fbpx

text us: 612-254-9849

text us: 612-254-9849

More
    Roofing Online Business School
    Our school will teach you everything you need
    to know about the roofing business
    Roofing process conference
    December 3rd - 4th, 2020
    The Rozen Plaza
    9700 International Drive, Orlando, FL 32819

    How to Make $1 Million in Roofing Business: Sales, Profit, Debt, Value

    Sales, Profit, Debt, Value

    1. $1M Sales

    According to Dmitry, grossing $1 million dollars in a fiscal year is quite attainable. Consider, that you would only need to land two contracts a week, at $10,000 per job to be on pace for $1 million in sales. In the roofing industry, it’s not crazy to think that’s possible. But there is more to being successful than simply grossing $1 million in a year.

    2. $1M Profit

    Notice the distinction between numbers 1 and 2. Sales and profit. Your sales are not your profit. If we take the $1 million in sales example from the above section, our profit comes out to roughly $70-130,000 per year. That’s because your profit should range from 7-13% on each job, depending on factors such as overhead and your investment into the business. If you’re not netting at least 7-13%, you need to redo your numbers and quote bids that will make you profitable.

    3. $1M Debt

    As with any type of loan, there is good debt, and bad debt. You obviously want the good debt because that means you have a means to pay that debt off. This typically comes in the form of receivables, or money that you have coming back to you. Be mindful of debt you owe to suppliers. Dmitry knows many contractors who lack the financial understanding it takes to properly assess their debt versus income, and it ends up costing them their business.

    4. $1M Savings

    Count your pennies. Do this by using rebates, buying in bulk, or anything that can save your company money over the long haul. It’s important to note that sacrificing the quality of your work to save money is not an option. Saving money happens when you have a heady financial team in place that can spot deals and trends. This is not necessarily common sense either. Shop around, check your inventory, and do the little things to find gaps in your budget where maybe you are spending too much.

    5. $1M Value

    Invest, invest, invest. Make your business fully functional, to the point it can run without you. Whether your goal is to sell your business or pass it down to your children, it’s important to have a system in place that can keep making your business money. This takes time to develop and perfect, but once you reach that point, you’ll be happy with the rewards.

    Dmitry Lipinskiy
    Host of Roofing Insights YouTube channel CEO of Storm Group Roofing Founder of Roofing Business School

    Recent Articles

    Roof Repair King with Mike Holmes

    Dmitry Lipinskiy and Roofing Insights recently hosted Mike Holmes, the owner of Repair King, a company located in Minneapolis.The two dished on...
    Roofing Online Business School
    Our school will teach you everything you need
    to know about the roofing business
    Roofing process conference
    December 3rd - 4th, 2020
    The Rosen Centre Hotel
    9840 International Dr, Orlando, FL 32819

    Leave A Reply

    Please enter your comment!
    Please enter your name here

    Join the Roofing Community