Starting Plumbing Business

[chez55]

Hi All,

My partner is about 10 weeks from becoming a Licenced Plumber and as most 4th year apprecntices he has lost his job. We are thinking as soon as he becomes licneced for him to work for himself. I have started studying part time my cert 4 in small business management so I can run the paper side of the business and he can go out there and work. Do people recomend that I talk to people as well as studying? Do we need to go and see a business coach? Do we need to go and see an accountant? Do we need to go out and see a lawyer?
I know plumbers are needed so we are only anticipating starting small and advertising in local newspaper and for him to go out as people call. Am I on the wrong track?

[designmill]

Originally Posted by chez55

Hi All,

My partner is about 10 weeks from becoming a Licenced Plumber and as most 4th year apprecntices he has lost his job. We are thinking as soon as he becomes licneced for him to work for himself. I have started studying part time my cert 4 in small business management so I can run the paper side of the business and he can go out there and work. Do people recomend that I talk to people as well as studying? Do we need to go and see a business coach? Do we need to go and see an accountant? Do we need to go out and see a lawyer?
I know plumbers are needed so we are only anticipating starting small and advertising in local newspaper and for him to go out as people call. Am I on the wrong track?

Firstly, I'm sorry to hear about your partner losing his job. BUT... the bright side is that you seem to be taking this as the opportunity that it is. So many people are too scared to go out on their own, but you and your partner have had this thrust upon you. Not such a bad thing! My parents always taught me that the best way to learn something is to jump on in.

When I started out flying solo (which wasn't that long ago either) the most beneficial thing I did was visit my accountant. They will point you in the right direction so that you set up your tax, bank accounts etc.

Secondly, Network. Which is what you're doing on this site!! Good move. There are loads of people willing to help as long as you ask the question.

Then I would suggest looking into insurance for the business, I work from home so I don't need it, but as a plumber you will probably need to take out some sort of cover.

As for marketing the business, this is my advice:
- get some business cards and be obsessive about handing them around.
- vehicle signage.
- yellow pages online.
- leave details with real estate agents for rental properties.
- Talk to other plumbers who may have overflow, give them his number. If they are too busy to do a job they might pass on his details instead.
- Newspapers can be a little tricky as some circulations don't have successful ad sections. People read the articles.
- Talk to builders, they always need a network of other tradespeople.

(Give me a bell if you want more advice, I'm more than happy to help.)


Laura Patmore
Graphic Designer
Design Mill

P 02 9575 7556
E laura@designmill.com.au
W www.designmill.com.au

[Renee Barber]

First of all, welcome! Sometimes it's tough to start flying solo, especially when it comes as a result of 'downsizing' because the planning and learning curve is shortened.

Having said that, Laura gave some very good tips for getting out there and getting started. Building up referral networks is a great way to go in particular because companies often have overflow and may not have someone specific to recommend. I've actually called tradespeople and been told, 'No, we don't have anyone that can get there for' (whatever time). It doesn't really help when your faucet is overflowing!

SO, in short, good luck and definitely look around on the forum as there's tons of advice and some great people who can probably help provide information on your specific industry.

Originally Posted by designmill

Then I would suggest looking into insurance for the business, I work from home so I don't need it, but as a plumber you will probably need to take out some sort of cover.

Laura, that's what I thought about insurance too (I work from home and have very little foot traffic), but a few people on the forum have disabused (not abused!) me of the notion. I'm sure they'll chime in when they see this post. In particular, I'd look at organising public liability and professional indemnity insurance.

[Burgo]

Good sound advice from Laura.

An accountant is a MUST SEE, and talk everything through with him/her.
My father was a plumber and thats what I wanted to be, when i grew up.
Unfortunately I never grew up ( thought i had better say it before you lot did).
You can do the book work before you complete your studies, and yes start off LOCAL.
Advertise in the trades section of youe local newspaper and just keep it there.
A young fellow several years ago told me he had become licensed, and was going to go out on his own.I suggested advertising locally and making up a flyer for letter box drops that he did at night taking the dog for a walk.
About twelvemonths later I phoned him because we had a broken water pipe, he was too busy could he send his apprentice.
I moved out of the area and recently had to go back to do a job. I saw his mother an asked how he was going.' Oh he's seems to be doing ok just bought his own house has a nice car and employs three or four people.

Tradies are fantastic people, usually a bit cheekie, and do work most of us would not even dream of doing.
So good luck and enjoy this forum there are some very interesting people here that just want to help others.

[BrightSpark]

I would suggest a lawyer to protect your assets and while that may not be much at the starting out of the business they can increase over time without you realising while an accountant is good for keeping the tax man at bay it is not until it hits the fan when you realise just what your lawyer can do. Start working locally. I have found letterbox drops to be ineffective in the most part they will help getting your first lot of customers. Being a trades person is hard work but it can have huge rewards.

Have Fun.

[gareth_concise]

Hey!
Owning your own business is a dream many people don't get to live. Loosing your job is hard but think of the positives!

We help small businesses and startups every day so here is my advice.

Big newspaper ads. NO WAY. They work great for big furniture sales and car yards. You are a 'destination business' - people only require the services of a plumber when they need someone to fix their sink, toilet etc. Go for the small $15/week newspaper advert in the trades and services section. Make sure its eye catching and has your point of difference. ie: "Plumber, available 24/7, local area, sinks, toilets, small jobs." or "Plumber - Anything, Anywhere, Anytime."

Business Cards - cheap and give two to everyone. Y? because they need one and so will their next door neighbor or friend. For $119, you can have 1000 of them - www.conciseprint.com.au.

