Starting a plumbing business can be a rewarding and lucrative career choice, but it requires careful planning and a solid understanding of the plumbing industry. In this article, we'll cover the steps you'll need to take to start your own plumbing business, as well as some tips on how to optimize your website to help attract potential clients. Here are ten steps to help you start your own plumbing business:

1. Determine your target market

Before you start your business, it's important to identify who your target market is. Are you going to focus on residential or commercial clients? Do you want to offer emergency services or only scheduled appointments? Knowing your target market will help you tailor your marketing efforts and determine the services you want to offer.

Take the time to evaluate market trends in the state where you intend to open your business. Speak with other tradespeople in the area to identify major competitors and which plumbing specialties are in highest demand. If possible, look for opportunities to fill an underserved void in the market where your expertise is hard to find.

You’ll also want to think about which potential clients you expect to become a primary source of your revenue. Consider their needs, concerns, and current relationships with other plumbing companies or contractors. Will your customers largely be residential clients with short-term projects or construction companies with more predictable contracts and timelines? Knowing your audience well before opening the doors to your business will make it much easier to gain a foothold in the industry.

2. Create a business plan

A business plan is a written document that outlines your business goals, target market, marketing strategy, and financial projections. It will serve as a roadmap for your business and help you stay organized and on track.

Every new business needs to establish basic benchmarks for success that clearly define its overarching objectives. Try to imagine what your plumbing business will look like in three years and exactly how you intend to get there. It may help to work on drafting a mission statement that outlines the values of your plumbing business and the unique goals you hope to achieve in the future.

Remember to keep your objectives reasonable and achievable early on. While you may want to position yourself as the top plumber in the metro area right away, the reality is it will likely take time to garner the same level of trust as other companies with decades of experience.

Having this information organized on paper will help dispel any uncertainties before starting your new business. While a professional business plan consists of many parts, here are three vital sections you’ll want to focus on:

Executive summary 

In this portion, you’ll provide a concise summary of everything contained in your business plan. This section is probably the most important since investors and banks will often review an executive summary first to determine the viability of your business model. 

Topics in the executive summary should include the scope of services you plan to provide, income projections, overhead expenses, staffing requirements, and more. The goal here is to highlight the main takeaways from your entire business plan in as few words as possible.

Marketing analysis

This part defines how you plan to advertise your services and how much money you will devote to marketing. Discuss the types of promotional offers you want to roll out and why customers choose to do business with you instead of the competition. Additional information to convey here should include an evaluation of industry trends and how your company’s pricing compares to other plumbing businesses in the area. 

When estimating your marketing costs, try to be as precise as possible, especially if your company plans to explore paid advertising like radio commercials or pay-per-click (PPC) banners.

Financial outlook

This section should clearly state the costs and expected revenue for your new plumbing business. Take the time to create a balance sheet conveying your estimated cash flow, taking into account factors like state and federal taxes, unpaid invoices, or any unexpected expenses that may arise. With all this information together, you should be able to create a somewhat accurate budget for your plumbing business for banks or private investors to evaluate.

If you find that writing a business plan from scratch is challenging, it may help to use a business plan template online to get you started. These templates take care of organizing the basic structure of your proposal into prepopulated categories, allowing you to fill in the blanks with the appropriate information.

3. Obtain licensing and certification

In order to start a plumbing business, you'll need to obtain the appropriate licenses and certifications. This will vary depending on your location, but you'll likely need a plumbing contractor's license and potentially other certifications depending on the services you plan to offer. While some prospective plumbers choose to work under an apprenticeship to earn a plumbing license, others prefer to study at a local trade school.

To legally work in many states, you’ll need to acquire a plumbing contractor license or master plumber certification after receiving at least three to four years of training through an accredited journeyman program. Licensing requirements vary widely from state to state, so you’ll want to check with the relevant governing bodies in your state before opening your business. Additional requirements may include proof of liability insurance and a minimal bond amount if something goes wrong.

With all these prerequisites out of the way, you’re ready to register your plumbing business with the local government. Be sure to review how business taxes work in your state and consider forming an LLC to protect your personal assets from business debts or liability claims.

4. Find a suitable location

If you plan to run your business from a physical location, it's important to find a suitable space. Consider factors like location, size, and cost when selecting a location for your business.

When you first start your plumbing business, there is nothing wrong with keeping your costs down and running your business from home. In fact, this may be the wisest thing to do starting out considering cash flow will be lower when you start. Consider starting from home and then getting a physical location when you have the income that allows you to have a separate space!

5. Get necessary funding

The truth is that starting a plumbing business isn’t free. It requires start up money. You need funds to market your new business and get the equipment and tools you need. There are a few ways to go about doing this.

