How To Start A Plumbing Business?

Starting a business is a stressful journey because you need to take a lot of things into account, and you need to know a lot of stuff about the business you will be starting with.

For example, suppose you are going to start a finance business. In that case, you need to have the necessary qualification for that kind of business and know the details, including the required licenses that you must have.

One of the most in-need professions is plumbing, and everyone must have a plumber they always call if something happens in their household.

According to Jobber, the plumbing job market is expected to grow by 2% from 2021 to 2031.

For this, having a plumbing business could be highly lucrative if you execute everything well, but it is not that easy.

This article will discuss what you need when you start a plumbing business and how to start a plumbing business.


How To Start A Plumbing Business?

Here is a step-by-step guide on how to start a plumbing business:

1. Formulate a Business Plan

Business Plan

When starting any business, the first thing is to have a solid business plan; this is no exception with plumbing businesses.

It would help if you constructed a solid business to plan to know about what you want to do, how you want to approach it, your pricing strategy, and many other details both for the short-term and long-term.

This business plan will show you your financial projections, growth opportunities, and overall goals with your plumbing business.

2. Get Your Hands Dirty

Training and Experience

When you start, you will be the only employee if you are not putting in a lot of capital.

However, either way, you need to have the necessary training in the plumbing business and have enough experience to understand how anything in the plumbing industry works.

This includes the customer-employee relationship and how to do your work effectively and in the most efficient way, safely, and legally.

You need to have your plumbing license and ensure that your employees who will do plumbing also have a plumbing license because you can’t do everything if you don’t have a plumbing license.

It is crucial to know everything about the industry and the work and have the legality to ensure that you can do any hard work your potential clients will request from you.

3. Get Smart With Finances


Just like any other business, you need money. Both when you are starting and continuing your operations.

You need to ensure how much you need as capital for equipment, marketing, company formation, and other details.

The best way to ensure this is to work with a lawyer or a professional in the sector.

Once you set everything up, you must create a financial roadmap to ensure that you are not losing money and have enough cash flow to stay afloat as a business.

You also need to make plans to invest back into your business with the cash flow you will have from your company.

Working with a financial advisor to make accurate decisions and create an excellent financial roadmap could be a good solution.

How much money do you need to start a Plumbing business?

You will need between $6,325–8,150 to start your plumbing business. Here’s a breakdown of expenses:

  • Business license and registration – $75–400
  • Business insurance – $600–2,000/year
  • Plumbing business software – $400+
  • Tools and inventory – $5,000+
  • Branded uniform and work boots – $100–200
  • DIY website and business cards – $150

Also Read: How Much Money To Start A Plumbing Business Of 2023?

4. Purchase the right Plumbing Equipment

Purchase the right Plumbing Equipment

After starting your plumbing business you will need to purchase some common plumbing equipment that will help you in running every now and then to the hardware store.

Here’s a list of plumbing equipment that you should get:

  • Hand tools: Pliers, crescent wrenches, grips, pipe cutters, handsaw.
  • Inventory: Plastic/copper pipes, fittings, elements, inlet valves, thermostats.
  • Cordless battery tool set: Drills, screwdriver, saw grinder, impact driver.
  • Safety equipment: Goggles, plumbing gloves, knee pads, heat shields.

5. Apply for Business Registration & Insurance

Business Registration & Insurance

Before legally acquiring customers, you are required to do your business registration and obtain insurance.

Here’s how you can go about this:

  • Choose a business structure: There are different types of business structures to choose from, such as sole proprietorship, LLC, partnership, etc. Your business structure would affect your business, so choose the one that best matches your goals.
  • Get your business name registered: Choose a name for your business and run a trademark search to see if there is already a business under that name. If not, then register your business under your chosen name.
  • Apply for permits & licenses: Check with your local municipality to obtain the necessary license and permits required in your area to run a plumbing business.
  • Apply for EIN: If you plan on hiring people to work under you or are starting the business in partnership, then get an employer identification number (EIN).
  • Obtain insurance: Insurance is very important to safeguard yourself and your business against losses, damage, and other unexpected things that may occur.

6. Leave no Legal Loopeholes


The last step to successfully starting a plumbing business, or any other business for that matter, is to be legal so that you can pay your taxes the right way and make sure that nothing you do is illegal with other things because when you start a plumbing business and start doing jobs as a plumber, you are legally required to have a plumbing license to operate.

Working without a plumbing license under a legal plumbing business is a crime, and you might get penalties for it.

That is why, when everything is set in stone, and you are sure that you will pull this off, create your company legally before taking in any customers.

