Starting your own local roofing business? Congrats on making one of the biggest decisions you’ll ever make. It’s a lot, but if you’re planning ahead and surrounding yourself with experienced, trustworthy folks, you’ll do just fine.
Fact is, running a roofing business isn’t just about knowing shingles, slopes, and sealants. Now you’re dealing with contracts, suppliers, CRMs, and customer expectations.
And you’re the one responsible for it all — there’s nobody else to hide behind.
There are plenty of “how to start a roofing business” guides out there already (including our own), but a lot of them… aren’t great. Too technical, too abstract. Especially if you came up as a roofer, not a business major.
If you need a roofing business 101 course in a hurry, you’re in the right spot. We’ll walk you through the ten must-know roofing business terms that’ll come up again and again as you launch your business.
Let’s get into it.
1. Roofing distributors (your new best friends)
Your relationships with suppliers can make or break your jobs. Roofing distributors are where you’ll buy your materials. Shingles, underlayment, fasteners, all of it.
Chances are high you’ll be working mostly with one of the big three:
- ABC Supply – North America’s largest wholesale distributor.
- QXO (formerly Beacon) – Nationwide network with a solid reputation.
- SRS Distribution – Known for competitive pricing and distinct local brands.
You’ll want to start conversations and build strong relationships early. Having a good supplier can save your ass when timelines get tight.
2. Net vs. gross profit (don’t mix these up)
One of the first finance lessons any business owner needs: gross profit and net profit are not the same, but each one has their place.
- Gross profit: What’s left after subtracting the direct costs of completing jobs (materials + labor) from your revenue.
- Example: You make $900k this year. You spend $500k on shingles and labor. Your gross profit = $400k.
- Net profit: What’s left after everything — taxes, insurance, gas, equipment, admin costs, you name it.
- Continuing with the example above, if overhead and taxes total another $300k, your final net profit = $100k.
Gross tells you how efficiently you’re running jobs. Net tells you what’s actually hitting your bank account (and if your business is profitable, which… is kind of key).
3. Forecasting (not the weather)
Budget forecasting just means planning ahead. You’re estimating future revenue and expenses based on trends, seasons, and goals.
For example:
- If storm season usually brings in an extra $100k in jobs, plan your crew and cash flow around it. Just be realistic and plan for the worst-case scenario, not the best-case one.
- If your busiest months are May through August, don’t overspend in March and be short on payroll come summer.
They’re different, but kind of the same, actually — treat forecasting like weather prep. Better to plan ahead for the storm than get caught in it.
4. CRM (customer relationship management)
If you want to grow beyond doing everything manually, you need a CRM. It’s your digital command center for managing leads, tracking jobs, and keeping everything organized.
Roofr’s CRM, for example, lets you:
- Store customer info
- Send “wow” proposals
- Schedule and track jobs
- Automate follow-ups
- Order materials
- Invoice and collect payments
Basically, a CRM helps you manage everything in one place. It makes you faster and more professional, which means a better reputation (and more revenue).
If you’re relying on sticky notes, you’ll hit a wall. Do your research, start using a reliable CRM early, and save yourself the headache later.
5. Balance sheets and P&Ls (your financial snapshots)
Accounting jargon can be pretty rough. You’re not crazy — it often feels like these terms are confusing on purpose. Food for thought there.
But no matter how you feel, it’s time to get comfortable talking about money. You’ll at least need to know this stuff:
- Balance sheet: Shows what your business owns (assets), what it owes (liabilities), and the difference (equity).
- Profit & Loss (P&L) statement: Tracks revenue, expenses, and profit over a specific period of time.
Think of the balance sheet as a photo of your business at one moment in time. The P&L is more like a highlight reel showing performance over weeks, months, or years.
6. LLC vs. S-Corp vs. Sole Proprietorship
Choosing the right business structure is a big early decision:
- LLC (Limited Liability Company): Popular with small roofing businesses. Protects your personal assets if something goes wrong, and can make getting loans easier.
- S-Corp: A bit more complex, but can have tax advantages once you’re making serious revenue.
- Sole Proprietorship: Simplest structure, least paperwork. But you’re personally on the hook for debts and lawsuits.
Talk to your accountant before choosing. Getting this right from the start means fewer problems later.
7. Branding (not marking cattle)
Hear us out. The term branding gets thrown around so often, it gets misunderstood or written off as “marketing bullshit.” Resist that urge.
The reality is, your brand is your reputation. It’s how you present yourself. It’s how folks remember you. So it needs to be good for you to grow. Take it seriously.
Strong roofing brands:
- Are known for amazing service above all else
- Use a clean business name that’s easy to remember
- Look the same everywhere (consistent logo, colors, messaging)
- Have a nice-looking website and can be found easily online
- Use custom domain emails (not joesroofing123 @ yahoo)
Trust starts before you ever climb a ladder. Good branding = professionalism.
8. POS (point of sale)
Wait, WHAT did you just call me, you — oh, it stands for point of sale. Right.
Sounds fancy, but it’s simple: how you collect money. Most roofers use mobile POS apps or built-in invoicing tools these days.
Example: Use Roofr Payments to send invoices, then collect credit card or bank transfer payments. All in one place, so it’s easier for everyone. No extra POS system needed.
9. Accounts payable (AP) vs. accounts receivable (AR)
Two accounting phrases you’ll see everywhere:
- Accounts payable: Money you owe vendors or suppliers.
- Accounts receivable: Money your customers owe you.
(Simple, right? Why do money terms have to sound so fancy and complicated?)
Anyway keep a close eye on both. Roofing jobs force you to buy materials upfront, so cash flow matters more than most new owners realize. Make sure to keep a buffer so you can always afford to take on new work while you’re waiting for payments to start rolling in.
10. Operational efficiency
In roofing, efficiency = profit. And these days, efficiency is more important than ever, especially if you want to compete in crowded markets. That means:
- Scheduling crews effectively
- Automating repetitive tasks (HUGE time saver)
- Streamlining communications
- Using tech tools like CRMs, measurement reports, and estimators
You know the term. Work harder, not smarter. Well, you need to take that to the extreme when you own a roofing business. Wasting time and resources ain’t an option.
Bonus terms every roofing business owner should know
Here are a few more pieces of roofing business lingo you’ll see:
- SEO (search engine optimization): Sounds fancy, but it’s really just how customers find you online. If you have a good website, post online often, and follow a few SEO principles, you’ll be easier for customers to find on search engines like Google.
- Conversion rate: The percentage of leads that turn into paying customers. If you talk to tons of customers but very few of them are actually booking work, that’s a low conversion rate, and that’s a problem. Leads don’t mean sh!t if they don’t lead to revenue.
- ROI (return on investment): ROI measures if what you spent (on ads, tools, whatever) brought in enough profit to be worth it.
- Competitive analysis: Doing one of these means researching local competitors to see what they’re doing well — and where you can beat them.
- Lead generation (lead gen): The process of bringing in potential customers. We have plenty of guides and help articles on this!
Now you’re an expert
There’s always more to learn when you’re starting a roofing business, but now you should be ready for most of the conversations you’ll be having.
Getting this stuff down early means fewer surprises, smarter decisions, and faster growth.
You’ll want some good friends to help you along the way. We have loads of other articles and resources to help you along your journey. And tools like Roofr’s CRM and roof measurement reports can help your team handle the day-to-day so you can focus on growing your business.
Plus, our support team is fast and knows their stuff. If you have any questions, or want to see more of what Roofr has to offer, reach out anytime. We want to help.