The construction industry is one of the most competitive industries in the world, and you can see hundreds of new companies cropping up every year, as well as many mergers and acquisitions taking place. Be it HVAC businesses, plumbing businesses, general contractors, or roofing businesses, they all need to continue to evolve and grow to keep up with the competition and hold on to their share of market customers.
Are you the owner of a roofing business and looking to grow your business to keep up with the competition and earn higher profits? In this article, we will outline several ways in which you can grow your roofing business and ensure that it is successful.
How to Grow Your Roofing Business in order to sell it for maximum value
As we move into the new year, plenty of roofing businesses on the market offer their services to customers looking for new roofs or roof repair services. As the demand for roofing services grows, there is also the opportunity for businesses to take advantage of this demand and grow their businesses.
Here are eight ways in which you can buy an existing roofing business and grow it, keep up with competing firms, and ensure the success of your business in the years to come:
1. Adjust Your Business Plan to Aim for Growth
Many business owners work to develop a strong business plan during the early days of starting their businesses. However, once the business is up and running, not a lot of people go back to it to change it according to new goals. If growth is one of your main goals for your roofing business, then this should be reflected in your business plan.
If you haven’t done so already, now is the time to adjust your business plan for growth. Consider market competition and evaluate your business’s weak points that need to be worked on. You can set a few growth goals for your roofing business that you hope to achieve over a certain time period. For example, you can set a goal of increasing your customer base by a certain percentage or aim to hire more employees.
It is also important to plan business growth sustainably. You don’t want to end up with more customers than your business can handle or too many employees but not enough money to offer them sufficient training or compensation. Financial planning goes hand in hand with growth planning.
2. Keep a Close Eye on Your Cash Flow
Roofing businesses rely heavily on day-to-day cash flow and are known as “cash-hungry” businesses. As we mentioned before, your plans for business growth need to work hand in hand with your financial planning, and you must keep a close eye on your business’s cash flow.
As a part of running your business daily, you need to understand your accounts receivable, accounts payable, and other overhead expenses to know exactly what your cash flow is. This can help you plan for future growth better, using this information to more accurately project your future revenue and costs.
So, not only do you need to regularly review and keep a close eye on your cash flow to successfully grow your roofing business, but you also need to consider cash flow when making business decisions like when to hire more employees, buy new equipment, and so on.
3. Keep Your Pricing Structure Competitive and Profitable
As we have discussed, cash flow is what keeps your roofing business afloat from day to day. But profit will help you ultimately grow your business by putting that profit back into the business. And of the best ways a roofing business can make profits is by keeping its pricing structure competitive and profitable.
Different roofing businesses in a similar area might charge wildly different rates for their services. This is because some businesses offer residential roofing services while others offer commercial roofing services, some offer flat roofs and some offer metal roofing. There is also the fact that businesses use different materials and processes. You may think copying a competitor’s pricing structure is the best way to go, but that is not always the case.
Your pricing structure will have to take into account the cost of labor and materials, as well as your business’s overhead costs. The ultimate thing to remember is that your customers are meant to cover all of your business costs, and this will be reflected in the prices you charge and the profit margin you set.
4. Update Your Website and Marketing Strategy
Even with an incredibly talented team of employees and all the best quality roofing materials, your business won’t be successful unless you have customers that buy your services. To expand the reach of your roofing business and secure a fair share of customers in a competitive market, you need to update your market strategy, including your website.
Your roofing business needs a website that is easy to use and optimized so that it shows up when potential customers are looking for roofing services. If you don’t already have a professionally designed website, it might be a good idea to hire an outside company that can help you develop your website. As a part of your website, you want potential customers to have all the information they need about your business. You should also highlight successful projects you have previously worked on and include some of your top reviews from old customers.
