TABLE OF CONTENT
INTRODUCTION…………………………………………………………………..1
EXECUTIVE SUMMARY………………………………………………………….2
REGULATION……………………………………………………………………....3
MATERIALS…………………………………………………………………………4
KEY TO SUCCESS…………………………………………………………………..5
STARTING UP A PLUMBING BUSINESS………………………………………..6
PLUMBING BUSINESS PLAN……………………………………………………..7
OBJECTIVES…………………………………………………………………………8
SAMPLE OF COMPANY’S PLUMBING PLAN…………………………………..9
START UP REQUIREMENTS……………………………………………………...10
START UP FUNDING………………………………………………………………..11
MARKET ANALYSIS SUMMARY…………………………………………………12
SERVICE BUSINESS ANALYSIS……………………………………………………13
COMPETITION & BUYING PATTERNS…………………………………………..14
RISK INVOLVED………………………………………………………………………15
REFERENCES…………………………………………………………………………..16

plumbing INTRODUCTION Plumbing (from the Latin plum bum for lead as pipes were once made from lead) is the skilled trade of working with pipes, tubing and plumbing fixtures for drinking water systems and the drainage of waste. A plumber is someone who installs or repairs piping systems, plumbing fixtures and equipment such as water heaters. The plumbing industry is a basic and substantial part of every developed economy due to the need for clean water, and proper collection and transport of wastes.
Plumbing also refers to a system of pipes and fixtures installed in a building for the distribution of potable water and the removal of waterborne wastes. Plumbing is usually distinguished from water and sewage systems, in that a plumbing system serves one building, while water and sewage systems serve a group of buildings or a city. The name of my small plumbing business is water tubes plumbing co. it is located at obehie, very close to veritas university, it provides homes with the best of plumbing services, with a great range of new equipment.

Executive Summary
Water Tubes Plumbing is a Eugene-based plumbing company that has chosen residential new homes as their niche. Water Tubes will be able to handle any service request for plumbing of volume home builds or custom new homes. By concentrating on a specific segment of the market, Water Tubes will be able to rapidly gain market share demonstrating their proficiency and professionalism in serving a specific market niche.
Water Tubes will leverage their competitive edges of professionalism and trim quality by properly training all of their employees and impress customers who are used to the lackadaisical attitude of most plumbers. Water Tubes will have a total of four employees and will reach profitability by month eight.

Objectives
The objectives for the first three years of operation include:
1. To develop a company whose primary goal is to exceed customer's expectations.
2. To increase sales so in four to five years Don can hire another master plumber.
3. To create a sustainable business, surviving off its own cash flow. Mission
Water Tubes Plumbing's mission is to provide the finest new house plumbing installation. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers. Keys to Success
The keys to success are to provide the customer with a fair price and outstanding service.

