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Plumbing Business Plan

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Water Tubes Plumbing

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Water Tubes Plumbing is a Eugene-based plumbing company that has chosen residential new homes as their niche. Water Tubes will be able to handle any service request for plumbing of volume home builds or custom new homes. By concentrating on a specific segment of the market, Water Tubes will be able to rapidly gain market share demonstrating their proficiency and professionalism in serving a specific market niche.

Water Tubes will leverage their competitive edges of professionalism and trim quality by properly training all of their employees and impress customers who are used to the lackadaisical attitude of most plumbers. Water Tubes will have a total of four employees and will reach profitability by month eight.

Plumbing business plan, executive summary chart image

1.1 Objectives

The objectives for the first three years of operation include:

  • To develop a company whose primary goal is to exceed customer’s expectations.
  • To increase sales so in four to five years Don can hire another master plumber.
  • To create a sustainable business, surviving off its own cash flow.

1.2 Mission

Water Tubes Plumbing’s mission is to provide the finest new house plumbing installation. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers.

1.3 Keys to Success

The keys to success are to provide the customer with a fair price and outstanding service.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Water Tubes Plumbing, soon to be located in Eugene, OR, will offer plumbing services for residential new houses as well as custom new houses. The business will be based out of Don Roto’s house. Water Tubes will have four employees by the end of the year.

2.1 Start-up Summary

Water Tubes will require the following equipment and materials:

  • Two trucks (used) fitted with a pipe rack on top.
  • Assorted pipes (different diameters and materials).
  • Assorted fittings.
  • A 30 gallon bucket to store fittings.
  • Pipe wrenches.
  • Reciprocating saw.
  • Circular saw.
  • Whole hog (high torque right angle drill).
  • Cordless screw gun.
  • Propane torch.
  • Cast iron pipe cutter.
  • Extension cords.
  • Pipe dope (Teflon tape in paste form).
  • Computer with CD-RW, printer, Microsoft Office, QuickBooks Pro.
  • Desk, chair, and filling cabinet, and assorted stationary.
  • Mobile phone.

Please note that the items which are considered assets to be used for more than a year will be labeled long-term assets and will be depreciated using G.A.A.P. approved straight-line depreciation method.

2.2 Company Ownership

Water Tubes Plumbing is a sole proprietorship owned by Don Roto.

Water Tubes offers the finest in residential home plumbing construction as well as custom new home construction.  Residential construction is chosen because it is straight forward and clean.  Estimates are far more accurate and the company is dealing with a few contractors instead of many home owners.  Additionally, there is no need to be on call 24 hours a day, a major downside of being a  traditional plumber.

New construction will be typically bid at $1 per foot plus a multiple of $400 per fixture.  Fixtures include sinks, toilets, tubs, etc.

The two other elements of Water Tubes services are professionalism and trim quality.  Professionalism of Water Tubes is clearly a service offering that will be highlighted as well as trim quality which is the part of plumbing that is visible to the customer.

Market Analysis Summary how to do a market analysis for your business plan.">

Water Tubes  will be focusing on a specific niche in the plumbing market, new homes.  The company will target both volume builders of new homes as well as customer builders.

Through a combination of networking activities and advertisements, Water Tubes will increase their visibility among home builders allowing them to gain market share.

4.1 Market Segmentation

Water Tubes will target two distinct segments in the plumbing market:

  • Volume residential home builders . These builders are creating many different homes, often at the same time, often on the same plot of land.  These builders are in need of a professional, well priced, reliable plumber for all of their residential new builds.  This is an attractive market niche because the plumbing jobs are clean, numerous, and reasonably easy to do.  Once a builder has found a plumbing company that they are happy with, a long-term relationship is often established, ensuring a constant flow of future jobs.
  • Custom home builders . These builders are in need of a plumbing company for their custom projects.  This segment is attractive because the margins are better than typical build jobs and the projects can be fun to do because it requires creativity and thoughtfulness to accomplish the task within the established designed constraints.  This target market makes up a smaller percentage of Water Tubes forecasted sales.

Plumbing business plan, market analysis summary chart image

4.2 Target Market Segment Strategy

The plumbing market (excluding direct to the consumer jobs) is a highly networked industry where everyone knows everyone and jobs are won or loss by who you know.  With this in mind, Don will work hard to establish himself as an experienced, professional plumber who is concentrating on the residential new builds market.  This will be done in part through networking with all home builders.  The networking will be an important method to increase visibility of Water Tubes because most home builders are always looking for professional, high-quality plumbers.  It is advantageous for Water Tubes to position themselves as solely working with the residental new build market because it is attractive to builders to form a relationship with a plumber that is specializing on the new build market and not trying to do a little of everything. Water Tubes will be marketing themselves with an advertising campaign in the local home builders journal. 

4.3 Service Business Analysis

Pro Tip:

In order to do work in the state, it is required that a deposit is made into the workers compensation fund of $4,000 during the first year.  This is only for new companies that have no record of revenue, and no record of worker compensation history.  After one year of no claims, $1,000 is refunded per year and after five years the entire amount is refunded.  In essence, this is acting as a bond for newly formed companies.

The timetable for work in this niche is as follows:

  • Two people, one full day, rough-in (plumbing in the floors and concrete).
  • Two people, one full day, top-out (plumbing in the walls).
  • One person, one full day trim (sections visible to the end-user).

Please note that within the industry ratios’ the gross margin for the industry is significantly lower than what is forecasted for Water Tubes.  The variance can be explained by the fact that the industry ratios are for repair plumbing as well as new construction.  The repair work is more parts intensive and has skewed the gross margin ratio.

4.3.1 Competition and Buying Patterns

The plumbing market is quite competitive, and consequently in order to reap decent profits, large quantity of work must be done.  Competitors can be broken down into three groups:

  • Chains : these plumbing companies are a franchise or a division of a larger chain.  The chains typically do repair work instead of new building construction, but sometimes they do work with new builds.
  • Private companies : these companies are typically local.  In order to generate sufficient revenue, they will offer a wide range of services.
  • Large commercial & residential companies : these are the local Starbucks of the plumbing world and will bid on any type of plumbing project, whether commercial or residential, repair or new builds.  The majority of jobs that this competitor will work on is the larger commercial projects, but a getting a contract with a volume home builder would be attractive.

The buying habits of the target segments is based primarily on networking.  Once a relationship is established, the builder will typically give the plumber one to two jobs to display their work before any type of long-term contract/relationship is developed.

Strategy and Implementation Summary

Water Tubes will first increase visibility through networking activities.  Don will leverage his years as a local plumber working for a larger company.  Once Water Tubes has developed visibility, they will highlight their competitive advantages of professionalism and trim quality with a test project for the builder.  Generally, Water Tubes will be able to win over contracts after their initial display of workmanship.

