How to Manage a Plumbing Service Business

Now that your plumbing business is up and running, it's time to focus on how you intend to manage your business. As you've probably realized, being the owner is hard work. You're responsible for all aspects of your business, such as accounting, advertising, hiring, firing and making sure your customers are satisfied. Fortunately, there tools and methods available to help you get a better grasp on business management.

Things You'll Need

• Accounting software or tools

Instructions

1. Focus on accounting. How you track the money flowing in and out of your business will largely determine whether your business is a success. Account for everything, from insurance and interest paid on loans, to payroll and day-to-day expenses. Determine how you intend to meet your goals based on your past and current performance. Using Excel, create a Break Even analysis worksheet, which will help you identify when you expect to break even based on what you intend to charge for your services and the costs associated (supplies and salaries). Create a sales forecast, business cash flow statement and business income statement to help you manage your assets and liabilities. Visit the SBA.gov for help on how to write up your monthly financial statements. Or invest in plumbing software to help you track your business. Insightdirect.com (See Resources) offers plumbing software that includes tools to help you manage estimates, customer information, schedules, inventory and payroll. If you choose to outsource your bookkeeping, to minimize the risk of fraud, keep a close eye on your accounts.

2. Identify which advertising tools bring in the most customers by asking each customer how they found out about your business. Ask them to write a review of your services in an online directory where your business is listed, in exchange for a discount. Advertise on Craigslist.com. Post business cards on bulletin boards around town. Contact local electricians, roofers and other contractors, who may need to sub out plumbing work. In return, you can refer their services to any of your customers in need of contract work. Consider paying to have your business listed on Reliableremodeler.com (See Resources).

3. Evaluate your technician's performance. Be aware of what they are doing at all times. Identify your best technician and your worst. Do this regularly. Repeat business and customer satisfaction hinges on your employee's performance. It's your job to reward stellar employees and punish, or fire those that do not employ good customer service and use of the company's time. Use employee performance sheets to track behavior, then sit down with your employees each quarter to discuss performance.

4. Offer annual plumbing inspections to your customers to encourage repeat business and customer loyalty.

5. Seek business advice from those you respect and trust, whether it is a family member willing to take up the accounting, a former boss, a friend,\ or a SCORE mentor or a professional. See Resources for information on how to connect with a SCORE mentor in your area.

6. Set goals for your business, such as three new customers per month, or cutting costs or expenses by 1 percent each month. Always be looking for ways to cut costs. If an advertising strategy isn't working and you're paying for it, cut it. Contact suppliers about getting better deals on tools and supplies.

7. Determine an exit strategy in case the business fails, a partner leaves or you decide to retire. Decide what markers you will use to determine when it is time to throw in the towel or sell your business.

Tips & Warnings

• Use the resources you have. Avoid taking on more debt than you need to.

References

• 21 Reasons Plumbers Fail

Resources

• Reliable Remodeler
• Insight Direct Plumbing Software
• SCORE
• SBA