Becoming a plumbing business owner is exciting yet so overwhelming at the same time. You can create a project something that allows you to grow as a person. Creating a plumbing business plan can take years, but what if you pull it off? Is it worth it?
Most plumbing businesses start the same way. You may have started as a contractor of another plumber or an apprentice. If you're ready to go down your own path, we're here to help. The industry is huge today, so you must prepare for a lot of competition, obstacles, and opportunities.
Learn how to start a plumbing business with this post. You'll adapt the plan based on the plumbing services you'll offer. By the time you're finished with this page, you'll have all the knowledge necessary to start your journey and create the ideal company. Blue Collar Websites can also help with how to start a landscaping business as well.
What Are the Benefits of Starting Your Own Plumbing Business?
A lot of plumbing business owners go through many obstacles to get to where they are. It sounds scary, right? However, that doesn't mean you must suffer to get to the top.
Let's start with the great news. A plumbing business comes with plenty of benefits if you can start it the right way:
Flexibility
You're the boss, so what do you want to do with your company? This is one of the main benefits of creating a plumbing business. You're responsible for calling the shots, choosing the jobs you want, and evaluating how you want to complete each project.
Unfortunately, this also means the success of the business is also on you. If you're careful with what you do and create a balance between freedom and responsibility, you'll be okay.
Specialization Opportunities
Feel free to choose between specializations or general plumbing. These businesses cover several areas, so which one do you feel more interested in? You can focus on residential services, repairs and installations, commercial projects, etc.
As your plumbing business grows, you can add new services so that you get and retain more customers.
Financial Freedom
There's nothing better than the feeling of earning more money than you were getting before. First, you have to focus on earning your investment back. When you start getting profits and growing, you'll know you made the right choice.
How to Start a Successful Plumbing Business
Let's get to the good part! With a great business plan, you'll start seeing excellent results. It doesn't matter if you have a big or small budget for your business; you need a solid strategy if you want to succeed.
These 10 steps will guide you through most of the essentials you can't forget about when starting a plumbing business:
1. Get a Plumbing License
The key to success is to do your job right. Make sure to get your state-required plumbing certification before you create any plan for starting your plumbing business.
Not only is getting a certification necessary for starting a business, but it can also give you the skills and experience necessary to get ahead of the competition in many cases.
You'll get your license by following three steps:
Get Education: Either graduate from high school or get a GED. Once you're done, make sure to go to trade school or college. This ensures you learn the technical requirements that are necessary for the plumbing industry, including building codes, design, and more.
Become a Plumbing Apprentice: When you become an apprentice, it means you'll work under a licensed/master plumber. Not only does this help you prepare for the future, but it also gives you the experience necessary to pass your exam. Depending on the case, this apprenticeship could last from two to five years.
Pass Your Exam: Check your state's license exam requirements, as each one has different passing criteria. Once you pass the exam, you may start working as a self-employed plumber or a journeyman. Some states may require you to get a master plumbing license before starting a business, which will require you to get extra training.
2. Set Realistic Goals for Your New Plumbing Company
You're ready to take the plunge and start your business, but where do you go from here?
It's normal to be lost, so make sure to set small, realistic goals first. You can work your way up as your business grows. Although short-term goals may not seem like much, they will make you feel like you're accomplishing so much more at first.
Some great goals you can set for yourself include:
Hiring an employee within a year
Having a service vehicle within two or three years
Putting a marketing team together within a year
Earning 20 positive reviews online within the first year
These are just examples. Remember to set goals depending on your situation and what you consider appropriate for your business.
3. Do Proper Market Research and Look for Your Target Customers
The bulk of your research will be here. Most of the information you'll get in this section will be crucial when creating your business plan.
When you do market research, you'll understand what your competition is doing, what skills are in demand, and who your target customers are.
Start by looking up companies that are offering services similar to what you want to do. Take notes of what you like and also the things you would want to improve or change.
Although it may seem difficult, try networking with other business owners. This will help you learn who your biggest competitors are. It will also give you more information on what specialties are in high demand in your area right now.
You can start reaching out to homeowners, property owners, or contractors and discuss future projects. At this stage, you can learn more about how their experience with past plumbers has been, which you can use to your favor.
Once you're finished, you'll have a better idea of where you want to take your business. This will help you come up with your unique selling point (USP) too. The USP is what makes you different from the rest. It could be that you offer emergency services or that you work with custom repairs and designs. Take your pick!
4. Write Your Business Plan
A business plan is a detailed document that includes everything you (and investors) should know about the project. It's important to make it attractive enough. If you're looking for financing, a solid business plan could be key.
Your business plan should include the following:
Cover page with basic information about your business
Executive summary with an overview of the project, including your USP, how much funding you need, etc.
Business overview
Market analysis and target consumer
Competition in your area
List of services
Pricing structure
Marketing plan that explains how you will attract new customers to your business
Financial plan
Take your time to write your business plan. It should cover virtually every aspect of how your project will work, and you should avoid as many mistakes as possible.