5.1 Competitive Edge

Water Tubes has two competitive advantages that they will leverage to gain market share:

  • Professionalism . Fortunately for Water Tubes, professionalism seems to be absent among many plumbers skill sets.  Water Tubes will exhibit their professionalism in all aspects of customer interaction as well as job performance.  It is very common for plumbers to bid out for more items that they can handle at once.  This is done because the assumption is that they will not get all the jobs they bid for so it is likely that their job load will be balanced out in the long run.  Some times this works, other times it fails.  This is a common source of unprofessionalism that will not happen at Water Tubes.  Additionally, all employees will be indoctrinated into this customer-centric culture, ensuring that all interactions with anyone from Water Tubes will be a positive experience.
  • Trim Quality . This is the part of the job that is visible to the customer as opposed to the bulk of the work that is hidden behind cabinets and walls.  There are not a lot of plumbing companies that have consistently good trim quality.  This is one way that Water Tubes can easily stand out relative to the competitors.  Having high trim quality is also an easy way to impress home builders since they will have to fix any issues that are unsatisfying to home-buyers, so sloppy trim work will usually have to be remedied at some point, usually when it is inconvenient.

5.2 Marketing Strategy

As mentioned earlier in the Target Market Segment Strategy, Water Tubes marketing campaign will be based on both networking as well as advertising.

  • Networking . This will consist of meeting with builders that Don had worked with in the past, as well as others in the industry.  Don will chat with them and let them know about his current venture and request a trial build to prove himself.  Because the industry is so closely networked, whenever he runs into someone he will mention his new company.  This will spread the word rather fast as contractors tend to bump into each other all over town, both socially as well as professionally.
  • Advertising . Don will be running advertisements in the local home builders journal.  This publication is a printed resource that home builders will typically consult when they are in need of a contractor for a specific service in the construction of their house.  Because the readership is targeted and so closely interconnected, advertisements will be quite effective.  Don will also put an advertisement in the Yellow Pages, however Don believes that the advertisements in the trade journal will be more effective due to the closer demographics and behavior factors of the readership group.

5.3 Sales Strategy

Water Tubes sales strategy will be to get at least one job with the new builder to provide them with an example of Water Tubes work.  Based on the current competition, a display of Water Tubes competitive edges of professionalism and trim quality will likely be more than sufficient to turn a prospective customer into a long-term relationship.

5.3.1 Sales Forecast

The first month will be used to set up the business.  The second month will be used to train an employee as well as to undertake several jobs.  The third month will be used to train two more employees as well as do a few other jobs.  By the fourth month it is forecasted that Water Tubes will have a volume relationship with one builder.  Month four will also see a custom home built.  Month six will mark the development of another volume builder.  From month six on there should be a steady increase in sales activity.

Plumbing business plan, strategy and implementation summary chart image

5.4 Milestones

Water Tubes will have several milestones:

  • Business plan completion.
  • Office set-up.
  • Training of all employees.
  • The establishment of the second volume home builder.
  • Profitability.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Don Roto received his Bachelor of Arts from the University of Portland.  After college, Dan decided to learn more about plumbing, one of the odd jobs that he did in college.  After six months of inconsistent work Don landed a job with a larger plumbing company that did both residential and commercial work.  Don started as an apprentice, but within four months had passed his journeymen exam.  Don continued to work for this company for ten years, receiving his master plumbing designation right at the ten year mark.  At this point Don decided that he wanted to try operating his own company, leveraging skills learned in college as well as providing him the flexibility of being his own boss.  It was at this point that he started writing the business plan for Water Tubes and eventually quit his job.

6.1 Personnel Plan

Don will be the only employee for the first month.  Don will bring on board a second employee during month two, and two more employees on the third month.  It is forecasted that Water Tubes will stay at four employees for the foreseeable future.

Financial Plan investor-ready personnel plan .">

The following sections will outline important financial information.

7.1 Important Assumptions

The following table details important financial assumptions.

7.2 Break-even Analysis

The Break-even Analysis indicates what will be needed in monthly revenue to reach the break-even point.

Plumbing business plan, financial plan chart image

7.3 Projected Profit and Loss

The following table and charts present the projected profit and loss.

Plumbing business plan, financial plan chart image

7.4 Projected Cash Flow

The following chart and table display the projected cash flow.

Plumbing business plan, financial plan chart image

7.5 Projected Balance Sheet

The following table shows the projected balance sheet.

7.6 Business Ratios

The company’s projected business ratios are provided in the table below.  The final column, Industry Profile, shows significant ratios for the Plumbing, Heating, Air-conditioning industry, as determined by the Standard Industry Classification (SIC) Index code 1711.

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Plumbing Business Plan Template

Written by Dave Lavinsky

Plumbing Business Plan

You’ve come to the right place to create your Plumbing business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Plumbing businesses.

Below is a template to help you create each section of your Plumbing business plan.

Executive Summary

Business overview.

Perfect Plumbing LLC is a new plumbing company located in Chapel Hill, North Carolina. We are a small company that is committed to helping the residents of Chapel Hill with all of their plumbing needs. We have upfront pricing, years of experience, and promise to arrive on time, every time. With our excellent skills and service, we expect to be the #1 plumbing company in the area within the next five years.

Perfect Plumbing LLC is led by Harry Garcia who has been a plumber for 20 years. While working for competing plumbing companies, he provided a variety of plumbing services for hundreds of customers living in the Chapel Hill area. His work ethic and expertise has gained him a positive reputation in the community and he has already built an initial clientbase. His loyal clientbase and experience will be invaluable to the company.

Product Offering

Perfect Plumbing LLC will provide a long list of residential plumbing services to the residents of Chapel Hill, North Carolina. These services will include fixture installation, repair services, water heater services, and emergency services. We can provide practically any service that ensures our customers’ plumbing is always in good repair.

Customer Focus

Perfect Plumbing LLC will serve the homeowners of Chapel Hill, NC. We will also work with real estate companies and property management companies who need plumbing services for their residential properties.

Management Team

Perfect Plumbing LLC is led by Harry Garcia, an experienced plumber who has worked in the industry for 20 years. He has worked with hundreds of residents in the Chapel Hill area and has gained a great reputation for his friendliness, expertise, and work ethic. He has been planning on creating his own plumbing business for several years and is finally ready to launch. With his good reputation and loyal clientbase, Harry is confident that Perfect Plumbing LLC will be a success in the community.

Success Factors

Perfect Plumbing LLC is primed for success by offering the following competitive advantages:

  • Quality plumbing services that are always on time and affordable.
  • Management team with extensive plumbing experience and a focus on maintaining long-term relationships with customers.
  • Skilled team of plumbing professionals who will get the job done right the first time.

Financial Highlights

Perfect Plumbing LLC is currently seeking $425,000 to launch. The funding will be dedicated to the office build out, purchase of initial supplies, working capital, marketing costs, and startup overhead expenses. The breakout of the funding is below:

  • Store design/build: $100,000
  • Vehicle purchase and maintenance: $50,000
  • Equipment and initial supplies: $150,000
  • Three months of overhead expenses (payroll, rent, utilities): $50,000
  • Marketing costs: $25,000
  • Working capital: $50,000

The following graph below outlines the pro forma financial projections for Perfect Plumbing LLC.

Perfect Plumbing LLC Pro Forma Financial Projections

Company Overview

Who is perfect plumbing llc.

Perfect Plumbing LLC is a new plumbing company located in Chapel Hill, North Carolina. We are a small company that is committed to helping the residents of Chapel Hill with all of their plumbing needs. We know that many plumbers disappoint their customers by being late, charging extraordinary fees, and not fixing the job the first time around. At Perfect Plumbing LLC, we are always upfront with our prices, reach our appointments on time, and have the expertise to fix the problem right away. With our excellent skills and service, we expect to be the #1 plumbing company in the area within the next five years.

