Plumbing Business Plan Template [Updated 2024]

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Plumbing Business Plan Template

If you want to start a successful plumbing business or expand your existing plumbing business, you need a business plan.

Fortunately, you’re in the right place. Our team has helped develop over 100,000 business plans over the past 20 years, including thousands of plumbing business plans.

The following plumbing business plan template and example gives you the key elements you must include in your plan. In our experience speaking with lenders and investors, the template is organized in the precise format they want.

You can download our Ultimate Business Plan Template (including a full, customizable financial model) to your computer here.
 

Example Business Plan For Plumbing Businesses

I. Executive Summary

Business Overview

[Company Name] is a new residential plumbing business located in [location]. We are committed to providing the highest quality plumbing services in the area and creating connections with customers that last a lifetime. Some of the services we provide include clearing clogged drains, repairing and replacing faucets and sinks, installing and maintaining sump pumps and water heaters, and providing emergency services. We are [location]’s friendly neighborhood plumbers who can tackle any plumbing concern that our customers have.

Services

[Company Name] provides a variety of residential plumbing services to the homes and apartment buildings of [location]. These services include, but are not limited to:

  • Clogged drains
  • Faucet and sink repair and replacement
  • Sewer and septic conversion
  • Sewer inspections
  • Garbage disposal repair
  • Sump pump installation and maintenance
  • Water heater repair and installation
  • Water treatment
  • Emergency services

Customer Focus

[Company Name] will primarily serve the residents and homeowners of [location] and the surrounding area. The demographics of these customers are as follows:

  • 92,021 residents
  • 39% married
  • 32% with children under 18
  • 55% homeowners
  • Median age of 41

These demographics serve our company well. With such a large population of homeowners, many residents will need a local plumber to keep their plumbing fixtures and sewer systems intact. [Company Name] can provide homeowners with any routine or emergency plumbing services they need.

Management Team

[Company Name] is led by [Founder’s Name] who has been a plumber for [X] years. Throughout his career, he has performed a variety of plumbing services for hundreds of customers living in the [location] area. He has conducted much of this work for other plumbing companies and is now eager to utilize his experience and connections for his own business.

Though he has never run his own business, [Founder’s Name] has worked in the industry long enough to gain an in-depth knowledge of the operations (e.g., running day-to-day operations) and the business (e.g., staffing, marketing, etc.) sides of the industry. He also already has a starting customer base that he served while working for other plumbing companies.

Success Factors

[Company Name] is uniquely qualified to succeed due to the following reasons:

  • The company will be providing a valuable service for homeowners who are in need of plumbing services.
  • [Founder’s Name] has a track record of success in the plumbing industry and already has a loyal client base.
  • [Company Name] will provide high-quality plumbing for a moderate price.

Financial Highlights

[Company Name] is currently seeking $470,000 to launch. Specifically, these funds will be used as follows:

  • Store design/build: $150,000
  • Vehicle purchase and maintenance: $50,000
  • Equipment and initial supplies: $150,000
  • Working capital: $120,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Top line projections over the next five years are as follows:

Financial SummaryFY 1FY 2FY 3FY 4FY 5
Revenue$560,401 $782,152 $1,069,331 $1,379,434 $1,699,644
Total Expenses$328,233 $391,429 $552,149 $696,577 $776,687
EBITDA$232,168 $390,722 $517,182 $682,858 $922,956
Depreciation$7,000 $7,000 $7,000 $7,000 $7,000
EBIT$225,168 $383,722 $510,182 $675,858 $915,956
Interest$6,016 $5,264 $4,512 $3,760 $3,008
Pre Tax Income$219,152 $378,458 $505,670 $672,098 $912,948
Income Tax Expense$76,703 $132,460 $176,985 $235,234 $319,532
Net Income$142,449 $245,998 $328,686 $436,864 $593,416
Net Profit Margin25%31%31%32%35%

 

II. Company Overview

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Who is [Company Name]?

[Company Name] is a new residential plumbing business located in [location]. We are committed to providing the highest quality plumbing services in the area and creating connections with customers that last a lifetime. Some of the services we provide include clearing clogged drains, repairing and replacing faucets and sinks, installing and maintaining sump pumps and water heaters, and providing emergency services. We are [location]’s friendly neighborhood plumbers who can tackle any plumbing concern that our customers have.

[Company Name] is led by [Founder’s Name], who has been a plumber for [X] years. He has spent his career working for a variety of local plumbing businesses, including some of [Company Name]’s direct competitors. Now with years of experience under his belt and a loyal client base, [Founder’s Name] is ready to create his own business and hire highly skilled plumbers at his side.

