Even working as a one man show, it’s possible to make a six figure income as a solo plumbing company…
And the potentials to expand a growing plumbing company are virtually endless.
So if you are considering starting a plumbing business in 2025, your question shouldn’t be, “Is a plumbing business profitable?”
It should be, “Is starting a plumbing business worth it?”
Because there is a lot of time, training, investment, and effort that will go into starting a successful plumbing company…
And you need to know what you’re signing up for.
Which is exactly why I created this thorough 9 step guide that will help you navigate the entire process of starting a plumbing company in 2025.
I’m Ippei, a master of all things online business, and your friendly neighborhood lead generation specialist.
And I’m also throwing in a complete breakdown of the realistic startup costs for this business model, and the average profit margins for the industry…
So that you get a full picture of what it takes to run a plumbing company.
Let’s do this thing.
How to Start a Plumbing Business in 2025
Considering Starting Your Own Plumbing Company? Here's What You Should Know:
Starting a plumbing company can be extremely profitable, and this industry is practically recession proof. But to get started you will need to complete the lengthy education process, create a solid business plan, find your plumbing niche, and learn to market your plumbing company and effectively price your services.
Start Up Costs
While this list is not a comprehensive compilation of every you need to start a plumbing business, it provides a snapshot of what you need to add into your business plan.
Average:
Low:
High:
Plumbing Licensing/
Certification:
Program: $1,250-3,000
Apprenticeship: $0-$1,000
Associate's degree: $3,000-23,000
Franchise Fees:
$75,000
$21,900
$150,500
Van or Truck:
$18,500
$7,000
$30,000
Certification:
$5,000
$1,500
$8,500
Equipment:
$5,000+
Maintenance for Vehicles & Tools:
$2,000 per year
$1,000 per year
$3,000 per year
Insurance:
$53/mo
Office Expenses (Rent, Utilities, etc.):
Rent: $8-23 per square foot // Utilities: $2.10 per square foot
Total Cost to Start Up:
$40,000
$10,000
$63,000
Annual Revenue of Established Plumbing Business
According to Jobber Academy, the average annual revenue of this kind of business is: $75,000-$120,000
Annual Profits of Established Plumbing Business
According to Jobber Academy, the average Profits of this kind of business are: $55,000-90,000
Profit Margins of Established Plumbing Business
According to Mechanical Service Contractors of America, the average Profit margin of this kind of business is: 35%
9 Step Quick Start Checklist:
9 Step Quick Start Checklist:
1. Create a Business Plan and Get Legal
Before you can really dive into how to start a plumbing company…
You should really take the most basic first step of any entrepreneur’s journey.
And that is to sit down and write a business plan, and prepare to legally set up your business.
Writing a business plan can be as simple or complicated as you make.
That’s just the honest truth.
If you are planning to seek the help of outside investors or a small business loan to get your plumbing company off the ground…
Then you will need to be more prepared to write a more formal, and certainly a more lengthy business plan.
But if your goal is to fund this business venture yourself, then a business plan primarily exists to serve you as the business owner!
It’s there to keep you on track towards your long term financial goals…
As well as aiding you in implementing the systems and structures necessary to run your business smoothly.
If you’re struggling to put that pen to paper (or fingers to your keyboard more likely!)...
Then this basic business plan outline should help you get started in the right direction:
Basic Things to Include in a Business Plan:
Then you can move forward to legally establishing your plumbing company.
I highly recommend talking to an attorney during this process.
It’s not as simple as just getting out there, making sales, and raking in the cash!
You need to know what your game plan is, and you need to ensure that you are setting up your business legally and correctly.
Which is where speaking to an attorney can be so valuable.
They will be able to walk you through the often complex stages of starting a business…
The right way!
With a professional by your side, you will be less likely to make common new business owner errors, and your plumbing company will be set up for success from day one.
This includes everything from establishing an LLC, registering for your EIN number, obtaining business insurance, and opening a business bank account.
It’s better to go above and beyond the required insurance rather than sticking with the basics.
But you will at least need to invest in the following insurance basics:
Insurance is more than just a legal requirement for your plumbing company…
It’s there to protect your livelihood wellbeing, as well as that of your employees.
2. Apprenticeship and Education
Alright…
I have some potentially bad news for you.
If you’re here hoping to jump into the plumbing industry and run your plumbing business without any experience…
You are tough out of luck my friend.
There is a rigorous and time consuming training period for anyone wanting to become a plumber and eventually run their own business.
In fact, you will need to go through three different stages of qualification before starting a plumbing company:
And to become a master plumber, you will have to pass the master exam.
