Business Tips For Roofers
With doom and gloom on every front page and every trip to the supermarket painful, it’s only natural to worry about the prospects for the construction industry in general –and for the roofing contractors. This article is aimed at roofing contractors but much of the advice is general and does apply to all trades so please do read on, even if you’re not a roofing contractor.
Yes, there is a down turn and work might be slower for the next few months – but roofs are not a luxury item that most people will try and do without.
Ignore the headlines (they are only there to sell papers) and you’ll see things might be not as bad as they seem.
“The economy is depressed - you don’t have to be!”
The fact is that the credit crunch has made mortgages harder to get, house prices have fallen – so house builders are postponing new builds. As a result being a roofer can be difficult right now - but there are some roofing companies who are still working as usual. So what is their secret?
We talked to a number of business experts – from banks and financial advisors to people who worked the roofs through the last downturns for some advice. Their view was that just because business is depressed, you don’t have to be. There are ways to keep work coming in. Stay positive – and try some of our handy hints for succeeding despite the downturn.
Just what is the forecast?
The economy is even harder to forecast than the British Summer, and while even the Chancellor Alistair Darling admits the UK economy is slowing down, things could be worse. Some shops are even reporting increased sales, and some firms are still looking to expand.
It’s easy to find pessimists. The British Chambers of Commerce\\\'s economic advisor David Kern saw a deterioration in UK prospects. \\\"We are now facing serious risks of recession,\\\" he says.
But perhaps it is too easy to look on the dark side. Some commentators - including Ray Boulger of mortgage brokers John Charcol - have even suggested that falling house prices will be the solution as well as the problem. Pent-up demand from first-time buyers, forced out of the market by high prices, might soon start to provide the first steps to recovery.
His view? “They could help revive house sales and help get the economy moving.”
Land some new customers
If your work comes from new private domestic builds, you will be slack right now. So you need to expand your customer base.
Housing associations and the public sector are less likely to be hit by recession. They are still building – and they pay promptly.
Homeowners will still need repairs – and those that can’t move may want extensions. But many domestic customers put off work because they don’t know where to find a reliable roofer, that’s where SafeTrade can help, putting their minds at rest, and helping you get the work. Homeowners, businesses and local authorities need trades people – but they will only call in someone they know they can trust. Companies who went through the last recession see our service as essential.
Where can you find extra customers?
For public sector contracts, www.Supply2.gov.uk is a government-backed service designed to give companies access to contracts worth under £100,000 from government bodies and local authorities. It is a web-based service that gives access to contracts of all kinds – including 2012 Olympic subcontracting opportunities.
Becoming SafeTrade registered can also help bring in extra business.
Don’t be afraid to ask for business. Pick up the phone, call a few contacts, and remind them you are out there. Offer a priority service or a discount if you have to.
Have more to offer
We all have our favourite jobs. But there is a danger of becoming too specialised – there is no point only offering tiles when customers only want guttering. The more you can do, the more work you are likely to have – so it could be a good time to expand your skills.
You might not think of things like insulation and gutters as roofing, but it might make sense to offer them as part of your tender when you price up a job. After all, somebody is going to make money by climbing a ladder and taking care of them. If that somebody is you, it can make every job more profitable – vital when jobs are thinner on the ground.
Keep yourself busy
Guttering – needs maintenance as well as replacement. Offering guttering as part of your tender on a new build can help win the job.
Insulation – insulation is an integral part of roof construction – and a requirement of building regulations when extensions or renovations are made to existing structures.
Roof windows – increasingly popular, many may be reaching the stage where they need servicing, repair and replacement.
Woodwork Fascias and soffit boards need painting and replacement on domestic properties. Fitting PVC replacements can also be worthwhile for you and your customer.
Solar power – There is a growing range of solar products which in times of rising energy costs can benefit the end user. They require skilled installation by someone who is trained so by getting the training you will have the opportunity to offer a valuable extra service.
Being able to work above ground level is a valuable skill. The more things you can do while you are there, the more valuable it is.
Call time on late payers
As all good roofers know, one of the biggest problems in the trade is getting paid for your work. If you are subcontracting, there can be a long chain of payments to be passed on before you get your cheque.
