How to Start a Plumbing Business
Welcome to the Business Ideas section. Watch this video, I’m going to give you a quick start guide on How to Start a Plumbing Business. Over the last decade, the plumbing service industry has experienced phenomenal growth. If you’re looking to make some money and make a difference in someones life, you should consider starting a plumbing business.
The plumbing industry is expected to increase substantially over the next five years due to the boom in housing and new construction build.
Your business will provide plumbing services such as Toilet Repair, Leak Repairs, Drain Cleaning, Pipe Repair and Replacement, Water Heater Services, Sewer Repair, Plumbing maintenance.
Most plumbing companies make between $90,000 and $150,000 their first year by servicing his 40+ accounts or customers. Most plumbing jobs can be priced per hour or as a flat rate. The average price for plumbing services tends to be between $150 and $500 for a typical job. So, the more jobs you can book, the better and faster your business will grow.
Lots of service offerings, which means a lot of money for you!
Market Size: $1bn
Number of Businesses: 129,302
This Industry Employs: 206,304 people
So, here’s what you’ll need to get started:
Step 1 - Get a Business Plan
If you have no idea how an online business is supposed to operate or maybe you are a first time business owner, I'd recommend downloading a business plan from BPlans.com or getting a custom one created on Fiverr. Their plans outline exactly how this businesses works and what you should expect.
Step 2 - Find a Supplier
There are two methods to start this kind of business. You can start it as a solo business, where you work as the main service provider or you can hire or contract certified professionals to do the work for you. Either way, the supplier research process is still the same for the plumbing supplies you need to buy.
Head over to google and type in these words, "wholesale plumbing supplies" and "wholesale plumbing equipment".
Important: These search results will display companies where you can buy in bulk from. Start researching the cost of plumbing supplies and equipment and take note on how much money you will need to purchase and get you started.
Equipment you will need may include, but not limited to;
assorted pipes and fittings
buckets for storage
reciprocating and circular saws
whole hog right angle drill
cordless screw gun
cast iron pipe cutter
pipe dope or teflon tape
Step 3 - Choose a Name & Register Your Business
Now, when you've got that sorted, it's time to officially register your business. You won't be able to buy wholesale products or work with a drop ship supplier until you complete this step. You'll need to register & apply for a federal EIN Number, and form an LLC or Corporation.
Depending on what state you are in, you will likely also need a reseller or retail merchant certificate as well. This allows you to buy products, tax free. I recommend using MyCorporation.com, as they do have a variety of packages to choose from, but their most basic package will get you started right away.
There may be a lot of licenses and permits needed for your plumbing business. You can work with MyCorporation to obtain these licenses, but I also advise that you check with your city or town clerk for any local requirements. Also, check into any zoning and sign regulations that may apply to your business or location. You must be licensed, bonded and insured.
Here are a few examples of licenses and permits that might apply to you when starting your plumbing business:
Certified plumbing contractor's license
Registered plumbing contractor's license
City municipal business license
Health regulations and requirements
Fire safety standards or regulations
Sales tax permit
Plumber utility license
Residential contracting license
Commercial contracting license
Law and Business exams
Hazardous Substance Removal Certification
Keep in mind, it can easily cost over $3,000 to obtain licensing and can take up to 12 months to secure. Keep in mind, if you decide to hire plumbers and not work the business alone, they all need to be certified by the state you are operating in and usually hold a state license as an Apprentice plumber, journeyman plumber or master plumber. You'll also need to obtain a quote for business liability insurance. This can be done through any service provider like Geico.
Legally Incorporate Your Business Today
Step 4 - Open a Business Bank Account
Now, since you're going to be getting all this money, you'll need somewhere to put it. It's pretty easy to open a business bank account, but they won't get you setup without having the legal incorporation paperwork and the EIN number that I just spoke about. You can work with a local bank that you already use or you can just choose a new one. Square also has small business banking and invoicing for new businesses.
Step 5 - Buy Website Hosting
The next step is to buy web hosting. I always recommend choosing Bluehost because they are the most reliable for small business websites. You also get a free domain name, a free ssl certificate and access to 24/7 tech support. So, you really can't beat it.
Buy Website Hosting with Bluehost
Step 6 - Work with a Website Designer
Once you pay for a website hosting plan with Bluehost, you'll get your login credentials.
You'll want to save that information and deliver it to the web designer in the next step. If
you don't know about Fiverr, it's a company that sells affordable web development and marketing services that get done really quick.
You just type in what you want in the search bar, and it will reveal tons of people who are willing to help you get a website up in less than 3 days. Once you choose the person you want to work with, give them the Bluehost login details and communicate your vision and plans for the website.
Find a Website Designer on Fiverr
Step 7 - Setup a Merchant Account to Get Paid
While they are working on your new website, you'll need to activate a merchant account for your customers to pay you through. Many businesses use paypal, square or stripe. I personally like Square, they make it super easy for me to accept payments online via my website or over the phone. I can also send copies of service agreements and invoice directly through Square. The account with Square is free, so once you signup, give these login details to the web designer to complete the payment integration process.
Signup for a Free Square Payments Account
Step 8 - Get Logo & Online Marketing Materials Designed
Finally, you'll need to start spreading the word about your business. A good place to start is getting a logo, social media graphics and online marketing materials created. For website branding, I recommend 99designs because the process is quick and painless and you actually get what you want and for marketing materials, I like envato, because they literally have tons of graphics for each and every single kind of business, on demand.
Get a Plumbing Business Logo and Graphics
Get a Plumbing Business Marketing Templates
Step 9 - Create a Money Game Plan
Since you now own a plumbing business, you can choose from a variety of services to sell. The most popular and profitable services are:
Drain construction, cleaning or repairing
Repair of installed plumbing
Septic tank installation
Solar hot water systems installation
Steam fitting and piping contracting services
Interior and outdoor sprinkler system installation
Hot water systems installation
You’ll want to diversify your service offerings because this will help expand your customer reach. To maximize your profits, you’ll can create monthly maintenance membership plans or new customer referral discounts.
Step 10 - Be Prepared for Startup Cost
Now, I know you're probably wondering...What's the price tag on this baby? Startup costs for this kind of business, is around $25,000 if you are starting as solo entrepreneur, or can be an upwards of $50,000+. This number largely depends on how many plumbers you hire, payroll, how much money is spent on equipment, insurance, office software, computers, vehicle expense, website, equipment storage, business phones, company t-shirts, and marketing.
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About Adella Pasos
This Entrepreneur and Marketing Expert has shared her passion for growing brands from the ground up. She’s worked with Startups, Small Businesses, Fortune 500 Corporations and Entertainment Talent to help them recognize the value of marketing, and give her clients the ability to access their niche market via online, social media, mobile, merchandising, and events.
She hosts the What's Your Game Plan TV show features: Free Expert Advice, and Growth strategies for Business Owners Across the Globe. Access thousands of FREE Tips, Trends & Tools to Move Your Business Forward!