Every home needs a roof, and as such roofing contractors are able to always generate revenues any economic climate given that they are able to provide not only installations of new rooms but also from ongoing repairs associated with existing structures. One of the key strengths for a roofing contractor is that there are very high barriers to entry for this type of business. This number of licenses in place in order to render the services to the general public. It generally takes about four years to become a licensed. In any economic climate these businesses are going to remain in demand and will be able to produce substantial gross profits from both roofing installations as well as repairs. The startup costs for new roofing contracting business are considered to be moderately low in typically range anywhere from $25,000 all the way to about $200,000 depending on the working capital needs of the business, furniture, fixtures, equipment, and vehicles that are to be purchased. Most financial institutions are more than happy to provide business loans as well as business lines of credit to new roofing contracting businesses provided that the owner is licensed in the state in which they are doing business. However, it does take time to establish a strong brand name for new roofing contractor and competition can be moderately high in most locations.
For weaknesses, roofing contractors – again – primarily have to face competition from a number of other service providers in any given market. As such, it is imperative that the entrepreneur establish a wide-ranging marketing campaign that will ensure that the brand name of the business is known from the Onset of operations. Also, one of the ways at the weaknesses regarding a roofing contracting business are ameliorated is by the fact that these essences will often partner with general contracting businesses, real estate developers, and other third-party contractors in order to receive ongoing work orders. The operating expenses of these businesses was also somewhat high given that a number of well-trained employees are needed in order to provide quality roofing services to the general public.
For opportunities, these businesses can readily expand by simply hiring additional staff roofers in order to complete a number of additional jobs on an ongoing basis. As stated above, almost all financial institutions are willing to provide expansion capital for profitable roofing contracting businesses. These companies can also expand by acquiring roofing companies are already established within the local market. Although this is a non-organic means of expanding business – the return on investment can be substantial if the acquisition is properly carried out.
For threats, where the biggest changes in this industry is the type of construction materials that are used in conjunction with the development of new properties. As such, a roofing contracting business needs to have a dedicated operation that ensures that only the latest and state-of-the-art technology is used when installing a new roof into a new building. Continuing education courses and related studies are almost require these days by many roofers in order to ensure that they are operating within the letter of the law as it relates to building codes. However, outside of any changes in technology and competitive threats – there is very little that would impact the way that a roofing country contractor conducts business moving forward. These businesses are expected to remain in demand in perpetuity.