  Perfect Plumbing LLC is led by Harry Garcia who has been a plumber for 20 years. While working for competing plumbing companies, he provided a variety of plumbing services for hundreds of customers living in the Chapel Hill area. His work ethic and expertise has gained him a positive reputation in the community and he has already built an initial clientbase. His loyal clientbase and experience will be invaluable for the company.

Perfect Plumbing LLC History

After spending several years in the plumbing industry, Harry Garcia has gained the knowledge, skills, and expertise necessary to start his own plumbing business. After years of planning out his business, he finally incorporated Perfect Plumbing LLC on March 1st, 2023.

Since incorporation, Harry has achieved the following milestones for Perfect Plumbing LLC:

  • Developed the company’s name, logo and website
  • Finished the list of services the company will provide
  • Determined equipment and inventory requirements
  • Found a potential office location

Perfect Plumbing LLC’s Services

Perfect Plumbing LLC will provide the following residential plumbing services:

  • Bathroom and kitchen fixture installation
  • Remodeling plumbing services
  • Pipe leak repair
  • Leaky faucet repair
  • Water heater installation and repair
  • Garbage disposal repair
  • Water line services
  • Emergency services

Industry Analysis

The plumbing services industry consists of repair and installation services that plumbers provide to residential and commercial clients. This can include installing bathroom and kitchen fixtures, installing water heaters and sub pumps, repairing leaks and broken fixtures, and providing emergency services. Nearly every building on the planet has some form of plumbing, so professional plumbers are always in high demand.

The plumbing industry is expected to grow over the next several years. This is primarily due to the increase in housing construction, leading to millions of new homes being built and needing new plumbing. Demand is also high due to many older buildings needing updates and repairs to their plumbing systems. According to Global Newswire, the global mechanical, electrical, and plumbing industry was valued at $50.2 billion in 2022 and is expected to grow at a CAGR of 10.7% from now until 2032. This substantial growth ensures the industry will remain profitable, making it a perfect time for new plumbing companies to enter the market.

Customer Analysis

Demographic profile of target market, customer segmentation.

Perfect Plumbing LLC will primarily target the following customer profiles:

  • Real estate companies
  • Property management companies

Competitive Analysis

Direct and indirect competitors.

Perfect Plumbing LLC will face competition from other companies with similar business profiles. A description of each competitor company is below.

Urgent Plumbing Services

Urgent Plumbing Services is the top plumbing company for residents experiencing plumbing emergencies. They are on-call 24/7 and can dispatch a plumber in as little as a few minutes. They can help with practically any emergency, ranging from leaks to sub pump failures. However, they only handle emergencies and do not offer common, non-emergency repair services. As such, they charge high rates for their services, which prevents many residents from hiring their services. Due to their prices and limited services, we expect Urgent Plumbing Services to be a minor competitor.

Chapel Hill Plumbing Co.

Chapel Hill Plumbing Co. has been one of the most popular plumbing services in the Chapel Hill area since 1976. They offer a wide range of services and boast a large crew of 50 plumbers on staff. As such, they can handle most of Chapel Hill’s plumbing demands for both residential and commercial clients. We expect Chapel Hill Plumbing Co. will be our largest competitor.

Johnson’s Plumbing Van

Established in 2012, Johnson’s Plumbing Van is a small operation founded by Bart Johnson. Bart is the sole employee for the company, but has a long and impressively loyal clientbase. He provides a long range of services, but can’t take on any projects that require more than one professional to be involved. As such, he is a minor competitor despite his current success.

Competitive Advantage

Perfect Plumbing LLC will be able to offer the following advantages over their competition:

  • Pricing : Perfect Plumbing LLC will provide an array of plumbing services that will be priced competitively and be more affordable than the competition.
  • Customer-Focus : Perfect Plumbing LLC’s focus will be on providing customer-focus service that prioritizes customer satisfaction and maintaining long-term relationships.
  • Management : Harry has been extremely successful working in the plumbing industry and will be able to use his previous experience to make clients feel comfortable with the process.

Marketing Plan

Brand & value proposition.

Perfect Plumbing LLC will offer the unique value proposition to its clientele:

  • Client-focused plumbing services, where the company’s interests are aligned with the customer.
  • Service is built on long-term relationships and personal attention.
  • Quality services for affordable rates.

Promotions Strategy

The promotions strategy for Perfect Plumbing LLC is as follows:

Social Media Marketing

The company will have several social media accounts and invest in ads on all social media platforms. These accounts will showcase pictures of our crew as well as a list of the services we provide. The company will use targeted marketing to appeal to our target demographics.

SEO Website Marketing

Perfect Plumbing LLC will invest funds into maintaining a strong SEO presence on search engines like Google and Bing. When a person types in “local plumbing services” or “Chapel Hill plumbing services”, Perfect Plumbing LLC will appear in the top three choices.

Advertisement

Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. Perfect Plumbing LLC will advertise its services in popular magazines and news dailies. Obtaining relevant placements in industry magazines and journals will also help in increasing brand visibility.

Perfect Plumbing LLC understands that the best promotion comes from satisfied customers. The company will encourage its clients to refer other individuals and businesses by providing discounts on future services for every new client produced. This strategy will increase in effectiveness as time goes on.

The pricing of Perfect Plumbing LLC will be moderate and on par with competitors so customers feel they receive value when hiring our plumbing services.

Operations Plan

Perfect Plumbing LLC will utilize the following operations plan. Operation Functions:

  • Harry Garcia will be the Owner of Perfect Plumbing LLC. He will run the general operations of the company and provide plumbing services to his initial clientbase. He will be the sole employee for the company in the beginning but will gradually hire the following staff:
  • An Administrative Assistant who can answer phones, schedule appointments, and work on general administrative tasks.
  • An Accountant who will manage all client invoicing, billing, and payables.
  • A Marketing Assistant who will run all the marketing and promotions campaigns.
  • Several contractors who will provide quality plumbing services.

Milestones:

Perfect Plumbing LLC will have the following milestones complete in the next six months:

  • 5/1/202X – Finalize lease agreement for office space
  • 6/1/202X – Office build out
  • 7/1/202X – Hire and train essential staff
  • 8/1/202X – Begin marketing campaign
  • 9/1/202X – Launch Perfect Plumbing LLC
  • 10/1/202X – Reach break even

Though he has never run his own business, Harry Garcia has worked in the industry long enough to gain an in-depth knowledge of the operations (e.g., running day-to-day operations) and the business (e.g., staffing, marketing, etc.) sides of the industry. He also already has a starting customer base that he served while working for other plumbing companies. He will hire several other employees who can help him run the aspects of the business that he is unfamiliar with.

Financial Plan

Key revenue & costs.

The revenue drivers for Perfect Plumbing LLC will come charging our clients for our plumbing services.

The cost drivers for Perfect Plumbing LLC will include the overhead costs, salaries, cost of supplies, vehicle maintenance, and marketing expenses.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.

  • Number Of Clients:
  • Annual Lease: $25,000
  • Vehicle Maintenance & Upkeep: $20,000

Financial Projections

Income statement, balance sheet, cash flow statement, plumbing business plan faqs, what is a plumbing business plan.

A plumbing business plan is a plan to start and/or grow your plumbing business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Plumbing business plan using our Plumbing Business Plan Template here .

