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How Can I Build a Plumbing Company?

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    Legal Details

    • In order to begin a plumbing business, obtain all needed professional licenses for yourself and other employees. Get a business license and insurance as well. Obtain legal advice for what you need to do from an attorney and from local business organizations. Set up the business as a sole proprietorship, partnership or corporation. Make sure you have insurance for workers, vehicles and liability issues regarding client property to protect yourself.

    Physical Tools

    • You will need to purchase a vehicle to transport tools and equipment. A paneled van with a sliding side door and double doors in the back works well. You will need hacksaws and cutting tools made specifically for metal pipes and CVC plastic pipes. Your tools must include an acetylene torch, shovel or post hole diggers, pipe wrenches in various sizes, screwdrivers, a variety of gaskets and faucet accessories, plus routing tools to unclog drains. You will also need flashlights, electric lights for hanging up and battery-powered lights.

    Marketing Tips

    • Plumbers need certain marketing tools, such as business cards and local advertisements. Clarify whether you work by the job (on pay rate) or by the hour. Never charge too far below other plumbers, since this can denote you as inferior. One option new plumbers use is to allow the client to select the billing method. For example, you might charge $65 per hour or a flat fee of $250. If you are not confident of figuring time slots in the beginning, it's best to work by the flat fee method. You can always refund money to clients if you finish early.

    Create a Win/Win

    • Your business will grow if both you and your customers are happy. Designate your boundaries early on to ensure you don't get trapped into taking jobs no one else will take. For example, if you are not confident of working on homes built before 1930 with lead pipes, state this early on. Create a niche for yourself that does not overwhelm you. A homeowner with a collapsed sewer line or corroded drain lines can have a clogged drain that is really a $2,000 job requiring replacement. Once you sign a job agreement to fix a drain for $250, you can have serious legal issues at hand if the pipes are collapsed or unusable under the house.

    Good Employees

    • In selecting employees or contract partners for specific jobs, decide what personal qualifications fit your idea of a good associate. In the plumbing business, you want individuals who will work in a neat and tidy fashion and clean up their messes. Get recommendations on all of your workers and inquire about the way they respect homeowners. Since plumbers must have free access to the whole house at times, you will want to do an extensive background check on all workers. Work with each plumber personally on a tough job to experience how well this person resolves issues. But, make sure each worker restores pipes and drains with pride. One quick-fix employee can destroy your reputation with many potential clients.

    Word of Mouth Advertising

    • Any good plumbing business is built on word-of-mouth advertising. Ask customers to fill out a detailed survey sheet, even it they have unfair criticisms or unreasonable expectations. Hiding from the facts will create long-term business problems that you might not be able to overcome.

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