[Company Name]’s History

[Founder’s Name] has spent the past year researching what it takes to create his own business and expand on his client base. He has analyzed the costs, market, demographics, and local competition. [Founder’s Name] has compiled enough information to develop his business plan in order to approach investors.

After completing his research, [Founder’s Name] incorporated [Company Name] on [date of incorporation] as an S-corporation. The business is currently being run out of [Founder’s Name]’s home, but once the lease on [Company Name]’s office location is finalized, all operations will be run from there. He currently uses his personal vehicle to drive to clients’ homes but will purchase a van that will be used specifically for the business.

Since incorporation, the company has achieved the following milestones:

  • Found a commercial space and signed a Letter of Intent to lease it.
  • Developed the company’s name, logo, and website located at [website].
  • Planned the suite of services to be offered.
  • Determined equipment, supplies, and materials needed.
  • Begun recruiting key employees and experienced plumbers.

[Company Name]’s Products/Services

[Company Name] provides a variety of residential plumbing services to the homes and apartment buildings of [location]. These services include, but are not limited to:

  • Clogged drains
  • Faucet and sink repair and replacement
  • Sewer and septic conversion
  • Sewer inspections
  • Garbage disposal repair
  • Sump pump installation and maintenance
  • Water heater repair and installation
  • Water treatment
  • Emergency services

 

III. Industry Analysis

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

As long as buildings have indoor plumbing, there will be a demand for plumbers. Plumbers are essential workers who help to maintain the plumbing and sewer systems in homes, commercial buildings, and across cities. Without their tools, skills, and expertise, the modern world would not have the intricate and complex plumbing system that keeps civilization running.

Therefore, the demand for plumbers remains strong and continues to grow. According to IBISWorld, the plumber industry has grown 2.3% per year over the past five years, and that growth is expected to continue for the foreseeable future. This growth shows that the industry has promise and that it is a good time to start a new plumbing business.

 

IV. Customer Analysis

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Demographic Profile of Target Market

[Company Name] will serve the community residents of [location] and its surrounding areas.

The area we service is suburban, with 55% owning homes. A large portion of these homes are decades old, so they need constant maintenance on their plumbing fixtures. This means a sizable portion of the local population will require our services at some point.

Customer Segmentation

[Company Name] will primarily target the following three customer segments:

  • Homeowners: We will primarily market our services to new and veteran homeowners who need a friendly plumber to help them with all their plumbing needs. [Company Name] will market itself as a convenient option that can provide multiple services, so they don’t need to call multiple plumbers for help.
  • Residents 55 and older: Residents who are near their golden years usually don’t have the time, energy, or ability to keep their house in good repair. When they have major plumbing projects to tackle, they need an experienced plumber who is on-call and provides quick and friendly services. We will market our outstanding customer service to show that we are the best business for all their plumbing needs.
  • Landlords/Property management companies: Companies and individuals who rent out homes and small multi-family complexes need on-call plumbers they can trust. Our team has the experience and skill to handle these projects and can be over soon after an emergency occurs.

 

V. Competitive Analysis

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Direct & Indirect Competitors

The following plumbing companies operate within a 10-mile radius of [Company Name], thus providing either direct or indirect competition:

Emergency Plumbers, Inc
Emergency Plumbers, Inc is one of the top plumbing services for people who experience a plumbing emergency. They are on-call 24/7 and can dispatch a plumber in as little as a few minutes. So whether your sump pump isn’t working during a storm or you have no hot water, Emergency Plumbers will be there shortly to fix the problem.

Though Emergency Plumbers will continue to thrive, the company does not offer routine maintenance and repair services. They strictly focus on emergency situations. Therefore, they will not be a major competitor for most of our business.

Mr. Smith Plumbing
Mr. Smith Plumbing has been a major competitor nationwide for decades and has a very recognizable brand. The company offers a wide variety of plumbing services from routine maintenance and repairs to emergency services. When plumbing issues occur, many people think of Mr. Smith Plumbing first.

Though Mr. Smith Plumbing will continue to thrive, the company lacks affordable pricing and good customer service, which prevents customers from coming back. [Company Name] will have far more affordable services and aim to create lasting connections with customers.

Plumbing And More LLC
Established in 2005, Plumbing And More LLC set out to be the best local plumbing business around. Customers can expect high-quality plumbing work paired with excellent customer service. Plumbing and More’s most popular services include water pressure checks, water heater maintenance and repair, and sump pump maintenance.