What are the Main Types of Plumbing Businesses? 

There are a number of different kinds of plumbing businesses , some examples include: Commercial Plumbing, Residential Plumbing, and Service and Repair Plumbing.

How Do You Get Funding for Your Plumbing Business Plan?

Plumbing businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Plumbing Business?

Starting a plumbing business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Plumbing Business Plan - The first step in starting a business is to create a detailed plumbing business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your plumbing business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your plumbing business is in compliance with local laws.

3. Register Your Plumbing Business - Once you have chosen a legal structure, the next step is to register your plumbing business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your plumbing business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Plumbing Equipment & Supplies - In order to start your plumbing business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your plumbing business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful plumbing business:

  • How to Start a Plumbing Business

BUSINESS STRATEGIES

How to create a plumbing business plan (with templates)

How to create a plumbing business plan

A plumbing business plan is a strategic document that outlines the goals, objectives, strategies and operational details of a plumbing company. It serves as a roadmap for starting a service business in the plumbing industry, guiding entrepreneurs through the process of establishing and managing their enterprise.

A comprehensive and clear plumbing business plan is essential for several reasons, particularly when starting a business and building a website .

Ready to launch your plumbing business ? Create a business website today with Wix.

What is a plumbing business plan?

A plumbing business plan is a comprehensive document outlining the goals, strategies and operational details of a plumbing business. It serves as a roadmap for the business owner and potential investors, providing a clear vision of how the business will be structured and operated.

Top benefits of creating a plumbing business plan

First, a well-structured business plan is one of the most important early steps in starting a business . It provides clear direction for the company's growth and development. It helps the entrepreneur define their target market, identify competitors and formulate a unique value proposition that sets the plumbing business apart in a competitive market. This plan outlines the products and services the business will offer, the pricing strategy and the plumbing marketing approaches that will be employed to attract customers.

Second, a plumbing business plan assists in securing capital from banks, investors or other financial institutions. It demonstrates the entrepreneur's dedication and understanding of the market, making it more likely to attract external funding.

Your business plan can also be used to explain what type of business you'll start - whether that's an LLC, Corporation or something else. Learn more about how to start an LLC .

Furthermore, a business plan serves as an operational guide, detailing the organizational structure, roles and responsibilities of team members and the day-to-day processes involved in running the plumbing business. It also outlines the financial projections, budgeting and revenue forecasts, ensuring that the business remains financially viable and sustainable over time.

How to create a plumbing business plan in 6 steps

In this section, we'll walk through six essential steps for crafting a plumbing business plan tailored to your company's unique needs.

Executive summary

Business and domain names

Market analysis and research

Operations plan

Marketing and advertising plan

Financial plan

01. Executive summary

An executive summary is a concise overview of your plumbing business plan, summarizing its key components and highlighting the most crucial points. It provides readers, including potential investors and partners, with a quick understanding of your business's goals, strategies and potential. When crafting an executive summary for a plumbing business, focus on capturing the essence of your company's mission and how you intend to fulfill it.

Example executive summary for a plumbing business: “PlumbAce Services is a dynamic plumbing company dedicated to delivering top-notch residential and commercial plumbing solutions. With a team of skilled technicians and a commitment to exceptional customer service, PlumbAce aims to become the go-to plumbing provider in the local market. By offering a comprehensive range of services, including repairs, installations and maintenance, we are poised to address the diverse needs of our clients efficiently and effectively. Our business plan outlines a strategic approach to market penetration, emphasizing customer satisfaction, innovation and community engagement. Through a blend of online marketing, strategic partnerships and service excellence, we aim to achieve steady growth and a solid reputation within the first two years of operation.”

02. Business and domain names

Knowing how to name a business is crucial for any new venture and a key step before you register your business . A well-chosen name forms the foundation of your brand, plus builds trust and recognition in your target market. While you’re in the brainstorming phase, consider using a business name generator like one from Wix for inspiration. This tool can offer unique and creative options that align with the services you offer.

Be inspired: Plumbing business name ideas

It's also essential to align your company name with your domain name when making a website for your business. A domain name that matches your company name helps in online branding and makes it easier for potential customers to find you.

When selecting a domain name, follow these best practices:

Choose a domain name that reflects your offerings and is easy to remember

Keep it simple and avoid using complex or lengthy words

Add relevant keywords, like "plumbing" or "pipes," to improve search engine visibility

Ensure your domain name is distinctive and not easily confused with other businesses

Opt for a common extension like ".com," as it's more familiar to users

03. Market analysis and research

Incorporating a market analysis and research section in your business plan is vital for understanding your target market, identifying competitors and developing effective strategies. Conduct thorough research on customer demographics, preferences and pain points related to plumbing services. There is steady demand for plumbers , so you’ll have plenty of competitors to analyze as you identify areas where you can differentiate your business.

Use data from industry reports, online surveys and local market research to shape your marketing strategies . Understanding customer needs and market trends for this type of business will allow you to tailor your services, pricing and marketing efforts more effectively.

04. Operations plan

Your operations plan needs to detail the logistical aspects of your plumbing business, encompassing location, premises, equipment and staffing requirements. Highlight your choice of location and premises, detailing factors such as proximity to your target market and accessibility.

Outline the essential equipment needed for plumbing services, including tools, vehicles and technology. Discuss your staffing needs, including the number of technicians and support staff required. Emphasize the qualifications, skills and training your team will possess to ensure top-quality service delivery.

05. Marketing and advertising plans

Your marketing and advertising plan should outline the strategies and campaigns you'll employ to promote your plumbing business. Consider a combination of online and offline marketing methods to target various customer groups.

Start by making a website that effectively showcases your services, testimonials and contact information. Then, optimize your website for relevant keywords to rank higher in search engine results. You can also register your business on online directories and platforms like Google Business Profile.

Learn more: How to make a plumbing website

You’ll also need to develop a suite of brand assets to use in your marketing, starting with a company logo and catchy plumbing slogan . You can use a free logo maker to get a professional design in minutes.

06. Financial plan

The financial plan outlines your plumbing business' financial projections, initial funding and profitability timeline. It should outline your projected initial expenses, including equipment, licenses, permits, marketing, staffing and plumbing website cost . The cost to start a plumbing business can range from around $7,500 to over $22,000 , so detailing the cost estimate of each expense can help you gain a clearer picture of how much initial capital you will need.

Then, estimate your expected revenue based on market research and sales forecasts. List ongoing costs like rent, utilities, insurance and marketing. It’s important to define when you expect to start generating a profit, considering factors like growth rate and market demand. Detail where your initial funding will come from, whether through personal savings, loans or investors.

steps to developing a business plan

Plumbing business plan examples

Here are two draft business plan templates for a hypothetical plumbing business.

Plumbing business plan template 1: Plumbing Excellence Services

Plumbing Excellence Services is committed to delivering exceptional plumbing solutions for residential and commercial clients. With a team of highly skilled technicians and a dedication to customer satisfaction, we aim to establish ourselves as a reputable and reliable plumbing service provider in the local market. Our strategic approach focuses on quality workmanship, competitive pricing and modern technology to streamline our services and enhance customer experience. We project steady growth within the first three years by targeting both residential and commercial sectors.

