Business opportunities are everywhere, even the leaks and clogged drains in your home can turn into something profitable. If you are a plumber who wishes to expand your expertise or a beginner who is passionate about fixing things, starting your own plumbing business might be the right path for you. Even though the population of plumbing businesses in the US has already reached 132,000, the demand for residential and commercial services still continues to increase. This brings a good opportunity to all aspiring plumbers to start their journey towards a thriving business that aims to make home living better. If you are interested in learning how the industry works, read this helpful guide on how to start a plumbing business efficiently.
As obvious as it seems, getting a license is the first requirement you will need for you to become a plumber and perform plumbing jobs legally. This is the first step to establish credibility and trust with your customers. In order to become a certified plumber, you must meet these specific requirements that may vary for every state or region.
Aside from getting licensed and securing other essential requirements, getting liability insurance is also needed specially if you are going solo or starting a business. This will protect you from potential claims due to injuries and damages due to a plumber's nature of work. Also, consider getting a certification from the Occupational Safety and Health Administration (OSHA) to ensure safety and healthy working conditions. By staying up to date with latest trends and technological advancements, you will be able to stay ahead of your competitors in the industry.
Doing thorough research about the plumbing industry provides a clear grasp of what it is like to run a plumbing business with the present market state. A comprehensive market analysis is crucial so that you will have an idea of the local consumer behavior, common challenges met, and the success rate of a business. Managing your expectations during the first phase of your planning period helps you tailor your business goals and align them with the needs of your customers. To give you an overview, this section will talk about major insights about the industry.
As part of the construction and infrastructure industry, the US plumbing sector is valued between $121.5 billion and $158.6 billion, a promising figure for existing and new plumbers. The past years has shown a positive growth with a CAGR of 3.3% from 2017 to 2024. With plumbing being a large industry, it employs between 564,000 and 736,000 individuals, contributing a lot to providing jobs in the US. It is expected to grow by 2% to 6% from 2022 to 2033, adding an estimate of 26,300 to 42,600 jobs annually. With these figures, there is an expected shortage of 550,000 plumbers by 2027 due to an aging workforce and other challenges. These data show a potential for you to grow and thrive in this industry.
Typically, it costs $17,000 to $60,000 to start a plumbing business which consists of license application, insurance, working vehicle, tools and equipment, safety gear, business registration, marketing and software integration, and initial inventory. The total cost varies if you already have existing tools, vehicles, and other essentials.
Starting small and scaling up in the long run is the most practical way to reach profitability. With a usual profit margin of 15% to 25%, plumbing businesses are expected to break even in as early as the first year. Residential services typically cost $150 to $500 per job which gives a solo plumber an estimated annual gross revenue of $75,000 to $150,000 and small teams $250,000 to $500,000 annually depending on the work load they have accomplished. To achieve higher chances of profitability, choose a specific niche and a good location to start your business. Also, practice efficient scheduling and time management to ensure superior customer service.
Statistics suggest a high failure rate for plumbing businesses in the US compared to other industries. While this is an undeniable possibility, it is important to determine and focus on the key factors influencing success. Choosing a location near urban developments with low competition and high demand will most likely offer a consistent demand for these services. Businesses with high reputation also tend to have higher success rates. That's why it is important to work on enhancing your marketing strategies, brand awareness, and company reputation.
Start smart with a simple yet detailed business plan that serves as an overview of what your business looks like and how it is going to operate. Take enough time to research and plan out your plumbing business, providing yourself with ideas on how to face potential business challenges and overcome them easily. With a highly competitive industry, it is crucial to know ahead of time how you would want your business to be seen by your target market. Include these aspects as you go along with your business planning:
Think of this as your roadmap that will make your planning and brainstorming stage easier. Starting a plumbing business is challenging, but with enough preparation, research, and determination, you will be able to kick off and move along with the process trouble-free.
The nature of plumbing work requires quality tools and equipment. It is the backbone of a plumbing business, that's why it is essential to invest in a complete and quality toolkit to ensure productivity and efficiency of every plumbing job you tackle. While it may not be necessary to buy everything all at once, make sure to have what you initially need and scale up once you have established a client base. You may visit auction and garage sales to score some affordable deals and save money in the long run.