Though Plumbing And More LLC will continue to thrive, the company has received numerous complaints that have tarnished its reputation in recent years. Therefore, it is no longer seen as the friendly neighborhood plumbing business it once was. This is an excellent opportunity for [Company Name] to fill this role.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. Those advantages include:

  • Customer-Focus: [Company Name]’s plumbers provide the highest quality customer service focused on transparency, communication, and responsiveness throughout the process, from the initial inquiry to the follow-up once the project is completed.
  • Management: [Founder’s Name] has been extremely successful working in the plumbing industry and will be able to use his previous experience to help clients with whatever they need. His unique qualifications will serve customers in a much more sophisticated manner than many of [Company Name]’s competitors.
  • Relationships: Having lived and worked in the community for decades, [Founder’s Name] knows many of the local residents and has already established a loyal clientele from his years working for other competitors. These relationships will provide the company’s initial clientele and help our business through word-of-mouth marketing.

 

VI. Marketing Plan

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.
[Company Name] seeks to position itself as a high-quality, friendly, and convenient plumbing business. Clients can expect to receive the best plumbing services from skilled professionals as well as top-tier customer service.

The [Company Name] Brand

The [Company Name] brand will focus on the company’s unique value proposition:

  • Client-focused plumbing services, where the company’s interests are aligned with the customer.
  • Service is built on long-term relationships and personal attention.
  • Professional industrial experience in a small business setting.

Promotions Strategy

[Company Name] expects its target market to be individuals within a 10-mile radius of its location. [Company Name]’s promotion strategy to reach these potential customers includes:

Referrals
[Company Name] understands that the best promotion comes from satisfied customers. The company will encourage its clients to refer other individuals by providing discounts on future services for every new client produced. This strategy will increase in effectiveness over time.

Website/SEO
[Company Name] will invest in developing a professional website that displays all of the services offered by the company. It will also invest in SEO so that the company’s website will appear at the top of search engine results.

Social Media
[Company Name] will create the company’s social media accounts and invest in ads on all social media platforms. It will use targeted marketing to appeal to the target demographic.

Publications
[Company Name] will advertise its services in key local publications, including newspapers and area magazines. Additionally, the company will print brochures and place them in specific locations frequented by target individuals.

Direct Mail
[Company Name] will blanket neighborhoods in the area with direct mail pieces. These pieces will provide general information on [Company Name], its services, and promotional discounts.

Billboards
[Company Name] will secure a billboard in the area that captures the attention of residents. The billboard will draw attention to the new business and its service offerings.

Pricing Strategy

[Company Name]’s pricing will be estimated on a project basis. The pricing will be determined by the equipment and tools needed and the amount of labor required to finish the job. Pricing will be moderate and less expensive than our competitors, but more expensive than lower-quality, efficiency-driven plumbing businesses.

 

VII. Operations Plan

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Functional Roles

[Company Name] will need to fulfill the following functional roles to execute its business plan and ensure the company’s success:

Service Functions

  • Plumbing services, including maintenance, repairs, and installations
  • Customer service
  • Scheduling of plumbing services
  • Quoting and invoice creation
  • Equipment maintenance and upkeep
  • Purchasing of equipment and tools

Administrative Functions

  • Social media management
  • Website management
  • Bookkeeping
  • Marketing
  • Hiring and training staff
  • Maintenance functions
  • Other general administrative functions

Milestones

The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:

DateMilestone
[Date 1]Finalize lease agreement
[Date 2]Design and build out [Company Name]
[Date 3]Hire and train initial staff
[Date 4]Kickoff of promotional campaign
[Date 5]Launch [Company Name]
[Date 6]Reach break-even

 

VIII. Management Team

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Management Team Members

[Company Name] is led by [Founder’s Name] who has been a plumber for [X] years. Throughout his career, he has performed a variety of plumbing services for hundreds of customers living in the [location] area. He has conducted much of this work for other plumbing companies and is now eager to utilize his experience and connections for his own business.

Though he has never run his own business, [Founder’s Name] has worked in the industry long enough to gain an in-depth knowledge of the operations (e.g., running day-to-day operations) and the business (e.g., staffing, marketing, etc.) sides of the industry. He also already has a starting customer base that he served while working for other plumbing companies.

Hiring Plan

[Founder’s Name] will serve as the Owner and Manager of [Company Name]. In order to launch, he needs to hire the following personnel:

  • Assistant Managers (1 to start)
  • Administrative Staff (1 to start)
  • Plumbers (2 to start)

 

IX. Financial Plan

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Revenue and Cost Drivers

[Company Name]’s revenue will primarily come from providing plumbing services to local homeowners. Pricing will be determined by the services required, equipment and tools needed, and scope of the project.

