If you're skilled in plumbing, enjoy working with your hands and have a knack for problem-solving, starting a plumbing business can be a fulfilling and lucrative venture. From honing your skills to setting up a professional business website, we'll cover everything you need to know to successfully start a business and turn your plumbing expertise into a career.
What is a plumbing business?
A plumbing business is a service-based company that offers a wide range of plumbing services to residential, commercial and industrial clients. These services include installation, repair and maintenance of plumbing systems, such as pipes, fixtures, drains and water heaters. Plumbing businesses play a vital role in ensuring proper water flow, waste removal and overall plumbing functionality in buildings. Plumbing is constantly in demand, and reliably so. This type of venture is also thought of as a boring business—in a positive and dependable way.
Before diving into starting a plumbing company, it's important to decide on your business idea in order to understand the legal and regulatory aspects involved in these business types. You'll need to register your business with the appropriate authorities, obtain the necessary licenses and permits and comply with local building codes and regulations. This ensures that your plumbing business operates legally and meets the highest standards of safety and quality.
How to start a plumbing business
Starting a plumbing business requires careful planning, preparation and adherence to legal requirements. Here are seven essential steps to help you establish your plumbing business and set it up for success.
01. Develop a business plan
Creating a comprehensive business plan serves as a roadmap for your plumbing business. It outlines your goals, target market, competition analysis, marketing strategies, financial projections and operational plan. Your plumbing business plan should include:
Executive summary: A concise overview of your plumbing business, its mission and key differentiators.
Market research: Identify your target market, analyze local demographics and understand the demand for plumbing services in your area.
Competitive analysis: Study existing plumbing businesses in your region, identify their strengths and weaknesses and develop strategies to differentiate your services.
Marketing and sales: Develop a marketing strategy to promote your plumbing business, establish your brand and attract customers. Consider online and offline advertising, social media marketing and partnerships with local businesses.
Financial projections: Create a detailed financial forecast, including startup costs, monthly expenses, revenue projections and profitability analysis. Include a contingency plan to address unforeseen expenses or changes in the market.
02. Choose a business structure and name
Select a legal structure or business entity for your plumbing business, such as a sole proprietorship, partnership, limited liability company (LLC) or corporation. Each structure has different legal and tax implications so you might want to consult with an attorney or accountant to determine the most suitable structure for your business.
Register your business with the appropriate state agency, such as the Secretary of State or county clerk's office. This step establishes your business as a legal entity.
Name your business. Consider using a business name generator for inspiration when deciding on a plumbing business name idea. Check for name availability in your jurisdiction.
03. Obtain the necessary licenses and permits
Research and comply with the licensing and permit requirements for plumbing businesses in your area. These may include contractor's licenses, trade-specific certifications and permits for operating a business. Additionally, you may need liability insurance to protect your business and clients in case of accidents or property damage.
04. Secure financing
Consider your startup costs and financial needs to determine the financing options for your plumbing business. These options may include:
Personal savings: Consider bootstrapping from your own savings and personal funds to invest in your plumbing business.
Small business loans: Explore loans from banks, credit unions or Small Business Administration (SBA) loans tailored for small businesses to help you raise money for your business.
Investors: Consider seeking investors who are interested in partnering with you and providing capital in exchange for equity.
Equipment financing: If you need specialized plumbing equipment, you can explore financing options specifically designed for equipment purchases.
Financial pitch deck: Prepare a comprehensive financial plan and present it to potential lenders or investors as you embark on the process of raising money for your business.
05. Acquire the right tools and equipment
As a plumbing business, having the right tools and equipment is essential for providing efficient and high-quality services. Invest in plumbing tools, diagnostic equipment, safety gear and a reliable vehicle for transportation. Research reputable suppliers and compare prices to ensure you get the best value for your investment.
06. Build a professional network
Establish relationships with other professionals in related fields, such as construction contractors, architects and real estate agents. Networking can lead to referrals and collaborations, helping you expand your customer base and build a solid reputation.
07. Create an online presence
In today's digital age, having a strong online presence is crucial for business success. Create a professional website for your plumbing business to showcase your services, expertise and customer testimonials. Consider using a small business website builder like Wix, who offer user-friendly interfaces and customizable templates. Check your website is mobile-friendly and optimized for search engines to attract organic traffic.
Additionally, use social media platforms to engage with your audience, share plumbing tips and promote your services. Consider creating accounts on platforms such as Facebook, Instagram, TikTok and LinkedIn to connect with potential customers and establish your credibility.
Thinking of starting another type of business? Check out some of these creative service business ideas to help get you started.
How much does it cost to start a plumbing business?
