Every small business owner has their own ‘special sauce’ when it comes to saving money in their business. Call it what you will – money best practices, carefully considered money tips, or ingenious tricks for responsibly saving money on jobs.
While it can be easy to put money saving strategies on the backburner when time is of the essence or when business is going well, knowing where and how to shave costs in your roofing business can be vital for your long-term success of as a small business owner.
So, let’s dig into some money-saving strategies that can help roofing small business owners achieve savings by making small, yet meaningful, adjustments to how they manage things like purchasing materials, labour costs, and technology.
Purchase your materials in bulk
Provided you have the money available and the space at your business premises, there’s no reason why you can’t bulk buy pallets of materials that you will use regularly on most of your roofing jobs. This includes essentials such as nails, flashing, and roof underlayment materials.
It can be much more cost-effective to stockpile such materials instead of buying them on a job-by-job basis. It’s good for your business and good for your wallet.
Consider your material and waste factors
When you are trying to quickly place an order for roofing materials and are estimating how much you will need for the job, it can be tempting to loosely determine how much of each material you will need. But this can come with its own risk.
If you need to quickly get an estimate for materials for a long-term recurring job, it can be tempting to negotiate with suppliers and lock in a predetermined bulk purchase price for a set period for the roofing materials in question. But no-one knows what will happen in the future, so it may be in your interest to also consider the possibility that things may not go to plan.
For example, your roofing business may lose that long-term job due to things that are outside of your control – such as a residential builder you are working with declaring insolvency. And in a case such as this, your roofing business may be required to meet the payment terms you agreed to with your supplier regardless. So it may be in your interest to carefully read the fine print before committing to any long-term agreement with suppliers.
Reduce your risk
There can be several things that may go wrong on any given day for a roofer. Your small business could be at risk if you damage a customer’s property or damage any of your roofing tools or equipment. However, reducing your risk via business insurance* for roofers can help you get back on the job as soon as possible.
You may also win new business by having roofers insurance, which can be a mandatory requirement on some commercial roofing jobs. Common types of business insurance for roofers include:
- Public Liability Insurance*;
- Portable Equipment insurance;
- Personal Accident & Illness Insurance; and
- Business Insurance.
Use your time on site efficiently
It is true that time is money – especially when it comes to busy trade small businesses such as roofers. This can be particularly true when it comes to labour costs. When there is not enough material on the job site, one of your team members will need to go offsite to pick up more roofing materials from suppliers. This can lead to costly delays and additional costs for your roofing business.
The flip side to that is that if you order too much stock, you will either have to cover the costs or pay someone else to return the excess roofing materials to the supplier you bought it from, who may or may not give you store credit in return.
While accurately estimating the roofing materials needed for each job can take time, it will generally save your business time and money long-term.
Consider the expectations you put on your team
Finding truly dedicated roofing professionals can be easier said than done.It’s more than simply looking for people who are seeking roofing work and seem capable of doing the job.
When building a roofing team, clearly define the expectations you have for your staff. Being capable of determining which candidates will be a great fit for your roofing small business and which candidates won’t be a good fit can make or break your business
Having the right people in your business will help you avoid communication issues, teamwork issues, and inefficient work practices, all of which can help ensure that your roofing jobs get delivered on time and to the satisfaction of your clients.
Have you considered a foreman?
While you are the boss and the business owner, that doesn’t necessarily mean that you have to manage every single function in your roofing small business. And with that in mind, appointing a foreman may make a world of difference in terms of freeing up some of your time to work on your business and not just work in your business.
A foreman can supervise and manage your team on a roofing job site. Their job is to engage with supervisors, vendors, colleagues and team members to ensure projects delivered on time and to specification. A foreman can also help manage the reputation of your roofing business, while also reassuring your clients that an experienced hand will oversee quality control on your roofing projects.
Roofing small business owners know well the risks they can encounter on job sites. But business insurance* such as insurance for roofers, sometimes referred to as roofers insurance, can help you to actively reduce your risk. Visit our dedicated insurance for roofers page to learn more about roofers insurance and to get your free insurance quotes in minutes.
*This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. © 2022 BizCover Pty Limited, all rights reserved. ABN 68 127 707 975; AFSL 501769.