Company and domain name

Company name: Plumbing Excellence Services

Domain name: www.plumbingexcellenceservices.com

Our market analysis indicates a growing demand for plumbing services due to urban expansion and renovation projects in the local area. Research highlights that customers value prompt response times, transparent pricing and knowledgeable technicians. Competitor analysis reveals opportunities to provide specialized services such as eco-friendly plumbing solutions.

Location: Prime location near residential and commercial hubs

Premises: Leasing a well-equipped facility for administrative tasks and equipment storage.

Equipment: State-of-the-art tools, inspection cameras and service vehicles

Staffing: A team of certified plumbers, customer service representatives and administrative staff

Online presence: Professional website showcasing services, testimonials and blog posts about plumbing maintenance tips

SEO strategy: Targeting keywords like "emergency plumber," "residential plumbing," and "commercial plumbing" to improve online visibility

Local networking: Partnering with local contractors and property managers for referrals

Social media engagement: Active presence on social platforms to engage with the community and provide plumbing advice

Startup costs: $100,000 for equipment, licenses, marketing and initial staffing

Revenue projections (first year): $250,000

Revenue projections (second year): $400,000

Revenue projections (third year): $600,000

Operating expenses: Monthly expenses include rent, utilities, marketing and salaries

Profitability timeline : Expected to achieve profitability by the end of Year 2

Funding sources: $70,000 personal savings, $30,000 small business loan

Plumbing business plan template 2: Streamline Plumbing Solutions

Streamline Plumbing Solutions is poised to redefine the plumbing service industry through innovative techniques and exceptional customer care. Our team of certified technicians is dedicated to delivering efficient and effective solutions to residential and commercial plumbing needs. We are committed to building lasting relationships with clients and becoming their trusted plumbing partner. Our strategic plan emphasizes leveraging technology, nurturing customer relationships and expanding our service offerings to achieve sustainable growth.

Company name: Streamline Plumbing Solutions

Domain name: www.streamlineplumbingsolutions.com

Market research: Growing demand for modern plumbing solutions, driven by urban redevelopment projects

Customer preferences: Customers seek technologically advanced solutions, eco-friendly options and transparent pricing

Competition analysis: Identifying opportunities in underserved niches, such as water-efficient plumbing installations

Location: Easily accessible location near major residential and commercial areas

Premises: Leasing a modern facility to accommodate administrative tasks and inventory

Equipment: Cutting-edge plumbing tools, water-efficient fixtures and advanced diagnostic equipment

Staffing: A team of experienced plumbers, customer service specialists and apprentices for skill development

Website development: User-friendly business website highlighting our services, case studies and expert plumbing advice

Content strategy: Regular blog posts and videos on plumbing tips, maintenance and industry trends

Local partnerships: Collaborating with architects, interior designers and construction companies to tap into referral networks

Online advertising: Targeted Google Ads and social media campaigns to reach potential customers

Startup costs: $120,000 for equipment, permits, marketing and initial staffing

Revenue projections (first year): $300,000

Revenue projections (second year): $500,000

Revenue projections (third year): $700,000

Operating expenses: Including rent, utilities, marketing and salaries

Profitability timeline: Anticipate reaching profitability by the end of Year 2

Funding sources: $80,000 personal savings, $40,000 angel investor funding

What does a plumbing business plan include?

Here are key components typically included in a plumbing business plan:

Executive summary: Briefly introduces the business, its mission and the key highlights of the plan. It should provide a snapshot of the business concept and its unique selling proposition.

Business description: Provides an in-depth overview of the plumbing business, including its history, mission statement, values and legal structure (e.g., sole proprietorship, LLC, corporation).

Market analysis: Conducts a thorough analysis of the local market, identifying target customers, competitors and market trends. This section should demonstrate a clear understanding of the demand for plumbing services in the chosen area.

Services and products: Details the plumbing services offered, such as residential plumbing, commercial plumbing, emergency repairs, installations and any specialized services. It may also include information on products sold, if applicable.

Organization and management: Outlines the organizational structure of the business, including key personnel, their roles and responsibilities. This section may also include information on the owner's background and qualifications.

Marketing and sales strategy: Describes how the business will attract and retain customers. This includes marketing channels, advertising strategies, pricing models and sales tactics. It may also cover customer acquisition and retention plans.

Funding request (if applicable): Outlines the funding requirements of the business, including startup costs, operational expenses and working capital. If seeking financing, this section provides details on how the funds will be used.

Financial projections: Presents financial forecasts, including income statements, balance sheets and cash flow statements. This section helps investors and business owners understand the expected financial performance of the plumbing business over time.

SWOT analysis: Identifies the strengths, weaknesses, opportunities and threats facing the plumbing business. This analysis helps in developing strategies to capitalize on strengths and opportunities while addressing weaknesses and mitigating threats.

Risk management: Discusses potential risks and how the business plans to manage or mitigate them. This can include factors such as economic downturns, regulatory changes or unexpected competition.

Appendix: Includes any additional information, documents or supporting materials that provide more context or details about specific aspects of the business plan.

A well-crafted plumbing business plan not only helps guide the business owner but also serves as a valuable tool when seeking financing or partnerships. It should be regularly reviewed and updated to reflect changes in the business environment and strategic goals.

Is it a good idea to start a plumbing business?

Starting a plumbing business can be a good idea, but like any business venture, it comes with both opportunities and challenges. Here are some factors to consider before starting your plumbing business plan.

Plumbing services are consistently in demand and people require plumbing services for new construction, renovations, repairs and maintenance. This can make it a good recession-proof business idea . If you already have plumbing skills and experience, you can leverage your expertise to build a successful business. Then as you establish your reputation and client base, there is potential for growth and expansion into additional services or areas as your business scales. You can target both residential and commercial markets, providing a diverse range of services.

However despite the opportunities, there are several challenges to consider when drafting your plumbing business plan. The plumbing industry can be competitive, so differentiating your business ideas and offering exceptional service is crucial.

Plumbing businesses are subject to regulations and licensing requirements. Ensure compliance with local, state and national regulations. Alongside this starting a plumbing business may require a significant initial investment in tools, equipment, insurance and marketing - all of these costs must be factored in your business plan.

How profitable is a plumbing business?

The profitability of a plumbing business can vary based on several factors, including location, market demand and the efficiency of operations. Here are key considerations that can impact the profitability of a plumbing business:

Market demand: The demand for plumbing services is influenced by factors such as population density, construction activity and the overall economic health of the area. Areas with a growing population and increased construction projects may offer more opportunities for plumbing businesses.

Competition: The level of competition in a particular market can affect pricing and profit margins. In areas with numerous plumbing businesses, competition may lead to more competitive pricing, potentially impacting profitability.

Specialization: Specializing in niche areas within the plumbing industry, such as high-end installations, green plumbing or emergency services, can contribute to higher profit margins. Specialized services often command premium pricing.

Efficient operations: Operational efficiency, including effective scheduling, inventory management and cost control, plays a crucial role in profitability. Efficient business processes can reduce overhead costs and increase overall profitability.

Reputation and customer service: Building a positive reputation and providing excellent customer service can lead to repeat business, referrals and positive online reviews. Satisfied customers are more likely to choose your services, contributing to long-term profitability.

Licensing and compliance: Ensuring that the business and its plumbers are properly licensed and compliant with local regulations is essential. Non-compliance can result in fines and legal issues that impact profitability.

