If you’re an entrepreneur looking to start a new business, you might be thinking about entering the trade world.
Unlike luxury or consumer goods businesses, tradespeople will always be in demand. There’s no other option but to fix a broken pipe, is there!?
Plumbers in particular are highly in demand across the UK. In fact, according to Statista, electrical, plumbing and other construction installation activities in the UK will be worth $32.91 billion by 2025. This makes it a huge market to tap into.
And it’s well paid too. According to Gov.uk, experienced plumbers can earn between £21,000 – £40,000 per year, making it a well paid venture!
But before starting a plumbing business, it’s worth thinking about whether you want to be one of the tradespeople in the company, or just want to run it from the side lines. If it’s the latter, feel free to skip step 1.
Step 1: Get Qualified
In the UK, there isn’t a particular qualification you need to be a plumber, however, it’s worth registering with certain trade bodies to give yourself some credibility. These include:
- The Chartered Institute of Plumbing and Heating Engineering (CIPHE)
- The Chartered Institute of Building Services Engineers (CIBSE)
Anyone who is dealing with gas and heating must also legally be on the Gas Safe Register.
Whilst there isn’t one certification you need, you’ll want to take a plumbing course or get some work experience to get to grips with the work.
There are a number of diplomas that upskill workers in water and heating systems, allowing them to operate them safely.
If you’re more hands-on, why not try and apprenticeship with another company? By having experience working on real situations, you can get to grips with the basics quickly.
All in all, getting qualified should take no longer than a couple of months, so you should be able to kick off in no time.
Step 2: Start A Business Plan
Every business starts with a plan. You’ll want to think about your company name, how many directors you will have and how you want customers to contact you.
Your business plan should think about what services you will provide, what equipment you need, how many employees you want to hire, how you plan to expand, and how your services will be priced.
It’s also a great opportunity to do some competitor analysis to see how your company might be able to stand out from the crowd. As part of your business plan, try to set financial goals for the first year to stick to.
Make sure within your budget you include:
- Cost of setting up a business
- Cost of plumbing supplies
- Cost of transport for yourself (or employees)
- Cost of software to help with accounting
- Marketing costs
- Branded items like mugs, t-shirts and pens
Then, work out the cost of your services to account for these, meaning you always stay profitable.
Once you have this laid out, you can more easily see what you need to get started.
Step 3: Sort The Finances
Every business needs a source of funding. For some, this might be something they fund themselves, whereas others might crowdfund from friends and family.
It’s also worth noting that the UK government does have some grants available for small businesses, and small business loans also exist to help get SMEs off the ground.
However, before committing to a loan, it’s worth exploring the repayment plan in case it takes a little longer than usual to generate revenue.
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Step 4: Register Your Plumbing Business
In the UK, all businesses need to be registered on Company’s House. This is a relatively straightforward process and costs around £50.
Once you’re registered, you’ll be able to operate as a fully licenced UK company.
Open a business bank account to keep your work finances separate from personal ones. That will help with accounting.
You should also invest in business insurance to protect you and your employees against any damage claims.
Step 5: Invest In The Right Tech
Aside from the tools you will need to do the plumbing work, you’ll also want to invest in the right software.
Elements like a CRM to help manage customers, accounting software to keep track of invoices and expenses and payment processing software to take payments are all important.
Make sure you shop around and don’t be afraid to take advantage of free trial periods. This will help you make sure you’re using the right software for your business.
Some of our favourite softwares include:
CRMS
Accounting Software
Step 6: Hire Employees
Depending on how quickly you plan to expand, it’s worth looking into hiring employees next.
Posting on job boards or trade forums are a great place to start, and remember, you can always hire people part-time whilst you build up your client base.
As soon as you employ someone, you’ll need to get to grips with local employment laws to ensure you stay compliant.
Step 7: Start Securing Customers
Now you have your business plan, your business name and employees ready to go, it’s time to get some customers!
Marketing can be expensive, but there are definitely ways to start cheap and scrappy. As a first port of call, getting a website designed is a great way to drive business your way.
Once you have that, getting business cards made, posting on community boards and forums and asking your network to shout about your business can be an effective way to build up a client base.
Before you know it, you’ll be running a successful plumbing business in no time!
