How To Start A Plumbing Business? [Steps + Essential Tips]

The plumbing industry is becoming a golden goose. Its market size was valued at $75,042 million in 2016 and will reach $1,12,427 million by 2023. The plumbing industry is growing at a CAGR of 6.0% from 2016 to 2023. If you dream of starting a plumbing business, then what are you waiting for? Now is the time to make this dream a realization.

But, how to start a plumbing business? That’s where many aspiring entrepreneurs hit a roadblock. Don’t worry, as this blog will provide you the answer to that question. By the end, you will be armed with the necessary knowledge to start your own plumbing business.

What is a Plumbing Business?

Plumbing is a type of business that does not require multiple employees, supplies, or equipment. Just by having some essential tools and a truck to transfer the equipment, you are good to go with your plumbing business.

Plumbers are the heart of the plumbing company. Plumbing businesses need to make sure that potable and water pipes in the construction and plumbing companies are well-maintained and working correctly.

How to Start a Plumbing Business?

11 Steps on How to Start a Plumbing Business

  1. Create Your Plumbing Business Plan

    For starting a plumbing business, you must be ready with the blueprint. The blueprint typically helps you to map out the essential requirements of your new plumbing company.

    In simple words, you need to take into consideration the following factors when you are planning to start a business:

    • Startup and ongoing costs
    • Identify the target market and business partner
    • Customer’s charge
    • Opt for the legal plumbing contractor
    • Name your business

    For starting your plumbing business, a business plan plays a vital role in dealing with opportunities like creating a business foundation, business model, and even raising funding.

    As an entrepreneur, it becomes your sole responsibility to create a business plan in such a way that it helps to cover essential information on the trade businesses to a great extent.

    Generally, you will come across multiple samples of business plans that help you to start your business. In addition to it, it includes detailed information on how you organize your business.

    • Define the objectives and goals of your business
    • Analyze the market research and client feedback
    • Identify the Initial start-up costs
    • The pricing structure of equipment, materials, transportation, labor, and payroll for construction projects
    • Finalize the additional technology to include in your marketing plan
    • Identify the projected costs and revenues in business ideas
  2. Identify List of Service Offerings

    Once your business plan is ready, you need to search for the local plumbing services currently hitting the market. Because to be on the top of the competition, you need to identify your niche and goals for your plumbing business different from them.

    The standard services the plumbers typically provide are fixing leaky pipes, repairing wash-basin sinks, installing new radiators, and others. So, your niche is an essential asset for generating more revenue in your small business.

    By analyzing the other competitors’ services, you need to do more research to identify the gap and fill it by introducing a list of the services that enhance your business productivity.

    The services you select should be the best, whether your niche is a small or large house, commercial area, hospitals, warehouses, or large buildings.

  3. Create Your Pricing Plan

    The most essential part of starting a plumbing business is to make a decision on the pricing structure for different perspectives like:

    • The annual salary of your plumbers
    • Price change impact
    • Revenue per customer
    • Market position
    • Market share

    Once you’ve decided on such pricing strategies, you need to consider the cost of providing the services to your customers. And for that, there are two particular costs associated: fixed costs and variable costs.

  4. Get Essential Plumbing Equipment

    A plumbing business without equipment is of no meaning. You must have equipment in your business like:

    • Assorted pipes and fittings
    • A large bucket to store fittings
    • Pipe wrenches
    • Reciprocating saw
    • Circular saw
    • Whole hog right angle drill
    • Cordless screw gun
    • Propane torch
    • Cast iron pipe cutter
    • Extension cords
    • Pipe dope or Teflon tape
    • A laptop computer
    • Office equipment
    • Mobile phone
  5. Select a Catchy Business Name and Opt For Legal Business Entity

    Naming your business is a very important point that you need to consider while starting a new plumbing business. Remember that your business name must be unique and catchy.

    Try out your business name and check whether your business name is valid or not.

    Once you have finalized your business name, you should opt for a legal entity for your business.

    • A limited liability company (LLC) should suffice for a plumbing company, but you also have the option of starting a corporation.
    • EIN: Once you’ve established this entity, you’ll register for an employer identification number (EIN) on its behalf. This is a tax identification number that you’ll use for anything that has to do with finances.
  6. Earn Your State-required Certification and Plumbing License

    To obtain the certification for your plumbing business, you need to first perform licensing, permitting, and certificate services.

    Apply for certification

    Along with the certification, you must have a plumbing license issued by the government or secretary of state; otherwise, you must be ready to pay hefty penalty fees.

    You need to have a legal plumbing certification from a trade school or by doing an internship. By implementing the following methods, you can easily obtain a plumbing license.

    • Get Certified

      The plumbers can eventually register for trade schools or certification programs only if they have cleared their high school diploma or GED.