Materials Water systems of ancient times relied on gravity for the supply of water, using pipes or channels usually made of clay, lead, bamboo or stone. Present-day water-supply systems use a network of high-pressure pumps, and pipes are now made of copper, brass, plastic, or other nontoxic material. Present-day drain and vent lines are made of plastic, steel, cast-iron, and lead. Lead is not used in modern water-supply piping due to its toxicity. The 'straight' sections of plumbing systems are of pipe or tube. A pipe is typically formed via casting or welding, where a tube is made through extrusion. Pipe normally has thicker walls and may be threaded or welded, where tubing is thinner-walled and requires special joining techniques such as 'brazing', 'compression fitting', 'crimping', or for plastics, 'solvent welding'.
Fittings and valves
In addition to the straight pipe or tubing, many fittings are required in plumbing systems, such as valves, elbows, tees, and unions. The piping and plumbing fittings and valves articles discuss these features further. Fixtures
Plumbing fixtures are designed for the end-users. Some examples of fixtures include water closets (also known as toilets), urinals, bidets, showers, bathtubs, utility and kitchen sinks, drinking fountains, ice makers, humidifiers, air washers, fountains, and eye wash stations. Equipment
Plumbing equipment, not present in all systems, include, for example, water meters, pumps, expansion tanks, backflow preventers, filters, water softeners, water heaters, heat exchangers, gauges, and control systems.
Now there is equipment that is technologically advanced and helps plumbers fix problems without the usual hassles. For example, plumbers use video cameras for inspections of hidden leaks or problems, they use hydro jets, and high pressure hydraulic pumps connected to steel cables for trench-less sewer line replacement.
Systems
Copper piping system in a building with in tumescent fire stop being installed by an insulator, Vancouver, British Columbia, Canada.
The major categories of plumbing systems or subsystems are:
• Potable cold and hot water supply
• Traps, drains, and vents
• Septic systems
• Rainwater, surface, and subsurface water drainage
• Fuel gas piping
For their environmental benefit and sizable energy savings hot water heat recycling units are growing in use throughout the residential building sectors. Further ecological concern has seen increasing interest in grey-water recovery and treatment systems.
Self-leveling silicone fire stop installation in mechanical service penetration in 2 hour rated concrete floor.
Fire stopping is required where mechanical pent rants traverse fire-resistance rated wall and floor assemblies, or membranes thereof. This work is usually done worldwide by the insulation trade and/or specialty fire stop sub-contractors. Regulation Much of the plumbing work in populated areas is regulated by government or quasi-government agencies due to the direct impact on the public's health, safety, and welfare. Plumbing installation and repair work on residences and other buildings generally must be done according to plumbing and building codes to protect the inhabitants of the buildings and to ensure safe, quality construction to future buyers. If permits are required for work, plumbing contractors typically secure them from the authorities on behalf of home or building owners. In the United Kingdom the professional body is the newly Chartered Institute of Plumbing and Heating Engineering (educational charity status) and it is true that the trade still remains virtually ungoverned; there are no systems in place to monitor or control the activities of unqualified plumbers or those home owners who choose to undertake installation and maintenance works themselves, despite the health and safety issues which arise from such works when they are undertaken incorrectly - see Health Aspects of Plumbing (HAP) published jointly by the World Health Organization(WHO) [8] and the World Plumbing Council (WPC) [6]. WPC has subsequently appointed a representative to the World Health Organization to take forward various projects related to Health Aspects of Plumbing.

Starting up a plumbing business Well, if you are starting your own business involving skilled workers working with pipes, tubing and plumbing fixtures for water systems and drainage, then you should know exactly where your plumber is. If you wish to launch your own plumbing business, the first thing that you should decide on is what kind of plumbing business you wish to start: service-oriented or product-oriented. If you are a business entrepreneur and you want to start a product-oriented plumbing business, you basically act as a supplier of pipes and tubing paraphernalia. You can also sell tools and other equipments to supplement your plumbing supply business. On the other hand, a service-oriented plumbing business can go two ways: a plumbing and heating business, and a fix-‘er-upper. The former is a business arrangement where you set up the necessary components of plumbing, heating and drainage in any architectural structure. The latter, on the other hand, is the most common type of small business plumbing type. The fix-‘er-upper (from the term fix her up) is when a house owner calls up a plumber to fix a broken sink or a clogged toilet, etc. This kind of business can still be categorized further as contractor and small business plumbing. For purposes of discussion in this article, we will detail what business entrepreneurs need to do in order to start a fix-‘er-upper plumbing business.
Obviously, you would need a plumber for this trade, preferably a skilled plumber who can install and repair piping systems, plumbing fixtures and water heaters. If you are a contractor, you need to know where to find reliable and trustworthy plumbers. Try to hire ones that have the most experience and are able to do quick work with minimal supervision. If you have inexperienced workers, it would be best to apprentice them with your veteran plumbers on their first few runs. As a contractor, it is your duty to buy the equipments and tools your workers need, get them to your clients when called and bill your clients accordingly. The plumbing business is a lucrative trade, if and when your plumbers can get to a job on time.
Starting a plumbing business like this entails registering your business, acquiring a plumbing business license and even maybe acquiring plumbing business software so that you can bill your clients immediately and precisely. Transportation is important. The other type of fix-‘er-upper plumbing business involves just you, provided of course that you are a plumber. As a micro-entrepreneur, you can start this business from home; you don’t even need a complicated business set up as long as you’ve got the skills and tools to do the job. A successful business of this sort still needs to be registered and licensed, so don’t overlook that.
Your business success is actually dependent on two things: how well you do your job (that your clients will seek and refer your services often) and how well you advertise your trade. As a plumbing business owner, you know that your services will not have a running start unless people know that you are a plumber, and that your services are available.
Plumbing business cards are essential. If you can’t afford these as of yet, putting up flyers and home-made posters can do most of the advertising for you. However, nothing beats word-of-mouth advertising. So tell your friends and family members that you are starting a plumbing business and ask them to help refer you to potential clients.

