Plumbing Company

Words in [brackets] are blanks you fill in with your own details when you adopt this sample in Supreme Plan AI.

Executive Summary

Clearwater Plumbing is a plumbing company serving homes and small businesses in the east side of our city and the nearby suburbs. We repair leaks, clogged drains, water heaters, toilets and fixtures, and we handle larger installation projects like water heater replacements, bathroom and kitchen plumbing and repiping. A homeowner with a plumbing problem wants it fixed fast, fixed right and at a fair price. Many plumbing companies are slow to call back, charge surprise fees or send someone who has to come back a second time. We will win customers by answering quickly, giving a clear price before the work starts and doing the job right the first time. Here is what our numbers show. We expect sales of about $177,000 in Year 1, growing to about $708,500 by Year 5 as we add licensed plumbers and a second vehicle. We expect losses of about $53,000 in Year 1 and $35,700 in Year 2 while we build our customer base, then a profit from Year 3 (about $37,900), growing to about $139,700 by Year 5. We need $136,000 in total. That covers $46,500 in startup costs (a used service van, drain and pipe tools, a camera scope, opening parts, licenses, insurance and advertising) and a cash cushion of about three months of bills. I am putting in $18,000 of my own money, and I am asking for $118,000. The startup costs include a used service van, so I do not need to buy a truck on the first day. I am Jorge Russell, the owner. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Clearwater Plumbing will be a limited liability company (LLC) in Idaho, owned by Jorge Russell. We will work from my home, with the van parked in my driveway and tools stored in a locked shed. What we believe. Show up when we say we will, tell the truth about what is wrong and what it will cost, fix it right the first time and leave the home clean. What we offer:
- Repairs: leaks, clogged drains, running toilets, faucets and fixtures. - Water heater repair and replacement, tank and tankless. - New fixtures, garbage disposals, and kitchen and bathroom plumbing. - Drain cleaning and camera inspections. - Plumbing for small businesses and rental properties. Licenses and insurance. Plumbing is a licensed trade. Most states and many cities require a plumbing license, usually earned through years of work under a licensed plumber and an exam, plus a contractor or business license, a bond and insurance. Our state requires a master plumber license to run a plumbing business, so I will work under my master plumber partner, who will hold the license for the company. I will not take paid plumbing work until the right license is in place, or I will work under a licensed master plumber. We will also carry general liability insurance and commercial auto insurance, and workers' compensation once we hire. Where things stand today. I have worked as a plumber for several years, I have priced a used service van and drain machine, and I have done weekend repair jobs for friends and neighbors.

Problem & Opportunity

Homeowners and landlords near us need a plumber they can count on, and it is hard to find one. 1. Slow to respond. Many plumbers take days to call back, even for a burst pipe. 2. Surprise prices. Customers are often quoted one price on the phone and charged another at the end. 3. Repeat visits. Work that is not done right the first time means a second trip, and a second bill. 4. Unlicensed work. Some cheap options are not licensed or insured, which can be costly if something goes wrong. How we know people want this. Three landlords told me they would hire a reliable plumber for repairs on 12 rental units, and five neighbors asked me for help last winter when their pipes froze.

Products & Services

What we sell. 1. Service calls. A service call is a repair visit: a leak, a clogged drain, a running toilet or a water heater problem. Our plan assumes an average of about $175 per call in Year 1, rising to about $195 by Year 5. Parts and direct costs run about $50 per call. We expect about 600 calls in Year 1 (about 12 a week), growing to about 2,053 calls a year by Year 5. 2. Installation projects. These are larger jobs: replacing a water heater, new fixtures, a bathroom or kitchen rough-in or a repipe. Our plan assumes an average of about $1,200 per project in Year 1, rising to about $1,340. Materials cost about $550 per project. We expect about 60 projects in Year 1, growing to about 230. Our prices. Service call $150 plus parts. Water heater replacement from $1,400. Drain cleaning from $180. Bathroom rough-in from $900. How it works for the customer:
1. A call answered quickly, and a rough idea of the cost before we come. 2. A time window, and a text when the plumber is on the way. 3. A written price for any larger job before work starts, with no surprise fees. 4. A clean finish: the work area left tidy, the repair explained and a warranty on our work. Gross margin, explained. "Gross margin" is the share of each sale left after paying for materials and direct job costs. Our plan shows about 64% in Year 1. That money pays the owner and crew, vehicle costs, insurance and other bills.

Market Analysis

Who will hire us:
- Homeowners who need a repair quickly and want someone they can trust. - Landlords and property managers with rental units. - Small businesses, restaurants and offices. - Home flippers and general contractors who need a reliable plumber. Where we will work. A service area close enough to reach customers fast, starting with four neighborhoods and two nearby towns within 20 minutes of my home. Less driving means more jobs per day. Season. Plumbing is needed all year. Cold snaps cause frozen pipes and very busy weeks, and summer brings water heater and outdoor line work. We keep a few open hours each week for emergency calls. Our plan is careful on purpose. About 12 service calls a week in Year 1 is a pace the owner and one licensed plumber can handle well.

Competitive Landscape

Other choices customers have:
1. Larger plumbing companies. Northside Plumbing (a made-up name) charges about $150 for a service call; known for being fast, but hard to reach on weekends. 2. Solo plumbers and handymen. Often cheaper, but sometimes not licensed or insured, and hard to reach after the job. 3. Doing it yourself. Free, but a mistake can flood a house. How we will win customers: fast replies, honest prices before the work starts, licensed and insured work, tidy jobs and a warranty on our work.