      Usually, a maximum of two years is involved in the course. It includes studying math, cleaning toilets, understanding water and waste systems, building codes, piping methods, trade documentation, welding skills, and safety techniques in the job sites.

    • Be an Apprenticee

      A plumbing apprenticeship helps you build a strong network among plumbing associations. It is usually paid hands-on training under a master or licensed plumber to gain experience.

      Such apprenticeships are a mandatory facet to grab an advantage to become a plumber, and its life span is from two to five years.

    • Pass your license exam

      Once your apprenticeship is ready, you can apply for the licensing examination. Different regions have different methods of taking an exam trial based on requirements and length.

      Even some regions require you to renew your license at some time interval. You can now work as a journeyman plumber once you receive your licensing requirements.

    • Become a Master Plumber

      You will come across a master plumber to start a new business in many states. You can take up to five more years to earn your master plumber license of on-the-job training and certifications.

    By using a certification program, the plumbers can easily enhance their skills, serve the customers professionally, and also include such details in their job description for future purposes.

  7. Open Your New Business Bank Account and Apply For a Business Credit Card

    A business bank account helps you stay legally compliant and protected. It also provides benefits to your customers and employees.

    The primary aim of having a business bank account is that you can

    • Protection
    • Professionalism
    • Preparedness
    • Purchasing power

    To open a business bank account, you must have the following documents along with you:

    • Employer Identification Number (EIN)
    • Your business’s formation documents
    • Ownership agreements
    • Business license

    Once you’ve started your business bank account, you can apply for a business credit card. You need a business credit card because it keeps the business and personal accounts separate.

  8. Get Insurance For Your Plumbing Business

    Insurance is a boon for many service businesses as it gives protection to you and customers without paying for additional damages. Insurance covers when something breaks in a customer’s home/office.

    Moreover, you can also opt for plumber insurance policies covering essential medical costs, equipment damages, and other repairs. For example, if any material is broken, insurance helps you make the failed material/part payment.

  9. Assessing Your Financing Alternatives

    When you plan to start a new business, one of the best options is to spend a couple of years saving your money and plumbing equipment.

    What happens if you are not able to save? First, you need to opt for business financing options. Initially, new businesses typically don’t qualify for regular commercial loans because of minimal revenue.

    There are other common alternatives to commercial lending like:

    • Startup loans
    • Microloans
    • Friends and family loan
    • Small Business Administration loan
    • Home equity loans
    • Business credit card

    An alternate option is that you can benefit from assistance from external plumbing companies and even the government. You can also look for legal aid from state and local municipalities.

  10. Promote Your Plumbing Business To Get More Customers

    On an initial level, you may not have a sufficient budget to promote your company either on TV, newspaper, or even radio. So, for such cases, word-of-mouth is the best advertising vehicle.

    By using word-of-mouth referrals, customers find it relatively easy to select a plumber. In addition, you can create loyalty programs for the customers by offering discounts, offers, or even free upgrades for every visit and referral.

    You can even purchase phone book advertisements and distribute business cards to expert professionals in supportive industries like electricity and general construction.

  11. Take Care of Legal Aspects

    For starting a plumbing business, it becomes a mandate to submit essential legal documents on time.

    There exist many plumbing clearance certificates that need to be submitted to a construction company. These documents should be provided to the legal authorities for starting a plumbing business without any obstructions.

    As per the different states, you must have the following documents to start a business:

    • Plumbing license
    • Contractor’s license
    • Plumbing permit
    • Plumbing forms
    • Proposal

    Apart from these documents, a tax identification number (TIN) and liability insurance must be available. A retail license is also mandatory if you plan to sell plumbing equipment like pipe wrenches, steamfitters, or other parts or products.

    As a part of legal documents, trademarking your company is an essential metric. A business logo identifies your company’s trademark. So, design an attractive logo from professional designers for your plumbing startup.

You have seen the necessary information that will help you to start your plumbing business with ease. It will even be helpful for you to manage your plumbing business operations that need plumbing tools and equipment.

Manage Your Plumbers Efficiently

FieldCamp is an FSM software that lets you share all the essential job details like client location, plumbing work description, tasks, and even notes from one place.

How To Promote & Market a Plumbing Business?

Once your business is well-settled, it’s time to get more and more clients in your business. Below are the essential tips you need to follow to promote your business and enhance more customers in your business.

7 Tips to Promote a Plumbing Business

  1. Build a Responsive Website

    Website is an essential weapon in promoting your plumbing business to a great extent. In addition, websites help in searching for a nearby plumber.

    Do you know that you can create your own business website in a few minutes?

    Yes. You read it right. There are many tools available on the market which make it easy to create your business website quickly.

    With the website’s help, it becomes pretty easy for you to display the list of plumbing services, share the price structure, and view the contact details. Moreover, you can make your website mobile-friendly so that customers can easily view the website on phone screens.

