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How to Start a Plumbing Business in 9 Steps

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Free Plumbing Business Plan Template

February 28, 2024

11 Min Read

how to start a plumbing business
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A plumbing business company is a blend of the pleasure of working with the satisfaction of providing essential services. If you are keen on solving practical problems and have a background in mechanical design, then the plumbing industry aligns with your goals.

Starting a successful plumbing business is not easy. This requires not only technical expertise but also involvement in financial forecasting, business planning, complying with regulatory frameworks and tools, and developing lasting client relationships, however, it doesn’t have to be a trip from the pipeline dreaming up to pipe success is awesome.

We are here to guide you through all the possible challenges of installing your plumbing business, ensuring you have all the tools and knowledge at hand.

Let’s turn the valve so that opportunities flow!

Benefits of Starting a Plumbing Business

Starting a plumbing company project offers a unique and promising opportunity for aspiring entrepreneurs to start their new plumbing business. The plumbing industry is experiencing massive growth through urban development and technological advancement.

Let us explore what makes plumbing services a proper fit in the current market environment.

  • Rapid Industry Expansion
  • Flexibility
  • Demand for Smart Plumbing
  • Work Availability

It’s fascinating to see how the plumbing industry combines practical services with innovative trends like smart bathrooms!

Starting a plumbing business doesn’t need to have a brand-new idea. It is just a need to see people’s faces in your locality and offer them a solution.

To make a good plumbing business, first, look around you. Listen to what people complain about when it comes to their pipes and water. Think about any plumbing troubles you had. Is there something missing in the plumbing services out there?

Here’s how you can figure out what plumbing service to offer:

  • See what’s missing in the plumbing services available and think of how you can do it better.
  • Talk to people who might need plumbing to learn what bothers them the most.
  • Use what you know about plumbing to come up with a good solution.

Try to address the plumbing issue at once. Choose one specific area, like fixing leaks or installing eco-friendly toilets, and become the best at it.

1. Create a plumbing business plan

A Well-prepared plumbing business plan is not a formality but a roadmap that guides your journey and helps you secure funding.

It can be of several sections, including:

  • Executive Summary
  • Market Analysis
  • Plumbing services
  • Marketing Strategies
  • Financial Projections

Having a plumbing business plan not only allows you to understand the business structure but also acts as a living document of your plumbing business. Update it regularly as your business grows and evolves.

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2. Training and certifications

Having the proper certifications shows your expertise and builds trust with potential customers. So, be the master plumber by leveling up your plumbing skills.

Here are simple steps on how to do this.

  • Start with the basics: Enroll in a plumbing job at a local trade school or community college.
  • Learning: These programs combine classroom instruction with on-the-job training under the supervision of experienced plumbers.
  • Obtain a License: Obtaining a business license usually involves testing your knowledge of plumbing laws and passing a proficiency test.
  • Keep learning: Attend meetings and make further progress in other subjects.

Focusing on your education and getting the right licenses and certifications shows that you are serious about becoming a great plumber. This commitment not only demonstrates your skills but also increases client trust and scope.

It is well-proven that the more you learn and develop skills, the more successful you will be in your career.

The first step to starting a successful plumbing business is registering your business so that your business has a strong legal footing in the market.

Decide if you want to operate as a sole proprietorship, a limited liability company (LLC), or another legal entity. Each option comes with business taxes and personal liability. Don’t forget to include obtaining a plumbing contractor license in your plan.

Once you have chosen your business structure, you must register your plumbing business with the appropriate state and local government agencies.

Remember that legal documentation such as obtaining a plumbing license and insurance requirements can vary depending on where you are operating your services.

4. Financing your plumbing business

Now let’s focus on the financial side of becoming a plumbing business owner. You will need capital to purchase plumbing tools, hire labor, and pay the initial operating costs. This question may come to mind:

How much money do I need and where do I get it?

If you already have this thought, it is time to plan your finances. Detail your expected sales, revenue, start-up costs, cash flow, and running costs to understand your business expenses.

Many plumbing businesses start by self-financing, or “bootstrapping” for their new plumbing company This can be favorable because it allows you to have full control of your business but if your savings are not enough, here are some options for business loans to consider funding from:

  • Small Business Loans
  • Angel Investors
  • Venture Capital Firms
  • Government loan schemes

Another option would be to borrow money from friends and family. Yet, it’s essential to approach such arrangements with clear terms to avoid personal conflicts.

Careful planning and consideration will form a solid foundation for your plumbing business and help to attract the right investors to fund your plumbing business.

5. Determine your service offerings

Not all plumbing business owners offer outstanding customer service. Deciding on your expertise helps you attract new customers and build a reputation for your plumbing business. Here are some things to consider:

  • Residential Plumbing Services: This includes a wide range of services from repairing leak fittings, and toilets in homes to installing new fixtures and water heaters.
  • Commercial Plumbing Services: Focus on major professional projects such as maintaining complex plumbing systems, repairing underground pipes, and installing backflow prevention devices
  • Specialty Plumber: Go into the niche by providing unique services such as trenchless sewer repairs, green plumbing solutions using environmentally friendly technology, or medical gas installations.

If you want to go with special services, there is a board category that needs to be addressed again. Some common types are:

  • Gas Service: Deals with gas leaks and related problems.
  • Pipefitting: Specialize in system and pipe installation

Remember, you can always expand your service offerings later, but starting with a defined plumbing service helps you stand out in the market.

