Starting a plumbing service business from scratch

Double D2

I'm looking for one or two DEFINITVE books that will explain everything you need to know PRIOR to starting up a plumbing service business. Just a little background before you start making suggestions.
My background: I ran the office for a mechanical contractor (up to 19 people in field at one time)for 20 years with the great assistance of two secretaries. Job duties included estimating, bid prep, material/labor pricing for bid and service jobs, negotiating various insurance coverages (business & medical), purchasing material/tools/vehicles, hiring & firing, etc., etc. Did some side work IN THE FIELD just to prove to myself that this pencil pusher could crank a wrench, solder and glue, and have everything installed per code. Became self employed for four years making my living in the field (found out my stress was greatly reduced by a little physical labor). Went to work for a competitor who had called me several times over that four year period, and continue to work for him today.
My potential plumbing service partner curently runs, and will continue to run, a successful new home construction plumbing business (currently 9 employeees including himself) that he purchased from his father. He has a man who runs the office doing all the computerized accounting functions including taxes, billing, and payroll, but also does material purchasing among other duties.
My proposed partner is interested in plumbing service in conjunction with his new construction work. He wants a guide to explain everything from costs associated with start up to what to stock , what/how to promote our products/services, best ways to utilize all these new home homeowners' addresses he currently has on file, etc. etc. He understands that they should be separate businesses (separate profit centers), not necessarily separate locations, or a separate office person to begin with.
So guys and gals, any book suggestions? Any other business suggestions on the plumbing service business topic?
Feel free to email me direct, too, concerning above requests via CC: (ie. carbon copy on your New Message replies. NO FORWARDS ACCEPTED. Too great a chance for spreading unwanted viruses. I summarily delete all FORWARDs.

Thanks,
Double D

ScottMP

go to

Books and More at the left of the screen and start shopping.

"Just add H2O"

"Where did the money go ?"

And many others.

Other than that its the school of Hard knocks.


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jim lockard

Ellen

Try WWW.Barebonesbiz.com Ellen Rohr's site she has what you need.

Bill Nye

Try Al Levi's

book operating power and Ellen Rohr How much should I charge and maybe Leigh Frances How to run your Business so it doesn't run you.

http://www.heatinghelp.com/shopcart/product.cfm?category=2-79

http://www.heatinghelp.com/shopcart/product.cfm?category=2-79


All books in Dan's Books and more

Mad Dog

Frank Blau's Books (whether you decide to flat rate or not)

Ellen Rohr's Where did the $$$$ go, and how much should I charge. Al Levi's Operating Power series, and last but not least, Dan Holohan's Screwing Up, 666 ways to lose $$ on your next heating job. There is NO definitive book, you need to read all of them. I have done, just that, started from scratch - first generation. You can email me anytime you'd like, I've been through the School of hard knocks and lived to tell about it. Mad Dog

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George_10

You should keep a diary

You have a best selling book on your hands. Keep notes and findings on what you go through over the next two years and then you could have a book that would help others trying to do what you want to do.

You don't have to write it, because if you keep good notes, any writer could do it for you. (ghost written) Just an idea that wuld make you a little money in the future.

Double D2

Starting a plumbing service business from scratch

I appreciate the five professionals who took the time to reply to my request. George had a most interesting suggestion of keeping a diary...maybe Mad Dog can grab that concept (for his retirement nestegg) since he built his business from the ground up! I already own some of Holohan's and Rohr's books, and am familiar with Blau's writings, but I don't own Operating Power...yet. About 10 - 15 years ago, I attended an all day seminar put on by Maurice Maio; made me a beleiver in flat rate pricing. Do all of you flat rate, or some of you still do T & M billing...like my current employer? If you flat rate, whose package do you use (and customized to your needs), or did you develop your own? Do you use van's, box truck/van's, or pick up trucks with utility body's for your service vehicles? How about your computer software accounting package - what do you currently use? Which software have you tried, but crap canned, and why did you go to something else? Your interest and feedback are appreciated.

Double D

Joel_3

flatrate

We are going flat rate it is the only way to get our rates high enough that we will bw able to atract and keep good service techs . i've struggled with this for 5 years. We recently joined E.A.I. and thier help with transitioning to flat rate and with lots of other things is excellent. Don't assume that your potential partner knows what he's doing even if he has a full time accountant. My accountant was great for taxes but that's it. She doesn't understand money or buisness at all. When asking her how I should analyze my biusness, With the cash or accrual method all she could do was give me a blank stare. I would love to find a true cost accounting firm to help but they don't want to work with smaller companies. That's why you've got to learn it yourself. Numbers cruncher is a great simple program to get you started.

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jim lockard

some Flat

Some Flat rate on the cut and dry stuff T and M on the scary stuff. 10 foot box van/econline van Hate PU's can not crawl in and out all day. Quicken and pocket Quicken. J.Lockard

Mad Dog

Demand large percentages on contracts

forget the third/third/third thing. Realize that the vast majority of General contractors are no damned good, will hold up your money, and sometimes run out all together. On service, get as much c.o.d as possible. If possible encourage a break for c.o.d and fast payment. If you've got a place to park it, box trucks are the way to go. Mad Dog

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hr

A well thought out plan

both a personal and business plan, would be the best first step. Where are you headed, and how are you going to get there?

