Why Do Roofing Companies End Up Going Out of Business?
Wade Warren Wade Warren September 15, 2022

Why do some roofing companies fail? Roofing company management is complex. Roofing business management entails juggling many pieces, and it's easy to overlook. These (often little) mistakes may cost a roofing company a lot of money.


As the industry standard in roofing project management and CRM, we hear daily from roofing business owners about their success (or failure). We've listed the most frequent roofing business failure reasons and solutions.


roofing business



1. Poor processes


Disorganization is a significant error for roofers. We don't mean your desk is dirty, documents are strewn, and folders are unlabeled. Unorganized roofers struggle to onboard new personnel, manage new prospects, and oversee spending along the pipeline. This disarray leads to failure in the roofing sector.


Contractors typically want to start work immediately without a strategy to guide them. Set up a set of actions that everyone in your firm follows to take a fresh lead through the pipeline to completion. Standardized checklists that cover your regular processes, timing, and safety and OSHA standards might be helpful for each task. When all contractors at your roofing business work the same manner, tracking project progress, preventing OSHA violations, and fulfilling your clients' expectations is simpler.


RooferIntel software has pipeline phases across your portal to assist you. Check leads, clients, and prospects to enhance sales and close more projects.


2. Lack of marketing


Marketing is a significant asset for a roofing company and vital for attracting business. Marketing may be tricky; many contractors don't know where to invest or the best methods, so they spend their time and effort badly with little to no results.


Spend your money wisely to ensure successful marketing. While it may sound "cool" to support the local shuffleboard team, you won't see much return. Social media, trade exhibitions, and a current website can assist get your company's identity in front of the correct audience while using your cash effectively. To make your marketing successful, establish the perfect buyer for your items and target that group.


3. Not Hiring The Right People


Managing personnel is one of the trickiest components of owning a company, and roofing contractors may fail here. The incorrect person may hurt your firm, so identify employees who fit and contribute to your developed culture. A terrible employee contributes negativity and discontent to the team, not only blunders.


Many contractors want to start quickly, so they employ as soon as possible. However, it doesn't imply they're ideal for your business. Take the time to hire a skilled and trustworthy employee for your organization.


Same for existing workers. If they hurt your roofing business, let them leave and locate someone who can help. You should be okay with your staff being the face of the firm. This implies they must respect homeowners, property, and timetable while maintaining a high work level. Customers that leave unfavorable online reviews may have had short contact with one of your contractors on the project site while you weren't there. A poor review might deter the next client even if you're not directly responsible.


>>Related post: Tax Preparation Guide for Your Residential Roofing Business


4. Lack of Training


Not investing in early and ongoing training of teams and crews is a common reason many roofing businesses fail. Many companies feel their new hires can jump right in. New and veteran personnel should be taught about your expectations for their position and the procedures you've built to maintain quality standards.


If you don't, your staff may not work to their capacity or make blunders that may be prevented. Training might range from providing a product or service demo to sending them to a coach or mentor who can help them succeed. Successful roofing firms spend on training rooms for staff. This entails setting aside space for replica roofs and ordinary weather damage. Investing in new personnel helps them to perfect their abilities and practice on all equipment before entering a working site.


There are many options to teach your personnel, so don't be afraid to call out. The time and money it takes to educate your staff is a minor thing to pay to guarantee your roofers know what they're doing and live up to the company's standards.


>>Related post: Tips for Expanding Your Roofing Business


5. Not Adapting To Change


Resistance to change is the roofers' final failing. The impulse to keep things the same is powerful, and it's easy to adopt an "if it ain't broke, don't repair it" mentality. What your growing firm needs today may not work for your startup. Keeping things the same might impede corporate development and drive away staff. Be conscious of what your roofing business needs to be healthy, and take action to develop.


The office and field technologies, people, employment procedures, and building space must adapt as corporate demands change. It might be challenging to go from the familiar to the unfamiliar, yet it's essential for corporate growth.


Roofing businesses that invest in their personnel, equipment, and technology are booming. What seems like an extra upfront expenditure might have a high ROI.

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