How To Start Your Own Plumbing Business

The Plumbing services industry in Australia is large and was $20.5 billion in 2023. If you're passionate about plumbing and want to start your own company, this guide will walk through how you can start your own plumbing company. It will cover everything from financing your plumbing business to managing its accounting and taxes.

What Is A Plumbing Business? 

Plumbing involves a varying amount of skills around installing, fitting, repairing, and maintaining water systems and pipe systems that exist in a structure. 

Plumbing work can include the installation and maintenance of the following water systems: 

• Toilets 
• Baths 
• Shower. 
• Sinks
• Drains 
• Washing machines
• Dishwashers

To be in the plumbing business you should also have knowledge on: 

1. How to purchase, maintain, and service tools and equipment 
2. How to survey and analyse structures. 
3. How to perform inspections of plumbing and drainage systems. 
4. How to prepare cost estimates and create budget plans. 
5. How to create contracts, take payments from your clients, and provide invoices. 
6. How to keep accurate records of each job, including a brief description of relevant services, the time spent working, the number of contractors present, and the materials used.
7. How to keep your business complies with all health and safety regulations, as well as legal guidelines. 
8. How to create marketing and advertising strategies. 

How To Start A Plumbing Business 

Here are the key steps involved in starting a plumbing business. They cover essential aspects such as setting clear business goals, registering the business, devising a well-structured business plan, and expanding relevant skills. 

1. Setting Your Business Goals 

You must determine your reasoning for wanting to start your own plumbing company. Ask yourself, ‘Why do I want to start my own plumbing company?’. 

There is no wrong answer to this question. Whether you want to become your own boss or grow your income, clarifying your motivations for growing your own business is important. 

Your motivations serve as the foundations for your business. When you devise your business plan, you can revisit your motivations to help you navigate your business toward success. 

2. Create Your Business Plan 

Your plumbing business plan should include the following: 

• Short-term and long-term business goals. 
• How much you intend to charge for each service/hour worked. 
• Financial projections. 
• A cash flow forecast. 
• A sales forecast.
• Growth opportunities. 
• Marketing strategies. 
• Your skills and experience. 

For more information have a look at our guide to writing a business plan. 

3. Get the required licences

Before you start your business you need to make sure you have the required licences to be a plumber in your state or territory. The type of licence needed varies depending on the type of plumbing work you will be doing. To find the licences you will need for your business you can use the Australian Business Licence and Information Services (ABLIS) tool. 

4. Registering Your Plumbing Business 

Now that you have established your motivations, it’s time to register your business. Specifically, you must apply for an ABN (Australian Business Number). If the name of your business is different from your own name then you will also have to register the business name with the Australian Securities and Investments Commission (ASIC). You can do this through the ASIC Connect website. 

5. Financing Your Plumbing Business 

As an independent plumber, a significant portion of your expenditures will go toward vehicle and equipment investment. This can include tools like fittings, inlet valves, pipe cutters, hacksaws, and tools that you’ll need to complete your services to a high standard.  

You can either fund your own business or acquire funds from a third-party. Third-party funding can include business credit cards, crowdfunding or a small business loan. To learn more, have a look at our guide on how to fund a new business. 

6. Marketing Your Business 

You won’t attract customers without making your business visible to prospective customers. 

Here are a few tips to help you market your business. 

• If you haven’t already, build a website for your business. 
• Create social media accounts for your business. 
• Utilise professional photography. 
• Research your competition and find your competitive advantage over your competitors. 

For more information read our guide on how to market your new business. 

7. Accounting & Taxes 

A large part of managing your own business is having the ability to manage your finances. This can be time-consuming so Instead of spending a lot of hours trying to sort out invoices and expense tracking, you should consider using a software tool to help you streamline the process. 

This is where QuickBooks Online enters the picture. 

How QuickBooks Can Help Your New Plumbing Business 

As an independent plumber with a new business, navigating your finances can be a hard task. Given the importance of managing your accounting, especially if you’re new to business ownership, it's important to get it right. 

Fortunately, QuickBooks Online is here to help. By using QuickBooks Online’s accounting software you can create and send professional invoices quickly, having access to a free, downloadable, and customisable template. 

What’s more, when you start to expand your business and consider hiring employees/apprentices, you can use QuickBooks cloud payroll. This payroll feature automates calculations, compliance filings, and more! 

Sign up for QuickBooks Online today and enjoy the benefits of having an effective, easy-to-use accounting software that allows you to focus on growing the business you love.