Here’s the harsh reality:
80% of roofing contractors will fail in roofing business. Often in less than 2 years.
Worse, 95% will be out of business within 5 years of opening their doors
That’s despite the fact that we live with an abundance of information,
says Roofing Insights CEO Dmitry Lipinskiy.
You have colleges, universities, online education, and classes that come to your town on a regular basis.
Yet, no matter how many resources out there try to save contractors from impending doom, there are still going to be too many who crack under the pressure that being an owner in the roofing industry brings.
To discover why this occurs, here now are 5 reasons contractors go out of business:
1. Not keeping customers happy
All these “gurus” out there who claim becoming a successful contractor is easy have no clue what they’re talking about.
It’s easy to sell roofs.
Heck, it’s even easy to install them.
But it’s not easy to make sure customers are satisfied every step of the way.
Selling is actually not the hardest part. Selling and maintaining the customer’s happiness is the hardest part,
says Lipinskiy, noting how many contractors are horrible at building relationships and following up on warranty calls.
This affects their Google reviews, which for all intents and purposes is the backbone of any successful roofing company.
Your business is not what you think your business is. It’s what Google thinks your business is.
2. Ego not allowing contractors to delegate
Stop trying to do everything yourself!
Instead, focus on creating a process that can make your business run smoothly even when you’re not around.
If you think you’re the only one who can do quality [work], you should not be in business,
says Lipinskiy, who then explains how at McDonald’s the process is so good, literally anyone can work there, and the system will still be successful.
This is rarely the case for roofers because many contractors refuse to get out of their own way.
Unfortunately, that mentality will only lead to the catastrophic failure of the business.
3. Dwelling on failures
As a business owner, you will fail and get the short end of the stick.
Lipinskiy himself has lost over $200,000 to theft alone.
The good news?
His system is so good, that despite being ripped off by crooks, he still turns a profit every year because he has the foundation and resources to absorb losses.
Beyond theft, things will still happen that will threaten the success of the business, but Lipinskiy urges business owners to look past those negative moments.
Mistakes will happen, and you have to have very thick skin to be in business,
4. Being a jerk
It doesn’t matter how good your process or workmanship is if no one is willing to work for you.
People don’t want to work for jerks, and by being a toxic individual who makes people routinely feel uncomfortable, it will only make your business suffer in the long-term.
Working on personality and your leadership skills is probably the hardest thing you will have to do in business,
You can be the hardest working guy out there, or a genius, but if you don’t learn how to smile, if your personality is your way or the highway, I have news for you: you will be out of business.
5. Not saving enough money
Seeing $100,000 in your bank account is not the same thing as having $100,000 in your bank account.
Because there will always be surprise bills that come around, or other expenditures that will need to be paid in order to elevate your business.
Ergo, buying a new $40,000 truck is a quick way to ensure that when a surprise bill from worker’s comp shows up, you won’t be able to pay it.
Please stop hemorrhaging your bank accounts for needless toys.
A new F-150 is not an investment in your business.
You know what is?
It’s investing in your people, it’s buying an office, it’s buying computers, safety gear. It’s buying stuff, not for yourself, but for the business,
Think you have what it takes to run a successful business?
Come to the Roofing Process Conference this December 3-4 in gorgeous Orlando, Florida, and learn how you can become the owner of a long-lasting and successful roofing company!