Plumbing should be similar to the type of contracting I do in some key ways. I'm 26 years into it. If you charge plumbers rates for yourself, instead of taking a wage from your current bosses plumbers rates, the money will come in much faster than you're used to. You will not be able to charge out 8 hours a day, with the inevitable inefficiencies of running a business, time spent doing unproductive things, like dropping the van off at the mechanics and meeting your insurance agent. But day in and day out, it's as simple as charging the going rates, or even higher for quality work and humble service, and covering your expenses. Mark your parts up 20-50%, cover your mileage at the cost of fuel, and make your wage as many hours a day as possible. Be frugal with spending, don't get behind on taxes, reinvest wisely, shop smart and take the long view. It doesn't all have to happen the first 6 months you start.
Be careful with yellow page advertising that costs several hundred dollars a month. If you rely on service work from the yellow pages, don't name your business Zeke's Plumbing, and end up in the back of the book. If you plan on working for builders, skip the ads and have coffee or lunch with every builder you can, even the ones you don't work for now, market yourself as someone who is in it for the long haul, will watch out for them, and expects to be treated fairly and PAID on time! Join the local chamber of commerce and go to the monthly meetings, to introduce yourself to the other business people in your community, who may end up the lifeblood for your startup. Business people make and SPEND money, and will help you if you present yourself as an honest, professional, humble businessman. In the short term, buy a van or whatever you need, shop Craigslist, garage sales, whatever you can to get what you need to get rolling, don't worry how it looks, just that it actually works. Start making your rates ASAP, it will build your confidence and give you some much needed cash to cover startup costs. Avoid monthly payments that suck the blood out of you in the off-season. I could just go on and on, there's so many little things to get right. PM if you'd like. Bottom line, get the cash coming in, BEFORE you get too much going out. It's a confidence thing...
