698	$136,273
	Accounts payable	$9,660	$10,187	$10,210	$10,694	$11,170
	Total Liabilities	$327,631	$282,733	$237,332	$192,391	$147,443
	Share Capital	$0	$0	$0	$0	$0
	Retained earnings	($80,431)	$3,137	$82,720	$192,930	$337,623
	Total Equity	($80,431)	$3,137	$82,720	$192,930	$337,623
TOTAL LIABILITIES & EQUITY		$247,200	$285,870	$320,052	$385,322	$485,066

 
5 Year Annual Cash Flow Statement

	Year 1	Year 2	Year 3	Year 4	Year 5
CASH FLOW FROM OPERATIONS
Net Income (Loss)	($80,431)	$83,568	$79,583	$110,210	$144,693
Change in working capital	($11,340)	($1,625)	($2,350)	($2,133)	($2,409)
Depreciation	$36,960	$36,960	$36,960	$36,960	$36,960
Net Cash Flow from Operations	($54,811)	$118,902	$114,193	$145,037	$179,244
CASH FLOW FROM INVESTMENTS
Investment	($246,450)	$0	$0	$0	$0
Net Cash Flow from Investments	($246,450)	$0	$0	$0	$0
CASH FLOW FROM FINANCING
Cash from equity	$0	$0	$0	$0	$0
Cash from debt	$317,971	($45,424)	($45,424)	($45,424)	($45,424)
Net Cash Flow from Financing	$317,971	($45,424)	($45,424)	($45,424)	($45,424)
SUMMARY
Net Cash Flow	$16,710	$73,478	$68,769	$99,613	$133,819
Cash at Beginning of Period	$0	$16,710	$90,188	$158,957	$258,570
Cash at End of Period	$16,710	$90,188	$158,957	$258,570	$392,389