SummitPentagon Premier Roofing Business Plan — Key Performance Indicators

The job margin, crew productivity, lead conversion and cash indicators monitored weekly, with intervention thresholds.

Key Performance Indicators

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The following are the operating measures on which this plan should be managed. Three of them — gross margin on completed jobs, overhead as a share of revenue and cost per sold job — carry more information about the health of this business than any revenue figure, because revenue rises with crews whether or not the business is working.

Indicator	Definition	Target	Why it matters
Gross margin on completed jobs	Job revenue less materials and crew labor, per job	Above 35.4% by Year 5	Costed weekly against the estimate; one point is $64 000
Overhead as a share of revenue	Total overhead ÷ revenue	Below 27.1% by Year 5	The gap between this and gross margin is the entire business
Cost per sold job	Marketing spend ÷ replacements sold	Below $1 303 by Year 5	Never cost per lead; the two point in opposite directions
Crew booking depth	Weeks of confirmed work ahead	Four weeks before adding a crew	The gate condition on every crew addition
Workers’ compensation rate	Premium ÷ crew payroll	16.0% by Year 5	Driven by experience modification; a fall claim resets it
Days sales outstanding	Receivables ÷ revenue × 365	10.7 days by Year 5	Falls as consumer-financed share rises to 55%
Supplier days	Payables ÷ materials × 365	52 days by Year 5	Paid exactly to terms; the line grows on behaviour, not statements
Certificate compliance	Subcontractors with current certificates on file	100%	A lapsed certificate becomes your payroll at audit
Close rate by channel	Sold jobs ÷ estimates presented, by source	Rising	Speed to lead under five minutes lifts close rates 20 to 35%
Debt service cover	EBITDA ÷ interest and scheduled principal	Above 1.10x from Year 3	The SBA 7(a) requirement on loans of $350 000 or less

Two numbers, weekly, on one page

Gross margin on completed jobs and cost per sold job. Everything else in the table above is either a consequence of those two or a compliance obligation. Gross margin on completed jobs — not on estimates, and not on the jobs that went well — tells the owner whether the work is being priced and executed at the level the plan assumes; one point is $64,000. Cost per sold job tells them whether the pipeline that fills the crews is being bought at a price the margin can carry; two hundred dollars is $58,000. Both take an hour a week to compute from data the business already generates, and the published evidence is that shops which do this run four to seven points higher on net margin than shops which do not. On a plan whose Year 5 net margin is 5.2 per cent, four to seven points is the entire business.

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