Pay special attention to the executive summary and the marketing/financial plan. They are some of the most crucial aspects of the strategy that will interest you and any potential investors.
5. Consider Financing Options
You need a considerable amount of money to start a plumbing business. Here's what you usually must account for:
Business license and registration
Business insurance
Plumbing business software
Tools/inventory
Uniforms
Websites/marketing
We're talking about $6,000-8,000 at a minimum to start your business, and that doesn't count education and certification. If you want to play it safe when starting your business, you may want to consider financing options. They will get a lot of stress off your shoulders.
Some options include:
Loans: Ask your bank for a small business loan or line of credit. If possible, you may also ask a family or friend for a startup business loan. Remember to check the guidelines for the loans before applying.
Government funding: You can ask the Small Business Administration (SBA) for funding. It has a few programs that may interest you.
Business grants: Although business grants aren't too easy to get sometimes, you may consider one to fund your company if you have one available.
Credit cards: Do you have a business credit card with a low interest rate? It may be perfect to start your plumbing business, as long as you pay it off at the right time.
6. Invest in High-quality Plumbing Equipment
Skills will get you far, but most customers also value the equipment and materials you use to help them. When you go to stock your plumbing vehicle, make sure to get all the essentials to avoid running out to the hardware store for emergencies. Avoid investing your money in poor-quality equipment, as you'll likely have to spend money again to replace it in the future.
If you need expensive equipment for specialty jobs, consider renting it from reputable places until you can afford it.
Some basic equipment that can't be missing from your plumbing set includes:
Safety Gear
Goggles
Heat shields
Knee pads
Gloves
Hand Tools
Pliers
Grips
Pipe cutters
Crescent wrenches
Handsaw
Cordless Tools
Saw grinder
Drills
Impact driver
Screwdriver
Inventory
Inlet valves
Thermostats
Elements
Fittings
Plastic and copper pipes
7. Register and Insure Your Business
You can't forget about the legal aspect of your business. This will get you out of trouble with the law.
If you want to avoid as many problems as possible, consider hiring a lawyer. They will give you all the information necessary to set up your business in your state.
Here's an overview of what you must do to register your business:
Consider your business structure: Choose between a partnership, sole proprietorship, or limited liability company.
Register your name: By this stage, you should already have a name in mind. Run a trademark search to ensure no one is already using it legally. Once you're done, register your business name with the government.
Apply for licenses and permits: Apply for the necessary permits to run your business. Check for licenses required at the local, state, and federal levels.
Apply for an "Employer Identification Number (EIN)": The EIN is necessary if you plan on expanding in the future and getting employees or partners. Get your EIN from the IRS, as you'll need it during tax season.
The next step is to get insurance to protect your business and your clients in case anything happens. This includes accidents, injuries, or other damages. You'll greatly benefit from a policy that includes:
Commercial auto insurance
General liability insurance
Workers' compensation coverage
Commercial property insurance
8. Create the Perfect Marketing Strategy
Marketing can make all the difference in your success, so never ignore the different strategies you can implement today. Whether you consider email marketing, social media channels, or paid ads, make sure to create a solid plan that focuses on delivering the right message.
The great news is that, at least in the case of social media marketing, you don't have to spend money. Create an online community while providing valuable content, and you can work your way up from there to spread the word about your business.
9. Build a Website for Your Plumbing Business
A website can be an excellent way to drive traffic to your plumbing business. First impressions matter, so make sure to leave this task to a professional team that can give you the perfect website for new clients to visit.
Let the team at Blue Collar Websites give your company a fresh and unique image that will transform the way people view your brand. For more information, website designers for plumbers may be able to help.
10. Work on Your Reputation
Once you've launched your business, all that's left is to work on it and make it grow. Work to get your first customers by focusing on marketing, investing in ads, and more. Remember to ask for feedback when you finish your projects, as those comments are what will get you to become better.
If you're known as someone who listens to the community, you'll be successful sooner rather than later. Use that success to grow and specialize, hire technicians, and more. Blue Collar Websites can also help with how to start an hvac business.
Essential Tips to Consider for a New Plumbing Business
You now have all the information necessary to build a successful business. Never forget to be thorough with each step, and remember to set realistic goals.
Here are some extra tips that will help you throughout the journey:
Get a reliable team you can trust. Make sure to run thorough background checks on everyone to ensure you only work with professionals.
Not everything is work. While you'll be excited to focus on your new business 24/7, remember that taking a few days off is also important. Find opportunities to take time off, as this will help you come back refreshed and ready for more.
Don't wing it. Always find the right strategy, and take the time to execute it correctly.
Reward yourself and your employees. Appreciation can go a long way. Always make sure that everyone on the team feels appreciated and taken care of, including yourself.
Bottom Line
It may be scary to start a new plumbing business, but it's even scarier not to try and think about what could have happened if you did.
Use all the tips mentioned on this page, and rest assured that you'll create the ultimate plan that will get you to success. Remember that you'll always be learning something new, so take each day as an opportunity to adapt and become better at what you do.
Commentaires