How to Start a Plumbing Business: 11 Steps to Get Up and Running

1. Get your plumbing license

Earning your state-required plumbing certification gives you the knowledge, skills, and experience you need to perform your job well.

Here’s how to start your journey to becoming a licensed plumber:

• Get the right education. First, graduate from high school or get your GED. Then, attend a college or trade school to learn technical requirements like plumbing math and design, building codes, installation methods, residential and commercial repair, and more.
• Become an apprentice. A plumbing apprenticeship is paid on-the-job training under a master or licensed plumber. It helps you build a network, gain experience, and prepare for life on the job. Apprenticeships can last from two to five years and are a mandatory part of becoming a licensed plumber.
• Pass your license exam. Plumbing license exam requirements depend on your region, and some regions require you to renew your license periodically. Once you’ve passed your exam, you can work as a journeyman plumber within a company, or on your own as a self-employed plumber.

Depending on your state, you may be required to get your master plumbing license before starting a business. This can take up to five more years of on-the-job training and certifications.

State-by-state plumbing certification requirements vary, so double-check to make sure you meet the requirements for the right certifications.

2. Research your target market and customers

To ensure the success of your new plumbing business, you’ll need to know your target customers and what plumbing services are in high demand.

Will you focus on residential plumbing, or will you target commercial plumbing clients with larger plumbing systems? What types of plumbing services do they need?  For example, homeowners might be more likely to need routine maintenance or emergency repairs (like fixing burst pipes). Commercial clients might require routine servicing for large office buildings or plumbing in warehouses.

Here’s how you can research your target market and get to know your customers:

• Network with other plumbing business owners to gain insight into who your biggest competitors will be and what types of plumbers are in the highest demand.
• Follow or join discussions about plumbing issues in online forums, like Reddit, or on social media sites, like Facebook or Twitter.
• Reach out to potential clients, like homeowners, contractors, or commercial property owners, to discuss business opportunities. Ask them about their plumbing needs and past experiences with other plumbers.
• Once your business is up and running, ask customers to provide feedback after the job is complete to better understand their expectations and areas of improvement.

Determine your unique selling point (USP)

Once you’re familiar with your ideal customers or target market, you can determine what sets you apart from other plumbers in your area. This is also called your “unique selling point,” or USP.

Your plumbing company’s USP could be:

• 24/7 emergency services
• Guaranteed work satisfaction 
• Your professional training and certifications
• Transparent pricing and value
• Community involvement

Include your USP in your website and all other marketing materials (like flyers and ads) so potential customers know why they should choose to work with you.

3. Write a business plan

Writing a business plan will help you start your plumbing company on the right foot and move in the right direction—including toward those goals you defined earlier.

You’ll also need a written business plan to attract investors and secure financing for getting started. A well-formed plumbing business plan should include:

• Cover page with your business name, logo, and contact information
• Executive summary with a quick overview of your business, how much funding you need, and what sets you apart from your competition
• Business overview with a summary of your business structure (i.e., sole proprietorship, LLC, or corporation) and history
• List of services and pricing strategy showing what your plumbing business will offer customers
• Market analysis describing your target market and the competition in your area
• Marketing strategy outlining how you’ll attract new clients to your plumbing business
• Financial plan showing the money coming into and going out of your business for the first year (including sales forecast, budget, and any personnel costs)

4. Set plumbing business goals

Think about the reasons you’re starting your plumbing business. Where do you want it to go in the next year to five years? Set short-term goals to help you work toward that vision, like:

• Getting 10 five-star Google reviews within your first six months
• Earning $75,000 in sales in your first year
• Hiring your first employee within two years
• Having a second vehicle and service team within three years
• Expanding your plumbing services to include plumbing fixtures installation.
• Increasing your focus on high-demand areas, like emergency plumbing work.

Even though it takes time and dedication to reach your goals, your plumbing skills will help you achieve your biggest dreams before you know it.

Follow the latest plumbing trends

Want to become even better at what you do and set realistic goals Staying on top of plumbing industry trends will help you keep up with the competition when it comes to pricing, marketing, and more. Plus, following the latest trends can help you create more realistic goals and hit those targets faster.

These are just a few ways to do that:

Explore professional development resources, listen to podcasts, read books for entrepreneurs, and attend learning events like Jobber Summit.

Network with other plumbers and learn from their success stories.

Check out plumbing blogs and plumbing business resources for tips and tricks that’ll help you be successful in the industry.

5. Secure business financing

Unless you already have personal funds available, you’ll need financing to purchase tools and equipment, plumbing software, pay for insurance, and get your first customers. Look into options like: 

• Government funding: The Small Business Administration (SBA) offers funding programs like small business loans and investment capital.
• Small business administration loans: Get a small business loan or line of credit from your bank or an online lender like OnDeck or Fundera. You can also ask a friend or family member for a startup business loan.
• Business line of credit: A business credit card with a low interest rate can help with cash flow when you’re just starting a plumbing business. Just make sure to pay it off each month.
• Business grant: The Jobber Grants program offers $150,000 in available funding to recognize excellence in small home services businesses.

