At a glance
A viable launch needs more cash than tools
Plan on $123,000 before opening for the Typical Oregon model: an independent, owner-operated LLC with one three-person field crew, one truck and dump trailer, no storefront, and a residential-specialty CCB endorsement. The service mix is 75% asphalt reroofing, 15% repairs and 10% gutters/ventilation; capacity is measured in roofing squares (100 square feet).
The modeled startup envelope is $63,000 Lean, $123,000 Typical and $226,000 Premium. At steady Base performance, 1,040 squares plus repair work produce about $780,000 annual net revenue, $89,000 passive-basis normalized cash operating profit before D&A, and $177,000 of working-owner pre-tax business cash benefit. The central risk is not licensing expense; it is rain-sensitive production, workers' compensation, and bidding enough contribution into each job.
Configuration fingerprint. Independent LLC; one mobile crew; one truck and one dump trailer; practical capacity 110 squares per month in normal weather; owner handles estimating, sales, project management and about 20 hours of field work weekly; core work is residential asphalt replacement and repair. This configuration – not Oregon evidence – defines the comparable business. Oregon evidence changes licensing, wage, tax, safety and market assumptions.
Capital plan
Truck, safety gear and runway set the opening check
The Typical case buys a dependable used three-quarter-ton truck and dump trailer, equips a three-person crew, funds deposits and pre-opening payroll, and preserves $45,000 as unrestricted operating cash. It assumes materials are ordered job by job and customer deposits reduce receivables; opening inventory therefore covers only consumables, flashing and repair stock.
| Use | Lean | Typical | Premium |
|---|---|---|---|
| Truck and trailer | $22,000 | $43,000 | $78,000 |
| Tools, ladders and safety systems | $8,500 | $16,500 | $31,000 |
| Entity, CCB, exam, bond premium and professional setup | $2,300 | $4,200 | $7,000 |
| Insurance deposits | $4,500 | $7,500 | $13,000 |
| Pre-opening payroll, training and launch marketing | $6,200 | $11,000 | $20,000 |
| Deposits, repair stock and initial net working capital | $4,500 | $8,000 | $15,000 |
| Opening operating-cash reserve | $12,000 | $45,000 | $52,000 |
| Contingency | $3,000 | $7,800 | $10,000 |
| Total project cost / founder cash required | $63,000 | $123,000 | $226,000 |
The $25,000 CCB bond face amount is not a $25,000 expense. The model includes a $1,250 planning allowance for the premium and issuance, but the actual premium and any collateral are quote-dependent. Collateral, if required, is restricted cash and must be added separately. No landlord allowance, grant or equipment loan is treated as committed; therefore total project cost equals founder cash required and peak interim cash.
Launch path
License the contractor before selling the roof
Oregon requires the responsible managing individual to complete approved pre-license training and pass the CCB exam before the entity applies. The application then depends on an active bond and liability policy. Equipment sourcing, insurance quoting and estimating-system setup can run in parallel; hiring field workers should wait until workers' compensation and safety systems are ready.
Form and qualify
Register the Oregon LLC, obtain EIN, complete CCB education and book the exam. Start insurance and bond underwriting at once.
License and insure
Pass the exam; bind the $20,000 residential-specialty bond and at least $300,000 per-occurrence liability coverage; submit the $400 application.
Build the production system
Acquire vehicle, trailer, ladders, hoist and fall-arrest gear; establish supplier credit, waste routes, written safety training and job costing.
Hire and sell
Activate workers' compensation, payroll and Oregon employer accounts; train the crew; inspect leads and issue contracts with scope, change-order and warranty terms.
Permit and produce
Confirm address-specific permits, schedule tear-off around weather, document deck conditions and close inspections. Agency processing time is not published statewide.
| Requirement | Authority / status | Fee | Dependency | Timing |
|---|---|---|---|---|
| Oregon LLC registration | Secretary of State; mandatory for modeled entity | Confirm current schedule | Legal name before CCB filing | Online filing often first |
| EIN and tax accounts | IRS / Oregon DOR; mandatory as applicable | No IRS EIN fee | Payroll and banking | Often parallel |
| CCB pre-license course and exam | CCB-approved provider / exam vendor; mandatory | $60 exam plus course cost | Responsible managing individual | Before application |
| Residential Specialty Contractor license | Oregon CCB; mandatory | $400 initial; $400 / 2 years | Exam, bond and insurance | Processing SLA not published |
| Bond and liability insurance | Surety / insurer; mandatory | Quote required | $20,000 bond; $300,000 per occurrence | Bind before CCB filing |
| Workers' compensation | DCBS / insurer; mandatory with subject workers | Local quote required | Before employee starts | Underwriting varies |
| Building / reroof permit | Varies by city/county; conditional by scope | Varies by city/county | Exact address and scope | Not published statewide |
| Lead-safe renovation | EPA / Oregon program; conditional for pre-1978 work | Confirm with issuing authority | Disturbance and property age | Before covered work |
Local variation and address checks. Ask the building department serving the final job address whether a reroof permit, structural review or inspection is required, who may pull it, and whether wildfire, snow-load, historic-district or disposal rules apply. Check examples from Portland, Eugene, Bend and the relevant county only as examples – not statewide law. Never sign a fixed-price contract before determining decking, layer count, access, dump distance and permit responsibility.