Late payment is part of the building industry - but you can’t afford to subsidise people who won’t settle up on time. Cash flow causes enough problems when times are good. When the economy slows, it can be the difference between survival and going to the wall.
A few tips to help you keep your cash flow on track
Run a credit check before you start supplying customers, make sure they are likely to be able to pay. Your bank may be able to help, or you can call on a credit reference agency.
Chase payment. A phone call or email can often hurry up slow payers. You can also encourage customers to pay you electronically – it means funds are cleared on the day they’re received by the bank. Remember, you can legally demand interest on a late debt.
Get paid in advance. Asking for full or part payment in advance or offering an incentive for early payment, such as a discount is worth considering.
Use an agency. A debt collection agency can be fast and effective, but they charge between 8% and 10% of the debt recovered.
Check that the agency is reputable by visiting the Credit Services Association website www.csa-uk.com
If all else fails, you could take legal action. However, it can be expensive and you will lose any chance of business from that customer in future.
Plus if they are bankrupt or in the process of liquidation, you won’t get the money back even if you win.
Invoice Finance
Invoice finance – or factoring – can be an answer to cash flow problems. You simply send a copy of each invoice to your invoice finance supplier, and they will let you have a proportion of the cash right away.
The disadvantage is that your supplier will charge a fee – but being paid right away instead of in months can make this worthwhile.
The Asset Based Finance Association (ABFA) can provide a list of reputable suppliers. You can see them online at www.abfa.org.uk
Getting paid as soon as you have done a job makes your business easier to run.
Cut your costs
Cutting costs and increasing efficiency can be a big help to weather the storm. It can seem difficult at first to see where savings can come from – but if you have vehicles standing idle or premises that are not being used to the full; you might be able to make some changes.
Diesel is not getting any cheaper. A smaller vehicle could use less – or at least get the one you have tuned.
Should you make staff redundant? Not if you can help it. Good people are hard to find – you need their skills to stay competitive.
Cutting advertising cuts down costs, but it also cuts down the chances of getting new work. You need to ensure your name stays in front of potential customers.
Another way to cut costs…
The other side of cutting costs is increasing efficiency. Could new methods or new tools speed things up? For example, a new nail gun might take an investment from you – but it could pay for itself by letting you get more done in less time. Switching to dry fix instead of mortar is another way to save valuable time, and increase the quality of work too. Cutting costs and increasing efficiency is like training for the Olympics. It makes your business fitter – and the fitter it is, the better your results.
Turn green
Concerns about the environment have not gone away just because there are worries about the economy. Going green is essential for winning local government contracts, and businesses customers. A recent Ipsos Mori poll shows businesses have an increased chance of success if they are environmentally aware – so offering green techniques, and building your own green credentials will give you an extra edge when you compete for a contract.
Working with the environment in mind
Prepare an environmental policy – getting business from a corporate client may depend on your ability to produce a written statement of the steps your business is taking to protect the environment.
Look at new methods – innovative products can reduce your impact on the environment and help you work more efficiently.
Recycle – make sure you recycle where possible. Packaging, metal and plastics can all be recycled. The environment benefits enormously if you\\\'re producing less waste; as does your pocket as you need to hire less skips and have less landfill charges.
Cut waste – don’t order too many materials, and you can reduce your costs as well as benefit the environment.
Planning for recovery
The next few months will be challenging for anyone in roofing. Making sure that you are one of the survivors means hard work now. But not only will it help you keep your business, it will get it in better shape to make the most of the recovery when it comes.
So, once you have planned how you will work through the slow times, when things start picking up you should start thinking about how you are going to make the most of the boom.
ROOM ON TOP...
With the cost of diesel and worries about the downturn, many of us are thinking about switching to a smaller vehicle. But what about your ladders?
The new Thule Professional range has been developed to make it easier and safer to transport loads such as ladders and timber. The basis for the system is the heavy-duty aluminium load bar with a unique three-slot design that enables fitting of multiple professional accessories, including a ladder carrier that tilts down to the side of the vehicle.
The aim of the Thule Professional Range is to offer safe and robust transport solutions that will help the user to save time as well as look good.
