Are you considering starting a plumbing business?
Maybe you’ve owned a plumbing company for years and are wanting to secure funding to open a second location.
Whether you're a seasoned business owner who’s expanding or the new kid on the block, having a plumbing business plan for your company can provide the structural foundation you need to give your business the boost you’re hoping for.
But what’s involved in creating a plumbing business plan? And where do you even start?
We walk you step by step through why you need a business plan and provide plumbing business plan examples to point you in the right direction.
A business plan is a document that provides a detailed outline of a company's business objectives and how it plans to achieve its goals.
The plan is a written guidebook for the company, from the standpoints of …
Ben Franklin hit the nail on the head: “If you fail to plan, you are planning to fail.”
Taking the time to create a plumbing service business plan is a great way to ensure the success of your company.
In fact, research shows that companies who plan see a growth rate that is 30% faster than those that don’t.
If you want to set your plumbing business up for success, a plumbing business plan lays a strong foundation.
To help you visualize your plumbing business plan, we’ll be creating a fictional plumbing company as an example. Use the ideas we’re presenting for Citywide Plumbing as a springboard to help construct your personalized business plan.
The purpose of your executive summary is to capture the attention of your reader by presenting an introduction to your business plan.
You will outline your business status and the type of plumbing company you operate. For instance:
Are you a third-generation plumber who's branching out on your own?
Are you a start-up, with a focus on growth?
Do you plan to operate in multiple locations?
The executive summary is informed by the data/decisions that are made as you create your business plan. For this reason, the executive summary needs to be written last to ensure alignment with the plan.
The plumbing business will be registered as Citywide Plumbing and shall be located in Los Angeles, California. The business is owned by Patrick Reynolds, who is an experienced, professional plumber.
Patrick Reynolds, owner of Citywide Plumbing, is an experienced plumber with more than 25 years of experience in the plumbing industry. Patrick knew from a young age that he wanted to dedicate his life to plumbing, just like his father and grandfather before him.
Nate Reynolds is the Sales Manager at Citywide Plumbing. As Patrick’s son, Nate has grown up in the industry and learned the trade from his father and grandfather.
Jose Ramirez fills the role of Service and Repair Manager. Jose has been a plumber in the greater Los Angeles area for the past 10 years and has a reputation for providing excellent customer care.
With deep family roots in the plumbing business, Patrick understands the value of providing excellent customer care.
Citywide Plumbing will be focused on going above and beyond the expectations of their clients to establish a reputation of being courteous, trustworthy, and reliable.
Patrick has a solid understanding of the plumbing industry and what it takes to attract the customers he will need to bring in his anticipated business revenue.
With the right set of strategies, he plans to penetrate the Los Angeles plumbing market and gain an exceptional level of business.
This section focuses on the details of the plumbing company, including:
Patrick Reynolds is an accomplished plumber whose successful career in the industry has spanned over two decades. As a leading expert, Patrick has worked on both small and large-scale plumbing projects, which have equipped him with a wealth of knowledge on how to run a successful plumbing business.
The booming growth of both the residential and commercial real estate industries in Los Angeles has created an exceptional number of opportunities for plumbers in the areas of constructing, repairing, and maintaining plumbing systems.
Patrick’s experience in the industry allowed him to recognize the potential and informed his decision to start Citywide Plumbing.
Patrick is a successful plumbing professional with many years of knowledge and experience in the industry. He understands the technical details of how to run a business but has also hired a team of financial business experts to help him create a comprehensive financial analysis.
Citywide Plumbing will offer a wide variety of services for clients in the greater Los Angeles area. To create an inroad to penetrate the local market and grow his plumbing business, Patrick Reynolds plans to focus on a strong model of professionalism and excellent customer service.
By offering a diversified menu of services to target all types of clients, Patrick will be able to market his skills to a wide sector of the local community. Citywide Plumbing intends to offer the following services to both residential and commercial clients in and around the greater Los Angeles area.
Plumbing is a vital service sector that plays a key role across both the commercial and residential real estate industries. Building contractors are regularly in need of professional, experienced, reliable, and competitively-priced plumbers who are able to provide superior plumbing services.