Operating economics
Squares installed, not contract count, drive capacity
The natural unit is one roofing square. Base production assumes 1,040 replacement squares annually – roughly four 20-square reroofs per month for 13 effective production months' worth of capacity compressed into the workable calendar – plus repairs and accessories. The statewide planning price is $640 per installed asphalt square, built as a modeled midpoint informed by 2026 observations spanning larger, mid-sized and smaller Oregon markets. It is a planning price, not an observed statewide average; pitch, tear-off layers, decking, material grade and access can move a quote sharply.
| Driver / result | Downside | Base | Upside |
|---|---|---|---|
| Replacement squares / year | 780 | 1,040 | 1,250 |
| Net replacement price / square | $600 | $640 | $680 |
| Repair and accessory revenue | $78,000 | $114,400 | $150,000 |
| Annual net revenue | $546,000 | $780,000 | $1,000,000 |
| Passive-basis contribution margin | 34.0% | 38.0% | 40.0% |
| Fixed cash cost incl. owner-management replacement | $207,000 | $207,000 | $225,000 |
| Passive normalized cash operating profit | – $21,360 | $89,400 | $175,000 |
| Working-owner pre-tax business cash benefit | $57,840 | $177,000 | $273,000 |
Practical capacity is capped near 1,320 replacement squares per year for the same crew before overtime, quality drift or a second crew. The Upside case uses 95% of that practical band, not impossible utilization. The business should schedule repair blocks and interior estimating work during wet periods rather than treat every calendar day as installable.
| Cost line | Monthly |
|---|---|
| Roofing materials, disposal and subcontract scopes | $30,550 |
| Non-owner field payroll and burden | $8,450 |
| Variable owner-field replacement labor | $4,225 |
| Card fees, warranty callbacks and variable selling cost | $3,125 |
| Vehicle, fuel, shop/storage and utilities | $3,350 |
| Insurance, safety, software and licenses | $2,600 |
| Marketing, office and professional services | $3,300 |
| Fixed owner-management replacement labor | $3,075 |
| Total passive-basis cash operating cost | $58,675 |
| Normalized passive cash operating profit | $6,325 |
Displayed monthly costs represent a normalized month; annual profit uses unrounded scenario calculations and includes a $13,500 annual weather/callback buffer, which explains the difference from multiplying the displayed monthly profit by twelve. Below operating profit, reserve another $12,000 annually for replacement equipment and vehicle capex. Debt service, income tax and owner draws are excluded.
Unit economics
A $640 square contributes about $243
The passive/economic view charges every square for materials, disposal, non-owner field labor, the field work performed by the owner, and job-variable selling/warranty expense. Fixed estimating, general insurance, software and management stay out of unit contribution and enter the break-even numerator.
| Bridge | Per square |
|---|---|
| Net installed revenue | $640 |
| Materials, tear-off and disposal | – $288 |
| Fully loaded non-owner direct labor | – $76 |
| Variable owner-field replacement labor | – $26 |
| Job-variable selling, card and warranty cost | – $7 |
| Passive contribution / margin | $243 / 38.0% |
| Working-owner cash contribution before owner field compensation | $269 / 42.0% |
At 20 squares, the modeled replacement job earns $12,800 and contributes about $4,860 on a passive basis before fixed overhead. A two-square decking surprise priced poorly can erase much of that contribution. The estimate therefore needs explicit quantities, unit prices for decking and flashing, exclusions, disposal assumptions, and a signed change-order path.
Track sold contribution
Do not reward estimators for revenue alone. Track quoted and realized contribution dollars by square, then investigate material variance and callbacks.
Track squares per crew-day
Base planning assumes about five squares per productive crew-day, adjusted for pitch, stories, access and tear-off layers.
Match deposits to commitments
Customer deposits are liabilities until work is earned. Keep them distinct from founder capital and unrestricted runway.
Survival and return
Break-even sits below capacity, but weather compresses the margin
Three break-even definitions answer different questions. Cash survival ignores imputed owner pay. Sustainable working-owner break-even adds a $7,300 monthly target for the owner's total labor to the cash basis. Passive break-even includes variable owner-field replacement labor inside contribution and fixed management replacement labor in fixed cost.
