Did you know that the NUMBER ONE reason why roofing companies go out of business is because owners jump the gun on trying to scale and grow before they are ready?

It’s unfortunate… but it’s true.

Most people think it has to do with mismanagement of funds or just poor ownership…

But, in reality, it has to do with simply being unprepared to make the jump.

If you are ready and excited to scale and grow your roofing company this year…

And you feel like you have everything lined up and ready to go…

That is awesome. I am thrilled for you, and I wish you the highest levels of success.

But before you get out there and make 2018 the year you look back on and say “Damn – so that’s where it all began!”…

I want you to consider something. And I speak from experience.

If you overlook just ONE of the core areas of your business (and there are 7)….

This could be the year that you fail.

Do not get me wrong, I’m not trying to scare you or trying to convince you to be happy where you are.

I’m just trying to save you from the mistakes I’ve made. They are painful. They are not fun. And they will cost you a fortune.

“You must learn from the mistakes of others. You can’t possibly live long enough to make them all yourself.”
-Samuel Levenson

If just one of you listens to my advice…

Before hiring that new sales rep or opening the next location…

And avoids the pain that I had to go through…
Then I’ve accomplished my goal.

In this article, I am going to share with you 7 reason why to NOT scale your roofing company in 2018.

Let’s get to it…

1. You have a weak brand and “ok” marketing

Just like the engine of a car, you need FUEL to get your company moving. In your roofing company, that “fuel” is marketing. Marketing consists of 2 major pieces; branding and leads. If your brand doesn’t say “WOW” when you pull up to a house, start there. First impression is everything when you are swimming in the “shark tank” with a lot of other roofing companies. If your brand is solid but your ability to generate leads is not predictable, sustainable, and reliable (no, door knocking is not ANY of those three), then you need to start there.

If either one of these components are missing and you cannot walk into another market confident in your brand to get immediate recognition or your leads to start flowing from day one, you are NOT ready to scale.

2. Your “sales team” isn’t really a sales team

Take a quick inventory of your sales team. Do you even have a “team?” What do they do all day? Are they producing daily? Do you have some guys that bring down the others?” Are they people you would leave your kids with? Would you trust your girlfriend or wife to vacation with them? Do you REALLY have the team you desire?

If even ONE of the answers to these questions is “no,” before you even THINK about scaling to the next level, you need to stabilize the team of people who are going to representing your company in the field.

Most roofing companies hire sales reps with a very “broken” vetting process. Heck, some guys even hire them with NO vetting process. Yet, for some reason, those same guys think that hiring anyone that “claims” to be a sales rep and filling their company with “bodies” is the best way to make the most money in the shortest amount of time.

Want to know the NUMBER TWO reason why roofing companies go out of business…

Re-read that last paragraph.

3. Your operations are unorganized and lack structure & systems

Thinking that your “Aunt Mary” and your cousin, “Flo,” can manage the volume of files/jobs your sales team creates, just because you know and trust them, is like allowing your dog to drive your car. It literally makes NO sense.

Maybe your operations team is not made up of your family, and even worse, it is made up of someone you hired from a resume, again, because they said “I can do the job.”

If you find yourself in a CONSTANT place of having to follow up with them or you feel like your day is FULL of micromanaging them because you they just seem to be more concerned about who just posted on Facebook, then your operations team is NOT ready.

Let’s say, just for fun, that your operations team feels pretty solid. Here are some things you want to ask yourself just to make sure…

Is your operations team in full control of the workflow to the extent that they can move files without your involvement? Can you leave your office for a month and not have to worry about systems or processes breaking down? Can you see from a computer/phone/tablet exactly what is going on (from a financial and activity standpoint)?

If the answer is NO to any of these, you are NOT ready to scale.

4.Your production team is NOT ready

If your first question on this was, “what is a production team…”

Move directly to #5.

For the rest of you, having a PROVEN system of producing jobs means that someone (or a group of someone’s) is responsible for making sure your jobs are built correctly and your clients are excited about the finished product. But, when your team is composed of a make shift team that manages jobs using paper folders and faxed copies of job orders, it might be time to take a look at “leveling up” your production team.

Why?

In a “scalable” model, most companies can have a CORE production team that schedules and manages jobs from a central location, using support people on the ground at each remote location. That requires systems and processes as well as strong technology and communication.

Attempting to scale without having that in place means that you will need (or you will be) a full time production unit at each location. Can you say “spread thin?”

5.Your leadership team is NOT ready

There are 5 main components of leadership in each roofing company. Most owners we talk to cannot identify them, let alone, hire, train, and develop them.

That means that the owner is left to be the sole leader and anytime an owner is left to work “IN” the company instead of working “ON” the company, the company runs a 73% chance of failure due to “burn-down syndrome” or “hyper-scarcity” mindset issues.

In essence, having the key leadership in place allows for the owner to provide the vision and directionality of future expansion. It also allows ownership to develop other locations and leaders for that location so that the business can continue to grow and scale.

No leadership team in each of the 5 main areas?

No scale.

6. Your cash flow is NOT ready

Financial mismanagement is the NUMBER THREE reason roofing companies fail.

A staggering statistic was released in 2011 that showed only 15% of all roofing companies operate from a budget. That means that an alarming 85% of all roofing companies are likely mismanaging or misappropriating money in their company. That directly affects how forecasting is handled, how saving is handled, and how payments are made to subcontractors and suppliers.

On top of that, many companies experience “bottlenecking” of cash flow as a result of operating without appropriate systems to keep the cash moving. This alone can be dangerous as it can create the ever familiar “robbing Peter to pay Paul” scenario, which in time, could land someone in jail.

Cash flow management is no joke. Above all else, if your cash flow management is lacking and you try to scale or head to another storm to work in an attempt to try to “fix it,” you are likely to compound your problems.

Your best bet…

Fix your “flat tire” before you decide to keep going down the road.

7.You are mentally/physically/emotionally NOT ready

Owning a roofing company is not for the weak minded, the physically weak, or the emotionally weak. Many people see this as an “easy” way to make some big money but they do not realize the toll it takes on people.

I have seen the mental effects on men who later committed suicide. I have seen the physical effects on men who later had heart attacks due to stress. I have seen men emotionally melt down under the pressure and sedate with drugs and/or ruin their marriages.

Staying “sharp” in all these areas and caring for YOURSELF is CRUCIAL!! If your daily routine does not consist of SELF CARE, you are likely on the verge of a major “burn out” (if it has not happened already.)

The SMASH Co is the company roofing companies are choosing when it comes to preparing to scale. If you are planning to grow soon, we can help make every area of your company “air tight” against the elements to prevent explosion or implosion.

If you feel like all the areas of your company are in top-notch working order and you just want our expertise in one area, we can do that, too. We own a full-scare recruiting agency and we are happy to discuss adding leadership and sales-reps to your team, whenever you are ready.

Are you ready to schedule your FREE 30 MINUTE evaluation session with us? Let us check the health of your roofing company and give you a report card on where your company is today.

DOWNLOAD THIS CHECKLIST TO SEE IF YOU ARE READY TO SCALE YOUR COMPANY