Trades

How To Set Up An Affordable Plumbing Company

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The plumbing industry is an excellent example of a skilled trade that is also financially rewarding. This industry continues to grow, and there is usually always a high demand for plumbers. There’s always someone searching for a roto rooter or quick fix for a water leak, affordable plumbing, or a sewer inspection camera. Today, many people enter the plumbing industry because it offers a certain amount of autonomy, but it is also very lucrative. Unfortunately, plumbing is also a demanding profession requiring hard work and skill. It requires that you be available a lot. Please read on for those still sure about opening a premier plumbing business.

Advanced Plumbing Companies

Many newly graduated plumbers would like to start their own plumbing business, but there is more to the profession than unclogging toilets. Running a plumbing business also requires other skills, including administration, accounting, finances, management, and human resources. Trade schools won’t necessarily teach you these business skills. Therefore it is highly recommended that you undertake a short internship with a private plumber or a union. This training will provide you with an insight into the practical and managerial side of the business. Further, it will help you gain experience, build a network, gain experience, and prepare for life as a plumber. Once you feel confident, you can then start your own plumbing business.

Here are some examples of online plumbing courses

Become A Superior Plumbing Company

Yes, demand for plumbers will always be high because office buildings and new homes are being built constantly. Plus, fixing the wear and tear of pipes in older homes will always require tradespeople. Plumbing is also in significant demand to maintain sanitation and clean water for agriculture. The plumbing industry is continually evolving with the introduction of newer technology. However, most solo plumbers routinely deal with clogged toilets overflowing sinks, repairing and cleaning bathtubs, and removing junk from pipes.

Bring A Personal Touch To Your Plumbing Business

As a plumber, the competition is fierce. To be successful, you will need to differentiate yourself. For example, you can offer transparency in pricing. Or propose different services from your competitors, such as home automation or environmentally sustainable projects. These are also other avenues to explore if you want to provide innovative services.

Staff Your Premier Plumbing Business

If you plan to set up a large plumbing company, you should first find your location, and then you’ll need to recruit competent staff. In some cities, personnel may be difficult to find. Sometimes certain factors can complicate the hiring process. Contact organizations that specialize in recruiting for the plumbing industry to help you.

Staffing agencies that you may want to use:

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What Are The Pitfalls Of A Plumbing Solutions Business?

Even though plumbers make a good living and have a great deal of independence, there are some pitfalls, which include:

Irregular hours when dealing with plumbing emergencies
Usually, you’ll work in cramped and narrow spaces.
The work can be dirty.
Getting soaking wet is not uncommon.
Working through holidays and weekends is part of the job.
Intense competition with large plumbing companies
Dealing with emergencies, including water leaks from the ceiling, gas leaks, and working in sub-freezing conditions.
Finally, one may encounter sewage and various chemicals almost daily.

Plumbers Fixtures And Tools On The Floor

Plumbing Business Plans

If you want to understand the plumbing business and anticipate the issues that may arise, it is vital to make a plan. Your plan will provide you with your company’s road map and what you’ll need to know before opening up. The plan should include the following:

What will I call my business?
Will I go solo or join another plumbing business?
What are the startup costs?
How many employees will I need?
Will I need insurance?
What permits and licenses will I need?
Who is my competition?
What tools will I need?
Who will be my clients?
How will I market my business?

Here are some plumbing business plan resources

Plumbing Business License

Before you can open up a plumbing business, you’ll need to visit the local Chamber of Commerce to determine what required licenses and permits you’ll need to pick up. Besides a plumber’s license, you will also need a contractor’s permit. Also, any plumber you hire must be certified and licensed.

Plumbing Business Requirements

Creating a legal entity for your business is essential because it helps protect your assets if there is litigation. You may want to consider the following legal entities: sole ownership, corporation, Limited Liability Company, or partnership. Creating the legal entity varies from $200 to $2000 and has to be renewed annually.

Plumbing Company Identity

Register your business
Obtain EIN
Register for state and federal taxes
Obtain insurance
Obtain permit and license
Open a dedicated bank account

Check out these few companies that can assist you in getting your LLC started.

Here are a few government links you might want to visit

IRS Website

This site by the IRS is a must-see when beginning your LLC

Plumbing Business Insurance

The plumbing business has a significant liability, so it is vital to have adequate insurance. The insurance cost will depend on your work history, prior claims, and business size. Types of insurance needed for a plumbing business include:

General liability
Automobile insurance
Workers’ compensation insurance (if more than two employees
Inland marine insurance

Generally, expect to pay anywhere from $500 to $2,000 a month. The insurance policies will cover you, your employees, and the business in case of injuries, accidents, fire, theft, or property loss. Most large companies will not consult a plumber if they are not insured and bonded.

Here is a list of some standard insurance companies

Plumbing Business Contract

Before you take on any plumbing work, you must create a contract. The contract should state the type of work, the proposed completion time, anticipated difficulties and possible complications, and the rate. You and the owner must both sign the contract. Have a lawyer look over the contract template to ensure it is bonafide.

Here are a few handy links to law firms for the plumbing industry

Make An Investment In Your Plumbing Business

Besides just the plumbing tools, you also need the following to showcase your profession:

Make sure your truck is clean, tidy, and spotless.
Order professional uniforms
Have a professional business card made
If you can afford it, hire a marketing manager, even if it is only part-time. A marketing manager can help market your business, cultivate relationships with the public and companies, and hopefully make it easier to run it.
Have a centralized system or a virtual messenger service to take all your calls, make appointments, and refer emergency calls to you. These messenger services can cost anywhere from $50 to $500 a month, depending on the business. Some of the more advanced services will also accept payment on your behalf.

