The Top 5 Warning Signs of a Struggling Roofing Business
(and 5 ways to take action, before it’s too late!)
The roofing industry is a challenging space to own a business. In fact, over 50% of new roofing businesses will fail before they even make it to the $3 million mark.
For over 10 years, AccuLynx has helped thousands of companies grow their revenue by an average of 40%. Our work in providing the most trusted business management software exclusively for roofing contractors has allowed us to gain a unique perspective when it comes to understanding what factors can prevent a company from achieving success.
Here are the top 5 warning signs we’ve identified.
#1 – No Set Processes
Lack of structure has a negative impact on a company. When people don’t know what steps to take or who is responsible, mistakes are common and delays are inevitable. This can limit a company’s ability to take on more than a few jobs at a time.
Tip – Create Accountability
Make sure you have a well-defined process documented for everyone to follow or let a CRM/project management system do it for you. This way, you can keep detailed records and communicate in real time so problems are eliminated before they begin.
#2 – Lack of Data
Roofing businesses that lack data or a way to analyze their performance are limited in their ability to identify areas of weakness. Oftentimes, these companies are alerted to issues way too late, and it’s a lot harder to recover.
Tip – Know the KPI’s
Understanding how your roofing business is performing in key areas at all times is critical for financial stability and growth. Business owners should make sure to review overall profits and losses, accounts receivable, accounts payable, job costs, job profits, and sales closing rates at least once a month.
#3 – Inefficient Workstreams
Businesses oftentimes spend a lot of money paying multiple administrative staff to carry out manual, back-office functions that could be done in faster and cheaper ways. When staff have to manually enter information into multiple systems, mistakes are more common and record keeping/processing is harder than
it needs to be.
Tip – Automate Repetitive Tasks
Take advantage of CRM integrations with accounting systems like QuickBooks so staff never have to enter information in two places. It’s more efficient and less expensive to have software streamline functions like this, allowing you to reallocate resources to areas that will improve your bottom line.
#4 – Not Investing in the Business
Roofers that are not willing to make continued investments in their business operations and their people often struggle to retain and recruit talent. As a result, their continued growth will suffer.
Tip – Give People the Tools They Need
Take advantage of technology! Software tools cost money, but the returns are often realized quickly. By giving employees a better, more efficient means to do their jobs, businesses can ensure a foundation for growth while also attracting more tech-savvy talent.
#5 – Underestimating the Competition
New roofing companies are entering the market faster than ever so customers have many options to choose from. In the time it takes to canvass one neighborhood, the competition has covered three, thanks to more sophisticated selling tools. Everyone is competing for the same business, so oftentimes, the first roofer onsite is the one who gets the job.
Tip – Reach Customers Faster
Reach potential customers quickly and address their issues faster. Using electronic signatures to get contracts signed on-site and getting crews scheduled to start work right away can make all the difference.
Be a Successful Roofing Company
These five warning signs take down roofing contractors all the time. While they may seem small, they can have huge repercussions in the long run. Ensure that your company continues to prosper by avoiding these pitfalls and utilizing our tips.
Set your company up for success with the #1 software for roofing contractors.
