Plumbing is a lucrative business. Business owners and master plumbers can make between $60,000 and $90,000 or even more a year. On the other hand, plumbers on contract working in commercial or residential settings earn up to $55,000 on average annually. This translates to approximately $30 per hour. Nonetheless, plumbing business owners’ salaries might vary depending on specialty skills, experience, demand, and equipment.
Are you planning to start a plumbing business and want to know the salary you can earn monthly or yearly? You are in the right place. Plumbing is a profitable business that can give you a stable income depending on your hard work and resilience. Your experience and the equipment you use contribute to how much money you generate. However, you should not only think of how much salary you will earn, but also get the right strategies, define the purpose, and have clear objectives to succeed.
Here you will get a clear picture of the plumbing business owner’s salary, how much money you need to set up the business, and all tips for success. Besides, a step-by-step guide on starting a plumbing business is highlighted in detail to help you begin right.
How Much Money Is Needed To Start A Plumbing Business?
Money makes money; this saying is true when it comes to plumbing. You will need to invest a reasonable amount to generate income like successful plumbers in the market. A capital of at least $10,000 is suitable for setting up the business, assuming you have the plumbing license and a truck already. If not, then you will need $600-2,000 for a business license and insurance. Besides, a truck is necessary to carry plumbing tools which cost varies based on size and brand.
However, the cost of starting a plumbing business is moderate compared to a company that generates more or less the same salary. It gives you a chance to set up the business with low overhead and expand it as you grow your client base. For instance, you can start with a home office, one plumber, and one truck. Once you gain your foot, you can increase the overhead.
It is also possible to begin the business with a lesser amount as the money does not determine the success, rather, setting up your business right.
How To Start A Plumbing Business?
Here are the steps you can follow to start a successful plumbing business:
Get The Required Certification And Licenses
Getting the necessary certification and licenses is the first step to starting a successful plumbing business. A plumbing certification and a permit are prerequisites to run a plumbing company legally, which takes 2-6 years to obtain. Start by registering for a certification program or trade school at your local college to acquire the necessary skills.
Upon completing your course, you should join an apprenticeship to build your network, gain prerequisite experience, and start a plumbing business. The internship takes 2-5 years, and it is a mandatory aspect if you want to become a plumber and run a plumbing business.
After completing your apprenticeship, you should take a licensing exam to get a plumber license. The requirement for sitting for the exam varies from one state to another. Some require you to renew the license after some time, while others do not. Once you get your permit, you can work as a journeyman plumber or start your own plumbing business. However, in some states, you must become a master plumber to operate your own business. This will take 5 years or more, but the achievement is rewarding both career-wise and financially.
Create A Plan
A business and pricing plan is necessary to guide your vision and help you to be accountable. Besides, the strategy will help you secure funds or employ new workers as you progress. Ask yourself the following questions:
1. What is the name of your plumbing business? If you cannot figure it out, use your name and pick another adjective that differentiates you from your competitors.
2. Which locality do you seek to serve? Check that there is a need for plumbers in your area of interest. Also, get to know the common types of plumbing required and what your competitors offer.
3. Who are your target customers? Uncover good business ideas by analyzing demographics such as building types, average income, lifestyle, and age.
4. What is your area of specialty, i.e., your unique selling point (USP)? You need to identify what sets you apart from the competitors and use it to market your business. Convince your target customers why they should choose you over the others who provide similar services.
5. How will you price your services? This is an important question as the customers would ask about the cost of your plumbing services. Instead, never be caught off-guard seek to know whether you will charge based on time and materials (T&M) or a flat rate.
6. What are you seeking to achieve in the short and long term? You should define your business goals if you want it to last. Do you want to expand your business to other localities and hire more workers? Are you planning to take some vacations? Highlight all the goals on a paper so that you can hold yourself accountable and have a sense of fulfillment when you achieve them.
Invest In Essential Plumbing Equipment
There are some of the essential plumbing equipment you will need to start your operations. You can buy the used equipment to minimize the starting capital and then slowly purchase specialty tools to have skills, licenses, and demand.
Apart from the essential plumbing equipment, you will need:
1. Few outfits of professional plumbing uniform
2. Business card for marketing your business
3. The client relationship manager (CRM) to help you document customer’s data, payment due, parts and equipment, estimates, and before and after photos of work done
Register And Insure Your Business
Before you start running your business officially, you need to register it based on your place’s state and local laws. Always check with the state licensing board the licenses, permits, and other prerequisites to get all the paperwork ready. It is also best to insure your business accordingly to cover risk in case losses occur.
Insurance can cost you between $600 and $2000, depending on your claims history and business size. The common types of insurance for the plumbing business include:
1. General liability insurance
2. Workers compensation (applies if you have a certain number of workers in some states)
3. Inland marine insurance
4. Commercial automobile insurance
Set Up An Office
Your business’s backend and general administration should be done in a central place for efficiency and effectiveness. Inefficiency will result in the loss of huge sums of money that will stress you in the end. On the other hand, smooth operations ensure positive cash flow while leaving your customers impressed.
An office will ensure you have a central place to store client information, make calls, create and send invoices, receive and schedule jobs, and collect payment. However, if you want to digitize your business, you can use plumbing management software and run it online.
The software lets you:
1. Make bookings easier
2. Schedule appointments to your online calendar
3. Automate client’s follow-up and emails
4. Creates estimates and customer’s invoices
5. Tracks debtors and collect payment
6. Manage your business at your comfort by use of smartphones, tablets, or desktop
7. Attract and retain customers as your small business would look big to all
Build Your Offline And Online Presence
Once you are done setting up your business, it is time to market it and make deals with the first customers. You do not need to spend huge sums on marketing as this can require a lot of capital. Consider using referrals for a start as it has been proven to be 90% effective. For a referral system to work, you should give each of your customers the best services, and they will gladly bring you more.
Your online presence is also paramount. In this regard, you will need to create a business website and social media accounts for people to find you and get in touch for services.
Sign Up For Plumbing Courses, Read Plumbing Books To Stay Up To Date With Technology
Innovation in plumbing is inevitable. If you do not keep up with the new technology, your business risks becoming obsolete. Do not be excited with the positive reviews and new orders coming in until you forget to keep your skills in check. Read plumbing articles and books, sign up for online courses and stay in touch with other city officials and plumbers for tips, advice, and stories. A good attitude contributes to success as positively talking to others makes them share knowledge effortlessly.
Owning a plumbing business is worth as you can generate up to $90,000 a year. However, starting your business right is important. You need to get the required certification and license, create a plan, buy the essential equipment, register and insure it, set up an office, and build an offline and online presence. Besides, you should sign up for courses, read plumbing books and stay in touch with other people in the industry for long-term success.