Know the local requirements
In addition to understanding the general guidelines for setting up any small business, you must explore the specific professional, legal and regulatory guidelines that are required to set up and operate a plumbing business in your locality.
Licensing
Professional licensing and certification requirements must be obtained to start and operate a plumbing business. Each state may have a different name for its licensing agency, but typically they have a name like The Department of Business & Professional Regulation or the Construction Industry Licensing Board.
Seek assistance from local business development providers
You can also seek guidance and assistance from organizations in your area such as the local chapter of score or a local Small Business Development Center.
Seek assistance from trade groups Before setting up a plumbing contracting business, find out if there is a local chapter of a national trade association like the Plumbing Heating Cooling Contractors Association (see link below) who can provide you with information about the requirements of setting up a plumbing business in your area. After being established, a membership in such organizations can provide you access to business and management training, along with professional development resources.

Marketing a plumbing business It takes time and effort to grow any small business. As is the case with most service industries, plumbers tend to find most of their customers through word of mouth. The key to great word of mouth referrals is to provide great service at a reasonable cost to your current customers. Traditionally, telephone Yellow Page listings are important to developing business for residential repair and maintenance business. Internet advertising, especially search advertising, is becoming more and more important to any professional service provider like plumbers. You need to know how to make sure that potential customers find your company's name when they search for a plumber in your vicinity.

Franchise and cooperative marketing plumbing businesses
Rather than create a totally new plumbing business, some plumbers consider buying a franchise of a national or regional franchise plumbing company. (Be sure to read the SmallBusiness.com Guide to Franchising for important suggestions and background on things you should explore when considering becoming a franchisee.) In some locations, independent contractors may enter into joint marketing cooperatives that allow them to gain referrals and other marketing services in exchange for a recurring fee or commission.

