Dealing with fly-by-night roofing companies that can't seem to get it together?
Had enough of unprofessional behavior, lack of communication, and shoddy workmanship?
Are you dealing with a company that seems to have more problems than solutions? The leaky roof, the delayed project completion, and the subpar materials are just a few headaches you don't need.
We hear you!
But did you know that these issues are common among roofing companies, with over 90% of them going out of business within the first 5 years? It's no joke! The Small Business Administration reports it and we're here to shed some light on why.
At RoofCrafters, we understand the frustration that comes with working with unreliable companies. With over three decades of experience in the industry, we've heard our share of horror stories from our clients. We also know what it takes to provide you with a great experience. And we're here to share our knowledge with you.
In this article, we’ll share our Top 10 list of why roofing companies fail. Hopefully, by the end, you’ll be better prepared and ready to find a roofing company that will bring your roof back to life, not give you a headache.
Top 10 List: Why Roofing Companies Fail
The Small Business Administration (SBA) reports that over 90% of roofing companies fail and go out of business within the first 5 years. 90% of all new roofing companies that open!
Here are the top 10 reasons why 90% of roofing companies go out of business within 5 years:
- High competition
- Lack of business experience
- High overhead costs
- Seasonal nature of the business
- Lack of marketing
- Poor financial management
- Lack of proper insurance
- Lack of skilled workers
- Lack of reputation
- Not adapting to the market changes and new technologies
High Competition
There are many roofing companies in operation, making it difficult for new businesses to stand out and attract customers. New business owners often race to the bottom on their bids.
Lack of Business Experience
Roofing has a low bearer to entry. Many roofing companies are started by individuals who have little or no experience running a business. This can lead to poor decision-making and financial mismanagement.
High Overhead Costs
Roofing companies require expensive equipment and materials. Which can be a significant financial burden for any new business. Understanding how to add expenses into a bid is critical to stick around.
Seasonal Nature of the Business
Roofing is typically a seasonal business. Most roofing work takes place during the spring and summer months. This can make it difficult for companies to maintain a steady flow of income throughout the year.
Lack of Marketing
Many roofing companies do not invest enough in marketing and advertising. The money they do spend is often without a strategy. This makes it difficult for them to attract new customers. Losing potential customers also means losing out on future referrals.
Poor Financial Management
Some roofing companies do not have good financial management skills. The lack of financial intelligence is a serious problem. There is a lot of money coming in and going out. Without financial competences it's difficult to manage cash flow and stay profitable.
Lack of Proper Insurance
Insurance policies are expensive for roofers. Many roofing companies may not have the proper insurance. Often they only have “Ghost policies” which are paper policies that don't provide coverage to the workers. This can lead to financial difficulties and legal issues if there is an accident or injury on the job.
Lack of Skilled Workers
A shortage of skilled workers in the industry can make it difficult for roofing companies to find and retain skilled employees. Oftentimes leading to higher labor costs and lower-quality work. Which can create a bad reputation in the community.
Lack of Reputation
New roofing companies often lack a reputation. Online and word of mouth. Not considering or managing their reputation. This makes it difficult for them to establish trust and credibility with potential customers.
Not Adapting to Market Changes and New Technologies
Historical roofing companies have been lagging in the technology department. That has changed over the last several years.
The roofing industry is evolving with new materials, techniques, and regulations. Companies that don't adapt to these changes will struggle to survive.
So, there you have it folks, the top 10 reasons why roofing companies fail and why you don't want to be caught in the middle of one of these roofing disasters.
Hire a Reputable Roofing Company
To wrap it up, starting a roofing company might sound like a great idea, but it's not as simple as just putting up a shingle. You need experience, skill, reputation, and above all, the proper insurance policies. To ensure you don't fall off the roof of success and crash down into the land of failure.
So, go forth and find your roofing soulmate, because, with a little bit of research and a lot of common sense, you'll be on the roof of your dreams in no time. Here's a free checklist to help you along the journey.
And as always, remember, the roof is always in good hands with RoofCrafters, roofing for the past 30 years, and counting! So, if you're in one of our many service areas, sit back, relax, and let us do the heavy lifting. Or, in this case, the heavy shingling for you.
