A Financial Advisor’s Perspective, Ken Riewerts

Insights & conversations inspired by Podcast Episode 2: El Niño – What Do You Do After the Big Wave?

When roofers hear the words “El Niño,” most don’t think about weather patterns or ocean temperatures. They think about opportunities. Bigger storms. More claims. More calls. More roofs. More revenue.

But what happens after the big wave hits?

That’s the real question.

In a recent episode of the Roofers Growth & Wealth Show, the conversation shifted beyond storms and sales into something many roofing contractors quietly struggle with what to do when the money finally starts flowing in.

The reality is that storm seasons can change the roofing business overnight. One major hailstorm can turn a slow year into millions of dollars in revenue almost instantly. But while storms create cash flow, they do not automatically create long-term wealth.

And that difference matters.

Storm Season Feels Exciting… Until It Doesn’t

For roofing companies, a major storm creates an immediate surge of activity. Phones start ringing. Past clients ask for inspections. Sales opportunities appear everywhere. Teams scramble to get systems updated, processes organized, and jobs documented.

At first, it feels exciting.

But behind the scenes, chaos often follows.

Many contractors discover quickly that the systems they used during slower seasons cannot handle a sudden influx of hundreds of claims. CRMs become overwhelming. Processes break down. Cash flow gets tight. Communication gaps are growing. What looked like a “great problem to have” can suddenly become a massive operational headache.

One contractor on the podcast shared how a single Colorado storm took his company from roughly $200,000 in annual revenue to nearly $3 million almost overnight.

Sounds amazing, right?

But with rapid growth came new problems:

• Tracking jobs across multiple systems
• Hiring and training people too quickly
• Managing massive upfront material costs
• Waiting weeks for insurance payments
• Losing visibility on actual profit margins
• Scaling overhead faster than revenue

This is where many roofing businesses get into trouble.

Storms Create Cash, Not Wealth

One of the most important takeaways from the episode was this simple statement:

“Storms do not create wealth. They create cash.”

What happens next determines everything.

Too many roofing business owners experience a huge storm season and assume the money will continue forever. They upgrade trucks, expand offices, hire aggressively, add expensive software, or dramatically increase personal spending.

Then the storms slow down.

Now the same business that looked wildly successful six months earlier is struggling to survive under the weight of increased overhead and inconsistent revenue.

The hosts compared it to lottery winners. Many people who suddenly receive large amounts of money spend it quickly because they mistake temporary cash flow for permanent wealth.

Roofing businesses often fall into the same trap.

Cash Flow Is What Kills Roofing Companies

One of the biggest misconceptions outside the roofing industry is that contractors get paid immediately after signing a deal.

That is rarely true.

Insurance roofing jobs can take weeks before meaningful payments arrive. Meanwhile, contractors are fronting material costs, paying subcontractors, handling supplements, managing labor, and covering overhead long before the final insurance check shows up.

A company can look profitable on paper while simultaneously running dangerously low on cash.

That’s why cash flow management matters so much in roofing.

Without proper planning, a business owner can accidentally spend money that technically hasn’t arrived yet. That creates a dangerous cycle where companies begin relying on future storms or future jobs just to stay afloat.

Eventually, that catches up to people.

The Importance of Knowing Your Numbers

One phrase repeated throughout the conversation was simple:

“Know your numbers.”

That means:

• Knowing actual job profitability
• Understanding overhead costs
• Tracking incoming and outgoing cash flow
• Monitoring payroll obligations
• Planning for slow seasons
• Building reserve accounts

Many roofing owners are exceptional salespeople and operators, but financial tracking often gets pushed aside during busy seasons.

Unfortunately, ignoring the numbers does not make the financial pressure disappear.

The good news? You do not need to be a financial expert to start improving.

The podcast hosts emphasized starting simple:

• Build a basic spreadsheet
• Track expenses consistently
• Separate business and personal spending
• Create cash reserve accounts
• Work with professionals when needed

Today, technology and AI tools also make financial tracking more accessible than ever before for smaller roofing companies.

Why Flexibility Matters More Than Rapid Growth

A major point discussed during the episode was the importance of flexibility.

In seasonal industries like roofing, flexibility often matters more than aggressive expansion. Contractors who overbuild during storm years can find themselves trapped when production slows down.

The goal is not simply to build the biggest company possible.

The goal is to build a sustainable company that supports your life, your family, and your future regardless of whether the next hailstorm arrives.

That means:

• Keeping healthy reserves
• Avoiding unnecessary overhead
• Investing intentionally
• Protecting personal finances outside the business
• Building wealth independently from future storms

One of the most honest moments in the episode came when a contractor admitted he had spent years reinvesting everything back into the business while neglecting personal financial planning. When business slowed, the stress hit hard because so much depended on the company continuing to grow.

That realization changed his perspective entirely.

Build Wealth While the Storms Are Good

Storm seasons create opportunities.

But opportunity without discipline can become dangerous.

The contractors who survive long term are not always the ones who make the most money during a single storm season. Often, they are the ones who prepare properly, manage cash flow wisely, and consistently build personal wealth while business is thriving.

The best roofing businesses understand this:

The goal is not just to survive the next storm season.

The goal is to make sure your future, your family, and your financial security are not dependent on one.