Bootstrap it

Bootstrapping a business means that you fund the business yourself. Maybe you have some savings you can use to get your business up and off the ground. If this is an option for you, we’d highly recommend it. Growing a business on your own and getting it profitable is a great feeling and one that many successful plumbing companies have done.

So what if you don’t have the money to bootstrap your plumbing company? That’s where the next option comes into play:

Outside funding

So you’ve decided you need help funding your new plumbing business. That means it’s time to begin seeking financial support from banking institutions, venture capital firms, and other sources of investment. Schedule meetings with decision-makers and present your business plan for consideration. Be sure to set up a business checking account beforehand to ensure your private assets and company income remain entirely separate. Doing this will lend more credibility to your business and protect you from potential liabilities in the future.

Once you find an interested party to invest in your new plumbing company, you can start thinking about how you’ll use the funds. The plumbing equipment you’ll need for the work ahead may include pipe components, augurs, chemicals, hand tools, and uniforms for staff. You may also want to buy a reliable truck or van to use strictly for business purposes.

6. Build an engaging website

Few businesses can thrive today without building a robust presence online. First, work on building a website that provides all the relevant information your customers need, including pricing, hours of operation, and the types of plumbing services you offer. Consider publishing informative blog posts or how-to articles related to the industry to make your website easier to find. You can generate more interest locally by combining geo-specific keywords with popular search terms throughout all your content.

Deploying keywords and using search engine optimization (SEO) will ensure search engines like Google designate your business as a local authority and raise your rankings on local search engine result pages.

We know what you might be thinking. I’m a plumber, I don’t know how to make a website! We hear you. We specialize in building professional websites for plumbers and help them with all things digital. If you need help getting started with a website, get in touch with us.

7. Get listed on Google

Since most customers search the internet to find new businesses, it’s critical to create a Google Business Profile as soon as possible. This profile provides a lot of helpful information for customers at a glance — including work hours, location, and your company’s telephone number. From your Google Business Profile page, people can navigate straight to your website for more specific details about your company and the services you provide.

Given time, customers will begin to leave reviews of their experiences on your Google Business Profile as well — a feature that can help differentiate your plumbing business from lower-rated competitors. 

8. Purchase necessary equipment and supplies

As a plumbing business, you'll need a variety of equipment and supplies, including pipes, fittings, tools, and plumbing fixtures. Research the best options for your business and budget and make sure you have everything you need to get started.

9. Hire skilled employees

We’re not encouraging you to put the cart in front of the horse here. If you are just getting started, you can be the one man business that does it all! Hiring skilled plumbers will be something you do later on down the road. As your business grows, you very well may need to hire additional employees to help with the workload. Look for experienced and skilled plumbers who can help you provide high-quality services to your clients.

Many times it’s smart to bring someone on for three months of help to see how they are as a worker. If after the three months they provide the value you are looking for, bring them on full time. The three month trial period also allows you to cut ties in a more amicable way if it’s just not the right fit.

10. Develop a marketing strategy

In order to attract new clients, you'll need to have a solid marketing strategy in place. Here is an example of a simple marketing strategy for a new plumbing business:

1. Build a strong online presence: Create a professional website and make sure it is optimized for search engines. Use social media platforms like Facebook, Instagram, and LinkedIn to showcase your services and reach out to potential customers.

2. Offer excellent customer service: Providing high-quality service is key to building a strong reputation and attracting repeat business. Make sure to respond promptly to customer inquiries and complaints, and follow up with customers after completing a job to ensure their satisfaction.

3. Network with other local businesses: Consider partnering with other local businesses to cross-promote each other's services. For example, you could offer a discount to customers who use the services of a local heating and cooling company, and they could do the same for your plumbing business.

4. Invest in targeted advertising: Use targeted advertising to reach potential customers in your service area. For example, you could use Google Ads to advertise your plumbing services to people searching for a plumber in your area.

5. Offer promotions and discounts: Consider offering promotions or discounts to attract new customers and encourage repeat business. For example, you could offer a discount to first-time customers or a referral program to reward customers who refer new business to your company.

(We help plumbing businesses with websites and digital marketing like Google Ads. If you need help with this get in touch with us here.)

11. Set prices for your services

In the early days of a plumbing business, it may be beneficial to underbid other plumbers in your area. This allows you to win more work and develop a good reputation among the community. As your business continues to grow you will be able to raise your rates to match the demand of your business.

Determine the cost of your services by considering factors like your overhead expenses, the local market rate, and the level of expertise you offer. Make sure to price your services competitively while still covering your costs and earning a profit.

12. Stay up-to-date on industry trends and advancements

In order to stay competitive in the plumbing industry, it's important to stay up-to-date on the latest trends and advancements. This could include new technologies, regulations, and best practices.