| Measure | Basis | Result | Capacity / timing |
|---|---|---|---|
| Cash-survival break-even | 42.0% cash contribution; $11,650 fixed non-owner cash cost | $27,738 / mo. | About 43 equivalent squares; 39% capacity |
| Sustainable working-owner break-even | 42.0% cash contribution; $18,950 incl. target owner compensation | $45,119 / mo. | About 71 equivalent squares; 65% capacity |
| Passive-owner break-even | 38.0% passive contribution; $17,375 incl. fixed replacement labor | $45,724 / mo. | About 71 equivalent squares; 65% capacity |
| Debt-service break-even example | Passive basis plus $2,100 payment and $1,000 capex reserve | $53,882 / mo. | About 84 equivalent squares; 76% capacity |
| Base unlevered project payback | $123,000 month-0 project capital; monthly ramp cash after capex reserve | Month 24 | First nonnegative cumulative month |
| Downside unlevered payback | Same Typical scope and pre-tax project basis | Not reached | 36-month modeled horizon |
The monthly cash schedule starts with $45,000 of opening reserve and assumes ramp receipts of 35%, 50%, 65%, 78%, 88% and 95% of stabilized Base revenue over months one through six. The maximum cumulative deficit is about $33,000; a $12,000 minimum closing-cash floor sets the $45,000 reserve. Average positive burn during the early ramp is about $11,800, or 3.8 months by the shortcut. This reserve is funded once at month zero; ramp losses paid from it are not counted again as capital contributions.
Oregon conditions
Labor rules and rain make the state matter
Oregon's May 2023 statewide mean roofer wage was $26.11 per hour, with 3,690 estimated jobs, according to the Bureau of Labor Statistics. The model uses $28 – $31 base wages for experienced crew members and a 28% burden allowance because recruiting, payroll taxes, paid time, workers' compensation and safety costs exceed the published cash wage. Workers' compensation is generally required when an employer has one or more subject workers, per Oregon DCBS.
Minimum wage is not a useful roofer-pay benchmark, but it matters for helpers and administration. From July 1, 2026 through June 30, 2027, Oregon's rates are $16.80 in the metro UGB, $15.55 standard and $14.55 nonurban, as published by BOLI. Public works may trigger prevailing wages that vary by occupation, region and bid date; quote those jobs on the applicable rate book, not this private-residential model.
Rain-day compression
A five-point utilization loss cuts annual Base revenue roughly $41,000 and passive profit about $16,000 at the modeled contribution margin. Watch sold backlog in crew-days.
Price-lock exposure
A 5% increase in materials/disposal without repricing removes about $18,700 from annual contribution. Limit quote validity and confirm supplier pricing before ordering.
One callback can erase a job
Track callback cost below 1.5% of revenue, photograph flashing and decking, and preserve manufacturer installation records.
Oregon's Corporate Activity Tax begins registration at $750,000 of Oregon commercial activity and generally imposes payment above $1 million, with a $250 minimum plus 0.57% over the threshold subject to the statutory subtraction. The Base case crosses registration but not the payment threshold; the Upside case reaches the filing edge. Confirm the computation with the Department of Revenue.
Method and evidence
What is official, observed and modeled
Research was reviewed August 29, 2026. Official rules and fees are used directly where published. Wage data are reported government data. Vehicle, insurance, tool, price, production and reserve figures are modeled planning assumptions informed by market observations and operating logic; obtain live quotes. The state planning basket considers larger, mid-sized, central and southern Oregon markets for customer pricing and cost variation, using a defensible midpoint rather than one-city substitution. The largest uncertainty is realized production after weather and crew availability.
| Source / publisher | Geography / period | Evidence type | How used |
|---|---|---|---|
| Oregon Construction Contractors Board – CCB License | Oregon; current page reviewed 2026 | Official fee or rule; high confidence | $400 application/renewal, $60 exam, bond and liability thresholds |
| Oregon CCB – Residential Endorsements | Oregon; current classification | Official rule; high confidence | Residential specialty scope and $20,000 bond / $300,000 insurance |
| Oregon DCBS – Workers' compensation | Oregon; current | Official rule; high confidence | Coverage gate for subject workers |
| Oregon OSHA – Roofing | Oregon; guide updated 2025 | Official safety guidance; high confidence | Fall-protection system and training launch gate |
| U.S. OSHA – Residential fall protection | United States; current standard guidance | Federal rule guidance; high confidence | Six-foot trigger and competent-person training |
| BLS – Oregon OEWS | Oregon; May 2023 | Reported government data; moderate confidence due age | 3,690 roofers; $26.11 mean hourly wage |
| Oregon BOLI – Minimum wage | Oregon; Jul. 2026 – Jun. 2027 | Official rule; high confidence | Three-zone wage floor and regional variation |
| Oregon BOLI – Prevailing wage | Oregon; current | Official rule; high confidence | Public-works caution and regional rate requirement |
| Oregon Department of Revenue – CAT | Oregon; current | Official tax rule; high confidence | $750,000 registration and $1 million payment thresholds |
| Costadia – Oregon asphalt replacement observations | 14 Oregon markets; 2026 | Published commercial benchmark; low/model-dependent | Cross-check only; customer pricing remains a modeled state-basket midpoint |
This planning article is not legal, tax, safety or insurance advice. Confirm the operating address, license endorsement, contract language, worker classification, permit path, bond, insurance and current fee schedule with the issuing authority and qualified advisers before committing capital.