The poor housing and construction markets have contributed to a strong negative effect on plumbing industry. As the economy and residential construction improve in the coming years, it will recover.
Most companies in the industry are small and operate locally.
If you are looking to get into this industry, you must have prior experience and all necessary licenses. You simply cannot enter the industry in any other way.
Before you consider a plumbing business for sale, determine how large your company should be. Most are small and in fact involve just the plumber himself. However, many involve a handful of skilled employees.
You may consider a franchise. You will have all the equipment available, but the cost to buy one is high.
When you first begin your operations, keep in mind the initial challenge is advertising. Get your name out there in every way possible. Advertise on local radio, put up signs, drop off flyers, and target the newspaper and online classifieds.
Contact other contractors in your area who may need your services. Also, be sure to ask customers how they found your company. If they had a positive experience with you, ask them to write a review in online business directories.
After advertising, the next challenge is successfully maintaining your cash flow. Create a sales forecast, cash flow statement, and income statement to make sure you stay aware of the financials. Consider hiring an accountant as soon as you have the necessary funds.
Hire the best employees available and continually review their performance. Provide training and ongoing support in order to keep ahead of the competition.
Always be on the lookout for ways to cut costs. Negotiate deals with any service or product suppliers you work with.
If you've decided to go into business with a partner, be sure to have a written exit strategy. You don't want any lawsuits popping up at an inconvenient time.
If you are thinking about buying a plumbing business, now may not be a bad time. Prices are low and are expected to rise in the future. However, if you are considering selling a plumbing business, you may want to wait until the economy recovers.
About the Author
This Wiki was written by Andy White, CEO of Biz Trader .