If you want to run your own roofing business, there are some important steps you need to take. These include starting a Limited Liability Company (LLC), forming a roofers association, obtaining a manufacturer warranty, and getting a business valuation. These are all necessary steps that will help you ensure your business runs smoothly.
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Start a Limited Liability Company (LLC)
When you’re thinking about starting a roofing company, you need to decide what type of business structure will work best for you. One popular option is to form an LLC. This can lower your personal liability and minimize your business’s legal responsibilities.
Many small businesses use this type of structure because of the flexibility it allows in terms of taxation and management. Once you’ve made your decision, you’ll need to file Articles of Organization with your state’s Secretary of State Office. You’ll also need to choose a Registered Agent.
An LLC helps protect the owners’ personal assets in the event of commercial bankruptcy or loan default. Also, an LLC is a pass-through entity, meaning that its net income passes through to its owners’ personal tax returns. This means that the business’s net income is subject to the owner’s tax bracket and self-employment taxes.
Form a roofer’s association
Forming a roofer’s association like these for your business will provide you with many benefits, not the least of which is legal protection. Whether you’re a solo contractor or you’re part of a larger roofing company, joining a union will help you protect your livelihood and the well-being of your employees. Associations also help to improve and raise standards in the industry.
Historically, the association was funded through an industry fund. This fund was paid by contractors based on the hours they worked performing roofing work, as part of their collective bargaining agreement with the union. Initially, the larger contractors contributed a large portion of the association’s funding. They paid thousands of dollars annually to support the association.
However, this method became unsustainable when the rise of open shop construction made it difficult to retain funding for the association’s programs. The union contractors also paid for most of the lobbying and promotional efforts.
Find a manufacturer’s warranty
If you’re looking to hire a roofing company to replace your old roof, it’s a good idea to find out if the company offers any kind of warranty. A manufacturer’s warranty will protect you from material and workmanship defects. It will cover damage caused by storms and improper installation, but it won’t cover problems caused by maintenance, like improper flashing, poor ventilation, or ice and water shielding.
It should also state what happens in the event of a claim, and it should include a section on how to resolve disputes. You should also check if the warranty is transferable. Some warranties will allow you to transfer the coverage to a new roof. Others won’t allow it, so you should read the fine print to make sure you’re covered.
Another important part of the warranty is how long it covers the work. The average warranty will cover about 10 years, but some companies will offer a lifetime guarantee. Check the fine print and make sure you understand how long it covers. The longer the warranty, the better, but long-term warranties may not be worth it if you’re not going to use it.
Get a business valuation
When selling a roofing company, understanding the value of the business is crucial. This is because a business valuation can help the buyer determine how much the company is worth and negotiate a fair listing price. It is important to understand the value of the business so that the buyer feels confident in his decision to purchase it.
Generally, roofing businesses sell for between 0.33xs to 0.51x their revenue. This range varies from business to business, and each business will have different factors that impact the value. The value of a business will also vary based on its operations, including how much it costs to operate the business.
It is important to remember that it is difficult to place a value on the time and effort it takes to run a business. It is therefore best to get a business valuation from an independent, third-party expert. Not only will a business valuation help you decide how much your business is worth, it can also reveal opportunities and liabilities that can help your business thrive.
Market your roofing company
One of the best ways to market your roofing business is by using social media. It’s an extremely effective tool for building relationships with potential customers. It can also increase your company’s online visibility, which will increase your sales. Social media platforms like Instagram and Facebook offer a wide range of platforms for your business to use.
In addition to using social media, you should also use word-of-mouth marketing to attract new customers. It can establish your company’s credibility as reliable, high-quality roofers near West Chester. Using yard signs can help spread the word about your services. You can also use current projects as an opportunity to advertise your services. Another great idea is to offer incentives to referrals. These referrals can then become your new customers.
Another way to promote your roofing business is to encourage customers to leave reviews about your services online. Many people trust reviews about businesses. A simple way to encourage positive reviews is to offer incentives to clients who take the time to write them. Also, follow up with past customers to remind them of your great work. This will increase the chances of them using your services again and recommending your services to their friends.
Another free marketing method is to list your roofing company on business directories. There are plenty of online directories that allow you to list your business for free. Yellowpages is a great example. Users can browse listings and find the best businesses in their area. You can also register for free with many of these directories in lots of places you wouldn’t expect.