How to Start a Roofing Business ($270K a year)

How to start a ROOFING company ($270K/year) and never actually lay a shingle.

Roofs need to be replaced every 20-30 years. Average cost of a roof in 2023 is $10,000. There a massive opportunity for roofing because there are hundreds and thougsands of houses that are getting older and older.

Pairing that with recent storm damage. THE HOMEOWNER ISNT EVEN PAYING! INSURANCE!

Roofing Paper Contractor. What a paper contractor does is that they get the job and bid the job then they sub out 100% of the work.

We bid a $10K roofing job. Find a sub to do it for $8K-$9K. The sub is happy becuase they are getting a job without the acquisition cost (Marketing, etc.). We make money by providing the job.

How much does it Cost:
Formations Fees $200
Insurance: $10K a year
Marketing Budget: $10K year
Computer, website, training for bidding roofs: $3K
TOTAL: $23K

HOW MUCH CAN WE MAKE/CASHFLOW
If we take the average roof replacement at $10,000.
Average Profit Margin: 10%-20% we use average 15%
$10,000 job = $1,500 in profit.
Win 3-4 jobs a week, 15 jobs a month = $22,500 a month
$22.5K/month = $270,000/year

$270,000/year - $23K/expenses/year = $247,000 profit.

Positives of this business:
You don’t have to roof
Your time is minimal since you are essentially managing jobs.
If you can market, the sky is the ceiling.
No employees.

Think of ways it will fail:
Sales/ Marketing = gettings jobs.
Subcontractors = Find trusted subs before starting this business. Predetermine their pricing so you can mark up yours. Understand how they price jobs.
Make sure they have insurance and do a good job.
Unorganized. You arent managing your jobs. Setting expectations with clients.
Correct Bidding for profit

Legal Up
LLC
Insurance
Subcontractor Agreement.

Commit to Starting

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