Scaling your plumbing business is essential if you want to compete in a modern-day market. As customer expectations evolve and new trends emerge, those who adapt quickly and adjust their business strategy will see the most success.
However, scaling too quickly can cause even more problems for your plumbing business. Factors such as poor budget planning, lack of skilled workers, and little to no research into local markets could see your business sink, rather than swim.
For those of you planning to expand your operations in 2025, here are five common pitfalls to watch out for and how to fix them before they pull you under.
Poor Cash Flow Management
As you grow your business, you’ll need to hire more staff and invest in more tools if you plan to take on more projects.
While accepting more work will eventually result in a steady influx of revenue, it can take time for projects to pay out, which means that your business must already have movable funds that can keep your company afloat in the meantime.
Cash flow problems are the reason 82% of small businesses fail when trying to scale their operations.
While a commercial project may promise you $500,000 in the long run, you must be prepared to pay suppliers upfront, and a growing workforce every month. Those who neglect their cash flow management may find themselves unable to keep suppliers onboard, deliver late wages, and face inevitable project delays.
To fix this, ensure that you budget your scaling journey before you begin to expand. Consider implementing a 90-day cash flow forecast that tracks your expected income and expenses. Here, you can accurately predict your spending on a new project and adjust accordingly to maintain a healthy cash flow.
Disorganized Operations
Scaling a disorganized business can be difficult. Without documented systems in place, employees struggle to follow inconsistent instructions, new projects are logged inefficiently, and managers constantly jump from one fire to another.
A lack of proper software in place is one of the most crucial mistakes a plumbing business can make when aiming to scale up its operations.
If your team is disorganized, it can negatively impact project management, customer communication, and relationships with other suppliers and contractors. This ultimately results in sloppy customer service, which can lead to delays for your client.
To avoid this, start organizing your operations before taking on more projects. Invest in the right software to manage workflows and centralize communications. This ensures that all workers are familiar with their tasks and can communicate directly with each other to seek support.
A business that runs on robust systems and processes can scale more effectively and is well-prepared to take on more client projects.
Lack of Market Research
A lack of market research also contributes to a poor scaling journey. While the plumbing industry is rapidly growing, taking a closer look at market trends and local demographics will better inform your expansion strategy.
For example, some local plumbing markets are bigger than others. In terms of service requests, Texas currently leads with over 217,000 requests annually, while states such as New Mexico, Massachusetts, and Hawaii have the lowest demand per job ratios.
If you’re operating in a state with a low demand per job ratio, you may want to consider waiting to take on more hires until demand begins to grow.
Another area many plumbing businesses neglect is niche sub-markets. Is there a demand for specialized solutions in your catchment area? Introducing new services, such as sustainable plumbing or smart home technology, can enhance your appeal to new markets, thereby improving your chances of success.
Lowering Service Quality
If you’re unprepared to scale effectively, you’ll feel more pressure to take shortcuts and cut corners to make ends meet.
If you’re constantly overworking a small workforce or unable to invest in state-of-the-art tools, your clients will notice. If you compromise on service quality, you could damage your reputation and ultimately hinder your growth journey.
63% of consumers lose trust in a business after seeing negative reviews of their services, so it’s essential to prioritize your service quality right from the start.
The key here is to budget your expansion with your clients in mind. Ensure that each step you take to grow your business directly improves customer service and is well backed by a stable cash flow, to ensure that you don’t need to cut corners to make ends meet.
Relying on an Ageing Workforce
To offer additional services as a commercial plumbing business, you must first expand your workforce.
However, with an increasingly ageing workforce, it is becoming harder to attract and retain skilled workers. The average age of plumbers in the US now stands at 41, and this number is predicted to go up in the coming years.
Businesses that fail to attract younger workers may struggle to scale in the long run. Ageing workforces are harder to retrain on emerging technologies and run the risk of reducing hours or leaving the industry altogether.
To combat this, ensure that your business appeals to younger talent pools. Consider offering trainees opportunities for growth within the company, and introduce other incentives for Gen Z workers that make your workplace more attractive for younger workers.
Wrapping Up
Scaling a plumbing business isn’t for the weak. In such a competitive market, companies must be well-prepared to adopt new technologies, take on new workers, and manage projects effectively.
Those who establish a solid cash flow before expansion, centralize their operations, and research their markets thoroughly will be in the best position as they battle it out to secure new clients.