If you're starting a plumbing business in the US, it can cost you anywhere from $10,000 to $100,000 or more, depending on which state you're located in and the size of your business. A rough breakdown of the necessary costs to start a plumbing business should include:
Licenses and Permits: $500 - $5,000 (varies by state and type of business entity)
Insurance: $1,000 - $5,000 per year (depends on size of company and number of employees)
Equipment and Tools: $5,000 - $20,000+
Employee Wages: Varies based on number of employees and location
Training and Certification: $500 - $2,000 per employee (depending on their current experience and qualifications, also varies by state)
Working Capital: Varies based on operating expenses and business growth plans
Legal and Accounting Fees: $1,000 - $5,000 or more
It's important to remember that these figures are rough estimates and can vary widely based on your specific circumstances, location, and business goals. It's important to thoroughly research and budget for each aspect of starting your plumbing business to ensure you have a clear understanding of what it will take financially to get your business off the ground.
It's also worth noting that some costs, like insurance, will be ongoing expenses, while others, like equipment purchases, are upfront costs. Creating a detailed business plan and consulting with industry experts, accountants, and business advisors can help you create a more accurate estimate of the funds you'll need to start and operate your plumbing business successfully.
Managing a plumbing business effectively
Once your plumbing business is up and running, effective management is crucial for its long-term success. Here are five essential steps to manage your plumbing business effectively:
Streamline operations: Implement systems and processes that streamline your business operations, such as scheduling software for appointments, invoicing software for billing and project management tools for tracking tasks and deadlines. Use technology to automate administrative tasks and maximize efficiency.
Provide excellent customer service: Customer satisfaction is key to building a strong reputation and attracting repeat business. Train your team to deliver excellent customer service, emphasizing professionalism, punctuality, clear communication and problem-solving skills. Actively listen to customer feedback and address any concerns promptly and professionally.
Manage finances: Maintain accurate financial records and regularly monitor your cash flow, expenses and revenue. Use accounting software to track income and expenses, generate financial reports and ensure compliance with tax obligations. Consider hiring an accountant or bookkeeper to assist with financial management and tax filings.
Invest in employee development: Continuously invest in the training and development of your plumbing team. Provide ongoing education on industry best practices, safety procedures and new technologies. Encourage employees to pursue certifications and professional development opportunities to enhance their skills and expertise.
Focus on marketing and promotion: Consistently market your plumbing business to attract new customers and maintain a competitive edge. Utilize a mix of online and offline marketing strategies, such as search engine optimization (SEO), local advertising, social media marketing and referral programs. Monitor the effectiveness of your marketing efforts and adapt your strategies based on customer feedback and market trends.
Promoting a plumbing business
Once your plumbing business is operational, effective promotion is crucial to attract customers and build a strong brand presence. Here are five tips to help you promote your plumbing business successfully:
Develop a strong online presence by making a website for your plumbing business, optimize it for search engines and include valuable content such as plumbing tips and FAQs. Utilize social media platforms to engage with your audience, share informative content and run targeted ad campaigns.
Keep your branding consistent: No matter where you promote your business, make sure to keep your branding consistent. Use Wix’s logo maker to create a logo that you can feature in all of your digital assets. Check out these cleaning logo ideas for inspiration.
Local SEO: Optimize your website and online listings for local search queries. Include location-specific keywords in your website content, meta tags and business descriptions. Encourage customers to leave reviews on platforms like Google My Business to boost your local search visibility.
Referral program: Implement a referral program that rewards customers for referring new clients to your plumbing business. Offer incentives such as discounts, gift cards or future service credits to encourage word-of-mouth recommendations.
Networking: Attend local business networking events, join professional organizations and participate in community activities to connect with potential customers and build relationships with fellow professionals. Consider offering your services pro bono to charitable organizations to increase visibility and contribute to the community.
Customer testimonials and case studies: Collect positive customer testimonials and create case studies highlighting successful projects or challenging plumbing issues you have resolved. Feature these testimonials and case studies on your website, social media platforms and marketing materials to build credibility and trust with potential customers.
Why start a plumbing business?
The plumbing industry is a fundamental part of any community and the demand for plumbing services remains steady. Although the industry is only expected to grow about 2% from 2021 to 2031, there continue to be over 48,600 job openings in the field each year due to current professionals switching careers or retiring. Here are some reasons why starting a plumbing business can be a wise choice:
Growing demand: Plumbing issues can arise at any time, making plumbing services a necessity for both residential and commercial properties. As the population continues to grow and buildings age, the demand for professional plumbers is expected to increase.
Lucrative opportunities: Plumbing services are typically billed at an hourly rate, allowing you to generate substantial revenue from your expertise. Additionally, plumbing emergencies often require immediate attention, enabling you to charge premium rates for urgent repairs.
Job security: Plumbing is an essential service that cannot be easily replaced by automation or technology. By starting a plumbing business, you'll be entering a field that offers long-term job security and stability.
Other benefits of starting a plumbing business
Starting a plumbing business comes with several advantages, similar to starting any kind of service business, that can contribute to your professional and financial success. Here are some benefits to consider:
Financial independence: As the owner of a plumbing business, you have the opportunity to control your income and build a profitable enterprise. By providing high-quality services and attracting a loyal customer base, you can secure a steady stream of revenue.
Flexibility and autonomy: Running your own plumbing business allows you to set your own schedule and work at your own pace. You have the freedom to choose the projects you undertake, the clients you work with and the areas you serve.
Personal satisfaction: As a plumber, you'll have the satisfaction of using your skills to solve complex problems and provide valuable services to your customers. Helping people resolve their plumbing issues can be immensely rewarding.
Career growth opportunities: A plumbing business can expand over time, allowing you to hire and train additional plumbers or diversify your services. This opens up possibilities for business expansion and increased profitability.
Challenges of running a plumbing business
While starting a plumbing business can be rewarding, it's important to be aware of the challenges that come with it. By understanding and preparing for these challenges, you can position your plumbing business for long-term success. Here are some blockers you may encounter:
Intense competition: The plumbing industry is highly competitive, with numerous established businesses and individual plumbers vying for clients. Standing out from the competition requires strategic marketing, exceptional service and a strong reputation.
Seasonal fluctuations: Plumbing needs may vary throughout the year, with certain seasons experiencing higher demand for specific services, such as pipe repairs during colder months. Managing cash flow during slower periods can be a challenge, requiring careful financial planning.
Skill and knowledge development: Staying up-to-date with the latest plumbing techniques, technologies and building codes is crucial. Continuous learning and professional development are necessary to ensure you provide the best possible service to your clients.
Customer satisfaction and complaints: Plumbing work can be complex and unpredictable, and customer satisfaction is paramount. Addressing customer concerns and resolving complaints promptly and professionally is essential to maintaining a positive reputation.
Successful plumbing businesses on Wix
Bates Plumbing: Bates Plumbing is a residential and commercial plumbing company based in Lombard, Illinois. With over 30+ years of experience, they do water heaters, sump/ejector pumps, leaky pipe repair, toilets, drain/sewer cleaning, water filters, garbage disposals, re-piping and more.
West Coast Plumbing: West Coast Plumbing has been serving the West Michigan area as a master plumber since 1992. They offer services ranging from faucet install to new home construction and commercial services.
Real deal plumbing & heating: Real deal plumbing & heating has been providing quality plumbing repairs, modifications and installations to the Boston/South Shore area since 2013. From cleaning and de-clogging pipes to repairing broken fixtures, they’re trained, licensed and fully insured to handle any plumbing job.
For more inspiration, you can check out these service business examples to help you get your creative juices flowing.
How to train to become a plumber
There are two main ways to train to become a plumber: through an apprenticeship or through a vocational training program.
Apprenticeship
An apprenticeship is a paid training program that combines on-the-job training with classroom instruction. Apprentices typically work under the supervision of a licensed plumber for 2-5 years, depending on the state. During their apprenticeship, apprentices learn about all aspects of the plumbing trade, including:
Basic plumbing principles and practices
Installation, repair, and maintenance of plumbing fixtures and systems
Reading and interpreting blueprints
Troubleshooting and resolving plumbing problems
Vocational training program
A vocational training program is a formal training program that teaches students the skills they need to become plumbers. Vocational training programs typically last 1-2 years and cover the same topics as apprenticeship programs.
Requirements:
To become a plumber, you must typically meet the following requirements:
Be at least 18 years old
Have a high school diploma or GED
Pass a background check and drug test
How to find an apprenticeship or vocational training program
To find an apprenticeship or vocational training program, you can contact your local plumbers union, community college or trade school. You can also search online for apprenticeship and vocational training programs in your area.
Once you have completed your apprenticeship or vocational training program, you will need to pass a state licensing exam in order to become a licensed plumber.
Starting a plumbing business without being a plumber
To start a plumbing business without being a plumber, you'll need to hire licensed and experienced plumbers for your team. Focus on managing and growing the business, handling customer relations, marketing and administrative tasks. This could also mean developing partnerships with suppliers, creating a website and ensuring compliance with licensing and legal requirements. You should consider learning the basics of plumbing to communicate effectively with your team and clients. Prioritize customer satisfaction, quality service and timely project completion. Network with other businesses in the construction industry and build a reputation for reliability. Continuously educate yourself on industry trends and regulations at the same time.
How to start a plumbing business FAQ
Can a plumber be a millionaire?
Yes, a plumber can be a millionaire. In fact, many plumbers earn well over $100,000 per year. The top-earning plumbers can earn over $200,000 per year. There are a few factors that can contribute to a plumber's success, including:
Skill level: Plumbers with more skills and experience are in higher demand and can charge higher rates.
Location: Plumbers in high-cost areas can charge higher rates.
Business acumen: Plumbers who are good at running a business are more likely to be successful.
How do I make my plumbing business successful?
What type of plumbing makes the most money?
What do I need to start a plumbing company?
How much money does a plumber make?
How to start a plumbing business in a specific state
It's important to note that registration and licensing requirements can vary by state and local jurisdiction. Therefore, it's crucial to research and comply with the specific regulations and requirements of your location to operate legally and protect your business. Here are some helpful resources:
Don’t see your chosen state here? You can use the search bar in the Wix Blog to find all the information you need.