Marketing & Sales Strategy

How people will find us. - A free Google business listing with photos, and a simple website with a phone number that gets answered. - Asking every happy customer for a Google review. - Door hangers, magnets and a lettered van in the neighborhoods we serve. - Relationships with property managers, landlords, real estate agents and home inspectors, who send repeat work. - Paid ads for emergency searches like "plumber near me," once we can answer every call. Marketing budget. About $6,000 a year. The van lettering, business cards and website are paid for from startup costs.

Operations Plan

How the business runs day to day. Calls and jobs. Customers call or book online, and the owner (or an office helper) schedules each job by area and urgency. In Year 1 the owner and one licensed plumber start by working jobs together, then split into two trucks as soon as we can add a second vehicle, by lease or a used purchase, from the first profits. We grow to three licensed plumbers by Year 5. Equipment. About $35,000 to start: used service van with shelving and racks; sectional drain machine; drain camera inspection scope; hand and power tool sets; press tool for copper and PEX pipe; ladders, hand truck and water heater dolly; gauges, leak detectors and testing equipment. We set aside about $4,000 to $5,000 a year for repairs and replacements. Upkeep. Tools cleaned and checked every week, and the van restocked every night and serviced on schedule, so we never arrive without the part we need. Safety. Safe work around gas, hot water, electricity and confined spaces. Shut-off and permit rules followed on every job. Gloves, eye protection and fall protection used. Running costs in Year 1: vehicle and equipment maintenance about $14,000, licensing and insurance about $9,000, marketing about $6,000. Scheduling and billing. A simple scheduling and invoicing app on my phone, with customers billed after each job and larger jobs billed in two parts.

Management & Organization

Who runs the business. Jorge Russell, owner. As owner I will do plumbing work, quote jobs, schedule, order parts and handle the money side of the business. I plan to pay myself $62,000 a year in salary in Year 1. Crew. Licensed plumbers at about $54,000 a year each (or part-time pay): one in Year 1, two in Year 2, two in Year 3, three in Year 4 and three in Year 5. People who will help us: a bookkeeper or tax preparer, an insurance agent, and a free mentor from SCORE or the Small Business Development Center (SBDC). Linda Torres serves as a key volunteer advisor.

Milestones Narrative

Our goals and when we plan to reach them. - Before starting: get the license and insurance, register the business, buy the van and tools, and set up the phone and website. Target start: March 2027. - First year: complete about 600 service calls and 60 installation projects, for about $177,000 in sales. - Year 2: add a second licensed plumber, about $289,900 in sales, and a loss of about $35,700. - Years 3 to 5: grow to three licensed plumbers and about $708,500 in sales by Year 5. Growth depends on hiring good people and winning the work, so treat the later years as goals, not promises. What we check every week: calls answered, jobs done, return visits, new quotes, parts and fuel costs, and cash in the bank.

Funding Request

How much we need and how we will use it. Total needed: $136,000. This number comes from the Funding Need Calculator in this plan. It adds up: - Startup costs of $46,500, listed item by item in the Startup Costs section (about $35,000 for the van, drain machine, camera scope and tools, $3,500 for opening parts and fittings, $1,500 for license, exam and bond fees, $3,500 for the first insurance payment, $800 for business setup and bookkeeping software, and $2,200 for van lettering, business cards and a website). - A cash cushion of about $89,500: the deepest cash dip in the early months plus about three months of bills, so slow weeks do not put the business at risk. Lenders call this "working capital." - Together that comes to about $136,000 (rounded up to the nearest $500), which is the total we are planning for. Where the money comes from: - My own money: $18,000. - Amount requested: $118,000. Kind of funding we are looking for: an SBA 7(a) loan through a local bank or community lender. How we will pay it back. We expect losses of about $53,000 in Year 1 and $35,700 in Year 2 while we build our customer base, then a profit from Year 3 (about $37,900), growing to about $139,700 by Year 5. With this funding, the business has money in the bank every year of the plan. The loan is planned at 12.75% interest over 10 years, the most the SBA allows for a loan this size, so payments of about $1,745 a month are already included in our cash flow. What we are offering the lender: our van and tools as collateral and my personal guarantee A smaller first step, if needed. If we cannot raise the full amount right away, we can start smaller and grow into this plan: - Phase 1: start as a licensed plumber on evenings and weekends with your own truck and tools, taking small repair calls while keeping your current job. Startup can be under $3,000. - Phase 2: once you have more calls than you can handle part-time, buy the service van and drain machine and follow this plan. To plan the smaller start, make a copy of this plan (use Duplicate) and lower the numbers to match. All numbers in this plan are estimates. We will update them as real results come in.

Appendix Notes

Documents to attach before you send this plan:

- Your resume (one page is fine) and your plumbing license or proof of your training. - A personal financial statement (a list of what you own and what you owe; lenders usually provide a form). - Business registration papers and your EIN (your business tax number from the IRS, free at irs.gov). - Proof of insurance, or a quote. - Quotes for the van, drain machine and tools. - Your price list. - A list of current customers or repeat clients, if you have them. If you don't have any of this yet, no worries - let's continue. The assumptions behind our numbers (change them in the Financials section to match your own):
- Service Calls: about $175 per call in Year 1, rising to $195; about $50 per call in direct costs; about 600 calls in Year 1, growing to 2,053. - Installation Projects: about $1,200 per project in Year 1, rising to $1,340; about $550 per project in direct costs; about 60 projects in Year 1, growing to 230. - Owner salary: $62,000 a year. Crew: $54,000 a year each, from one in Year 1 to three in Year 5. - Other yearly costs in Year 1: vehicle and equipment maintenance about $14,000, licensing and insurance about $9,000, marketing about $6,000. - Tax rate: 21%. - Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs