The Bureau of Labor Statistics reported that the plumbing industry is growing quicker than average. On top of that, plumbers make a good salary in almost all states with abundant contracts.
While they may need to grind to get their professional licenses, the opportunities to earn for plumbers are limitless.
Running a plumbing business may be one of the most profitable options for most plumbers. However, there are some steps involved in doing so.
Therefore, it is necessary to understand these and how plumbers can run their own plumbing businesses.
How to run a plumbing business?
There are various steps involved in running a plumbing business. These are as below.
Get a license
Plumbing requires contractors to have a strong foundation in various subjects. These include math, science and, sometimes, technology as well. However, having a formal education or a diploma does not suffice.
Plumbers need to go through various steps to obtain their plumbing license for the state in which they want to work.
Plumbing licenses are not only about getting a permit to work. They involve going through formal plumbing education and experience to work in the plumbing field.
Several vocational training or apprenticeship programs allow plumbers to get their fundamental education. Once they do so, they can apply for more advanced plumbing licenses.
For most states in the US, having a plumbing license may not be enough. These states may require plumbers to have a contractor license as well to run their business.
The process for getting a contractor license may test their business and law knowledge as well. Overall, obtaining a plumbing license is crucial for running a plumbing business.
Choosing a specialty
The plumbing trade involves working on several plumbing-related tasks. For example, it may include the installation of drainage or pipe systems. On the other hand, some plumbers may work on sewer line systems or home renovations.
In some states, plumbers may only work on residential or commercial contracts. All of these are important specialties within the plumbing field.
Every plumbing business must decide the area that it wants to serve and choose its specialty accordingly. Plumbers can also offer general plumbing services.
However, having a niche can significantly increase the earning potential for plumbing businesses. However, plumbers must also have the expertise to serve that specific niche.
Register the business
For any business, it is necessary to get a registration. Plumbing businesses are no different, either. Plumbers need to register the plumbing business with the relevant authorities.
They will also need to abide by some rules and safety and business regulations that apply to plumbing services. The registration process differs based on the state in which plumbers operate.
Set a price
Plumbing businesses need to set a price for their services. Most businesses charge clients for the equipment and any services included.
However, these prices vary according to the type of business, the selected niche, and market rates. Most plumbing courses teach plumbers how to set the rates for their services. Therefore, they can use it for the plumbing business as well.
Most importantly, however, plumbing businesses must consider competitor prices. These businesses are competitive.
Therefore, setting prices according to the market norm is the best way to the pricing model. Initially, plumbing businesses need lower prices to attract new customers.
Get funding
Plumbing businesses need to bear costs to earn money. Initially, these costs will be higher. Usually, the plumbers that own the business also bring in the finance. Sometimes, however, that may not be an option.
Therefore, plumbers may need to secure a loan or get a partner to get funds for the newly initiated business.
Invest in equipment
Plumbers will need to invest in plumbing equipment based on the chosen specialty. For smaller tasks, the plumbing equipment required will be relatively inexpensive.
However, for larger contracts, plumbing businesses will need higher investments. Plumbing businesses typically need pipes, fittings, basic tools, safety equipment, etc.
Plumbing businesses also require transportation to transfer their equipment from the business location to the worksite.
Lastly, they also need to have office equipment for their offices, such as furniture and supplies.
Set up an office
Like any other business, running a plumbing business needs an office location. It is where plumbers can handle all their administrative work and attract clients.
Similarly, an office location is crucial to keep things centralized for businesses. Without an office location, plumbing businesses cannot operate properly.
Location is one of the most important aspects of any business. Plumbers would want their offices to be near areas where they perform their contracting work.
However, that is not a requirement. For most plumbers starting from a home office may be an option. But having an office is crucial regardless.
Conclusion
Running a plumbing business can be profitable because of the demand for plumbers in the US. Plumbers can maximize their profitability by running their own plumbing business.
There are various things that they must consider beforehand, though. Some of these are available above.