Year-Over-Year Planning for a Roofing Company Owner

A one-year plan is not a plan

Roofing companies that stall at 2 to 3 million in revenue typically plan one year at a time. The companies that break through to 5, 10, and 20 million run a 3-year rolling plan with clear milestones each year. They hire 12 months ahead of where the business needs them. They buy equipment 6 months ahead. They build margin roadmaps that compound.

Here is the year-over-year planning framework.

The 3-year rolling plan

Every October and November, rebuild the 3-year plan. Not a 3-year plan written once and refreshed. A rolling plan where the current year is detailed, the next year is specific, and the year after is directional.

HorizonDetail levelPlanning depthYear 1 (next year)Monthly budget, hiring plan, capacity100+ hours of planningYear 2Quarterly targets, capability buildouts20 to 40 hoursYear 3Directional revenue target, major initiatives10 to 20 hours

The capacity model

Build a spreadsheet that maps revenue to capacity:

Sales capacity

• Each closer produces 1.2 to 1.8 million in annual revenue at full season
• Each canvasser generates 150 to 300 qualified leads per year
• Close rate on canvas leads: 20 to 35 percent

Production capacity

• Each install crew: 150 to 200 jobs per year
• Average job revenue: 12,000 to 18,000 residential, 25,000 to 150,000 commercial
• Each PM: 150 to 200 jobs per year

Office capacity

• Each estimator: 300 to 500 estimates per year
• Each AR person: up to 5 million in AR management
• Each office admin: 2 to 3 million in revenue support

Build the next 3 years of revenue targets. Back into capacity. That is your hiring plan.

The hiring ladder

Here is a typical hiring ladder for a company going from 3 million to 10 million over 3 years:

Year 1 (3M to 5M):

• +4 closers
• +12 canvassers
• +1 PM
• +1 estimator
• +1 office admin
• Total: 19 hires net of attrition

Year 2 (5M to 7.5M):

• +3 closers
• +10 canvassers
• +1 PM
• +1 admin
• +1 sales manager (first leadership role)
• Total: 16 hires net of attrition

Year 3 (7.5M to 10M):

• +2 closers
• +8 canvassers
• +1 PM
• +1 production manager (first dedicated ops role)
• +1 accountant or controller
• Total: 13 hires net of attrition

Notice: as you grow, the percentage of hires that are leadership or ops increases. That is normal and required for scale.

The margin roadmap

Revenue growth without margin improvement is burnout. Build a margin roadmap:

YearGross margin targetNet margin targetKey margin movesCurrent30 to 34 percent8 to 12 percentBaselineYear 1+2 points+1 to 2 pointsSupplier renegotiation, supplement trainingYear 2+2 points+1 to 2 pointsCrew efficiency, office automationYear 3+1 to 2 points+1 to 2 pointsPremium product mix, pricing discipline

By year 3, target gross margins of 35 to 40 percent and net margins of 12 to 17 percent. That is a company worth something when you sell.

The strategic initiatives list

Each year, pick 3 to 5 strategic initiatives. Do not try to do 10. Examples:

• Launch a commercial division
• Build an in-house call center
• Acquire a competitor
• Open a second market
• Build a proprietary CRM workflow (we use RoofKnockers) to automate ops
• Hire a controller or CFO
• Reach 4,000 Google reviews with 4.8 star rating

Initiatives require champion ownership. The owner cannot own 5 initiatives. Assign one leader per initiative with a deadline and a quarterly checkpoint.

The KPI dashboard

Track these year over year metrics in a single dashboard:

1. Revenue (target vs actual, year and YTD)
2. Gross margin percentage
3. Net margin percentage
4. Jobs installed
5. Average job size
6. Sales conversion rate
7. Cost per acquired customer
8. Rep retention rate
9. AR days outstanding
10. NPS or Google review rating

Review monthly in an owner review. Deep-dive quarterly in a QBR.

Planning calendar

• October: Refresh revenue targets and capacity model
• November: Build hiring plan and budget
• December: Finalize comp plan and strategic initiatives
• January: Roll out to the team at kickoff
• April, July, October: Quarterly reviews and adjustments

FAQ

How long should planning take each year?

120 to 180 hours of owner time between October 1 and January 15. Half that time is gathering data and talking to team members. Half is actual writing and budget building. It is a significant investment. Scaling companies treat it like the highest-leverage work of the year.

Do I need a consultant to do this?

Not required but helpful. A good roofing industry consultant costs 5,000 to 25,000 for 3-year planning support. Worth it at 3 million revenue plus.

What if I miss my year 1 target?

Missing by 10 percent is normal. Missing by 25 percent means the plan was wrong or execution failed. Audit the assumptions, adjust the plan, and communicate the revised year 1 to the team.