All around our homes and places of business, there is one form of plumbing job or the other done. From fittings in the kitchen, to the bathroom, toilet and what have you. Plumbing is one profession that have come to stay. Over the years there have been various evolutions on how the business is run. This is no wonder more and more people are delving into the path of business.
The Plumber Supply business has to do with the distribution of plumbing products in large quantity to plumbing companies and Contractors. You would be amazed at the number of clients and profit that you are able to make in this line of business, as it is one venture that promises good profit. The plumbing supply business is such that requires quite a number of products.
Plumbing products in this category includes; bath tubs, bath sinks, toilets, tiles and stones, kitchen sinks and faucets. This business is a very lucrative business, if you can supply the products at a slightly cheaper price from what other suppliers are selling. It is worthy to note that there is competition but you are able to surpass when you do your homework well.
For you to pull things off here and stand on the right footing in this business, you would need the capital that is required to start this kind of business. This is a capital intensive venture, since you will be supplying in bulk quantity to various contractors and plumbing business owners. You would also need to find manufacturers that will supply you with quality plumbing products at a very cheap prize, without delay on your orders.
Here are tips on how you start your own plumbing supply business.
Starting a Plumbing Supply Company – Business Plan Template
1. Develop a Business Plan
It is difficult for a business venture to succeed without a well defined business plan. You have to write a comprehensive business plan. Vital details that should be added include; onwhat scale will you business start? Will it be a very big supply company or a medium scale supply business?
How much capital will you estimate to be enough to start the business- putting into considerations all expenses, including renting of a warehouse, buying the products and transportation fare of shipping it from the manufacturer to your warehouse? All these questions will help you as a framework for writing a business plan.
2. Obtain a Business License
You are required to obtain a business license before you start and run a business in the United States. So, the next step to take after you have written down your business plan is to apply for a business license. You can visit www.business.usa.gov to check the requirements for your State, and if you reside in other parts of the world, you may check with the appropriate quarters in your location.
Also, you can apply for an Employee Identification Number (EIN), if you will hire employees for your business; The EIN also allows you to apply for government contracts. Also visit the IRS department in your State or their website to apply for a Tax Identification Number (TIN). These licenses will permit you run your business with no legal issue.
3. Raise Capital for Business
This business is averagely capital intensive since you will be buying in bulk supply from various manufacturers. If you can start with your personal savings, it will be for good. However, if not; you will need to source for capital to start the business, while you pay part in bits when you start making supplies.
Some of the best ways to source for capital is by applying for a loan from the bank. Bear in mind that bank loans come with interest, so you have to work with your account manager to workout a repayment scheme that will not affect the financial stream of your business.
4. Lease a Warehouse
The next step is to lease a Warehouse. You need to get a warehouse before the products arrive, and the breath, width and height of your warehouse will be determined by the quantity of products you will store in them.
Another factor you need to consider, is how safe the warehouse is? You don’t need a warehouse that robbers can easily break into and cart away with your products. Also, be sure that the lease agreement should be a long term one that has a term for renewal for a long time.
5. Source for Suppliers
You need to source for a manufacturer that will supply you bulk products at a price that will enable you make profits after you minus expenses you made for logistics. The question therefore, might be where to find such suppliers? The first step is to make a list of all plumbing products you wish to sell, then you search for companies that manufacture such products. You can use the phone directory to search out for Companies in your State. Another option is to use the internet to search out for manufacturing Companies in other places.
6. Search for Buyers
This is the final and very important step in your business; you need to source for buyers who are looking for bulk suppliers of plumbing products. Your target should be Plumbing Companies and Contractors. Make a list of Plumbing and Contracting Companies in your area, and contact them of your supply business. You can offer to sell at a cheaper price if they order within a stipulated period.
There you have it. The basic aspect of plumbing supply, including things you need to start this business and steps you need to start the business. If you can build a good customer base, you can make good Return on Investment from this business.