Starting a plumbing business the smart way means keeping your day job while building a client base through weekend side work - don't quit until you've completed at least 12 paying jobs and saved $13,000-$50,000 for licensing, insurance, and equipment. The key to profitability isn't just getting licensed: it's switching from hourly rates to flat-rate pricing that rewards your expertise, turning a 3-hour water heater job from $300 into $1,200.
Starting a plumbing business doesn’t have to cost a lot of money:
- Run weekend side jobs while employed
- Get licensed and insured
- Choose a niche to minimize equipment costs
- Buy used equipment
- Set up automated admin systems so you can take more jobs
- Build your reputation with simple marketing
- Transition to full-time
Total startup cost: $10,000-$25,000 for a solo operation.
Most “how to start a plumbing business” guides tell you to quit, take massive loans, and hope customers appear. That's a $100k+ bet. This guide shows the low-risk path and how to build income before you need it.
Stage 1: Run the "keep your day job" test (optional, but recommended)
Don't quit yet. Before you file paperwork or spend a dollar, answer one question: is plumbing a good business to start in your area?
What makes plumbing a solid bet:
The pros:
- Recession-resistant demand (toilets break in good times and bad)
- High hourly rates ($75–$150+ depending on market and specialty)
- Bureau of Labor Statistics projects 6% job growth through 2032 – faster than average [SOURCE NEEDED: bls.gov/ooh/... link]
- Aging housing stock means steady repair work
- Doesn’t cost much to get customers once established (referrals do most of the work)
The cons:
- Physical toll adds up over decades (knees, back, shoulders)
- Licensing requirements vary by state and take time
- Startup costs aren't zero (insurance, truck, tools, permits)
- You're on call – emergencies don't respect weekends
- Slow seasons exist in some markets (e.g., new construction slows in winter)
Before you assume there is demand for plumbing services in your area, run the Saturday test: can you find three paying jobs for Saturday mornings in the next month? Post in local Facebook groups ("Licensed plumber available for side work – water heaters, leak repairs, drain cleaning"), tell friends you're available, check Nextdoor for requests for plumbers.
If you can't find three jobs in 30 days while you still have a W-2, you'll struggle to find 20 jobs a month when it's your only income.
If you currently work as a plumber for someone else, check your employment contract for non-compete clauses before you take a side job. Some employers restrict side work or ban you from serving their customers for a set period after you leave. You don't want to land your first big client only to get sued by your old boss. If there's a non-compete, talk to a lawyer first.
The math is simple. Quit today with no plan, and you're betting your rent money that customers will appear. Prove demand first while keeping your paycheck, and you're only risking a few Saturdays.
One-page plumbing business plan
Now write down your plan for starting a plumbing business and going from side jobs to full-time income. This isn't a 40-page document for investors — you’re making a plan to replace your income, not raise millions of dollars.
Your plumbing business plan should fit on one page and answers six questions:
1. What's my niche? Pick one thing: water heater installs, leak detection, drain cleaning, sewer camera inspections. You'll add services later. Starting narrow lets you buy less equipment upfront and charge specialist rates. (Stage 3 explains how to pick a profitable niche and what equipment it requires.)
2. What income do I need to replace my W-2? If you make $60,000 per year at your day job, that's $5,000 per month. Factor in health insurance costs (you'll lose your employer plan) and self-employment taxes (add 15.3%). Your target is closer to $6,500–$7,000 per month. Write that number down.
3. How many jobs does that require? If your average job pays $400 and your target is $6,500/month, you need 16–17 jobs per month. That's 4 jobs per week. Is that realistic in your market? If not, raise your prices or expand your service area.
4. When do I go full-time? Set a concrete milestone. Example: "When I've booked 12 paying side jobs and have $10,000 saved for startup costs, I'll give two weeks' notice." Don't quit because you're tired of your boss. Quit because the numbers say you're ready.