The main cost drivers for [Company Name] will be labor expenses, marketing, and lease for the office space.

Capital Requirements and Use of Funds

[Company Name] is currently seeking $470,000 to launch. The funds will be used for capital expenditures, office build-out, hiring initial employees, marketing expenses, and working capital.

Specifically, these funds will be used as follows:

  • Store design/build: $150,000
  • Vehicle purchase and maintenance: $50,000
  • Equipment and initial supplies: $150,000
  • Working capital: $120,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Key Assumptions

The following table reflects the key revenue and cost assumptions made in the financial model:

Number of ClientsAverage
FY 1100
FY 2120
FY 3150
FY 4200
FY 5225

5 Year Annual Income Statement

Year 1Year 2Year 3Year 4Year 5
Revenues
Product/Service A$151,200 $333,396 $367,569 $405,245 $446,783
Product/Service B$100,800 $222,264 $245,046 $270,163 $297,855
Total Revenues$252,000 $555,660 $612,615 $675,408 $744,638
Expenses & Costs
Cost of goods sold$57,960 $122,245 $122,523 $128,328 $134,035
Lease$60,000 $61,500 $63,038 $64,613 $66,229
Marketing$20,000 $25,000 $25,000 $25,000 $25,000
Salaries$133,890 $204,030 $224,943 $236,190 $248,000
Other Expenses$3,500 $4,000 $4,500 $5,000 $5,500
Total Expenses & Costs$271,850 $412,775 $435,504 $454,131 $473,263
EBITDA($19,850)$142,885 $177,112 $221,277 $271,374
Depreciation$36,960 $36,960 $36,960 $36,960 $36,960
EBIT($56,810)$105,925 $140,152 $184,317 $234,414
Interest$23,621 $20,668 $17,716 $14,763 $11,810
PRETAX INCOME($80,431)$85,257 $122,436 $169,554 $222,604
Net Operating Loss($80,431)($80,431)$0$0$0
Income Tax Expense$0$1,689 $42,853 $59,344 $77,911
NET INCOME($80,431)$83,568 $79,583 $110,210 $144,693
Net Profit Margin (%)-15.00%13.00%16.30%19.40%

5 Year Annual Balance Sheet

Year 1Year 2Year 3Year 4Year 5
ASSETS
Cash$16,710 $90,188 $158,957 $258,570 $392,389
Accounts receivable$0$0$0$0$0
Inventory$21,000 $23,153 $25,526 $28,142 $31,027
Total Current Assets$37,710 $113,340 $184,482 $286,712 $423,416
Fixed assets$246,450 $246,450 $246,450 $246,450 $246,450
Depreciation$36,960 $73,920 $110,880 $147,840 $184,800
Net fixed assets$209,490 $172,530 $135,570 $98,610 $61,650
TOTAL ASSETS$247,200 $285,870 $320,052 $385,322 $485,066
LIABILITIES & EQUITY
Debt$317,971 $272,546 $227,122 $181,698 $136,273
Accounts payable$9,660 $10,187 $10,210 $10,694 $11,170
Total Liabilities$327,631 $282,733 $237,332 $192,391 $147,443
Share Capital$0$0$0$0$0
Retained earnings($80,431)$3,137 $82,720 $192,930 $337,623
Total Equity($80,431)$3,137 $82,720 $192,930 $337,623
TOTAL LIABILITIES & EQUITY$247,200 $285,870 $320,052 $385,322 $485,066

5 Year Annual Cash Flow Statement

Year 1Year 2Year 3Year 4Year 5
CASH FLOW FROM OPERATIONS
Net Income (Loss)($80,431)$83,568 $79,583 $110,210 $144,693
Change in working capital($11,340)($1,625)($2,350)($2,133)($2,409)
Depreciation$36,960 $36,960 $36,960 $36,960 $36,960
Net Cash Flow from Operations($54,811)$118,902 $114,193 $145,037 $179,244
CASH FLOW FROM INVESTMENTS
Investment($246,450)$0$0$0$0
Net Cash Flow from Investments($246,450)$0$0$0$0
CASH FLOW FROM FINANCING
Cash from equity$0$0$0$0$0
Cash from debt$317,971 ($45,424)($45,424)($45,424)($45,424)
Net Cash Flow from Financing$317,971 ($45,424)($45,424)($45,424)($45,424)
SUMMARY
Net Cash Flow$16,710 $73,478 $68,769 $99,613 $133,819
Cash at Beginning of Period$0$16,710 $90,188 $158,957 $258,570
Cash at End of Period$16,710 $90,188 $158,957 $258,570 $392,389

 

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.