Insurance costs: The cost of insurance, including liability and workers' compensation insurance, can impact overall expenses. Managing insurance costs effectively is crucial for maintaining profitability.

Scaling the business: As a plumbing business grows, economies of scale can be achieved, potentially increasing profitability. However, expansion should be carefully planned to avoid overextending resources.

According to data from the U.S. Bureau of Labor Statistics (BLS), the median annual wage for plumbers, pipefitters and steamfitters was around $60,090 in the United States. It's important to note that these figures are averages, and actual earnings can vary.

Plumbing business plan FAQ

What is the best business structure for a plumbing business.

The best business structure for a plumbing business depends on factors such as liability, taxation and management preferences. Common structures include:

Sole proprietorship:  Simple and easy, but the owner is personally liable.

Limited liability company (LLC):  Offers liability protection and flexibility in management and taxation.

S corporation:  Provides liability protection and potential tax advantages but has specific eligibility criteria.

C corporation:  Offers liability protection and potential for growth, but may involve double taxation. Consulting with a legal professional can help determine the most suitable structure based on individual circumstances.

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Plumbing Business Plan Template

Written by Dave Lavinsky

plumbing business plan

Plumbing Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their plumbing companies. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a plumbing business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Plumbing Business Plan?

A business plan provides a snapshot of your plumbing business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Plumbing Company

If you’re looking to start a plumbing business, or grow your existing plumbing business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your plumbing business in order to improve your chances of success. Your plumbing company business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for New Plumbing Companies

With regards to funding, the main sources of funding for a plumbing business are personal funds, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for plumbing companies.

Finish Your Business Plan Today!

How to Write a Business Plan for a Plumbing Company

If you want to start a plumbing company or expand your current one, you need a business plan. Below we detail the key components typically included in your own plumbing business plan:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of plumbing company you are operating and the status. For example, are you a startup, do you have a plumbing business that you would like to grow, or are you operating plumbing businesses in multiple markets?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the plumbing industry. Discuss the type of plumbing business you are operating. Detail your direct competitors. Give an overview of your target market. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of plumbing business you are operating.

For example, you might operate one of the following types of plumbing businesses:

  • Commercial Plumbing : this type of plumber focuses on plumbing services for commercial businesses, complexes, and buildings.
  • Residential Plumbing: this type of plumber provides plumbing services for households.
  • Service and Repair Plumbing: this type of plumber focuses on servicing and repairing any plumbing issues and/or emergencies for both residential and commercial clients.

In addition to explaining the type of plumbing company you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

  • When and why did you start the business?
  • What is your plumbing company’s mission?
  • What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, reaching $X in revenue, etc.
  • Your business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the plumbing industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section:

  • How big is the plumbing industry (in dollars)?
  • Is the market declining or increasing?
  • Who are the key competitors in the market?
  • Who are the key suppliers in the market?
  • What trends are affecting the industry?
  • What is the industry’s growth forecast over the next 5 – 10 years?
  • What is the relevant market size? That is, how big is the potential market for your plumbing business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: business complex building owners/managers, apartment complex owners/managers, homeowners, schools, contractors, restaurant owners/managers.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of plumbing business you operate. Clearly, a homeowner would respond to different marketing promotions than an apartment complex, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.  

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other plumbing companies.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes local handymen or hardware stores. You need to mention such competition as well.

With regards to direct competition, you want to describe the other plumbing companies with which you compete. Most likely, your direct competitors will be plumbing businesses located very close to your location.

competition

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

  • What types of customers do they serve?
  • What type of plumbing services do they offer?
  • What is their pricing (premium, low, etc.)?
  • What are they good at?
  • What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

  • Will you provide lower interest rates?
  • Will you provide services that your competitors don’t offer?
  • Will you provide better customer service?
  • Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a plumbing business plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of plumbing company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to plumbing, will you provide repair, replacement, servicing, or 24 hour plumbing emergency services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and your pricing strategy.

Place : Place refers to the location of your plumbing company. Document your location and mention how the location will impact your success. For example, is your plumbing business located in a busy retail district, from your own home, a standalone office, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your plumbing marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

  • Advertising in local papers and magazines
  • Reaching out to websites
  • Social media marketing
  • Local radio and television advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your business operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your plumbing business, including marketing your services, completing projects, preparing for new projects, and tracking inventory of your products and materials.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to land your Xth client, or when you hope to reach $X in revenue. It could also be when you expect to expand your plumbing business to a new city.  

Management Team

To demonstrate your plumbing business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in managing plumbing businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a plumbing team or successfully running their own plumbing company.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

sales growth

In developing your income statement, you need to devise assumptions. For example, will you be the only plumber or will you have a team of plumbers? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your plumbing business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

business costs

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting a plumbing business or growing your existing company:

  • Advertising and marketing
  • Cost of equipment and supplies
  • Payroll or salaries paid to staff
  • Business insurance
  • Taxes and permits
  • Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or costs needed to transport to a client location and expenses paid for working on projects.  

Putting together a business plan for your plumbing business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert and know everything you need to about how to start a plumbing business. You will really understand the plumbing industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful plumbing business.  

Don’t you wish there was a faster, easier way to finish your Plumbing business plan?

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Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   See how Growthink’s professional business plan consulting services can create your business plan for you.

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Plumbing Business Plan

Executive summary image

It is enough for you to start a plumbing company with your plumbing expertise, business knowledge, and project management skills. However, you need something more to succeed—a well-thought-out business plan.

Having a business plan can help you secure funding, set priorities, make informed decisions, and steer your business in the right direction.

Need help writing a business plan for your plumbing business? You’re at the right place. Our plumbing business plan template will help you get started.

sample business plan

Free Business Plan Template

Download our free plumbing business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

  • Fill in the blanks – Outline
  • Financial Tables

How to Write a Plumbing Business Plan?

Writing a plumbing business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

  • Introduce your business: Start your executive summary by briefly introducing your business to your readers.
  • This section may include the name of your plumbing business, its location, when it was founded, the type of plumbing business (E.g., commercial plumbing, residential plumbing, pipe repair and repiping services.), etc.
  • Market opportunity: Summarize your market research, including market size, growth potential, and marketing trends. Highlight the opportunities in the market and how your business will fit in to fill the gap.
  • Plumbing services: Highlight the plumbing services you offer your clients. The USPs and any additional services you offer are always a plus.
  • For instance, your plumbing services may include plumbing system installation, plumbing repairs, drain cleaning, pipe repairs and replacement, water heater services, and similar other services.
  • Marketing & sales strategies: Outline your sales and marketing strategies—what marketing platforms you use, how you plan on acquiring customers, etc.
  • Financial highlights: Briefly summarize your financial projections for the initial years of business operations. Include any capital or investment requirements, associated startup costs, projected revenues, and profit forecasts.
  • Call to action: Summarize your executive summary section with a clear CTA, for example, inviting angel investors to discuss the potential business investment.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

  • Business description: Describe your business in this section by providing all the basic information:
  • Residential plumbing company
  • Commercial plumbing company
  • Drain cleaning company
  • Emergency plumbing company
  • Describe the legal structure of your plumbing company, whether it is a sole proprietorship, LLC, partnership, or others.
  • Explain where your business is located and why you selected the place.
  • Owners: List the founders or owners of your plumbing business. Describe what shares they own and their responsibilities for efficiently managing the business.
  • Mission statement: Summarize your business’ objective, core principles, and values in your mission statement. This statement needs to be memorable, clear, and brief.
  • Business history: If you’re an established plumbing service provider, briefly describe your business history, like—when it was founded, how it evolved over time, etc.
  • Additionally, If you have received any awards or recognition for excellent work, describe them.
  • Future goal: It’s crucial to convey your aspirations and vision. Mention your short-term and long-term goals; they can be specific targets for revenue, market share, or expanding your services.