Other than optimizing your website, you may want to consider the role of social media when it comes to effective business marketing. A strong online presence on social media can help you expand the reach of your business and draw in more potential customers. Social media is also a great way for you to work on creating a brand for your roofing business. Your business should be instantly recognizable from other businesses, which can be done through branding techniques like coming up with a unique logo and having that logo on your website, equipment, employee uniforms, and so on. Overall, investing in marketing and developing an effective marketing strategy is imperative if you wish to grow your roofing business.
5. Reorganize Your Business Structure If Needed
Many roofing businesses start out small and grow over time. But a big problem with unchecked growth is that many business owners fail to reorganize the business’s structure to accommodate that growth. As a business grows, it is important that the business’s structure is also continuously reorganized.
Over time, it is important that the owner of a roofing business hires suitable managerial staff. A roofing business cannot rely simply on expert roofers but also needs managers, directors, and other staff. The owner can only offer so much support to their employees without the help of further managerial staff.
It is also necessary to have a clear chain of command set in place as a business grows. This ensures that employees know how to divide their workload and responsibilities and always have someone to answer to. With a business that runs like a well-oiled machine, you can guarantee satisfied customers and continued growth.
6. Reevaluate Your Role as the Leader of Your Roofing Business
Be it a roofing business, some other kind of business in the construction industry, or a business in any other industry at all, the role of the business leader is extremely important in determining the success of the business. While it isn’t wise for a business owner to micro-manage every aspect of the business, they need to play a proactive role in the business.
So, if need be, you should reevaluate your role as the leader for your roofing business and all your employees. Part of this involves taking out the time to openly communicate with your employees, opening up safe channels for communication and feedback, and allowing yourself to always learn more about leading a successful business.
7. Invest in Your Employees and Create Policies to Retain Employees
A roofing business can only be as successful as its employees and roofing contractors are. The employees are also the people that represent a business to the customers. So, not only does a roofing business need to hire skilled and trustworthy employees to succeed, but it should also invest in those employees and help them improve.
To do this, business owners should offer their employees the best training with different opportunities to take advantage of. As an owner, you may also want to consider creating policies that help you retain good employees. This will help you retain your trained and qualified employees and cut down the costs of hiring new workers and having to train them from scratch.
8. Consider Business Acquisitions and Mergers to Grow Your Roofing Business
And lastly, some businesses aim to grow through strategically planned mergers and acquisitions. A way to grow your roofing business is by finding other roofing businesses for sale and acquiring those businesses or merging with another one that is looking for quick growth.
Of course, mergers and acquisitions are not short or simple processes, and you have to thoroughly investigate the business you are thinking of acquiring or merging with. A business valuation is a great place to start. You also have to understand whether the business you acquire or merge with will fit your current business well.
The Bottom Line
2023 is set to be a good year for businesses in the construction industry that are looking to grow and become successful. If business growth is one of your goals for the coming year, be sure to adjust your roofing business’s business plan to accommodate for growth. You also have to pay close attention to your cash flows, pricing structure and profitability, and the basic structure of your business. Then, focus on creating an effective marketing strategy, as well as new strategies for employee training and retention. As a last effort, many business owners consider strategic mergers and acquisitions as a way to quickly grow their roofing businesses.
N3 Business Advisors – The Best M&A Advisors for the Construction Industry
If you are the owner of a roofing business, you should be looking for an experienced M&A advisor with experience in selling roofing businesses and not a generalist commercial real estate broker or a generalist business broker. At N3 Business Advisors, we specialize in the construction industry and look forward to helping you. To learn more, please also visit our website link to learn more about roofing companies for sale.
No matter what business goal you want to achieve, be it business growth, preparing your business for sale, valuing your business, or merging with or acquiring another business, our experienced, qualified, and dedicated team is ready to assist you. We can also help you find roofing businesses for sale in Ontario or value your roofing business.
Reach out to us now, and schedule a confidential consultation with our team. Call us at 647 967 4222 or visit our website if you have any questions or concerns.
N3 Business Advisors is based in Ontario, with our office at 55 Village Centre Place, Suite 200, Mississauga, ON L4Z 1V9.