While the hours and requirements to go from each stage to the next will vary from state to state…
This is typically a 5-8 year process to go all the way from apprentice to master plumber.
So yes, is there money to be made by owning a plumbing company?
Absolutely.
But if you’re planning to go from zero to sixty overnight…
Then this isn’t the business model for you.
During your training as an apprentice and eventually as a journeyman, you will need to work hard to prepare yourself to become a plumbing business owner oneday.
You need to work harder than the people around you, show up on time, and master your trade.
Learn what to do and also what not to do from those around you in the industry.
You need to know the in’s and out’s of this phase before you run your own plumbing company.
Not just because you will need to be a master of your craft, but also because you are going to be hiring people in these various stages of training!
Once you’ve been through it, you will know what to look for and be mindful of when hiring on an apprentice, journeyman, or master plumber for your own company.
3. Register Your Company
Once you have settled on the perfect name for your business, there is an extremely important step that you cannot forget!
Immediately register that business name with the secretary of state.
This is important, because if you are starting to market yourself and build a brand around this name…
Only to find out that the name is already taken by someone else, you will need to either rebrand yourself, or face the possibility of a lawsuit.
Typically, when you go to register your LLC with the state, they will automatically double check to ensure that your desired business name is available.
But you can also do a preliminary Google search to see what you can find on your own before you even go to file.
It’s not just important that your specific business name is available…
You also need to evaluate how many businesses have a similar name to yours either in the same industry or a different industry altogether.
If there is another plumbing business with an extremely similar name to yours…
It’s best to steer clear of that name altogether and head back to the drawing board.
If the name you’ve chosen is similar to another business’s name, but they are in a completely different industry in a different location…
This isn’t as big of a deal.
But it could still potentially create confusion, so just be mindful of these factors as you start building your plumbing brand.
Once you’ve found the perfect (and available) business name, go ahead and set up accounts across all social media platforms even if you don’t plan to use them yet.
If you set it up now, you don’t run the risk of your business name being taken on those platforms if you change your mind or want to expand your reach down the road .
The same goes for your website domain.
Even if you aren’t ready to build out your full site yet, you can still claim the domain name that you want!
4. Choose Your Niche
One of the best ways to start building a reputation and awareness for your plumbing business is to choose a niche.
If you are trying to offer your plumbing services to everyone who might ever need anything related to plumbing…
It will be harder to grow a brand and a name for your plumbing company.
Which goes back to the idea that if you are speaking to everyone…
You are ultimately speaking to no one.
Dial in your plumbing niche, so that you can more accurately and effectively market yourself to an ideal client.
So what are your plumbing niche options?
Great question.
To find your plumbing industry niche, you will need to ask yourself two different questions.
The first question is this:
Do I want to work in residential or commercial plumbing?
And the second questions is:
Do I want to work as a service technician on maintenance and repairs, or do I want to work on new construction?
And finally, you will have to decide whether you want to start your company as a part of the union, or as a non-union company.
Once you determine where you fall into the plumbing industry niches, you can dive even further into company specializations.
5. Find your Specialization
Yes, this is taking things a step further than your standard plumbing niche!
Your specialization is how you are going to stand out from the rest of the plumbing companies in your area.
And it is completely up to you to decide what your specialization is, and how far you want to run with it.
Some plumbing companies become so specialized, that they literally only offer that one service.
For others, their company specialization is simply a way that they target their marketing based on their strengths.
And ultimately, this is the key to choosing your specialization.
It should be something that you either love to do, or a really great at.
Hopefully it’s a combination of both!
Examples of some plumbing specializations are:
Many people in the business world will refer to a company’s specialization as their USP.
What the heck is a USP?
It stands for “Unique Selling Proposition”, and it is the core element of your business that sets you apart from your competition.
That can be through your specialization, excellent customer experience, value, price, or even how skilled your technicians are.
Whatever your specialization or USP is, make sure you know it, live up to it, and clearly communicate it!
6. Marketing Your Plumbing Business
Allow me to let you in on a little secret…
If you’re going to open a plumbing business, then you will be subject to the same struggles that each and every business owner before you has faced!
What do I mean by that?
Well, you’re going to have the same fundamental need as every other business owner:
New leads.
Which is where strong marketing tactics and lead generation strategies come into play.
Fortunately, we actually teach small business owners how to steadily and sustainably generate new leads…
Practically on auto-pilot!
With our lead generation strategies in place, you will be able to turn your attention back to the things in your business that really need your time and attention.
