A small residential roofing contractor

What does this contractor actually do?

The modeled business replaces one-layer asphalt roofs on modest existing single-family homes. A standard measured roof contains 20 roofing squares, or 2,000 square feet of sloped surface. The company buys materials, obtains the applicable permit, manages the customer contract, coordinates the crew and inspects closeout. It retains the customer relationship and workmanship follow-up responsibility. Structural decking, complex multi-layer tearoff, steep/high access, asbestos, solar-panel removal and insurance-claim administration need separate scope and pricing.

The working owner handles qualification, estimates, scheduling and field supervision. One year-round employee completes small repairs and ground logistics. A separate licensed subcontract business supplies a three-person installation crew, its own tools and its own employment arrangements. The subcontract allowance buys 48 installer person-hours per standard roof. Licensing and worker classification require evidence beyond a verbal promise or a tax form. CSLB classification and construction-subcontract conditions define the relevant checks.

The base first year completes 51 roofs and 162 repairs. That is a planning hypothesis, not demonstrated demand. Validate it with dated estimate logs, accepted contracts, cancellation rates and actual crew availability in a defined service area. A supplier specification or SBA record count cannot substantiate that sales pipeline.

Which decisions can invalidate the format?

Start with an eligible, actively licensed C-39 qualifier and coverage. This case does not assume a novice can buy a truck and immediately trade. CSLB experience guidance explains the qualification route; CSLB coverage guidance requires C-39 workers’ compensation even with no employees.

Under the current California residential-roofing rule, slopes through 7: 12 require fall protection at a fall distance of 6 feet or more; steeper roofs require it irrespective of height. Training and a site-specific system belong in every estimate. The amended rule took effect in July 2025, so an older pocket guide is an unreliable shortcut. Cal/OSHA §1731 and rulemaking effective date.

The model carries a six-day weather closure in month 14 rather than assuming the crew works through rain. It also holds paid owner and employee commitments throughout the year. Product/color selection and roof alteration compliance depend on the site; the California energy-code resources do not establish acceptance of a generic shingle for every address.

What do the modeled results imply?

The base case produces first-year revenue of $886,500 and EBITDA of $172,708 after owner compensation. Its lowest unrestricted cash is $42,888 in month 3. Owner-equity recovery occurs in month 8 under the stated cumulative cash definition.

The downside case is materially different: lower selling prices, fewer orders, higher job costs, full supplier prepayment and slower collection produce first-year EBITDA of −$27,596. Cash becomes negative in month 4, reaches −$129,471 and never recovers the initial equity within 60 months. Additional funding is $129,471 above the opening capital. The guide therefore supports a decision about viable job contribution and timing, not an unconditional profitability claim.

What does SBA activity tell us?

The hash-verified June 2026 extract contains 942 included records approved in FY2023–FY2025 for NAICS 238160, Roofing Contractors: 285, 308 and 349 respectively. This broad category includes different roofing businesses; the extract does not identify this exact crew mix or provide borrower plans. SBA data; Census mapping.

Counts use PIF, CHGOFF and EXEMPT status records at the cutoff; approval fiscal year is not the year cash was disbursed. They are neither search volumes nor approval probabilities. Read the dedicated SBA industry profile for the broader category’s defined samples and downloadable aggregates. For cross-industry comparison, use the lending methodology and the five case guides. The full business-plan example remains pending owner generation.