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

  • Target market: Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.
  • For instance, commercial real estate developers, office buildings, and restaurant owners can be an ideal target market for a commercial plumbing business.
  • Competitive analysis: Identify and analyze your direct and indirect competitors. Identify their strengths and weaknesses, and describe what differentiates your plumbing services from them. Point out how you have a competitive edge in the market.
  • Market trends: Analyse emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.
  • For instance, there is a growing demand for environment-friendly plumbing solutions, so explain how you plan to cater to this growing market.
  • Regulatory environment: List regulations and licensing requirements that may affect your plumbing company, such as business registration, trade license, building codes and permits, backflow prevention certification, etc.

Here are a few tips for writing the market analysis section of your plumbing contractor business plan:

  • Conduct market research, industry reports, and surveys to gather data.
  • Provide specific and detailed information whenever possible.
  • Illustrate your points with charts and graphs.
  • Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

  • Plumbing installation
  • Plumbing repairs
  • Drain cleaning
  • Water heater services
  • Fixture installation and repair
  • Quality measures: This section should explain how you maintain quality standards and consistently provide the highest quality service.
  • This may include timely training for the plumbing staff, compliance with codes and regulations, and using high-quality materials.
  • Additional services: Mention if your plumbing company offers any additional services. You may include services like water treatment, filtration systems, maintenance contracts, and emergency plumbing services.

In short, this section of your plumbing plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

  • Unique selling proposition (USP): Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.
  • For example, you may have 24*7 emergency services, quick response time, skilled and certified plumbers, and advanced technology as some of your USPs.
  • Pricing strategy: Describe your pricing strategy—how you plan to price your plumbing services and stay competitive in the local market. You can mention any discounts you plan on offering to attract new customers to your plumbing service.
  • Marketing strategies: Discuss your marketing strategies to market your services. You may include some of these marketing strategies in your business plan—social media marketing, Google ads, brochures, email marketing, vehicle branding, content marketing, and print marketing.
  • Sales strategies: Outline the strategies you’ll implement to maximize your sales. Your sales strategies may include direct sales calls, partnering with other businesses, offering referral programs, community involvement, etc.
  • Customer retention: Describe your customer retention strategies and how you plan to execute them. For instance, introducing loyalty programs, staying connected through email marketing, celebrating customer milestones, etc.

Overall, this section of your plumbing company business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your plumbing business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

  • Staffing & training: Mention your cleaning business’s staffing requirements, including the number of employees or plumbers needed. Include their qualifications, the training required, and the duties they will perform.
  • Operational process: Outline the processes and procedures you will use to run your plumbing business. Your operational processes may include sending quotations, scheduling appointments, site visits, training employees, quality control, and equipment maintenance.
  • Equipment & machinery: Include the list of equipment and machinery required for plumbing, such as pipe cutters, pipe benders, leak detection equipment, pipe connectors, safety equipment, etc.
  • Explain how these technologies help you maintain quality standards and improve the efficiency of your business operations.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your plumbing business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

  • Founder/CEO: Mention the founders and CEO of your plumbing company, and describe their roles and responsibilities in successfully running the business.
  • Key managers: Introduce your management and key members of your team, and explain their roles and responsibilities.
  • It should include, key executives, senior management, and other department managers (e.g. operations manager, purchasing manager.) involved in the operations, including their education, professional background, and any relevant experience in the plumbing industry.
  • Organizational structure: Explain the organizational structure of your management team. Include the reporting line and decision-making hierarchy.
  • Compensation plan: Describe your compensation plan for the management and staff. Include their salaries, incentives, and other benefits.
  • Advisors/consultants: Mentioning advisors or consultants in your business plans adds credibility to your business idea.
  • So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your plumbing services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your plumbing financial plan :

  • Profit & loss statement: Describe details such as projected revenue, operational costs, and service costs in your projected profit and loss statement. Make sure to include your business’s expected net profit or loss.
  • Cash flow statement: The cash flow for the first few years of your operation should be estimated and described in this section. This may include billing invoices, payment receipts, loan payments, and any other cash flow statements.
  • Balance sheet: Create a projected balance sheet documenting your plumbing business’s assets, liabilities, and equity.
  • Break-even point: Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.
  • This exercise will help you understand how much revenue you need to generate to sustain or be profitable.
  • Financing needs: Calculate costs associated with starting a plumbing business, and estimate your financing needs and how much capital you need to raise to operate your business. Be specific about your short-term and long-term financing requirements, such as investment capital or loans.

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

  • Add a table of contents for the appendix section to help readers easily find specific information or sections.
  • In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more.
  • These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
  • Provide data derived from market research, including stats about the plumbing industry, user demographics, and industry trends.
  • Include any legal documents such as permits, licenses, and contracts.
  • Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your plumbing services business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

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This sample plumbing business plan will provide an idea for writing a successful plumbing plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our plumbing business plan pdf .

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Frequently Asked Questions

Why do you need a plumbing business plan.

A business plan is an essential tool for anyone looking to start or run a successful plumbing business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your plumbing company.

How to get funding for your plumbing business?

There are several ways to get funding for your plumbing business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your plumbing business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your plumbing business plan and outline your vision as you have in your mind.

What is the easiest way to write your plumbing business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any plumbing business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

business plan for a plumbing company

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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What to Include in a Plumbing Business Plan [& Free Template]

Plumbers who want to start their own plumbing company need a plumbing business plan. It’s a crucial tool that helps plumbers make informed decisions, set clear goals, secure funding if needed, and navigate the complexities of running a successful plumbing business. It’s essentially a roadmap for startups or existing plumbing companies to achieve long-term success and growth.

To help you design or improve your own plumbing business plan, get started with our free plumbing business plan template. We show you what to include in your business plan and how to write one using a company business plan template specifically designed for the plumbing industry.

Table of Contents

What is a business plan for a plumbing business, why should a plumbing business have a business plan, how to write a plumbing business plan [with template].

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A business plan for a plumbing business is a comprehensive document that outlines all aspects of the company’s operations, goals, strategies, and financial projections. It serves as a roadmap for the business owner and potential stakeholders by detailing step by step how the business will be structured, managed, and grown. Both startups and established plumbers use business plans to grow their plumbing companies , apply for funding, or seek financial investors.

A plumbing business plan is also a fluid document that needs adjusting on a regular basis along with your business goals and strategies. It can show you how many leads to generate, how many calls to answer, and what your techs’ average ticket needs to be to generate a certain level of revenue each month.

Developing a business plan is especially helpful for new plumbing companies, especially if they’re seeking funding from investors to get their small business off the ground. A plumbing company business plan also serves great purpose for an established plumbing business, as the company reflects on goals and updates its business plan throughout the year.

Plumbers, like any other business owners, benefit from a well-thought-out business management plan for two important reasons.

