Mulling on how to set up a plumber business in 2022? Below are guidelines and a conclusive checklist of plumbing business ideas to assist you to tee off.
It should be noted that plumbing is an extensive field spanning multiple industries including water, construction, and fire-fighting services.
What amount of seed capital must you have to start a plumber business?
The minimum qualification for starting a plumbing business is a trainee certificate. This, plus coursework, costs approximately $1800.
Consulting an accountant to gain an understanding of taxation and the options to take advantage of, will set you back $100.
You will then need. A typical home-based business usually owns just a single truck. You could begin similarly to cut costs which will be in the region of $11,000 for a second-hand truck whereas a plumber’s tools and equipment will be roughly $5,500.
Business registration should be $200 if you take care of it yourself online. Tailored registration will set you back about $100 more.
To know the company’s rights, liabilities, and the various taxes to file, you need $250 to consult an attorney. Purchasing a year-long general insurance cover is about $500.
A basic web package goes for $300 while printing documents such as cards and flyers requires at least $150. Tips on how to launch a plumber business with no money, include, using free web creation systems such as Wix, GoDaddy Website Builder, Weebly, or Site123.
Rental charges will vary by state and area. It could be as low as $1000 and as high as $19000 per month.
In total, you need approximately $22,000 to start a plumber company. Experts advise setting aside $30,000 more to cover overheads before work picks up.
Where does plumbing rank as a profession?
Plumbers are among the most sought-after technicians. DIY plumbing efforts can only go so far before clients call in a professional. So if you are worried about finding enough work as a new plumbing company, worry no more.
Approximately 101,302 plumber businesses are operational in the USA in 2021. It’s a flourishing industry that grows by 2% each year. Studies show that employment opportunities for plumbers will increase by 4% from 2019 to 2029.
As of June 2020, research by IBISWorld valued the plumbing trade at $190 billion. On average, a plumber takes home around $60,000 annually, which is comparable with the $60,400 and $63,645 electricians and teachers in the US earn respectively.
The statistics above show that a plumbing business can grow into a long-term venture.
The A to Z of setting up a plumbing company
One thing to decide early on is whether to specialize or to offer generic solutions. Diversifying guarantees many job opportunities services while on the other hand, specialists can demand premium fees for their services.
You should also note that attaining the basic plumber certification can have different timelines in the various states. Course work and trainee programs usually take between 4-5 years.
These are the phases you should know before starting your own plumbing company.
STEP 1: Formulate a corporate strategy
What is the best way to start and grow a plumbing business? Well, you begin with a clearly mapped-out approach.
Many entrepreneurs often prefer noting down their plans on paper because it brings out important business specifics such as the vision and mission of the business, and aids in unearthing risks.
You can always go a step further and draft a detailed business plan, which can come in handy when applying for a loan or funding to scale the business.
Below are some plumbing ideas for business to consider when formulating a plan.
Come up with a company name
It usually reflects what a company does. A business name does not always need to be descriptive, though. It could be the initials of your state and family name, but at least make it unique to avoid copyright infringement.
Use the following resources to get plumbing business ideas for a unique company name.
- The companies registry
- National and state trademark data
- Social networks
- Web hosting companies to search for a unique URL
Know your target area and target clients
You should conduct thorough research to ascertain whether there are work opportunities for plumbers in your region. Find out about competing businesses too.
You also should establish the socio-economic particulars of the intended clients. This will help when setting prices for your services.
Find a competitive advantage
What distinctive solutions will draw customers to you as opposed to the competition? Your point of difference could be anything from offering after-sales services to giving discounts to repeat clients.
The amount of money to bill customers for services
One way to determine the amount of money to charge for the services rendered is by analyzing the company’s target area and clients. You should also decide whether charges will be costed as a fixed fee or per hour.
Set business goals
You should have certain deliverables as short and long-term goals.
Some plumbing ideas for businesses to consider are:
- Whether you want to specialize or offer generic solutions
- If you want to set up branches in new regions
- Whether it’s viable to scale the business then sell it for a profit later
Figure out all financing options and projections
What’s the source of capital? Is it from personal savings, a grant, or a loan?
You should figure all this out, including recurrent expenditure and the cost of buying plumbing apparel. Consult a CPA if need be to gain more insight into the best financial vehicle to use.
Afterward, calculate the expected revenue and profits versus expenses.
STEP 2: Form a legal entity
A business could either be a sole proprietorship, partnership, limited liability company (LLC), or a corporation.
LLCs and corporations protect the owner(s) from personal liability for any debt or loss incurred by the company.