    Generally, more than 52% of people use online searches from mobile phones. If your website is not responsive, the customers will not read or navigate to different site pages.

  2. Create Location Pages

    As a business owner, you need to include your service areas as per city or country. So, you need to consider different pages in your business structure based on each site or location.

    By creating different pages, you can eventually increase business ranks, specifically in terms of the local search when users type into Google.

  3. Claim Your Google My Business Profile

    Google My Business profile is one of the best marketing strategies that you can apply to help customers find your plumbing business online.

    Create your Google My Business Profile Now!

    • Enter your business name and category.
    • Then, you need to select whether you want to add a location your customers can visit.
    • Provide your business address.
    • Give your business location.
    • Just provide the relevant answer that Google My Business asks you.

    With the help of Google My Business, you can easily:

    • Add your plumbing business information on Google Maps, Search, and many other Google services
    • Create and have access to a Business profile on Google
    • Business information management is done with proper accuracy

    Once the verification for business owners is done from Google, it becomes relatively easy to update information, images, and essential contact information usually displayed in search results.

  4. Create Social Media Pages

    Nowadays, social media pages are becoming a boon for many online businesses to build a large scale.

    On an initial level, you can focus on social media platforms used on high priority by the customers. Some of the best examples that you can include are:

    • Facebook: Facebook is nowadays being used by almost every person in the world. You can even create your business Facebook page and highlight your services and expertise to get more customers.
    • Instagram: Instagram is one such social media platform that too is booming the world now. You can post your business details by keeping the creative images for your service offerings.
    • Twitter: Twitter allows you to tweet your business information.

    One of the best recommendations is that you need to make sure that your NAP (name, address, phone number) is accurate across every site page. In addition, it helps you to include backlinks to your site to enhance user traffic.

  5. Start a Blog to Highlight Your Expertise

    A blog is a learning approach or a guide to provide the essential information related to plumbing systems to the clients.

    Once you add an innovative blog to the site, your clients can quickly grab the information related to plumbing jobs and highlight your business expertise. To enhance the online reputation, you need to perform regular blogging updates.

  6. Create Expert Plumbing Content

    To enhance your plumbing business marketing plan, you need to create engaging content that defines your services and products in various forms like blogs, social media pages, Instagram, or Youtube videos.

    With such content marketing, you can quickly get new customers and even the workers who want to work in your plumbing business. In short, it is a great platform to enhance your business growth.

    Below are some of the examples that you can try out to make your content the best one:

    • The top 5 common misconceptions about plumbing
    • Common DIY plumbing mistakes and how to fix them
    • What makes [your business name] different?

    If writing is not your profession or hobby, you can also record a simple video using a mobile phone. Nowadays, videos are the biggest weapon to enhance your business productivity, customer base and attract your target audience.

  7. Use Customer Service as a Marketing Tool

    Customer service plays a vital role in many businesses as it offers cost-efficient, effective, and most crucial long-term business growth.

    By having an online presence of a plumber at any time, you can improve your business productivity. So, customer services are essential for your business in two possible ways:

    • There are more chances of repeat business and that too with cheaper and more valuable future perspectives.
    • You’ll receive happy customers that will spread the word and send personal referrals.

    The workers can easily send a simple “on my way” text message or reminder from their mobile phones. So, the customers feel relaxed by keeping the door unlocked can go a long way towards making your visit smooth and successful.

    Finally, once the job is completed, the business can send a follow-up email to feedback from the customers.

These essential plumbing business management tips will be helpful for you to enhance marketing strategies in your plumbing business. Take your valuable time to view every tip mentioned, and if you have any additional questions in your mind, we have shared some important frequently asked questions in the next section.

Get Real-Time Updates of Your Plumbing Business Activities

FieldCamp is an FSM software that allows you to create and manage the job schedule for your plumbers and automate your business operations.

FAQs

Yes, plumbers do make good money, but that depends on the state they are working in and their plumbing work experience. On average, however, the median income for plumbers, pipefitters is over $50,620 annually.

The plumbers can earn $25 per hour, but it ranges from $16 to $35 for a journeyman based on working area.

To open a plumbing business, you need to consider the following costs:

  • A used van or service truck
  • A certification cost
  • Business taxes
  • Plumbing equipment

It entirely depends upon the service requirements that customers need. If it’s simply a small installation, then it will be a fixed charge as decided by the company. But, if there is a major issue, then it depends on the parts or services.

Conclusion
Starting a new plumbing business from scratch is very easy, unless and until you take care of the steps mentioned in the article and you are good to go with your new business.

We have even seen the promoting activities that help you to get more customers in your business with ease and enhance your business strength. Moreover, you need to make your plumbers ready to deal with any situation that arises while providing the services to the customers.

To make it easy to automate your business operations, you need to include FieldCamp, a field service management software, in your plumbing business. You can easily manage the schedules and track your plumber’s activities while they are working on the job site.