Reason #1: Fundraising purposes

If plumbers seek financing to start their own business or investors to expand into new businesses, a solid business plan is essential. Lenders and investors want to see a detailed financial report, monthly financial statements, balance sheets, a daily operational plan, and sales forecast — just to name a few of the most important documents to include in a business plan.

In short, lenders and investors want to see a detailed plan that demonstrates the business's potential for success and how it intends to use the funds. The main sources of funding for a plumbing business include personal funds, credit cards, bank loans, and investors. Personal savings and bank loans are the most common funding paths for plumbing companies.

Reason #2: Identify business goals and minimize risks

A business plan serves as your company’s blueprint, as it outlines the roadmap for where you want your plumbing business to go and how you plan to get there. By defining your company’s mission, vision, and long-term goals, and identifying ways to measure success, you and your management team can make informed decisions on the best path forward.

Risk management is also a critical component to your business plan. Include details about your competitors, the market, your target audience, and any future obstacles on the horizon, then develop a contingency plan to handle any potential risks or challenges.

A plumbing business plan should be tailored to the specific goals of your plumbing business and provide a realistic and achievable roadmap for its success. To help plumbing contractors know exactly what information to include in a business plan, ServiceTitan created a plumbing company business plan template for you to download and fill in.

>>Download our free plumbing company business plan template.

Here are the key components typically included in a plumbing business plan:

1. Industry analysis  

Begin by assessing the current market trends for the plumbing industry in your area. Who are your customers? What demographics define your target audience? Who are your biggest competitors? What is the market size or market share in your area, and how can you set your plumbing company apart from the rest? Then use your answers to help inform your overall plumbing business strategy.

2. Executive summary

Write your executive summary last, but include it near the top of your business plan as a constant reminder of your overall vision and goals for your plumbing company. Keep it concise with an overview of the entire business plan, including a mission statement, the business goals, target market, competitive advantage, and financial projections for future growth.

3. Company overview

Your business overview provides details about your specific plumbing business. Tell your company’s story, including how it got started and where it plans to go. Explain how your vision, core values, and business philosophy sets you apart from others in the plumbing industry. 

Outline your goals and objectives for the business, and identify specific key performance indicators (KPIs) you plan to monitor as your company grows. Elaborate on your target audience and how you plan to market your services to generate new leads. Identify the strengths and core competencies that make your plumbing company stand out, and demonstrate how your training processes help plumbing techs excel.

4. Products and services

Clearly describe your plumbing company’s pricing structure and what’s included for each plumbing service you offer, including repairs, installations, maintenance, emergency services, and specialized work.

Define the scope of your residential and/or commercial plumbing services and repairs, including clog-clearing, leak inspections, toilet plumbing, faucets, sewer lines, water heaters, sump pumps, new installations, and more. Then, develop creative guarantees for service, repair, and replacement that inspire customers to take notice and highlight any specialized work your plumbers do, such as gasfitting appliances or large drain clearing.

Do you price plumbing jobs by the hour, or offer flat-rate pricing? Include the service rate, add in the travel fee if you charge one, then total the billable amount for every job or service you offer.

ServiceTitan’s integrated pricebook helps plumbing businesses set accurate and profitable pricing every time. Also, Price Insights, available to users of Pricebook Pro , works to calculate the average price for each plumbing service, then shows you how your prices compare to others in your region. You can easily see if your prices are too low or too high, then adjust to keep your profit margins in line.

5. Market analysis

Take a thorough assessment of market trends in your area and analyze key competitors. Where do they shine, and where do they fizzle? How much market share do they control? How do they price their plumbing services? What gaps need to be filled in terms of the type of plumbing services offered or in areas where customers struggle to find a reliable plumber?

Collect and analyze the market data, then strategize ways to outrank your competition on every key metric, from providing online booking capabilities and delivering excellent customer service to quicker response times and fewer callbacks.

6. Customer analysis

Fully research your target audience to gain a complete picture of who your customers are and who you want them to be. Define their demographics, such as age, gender, income level, location, and buying behaviors. If you plan to service residential customers, learn as much as you can about the age of their homes, total assessed value, date last sold, and even the type of plumbing system in use.

Leverage customer experience software to gain even more insight into your customers’ plumbing history, needs, and possible pain points, then train your CSRs and plumbing techs to use our automated customer relationship management (CRM) features to improve their overall performance.

Notable ServiceTitan CRM features include:

Scheduling : Automated scheduling options allow plumbing customers to book jobs at their own convenience, whether by booking directly online or through calls, text, or web chats. 

Detailed customer history : A robust CRM allows CSRs to personalize the customer experience from the start, then collect the necessary information to adequately inform service techs so they arrive fully prepared to do the job.

Text messaging communication : Text appointment reminders and technician bios to communicate with customers the way they prefer. With two-way SMS communication, customers can easily confirm or reschedule appointments, ask questions, or even pay their bill.

Live tracking : No more waiting around for the plumber to arrive! With live tracking features, customers can see the tech’s exact location on a map and know when they’ll arrive.

On-site estimates : With ServiceTitan Mobile , techs can build and display branded, digital estimates with good, better, and best options in just a few taps.  

Financing options: Ease customers’ minds about cost by providing easy financing options on high-dollar plumbing jobs. ServiceTitan offers several options, and customers can apply right from the tech’s mobile device, choose the plan that fits best, and receive instant approval.

7. Marketing and sales plan

Create a detailed plumbing marketing plan for how the business will attract potential customers and retain current ones through branding, pricing strategy, advertising methods, online presence, reputation management, and customer experience.

ServiceTitan’s home services marketing software analyzes your own customer data to come up with solutions to attract, convert, and retain customers. With ServiceTitan’s Marketing Scorecard, you can rank your campaigns by revenue so you know what’s working and what isn’t, and even drill down to see what kind of jobs your ads are producing.

8. Organization and management

Develop a chart that outlines the company’s organizational structure, roles and responsibilities of key team members, resumes of key team members, and the owner's qualifications, licenses, and permits. Include job descriptions and job interview questions so everyone knows your expectations for how the company will be organized and managed.

9. Operational plan

Include information about the day-to-day operations of your plumbing business. Detail your workflow processes, equipment and inventory used, go-to suppliers, and any plumbing partnerships that help you deliver premium service.

The more details you provide here will help to inform the company roadmap for your team, ultimately resulting in improved efficiency, higher productivity, and increased profits.

10. Financial plan

Your plumbing business’s financial plan typically includes startup costs, a 12-month profit-and-loss projection, a cash-flow projection, a projected balance sheet, and a break-even calculation. 

With customized reporting capabilities, ServiceTitan field reporting software helps you stay on top of every aspect of your financial plan, giving you data-driven visibility into the areas where you’re finding success and where you’re not.

Over to You

ServiceTitan’s cloud-based, all-in-one plumbing software gives plumbing business owners the technology they need to do the work efficiently, the data and reporting they need to do it smartly, and a wide array of resources to guide them as they grow toward achieving long-term success.

>> Want to start your own plumbing business or revitalize and grow an established business? Download this plumbing business plan template to get started.

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COMMENTS

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  6. What to Include in a Plumbing Business Plan [& Free Template]

    To help you design or improve your own plumbing business plan, get started with our free plumbing business plan template. We show you what to include in your business plan and how to write one using a company business plan template specifically designed for the plumbing industry.