The Professional Range has been made using heavy-duty materials and comes with a five year warranty.
Newcastle Roofers
Sunderland Roofers
Gateshead Roofers
SafeTrade Registered Roofers
Yes, there is a down turn and work might be slower for the next few months – but roofs are not a luxury item that most people will try and do without.
Ignore the headlines (they are only there to sell papers) and you’ll see things might be not as bad as they seem.
“The economy is depressed - you don’t have to be!”
The fact is that the credit crunch has made mortgages harder to get, house prices have fallen – so house builders are postponing new builds. As a result being a roofer can be difficult right now - but there are some roofing companies who are still working as usual. So what is their secret?
We talked to a number of business experts – from banks and financial advisors to people who worked the roofs through the last downturns for some advice. Their view was that just because business is depressed, you don’t have to be. There are ways to keep work coming in. Stay positive – and try some of our handy hints for succeeding despite the downturn.
Just what is the forecast?
The economy is even harder to forecast than the British Summer, and while even the Chancellor Alistair Darling admits the UK economy is slowing down, things could be worse. Some shops are even reporting increased sales, and some firms are still looking to expand.
It’s easy to find pessimists. The British Chambers of Commerce\\\'s economic advisor David Kern saw a deterioration in UK prospects. \\\"We are now facing serious risks of recession,\\\" he says.
But perhaps it is too easy to look on the dark side. Some commentators - including Ray Boulger of mortgage brokers John Charcol - have even suggested that falling house prices will be the solution as well as the problem. Pent-up demand from first-time buyers, forced out of the market by high prices, might soon start to provide the first steps to recovery.
His view? “They could help revive house sales and help get the economy moving.”
Land some new customers
If your work comes from new private domestic builds, you will be slack right now. So you need to expand your customer base.
Housing associations and the public sector are less likely to be hit by recession. They are still building – and they pay promptly.
Homeowners will still need repairs – and those that can’t move may want extensions. But many domestic customers put off work because they don’t know where to find a reliable roofer, that’s where SafeTrade can help, putting their minds at rest, and helping you get the work. Homeowners, businesses and local authorities need trades people – but they will only call in someone they know they can trust. Companies who went through the last recession see our service as essential.
Where can you find extra customers?
For public sector contracts, www.Supply2.gov.uk is a government-backed service designed to give companies access to contracts worth under £100,000 from government bodies and local authorities. It is a web-based service that gives access to contracts of all kinds – including 2012 Olympic subcontracting opportunities.
Becoming SafeTrade registered can also help bring in extra business.
Don’t be afraid to ask for business. Pick up the phone, call a few contacts, and remind them you are out there. Offer a priority service or a discount if you have to.
Have more to offer
We all have our favourite jobs. But there is a danger of becoming too specialised – there is no point only offering tiles when customers only want guttering. The more you can do, the more work you are likely to have – so it could be a good time to expand your skills.
You might not think of things like insulation and gutters as roofing, but it might make sense to offer them as part of your tender when you price up a job. After all, somebody is going to make money by climbing a ladder and taking care of them. If that somebody is you, it can make every job more profitable – vital when jobs are thinner on the ground.
Keep yourself busy
Guttering – needs maintenance as well as replacement. Offering guttering as part of your tender on a new build can help win the job.
Insulation – insulation is an integral part of roof construction – and a requirement of building regulations when extensions or renovations are made to existing structures.
Roof windows – increasingly popular, many may be reaching the stage where they need servicing, repair and replacement.
Woodwork Fascias and soffit boards need painting and replacement on domestic properties. Fitting PVC replacements can also be worthwhile for you and your customer.
Solar power – There is a growing range of solar products which in times of rising energy costs can benefit the end user. They require skilled installation by someone who is trained so by getting the training you will have the opportunity to offer a valuable extra service.
Being able to work above ground level is a valuable skill. The more things you can do while you are there, the more valuable it is.
Call time on late payers
As all good roofers know, one of the biggest problems in the trade is getting paid for your work. If you are subcontracting, there can be a long chain of payments to be passed on before you get your cheque.
Late payment is part of the building industry - but you can’t afford to subsidise people who won’t settle up on time. Cash flow causes enough problems when times are good. When the economy slows, it can be the difference between survival and going to the wall.