Pro Tip: Get a business bank account to keep your personal finances separate from your company income and expenses. This will be a big help during tax time.

How much money do you need to start a plumbing business?

Plumbers need $6,325–8,150+ (USD) to start a plumbing company. Here’s a cost breakdown:

• Business license and registration ($75–400)
• Plumbing business software ($400+)
• Business insurance ($600–2,000/year)
• Branded uniform and work boots ($100–200)
• Tools and inventory ($5,000+)
• DIY website and business cards ($150)

It’ll cost much more to get started if you don’t already have plumbing education and certification ($5,000–10,000+) or a work truck ($3,000–30,000).

6. Invest in the right plumbing equipment

Stocking your plumbing van with a few essential plumbing tools will save you from running to the hardware store for every job or service. Keep these items in your plumbing tool bag:

• Hand tools (crescent wrenches, pliers, grips, handsaw, pipe cutters)
• Cordless battery tool set (drills, saw grinder, screwdriver, impact driver)
• Inventory (fittings, plastic/copper pipes, inlet valves, elements, thermostats)
• Safety equipment (plumbing gloves, goggles, heat shields, knee pads)

Start with the basics and buy used items if you can. Only rent or purchase equipment for specialty jobs if you have the license, skills, and customer demand.

7. Register your business

You’ll need to legally set up your plumbing business and get insurance before you can start taking on your first customers. Use this checklist to get started:

• Choose your business structure. Register your business as a sole proprietorship, partnership, or limited liability company. LLCs are common for small businesses because it limits liability if you’re ever sued. You can also choose to incorporate your business.
• Register your business name. Run a trademark search to make sure your plumbing company name isn’t already in use. Then register your business name with your local government.
• Apply for the required licenses and permits. Check with your local municipality to make sure you have the right local, state, and federal permits or licenses to operate your plumbing business.
• Apply for an EIN. If you work with a partner or plan to have plumbing employees in the future, get an employer identification number (EIN) from the Internal Revenue Service. You’ll need it when tax season rolls around.

8. Get business insurance

Plumbing insurance protects your business and your clients after any accident, injury, or equipment or property damage. It’s wise to look for a complete policy that includes:

• General liability insurance: Covers claims related to bodily harm, property damage, or personal injury.
• Commercial auto insurance: A policy that kicks in whenever there’s a collision or other damage in a company vehicle.
• Workers’ compensation insurance: Protects your business in the event an employee is injured on the job.
• Commercial property insurance: Covers damage to your equipment or any property where you perform business and conduct routine operations.

9. Price your plumbing services

Before bidding on plumbing jobs, make sure your prices cover your costs and leave room for profit. To do that, you can use this simple formula: 

Service price = labor costs + material costs + overhead costs + profit margin 

Let’s say you’re installing a new water heater. Your labor costs are $200 (4 hours at $50/hour), materials cost $600 for the water heater and supplies, and overhead costs like truck maintenance and office expenses add $100. If you aim for a 25% profit margin, you’d calculate your price like this:

$200 (labor) + $600 (materials) + $100 (overhead) = $900
$900 × 0.25 (profit margin) = $225 (profit)
$900 + $225 = $1,125 (service price)

This method ensures that you’re covering costs, making a profit, and pricing competitively for your market.

Pro Tip: A good starting profit margin is 20-30%, but adjust it based on your business goals.

Not sure where to start when it comes to knowing what your customers are willing to pay? Don’t stress.

First, research what other plumbers in your area charge to stay competitive. Don’t just copy their rates, however. Focus on pricing that helps you grow your business while delivering ultimate value to your customers.

10. Get your first customers

Advertising costs can add up fast for a new business. Focus on cost-effective marketing strategies and avoid overspending on advertising until you’ve identified which approaches effectively attract the most customers.

Start by creating a plumbing website that describes your services, shows off your great work, and makes it easy for potential customers to book plumbing services online. 
You’ll also want to set up your Google Business Profile (formerly Google My Business)to boost local SEO, list your plumbing services, and offer online booking.

11. Hire technicians to grow your business

Eventually, you might reach a point where you’re overbooked, overwhelmed, and falling behind on paperwork. But don’t worry, these are just growing pains, and they signal that you’re ready for the next stage—hiring your first employee.

Follow these steps to hire skilled plumbing technicians for your business:

• Decide what type of plumber (and type of person) you need
• Write a plumber job description that outlines the open position
• Advertise the job on your website, online job boards, and social media
• Meet with qualified candidates and ask the right plumbing interview questions
• Hire the best candidate with solid work experience, make an offer, and plan for their first day

Adding a new employee might feel intimidating, especially if you’re used to handling all the work on your own. But the right person won’t just complete work on your behalf. Instead, they’ll be a true extension of a brand that you’ve worked hard to build.