The Best Information for Starting a Plumbing Business
When starting your own business, be prepared for all the aspects of being an entrepreneur. To start a plumbing business, you must be licensed by your state as a plumbing contractor. You'll also need to become informed about licenses and regulations that affect your business and develop skills in the areas of management, marketing, insurance and financial projections. (See Reference 1)
Other People Are Reading
-
Licenses
-
You will need a contractor's license to perform the work. Apply for a local occupancy or business license to open your business. Then choose a business structure, usually a corporation, which will provide protection for your personal assets. File incorporation documents with your state government. Then, secure an employer tax identification number from the IRS by filing form SS-4 or filing online. You will also need to register as an employer with the state unemployment insurance office.
Management
-
You may need to hire employees, such as other plumbers, helpers or office staff to assist you. To ensure effective employer-employee relationships, you should feel comfortable creating office policies concerning topics such as work expectations and paid time off. You should also be prepared to set expectations for work quality and be able to address any issues with professionalism. Even if you do not hire employees, you will need to have solid management skills that enable you to balance your work load, customer service and other entrepreneurial demands.
-
Marketing
-
Now that you have set up your business, your next step is to secure customers. Tell everyone you know---friends, family and colleagues---about your new business. Invest in business cards, a website and vinyl lettering for your truck. Make sure all of your marketing materials clearly show the name of your company, your telephone number and your license number. Many states require that you include your license number on all advertising materials.
Insurance
-
Insurance is important to protect yourself from liability. Speak with a licensed insurance broker regarding liability, auto and workers' compensation insurance. Your agent should be well-informed on the needs of a contractor and be able to advise you properly. If you need the name of a respected agent, ask your colleagues in the contracting industry.
Financial Projections
-
To be a successful business owner, it is imperative that you learn to read and understand financial documents. Simple financial statements, such as the balance sheet, income statement and cash flow statement, provide guidance as to the success of your business. Knowing your cash flow situation can mean the difference between business survival and bankruptcy. If you need to brush up on these skills, contact your local Small Business Development Center office.
-