This might be a little bit costly or cost nothing, depending on the state you are living in, but this will be your first investment towards your business.

The best way is to talk to a lawyer and get their opinions on how to do it the best and right way.

Legal Requirements For Starting A Plumbing Business

7. Set Competitive Prices

Set Your Prices

Calculate the labor cost, overhead cost, material cost, etc. Factor in the profit margin and then set up a competitive price for your plumbing business.

You do not want your prices to be the highest in your area as you are just starting out and do not want to scare your potential customers away

Nor do you want to keep the lowest price as that might make people doubt your service beforehand.

8. Advertisement Can Make or Break the Deal


After setting up a business, one of the most important things is to know how to do the right advertising and marketing for your business.

With businesses like plumbing businesses, these issues get a little bit tougher because you need to find the right audience within a specific location.

You can’t do global advertisement and try to reach out to as many people as possible around the world.

Doing location-specific advertisements is always harder, but whichever advertisement you will do, you need to have a social media and online presence to find the right people.

You need to create a good roadmap for your advertisement and marketing plans and move according to that.

You first need to have a good online presence and set yourself up on a variety of maps like Google Maps and make sure that people can find you.

Later on, it would be a good addition to work with a marketer or an agency so that they will do everything in accordance with what you need and how you need it.

Marketing and advertisement are extremely important if you want your business to succeed with a lot of clients and a cash flow.


Also Read: Plumbing Leads – 4 Methods to Get Hands-On Qualified Leads

Also Read: How Much Do Plumbing Business Owners Make Of 2023?

Tips on Starting a Plumbing Business

Starting a plumbing business can be daunting. However, by staying organized and keeping things in order, you can sail through the process with less difficulty.

Here are some tips for you on starting a plumbing business:

Remain Organized

You might get lost with so many obligations such as paying taxes, payroll, maintaining accounts, etc. As such, staying organized helps.

Maintain a calendar, set reminders for different events, complete your tasks on time, etc., to ensure all your business activities are carried out smoothly.

Look for Ways To Cut Overhead Costs

Finding ways in which you can reduce overhead costs can help you in securing high-profit margins. So try and find ways in which you can reduce overhead costs.

For example: look for second-hand vehicles or electric vehicles to reduce travel costs, buy in bulk to save cost, store equipment in your own garage to save on rent, etc.

Do Not Hestitate to Distribute Tasks

As a new business owner, you may feel like doing everything on your own to save money or just to feel like the king of your world.

However, take help whenever needed. For example: hire an accountant to maintain your financial records, hire administrative staff to handle calls from customers or complaints, etc.

This will let you to focus on other important tasks of your business more.

Take Breaks & Reward Yourself

Working 10-12 hours daily might take a toll on you. So make sure you reward yourself by taking weekends off to go on a vacation or to spend time with your family.

Do not micromanage everything and delegate duties to stay relaxed. Also, make sure to appreciate your team and yourself for achieving milestones to keep them motivated.


See Useful Tips From Reddit Users

Starting my own plumbing business
by u/brutus7689 in Plumbing

The Verdict

To conclude, starting a plumbing business requires a lot of work because you are investing in a journey both with your money and your time.

You need to set everything up, create a good roadmap, and talk with professionals, lawyers, accountants, and many other people to make sure that there are no mistakes in your calculations and that you can afford to pay for the capital you need in the first phases or you will be able to get the financing.

Also, you also need to make sure that you will be profitable after setting up a business and make long-term plans so that your succession will not depend purely on luck.

You need to consider a lot of stuff and be extremely sure of your steps towards starting your own plumbing business.


Is starting a plumbing business worth it?

There has been positive growth in the plumbing industry over the years, and the demand from customers has been increasing too.

We saw a growth of 3.7% in the plumbing industry from 2020, and the plumbing industry is also valued at $124 billion right now. So yes, starting a plumbing business is worth it. 3

How to find customers for Plumbing business?

Some strategies using which you can find plumbing business customers include:

  • Create a customer referral program.
  • Start a website.
  • Send out a newsletter.
  • Distribute pamphlets.
  • Register on Google my Business.

How much can I make as a plumbing business owner?

On average plumbing business owner make between $150,000 to $250,000 per year.

However, with more experience and name you can make even more money.

NPC Overall Rating


The National Planning Cycles is committed to producing high-quality content that follows industry standards. We do this by using primary sources, such as white papers and government data alongside original reporting from reputable publishers that were appropriate for the accuracy of information while still being unbiased. We have an editorial policy that includes verifiable facts with due credit given where applicable.


Leave a Comment