Make sure your family understands the commitment of self employment, also.

Some good ideas here.

http://www.pmmag.com/CDA/ArticleInformation/features/BNP__Features__Item/0,2379,117933,00.html

hot rod

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Randy Tibbits

Or you can

do it like I did. Things were slowing down at work " 130 mile round trip on a good day". I was getting married. I went into work And told the boss I was going into business. He wished me luck and said the little town I'm from realy needed somebody. First thing I did was get liability insurance. I had a pickup and tools. The next thing I was off and running. The upside I had no real bills, no kids and a new wife. The learning curve was straight up. I had a meeting with a nearby supplier and set up a cod account. I started reading everything on business. I paid very very dearly for my education. If I could do it all over, I would get a business education first and then hire a plumber. It took quite a few years to see good results. I would not reccomend my method. Now people look and say "you had all the lucky breaks" ya right.

Tom Meyer

Starting a business

Get the business basics down cold first. Have your accountant, software, business procedure, billing, estimating, pricing structure, suppliers, insurance, fed, state, local licenses, forms, tax numbers and all that FIRST. Next, have a plan. Where is your service market? What jobs do you want? What jobs do you need to pass on? Think about this first. Have a plan.

Many of the fellows who started in the contracting business the same time as I did went belly up because they used the supply houses' credit system, but didn't collect on their accounts like they should have. The bills came due so quickly, but the cash wasn't being collected to pay the bills. Curtains for the business. Know how your cash flow is going to work. I set mine up COD at all my suppliers (for years) and it FORCED me to make sure I was doing my invoicing and collections.

If you're married and your wife is involved in the business, I highly recommend you read Dan Holohan's article "My Parner, My Spouse" in Plumbing & Mechanical (Dec 2003).

Once you get rolling, keep reviewing your business. Be a tough critic. Write things down that you like and the things you don't like about what's going on. Fix the "Don't Like" list as soon as you can.

Network. Go to Wetheads. Meet people in the business. Keep a Rolodex. Give help when you can. Get help when you need it.

Keep up your learning. Never stop finding new ways. Ask questions. Grow and develop your expertise as much as you want to grow and develop your business.

It's going to be a challenging and sometimes frustrating first few years.

Good luck. We've all been there.


Tom Meyer
Senior Designer/Trainer
Precision Hydronics Corp
www.precisionhydronics.com

Kal Row

and dont forget books and software..

from www.hydronicpros.com

ps you cant do this by yourself and your biggest headache will be help, so pay, pay attention, and reward, and for god's sake, dont hire family and friends - for every exception there are ten horror stories – and if perchance you do, then always, always, always, consider it charity, and expect the least from them, so you wont be aggravated

heatboy

All of this is fine advice.

And it should be taken to heart. Being a good mechanic, technician or installer is the easiest thing you'll do. We are all very good at that.

Kwowing the costs of YOUR business is imparative. Don't worry what the other guy down the block is charging. In my area, most guys are in the $60 to $70 range. I'm over $100 per man hour. Why? Because I have to be.

The most important thing you need to know is how to deal with people confidently and professionally. All of the above stuff means absolutely nothing if your clients don't like and trust you. You must be perceived as a professional if you want to make it in business. You develop a relationship with your clients. It's up to you as to whether it be a good relationship or a bad one. A good relationship will generate the reputation you are looking for. A bad relationship will be your undoing. I shop for clients just like people shop for contractors.

Never compromise your principles to "get the job".

hb

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Kal Row

acctually....

To have a business with someone answering the phone (even if it’s your wife – trust me, she will want compensation – and will get it!!!) and a truck on the road with insurance and all that, is about 96 per hour (divided for a 40 hr week – at least in nyc), and realistically even a “5 minute” job, will blow an hour of your time, that’s why plumbers wont take even a small job for less than $300 besides parts, they simply cant afford to – it’s the nature of the beast – they are not ripping you off

John R. Hall

Double D

I've started research on my next book which will contain responses from 100 contractors on how they started and what pitfalls to watch out for. I am still looking for contributions. E-mail me for a questionnaire if you are interested in taking part.

Joel_3

kal

Your absolutely correct kal in my area most companies who figure this out simply no longer do service! they know it's a loosing game. Those on t+m either don't know thier cost and struggle for years, or go out of buisness.

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Paul Pollets

Entrepreneurial Seizures...

Going into business today is incredibly difficult. Not to mention costly. Chance of success is less than 5% over 3 years. That being said, if you've done the math, got the dough and like Heatboy says...understand the business of contracting, than perhaps you'll go for it. Can you take off the "technician blinders" and see the real world? Or are you looking through rose colored glasses? Good luck!!

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