SummitPentagon Premier Roofing Business Plan

Investor-ready roofing contractor business plan: $736,000 capital, one crew to five, 290 replacements a year, Year 5 revenue $6.42m.

SummitPentagon Premier Roofing — roofing crew working a residential replacement

Business Plan & Investment Proposal · United States

Roofing Business Plan — United States

SummitPentagon Premier Roofing · Measured Against A 2.8% Industry Average.

Residential replacement, repair and light commercial roofing in the United States — one
crew in Year 1 growing to five by Year 5, completing 290 replacements a year, with commercial work added from
Year 3. $736,000 of capital expenditure, funded by $165,000 of owner equity, $965,000 of equipment finance, SBA debt
and lines of credit, and $346,000 of free supplier credit.

$736kCapital expenditure

5 crewsBy Year 5

$6.42mYear 5 revenue

5.2%Year 5 net margin

Read the executive summary →

Roofing is a high-revenue, thin-profit trade: the industry average net margin is
about 2.8 per cent, and this plan puts that number on its own cover rather than leaving a lender to supply it.
The case it then makes is that the gap between an average roofer and a profitable one is not price but overhead.
Gross margin improves modestly across the plan, from 31.8 to 35.4 per cent; overhead falls from
52.5 per cent of revenue to 27.1 as one crew becomes five and 33 replacements a year become 290. That second
movement is where almost all of the 5.2 per cent Year 5 net margin comes from. Two costs get their own
sections because they decide the outcome — insurance, which dominates the fixed base, and the certificate-of-
insurance exposure that subcontracting can quietly transfer onto the contractor.

The plan at a glance

Six measures that determine whether this contractor and its funding stand up.

5.2%Year 5 net marginAgainst a 2.8% industry average. Nearly double the sector norm is the claim the whole plan is built to defend.

$736kCapital expenditure over five years$165,000 owner equity alongside $965,000 of equipment finance, SBA debt and lines of credit.

$346kFree supplier creditTrade terms from material suppliers — the cheapest funding in the stack, and often the one roofers overlook.

35.4%Year 5 gross marginAgainst overhead at 27.1% of revenue. The gap between those two lines is the entire net margin.

290Replacements a year at Year 5From 33 in Year 1, delivered by five crews with light commercial work added from Year 3.

2.58xYear 5 debt service coverComfortable at maturity, but thinnest in the middle years when crews are being added faster than margin builds.

The benchmark the plan sets itself against

What the average roofing company earns, what this one intends to earn, and where the difference actually comes from.

2.8%Industry average net marginWhat most roofing companies actually earn. High revenue, thin profit — the sector’s defining problem, and the benchmark this plan names on its own cover.

against

5.2%This plan at Year 5Earned by holding gross margin at 35.4% while driving overhead from 52.5% of revenue down to 27.1%. The gap between those lines is the whole business.

Five years of trading

Revenue and EBITDA on the base case. Job volume and overhead absorption are the two assumptions that matter most, and both are stressed in Section 16.

Revenue build, and the crews behind it

Revenue follows crew count. One crew becomes five, replacements completed rise from 33 a year to 290, and light commercial work is added from Year 3.

Year 1

$0.54m · 1 crew

Year 2

$1.62m · 2 crews

Year 3

$2.96m · 3 crews

Year 4

$4.54m · 4 crews

Year 5

$6.42m · 5 crews

EBITDA and margin, Year 3 onward

Years 1 and 2 run EBITDA deficits of $110k and $63k while a single crew carries the overhead. Profit after tax turns positive in Year 4, a year ahead of EBITDA reaching scale.

Year 3

$40k · 1.4%

Year 4

$237k · 5.2%

Year 5

$532k · 8.3%

Why this plan works

The benchmark is named, not avoidedMost roofing companies earn about 2.8% net. This plan opens by saying so and then argues its way to 5.2% — which is a far harder thing to write than a projection with no reference point.

Overhead, not price, is the leverGross margin improves modestly from 31.8% to 35.4%. Overhead falls from 52.5% of revenue to 27.1%. The second movement is where almost all the net margin comes from.

Insurance is the cost that defines the tradeGeneral liability, workers' compensation and vehicle cover dominate a roofer's fixed base. The plan treats premium management as a strategic activity rather than an annual renewal.

The certificate trap is a real liabilityUsing subcontractors without current certificates of insurance transfers their exposure onto the contractor. The plan names this specifically because it is how profitable roofers are ruined.

Supplier credit is the cheapest money available$346,000 of free trade credit sits alongside the SBA debt and equipment finance. It costs nothing and is routinely under-used by contractors who go straight to a lender.

Financial snapshot

Four charts from the plan. The full set of twenty-four appears throughout the sections below.

Figure 3. Gross margin against overhead — the gap is the entire business.

Figure 4. Net margin against the industry benchmark.

Figure 18. Cash flow — operating cash turns positive in Year 3.

Twenty-two sections and five appendices. Every page carries full navigation, a section outline and links to the sections either side of it.

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Important NoticeBasis of preparation, data sources, forward-looking statement caveats and confidentiality terms. Please read first.

Appendices

Confidential. This document has been prepared in support of a funding proposal by
SummitPentagon Premier Roofing and may not be reproduced or distributed without written consent. Projections are forward-looking
statements based on the assumptions registered in Appendix C and are not guarantees of future performance.