Real-estate investment is perhaps one of the most lucrative investment opportunities today. Property has always appreciated in time giving the investor good returns for his money.
Real estate is about housing and every house needs a
solid roof. This is where aluminum roofing sheets come into the picture.
They are
classy, contemporary and trending and they come in various unique shapes,
colors and dimensions. The business is capital intensive and requires
lots of machinery and experienced staff. You can make lots of money investing
in roofing.
Construction and refurbishing work on new and existing
building is always ongoing. This is because roofs are constantly repaired and
replaced in buildings. The high demand for roofs makes aluminum roofs a
lucrative business.
Here are a few requirements before starting your Business.
Invest
in a Large Warehouse
To get started you need to build, buy or hire a large
warehouse. The warehouse should have adequate space for equipment, storage,
administrative office and loading dock. The length, volume and size of the
sheets require ample space for molding, cutting and storage.
Focus on one Sector
You need to decide if you will concentrate only on the
production of roofing sheets or take roofing contracts. If you run a small
roofing sheet manufacturing company you can include roofing contracts in your
list of services.
Larger companies because of the high demand concentrate
only on roofing sheet manufacturing aspect of the business. Roofing contractors
specialize in either industrial roofing or residential jobs.
Industrial roofers concentrate on roofs for shopping
complex, warehouses and large malls. While residential roofers build roofs for
bungalows, sheds and houses.
Aluminum sheets are not the only material used by
roofing contractors. A few materials also used for roofing are asbestos,
slates, metal sheets, cut wood and clay roofing.
Other material are corrugated aluminum sheets,
roof tiles, and zinc sheets They are very effective in keeping out the elements
however aluminum roofs are better.
It is light weight, durable and elegant when used
on buildings. They also come in a wide Verity of colors, designs, sizes and
shapes.
You may also like Aluminum fabrication business ideas
You may also like Aluminum fabrication business ideas
Training
The equipment's you use in your factory needs proper
handling. You need trained staff with expert knowledge to handle the production
process. Even after operations have commenced you do retraining of key staff
members.
Types
of equipment used in Producing Aluminum Roofing Sheets
One of the heavy machinery used in the production of
roofing sheets is the long-span roof corrugated machine. Major manufacturers use high speed roll former
machine and corrugated machine with advance mental roll. The machine has a
decoiler, roll forming system, cutter, sheet guider, hydraulic system and a
support table.
Other equipment used is the curving machine, metal
processing equipment for longspan aluminum including the color coating machine.
Machine
Specifications Include Some of the Following
The machines use galvanized steel sheets in coils, repainted
galvanized sheets and other sheets. The common hydraulic decoiler has a
maximum capacity of 5000KGS and a hydraulic station power. Other things are
electrical requirements, a control panel and different material specifications.
Write
a Feasibility Study
You need to write a good feasibility study before starting
your roofing business. The feasibility study is an open assessment of the
practicality of the business or project.
The main aim is to cover strengths and weaknesses that
exist in roofing business in your locality. You need to measure the readily
available raw materials and resources to determine the prospect of success in
your chosen business.
The two major parameters to judge your study are the
total cost and value. Design your study to highlight historical precedence of
the business, product development and service rendered.
Other objectives are accounting, operations, management
research, financial data, legal, taxation and marketing research. You now see
why getting a proper feasibility study is so important to the success of your
business venture.
Another reason why it is so important is that it helps
evaluate the projects potential for success. The credibility of the study has
the potential to attract much needed investors and financial lending.
We have established that manufacturing is
capital intensive so you need adequate funding to start-up the business.
Financial institutions like banks will provide loans on the strength of your
report.
Things
to add in your feasibility report
1
Technical assessment based on project
completion, equipment and trained staff
2
Economic assessment covers qualifications,
cost and benefit analysis
3
Legal requirements that comply with local
provisions and laws
4
Operational measures problem solving, analysis
and system development. This includes environmental concerns, schedules,
corporate structure and delivery date.
5
Schedule feasibility covers how long it takes
to get into production
6
Market and real estate feasibility determines
geographical location, local market requirements and best location for your
roof manufacturing company
7
Resource feasibility covers availability of
raw materials, developmental procedures and company revenue.
8
Financial feasibility revolves around
financial visibility, total start-up estimate, capital structures, existing
investment, projected cash flow and liquidity of assets. Others are funding
sources and repayment of loans.
You can also consider cost
fluctuations and inflation in your calculations.
