Launching a plumbing supply business is going to take some investment. You’ll need to start by purchasing stock and finding a place to store it. Some business owners can self-fund their ventures but may still need to find additional sources of finance. If you want to present your business to investors or lenders, you need a business plan.
This article will cover everything you need for your plumbing supply business plan, including:
- Description of business
- Explanation of market
- SWOT analysis
- Financial projection
Description of business
The first section your business plan should include is a description of your business idea and some explanation around it. This section would help to emphasise why you want to launch this venture and how you will fulfil the services plumbers seek.
You can talk about your USP (unique selling point), which is the thing about your business that sets it apart from your competitors. It would help if you thought of a detailed description as a pitch to ensure your offering is easily understood.
Explanation of market
Before creating your business plan, you may have done some market research. If you have any ideas about who you will target, it’s worth describing them in your business plan. An excellent way to do this is by putting together a customer profile.
If you are not sure where to start, read this article for guidance: what is a customer profile?
Having an ideal target audience in mind will allow you to direct your marketing. So putting this into your business plan gives the investors or lenders the evidence they need to trust that you will target the right people. Having excellent service alone won’t guarantee success. You need to ensure that you are offering your services to the right people.
A section that provides an examination of your strengths, weaknesses, opportunities and threats (is also called a SWOT analysis). It shows that you have put some time into thinking about each aspect of the business.
You should know what the strengths of this business are going to be. For example, you may have previous experience within the supply or plumbing industry. This section should provide all of the reasons you think you’ll succeed, and highlight the personal attributes and experience you have that will contribute to the success.
To demonstrate that your plan is realistic, you need to show that you have thought about your weaknesses. Then, explain which business areas may need to develop. You may be unfamiliar with certain aspects of running a business perhaps.
These should be provided with solutions and intentions to improve these areas in future. For example if you are unfamiliar with accounting, mention your intention to hire a financial advisor or use software that takes care of it, like Countingup.
It would help if you mentioned opportunities your business can take advantage of, showing that you are an enterprising business owner. These can be anything from changes in technology to specific events or any possible gaps in the market your business can use to thrive. Make sure that you explain how you will take advantage of the opportunities, as it shows that you can run the company beyond the initial launch.
Include details of any potential threats your business will face, to show your preparedness. If you already identify threats, you can figure out how to overcome them if they occur. In addition, this readiness level will demonstrate strong management skills. Potential threats could include price changes for supplies after the UK changes trade negotiations with the European Union, for example.
With a plumbing supply business, your plan will need to include some essential features on how you operate. For example, you will have to mention the scale of the company you intend to run when you begin and how much stock you will be able to store and ship.
When it comes to storing and shipping, you must mention how you will do these things. If you plan on renting a warehouse, include any information you have currently gathered on costs or logistics. If you have suppliers already lined up, make sure to mention any agreements. Lastly, if shipping will play a significant factor, talk about potential courier services you intend to use.
The financial projection proves whether the business is feasible to a lender or investor. First, you have to demonstrate that you have priced up the goods you will sell. Then, work out how much they will cost you to buy and ship, with the expected profit for each.
It is essential to put together a sales forecast for a realistic estimation of the sales you expect to make. Follow any market research you have carried out and base it on what is likely to be realistic. If the forecasts are wrong or are too over-estimated, this will reflect poorly to a lender or investor.
Your plumbing supply business plan requires accurate calculations to form the financial aspects. You would likely benefit from using an app to make all of those processes simple, and help you manage your money more effectively. Many new businesses struggle to keep track of their finances at first. So any way of making that process easier could improve your chances to succeed.
Tighten up your plumbing business finance with Countingup
Financial management can be stressful and time-consuming when you start a plumbing supply business. That’s why thousands of business owners use the Countingup app to make their financial admin easier.
Countingup is the business current account with built-in accounting software that allows you to manage all your financial data in one place. With features like automatic expense categorisation, invoicing on the go, receipt capture tools, tax estimates, and cash flow insights, you can confidently keep on top of your business finances wherever you are.
You can also share your bookkeeping with your accountant instantly without worrying about duplication errors, data lags or inaccuracies. Seamless, simple, and straightforward!
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