5. What equipment do I need? List the tools and vehicle required for your niche. (Stage 3 and Stage 4 break down startup costs and the "specialist hack" to keep equipment spending low. Come back to this question after you read those sections.)
6. How will I find customers? List three specific tactics. Example: Google Local Services Ads, Google Business Profile, and referrals from side-job customers. (Stage 5 explains what actually works and what's a waste of money. Read that section first, then come back and fill this in.)
You won't be able to answer all six questions right now. As you read the rest of this guide, you'll get the details on licensing costs, pricing strategy, niche selection, and getting clients.
Keep your plumbing business plan somewhere you'll see it every day. Update it as you learn. It’s the document that will help you turn your idea into reality.
Stage 2: Handle the red tape (license and insurance)
You can't legally own your own plumbing company until you clear two separate hurdles: your trade license and your business structure. People confuse these constantly, so the difference matters.
Think of it like a driver's license (proves you can drive) vs. car registration (proves you legally own a car).
Trade license
This proves you know plumbing. It's issued by your state's plumbing board or contractor licensing agency. Most states require either a journeyman or master plumber license. Journeyman licenses typically need 4–5 years of apprenticeship plus an exam. Master licenses need additional years as a journeyman and another exam. You can't skip this. Working without a trade license is illegal in most states and can result in fines or criminal charges.
Business license
This is your legal structure (LLC, sole proprietorship, etc.) and comes from your city or county clerk. It has nothing to do with your plumbing skills. It's the paperwork that lets you operate a business entity, open a business bank account, and file taxes correctly. Most plumbers form an LLC to protect personal assets if something goes wrong on a job.
For state-specific plumbing license requirements, check NASCLA (National Association of State Contractors Licensing Agencies) or your state's contractor licensing board. Requirements differ dramatically. In some states, you can pull permits with a journeyman license. In others, you need a master's license to operate independently. Some states require contractors to post a bond (put up money as a guarantee you'll complete work properly). Others don't. [SOURCE NEEDED: nascla.org link]
General liability insurance
This isn't optional. You can't work without it, and customers will ask to see proof before you touch their pipes.
General liability insurance covers property damage and bodily injury. If you flood a basement or a client trips over your toolbox, this pays for it. Expect to pay $500–$1,500 per year for $1 million in coverage for a new solo operation. Shop around – rates vary widely.
Bonding
Some states require a surety bond (typically $10,000–$25,000 in coverage). This protects customers if you don't finish a job or violate contract terms. It's not the same as insurance. You pay a small percentage of the bond amount annually (usually 1–3%).
Workers' comp
Worker’s comp isn’t required if you're solo with no employees. Once you hire someone, even part-time, you need it. Costs vary by state and payroll size.
Confirm your state’s requirements and get insurance quotes for all three of these types of insurance before you launch. Then you'll know exactly how much it will cost per month. Add those numbers to your plumbing business plan.
Stage 3: Plan your plumbing business startup costs and pricing
Most guides tell you that plumbing business startup costs range from $10,000 to $100,000 and leave you to figure out the rest.
The actual breakdown for a bootstrapped, solo plumbing business launch:
Item | Low estimate | High estimate |
Trade license & exams | $200 | $800 |
Business formation (LLC filing) | $50 | $500 |
General liability insurance (year 1) | $500 | $1,500 |
Surety bond (if required) | $100 | $750 |
Used work van (functional, 100k+ miles) | $8,000 | $15,000 |
Essential tools (assumes you own basics) | $1,000 | $3,000 |
Initial marketing (website, business cards) | $200 | $1,000 |
Permits & miscellaneous fees | $300 | $1,000 |
Total | $10,350 | $23,550 |
That's the honest startup range for a solo operation. You're not buying a brand-new ProMaster van with a wrap and a full tool loadout. You're buying a used Chevy Express or Ford Transit with dents and getting to work.
The specialist hack
Don't try to do all types of plumbing on day one. Pick a niche – water heater installs, leak detection, sewer camera inspections, drain cleaning – and buy only the equipment for that niche.