6. Get business insurance

Plumbing mishaps happen, and being prepared is key.  Take the necessary insurance policies to protect your business:

  • General Liability Insurance: Covers bodily injury and property damage claims resulting from accidents or negligence in the course of your business.
  • Workers’ Compensation Insurance: Protects your employees if they are injured on the job, covering medical expenses and lost wages.
  • Commercial Vehicle Insurance: Covers your business vehicle in the event of an accident, including injuries to other vehicles, property, and others.
  • Commercial Auto Insurance: It covers the driver’s liability if they cause an accident

Depending on your specific industry, consider other coverage options such as equipment or pollution liability insurance.

7. Purchase necessary equipment and tools

Having the right plumbing equipment is important. Invest in high-quality plumbing equipment and consider logistics like a reliable work vehicle to transport your supplies.

Here are some common tools and safety equipment one should consider purchasing for their business operations:

  • Wrenches
  • Plungers and Drain Snakes
  • Pliers
  • Pipe Cutters
  • Soldering Equipment
  • Teflon Tape and Sealants:
  • Safety Gear

Proper plumbing makes any plumbing job easier and faster. With the right tools, you can perform a variety of tasks such as tightening or loosening pipes, cleaning blockages, cutting or joining pipes, covering leaks, etc.

Damages can occur with bad quality tools which further affect the performance of plumbers. Therefore, high-quality plumbing equipment is a smart investment for any plumbing job.

8. Build a team

As your plumbing business begins to grow, it’s a good idea to expand your workforce. It is very important to hire experienced and licensed plumbers who are dedicated to providing the same high level of service as you.

By building a strong team, you’re not just adding human resources, you are building a team of professionals who can help grow your business to new heights.

A strong team is the backbone of any successful business, boosting you to consistently deliver exceptional service, thus strengthening your reputation in the marketplace.

9. Promote your business

Now that you’re all set to launch a new plumbing company, it’s important to know how to potential customers. Even the most effective plumbing service needs to be focused on the target market when starting with their plumbing service.

At this point, you need to develop your go-to-market plan to promote your plumbing business. If you are planning for immediate services for homes or looking to secure contracts for larger projects, a strong marketing strategy is essential to getting your new plumbing to greater heights.

Consider these questions to answer for an effective promotional strategy.

  • What will be your sales strategy and what channels will you use to engage with potential customers?
  • How much budget do you want to set aside for marketing?
  • What marketing tools will you need to reach the audience?
  • Do you handle marketing in-house, or are you planning to hire an outside agency?
  • Which marketing channels are most likely to reach your target customers best?

Considering all these marketing channels is understandably overwhelming and confusing. But don’t worry, we’re here to help you understand them easily and create a successful development strategy

Some marketing strategies you can use for your plumbing business include:

  • Use Google Ads or Local Services Ads to advertise your services to attract customers looking for immediate plumbing solutions.
  • Creating a business page to showcase your business on social media, share tips and advice, and communicate with your followers and potential customers.
  • Reaching out to homeowners associations, local builders, or real estate agents to collaborate and secure contracts for larger projects.

Initially, it is important to experiment with a mix of marketing strategies to determine what works best for your plumbing business. Don’t worry too much about the initial cost of marketing, view it as an investment to expand your reach and establish your brand in the competitive plumbing marketing market.

Tips for Starting a Plumbing Business

Plumbing services can be a promising industry in today’s market, but it requires ways to differentiate your business and make a profit. You can think of some tips to grow your new plumbing business.

Service Specialization

Consider specializing in a specific field of plumbing:

  • Residential Plumbing: Focus on home plumbing needs, from installation to maintenance.
  • Commercial Plumbing: Addresses businesses and commercial properties that require large-scale plumbing solutions.
  • Emergency Plumbing: Provide emergency services 24/7 for immediate plumbing issues, allowing you to isolate and attract needy customers immediately.

Quality and Equipment

Invest in high-quality tools and equipment to ensure the efficiency and reliability of your services. With the best tools, quality workflow can do wonders for customer expectations which ultimately results in repeat business.

Branding and Marketing

Create a powerful and unforgettable brand for your plumbing business. Make sure your brand accurately reflects your skills, beliefs, and high standards.

Integrate search engine marketing with traditional channels to better reach your target audience.

Plumbing Services

Provide excellent customer service to build trust and encourage referrals. Being responsive, timely, and transparent about price and service can have a huge impact on your business reputation.

With the basics in mind, you can build a solid foundation for your plumbing business, differentiate your business in the marketplace, and create a strategy for success.


The demand for plumbing services is constant, but the growth of such projects goes beyond just providing basic services. Success requires a comprehensive business plan, dedication, and the ability to adapt to new technologies and changing market trends.

Maintaining your core principles, paying close attention to business developments, and using Business Planner Software to effectively plan your business.

With the right approach and strategy, your plumbing business can not only meet current needs but also set new standards of efficiency and innovation for other plumbing companies.

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About the Author


Shyam Dua

Shyam Dua is a seasoned tax professional with 40+ years of experience & a mentor at SCORE. He stands out due to his exceptional business planning skills. With a keen eye for detail and a strong financial acumen, Shyam crafts compelling business plans that pave the way to success. A CPA with a philanthropic heart, Shyam's strategic expertise, and dedication make him an invaluable asset in shaping thriving business ventures. Read more


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