Words of Wisdom on Protecting Your Business Post-COVID

By Dale Nelson, Roof Hugger. 

Roof Hugger President Dale Nelson gives advice to the roofing and construction industry to take advantage of the post-COVID market without getting burned.  

Wow, has it been crazy around here lately. It would seem the pent-up demand created by the COVID lockdown, simmering for several months now, looks to be reaching the boiling point. Prices are rocketing and availability has dropped like a rock. As is typical, government always appears to be the last to know. For those of us in the real world who have seen this before, we know now is the time we need to take advantage of the demand while doing our best to keep ourselves from being burned.   

Protect your business; as an “Old Seasoned Guy” a couple of thoughts come to mind:   

• Look closely at your proposal language. You cannot afford to have a quote hanging out there for 30-45 days. Things are changing too fast. Decide what is reasonable by talking with your suppliers and sub-contractors and qualify your quotes to a specific time period, subject to review after a "Date Certain." For a time in the 70s we actually had to qualify our general construction quotes to three days. It was all we could lock in from our “team” of subs and suppliers.   

• Talk with your customer before signing. Make sure they understand that lead times may be extended and construction schedules may be difficult to maintain. Explain you will do your best, however, some situations are completely out of your control. If you are in a deadline type contract, read it very carefully first and understand your exposure. Once your deal is signed, get your PO’s out quickly to your “team” so they can lock in their supplies and schedule.   

• Only take on what you can control. Signing up projects is easier than normal right now but failure to perform on a project can be catastrophic financially to you and to your reputation.  

• Assuming you are running your business profitably and at a significantly higher volume than usual, think about how to protect those profits. Now is the time to setup the 401-K’s or Defined Benefit Plans. These plans can be tricky and take months to implement properly. DO IT NOW.  

• Add debt carefully, pay cash when you can and take stock of your key people. Today’s economic climate will change and when the pendulum swings back, as it always does, you will need to dial things back quickly and decisively. Hang on to that extra overhead too long and you give back all that you worked so hard to earn. (Man…did I hate learning that lesson!)  

• Finally, observe your company’s strengths and weaknesses. Look for that niche that works best for you and focus on it when you can. This economic climate is not the new norm but rather a blip that will pass, stay flexible and enjoy while it lasts. Retrofit continues to be a wonderful, quick turnover and profitable business for those involved. We will continue to do our best to keep you supplied and competitive but, like everyone else, we are experiencing longer lead times for our raw material and weekly price fluctuations. 

Success to all and thanks for using Roof Hugger.   

Dale Nelson, President. 

Learn more about Roof Hugger in their RoofersCoffeeShop® Directory or visit www.roofhugger.com.