Let me be clear, there are a multitude of ways to make money in the construction industry and also ways to go belly up in a hurry. My goal with this article is to hopefully enlighten you about the benefits of owning a roofing business. Now, the specific niche I am talking about is "repair" not replacement. While there is more volume of money in replacement, there is greater "margin of profit" in repair. This leads to more questions, so here goes:
- Margins for roofing replacement services- 8% to 30%
Margins for roofing repair services- 45% to 90%
You see where I'm going with this right?
Start-up cost for roofing replacement companies- $ 20,000 to $ 100,000
Start-up cost for roofing repair companies – $ 100 – $ 2,000
Getting the drift yet?
Employees needed for roofing replacement companies – 6 to 12 (minimum)
Employees needed for roofing repair companies – 1 to 3
We are getting there, hold on!
Insurance and other overhead cost for roofing replacement companies – $ 5,000 to? monthly
Insurance and other overhead cost for roofing repair companies – $ 100 to $? monthly
Almost there. Big one coming up next!
Your personal liability and exposure for replacing a roof – $ 20,000 to ????? per project
Your personal liability and exposure for repairing a roof – ZERO !!!!
There are many factors to consider before starting any business. But at the end of the day, your objective should be to provide a very valuable service and to earn the highest return possible.
If you are wondering, a successful roofing company owner makes more in a year than most of the highest paid doctors in America. Let that sink in for a moment.