What to Include in a Plumbing Business Plan [& Free Template]

Plumbers who want to start their own plumbing company need a plumbing business plan. It’s a crucial tool that helps plumbers make informed decisions, set clear goals, secure funding if needed, and navigate the complexities of running a successful plumbing business. It’s essentially a roadmap for startups or existing plumbing companies to achieve long-term success and growth.

To help you design or improve your own plumbing business plan, get started with our free plumbing business plan template. We show you what to include in your business plan and how to write one using a company business plan template specifically designed for the plumbing industry.

Table of Contents

What Is a Business Plan for a Plumbing Business?

Why Should a Plumbing Business Have a Business Plan?

How to Write a Plumbing Business Plan [with Template]

What Is a Business Plan for a Plumbing Business?

A business plan for a plumbing business is a comprehensive document that outlines all aspects of the company’s operations, goals, strategies, and financial projections. It serves as a roadmap for the business owner and potential stakeholders by detailing step by step how the business will be structured, managed, and grown. Both startups and established plumbers use business plans to grow their plumbing companies, apply for funding, or seek financial investors.

A plumbing business plan is also a fluid document that needs adjusting on a regular basis along with your business goals and strategies. It can show you how many leads to generate, how many calls to answer, and what your techs’ average ticket needs to be to generate a certain level of revenue each month.

Why Should a Plumbing Business Have a Business Plan?

Developing a business plan is especially helpful for new plumbing companies, especially if they’re seeking funding from investors to get their small business off the ground. A plumbing company business plan also serves great purpose for an established plumbing business, as the company reflects on goals and updates its business plan throughout the year.

Plumbers, like any other business owners, benefit from a well-thought-out business management plan for two important reasons.

Reason #1: Fundraising purposes

If plumbers seek financing to start their own business or investors to expand into new businesses, a solid business plan is essential. Lenders and investors want to see a detailed financial report, monthly financial statements, balance sheets, a daily operational plan, and sales forecast — just to name a few of the most important documents to include in a business plan.

In short, lenders and investors want to see a detailed plan that demonstrates the business's potential for success and how it intends to use the funds. The main sources of funding for a plumbing business include personal funds, credit cards, bank loans, and investors. Personal savings and bank loans are the most common funding paths for plumbing companies.

Reason #2: Identify business goals and minimize risks

A business plan serves as your company’s blueprint, as it outlines the roadmap for where you want your plumbing business to go and how you plan to get there. By defining your company’s mission, vision, and long-term goals, and identifying ways to measure success, you and your management team can make informed decisions on the best path forward.

Risk management is also a critical component to your business plan. Include details about your competitors, the market, your target audience, and any future obstacles on the horizon, then develop a contingency plan to handle any potential risks or challenges.

How to Write a Plumbing Business Plan [with Template]

A plumbing business plan should be tailored to the specific goals of your plumbing business and provide a realistic and achievable roadmap for its success. To help plumbing contractors know exactly what information to include in a business plan, ServiceTitan created a plumbing company business plan template for you to download and fill in.

>>Download our free plumbing company business plan template.

Here are the key components typically included in a plumbing business plan:

1. Industry analysis 

Begin by assessing the current market trends for the plumbing industry in your area. Who are your customers? What demographics define your target audience? Who are your biggest competitors? What is the market size or market share in your area, and how can you set your plumbing company apart from the rest? Then use your answers to help inform your overall plumbing business strategy.

2. Executive summary

Write your executive summary last, but include it near the top of your business plan as a constant reminder of your overall vision and goals for your plumbing company. Keep it concise with an overview of the entire business plan, including a mission statement, the business goals, target market, competitive advantage, and financial projections for future growth.

3. Company overview

Your business overview provides details about your specific plumbing business. Tell your company’s story, including how it got started and where it plans to go. Explain how your vision, core values, and business philosophy sets you apart from others in the plumbing industry. 

Outline your goals and objectives for the business, and identify specific key performance indicators (KPIs) you plan to monitor as your company grows. Elaborate on your target audience and how you plan to market your services to generate new leads. Identify the strengths and core competencies that make your plumbing company stand out, and demonstrate how your training processes help plumbing techs excel.

4. Products and services

Clearly describe your plumbing company’s pricing structure and what’s included for each plumbing service you offer, including repairs, installations, maintenance, emergency services, and specialized work.

