Beruflich Dokumente
Kultur Dokumente
CHAPTER
12
The Business of Roofing
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Things I
Real Really Like
World to Do How Can I Make Money at It?
✓ Collect and restore Could start to look for more and buy some
1950s cars and have others do some of the work on
them.
✓ Consult about Could learn more about being an expert
roofs witness and put out some cards.
Use Figs. 12-2 and 12-3 to determine your long-term goals. They are
available on the CD included with this book for downloading to your
computer, so you can change and update your plans as you go along.
These goals will become the schematic overview for your roofing busi-
ness. Figure 12-2 is a sample of how a person might fill in the infor-
mation. Figure 12-3 is a blank form that you can copy and experiment
with. Remember that all of the checklists can be found on the CD.
Naturally, these goals are unique to each person, but the process of set-
ting goals is what will provide the road map for your success, no matter
what path you choose. The main change in attitude that you can make in
your business life is from a position of reactive to one of proactive man-
agement. You are going somewhere with your life, and you now have a
reason to tighten up your business. This approach will be set against a
backdrop of long-term goals and their relationship to everyday tasks.
Now that you have a sense of resolve based on long-term plans that
really mean something to you, it is time to look at how to put them into
action. Take your filled-out copy of Fig. 12-3 and develop the short-
term goals that will guide you toward your long-term goal. They must
be thought through and implemented.
Figure 12-4 is an example of how a person might fill out the short-
term game plan worksheet. You will find a blank copy in Fig. 12-5 and
on the CD.
F I G U R E 1 2 - 6 (Continued)
There are many books that include the format for a business plan.
There is also plenty of software available that will step you right
through your own plan. A good beginning assortment of references can
be found in App. A; you can update it in your own database. One of
the best sources of information pertaining to your particular location is
the Small Business Administration—it is an excellent place to find the
things that are important to a small business.
If you are doing a plan by yourself, you may find that the headings
suggested in books and software are written in financial speak and
seem distant, not immediately important to you as a roofing profes-
sional. This is your intuition and years of experience speaking to
you—trust it. Always be firm with consultants, attorneys, advisers,
counsel of any type; they must boil their concepts down into plain
Scharff_Chap12_6x9-GOOD 9/21/00 11:22 AM Page 401
✓ Find software that I can punch Make sure that we have been
figures from accounting into inputting correctly; read
and forecast where we’ll be in through printout and see how
the next year. accurate it looks. Go over it
with the accountant and
accounting and estimating
staff.
Marketing
A job well done is the best marketing tool, and word of mouth is by far
the most secure and inexpensive form of marketing. As you start to put
your new goals into action, take a close look at your business as it
stands. If you have a good working relationship with past customers,
architects, and general contractors, this is the place to begin overhaul-
ing your marketing and sales.
With goal setting under way and forecasting and leveling started,
you can begin to see some patterns. How can sales increase as the
business stands? How can you handle sales as they increase? What can
you do to test the market for a sales increase?
Figures 12-9 and 12-10 can help you understand this important
part of your business. Figure 12-9 is an example of how a roofer might
start to fill out the marketing checklist, and Fig. 12-10 is a blank form
for you to copy for a trial run. There is a working copy on the CD.
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✓ Task Notes
Sales
In roofing, unlike many businesses, sales are almost always contingent
on solid estimating practices. As you well know, the bid price is often
the sole factor in your firm’s getting the contract. This is not necessar-
ily the correct way to go about getting quality roofs put on buildings,
but it is the system we have to work with.
Naturally, having a powerful estimating system in place—whether
it is a very simple dollars-per-square technique or a sophisticated com-
puterized method—is probably the most important part of sales. We
take another look at estimating in Chap. 13, which covers the modern
electronic systems.
One factor that can often be decisive in your company’s closing a
sale rather than another roofer is confidence that your firm will pro-
vide a quality roof. Once you develop a solid track record of jobs well
bid and executed, with satisfied customers whose roofs have with-
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stood the elements, you should put some time into developing meth-
ods for presenting the testimony of these satisfied clients to the new
people for whom you are preparing bids. This information will be a
part of your sales and marketing presentation package.
