How to start a roofing business
Roofing produces the largest job values on this site and the thinnest margins. The first ninety days are mostly about not running out of money.
For the full financials, see the roofing business plan.
Week 1: licensing and insurance
State contractor licensing. Many states require a roofing-specific licence, and most require the licence number on residential contracts.
General liability, $3,000 to $9,000 a year.
Workers’ compensation if you employ, $8,000 to $25,000 a year. Roofing carries one of the highest classification rates of any occupation, and this single number is why most small roofers subcontract.
Get certificates before you quote anything. Homeowners increasingly ask, and commercial work will not proceed without them.
Week 2: the working capital question
This is the step that ends new roofing companies, and it is not on most checklists.
A 24-square replacement needs roughly $5,500 of material, ordered and delivered before the job is finished and paid. Run three concurrently and you are $16,500 out of pocket against payments that arrive weeks later.
So before you take a second job, settle:
- Supplier terms. Net-30 with a roofing supplier transforms your cash position. Apply early; it takes time and trading history.
- Deposit structure. 30% to 40% at signing, a progress payment at tear-off or delivery, balance on completion.
- How many concurrent jobs your capital supports. Know the number and do not exceed it, however tempting.
A roofing company can be profitable on every job and still fail. This is how.
Week 3: crew or subcontract
Decide, and be honest about why.
Subcontracting converts labour from a fixed cost to a variable one, removes most of the workers’ compensation exposure, and lets you scale up for a storm and back down after. You keep sales, project management, quality control and repairs.
Employing crews gives you more control over quality and scheduling and costs substantially more to carry through a slow month.
Most small roofers subcontract installation for the first few years. There is no shame in it and it is the more survivable structure.
Weeks 4–8: start with repairs
Counter-intuitive and correct.
Repairs are cheap to acquire. They come from local search and from neighbours, not from a $300 lead.
They carry 45% to 65% gross margin, against 25% to 40% on replacement.
They build the relationship that produces a replacement in three or four years, from a customer who will not shop it.
They generate reviews quickly, which is what you have none of.
New roofers who chase only replacements pay for every single lead, forever. A repair book compounds.
Google Business Profile with photographs of your own work. Local search pages for repair, replacement and each town you serve.
Weeks 9–12: build the estimating habits
Always pre-price decking. A stated per-sheet rate in every quote, carried out only with written approval. Without it you will negotiate on an open roof, and you will lose.
Quote two or three material tiers. Customers given one number get two more quotes.
Track cost per acquired job, not cost per lead. It is the number that explains where your margin went.
What to run it on
Proposal quality and job tracking are the needs.
Jobber at $49/mo plus $29 per seat produces the best customer-facing proposal at this price and handles staged payments. QuoteIQ at $29.99/mo measures roofs off satellite imagery for fast repair quoting. Housecall Pro Max adds a proposal tool for tiered options.
Questions operators actually ask
How do I start a roofing business?
Get licensed and insured, secure supplier terms and working capital, decide whether you crew or subcontract, then build a repair book alongside replacement work. Working capital is the step most new roofers underestimate.
How much money do I need to start roofing?
$40,000 to $130,000, and most of it is not equipment. Insurance, workers' compensation and working capital to buy material before customers pay dominate the number.
Why does working capital matter so much?
Because a single replacement might need $5,500 of material ordered before you are paid. Run three at once and you are $16,500 out of pocket. Roofing companies fail solvent-on-paper more often than they fail unprofitable.
Should I hire crews or subcontract?
Most small roofers subcontract installation and keep sales, project management and repairs in-house. It converts a fixed cost into a variable one and substantially reduces workers' compensation exposure.
How do I get my first roofing customers?
Repairs, through Google Business Profile and local search. Repairs are cheap to acquire, high margin, and they put you in a relationship with a homeowner who will need a replacement in a few years.