We all have a cousin that has a neighbor whose secretary needs a roof or a roof repair and that is a side job. The problem is that her neighbor also needs a roof and their neighbor and so forth.
In that part of town, there is a real roofing company with real overhead and real employees that has made a real commitment to do a good job and be around for the long haul. That company has insurance and is required to provide for their employees a long list of benefits and all that costs money. And now that real roofing company is competing with the guy doing the side job.
Some justify it by saying, "Well I only do small jobs and repairs" thinking that it will drive the real roofing company that only wants to do small jobs and repairs to do bigger jobs. That contractor is then competing with the real roofing companies that are in that space and they move up and so on and so forth.
I support people that want to start and run companies, it is rewarding in many ways. So, go out and get set up and compete for business with all of the required documentation that your local area requires.
If you are a roofing contractor and you know your guys are doing side jobs and you allow it you are only exposing yourself to more workers comp losses, more material and equipment costs and smaller contractors moving into your space.
Martin Stout is president of Go Roof Tune Up, Inc. See his full bio here.