(At Palm Street we are always staying up to date on the latest tech when it comes to online digital marketing. We love taking this off the plate of plumbing companies so they can focus on what they do best.)

Starting a plumbing business requires careful planning and execution, but with the right approach, it can be a rewarding and successful endeavor. By following these steps, you'll be well on your way to building a thriving plumbing business.

Additional tips for starting a plumbing business

While it takes a lot of time and effort to start a plumbing business, it doesn’t have to be an uphill battle every step of the way. Having access to the right resources and knowledge can make the process much less daunting. Here are a few simple tips that will help your new plumbing company thrive in an increasingly challenging marketplace.

Staying organized

Between invoices, work orders, payroll, and other obligations, it’s easy to lose track of things in the plumbing business. Try to make it a point to systematically archive all your most important documents for easy reference later. 

You don’t want to be stuck searching for a project proposal buried somewhere beneath a pile of employment applications, tax records, and receipts. Create a way of tracking all this information early on and you’ll have fewer headaches to contend with down the road.

Don’t try to do everything alone

In the early days of your plumbing business, you may need to do most things yourself. But as the business grows there is something you’ll need to learn how to do: delegate.

Many times it’s worth it to find a good business partner to start the business with. This allows you to share the startup costs and the workload. Additionally, having a business partner is great because you can encourage each other in the early days of the business when difficulties arise.

Eventually you can make your life even easier by hiring experienced administrative staff to handle incoming calls, schedule meetings with prospective employees, and contact customers regarding overdue invoices. You may also want to think about hiring some additional skilled labor if you find yourself struggling to keep up with work orders.

Remember to take time off

When you can, find opportunities to take time off work for occasional weekend vacations or family trips. Working 10- to 12-hour days can get exhausting rather quickly, so try to delegate what you can to others in your business to reduce your workload. (If there is any business that pushes you to work 12 hour days, it’s plumbing!) While you may feel like you need to micromanage everything to keep the company running smoothly, it’s often better to rely on the support of others for help when you need it.

It’s been said that if you can find someone who can do the job 80% as good as you, you should delegate the task to them. And that can be hard for some!!

Here are some major benefits from taking time off:

Rest and relaxation: Taking time off allows you to rest and relax, which can help you recharge your batteries and feel more energetic and refreshed. This can be especially important if you have a high-stress job or if you've been working long hours.

1. Improved productivity: Taking breaks and time off can actually help you be more productive when you return to work. When you're well-rested, you're better able to concentrate, make better decisions, and work more efficiently.

2. Personal growth: Taking time off can give you the opportunity to pursue personal interests or hobbies, travel, or spend time with family and friends. This can help you feel more fulfilled and satisfied with your life, which can have a positive impact on your overall well-being.

3. Improved health: Taking time off can also be good for your physical and mental health. It can give you the chance to exercise, eat healthy, and get enough sleep, which can all contribute to better overall health.

Look for ways to cut overhead costs

Finding ways to save money will allow you to keep more of your company’s profit and provide a much-needed buffer for times when business slows down. 

If fuel costs on your vehicle fleets are too high, consider investing in more efficient renewable energies like natural gas or electric. To reduce energy costs at your shop, you may also want to invest in energy-efficient lighting or improved HVAC equipment.

Another money-saving idea is to only order plumbing supplies as they are needed instead of stocking up ahead of time. Buying in bulk may seem like a good idea at the time, but you may end up with a shop full of inventory you don’t need and little space to store everything properly. It may also be worthwhile to discuss working with another vendor if prices on equipment, chemicals, and tools get too high.

Reward yourself and your employees for a job well done

After the completion of an important project, show your appreciation by taking the team out for dinner or rewarding them with a gift card to a local hardware store. During the holidays, you may also want to distribute a share of your annual profits as a bonus to supervisors, admins, and employees. 

Giving back to those who make your business possible will encourage them to work harder for the prospect of a potentially larger bonus next year. You’ll also likely have fewer problems with staff turnaround as your team will feel reluctant to leave a job that takes such good care of them.

Start your plumbing business now

Becoming your own boss is scary at first, but understanding what to expect can alleviate a lot of the anxiety. To get started, you need to first do your research. Look into what your local area requires for licensing and training and check out what your future competition is already doing. What plumbing specialties are in demand in your area and how can you fill those needs? By following these steps and tips, you’ll have a much easier time building and marketing a plumbing business that can stand the test of time. Eventually, your company will begin to acquire the talent and client base needed to grow into a trusted, respected leader in the industry.

—

Do you have any tips on how to start a plumbing business? Let us know what they are in the comments below!