A water heater specialist needs a dolly, basic hand tools, and maybe a tankless-specific kit. That's $2,000 in tools, not $10,000.
Expand into other services when the income you get from this niche grows enough to cover those tool expenses, and repeat.
Niche services also command higher rates. A "general plumber" charges $75–$100 per hour. A water heater specialist charges $150–$250 per install because customers aren't calling around for quotes – they need it done today.
This is how to start a plumbing company without a ton of money upfront — side-job income, one specialty, and minimal equipment.
What a plumbing business income actually looks like
Your plumbing business income depends on three things: how many jobs you complete, what you charge, and what you keep after expenses.
A solo plumber completing 4 jobs per week at $400 average brings in $6,400 per month in income. Subtract 30–40% for materials, insurance, fuel, and other business costs, and you're left with $3,800–$4,500 per month in take-home income. That's $45,600–$54,000 per year – what you actually keep.
Specialists earn more. A water heater installer charging $1,200 per job and completing 3 jobs per week brings in $14,400 per month. After expenses (materials cost more, but jobs are faster), take-home is $8,600–$10,100 per month – over $100,000 per year.
The difference isn't luck. It's pricing strategy and service focus.
Pricing strategy: flat rate beats hourly
Hourly billing punishes efficiency. The faster you work, the less you earn.
Flat-rate pricing flips that. You quote the job upfront (e.g., $350 to replace a toilet, $1,200 to install a standard 50-gallon water heater), and the customer knows exactly what they'll pay. If the job takes you two hours instead of four, you just doubled your effective hourly rate.
Flat-rate pricing also protects you from scope creep. Quote hourly and hit an unexpected issue, and the customer watches the clock and panics. Quote flat-rate with a buffer built in, and you're covered.
Flat-rate pricing formula: estimate the hours, add 20% for the unexpected, then multiply by your target hourly rate plus materials.
(Estimated hours + 20%) x (hourly rate) + materials = flat rate price
For a $100/hour target, a 3-hour job becomes: (3 hours × 1.2) × $100 + materials = $360 + materials.
Don't be the cheapest option. Be the option that shows up on time and finishes the job correctly.
Get paid on recept
Net-30 payment terms (invoice today, get paid in 30 days) destroy new businesses. You pay for materials today. You pay for gas today. You wait 30 days to get paid. By month three, you're broke even if you're booked solid.
Get paid on receipt. Accept credit cards, Venmo, checks on-site – whatever works. If a customer asks for Net-30, they're either a commercial client (different game) or they're a red flag. Residential customers can pay when the work is done.
This is why your invoicing system matters. Professional invoices with clear payment terms and easy payment options get you paid faster (more on this in Stage 4). Handwritten receipts on carbon paper make customers forget to pay you.
Stage 4: Buy equipment and set up auto admin systems
You don't need a $60,000 wrapped van to look professional. You need a vehicle that starts, holds your tools, and doesn't leak oil in the customer's driveway.
Similarly, you don’t need expensive software with email list-building and marketing capabilities from day one. You need one tool to help you invoice, schedule and book jobs.
Plumbing business equipment: what you need to start
Buy used, wrap later. A used cargo van with 100,000–150,000 miles costs $8,000–$15,000 and runs for years with basic maintenance. Vinyl wraps cost $2,000–$4,000. Put that money toward insurance and tools instead. Once you're booked three weeks out, wrap the van. Until then, slap magnetic door signs ($50) on it and get to work.
Function beats flash. Customers care that you showed up on time and fixed the problem. They don't care whether your van is Instagram-ready.
Buy tools as jobs require them. You already own the basics (wrenches, pipe cutters, torch, etc.). For your first five jobs, buy only what those specific jobs require. Need a sewer camera for a $500 inspection job? Rent it for $100 and buy it after you've booked three more camera jobs. Don't load up on tools "just in case."