In a tight bidding situation, your track record can make or break the
deal. No matter how you receive most of your invitations to bid—
architects, general contractors, product manufacturers, word of mouth,
advertising, or a combination thereof—being able to present a solid
history of long-lasting roofs can win the contract in many situations.
And this is often the only edge you have over others.
Figure 12-11 presents an example of the way you might fill in the
sales worksheet, and Fig. 12-12 is a blank one for you to make copies of.
Insurance
The various forms of insurance and bonding are discussed here in sim-
ple terms. An understanding of coverage issues, construction defect
litigation, claim handling, and liability is an important part of your
business. It is important to assign someone in the office who is a stick-
ler for detail and has a knack for explaining what he or she has learned
to the task of staying on top of insurance. Work with your vendors and
agencies; ask lots of questions, make certain you understand what the
policies say, have a broker shop your policies, with the same coverage,
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Unemployment Insurance
All states levy an unemployment insurance tax on employers. The tax
is based on total payroll for each calendar quarter. The actual amount
assessed depends on the history of unemployment claims filed by
employees of the company. The tax can range from 1 to 4 percent of
payroll dollars.
FUTA
FUTA is the federal government’s unemployment tax. This tax aver-
ages 0.8 percent of payroll dollars per employee up to a maximum dol-
lar amount per year that is determined by law.
Liability Insurance
This insurance protects the roofing contractor in the event of an acci-
dent. Most general contractors require that a certificate of insurance be
presented before a subcontractor begins work. The cost of this insur-
ance is based on total payroll and is dependent on the location of the
company, the type of work performed, the history of claims by the
company, and the required liability limits.
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Make certain that your insurance broker and a coverage lawyer (if
needed or if you are just starting out) have gone over what the policies
do for you. Discuss this with them in detail. Compare the costs of var-
ious carriers.
You must also understand the liability clauses in the general con-
tractor’s documents that designate liability.
This list outlines expenses that will be deducted from the gross rev-
enues your firm takes in for any job you do. The costs are clear exam-
ples of why the labor burden must be included in every estimate.
Since state and local governments pass their own laws and set their
own percentages for some of the above-mentioned taxes, and since
individual companies set insurance rates, it is necessary to frequently
update information and expenses associated with these costs. Failure
to update these costs on a regular basis can result in underpriced jobs,
reduced profit margins, and perhaps even losses.
Using Subcontractors
This chapter has touched on the fact that a great many people who are
involved in roofing came into the office from the field. And because of
the continual demands of the day-to-day workload, people often get
lost in small jobs and never find time to quit being mechanics in the
field. The important process of overhauling their business to achieve
long-term goals may just continue to fall by the wayside.
Learning to work smart rather than hard can be a hefty learning
curve. As we explained earlier, the important thing is to look closely at
how your ability to work smart relates to your existing business and
your past work experience.
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Accounting
Accounting is an interesting part of your business. There is a tendency
to make a big, gnarly mystery of it. But in reality it is very much like a
road map of your business, except that it tends to change more than
maps do.
There was a time when accounting required a good deal of knowl-
edge and an unbelievable amount of attention to detail. A cavalier
viewpoint still will not cut it with accounting, but it is much easier to
track the money trail of a business than it was 20 years ago.
The main person needed in-house is someone who has knowledge
of the accounting software and what it is supposed to do. If this person
also has accounting skills beyond managing data, that can be a big
help.
However, the main thing that is needed is a good accountant and
strong software that is easy to use and can interpret your estimates and
offer thorough reports about the financial position of your business.
In Chap. 13 we take a close look at computers. They have forever
altered the labor needs for the accounting center of a business.
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In the end, try to remember that this is your life that is ticking by,
that a business needn’t be a somber, funereal arena. It can just as eas-
ily be a fun place to spend time and still be efficient and very profes-
sional.
As we said in the beginning of this chapter, it is easy to forget that
roofing is first of all a business, and that it is the business of roofing
that presents the arena in which the tradesperson can practice his or
her craft as a skillful roofer. And it should be remembered that the
more pride and joy in working together the people in the company
feel, the stronger the company will be. Roofing can be very profitable
for a long period of time. Everything is contingent on how the owner
approaches the business on a day-to-day basis.