It must be noted that LLCs are uncomplicated to start and run when compared to corporations. IRS rules allow LLCs to be taxed as S corporations if the LLC has fewer than 100 owners.
Applying for the relevant permits and licenses is prescribed for all new entities as per state. For instance, in Alabama, a proprietor only needs to have an apprentice certificate, while in Alaska the minimum requirement is a journeyman certificate.
Supplementary warrants and documents may be required. For instance, if you intend to run plumbing supplies, you must acquire a retail permit. It may also be required to print forms, proposals, and customer manuals.
STEP 3: Register with the taxman
You must enlist the company for various taxes before it can become operational. To enroll, start by applying for a tax identification number (TIN).
By virtue of sole proprietorship, your plumbing company qualifies to be classed as an S corporation. The advantage is that S Corps are not taxed on the profits earned. Instead, the IRS taxes the owner’s profits. Consequently, you’re exempt from double taxation.
Failing to submit taxes leads to dire consequences.
STEP 4: Open a checking account & apply for a plastic card
The importance of separating business and personal transactions cannot be understated. The merits, such as ease of filing taxes and better management of liability far outweigh the demerits.
After opening a new business account, you will be issued a credit card.
STEP 5: Insure the business
A warranty protects your company’s assets from unforeseen risks and losses. It is also a federal requirement.
You should therefore take out all applicable insurance plans
Customers are usually skeptical when dealing with unsecured companies. Insuring your plumbing company is therefore a vital point of difference.
STEP 6: Define your brand
Start by creating a unique logo. A logo is a trademark and enables customers to distinguish your plumbing business.
Print business cards, flyers, and brochures should sport the company logo.
STEP 7: Build a website
You can potentially meet many new customers through a company website. In 2017 studies established that a whopping 87% of customers, a 6% jump from 2014, shop for products online before buying.
Your website should therefore be appealing to users. You should invest in the User Interface (UI) and User Experience (UX) when designing a new website.
By utilizing Search Engine Optimization (SEO) and social networks integration, the website can generate leads that can be converted to sales. If you are not tech-savvy or do not have enough time on your hands, you could engage an expert to optimize the website.
A good business website should have a catalog of services offered, an about us page, and a contact section.
STEP 8: Use social media for business promotion
Social media has rapidly grown into a major marketing tool.
Many potential clients nowadays, seek out products and services on social platforms before visiting the company website. It is pretty evident, therefore, that your plumbing business can use social networks to increase sales by generating traffic for the company’s website.
To commence marketing online, begin by creating accounts on the most popular networks such as Facebook, Twitter, YouTube, Instagram, Snap Chat, and TikTok. The most relevant channels will be guided by the particulars of your customers.
For instance, clients aged 30 and above usually prefer hanging out on Facebook and Twitter while younger clients tend towards Instagram, Snap Chat, and TikTok.
Post content relevant to each platform regularly to show mastery of your plumbing niche. For instance, you could post videos to YouTube and TikTok but use more interactive content or question-answer sessions on Facebook, Instagram, or Twitter.
Using high-resolution graphics and easily shareable content such as memes encourages visitors to refer your business to friends and relatives.
You should also include links to the company website on all social pages.
STEP 9: Advertise and network
Though challenging and intimidating, the most rewarding method for finding solid partners and clients in the plumbing niche is through face-to-face sessions.
To network, locate other complementary contractors in your area such as builders and roofers to notify them of your new business. Also, seek out exclusive information such as clients that pay upfront and who to contact for accounting, legal, and insurance services.
Don’t forget to share your business card, flyers, and brochures with landowners, property managers, and agencies in your area. These are the best low-cost marketing methods that can guarantee repeat work.
You can also try paid social media adverts such as Facebook ads.
STEP 10: Use plumbing business software for contractor work management
As your plumber business grows, it may become difficult to keep track of all customers and transactions.
Business applications such as CRM (customer relationship management) systems and Tax software programs allow you to take care of business transactions. Acquiring these programs can potentially set your business up for success and save you valuable time and money.
Furthermore, the filing process is usually online, thus it’s easy to generate reports.
A CRM system helps your business to track, analyze, and record customer interactions, while tax software aids you file returns quickly and accurately.
Choose Field Complete as a Partner for Starting a Plumbing Business
For ease of operating your company, choose Field Complete CRM software. Field Compete is designed with contractors and business owners in mind.
It brings together billing, invoicing, contract/license management, service history, payment collection in the field, estimates scheduling, work order creation, work order management, and communication in a simple easy-to-use layout
Wondering how to start a plumber company with no money set aside for a Field Service management system. Sign up for free today.