How to set up a plumbing business

Written by martin muchira
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How to set up a plumbing business
Have a good business plan before trying to set up your plumbing business. (business plan 2 10509 image by pablo from

Setting up a plumbing business requires you to make major decisions about your business plan. It is at this time that you will have to turn mere ideas into actual actions. You will have to set both short-term and long-term goals and design the methods most appropriate to achieve these goals. You are most likely to succeed if you are at least experienced in plumbing.

Skill level:
Moderately Easy


  1. 1

    Create a business plan. Your business plan should describe your business goals and also give the scope of your business. Even though the length of the business plan totally depends on the amount of information you wish to give, ideally it must contain a description of your business, including background information, your marketing plan, financial plan as well as management plan.

  2. 2

    Establish sources of finance. Calculate your start-up costs and establish how much initial set-up expenses you are likely to incur. Begin by finding out whether your savings are enough to finance your set-up. Consider getting a business loan from a bank or other financial institution. Also inquire from your local authorities about government backed loans and grants. To manage your finances effectively, you must clearly separate your business finances from your personal finances. Put an accounting system such as QuickBooks in place to help you manage your business finances.

    How to set up a plumbing business
    Get financing for your business (finances image by Paul Laroque from
  3. 3

    Choose a location. Picking the right location will help you to set up your business for success. If you are starting out small, you can begin by setting up your business at home. However you must have all necessary equipment and your customers must be able to reach you on phone during your working hours.

  4. 4

    Get a license. A plumbing license will keep you up-to-date with state requirement. The process of getting a license will depend on the state you intend to set up your business in. Therefore, visit your state commerce website and read through the business licenses link. You will get specific details about licensing requirements pertaining to your state as well as the application procedure.

    How to set up a plumbing business
    Get a license (business image by peter Hires Images from
  5. 5

    Purchase tools and equipment. You should first research whether it will be favourable to buy or lease your plumbing equipment. Think about the costs, legal parameters as well as use restrictions. If you decide to lease, ensure that a lawyer looks over the lease agreement before putting your signature on it. Look through IRS guidelines to find out whether they will consider your lease a purchase for tax purposes.

Tips and warnings

  • Advertise your business so as to attract more customers. You might consider launching a website.
  • Benefit from discounts on plumbing machinery and equipment as well as professional training and development by joining a plumbing association.

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