Small Website. Google is your friend here. A website can cost $500 - $10,000. You need something very simple that appears top of the list for "plumber (your area). Add yourself to www.hotfrog.com.au and www.truelocal.com.au and google maps. They are all free!

Flyers. Get some cheap DL flyers (again www.conciseprint.com.au) and hand them out when you do a job. Walk up and down the street to 10 houses at the job. Flyer reads "I just helped one of your neighbours. I'm a plumber and mine name is (name). I live in the local area and i'm available 24/7. Call me on (number)." etc etc DO NOT DO JUNK MAIL WASTE OF TIME for small business. If you do, do it yourself.

Again, look for destination advertising or referral.

Thats marketing, now, admin side of things. You need a catchy phone number and a landline (some people cannot ring mobiles). Make sure you answer EVERY call or have a voicemail. Have a diary where you write the name, phone number & referral source of every enquiry. You want to know where your customers are finding you so you can get rid of the non performing ones and improve the improving ones. Go and buy yourself MYOB to do accounts. It will do all the invoices for you, tell you what you have to pay and when and be easy to give to your accountant at the end of the day.

Things will start slow and grow. Don't try to run before walking, you'll fall over. Trust me, been there done that!

Any questions, just email me. Here to help! Love this website!

[Hugh Thyer]

Why would you need to compete on price with your competitors???

That's the fastest way to going broke I know.

Compete on value. Work out what everyone hates about plumbers and promise not to do it.

Then you're the ONLY one doing it, and you're competing in a vacuum.

If the only tool you have is a hammer, every problem looks like a nail.

If the only marketing trick you have is low prices, every quote has to get lower and lower.

Go get some direct response marketing books. Begin with Dan Kennedy.

BTW the things I hate about plumbers is they never turn up on time, charge too much for what they do and I don't know if they've been down someone's toilet before coming to my place. And they don't explain things clearly.

[CarolP]

Congratulations - My husband manages a plumbing business - although he is not on the tools anymore. Oh - and his tradies do turn up on time.

The one thing about plumbers (and tradies) is the risk that they carry compared to some other industries. Sign a certificate and it has to be upheld for 7 years from the date it was completed. See a good accountant and set up the right structures in to begin with and protect your assets. Document everything - you never know when you will have the plumbing commission breathing down your neck to fix something that you did not do.

Also - it is hard to get profitable business with builders as they operate on low margins. Set good structures in place for the products you supply and build margin in the products rather than the hourly rate.

Also - if dealing with builders, find out the about security of payments legistation. This will protect you in the event of non-payment and builders going bust. We have seen lots of plumbers go bust because they havent utilised this legislation or understand but it will protect you and ensure you are first in line to get paid. Cash flow is king.

Cheers
Carol

[DS_BVS]

Hi

Just a couple of points to add to the good advice above:

- I would see an accountant in public practice first to establish all of your compliance registrations.

- Ask the same person how you should work out your charge out rates & how to calculate the overheads you will have to cover with those rates. This is the most basic function you must stay on top of.

- If you are not fully confident about doing your financials, engage a book keeper to do it for a start and concentrate your efforts on looking at each job & the profit made; your billing system; & establishing some of the marketing ideas suggested already.

Good luck.

[mitch]

Originally Posted by gareth_concise

Hey!
Owning your own business is a dream many people don't get to live. Loosing your job is hard but think of the positives!

We help small businesses and startups every day so here is my advice.

Big newspaper ads. NO WAY. They work great for big furniture sales and car yards. You are a 'destination business' - people only require the services of a plumber when they need someone to fix their sink, toilet etc. Go for the small $15/week newspaper advert in the trades and services section. Make sure its eye catching and has your point of difference. ie: "Plumber, available 24/7, local area, sinks, toilets, small jobs." or "Plumber - Anything, Anywhere, Anytime."

Business Cards - cheap and give two to everyone. Y? because they need one and so will their next door neighbor or friend. For $119, you can have 1000 of them - www.conciseprint.com.au.

Small Website. Google is your friend here. A website can cost $500 - $10,000. You need something very simple that appears top of the list for "plumber (your area). Add yourself to www.hotfrog.com.au and www.truelocal.com.au and google maps. They are all free!

Flyers. Get some cheap DL flyers (again www.conciseprint.com.au) and hand them out when you do a job. Walk up and down the street to 10 houses at the job. Flyer reads "I just helped one of your neighbours. I'm a plumber and mine name is (name). I live in the local area and i'm available 24/7. Call me on (number)." etc etc DO NOT DO JUNK MAIL WASTE OF TIME for small business. If you do, do it yourself.

Again, look for destination advertising or referral.

Thats marketing, now, admin side of things. You need a catchy phone number and a landline (some people cannot ring mobiles). Make sure you answer EVERY call or have a voicemail. Have a diary where you write the name, phone number & referral source of every enquiry. You want to know where your customers are finding you so you can get rid of the non performing ones and improve the improving ones. Go and buy yourself MYOB to do accounts. It will do all the invoices for you, tell you what you have to pay and when and be easy to give to your accountant at the end of the day.

Things will start slow and grow. Don't try to run before walking, you'll fall over. Trust me, been there done that!

Any questions, just email me. Here to help! Love this website!

I'd go with what this smart character says, also definitely have a look into NEIS.
Its a government funded cert4 in business management and you get unemployment benefits for a year whilst you get your business up and running, regardless of your income.....at least thats what it was 10 years ago when i did it.

Good luck, a trade is a great way to build a business.

Mitch