Franchise Opportunities

Here is a list of popular plumbing franchise operations

How To Start A Plumbing Business

The costs of starting a plumbing business are not high. The two most significant initial expenses are a truck/van and some tools. Because you mainly operate the company out of a van, there is no rent. Your startup costs will depend on your chosen mode of transportation, whether one buys a second-hand or a new van. Also, you’ll need to decide whether to purchase your tools or rent them.

Van cost New 40K used 20K.
Tools New 20K lease $5K
Other startup costs will include:
License and registration $500-$2,000
Insurance $500
Uniforms $200
Business cards $100

If you already own a van, you will need around $10K to start your plumbing business.

A1 Plumbing Location

To avoid competition, you must open up your plumbing business in an area with a few other plumbers. You will need to search for your local area to determine how many other plumbers are already there.

Next, you will need to determine if there is a demand for a plumbing company. Speak to other plumbers and see what they may know about local demographics.

In general, plumbers are in demand in high residential properties, building complexes, and any area with ongoing home construction.

Here is a list of some popular commercial real estate companies:

Plumbing Business Vehicle

One or more professional vehicles, as well as specialized equipment for the operation
Office furniture and computer equipment for the commercial and administrative part
Legal documents: employment contracts, purchase orders, invoices, etc

Here is a list of popular auto trader websites

Plumbing Company Marketing

Make a website- share what services you offer and what areas you serve, Add your pricing information and contact number.
Keep the website active with regular photos displaying your work.
Make a flyer and distribute it in the areas your visit.
Leave your business card with hardware and plumbing stores.
Join an online plumber forum to discuss ideas and job opportunities
Create a logo and apply it to your truck
Make a youtube video offering practical advice to consumers. Let them know how to contact you for plumbing issues.

Here are some plumber’s marketing ideas

All American Plumbing Company Customers

Opening a plumbing company is not the end of this challenge: you still have to find customers! The search for clients is the objective of your marketing plan, allowing you to identify actions that will develop your customer base.

Put simply, three plumbing submarkets require a different approach for each:

The urgent calls: It is essential to be visible at the right time and be very reactive to a query because an individual with a water leak will probably hire the first plumber to answer the phone call.
Installation/renovation for individuals or businesses: in this instance, the quality/price ratio is more important because customers will take the time to compare several offers before committing.
Public markets: this market is more difficult to penetrate because you will have to respond to calls for tenders launched by local authorities, which can be time-consuming.

To make gains in the emergency plumbing sector, you should consider the following actions:

Distribute flyers in mailboxes so that individuals or companies have your number on hand when needed.
Implement geolocated advertising campaigns on the internet with keywords linked to urgent problems: “sanitary water leak,” “pipes have broken,” etc.
Connect with online quotes sites and directories (online or paper).

The techniques discussed above also work for the installation/renovation division for individuals or businesses, but you can consider supplementing them with the following actions:

Create a showcase website highlighting your expertise, offered services, prices, and customer reviews.
Natural referencing, including on Google Maps.
Radio campaigns or advertisements in local newspapers.
Distribution of prospectuses or business cards to traders.

Finding a public market will require more work; you will first know when tenders are launched by local authorities and respond to them.

Finally, word of mouth will probably be your best weapon, so your skills, availability, and ability to provide informative quotes will be essential, especially for your first clients. If they are satisfied, you can count on them to talk about you.

Plumbing Tools And Equipment

Here are a few plumbing supply companies

Here is a list of supplies you might be shopping for

Sewer inspection camera
Leak detection equipment
Hydro jet drain cleaner
Plumbing business cards
Drain cables
Drill drain auger
Power feed drain cleaner
Plumbing company software
200 ft drain snake
Cast iron pipe descaling equipment

Plumbing Business Equipment

Hand Tools

Adjustable Pipe Wrenches
Adjustable Spanner Wrenches
Bibb extractor kit
Bibb seat tool
Bucket
Drain Rods
Emery Cloth or Sandpaper
Faucet Key
Faucet Seat wrench
Flashlight
Hacksaws
Hole Saw Kit
Internal Pipe Wrench
Pipe Cutters
Pipe Handle
Pipe Press
Pipe saw
Pipe shear
Pipe Reamers and Deburrer
Quick nutcracker
Plumbers Wrenches
Radiator Key
Ratchet Pipe Threader Set
Safety Goggles and Gloves
Sleeve puller
Socket wrenches
Soldering Paste
Soldering Wire
Stem puller
Telescoping basin wrenches
Torque Wrench
Tee Extractor kit
Teflon Tape
Tube Benders
Water Pump Pliers or Vise-Grip Pliers

Advanced Plumbing Tools

Augers or Plumber Snakes
Borescope
Caulking gun and gel
Flaring and Swaging tools
Flex-Shaft Cleaning Machine
Hydro-Jetting Machine
Inspection Camera
Metal Detectors
Plumbers putty
Pressure test gauges
Soldering Torch
Washer and O rings

Conclusion

Despite the intense competition in the business, plumbers have many opportunities to do well. The real estate market is growing, new office complexes are under construction, and the construction industry is at an all-time high. Thus, the sky’s the limit for those who work hard, are available, and have good personal skills. Today, it is doubtful that you will meet a broke plumber- most are very well off.