Take a Leap forward toward success

By Corey Mann, Leap. 

Find out the 7 common issues that cause roofing companies to struggle and how you can avoid them.  

Roofing is a trade that is always in demand, whether for residential steep-slope projects or low-slope commercial projects. This demand makes it a promising venture, but the unfortunate truth is that it’s a rough industry to break into. Many new roofing companies end up going out of business within the first five years of operation.  

Understanding why more roofing companies fail rather than succeed is key to learning how you and your business can stand out and avoid the same pitfalls. There are many different factors that determine the fate of a roofing company, including established processes and project management style. Here at Leap, we’ve found seven core issues and pitfalls that cause roofing companies to fail, to help you set yourself up for success instead! 

Understanding why roofing companies fail 

The day-to-day grind of a roofing contractor can be overwhelming. And it can become quite complex once you start taking on more jobs. Therefore, it’s important that a new roofing business has a foundation to build upon that focuses on key areas that drive success within the industry.  

In today’s market, competition is growing as the demand for roofing jobs continuously picks up. As a result, companies without the right structure, systems and processes tend to fall behind.  

For example, the seven main reasons why roofing companies fail include:  

1. Lack of proper processes  
2. Outdated sales experience in a modern market  
3. Inadequate marketing strategies  
4. Insufficient training and development  
5. Poor time management  
6. Communication breakdowns  
7. Substandard project management  

Providing the highest quality work can only get you so far in today’s world. You have to understand that the real work begins well before you meet with a homeowner at the kitchen table. From generating leads and your sales strategy to your production and installation, everything must work efficiently and effectively.  

It’s no secret that the majority of roofing companies go out of business within the first five years. Moreover, a good portion of these companies don’t last more than two years. Let’s dig a bit deeper into the main reasons why.  

1 - Lack of proper processes 

One of the fundamental reasons roofing companies struggle is the lack of well-defined and efficient processes. The roofing industry involves intricate tasks that demand careful planning, execution and quality control. Companies that fail to establish clear processes may find themselves overwhelmed with inefficiencies. In general, this can lead to missed deadlines, cost overruns and dissatisfied customers.  

To mitigate this challenge, roofing entrepreneurs should prioritize the development of robust workflows that streamline operations from project initiation to completion. Implementing the right procedures and systems will ensure consistent results, better resource allocation and improved customer satisfaction.  

2 - Outdated sales experience in a modern market 

Roofing companies must adapt their sales strategies to align with modern customer expectations. In fact, it’s one of the primary reasons why roofing businesses fail. They cling to traditional sales approaches that fail to resonate with contemporary homeowners. Cold calling, door-to-door canvassing and limited online presence can significantly hinder a company’s growth potential.  

Successful roofing companies invest in a modern sales experience by leveraging digital platforms, social media and search engine optimization (SEO) to reach their target audience effectively. Engaging with customers through online channels not only expands your reach, but also establishes a stronger brand presence and builds trust among potential customers.  

Furthermore, your sales experience has to evolve once you meet with a homeowner. Presenting your services through paper materials and old samples is a thing of the past that wastes a homeowner’s time. The most successful roofers utilize new technology and CRM (Customer Relationship Management) software to provide a more professional experience.  

3 - Inadequate marketing strategies 

Failure to implement a comprehensive and effective marketing strategy is another critical factor contributing to the downfall of roofing companies. Many businesses overlook the power of strategic marketing, relying on word-of-mouth referrals alone. While referrals are valuable, an absence of proactive marketing efforts can lead to inconsistent lead generation. This leaves the business vulnerable to market fluctuations.  

Roofing companies need to invest in digital marketing initiatives such as creating a professional website, engaging in video marketing, running advertisements and nurturing leads through email campaigns. A well-rounded marketing approach increases brand visibility. It also attracts a steady stream of leads and bolsters the company’s reputation.  

4 - Insufficient training and development 

Roofing is a specialized trade that demands a high level of skill and expertise. If you asked around the industry why roofing companies fail, this would be a popular answer.  

Companies that fail to provide adequate training for their workforce are likely to experience a decline in the quality of their work. This not only leads to dissatisfied customers but can also result in safety hazards and legal liabilities.  

To overcome this challenge, roofing companies should invest in proactive training for their employees. Cover safety protocols, new roofing technologies, installation techniques and customer service skills. A well-trained workforce contributes to superior workmanship and reduced delays.  

This is also important during the onboarding of new employees. You need the right systems in place that help you plug in new employees quickly. With management software, you don’t have to spend weeks on end onboarding your new staff. Instead, you can focus on training the skills that drive your business forward.  

5 - Poor time management  

Time is a precious resource in the roofing industry, and poor time management can quickly lead to project delays and missed deadlines. Companies that fail to allocate their resources efficiently and set realistic timelines are at a higher risk of failure.  

Implementing effective time management practices involves careful project scheduling, resource allocation and monitoring of project progress. Utilizing project management software can aid in tracking tasks, deadlines and resource utilization. Overall, this allows you to meet customer expectations and build a reputation for reliability.  

6 - Communication breakdowns  

Clear and effective communication is invaluable to any business, and the roofing industry is no exception. Companies that fail to establish open lines of communication with customers, suppliers, subcontractors and their own workforce risk misunderstandings and project delays.  

Roofing companies should prioritize transparent communication by promptly addressing customer concerns. Keep your customers informed about project progress, and foster collaboration among team members. Regular communication helps prevent disputes, ensures everyone is on the same page and contributes to a positive overall customer experience.  

7 - Substandard project management 

What’s one of the biggest reasons why roofing companies fail in the first five years? Inadequate project management.  

Successful completion of roofing projects requires meticulous project management. Companies that lack a structured management approach often struggle with budget overruns, delays and poor-quality control. As a matter of fact, improper management affects each and every facet of your business, including the issues above.  

To address this challenge, roofing businesses should establish a clear project management framework that includes thorough project planning, risk assessment, cost estimation and regular progress monitoring. Effective project management minimizes the likelihood of unexpected setbacks and ensures that projects are delivered on time, within budget and to the customer’s satisfaction.  

How to avoid becoming one of these statistics 

The first five years of operation are critical for any roofing company’s survival and growth. By understanding and addressing the challenges that often lead to failure, entrepreneurs can increase their chances of success.  

By focusing on the issues above, roofing companies can overcome obstacles, deliver exceptional value and position themselves for long-term success in a competitive market. And there’s no better way to get ahead than by evolving alongside the industry.  

Roofing contractors are turning to management software to shore up their operations and processes. With the Leap platform, you can modernize your business, manage everything more effectively and win more jobs in the process.  

It’s the complete platform for every step of every project. In addition, Leap can handle all the needs of a growing roofing business, from your leads and sales to your workflow, tasks and production.   

Don’t let the painful process destroy your business. Do your estimates take too long? Is paperwork piling up? Are your schedules out of sync?  

These are a few of the reasons why roofing companies fail and go out of business. However, the Leap platform is built to grow alongside your business and do the heavy lifting for your operations. To learn more, fill out the form below and schedule your very own demo. Learn how Leap can turn your inefficiencies into your greatest strengths! 

Original article source: Leap