How to Start a Plumbing Business? Know Everything Here

How to Start a Plumbing Business?

Starting a new plumbing business requires a well-thought-out strategy. The lack of such a strategy can hurt your work. Though it needs dedication and hard work like other businesses, it is still necessary for you to know deep information for a successful business. So you must follow the points below –

1. Set Up Plumbing Business Goals

Before starting a plumbing business, you must justify the type of goal behind your decision. Are you starting your business to gain profit or for a flexible profession? You must be clear about it. Additionally, you must decide on the goal for your business success. Also, you must be clear on short-term goals and long-term goals.

2. Establish Business Planning

Initially, you sketch out a proper plumbing business plan. It must cover the steps, you need to execute and turn the statements into real actions. The core benefit of planning is a systematic pipeline or structure. Hence, fewer chances of issues and complexities in the business.

The plan for the plumber business includes the following:

• Business name logo and contact information
• Overview of the business
• Details of the plumbing services that you offer
• Define the target market
• Marketing strategies
• Funds and investment planning

3. Define Your Niche

Before initiating your business, you must define your niche. The plumbing company is also full of different niches that need different skills to deal with. Some of them are listed below:

• Detection of a slab leak
• Water filtration
• Installation of a water heater
• Drain cleaning
• Installation of a fixer
• Testing and repairing backflow

4. Training and Qualifications

People would like to choose well-qualified and trained professionals. For this reason, plumber business professionals should take proper training to get qualified. They can acquire extra certified training to add more weight to their profession. However, the training procedure may be different from one state to another state.

5. Research Your Target Audience and Location

Whenever you think about how to start a plumbing company, you must know the target customers and the market where you will provide the service. Conducting research makes it easier to gather up-to-date market information. Meanwhile, you will know which plumbing services are in high demand.

Following are the steps to research the target market:

• Build up relationships with other plumbing professionals to know which types of plumbing services are in demand.
• Connect with homeowners, commercial property owners, and contractors to discuss business chances.
• Take the feedback from your customers about your plumbing service.

6. Financial Security

Every business needs a handsome amount of capital to run on the right track. The need for funds is always in demand because you invest in buying equipment, taking business loans, or paying an insurance premium.

Let’s check more details on it –

Credit card – A business credit card is another source of funding during the initial days of a business.

Government Programs – Some funding programs are run by local government agencies to offer capital help.

Business loans – Professionals can opt for business loans from recognized banks and financial agencies like Fudera and OnDeck.

7. Purchase the Right Plumbing Equipment

Plumbing businesses are incomplete without the use of equipment. For this reason, you must have some funds available to buy plumbing tools. If you’re working with a limited budget, consider purchasing second-hand equipment. But assure, those types of equipment are in good condition.

Some of the essential equipment is listed below:

• Pipe and tubing benders
• Pipe wrenches, cutters, and threaders
• Inspection cameras
• Drain snakes and augers
• Plungers
• Vehicles for transporting equipment and tools

8. Get the Right Invoicing Tool

Simplifying your invoicing process is a big need for your business. That’s only possible with the right invoicing tool like Moon Invoice. This invoicing software offers 66+ customized invoice templates. Additionally, Moon Invoice supports 100+ currencies and 15+ integrations for payment gateways.

This billing software can reduce your workload by offering a plumbing invoice template with ready-to-use designs and fields. Create your accurate plumbing invoice effortlessly in less time. Also, you can choose the right plumbing estimate template to streamline your estimation.

Professionals are no longer into making invoices with extra labor. With automation, you can save time by generating unlimited invoices. Also, Moon Invoice is cost-effective because of free signup and free download of templates. Create a neat & catchy invoice in 60 seconds in formats like Word, Excel, Sheets, Docs, and PDF.

9. Business Registration

In the strategy of starting a new plumbing company, never think about your business without proper registration. Whatever your region is? You must have registered business as per the local rules. However, the registration process and terms may vary from region to region.

You have the option to register your own plumbing business as either an LLC (Limited Liability Company) or an S Corporation (S Corp). Before you file the paperwork to register your business, make sure the flow of everything is through a Certified Public Accountant (CPA).

Registering your business and proper documentation helps you during the taxation process. Also, it makes the business legal.

