Important Notice

Jump to section

• Overview & contents
• i. Important Notice
• 1. Executive Summary
• 2. Why Most Roofing Companies Fail to Make Money
• 3. Insurance Is the Defining Cost
• 4. The Economics of One Roof
• 5. SWOT and Competitive Position
• 6. Customer Acquisition
• 7. Service Mix and the Commercial Question
• 8. Crews, Subcontractors and the Certificate Trap
• 9. Funding: SBA and What Beats It
• 10. Working Capital
• 11. The Five-Year Build and Its Gates
• 12. Licensing, Bonding and Compliance
• 13. People and Production
• 14. Financial Projections
• 15. Break-Even
• 16. Sensitivity and Scenarios
• 17. Risk Management
• 18. Implementation Timeline
• 19. Returns
• 20. Key Performance Indicators
• 21. Key Assumptions
• 22. Conclusion
• A. Appendix A: Consolidated Financial Summary
• B. Appendix B: Capital Schedules
• C. Appendix C: Funding and Debt Schedules
• D. Appendix D: Risk Register
• E. Appendix E: Glossary

This business plan has been prepared for SummitPentagon Premier Roofing, a residential replacement, repair and light commercial roofing contractor proposed for the United States, in support of $165,000 of owner equity and the debt and supplier facilities described in Section 8.

Basis of the figures. Every figure derives from a single model driven by crews, replacement jobs completed, average ticket, gross margin by service line and the overhead build. The income statement, balance sheet and cash flow statement are fully articulated: the balance sheet is derived rather than plugged and balances to the dollar in every year, owner’s equity rolls forward from the equity contribution and retained earnings, and the closing cash position reconciles exactly to the cash flow statement.

Finance cost. Interest and principal derive from facility-level schedules across nine instruments: an SBA Microloan, five equipment finance tranches, two line of credit draws and an SBA 7(a) term loan for the Year 3 expansion. The line of credit draws revolve rather than amortising, which is how such facilities operate. Together they reach $88,000 of interest in Year 5.

Taxation. United States federal corporate income tax is applied at 21 per cent on taxable profit, with net operating losses carried forward subject to the 80 per cent limitation on post-2017 losses. Because that limitation caps the offset at 80 per cent of taxable income, $3,000 of federal tax arises in Year 4 and $15,000 in Year 5 despite $30,000 of loss carryforward remaining. State income tax varies materially by jurisdiction and is not modelled; a contractor should add it to the Year 4 and Year 5 figures.

Break-even. Break-even is stated on two bases: on the fixed cost base alone at $4.41 million, and including the $88,000 of finance cost at $4.74 million. The second is the operative measure and it gives a margin of safety of 26.2 per cent rather than the 31.4 per cent a cost-only calculation implies. Sales commission and workers’ compensation are treated as variable because they scale directly with jobs sold and crew payroll; marketing is treated as fixed because it is committed ahead of the revenue it produces.

Supplier trade credit. The largest working capital facility in this business does not appear in the funding table, because it costs nothing and is never drawn. Distributor terms run from 30 days to 52 days and by Year 5 fund $346,000 of materials at no interest. Section 9 sets out how it is obtained and how it is lost.

Market and insurance data. Industry size, contractor counts, margin benchmarks and workers’ compensation rate ranges in Sections 2, 3 and 11 are drawn from published industry research, NRCA material and NCCI classification guidance current to 2026. Workers’ compensation rates vary enormously by state and a contractor should obtain a quotation rather than rely on any published range.

Confidentiality. This document is delivered in confidence to the named recipient. It may not be reproduced or circulated in whole or in part without prior written consent.

Contents

1. Executive Summary 4

2. Why Most Roofing Companies Fail to Make Money 7

3. Insurance Is the Defining Cost 10

4. The Economics of One Roof 12

5. SWOT and Competitive Position 14

6. Customer Acquisition 17

7. Service Mix and the Commercial Question 19

8. Crews, Subcontractors and the Certificate Trap 21

9. Funding: SBA and What Beats It 22

10 Working Capital 27

11 The Five-Year Build and Its Gates 29

12 Licensing, Bonding and Compliance 31

13 People and Production 32

14 Financial Projections 34

15 Break-Even 39

16 Sensitivity and Scenarios 41

17 Risk Management 44

18 Implementation Timeline 46

19 Returns 48

20 Key Performance Indicators 50

21 Key Assumptions 51

22 Conclusion 53

A. Appendix A — Consolidated Financial Summary 54

B. Appendix B — Capital Schedules 55

C. Appendix C — Funding and Debt Schedules 57

D. Appendix D — Risk Register 60

E. Appendix E — Glossary 62