SummitPentagon Premier Roofing Business Plan — The Five-Year Build and Its Gates
The build from one crew to five and 290 replacements a year, and the performance gate each crew addition must clear.
The Five-Year Build and Its Gates
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- 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
|
Year |
Crews |
Focus |
Gate before adding the next crew |
|---|---|---|---|
|
1 |
1 |
Owner sells and runs production. Supplier accounts and consumer finance established. |
Existing crew booked four weeks ahead for three consecutive months; gross margin above 30% on completed jobs |
|
2 |
2 |
Second crew. First dedicated salesperson. Referral engine built. |
Cost per sold job below $1,375; certificate tracking system operating; EBITDA loss narrowing |
|
3 |
3 |
SBA 7(a) drawn. Commercial line entered. Kitchen of systems put in place. |
EBITDA positive; two years of financial statements; debt service cover above 1.10x |
|
4 |
4 |
Fourth crew. Supplier terms extended to 48 days. Job costing weekly by crew. |
Overhead below 30% of revenue; net margin positive |
|
5 |
5 |
Fifth crew. Supplier terms to 52 days. Management layer complete. |
Negative net working capital achieved; debt service cover above 2.0x |
|
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|
|---|---|---|---|---|---|
|
Crews |
1 |
2 |
3 |
4 |
5 |
|
Gross margin |
31.8% |
32.8% |
33.8% |
34.6% |
35.4% |
|
Overhead as % of revenue |
52.5% |
36.6% |
32.4% |
29.4% |
27.1% |
|
Cost per sold job |
$1,576 |
$1,375 |
$1,385 |
$1,345 |
$1,303 |
|
EBITDA, $’000 |
(110) |
(63) |
40 |
237 |
532 |
|
Net margin |
-26.7% |
-8.3% |
-2.9% |
1.5% |
5.2% |
|
Debt service cover |
n/m |
n/m |
0.36x |
1.31x |
2.58x |
|
Closing cash, $’000 |
45 |
57 |
200 |
264 |
520 |
11.1 Why the gates are operating conditions
Every gate is expressed in gross margin, cost per sold job, overhead ratio or booking depth rather than in revenue. A business that reaches $2.96 million in Year 3 with a 30 per cent gross margin and 38 per cent overhead is a larger version of a loss, and adding a fourth crew compounds it across a bigger payroll.
The Year 2 gate on certificate tracking is the one most easily dismissed as administrative. It is not: Section 8 sets out why an uncertified subcontractor becomes your payroll at the workers’ compensation audit, and at Year 5 scale a single uncertified crew is worth roughly $29,000 of unbudgeted premium assessed after the jobs are already sold. A system that blocks payment without a current certificate costs nothing and prevents a loss that cannot be recovered.