There are three main components to registering your plumber business:

Business Name

Finalize a unique business name that is close to your business. Additionally, it should not be trademarked by any other plumbing company. You can register your business name with the Secretary of State’s office.

Business Structure

Several business structures are there like LLCs, sole proprietorship corporations, etc. The implications are different for each structure.

Legal Requirements

Securing your Employer Identification Number (EIN) from the IRS is a legal requirement for plumbing business. Always concern your local chamber of commerce.

10. Acquiring License

A plumbing license is another thing you need to run your business officially. This is a valid approach that proves your compliance with the business guidelines of the state. Here are some types of licenses for plumbing businesses –

Master plumber – You can be a plumbing business owner in many areas.

Journeyman plumbing – A plumber professional can work independently but cannot own a plumbing business.

Plumbing contractors – This license allows you to bid on plumbing projects.

A licensed plumber is always good to run a business efficiently.

11. Get Insurance

Business insurance is necessary for covering the loss during any accident and damage. Various insurance policies are available, including the following –

• Commercial auto insurance
• Compensation insurance for workers
• Commercial property insurance
• General liability insurance

You will need insurance for your vehicle or workers. For this, you can contact your bank or any reputable insurance company. The need for insurance will depend upon your needs and business size.

12. Setting Up Price Strategy for Your Plumbing Service

Pricing format for your service is crucial but how to price plumbing jobs? You can establish a pricing format after proper market research and your service scope. For the right bidding, consider labor costs, material costs, equipment costs, and overhead costs for the proper profit margin. Check the prices of other plumbing companies for a better insight.

There are two methods to set proper pricing for your plumbing service.

Time & Material

In this pricing model, you don’t have straightforward costs to disclose. You only present an estimate based on the hourly rate, traveling cost, and material cost. This is a flexible pricing model because it depends upon the job duration. If the duration is long, the cost will be higher.

Flat Rate Pricing Model

This kind of pricing model presents upfront pricing that a plumber business can offer. Customers also get an exact and clear picture of the price. Remember to keep your pricing balanced. Setting it too low or too high can be risky.

13. Hire Technicians and Build a Team

You will need a proper team when your business expands and grows. That is what compels you to hire technicians who handle the work. The wages of the team members will be another investment factor. Moreover, there could be an investment of time and money in giving training to your plumbing employees.

You can hire technicians by advertising your recruitment in newspapers or through online mode.
Focus on the following points before spreading your recruiting words –

• Type of manpower you will need in your service
• Prepare the job description with well-defined roles and responsibilities
• Outline the interview questions that you ask your candidate.
• Promote the hiring advertisement.

14. Market & Promote Your Business

Do you think that without proper marketing, your business will be successful? Probably not. References will work when you are at the initial stage of your journey. However, you need to follow a proper marketing strategy to grow your business and gain popularity in the market.

You can follow two types of marketing strategies:

a) Offline marketing

Offline promotion is based on the traditional method. You can advertise your business through newspapers and local magazines.

b) Online marketing

A popular type of advertising and gaining reach. Professionals are now following online promotions flow. This kind of promotion includes –

i. Website Promotion

To gain your online reputation, you need to build a professional website. WordPress, Wix, and Squarespace are popular platforms to create personalized websites. The coolest thing is there is no need for coding knowledge to handle them.

Key points while making your business website:

• The website should load fast (ideally 3 seconds).
• Add a CTA wherever possible
• Compatible with mobile and desktop
• User-friendly interface
• No complex navigation

For proper website promotion, you can hire SEO experts. In this case, also you have two options – Promote your site with an organic strategy or have a paid promotion (PPC). However, you must promote it locally in your area first.

ii. Social Media

The influence of social media is widely acknowledged by all. You can also utilize the same for your plumbing business.

Create posts on your small business plumbing services and promote the same on social media platforms like Facebook and Instagram. Additionally, you can promote your business in video form on YouTube.

For the plumbing business, you can create post as:

• Tips to maintain your plumbing
• Events of your company
• Volunteer projects
• Employee Milestone
• Customer reviews

Verdict

Now, it’s time to close the discussion on steps to start a plumbing business. By following the above strategy, you can establish a well-performing business. Execute your process step by step for the proper flow of operation. The plumber business is demanding. So, choosing this profession is quite profitable.

Frequently Asked Questions