There are ways to increase your plumbing business and still make better profits. Growing your plumbing business alone does not always translate into more profits and there are ways in which you can do both if you are serious about growing a bigger and a better known plumbing business in your area.
Growing your plumbing business does not mean just putting more plumbers on the payroll. The often supposed myth of putting an extra Plumber on the payroll will increase your profits isn't exactly true. Just because you have an extra Plumber working for you does not mean that you have a bigger business as it only too often means that you have extra headaches and losses on some jobs. These losses on jobs can be extremely costly.
It is not only costly financially but in reputation too so a great deal of care is needed to maintain and enhance your plumbing business reputation.
Before you start to advertise in the positions vacant of your local paper or through your local employment agency, make sure that your bottom line can stand the extra expense of hiring another Plumber. You may need to make sure that you have sufficient funds to cover wages for a week or three in the event of not having the extra work to cover the cost of wages and all the associated taxes and expenses that employers today face.
The other expense that needs to be allowed for is tools. If you are 'subbing' the work out then this may not concern you but if you are hiring a Plumber as an employee, you will need to cover the cost of the extra tools and vehicles, phone and safety equipment.
Find the Right Plumber Employee by checking references
This may sound gratuitous advice but you would be quite surprised at how many employers don't do adequate reference checks. Just because they seem as if they know what they are talking about doesn't mean that they actually do. Some people have "the gift of the gab" and can talk their way into anything. The last type of employee you want to be associated with your business is someone who has better 'con-man' ability than plumbing capability.
Question the Trade Certificate and Referees carefully
When you phone or email for reference checks, make sure that they have at least 3 referees. Then ask them the same questions and listen carefully to the pitch in the respondent's voice as well as their actual answers. Some referrers are just so glad to get a trouble maker off their books rather than sacking them they are only too willing to give a good reference and hope that when things go pear-shaped that you don't remember who referred them to you.
Be Careful of a quoted job when you assign the job to a new employee
When you start a new Plumber in your business and they are on probation, be sure that their hourly rate has a bit of lee-way in there for time over-run. If they are slow workers but thorough and capable, they may not be able to cover as many jobs as you have primed your business hourly rate so that your profitability is sustainable. You want to be able to profit from all the extra work involved by employing someone so you will need to keep a very close eye on your cost structure in order to make more profit.
Employing an extra Plumber into your business can grow your business and make more profit if you follow careful guidelines and make sure that all costs are at least covered so that you don't make a loss. If you see that you need to increase your costs per hour then don't be afraid to do so because if the employee is a good worker, they will increase your reputation and your profits.
Growing your Plumbing Business needs to include a lot more than just putting another Plumber on the payroll. To grow your business profitably needs more attention paid to your bottom line.
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