5 Unique Tips for Starting a Plumbing Business

Starting a plumbing business has numerous benefits for the right individuals.

For one thing, there are no businesses with a significant share market in this industry. In the USA, there are more than 116,000 plumbing businesses that employ more than 468,000 people. More than 60% of plumbing businesses employ one to four workers, with only 1% of firms employing 100+ employees. Plus, 10% of plumbers are self-employed, meaning everyone with the skill can launch a plumbing business.

Industry demand is expected to skyrocket thanks to the expansion of residential buildings, so what are you waiting for?

How to Start a Plumbing Business

How to start a plumbing business?

Founding a business always implies multiple steps, some of which may be difficult to keep track of (collecting necessary documentation, for example).

With plumbing, there are several sub-industries to choose from, so make picking the right niche your first step.

Generally speaking, operators in the plumbing sector are responsible for installing and maintaining plumbing fixtures, fittings, and machinery. Working on domestic pipes and drains, installing cooking gas, and installing heaters for bathrooms and toilets make up the majority of the industry's activity.

Of course, not every plumbing business deals with all these activities. Usually, they specialize in one or two niches, the most common ones of which include:

• General plumbing services

• Mechanical services

• Steamfitting and piping services

• Lawn sprinkler installation

• Building sprinkler system installation

Depending on your areas of expertise, you’d do well to pick the best niche and build your brand around it.

If you’re having a difficult time picking the right focus, consider the following: if the U.S. Bureau of Labor Statistics is to be believed, demand for plumbers will keep increasing until 2024 as a result of new building construction and systems that call for more efficient plumbing systems. Moreover, plumbers who specialize in maintenance and repairs should continue to be in demand even during economic downturns. 

Get Certified

Certification is required for any plumbing business in home, commercial and industrial settings. The certification guarantees that the plumber is versed in plumbing theories, safety precautions, system layouts, pipe identification, trade vocabulary, and tools of the trade.

To grow your plumbing business, you should excel in these areas at the very least. If you want to make your business stand out, you should consider additional certification that covers areas beyond training and apprenticeship.

Some ideas include:

• Plumbing techniques

• Plumbing tools and equipment

• Heating, ventilation and air-conditioning (HVAC) systems

• Welding

Additional ideas may come to mind as you expand your research to your chosen plumbing niche.  

Collect Documentation for Your Plumbing Business

Before you can launch a plumbing business, you should collect all the necessary paperwork. As mentioned above, this step is particularly extensive, so we’ve listed general documents you should expect to be called for:

• Certificate of incorporation

• Business Plan

• Operating Agreement

• Business License and Permit

• Contract Documents

• Federal Tax Identification Number

• Insurance Policy

• Retail Licenses

• Employment Agreement

• Employer Identification Number (EIN)

Learn the Ropes

The expansion of residential building projects has a significant impact on the demand in the plumbing industry. Another notable point of interest is the maintenance and repair of existing structures.

For your plumbing business to be profitable in the long run, you should calculate costs and gains. E.g., the majority of costs are fixed, so profits rely solely on your business’ ability to generate large volumes of work.

In this matter, choosing the right customer group is essential. Plumbing businesses focusing on customers looking for high-quality fittings will generate higher profits than those relying on cheaper projects.

Stay Educated

Plumbing businesses don’t differ from businesses operating in different industries operation-wise. New tech generates new requirements regardless of your area of expertise. Hybrid work models are adding fuel to the fire, making managing internal communication necessary.

Add to that the fact that trends are changing rapidly, and you’ll have to consider additional training for your teams.

I.e., the green craze has changed the rules of the game. Businesses aiming to remain relevant have started investing in employee training so that they can install new fixtures and fittings that adhere to green standards.

Deploy New Tech

Lastly, we come to the unavoidable step pestering all industries: deployment of new tech. Even though plumbing doesn’t have much in common with, say, high-tech startups, advancements in the field have made it necessary for any business that means business to modernize its processes and approaches.

Examples of software plumbing businesses may make use of the deal with employee scheduling for small companies, efficient communication, process streamlining for large businesses, real-time monitoring, and clocking-in and out.

Additional points of interest depend on target niches, so thorough research is highly recommended. Don’t forget the green agenda, which is likely to yet bring doom to businesses struggling to keep up. Keep an eye on the developments and keep training your personnel.

Overall, the plumbing industry has a high potential of growing exponentially, so don’t be afraid of the challenges ahead.