A few tips to help you keep your cash flow on track
Run a credit check before you start supplying customers, make sure they are likely to be able to pay. Your bank may be able to help, or you can call on a credit reference agency.
Chase payment. A phone call or email can often hurry up slow payers. You can also encourage customers to pay you electronically – it means funds are cleared on the day they’re received by the bank. Remember, you can legally demand interest on a late debt.
Get paid in advance. Asking for full or part payment in advance or offering an incentive for early payment, such as a discount is worth considering.
Use an agency. A debt collection agency can be fast and effective, but they charge between 8% and 10% of the debt recovered.
Check that the agency is reputable by visiting the Credit Services Association website www.csa-uk.com
If all else fails, you could take legal action. However, it can be expensive and you will lose any chance of business from that customer in future.
Plus if they are bankrupt or in the process of liquidation, you won’t get the money back even if you win.
Invoice Finance
Invoice finance – or factoring – can be an answer to cash flow problems. You simply send a copy of each invoice to your invoice finance supplier, and they will let you have a proportion of the cash right away.
The disadvantage is that your supplier will charge a fee – but being paid right away instead of in months can make this worthwhile.
The Asset Based Finance Association (ABFA) can provide a list of reputable suppliers. You can see them online at www.abfa.org.uk
Getting paid as soon as you have done a job makes your business easier to run.
Cut your costs
Cutting costs and increasing efficiency can be a big help to weather the storm. It can seem difficult at first to see where savings can come from – but if you have vehicles standing idle or premises that are not being used to the full; you might be able to make some changes.
Diesel is not getting any cheaper. A smaller vehicle could use less – or at least get the one you have tuned.
Should you make staff redundant? Not if you can help it. Good people are hard to find – you need their skills to stay competitive.
Cutting advertising cuts down costs, but it also cuts down the chances of getting new work. You need to ensure your name stays in front of potential customers.
Another way to cut costs…
The other side of cutting costs is increasing efficiency. Could new methods or new tools speed things up? For example, a new nail gun might take an investment from you – but it could pay for itself by letting you get more done in less time. Switching to dry fix instead of mortar is another way to save valuable time, and increase the quality of work too. Cutting costs and increasing efficiency is like training for the Olympics. It makes your business fitter – and the fitter it is, the better your results.
Turn green
Concerns about the environment have not gone away just because there are worries about the economy. Going green is essential for winning local government contracts, and businesses customers. A recent Ipsos Mori poll shows businesses have an increased chance of success if they are environmentally aware – so offering green techniques, and building your own green credentials will give you an extra edge when you compete for a contract.
Working with the environment in mind
Prepare an environmental policy – getting business from a corporate client may depend on your ability to produce a written statement of the steps your business is taking to protect the environment.
Look at new methods – innovative products can reduce your impact on the environment and help you work more efficiently.
Recycle – make sure you recycle where possible. Packaging, metal and plastics can all be recycled. The environment benefits enormously if you\\\'re producing less waste; as does your pocket as you need to hire less skips and have less landfill charges.
Cut waste – don’t order too many materials, and you can reduce your costs as well as benefit the environment.
Planning for recovery
The next few months will be challenging for anyone in roofing. Making sure that you are one of the survivors means hard work now. But not only will it help you keep your business, it will get it in better shape to make the most of the recovery when it comes.
So, once you have planned how you will work through the slow times, when things start picking up you should start thinking about how you are going to make the most of the boom.
ROOM ON TOP...
With the cost of diesel and worries about the downturn, many of us are thinking about switching to a smaller vehicle. But what about your ladders?
The new Thule Professional range has been developed to make it easier and safer to transport loads such as ladders and timber. The basis for the system is the heavy-duty aluminium load bar with a unique three-slot design that enables fitting of multiple professional accessories, including a ladder carrier that tilts down to the side of the vehicle.
The aim of the Thule Professional Range is to offer safe and robust transport solutions that will help the user to save time as well as look good.
The Professional Range has been made using heavy-duty materials and comes with a five year warranty.
Newcastle Roofers
Sunderland Roofers
Gateshead Roofers
SafeTrade Registered Roofers