Plumbing Business Plan
If you are to open A Plumbing Business you will need to do a lot of things! We have no doubt that if you are to open A Plumbing Business you will understand everything about the Plumbing Business but we can help you with a simple checklist of the things that every business has to do.
• Decide whether to buy an existing business, start a new business, or buy a franchise.
• Decide on the form of business: partnership, limited company, corporation or sole proprietorship.
• Estimate how much cash you will need to start your business advertising, fixtures, decorating, inventory, fees, working capital, etc. and estimate your monthly expenses.
• If the business will be incorporated you must decide where.
• If you will form a partnership, draft the partnership agreement.
• Check local laws in regard to zoning, permits, and licenses your business may require.
• Obtain a minute book, corporate seal, and stock certificates.
• Conduct a market analysis to determine the viability of your enterprise.
• Select and reserve a corporate name (first and second choices).
• Select officers and directors (names, addresses, and Social Security numbers).
• Develop marketing, advertising, and public relations plans.
• Develop a capitalization / borrowing / credit / debt service plan and cash flow plan Objectives
The objectives for the first three years of operation include:
1. To develop a company whose primary goal is to exceed customer's expectations.
2. To increase sales so in four to five years Don can hire another master plumber.
To create a sustainable business, surviving off its own cash flow. Profitably carry out quality Hydraulic projects within Australia whilst:
• Producing workmanship in excess of our clients requirements.
• Completing projects earlier than the contracted completion dates.
• Ensuring the health and safety of employees and the general public.
• Minimising disturbance to and effects on the environment.
1. • Providing secure and satisfying employment for all employees. A sample of a company’s plumbing plan
Company Summary
Water Tubes Plumbing, soon to be located in Eugene, OR, will offer plumbing services for residential new houses as well as custom new houses. The business will be based out of Don Roto's house. Water Tubes will have four employees by the end of the year. Start-up Summary
Water Tubes will require the following equipment and materials:
• Two trucks (used) fitted with a pipe rack on top.
• Assorted pipes (different diameters and materials).
• Assorted fittings.
• A 30 gallon bucket to store fittings.
• Pipe wrenches.
• Reciprocating saw.
• Circular saw.
• Whole hog (high torque right angle drill).
• Cordless screw gun.
• Propane torch.
• Cast iron pipe cutter.
• Extension cords.
• Pipe dope (Teflon tape in paste form).
• Computer with CD-RW, printer, Microsoft Office, QuickBooks Pro.
• Desk, chair, and filling cabinet, and assorted stationary.
• Mobile phone.
Please note that the items which are considered assets to be used for more than a year will be labeled long-term assets and will be depreciated using G.A.A.P. approved straight-line depreciation method.

Start-up requirements/ start up expenses

Legal $200
Stationery etc. $150
Brochures $0
Consultants $0
Insurance $0
Rent $0
Research and Development $0
Expensed Equipment $0
Other $0
Total Start-up Expenses $350 Start-up Assets
Cash Required $19,650
Other Current Assets $0
Long-term Assets $24,000
Total Assets $43,650 Total Requirements $44,000

Start-up Funding Start-up Expenses to Fund $350
Start-up Assets to Fund $43,650
Total Funding Required $44,000 Assets
Non-cash Assets from Start-up $24,000
Cash Requirements from Start-up $19,650
Additional Cash Raised $0
Cash Balance on Starting Date $19,650
Total Assets $43,650

Liabilities and Capital Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0 Capital Planned Investment
Don $24,000
Friends and family $20,000
Other $0
Additional Investment Requirement $0
Total Planned Investment $44,000 Loss at Start-up (Start-up Expenses) ($350)
Total Capital $43,650

Total Capital and Liabilities $43,650 Total Funding $44,000

Market Analysis Summary
Water Tubes will be focusing on a specific niche in the plumbing market, new homes. The company will target both volume builders of new homes as well as customer builders.
Through a combination of networking activities and advertisements, Water Tubes will increase their visibility among home builders allowing them to gain market share. Market Segmentation
Water Tubes will target two distinct segments in the plumbing market:
1. Volume residential home builders. These builders are creating many different homes, often at the same time, often on the same plot of land. These builders are in need of a professional, well priced, reliable plumber for all of their residential new builds. This is an attractive market niche because the plumbing jobs are clean, numerous, and reasonably easy to do. Once a builder has found a plumbing company that they are happy with, a long-term relationship is often established, ensuring a constant flow of future jobs.
2. Custom home builders. These builders are in need of a plumbing company for their custom projects. This segment is attractive because the margins are better than typical build jobs and the projects can be fun to do because it requires creativity and thoughtfulness to accomplish the task within the established designed constraints. This target market makes up a smaller percentage of Water Tubes forecasted sales.