Define the scope of your residential and/or commercial plumbing services and repairs, including clog-clearing, leak inspections, toilet plumbing, faucets, sewer lines, water heaters, sump pumps, new installations, and more. Then, develop creative guarantees for service, repair, and replacement that inspire customers to take notice and highlight any specialized work your plumbers do, such as gasfitting appliances or large drain clearing.

Do you price plumbing jobs by the hour, or offer flat-rate pricing? Include the service rate, add in the travel fee if you charge one, then total the billable amount for every job or service you offer.

ServiceTitan’s integrated pricebook helps plumbing businesses set accurate and profitable pricing every time. Also, Price Insights, available to users of Pricebook Pro, works to calculate the average price for each plumbing service, then shows you how your prices compare to others in your region. You can easily see if your prices are too low or too high, then adjust to keep your profit margins in line.

5. Market analysis

Take a thorough assessment of market trends in your area and analyze key competitors. Where do they shine, and where do they fizzle? How much market share do they control? How do they price their plumbing services? What gaps need to be filled in terms of the type of plumbing services offered or in areas where customers struggle to find a reliable plumber?

Collect and analyze the market data, then strategize ways to outrank your competition on every key metric, from providing online booking capabilities and delivering excellent customer service to quicker response times and fewer callbacks.

6. Customer analysis

Fully research your target audience to gain a complete picture of who your customers are and who you want them to be. Define their demographics, such as age, gender, income level, location, and buying behaviors. If you plan to service residential customers, learn as much as you can about the age of their homes, total assessed value, date last sold, and even the type of plumbing system in use.

Leverage customer experience software to gain even more insight into your customers’ plumbing history, needs, and possible pain points, then train your CSRs and plumbing techs to use our automated customer relationship management (CRM) features to improve their overall performance.

Notable ServiceTitan CRM features include:

Scheduling: Automated scheduling options allow plumbing customers to book jobs at their own convenience, whether by booking directly online or through calls, text, or web chats. 

Detailed customer history: A robust CRM allows CSRs to personalize the customer experience from the start, then collect the necessary information to adequately inform service techs so they arrive fully prepared to do the job.

Text messaging communication: Text appointment reminders and technician bios to communicate with customers the way they prefer. With two-way SMS communication, customers can easily confirm or reschedule appointments, ask questions, or even pay their bill.

Live tracking: No more waiting around for the plumber to arrive! With live tracking features, customers can see the tech’s exact location on a map and know when they’ll arrive.

On-site estimates: With ServiceTitan Mobile, techs can build and display branded, digital estimates with good, better, and best options in just a few taps.  

Financing options: Ease customers’ minds about cost by providing easy financing options on high-dollar plumbing jobs. ServiceTitan offers several options, and customers can apply right from the tech’s mobile device, choose the plan that fits best, and receive instant approval.

7. Marketing and sales plan

Create a detailed plumbing marketing plan for how the business will attract potential customers and retain current ones through branding, pricing strategy, advertising methods, online presence, reputation management, and customer experience.

ServiceTitan’s home services marketing software analyzes your own customer data to come up with solutions to attract, convert, and retain customers. With ServiceTitan’s Marketing Scorecard, you can rank your campaigns by revenue so you know what’s working and what isn’t, and even drill down to see what kind of jobs your ads are producing.

8. Organization and management

Develop a chart that outlines the company’s organizational structure, roles and responsibilities of key team members, resumes of key team members, and the owner's qualifications, licenses, and permits. Include job descriptions and job interview questions so everyone knows your expectations for how the company will be organized and managed.

9. Operational plan

Include information about the day-to-day operations of your plumbing business. Detail your workflow processes, equipment and inventory used, go-to suppliers, and any plumbing partnerships that help you deliver premium service.

The more details you provide here will help to inform the company roadmap for your team, ultimately resulting in improved efficiency, higher productivity, and increased profits.

10. Financial plan

Your plumbing business’s financial plan typically includes startup costs, a 12-month profit-and-loss projection, a cash-flow projection, a projected balance sheet, and a break-even calculation. 

With customized reporting capabilities, ServiceTitan field reporting software helps you stay on top of every aspect of your financial plan, giving you data-driven visibility into the areas where you’re finding success and where you’re not.

Over to You

ServiceTitan’s cloud-based, all-in-one plumbing software gives plumbing business owners the technology they need to do the work efficiently, the data and reporting they need to do it smartly, and a wide array of resources to guide them as they grow toward achieving long-term success.

>>Want to start your own plumbing business or revitalize and grow an established business? Download this plumbing business plan template to get started.