Marketing
You need to have an effective
marketing and sales plan. Try to factor in the potential for growth and project
development.
Marketing is essential to reach potential
clients and contractors. The quality of your product and services is the best
marketing tool you have.
You can use referrals,
warranties and discounts to get more clients on board. Special promotional packages are a good
strategy to market your roofing products.
Build confidence in your
brand and watch your profit increase exponentially. To successfully market your
businesses you need a strong marketing team or hire professional advertisement
networks.
The more quality products
and marketing you do the stronger you brand and reputation. You need a good
marketing strategy and a list of actions.
The list of actions should
have specific marketing objectives within a certain time frame. To succeed you
need to first identify your customer base and meet their needs.
The marketing strategy
should cover sales, referrals, forecasts, budget and actual sales. You need to
know the strengths and weakness of your business or product to better align it
with the expectations of your customers.
The plan needs to forecast
market size, strengths of new and existing products and expenditure. Get your
marketing plan right and your business will grow exponentially in a few short
years.
Your company needs lots of
sales representatives that go to aluminum wholesale and retailers for business.
They can visit construction sites and anywhere building renovation takes place.
Provide a holistic package
that includes discounts and warranties to aid your sales representatives. Sales
representatives generally earn income as commissions on products sold.
Certification
Your business needs lots of
certification and registration. Registration involves company registration as a
limited liability company including share holders and company structure.
Certification covers permits
to operate your roofing business and other environmental concerns. Other
certification involves safety protocol, profession membership in related groups
and staff training.
Others might involve quality
of raw materials used and other local government requirements. Get familiar
with all the registration, membership and certification needed before starting
your roofing business.
Financials
You need lots of money to
start the business. You can source funding through business
loans. The loan can be asset based for collateral and recommended on your
present account balance.
Another method of getting
funds is selling equity in your company to prospective investors. You can use
mezzanine financing to borrow money from banks without putting up collateral.
It is highly unlikely that
the loan collected from a commercial bank is unsecured. Banks need security so
they will demand such to cover debts.
You can also try a
partnership agreement or secure a core investor. Even a small aluminum roofing
business will set you back over $100,000.
Capital investment in
setting up the business is high but the benefits are
huge.
Sales
and Delivery
You need an administrative
building to handle sales and delivery. The customer’s first contact should be a
highly trained receptionist/secretary.
She answers enquirers from
customers over the phone and calls a sales manager to take orders. Once the
orders are taken the customer proceeds to the cashier and pays for the goods.
He then presents the invoice
to the secretary who files it. The cashier should have her own copy which is
then sent to the delivery unit. You need to put in place an effective system to
monitor sales and delivery.
Not every company
includes delivery in their services. However, having one will aid your business
and make additional income.
You receptionist should also
have a complete portfolio of your products and services.
Pricing
Your roofing sheets must
have competitive pricing in the market. Study the price list of competitors and
see if you can do better.
All elements like
electricity, labor and price of raw materials go into pricing your product. Try
to maintain a competitive price to succeed in the enterprise.
You can use warranties, discounts,
and price adjustments to set prices. Offer fifteen year warrantee instead of
the usual ten years window to attract customers.
Networking
Aluminum manufacturers have strong associations to
monitor pricing and work ethnics. You need to join any associations in your
locality including national association.
The professional bodies related to products,
construction and sales will provide lots of information and support. Build viable
connections through networking at business gatherings and seminars.
This way you will stay abreast of the game and learn new innovations
as they occur in the industry. Networking attracts people in your industry like
building construction companies and Realtor's
You get to meet lots of major wholesalers and retailers
of your product. The major advantage of networking is that it gets you closer
to prospective clients and business partners.
Branding
Create a powerful and unique brand and stand out from
your competitors. You brand includes a good name, high quality products and prompt
delivery.
A top brand is equivalent to money in the bank. Starting an
aluminum roofing business is no child’s play but following some suggestions in this
publication can get you up and running.
Here is another related business ideas that might catch your fancy steel fabrication business
Here is another related business ideas that might catch your fancy steel fabrication business
4 comments:
I was very pleased with the whole experience. The rep. showed up on time for the quote. The installation was a breeze as well as the cleanup. Love that the company is local. This company is not only the installer but the manufacture Thanks AM Construction for having quality products and hard working, skilled and ethical installers at www.amconj.com!
Nice article and I would like to thank you for sharing it.
Aluminium stockist
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