Market Analysis Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Volume home builder 7% 120 128 137 147 157 6.95%
Custom home builder 7% 45 48 51 55 59 7.01%
Total 6.97% 165 176 188 202 216 6.97% Target Market Segment Strategy The plumbing market (excluding direct to the consumer jobs) is a highly networked industry where everyone knows everyone and jobs are won or loss by who you know. With this in mind, Don will work hard to establish himself as an experienced, professional plumber who is concentrating on the residential new builds market. This will be done in part through networking with all home builders. The networking will be an important method to increase visibility of Water Tubes because most home builders are always looking for professional, high-quality plumbers. It is advantageous for Water Tubes to position themselves as solely working with the residential new build market because it is attractive to builders to form a relationship with a plumber that is specializing on the new build market and not trying to do a little of everything. Water Tubes will be marketing themselves with an advertising campaign in the local home builder’s journal. Service Business Analysis The plumbing industry is state regulated. The state regulates the industry through a licensing process based upon the Universal Building Code. The code is state specific and is a comprehensive code for all building issues. There are three skill levels of plumbers. The first is the apprentice who is basically a skilled laborer. In Eugene, apprentices earn from $8-$12 an hour depending on experience level. The next level is a journeymen. To achieve the journeymen license you must past the state journeymen test. Journeymen in Eugene typically earn from approximately $18 an hour. The last step in the plumbing hierarchy is a master plumber. A master plumber is a journeymen with more than 10 years experience and their earning potential is from $35-$50 per hour.
In order to do work in the state, it is required that a deposit is made into the workers compensation fund of $4,000 during the first year. This is only for new companies that have no record of revenue, and no record of worker compensation history. After one year of no claims, $1,000 is refunded per year and after five years the entire amount is refunded. In essence, this is acting as a bond for newly formed companies.
The timetable for work in this niche is as follows:
• Two people, one full day, rough-in (plumbing in the floors and concrete).
• Two people, one full day, top-out (plumbing in the walls).
• One person, one full day trim (sections visible to the end-user).
Please note that within the industry ratios' the gross margin for the industry is significantly lower than what is forecasted for Water Tubes. The variance can be explained by the fact that the industry ratios are for repair plumbing as well as new construction. The repair work is more parts intensive and has skewed the gross margin ratio. Competition and Buying Patterns
The plumbing market is quite competitive, and consequently in order to reap decent profits, large quantity of work must be done. Competitors can be broken down into three groups:
1. Chains: these plumbing companies are a franchise or a division of a larger chain. The chains typically do repair work instead of new building construction, but sometimes they do work with new builds.
2. Private companies: these companies are typically local. In order to generate sufficient revenue, they will offer a wide range of services.
3. Large commercial & residential companies: these are the local Starbucks of the plumbing world and will bid on any type of plumbing project, whether commercial or residential, repair or new builds. The majority of jobs that this competitor will work on is the larger commercial projects, but a getting a contract with a volume home builder would be attractive.
The buying habits of the target segments are based primarily on networking. Once a relationship is established, the builder will typically give the plumber one to two jobs to display their work before any type of long-term contract/relationship is developed.

Risk of starting up a small plumbing business

Poor Estimates
1. A major risk in business is failing to charge customers accurately for the work that is completed. Many business owners may not be comfortable charging customers what the services are worth, which limits their income. High Costs
2. Because most plumbing products are petroleum-based, product costs may vary widely based on oil prices. Also, smaller businesses may not be able to command volume discounts from suppliers, which increases their costs.
Accidents and Injuries
3. Most home improvement industry businesses are required to carry liability insurance and a guaranty by bond. This ensures that work site accidents or injuries are not 100 percent owed by the business owner.
Inadequate Labor
4. Because plumbing is a specialized industry, finding educated and experienced employees may be difficult for a business owner. An inadequate labor force may limit the number of jobs a plumbing company can secure.
Competition
5. Competitors are always a concern in business ownership. The number of competitors and quality of their operations should be reviewed to determine if a niche market is available or if the market demand is being met by current suppliers.

References
1. Plumbing: the Arteries of Civilization, Modern Marvels video series, The History Channel, AAE-42223, A&E Television, 1996
2. Teresi et al. 2002
3. Copper Tube Handbook, the Copper Development Association, New York, USA, 2006
4. Uniform Plumbing Code, IAPMO
5. International Plumbing Code, ICC