Aside from a complete plumbing toolkit, invest also in digital tools that will help streamline business processes and promote productivity in your workplace specially if you are planning to handle larger jobs as a plumbing contractor. To manage appointments, quotes, and invoice, use a job scheduling software like Jobber and Housecall Pro. You can also incorporate a mobile payment system to accept on-site payments. Don't forget the importance of a digital camera or a high quality smartphone to document jobs and projects though before and after photos.
The long list of plumbing essentials may be overwhelming but it is always safe to invest only on what you initially need and build up once you have saved up. After securing what you need, focus on registering your business to operate legally. This is one of the most important step as you learn how to start a plumbing business.
Starting a plumbing business involves more than just your skills and a complete toolkit. You'll need to meet several legal requirements to register your business, building trust and credibility with your customers. Doing so will protect everyone involved including you as a business owner, your workers, and your clients. To give you an idea about the process, here's a straightforward list of what you need to comply:
Depending on your state, take time to research specific regulations and requirements that you need to comply with. Create a checklist if you don't want to miss anything and to stay organized. After completing all the needed documents and permits, it is now time to create strategies that will make your business stand out.
The trend nowadays is that people usually look for a plumbing company online before calling one. Creating an effective marketing strategy will make your business more visible and accessible to those who need it. Since most businesses are now practicing the use of websites and social media to promote their products and service offerings, we will discuss more about the right way of building local and online presence.
In today's modern world, a user-friendly website is not just an accessory - it's a must for plumbing business owners who want to raise brand awareness and to stand out in the competitive industry. The goal is to convert organic traffic into leads or even paying clients. There are techniques on how to rank in the first few spots in search engine results and draw the attention of your potential customers - that is what you call search engine optimization (SEO).
SEO is the reason why many websites rank in the first page of search engine results. Techniques may vary from business to business, but here are the most basic ones that you can follow:
Utilizing social media platforms such as Facebook and Instagram can help you reach your target audience easily. These platforms offer paid ads and campaigns that you can customize to reach your desired demographics. You can post relevant content, before and after photos, and even reels to draw attention and gain more followers. Technically, it's a good approach to raise brand awareness and reach a broader audience.
Your pricing determines the profitability of your business. Set a competitive price that is not too high and not too low, enough to compensate for your work, skills, and effort. Research about how your competitors set their prices and make it a price basis for your business. Be clear about what you offer and set different prices for each, such as emergency repairs, residential, and commercial plumbing. Focusing on a certain niche or category will help you stand out among thousands of plumbers in the US.
Typically, plumbers charge $150 to $500 for every residential plumbing job, while a 24/7 emergency work costs $200 to $1,000+ per job depending on the work complexity and duration. If possible, offer free quotes and be transparent about it so that customers will be able to prepare for the budget needed.
Happy and satisfied customers are the best marketers, so be sure to provide efficient plumbing solutions, prompt responses, and reasonable prices. Do not underestimate the power of word of mouth referrals in this industry. It does a lot more for your business than you think.
Give attention to small gestures that will eventually create a bigger impact such as initiating clear communication, providing after-service follow ups, and even maintaining cleanliness by wearing shoe covers before entering a home. These simple things will leave a big mark on every customer, making them talk about and referring your business to others.
More than just skills and expertise, starting a plumbing business is all about careful planning, effective marketing, proper pricing, and ensuring customer satisfaction. The plumbing sector is a huge part of the construction and infrastructure industry, requiring business owners to follow local protocols, submit requirements, and get specific licenses in order to operate legally. After a successful business registration, it is crucial to invest in a complete toolkit and equipment needed to perform a plumbing job efficiently. Building an online presence is more of a new trend to follow for businesses in today's generation. It allows your business to be seen and promoted while you sleep. Having an SEO optimized website and updated social media platforms is the key to achieve enhanced online visibility.
The journey on how to start a plumbing business may be overwhelming and challenging, but with the right advice and guidance from the industry experts, you will be able to enjoy a profitable business right at your hands.
Ronald Osborne is an Australian entrepreneur and experienced business coach. With over ten years of business and mentoring experience, an MBA specializing in Finance, along with launching/partnering with over 10 of his own companies around the globe, he has been able to achieve his version of success. Ronald has been able to help large telecommunication companies, law firms, trade businesses, and everyday business owners improve their business and take it to the next level.
