Starting a Plumbing Business: Essential Steps and Financial Planning

Has the time come to start your own plumbing business? This is an exciting step and may be something that’s been in the pipeline for a while.

To help you get started, here are some important steps to consider, from planning your venture to promoting your business to those all-important first customers.

1. Make a business plan

A business plan helps you figure out your goals and how you will achieve them. It should answer questions like:

• What plumbing services will you offer and to who?

• How much will you charge?

• What tools and materials will you need?

• How will you keep track of jobs and payments?

• What are the strengths and weaknesses of your business?

• How will you fund the business launch and day-to-day running?

• How will you promote your services?

2. Choose a business structure

What type of business do you want to set up? In Australia, the most common business structures are:

• Sole Trader: You run the business by yourself. It’s easy to set up and gives you complete control, but you’re personally responsible for the risks.

• Partnership: Two or more people run the business together, sharing the risks and profits.

• Company: A company is a separate legal entity, which can limit your personal risk. It’s more complex, but it can be beneficial as your business grows.

Your choice of business structure will have legal and tax implications, so getting expert advice, from a lawyer and someone like an accountant, is a good idea.

3. Register your business

Before you start trading, you need to make things official. This includes:

• Registering your business name

• Registering as a company (if you’re structuring your business that way)

• Registering for an Australian Business Number (ABN) and Tax File Number (TFN)

• Registering with the Australia Taxation Office

You also have the option to register your business name as a trade mark. This means you have exclusive rights to use that name in Australia.

Getting legal professional advice with this could help you avoid running into issues down the track.

4. Get the right tools

It goes without saying that you’ll need access to the right tools, equipment and vehicles. Owning your own tools (rather than hiring) will give you more flexibility to take on jobs at short notice.
Make a list of everything you’ll need from day one.
For anything you don’t already have, work out whether you want to buy new, hire as you need it, or buy through a payment plan, like LaddrPay, from Laddr Finance.

5. Make a simple marketing plan

Start with the basics, like:

• A professional logo

• A website

• A Google Business Profile

• A business email address and phone number

Good reviews are worth their weight in gold for new businesses. Make sure you ask customers to leave a review on your Google Business Profile. Prioritise customer service and quality work to get repeat business and new customers through word of mouth.

Partnering with like-minded businesses in your local area can be a great way to get your first few customers. And using social media to showcase your offering - and personality if you’d like to be the face of the business! This can make a great point of difference.

6. Get finance in place

Your business will only get off the ground if you have the money to launch it and  pay for day-to-day running. 

Ideally, the money you’re bringing in will more than cover your costs. But if you need cash, make sure you can access a reliable source of finance, Laddr Finance - partnered with Reece, is a great option because it is designed to support tradies. 

7. Protect what you’ve built

Starting a plumbing business brings big opportunities, but there are risks too. You can manage some of these by having the right insurance. In fact, some business insurance, like workers’ compensation, is mandatory. 

Other types of business insurance that may prove valuable include:

• Public liability insurance

• Vehicle Insurance

• Building and contents insurance

• Income protection cover

• Business interruption cover

Starting a business can be one of the most challenging but rewarding things you can do. If you’ve read this far, chances are you’re serious about taking the next step. We wish you every success!

This guide was written by the finance experts at Money.com.au.

Laddr Finance, backed by Reece, has a number of easy to apply for finance products, such as LaddrPay, to help you get up and running with your business. Learn more at https://laddr.com.au/