So if you want to learn more about how we can help you get started with lead generation for your plumbing business today, then click here for more information.
But in addition to a tried and true lead generation strategy, you will still need to put thought and effort behind your plumbing company marketing.
One of the best places you can start as a small business owner is to get out into your community and network!
As a plumbing company, you need to start building a name for yourself…
And this begins by showing up, showing your face, and building trust within your local community.
One of the best ways to do this is by joining your local chamber of commerce.
You’ll be amazed at how much of a difference it can make in the life and success of your business to have other small business owners rallied around you…
And spreading the word about your company to their friends and family.
Plus, people want to know that when they hire a plumber, they can trust the company that is coming out to their house to get the job done well, and not overcharge or scam them!
The sooner you develop a reputation for being an honest business person of integrity, the better.
Your next order of business is simply to build out your website!
As simple and obvious as this might seem, many business owners neglect this step because they don’t know where to start, or they can’t afford to hire a web designer.
Ultimately, you don’t even need to hire a graphic or web designer if it’s not in the budgeting cards at first.
There are plenty of template based website builders available now that make building a website extremely simple and user friendly…
Even for those who aren’t artistically inclined!
Some of my personal recommendations are:
Once you’ve created a website for your plumbing business, the next best thing you can do is to set up your Google My Business Page.
This will drastically improve your business’s online visibility, and make it easier for people to find you via localized Google searches and Google maps!
Plus, the setup is extremely simple (and free!), so once you’ve plugged in all the details about your business and thrown up a few photos…
All that’s left is to wait for your confirmation code postcard to arrive in the mail.
Some other simple marketing ideas you can consider for your plumbing business are:
7. Invest in Quality Equipment
The biggest equipment investment when it comes to starting a plumbing business is hands down your work vehicle.
Hopefully you already have a truck or large van…
But if you don’t, then this will be your first big purchase for your business.
(Hello tax write off!)
You may be tempted to purchase a used van or truck to start out with…
And if this is really all you can afford, then do it.
But if your vehicle breaks down, then you are essentially out of work for however long it takes to repair that vehicle.
It would be better to invest your money up front in a reliable work vehicle that you can be confident will last a long time without falling apart and costing you valuable jobs.
These are the top five best vehicles for a plumbing company:
Best Vehicles for Plumbers:
Here is a list of plumbing equipment that you will also need to acquire:
8. Setting Your Pricing
Ok, it’s time to set your prices...
The first question you really need to answer here is how much it actually costs you to do business!
If you don’t know your basic operating expenses, then you really cannot begin to set your prices.
This includes everything from the cost maintaining and fueling your vehicles, to your labor costs, overhead, and materials.
Which is exactly why you can’t just base your pricing off of the local competition.
Yes, it’s important to know what your competitors are charging…
But there’s more to it than just pricing your services competitively.
Every company will have different needs, different expenses, and different goals.
And just because you are priced more or less than the plumbing company down the road doesn’t guarantee whether you will or won’t be successful in your business.
A strong, well thought out pricing structure paired with equally strong marketing tactics is what will ultimately ensure your success and overall profitability.
Plus, you can’t assume that your competition has even done their due diligence when it comes to their pricing!
They might be hemorrhaging money without even realizing it…
Because they failed to account for their basic business expenses and priced their services solely on the plumbing company that was down the road from them when they started their business!
Things to consider when pricing your jobs:
Pricing is an extremely subjective science, and you have to find what works for you and your business based on your expenses, needs, and financial goals.
But if you are looking for a basic pricing strategy…
Here you go:
Pricing Strategy:
9. Accounting, Bookkeeping, and Invoicing
As a business owner, you will need to wear a lot of hats.
Which means that your skills cannot stop at being a great plumber!
In addition to knowing (or learning) a thing or two about sales and marketing…
You’re also going to be responsible for learning how to manage your plumbing business’s finances.
So add bookkeeping and account to your list of skills to learn!
While I highly recommend outsourcing the majority of your bookkeeping and accounting to professionals as soon as possible…
That doesn’t exempt you from a basic understanding of your profit and loss statement, and balancing your books every month!
You are still the owner of the business, and you need to understand what’s going on.
So learn your bookkeeping systems backwards and forwards…
That way when you do hire a bookkeeper, it won’t sound like they’re speaking a foreign language when you sit down for a meeting to prepare your taxes!
The best way to get started with business bookkeeping is to invest in a basic accounting software such as:
In addition to a bookkeeping software for your business, you may also want to explore an invoicing software as well.
Even though your bookkeeping and accounting software may include an invoicing system…
You might find that the more tailored options of a specific invoicing system will suit your needs and your clients’ needs better.