Which tools you need to start your plumbing business and when:
Need now (Day 1) | Buy later (Month 3-6) | Specialty only |
Basic pipe wrenches (10", 14", 18") | Drain snake (75-100 ft) | Sewer camera ($2,000-$8,000) |
Adjustable wrenches | Reciprocating saw | Hydro jetter ($3,000-$15,000) |
Pipe cutters (copper, PVC) | Hole saw kit | Tankless water heater tools |
Propane torch | Multimeter | Backflow testing equipment |
Teflon tape & flux | Pipe threading machine | Commercial-grade tools |
Basic fittings kit | Wet/dry shop vacuum | Specialized gas line tools |
Plumber's putty | Cordless drill with bits | Trenchless repair equipment |
Hand auger (toilet snake) | Level (4-foot) | |
Hacksaw | Pipe locator | |
Flashlight/headlamp | Heavy-duty tarps |
Start with the "Need now" column – these cost $800-$1,500 total and handle 80% of common jobs. Buy the "later" tools only after you've landed jobs that require them.
Specialty tools are big investments. Rent them first — buy only if you're consistently booking that type of work.
Plumbing business admin: look professional and actually get paid
Pen-and-paper invoicing makes you look like an amateur, and it creates cash flow chaos. Customers lose invoices. You forget to follow up. Payments slip through the cracks. [SOURCE NEEDED: resolvepay.com/... link re: cost of manual invoicing]
You need three systems on day one:
- Invoicing – send professional invoices, track payment status, get paid faster
- Scheduling – know where you need to be and when
- Customer tracking – store contact info, job history, and notes for repeat business
You can use separate tools (QuickBooks for invoicing, Google Calendar for scheduling, a spreadsheet for customers), or you can find a single platform that combines invoicing, scheduling, and customer tracking in one system. Durable handles all three in one place – you're not juggling multiple logins or trying to sync data between systems that don't talk to each other. You send invoices from your phone while standing in their driveway, customers can pay immediately, and everything stays organized automatically. One login, one bill, no integration headaches.
The faster you get paid, the faster you can take the next job. The better you track customers, the more repeat business you'll book. Admin isn't glamorous, but it's the difference between a sustainable business and a side hustle that doesn’t grow.
Stage 5: Get your first plumbing business clients (without buying leads)
Most lead generation services don't work well for new plumbing businesses. You'll pay $30–$100 per lead and compete with five other plumbers for the same job. The homeowner picks whoever is cheapest. You lose money.
How to actually get clients when starting a plumbing business:
- Set up a simple website
- Spend $300 per month on Google Local Services Ads
- Create and fill out your Google Business Profile (free)
- Ask customers for reviews
Plumbing business website
If you're not online, customers can't find you when they’re searching “emergency plumber near me” in the middle of the night on their phone. A professional website does three things for your plumbing business: builds trust with homeowners who research before they call, books customers when you're busy on other jobs, and shows up in local search results.
You don't need a $5,000 custom website to look professional. You need clear contact information, photos of your work, customer reviews, and service descriptions. Most importantly, you need it to load fast on mobile phones – 60% of plumbing searches happen on smartphones during emergencies.
Durable's AI website builder creates a professional plumbing website in 30 seconds. Answer three questions about your business, and you get a complete site with contact forms, service pages, and mobile optimization built in. No design skills required, no monthly developer fees, and it integrates with your customer management and invoicing systems automatically.
Google Local Services Ads (LSA)
LSA (also called Google Guaranteed) puts you at the top of search results with a green checkmark badge. Customers see "Google Guaranteed" and trust you immediately. You only pay when someone calls you directly from the ad – no wasted spend on clicks that don't convert.
Setup requires a background check and license verification, but once you're approved, you're competing on equal footing with established companies. Start with a $300-$500 monthly budget – this typically generates 8-15 qualified leads per month for solo operators. Track cost per lead. If you're paying $40 per lead and closing 25% of them at an average job value of $400, you're profitable. [SOURCE NEEDED: support.google.com/localservices/... link re: LSA verification rules]
Google Business Profile (GBP)
If you're not on Google Maps, you don't exist. A complete GBP (formerly Google My Business) listing with photos, hours, services, and regular posts ranks higher than a bare-bones profile.