The rapid expansion of the Los Angeles real estate industry, coupled with Patrick’s vast knowledge of how to run a plumbing business, set Citywide Plumbing up for excellent future growth.
For Citywide Plumbing to meet its financial objectives, it must have a strong understanding of Los Angeles’ demographics and the marketing strategies that will be needed to bring in prospective clients.
With a population of over 4 million people, Los Angeles is the second-largest city in the United States. This means a huge source of customers for Citywide Plumbing is expected to be individual households in need of professional plumbing services.
This plumbing business plan outlines what needs to be done to effectively reach out to this vital market.
From day one, Patrick and his team will need to focus on finding ways to connect with local households throughout Los Angeles’ many residential neighborhoods.
Los Angeles is a corporate hub for numerous industries with commercial buildings, including tech, apparel design and manufacturing, footwear, and jewelry.
Whether installing plumbing systems in new buildings or doing maintenance and repairs for existing structures, the corporate industry is a lucrative market for Citywide Plumbing.
Corporations award large long-term plumbing maintenance and repair contracts, which are lucrative revenue sources Citywide Plumbing hopes to obtain through strategic marketing strategies.
Los Angeles’ vibrant real estate sector is one of the most profitable customers for the local plumbing industry.
Los Angeles is home to some of the largest and most popular real estate companies in the United States. Due to the vast number of real estate firms, Citywide Plumbing will need to have a strong understanding of how to market its plumbing business to both large and small real estate owners and developers.
A strategy for how to penetrate the real estate industry will be one of Citywide Plumbing’s marketing priorities.
Government is a major customer segment with a strong capability to provide Citywide Plumbing with a steady flow of revenue.
Citywide Plumbing will seek to make connections with local government agencies, as well as national agencies, including the:
When thinking about plumbing business start-up costs, Citywide Plumbing has come up with a pricing structure that takes into account the current market rates being charged by their local competitors.
They have taken start-up costs into consideration, while also considering the needed pricing mechanism to help the business obtain its target revenue.
A variety of creative marketing strategies will be needed to aggressively promote the plumbing business. With the right strategies in place, Citywide Plumbing has vast revenue potential.
Los Angeles is a large city with plenty of opportunities that can only be identified through consistent market analysis and research efforts.
Citywide Plumbing has conducted extensive research on the local plumbing industry and identified areas to focus on to generate top revenue in a highly competitive plumbing market.
To penetrate the market and win loyal customers — while also continuing to attract new clients, Citywide Plumbing will utilize the following sales strategies:
In order to set the foundation for their finances and help them grow and expand their service capabilities, Citywide Plumbing has created a detailed sales forecast.
Formulated to guide the business on a path towards success, this forecast includes:
Plumbing is highly technical and the success of Citywide Plumbing depends on the caliber of its team members. Citywide Plumbing understands the importance of having skilled, experienced, and reliable employees. Hiring personnel is a key component of Citywide Plumbing’s plumbing business plan.
Patrick Reynolds, owner of the business, will serve as the Chief Executive Officer.
For Citywide Plumbing to operate at full capacity, they will also need to hire the following staff:
Successful applicants will be taken through a comprehensive training program to familiarize themselves with the company’s operations.
Citywide Plumbing intends to compensate staff with competitive salaries within the first three years of operation.
One of the key things to think about when starting a plumbing business is having a sound financial strategy in place. Citywide Plumbing has come up with a detailed financial plan that will help guide the business to financial success.
A bulk of the capital will be contributed from Patrick Reynold's personal savings and the generous contributions of two investors. Additional funding will be sought through a bank loan. Using the following detailed breakdown of financial parameters, Citywide Plumbing will be well-positioned to embrace business growth opportunities.
The financial forecast for Citywide Plumbing is based on the assumptions below:
Citywide Plumbing’s break-even analysis is shown in the table below:
Profit and loss information for Citywide Plumbing as calculated on a monthly and annual basis is indicated below:
Citywide Plumbing will calculate its projected cash flow by considering the following figures: