![How to plan and track the budget of your roofing contracting service [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-6_ddc6bdef-71d1-4a16-bd00-6f9c27ca6d05.png?v=1715856600&width=1100)
If you don’t plan and track your roofing business budget properly, you're setting yourself up for failure.
When we developed our strategy pack for roofing contractors, we saw a lot of roofers struggling with finances and planning.
They were disorganized, had no grasp of cash flow, and were drowning in financial troubles despite having substantial revenue.
Don’t let this be you—stand out and succeed.
We’ve created a small, free tool to help you get started: our Budget Tracker and Planner. Let’s turn your roofing business's finances around and set you on the path to success!
Get the budget tracker tailored for roofers
Most roofers don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for roofers
Here is an example of a (very) detailed budget for a roofing business, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for office and storage space | $2,000 | $24,000 |
| Electricity | Power consumption for office and storage | $300 | $3,600 |
| Water | Water usage | $100 | $1,200 |
| Internet & Phone | Internet service and business phone | $150 | $1,800 |
| Waste Removal | Garbage and recycling services | $100 | $1,200 |
| Insurance | Property and liability insurance | $500 | $6,000 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Project Manager | 1 | $5,000 | $5,000 | $60,000 |
| Roofing Foreman | 1 | $4,000 | $4,000 | $48,000 |
| Roofers | 4 | $3,000 | $12,000 | $144,000 |
| Office Administrator | 1 | $3,000 | $3,000 | $36,000 |
3. Materials & Supplies
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Roofing Materials | Shingles, tiles, metal sheets, etc. | $10,000 | $120,000 |
| Tools & Equipment | Hammers, nail guns, ladders, etc. | $1,000 | $12,000 |
| Safety Gear | Helmets, harnesses, gloves, etc. | $500 | $6,000 |
| Vehicle Maintenance | Maintenance and fuel for company vehicles | $800 | $9,600 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $300 | $3,600 |
| Social Media Management | Managing social media accounts | $500 | $6,000 |
| Print Advertising | Flyers, posters, newspaper ads | $200 | $2,400 |
| Website Maintenance | Hosting, domain, updates | $100 | $1,200 |
| Email Marketing | Email campaigns and newsletters | $150 | $1,800 |
| Promotional Events | Special events and promotions | $200 | $2,400 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of tools and equipment | $300 | $3,600 |
| Uniforms | Staff uniforms and safety gear | $200 | $2,400 |
| Licenses & Permits | Business licenses, permits, etc. | $100 | $1,200 |
| Office Supplies | Stationery, pens, printer ink, etc. | $100 | $1,200 |
| Staff Training | Training programs and materials | $200 | $2,400 |
| Contingency Fund | Emergency repairs and unexpected costs | $500 | $6,000 |
Some roofers make 5x more profit than you!
We have studied the strategies of the best roofers in the world. Replicate them now!
What are the biggest expenses for a roofer?
Be careful with these pitfalls. Here are five major costs every roofing contractor needs to consider, along with some tips on how to manage them wisely.
- Material costsThese can take up a significant portion of your budget. You're dealing with materials like shingles, underlayment, and flashing, and prices can fluctuate based on market conditions, supply chain issues, and quality. To keep these costs in check, focus on bulk purchasing, negotiate better prices with suppliers, and minimize waste. Finally, it's easy to overspend by buying too much or opting for premium materials that don’t add enough value.
- Your roofing crewYour team is your backbone, but paying for their wages, benefits, and training can be expensive. This cost is always high because you need a skilled crew to provide quality service and keep projects on schedule. You can optimize labor costs by scheduling efficiently, cross-training your crew, and monitoring productivity. However, be careful not to underpay or overwork your team, as this can lead to high turnover and poor workmanship.
- Equipment and toolsHigh-quality tools and equipment are essential for any roofing job, but they can be costly. To optimize these costs, invest in durable, multi-functional tools and maintain them regularly to avoid costly replacements. Overspending often happens when you buy specialized equipment that you rarely use or opt for the latest high-tech gadgets that don’t significantly improve efficiency.
- Insurance and permitsInsurance is crucial for protecting your business, but it can be pricey. Permits are also necessary for compliance with local regulations. Optimize this expense by shopping around for the best insurance rates and ensuring you only apply for the permits you need. Overspending can happen if you over-insure or fail to negotiate better terms.
- MarketingYou need to get the word out about your roofing services, but advertising can be expensive, whether it's online ads, social media campaigns, or traditional media. Optimize this expense by focusing on cost-effective methods like the ones we give in our pack. Overspending can happen if you invest in flashy campaigns without a clear return on investment.
How to spend less with your roofing contracting service?
Here are practical tips to help you, as a roofing contractor, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Material Costs | Partner with local suppliers for bulk discounts on roofing materials. |
| Labor Costs | Implement a scheduling software to optimize crew hours and reduce overtime. |
| Utilities | Install energy-efficient lighting and equipment in your office and warehouse. |
| Marketing | Run social media contests for your roofing services and collaborate with local influencers for free exposure. |
| Tools and Equipment | Train staff on the proper use and maintenance of tools to extend their lifespan. |
| Vehicle Maintenance | Set up a maintenance log for regular vehicle checks and servicing. |
| Rent/Mortgage | Negotiate lease terms during renewal or consider moving to a less expensive location. |
| Insurance | Regularly review insurance policies to ensure they meet current needs and compare rates annually. |
| Safety Gear | Invest in high-quality, durable safety gear to ensure worker safety and reduce replacement costs. |
| Software | Choose project management software that offers essential features with low subscription fees and integrates with other systems. |
| Staff Training | Conduct regular in-house training sessions and use free online resources. |
| Waste Management | Implement a waste tracking system to minimize material waste and recycle where possible. |
| Technology | Invest in multi-functional tools and utilize roofing management software for project tracking and client communication. |
| Office Supplies | Purchase supplies in bulk and go paperless where possible with digital order systems. |
| Inventory Management | Use inventory management software to track stock levels and reduce material spoilage. |
| Pest Control | Schedule monthly pest control services and maintain cleanliness standards in your warehouse to prevent infestations. |
| Uniforms | Choose durable, easy-to-clean uniforms and offer staff a stipend for maintenance instead of using an external service. |
Copy the tactics of the best roofers in the world!
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Expenses that are just useless for a roofer
Yes, some expenses for your roofing business are just unnecessary. They don't contribute to increasing revenue or improving customer satisfaction.
| Roofing Expense | Reason It's Useless |
|---|---|
| Luxury Office Space | High-end office spaces don't attract more clients and can be a significant drain on your budget. |
| Premium Vehicle Brands | Unless you are targeting a high-end market, most clients are satisfied with reliable, mid-range vehicles. |
| Excessive Tool Inventory | Having more tools than necessary increases storage costs and can lead to unused equipment. |
| Top-of-the-Line Software | Expensive software with features you don’t use is a waste of resources. |
| Traditional Advertising | Paper ads often have a lower return on investment. Focus on digital marketing instead. |
| Multiple Uniform Styles | Having various uniform styles increases costs without adding significant value to the customer experience. |
| Overstaffing | Having more staff than necessary leads to higher labor costs without necessarily improving service quality. |
| Premium Subscription Services | Expensive subscriptions for industry magazines or services often go unnoticed by clients. |
| Exclusive Materials | Using rare materials can inflate costs and complicate supply chains. |
| High-End Office Furniture | Luxury office furniture is not always appreciated by clients and can be a significant expense. |
| Custom Printed Stationery | Personalized stationery is a minor detail that most clients overlook, and it can be expensive. |
| Unnecessary Software | Paying for software with features you don’t use is a waste of resources. |
| Premium Water Brands | Most clients are content with filtered tap water, making expensive bottled water unnecessary. |
| Extra Service Vehicles | Maintaining a larger fleet than needed increases operational costs. |
| Excessive Membership Fees | Paying for multiple industry memberships often yields little benefit. |
| Overly Frequent Renovations | Constantly updating office decor and layout can be costly and disrupt operations. |
| Expensive Office Decorations | Elaborate decorations are often ignored by clients and add to the cost. |
| High-End Office Supplies | Luxury office supplies are prone to damage and expensive to replace, often going unnoticed by clients. |
| Excessive Staff Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Expensive Marketing Materials | Frequently redesigning marketing materials is costly and often unnecessary. |
| Unused Promotional Materials | Ordering more promotional items than needed leads to waste and unnecessary expense. Get our marketing budget planner template. |
| Paid Directory Listings | Many free listing options are available, making paid listings often redundant. |
| High-End Roofing Equipment | Specialized roofing equipment is often unnecessary and adds to costs without a proportional benefit. |
Stop working with a tight budget for your roofing contracting service!
Managing a budget for a roofing business when funds are tight can feel like a nightmare. It's like being trapped in a situation where any unexpected expense can overwhelm you.
This constant pressure makes it nearly impossible to invest in growth projects, leaving you always chasing after expenses. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, scraping together pennies and barely making ends meet. But there's another part of the equation you might be overlooking. Instead of just trying to cut costs, you can focus on growing your revenue. More income means more breathing room and more money to invest in your business.
And no, you don't necessarily have to spend money to grow. There are plenty of zero-cost initiatives and strategies that can help you increase your revenue by 10%, 20%, or more. We've detailed all of these strategies in our guides, after studying dozens of roofing businesses just like yours. Get them now!
Make your roofing contracting service more profitable
We have studied the strategies of the best roofers in the world. All their tactics are explained in our pack!