Many invoicing softwares will allow your clients to pay on the spot when a plumbing job has been completed via a tablet device.
It then emails your client immediately with the signed invoice, and makes the entire system run really smoothly.
The benefit to collecting payment before leaving the job ensures that you aren’t having to chase down difficult customers who are either avoiding paying their invoice…
Or are simply forgetful!
Whether done intentionally or unintentionally, clients that haven’t paid can really mess with your budget and bookkeeping…
Plus you’ll waste valuable time making phone calls and sending reminder emails to get that invoice closed out.
Pros and Cons
of starting a plumbing business
Pros
“Plumbing” by itself is an extremely broad term! The beauty of this industry is that there is so much potential to specialize. And when you niche down with your plumbing company, it also opens the door to scaling your business. This is because your niche will help to build your reputation in the industry, and the better your reputation, the more you can grow!
It doesn’t matter if the world is facing a pandemic or a recession… If a pipe bursts, a plumber is getting a phone call! This is a major advantage to the plumbing industry, as the security that comes with knowing your business is recession proof is truly priceless.
This point tags along with the idea of being recession proof. When your business provides a service that is integral within a modern society… You better believe it’s going to be lucrative! The modern world cannot imagine functioning without running water and a flushing toilet. And because of this, you’re in for some big paychecks as a plumbing company.
Cons
If you haven’t picked up on this from the article so far… You can’t just wake up one day and decide to start a plumbing company! Well, you can, but you will have a long education journey ahead of you. Typically, you’re looking at 5-8 years of education and application before you will be ready to launch your own plumbing business. This educational period is the largest barrier to entry when it comes to the plumbing industry.
Eventually you may reach a point where you can step back from the day-to-day duties of running your plumbing company, but this will take years. In the beginning, you will most likely be heavily involved in the physical labor, as well as the behind-the-scenes of running the business. And even though you might be the owner, your income will still be attached to your hours for the foreseeable future. Owning a large plumbing company can set you up for long term passive income… But be prepared for it to take multiple years of grinding and hustling to reach this point.
With any industry where the profit margins are high, the competition will be fierce. After all, everyone else also wants a piece of the plumbing pie! Be ready to serve your customers with excellence, work hard to build your reputation, and hustle to beat out your competition.
One of the biggest barriers to entry when it comes to any business model are the startup costs required. With the plumbing business, your equipment is going to be one of the most expensive startup costs you will face. Do your research thoroughly before you jump into this, and view your equipment as a long term investment.
Starting a Plumbing Business Can be Profitable, If You Know This First:
Ultimately, starting a plumbing company can be extremely lucrative.
The largest barrier to entry when it comes to the plumbing industry is the education requirements.
Hopefully, if you’re exploring the possibility of running your own plumbing business, then you’ve potentially already completed your time as a plumbing apprentice and journeyman.
If not, you’ve got a long road ahead of you before starting your own company is going to be realistic.
The beauty of the plumbing industry is that it’s not going anywhere.
At least as far as first world countries are concerned…
Running water, flushing toilets, and functioning showers are a household staple.
It doesn’t matter if the world is undergoing a massive recession, or living in a thriving economy…
If a pipe bursts, or toilet clogs, you’re in business.
Which is what makes this business model so appealing to many aspiring business owners.
However, simply because the plumbing industry is a recession proof necessity…
Doesn’t mean you won’t face challenges.
There are A LOT of other plumbing companies out there that are in this business for the same reasons that you probably are.
Which means that your work is going to be cut out for you when it comes to gaining new business and rising above the noise of your competition to stand out.
I cannot stress enough the importance of a strong lead generation strategy for your plumbing company.
Targeted lead generation can literally be the difference between having a thriving plumbing business five years from now…
Or shutting down.
While there is some debate regarding the failure rate of small businesses, it’s safe to say that between 30-50% of small businesses will fail within the first five years.
And what is the most basic need that a small business has?
The need for new leads coming in.
Luckily for you, you’re in the right place.
When I quit my job over six years ago now to take my shot at online business, I explored everything from affiliate marketing to drop shipping.
But lead generation was the business model that changed everything for me.
It took me from barely being able to pay my bills at my old job, to making well over 50K per month in passive income in less than five years!
And anyone (including you) can learn the skills of local lead generation for their business.
Online lead generation harnesses the localization capabilities of Google, alongside targeted SEO strategies to supply a steady stream of new leads for your business….
Practically on auto pilot.
So if you want help with lead generation for your plumbing business...