Set this up before you take your first job. Add photos of your van, your work, and yourself. When you finish jobs, ask customers to leave reviews.
Reviews
Customers trust online reviews more than any ad you'll run. According to BrightLocal, 87% of consumers read online reviews for local businesses, and 79% trust them as much as personal recommendations. [SOURCE NEEDED: brightlocal.com/... link]
After every job, ask for a review. Don't be weird about it. Just say: "If you're happy with the work, I'd appreciate a Google review. It helps me get found by other customers like you." Then text them the direct link to your GBP review page.
Five-star reviews on Google get you more calls than any paid ad. Bad reviews (or no reviews) make you invisible.
How do plumbers get clients after the first few?
Once you're past the startup phase, most of your customers come from three sources:
- Repeat customers – the toilet you fixed last year breaks again
- Referrals – happy customers tell their neighbors
- Organic search – your GBP listing and website rank for "[your city] plumber"
You're not buying leads forever. You're building a reputation that generates inbound calls for free.
Launch your plumbing business this week (not next year)
Starting a plumbing business doesn't begin when you quit your job. It starts the day you prove someone will pay you to fix their sink.
But once those calls start coming in, you'll need professional systems fast – invoicing that gets you paid quickly, a website that builds trust, and a way to track customers without losing them in a stack of business cards.
That's where most new plumbers get stuck. They can fix anything, but the business admin buries them.
Durable's AI-powered platform handles the business side so you can focus on the work. Build a professional website in minutes, send invoices from your phone, and manage customers without the headache. It's built for people who'd rather turn wrenches than wrestle with software.
How to start a plumbing business FAQs
What's the best way to start a plumbing business?
The best approach to starting a plumbing business is the low-risk transition: keep your day job while you get licensed and run weekend side jobs to prove demand. Don't quit until you've booked at least 12 paying jobs and saved startup costs. This lets you build income before you need it, rather than gambling your savings on hope.
How much does it cost to start a plumbing business?
Starting a plumbing business costs between $13,000 and $50,000. The low end covers licensing, insurance, a used work van, and basic tools. The high end includes specialty equipment, comprehensive bonding, and marketing. Most bootstrapped plumbers start for under $20,000 by keeping their day job initially and buying used equipment.
Is plumbing a good business to start?
Plumbing is one of the most stable trades to build a business around. Demand is recession-resistant, licensing requirements create barriers that protect you from competition, and aging infrastructure guarantees decades of steady work. However, it requires significant upfront investment in licensing and insurance, and the physical demands compound over time. If you can validate demand through side jobs before quitting your day job, it's a lower-risk path to business ownership.
How do I get a plumbing license?
Plumbing license requirements vary by state. Most states require 4-5 years of apprenticeship under a licensed Master Plumber, then passing a state exam. Check with your state's contractor licensing board or NASCLA (National Association of State Contractors Licensing Agencies) for exact requirements. Some states allow you to operate with a Journeyman license under supervision, while others require a Master license to run your own business.
Should I price my plumbing services hourly or flat rate?
Flat rate pricing protects your margins and rewards your expertise. When you quote a fixed price for the entire job, customers know exactly what they'll pay upfront, and you earn more as you get faster at common tasks. A water heater replacement that takes you 3 hours at $100/hour earns $300. The same job with flat rate pricing at $1,200 (market standard) earns you $400/hour. Price based on value delivered, not time spent.
Do I need a website to start a plumbing business?
You need an online presence, but it doesn't have to be complicated. At minimum, set up a Google Business Profile so you show up in local search results. A simple website helps you look professional and gives customers a way to learn about your services and contact you. Tools like Durable let you generate a professional site in minutes without design skills, and handle invoicing and customer management in the same platform.
Build your website in 30 seconds