The plumbing industry in the United States is forecast to generate $113 billion in 2020.
Do you want to grab a share of these revenues? If yes, you need to start a plumbing business. Commercial and residential property owners, government agencies, and non-governmental institutions rely on the services of plumbers to keep their water and sewerage systems working properly.
However, just because the industry is thriving doesn’t necessarily mean your new business will make a splash. You need to focus on starting a business with a solid plan and foundation; otherwise, the business will among those that fail in the first year.
Ready to learn how to start a successful plumbing business? Continue reading for more insight.
Understand the Plumbing Services Industry
Before starting a plumbing business, develop a good understanding of the plumbing services industry. From a national outlook, it’s clear there’s a strong demand for plumbing services. The construction sector, which is a major consumer of plumbing services, is recording growth.
What you need to look at is the state of the plumbing services in your region. Is there a strong demand for these services?
If yes, starting a plumbing company can prove to be a sound business decision. But if the local industry isn’t thriving or there are way too many established competitors, your new business might not be able to shake off the competition and grow.
That being said, there is only so much you can learn about the industry form reading research reports. To really get into the thick of things, consider starting out as a plumber.
After securing the necessary qualifications, you’ll find employment as a plumber. Working for a couple of years and you’ll know the industry inside out. This knowledge is invaluable when you’re starting your own plumbing business.
Prepare a Solid Business Plan
All successful plumbing businesses have one thing in common: solid business plans.
A business plan is a document that fleshes out crucial details about your business. These details include:
- Business name and address
- Mission and vision statements
- Organizational structure
- Range of plumbing services offered
- Startup capital requirements
- Cashflow projections
- Sales and marketing strategy.
If you’ve never written a business plan, you might be tempted to give this task a stab. Well, your determination is commendable, but it’s advisable to let an expert do it for you.
A business plan is a blueprint for your success. If you don’t get some aspects right, you won’t be doing your new business any favors.
Raise Startup Capital
Just how much money do you need to start your plumbing business?
This is one of the benefits of letting a professional draw up your business plan. They’ll establish the amount of capital required to set up the business and keep it operational till it’s making a profit.
Now that you know this amount, the next step is to raise it.
If you’re self-funding the business, congratulations! Not many entrepreneurs have the money to fund their business ideas.
What if you don’t have the money? Don’t give up.
There are a couple of funding strategies you could use.
For instance, you can approach your bank for a small business loan. This is a long shot, but if you’ve got a good credit relationship with your bank, you may get accepted for a loan. There are also several private money lenders looking to fund starting entrepreneurs like you.
Another option is to borrow funds from friends and family. In this age of social networking, you can quickly set up a group, invite your close people, and ask them to support you. In exchange for their funds, or to motivate them to contribute to your goal, you can offer them ownership stakes in your upcoming company.
Regardless of the funding method you choose, be sure to raise adequate capital. If you come up short of the required startup capital, don’t go ahead and start the business anyway. If you make this mistake, you could run out of capital before the business starts generating sustainable profits.
Secure the Required Business Permits and Licenses
Licensing requirements for plumbing businesses vary from state to state. In most jurisdictions, though, you’ll need to obtain a general business license or permit, as well as a plumbing license.
To get a business permit, you typically need to register your business with the relevant agency in your state. To get a plumbing license, you will need to prove that you’re a qualified plumber.
As part of licensing requirements, you might also need to purchase liability insurance. Your state sets the minimum amount of coverage you should buy.
After obtaining the permits and licenses, you’re ready to open for business!
Set Up Your Commercial Space
Your plumbing business needs a commercial space. This is where you’ll store plumbing equipment and supplies and house your employees.
Speaking of plumbing equipment, it’s important to invest in the best tools in the market. Your pipes, pipe cutters, wrenches, and other pieces of equipment should be of the highest quality.
Not sure where to find these tools? Check out TigerFish Tools for some of the best pipe cutters in the business.
In the early days, you can do without hiring any employees. As the business grows, you will need to hire an office assistant to take care of the calls as you handle the real work out in the field.
Promote Your New Business
As a new plumbing business, finding your first clients can be challenging – unless you invest in marketing.
Remember your business plan? It fleshes out your sales and marketing strategy. Now is the time to implement it.
Hire a professional to build your website and optimize it for search engines. Create social media pages for the business and post regularly.
You can also use offline marketing strategies, such as handing out leaflets containing information about your services.
Start a Plumbing Business That Will Grow Big
You’ve made a smart decision to start a plumbing business. It’s one thing to start a business, and it’s quite another to make it successful. With this guide, you now have the information you need to build a successful plumbing business.
All the best and keep reading our blog for more small business tips.