How To Start A Heating & Plumbing Business – The Easy 10-Step Guide
Running your own heating and plumbing business can be an incredibly rewarding (and lucrative) career choice. You’ll finally be able to do things your way, take on the jobs you want, and enjoy complete flexibility.
But annoyingly, and as you’ll already know, there’s a lot more involved with running a business. A big chunk of that comes in the initial setup stage:
How do you set your prices? Where do you find customers? Limited company or sole tradership? How do you handle your own accounts?
These are all perfectly valid questions that we’re going to answer in this comprehensive guide so you can start a successful heating & plumbing business of your own.
Keep reading or jump ahead here:
Why it’s a great time to start a heating business
The UK currently has a shortage of gas engineers. According to one study, they’re the fourth most in-demand trades.
If you’re already a trained gas engineer, how is this relevant news for you?
It means that it’s a great time to start a heating & plumbing business. There will be no shortage of jobs for you to find, and there will be plenty of opportunity for growth.
There are still millions of homes with newly-fitted gas boilers, and the Government’s plans don’t mean a blanket ban on them just yet. Plus, with heat pumps being pushed as a replacement, you could easily start working with those too.
Read more here: https://gasengineersoftware.co.uk/blog/why-the-uk-needs-more-gas-engineers/
Taking the first steps…
The majority of heating and plumbing business owners worked as an employee for several years before starting their own heating & plumbing business.
Even if you know you want to set up a business, these first few years are crucial for a few key reasons:
- They help you gain confidence working in the industry with a bit more of a safety net in place.
- Gas engineers use this time to find their niche — often with a focus on installations or servicing and maintenance.
- It’s a great opportunity to learn how a business is run. This goes both ways, with the things you like and want to copy, and the things you don’t like and want to change.
Perhaps most importantly, your employment is a great springboard for jumping into the self employed world. Many gas engineers will do some smaller jobs on the side for friends, family, and other connections. These jobs are easier to get, come with a bit less pressure, and can form the foundations of your customer list later on.
Then, when you set up your business, you can try to negotiate with your ex-employer to offer your services on a sub-contractor basis. Many will be understanding, and you may even be able to negotiate a day rate for doing some continued work while you settle into things.
1. Set some goals
Everyone has their own reasons for starting a business — these are your personal goals.
Your business goals, on the other hand, are what you strive towards to achieve this personal goal.
Both of these are important to have, and while they’ll most likely evolve as your business grows, they’ll help you keep track of how the business is performing and make sure it’s heading in the right direction.
Read more about setting business and personal goals here.
2. Create a plan for your business [+ Free Checklist]
It’s incredibly hard to wing a successful business. Having a plan, even if it’s a simple one, will help you stay on track.
All your work should contribute in some way or another to your business goals and utilise the strategies set out in your plan. Having this overarching framework in place helps you succeed in the long-term as you do your day-to-day work, and reduces time wasted on wild goose chases.
Here’s the kind of things you should know before you set out on your journey:
- A list of services
- A detailed pricing policy
- Insurance policies
- How many & how big your competitors are
- Marketing & advertising plan
We’ve put together a quick business checklist you can download and tick off as you go along.
Download it here:
3. Register your business
What do I need?
To register your business, you’ll need:
- A director (yourself)
- A business name
- A registered office address (this can be your home address to begin with)
- A few other pieces of basic information
Limited company, or sole tradership?
Both of these are viable options for a heating and plumbing business.
Generally, those starting out should look at a sole tradership. These are much simpler to set up and have fewer accounting responsibilities as you are classified as self-employed.
See for more information: https://www.gov.uk/set-up-sole-trader
As the business grows, you could look into turning it into a limited company. In doing so, you become an employee of your company. This comes with a little bit of increased complexity, but also means you can be more tax efficient and are not personally liable for any debts the business could incur.
How do I even do it?
Registering a heating & plumbing business in the UK isn’t as complicated as it sounds. The whole process can be done in less than 24 hours with just some basic information, and you’ll receive a certificate of incorporation when it’s all done.
To incorporate your business, simply click on the link below and enter a few basic details on screen.
https://www.gov.uk/limited-company-formation/register-your-company
4. Get all the right licenses and qualifications
The qualifications you need to start a heating & plumbing business are the same as those needed to work as a gas engineer.
Here is a useful list:
- An NVQ level 3 in plumbing / heating & ventilation / gas / oil
- Which will enable you to join the Gas Safe Register
OR…
- A gas MLP (Managed Learning Programme)
- Valid ACS (Accredited Certification Scheme)
- A Core Gas Safety (CCN1) certificate
Additionally, you may find these useful to have (albeit not a requirement):
- OFTEC registration (if you want to work on oil or on off-grid heating appliances)
- MCS certification (useful if you plan on working with heat pumps)
Useful links:
5. Buy some quality tools and equipment
If you’ve worked as an employee, you will likely have had company-issued tools. This is your opportunity to pick and choose the ones you prefer. Remember that, if you can, invest in quality tools that are a joy to use and will last.
Make sure you have the following:
- A flue gas analyser (read our blog for the best, cheapest, and other analyser tips).
- A vehicle (ideally a van, but you can get away with a car when you’re starting out)
- A lock box for your tools
- Inventory – pipes and other common spare parts
- A toolbag
- Radiator keys
Read our full guide on the most useful tools and apps for gas engineers:
https://gasengineersoftware.co.uk/blog/essential-gas-engineer-tools-apps/
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How to quote jobs
If you want to win jobs, you’ll need to know how to put together good quotes. Follow this guide to learn more.
8. Lay out an effective workflow
The first year especially comes with a lot to get used to — filling out quotes, invoices, filing away gas certificates, keeping customer details in place, and so on.
Rather than figuring out a good workflow as you go along, you’ll save hours by setting things up properly at the beginning using modern apps and software.
There are many great options out there, but we’d shamelessly plug Gas Engineer Software for it being specifically designed for heating & plumbing companies. Here’s why:
- You’ll save hours with paperwork every week (auto-generated invoices, quick-to-fill certs, etc.)
- It’ll keep copies of every invoice and payment for easy accounting, as well as other records. Read more.
- Customer service becomes much easier
- Everything you need to run your business is kept in one, easy-to-use app with great support
Handling your first tax bill
Strangely enough, your first tax bill as a business will be the worst. This is because in the UK, you need to pay both a 12-month balancing payments (for your first year of work) plus a 6-month payment on account (for the first half of the year ahead).
As you go through the year, make sure that you have money for this first tax bill set aside. Click here to read 5 tax tips for heating businesses.
What to aim for:
As your business grows, you can start looking at hiring new engineers and admin staff, exploring other ways of finding work, and improving the efficiency of your work.
As a new heating & plumbing business owner, your life is made easier with the right software and tools. Come find out what benefits a specialised app like Gas Engineer Software offers by clicking here or starting a free trial:
Gas Engineer Software is 100% free to try.
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