Starting a trades company can be one of the most rewarding moves you’ll ever make—if you do it right from the start. Many skilled professionals dream of being their own boss, calling the shots, and keeping more of the profits. But these dreams can quickly turn into financial nightmares unless you lay a solid foundation. Whether you’re looking at plumbing, roofing, or any other hands-on trade, you must consider everything from licensing and regulations to money management and industry-specific skills. Below is a rundown of the crucial factors you need to keep in mind before you launch.
1. Understand the Licensing Requirements
Plumbing
Some trades are more tightly regulated than others. In many places, plumbing demands multiple licenses that reflect your skill level. You might start with a basic license that only allows you to work on small-scale residential projects. Over time—and after fulfilling education and experience requirements—you can test for more advanced licenses that let you handle bigger and more complex jobs.
- Apprentice / Trainee Phase: Often 2+ years in duration.
- Journeyman Level: Can work on multi-family and commercial systems.
- Master License: Typically requires several more years of experience or a Department of Labor–recognized training program.
Roofing
The roofing industry tends to have fewer licensing hurdles in many regions. While some states (like Florida and California) impose strict testing and financial requirements, others let you set up shop with minimal red tape. When evaluating where you plan to operate, check local laws. A few states or municipalities may require a general contractor’s license to perform roofing work legally.
2. Know the Timeline to Go Independent
Plumbing
Reaching the pinnacle of a Master Plumber status can take anywhere from four to eight years, depending on your prior training. Once you earn a Master License, you’re typically free to launch your own plumbing enterprise. The journey can feel long, but you’ll gain in-depth technical knowledge and a network of industry professionals during that period—both critical for business success.
Roofing
Because roofing sometimes lacks mandatory long-term apprenticeships, it’s easier to open a business quickly. You can form a legal entity (often an LLC), secure insurance, and start advertising your services. However, this speed can be a double-edged sword if you haven’t spent enough time on job sites or gaining hands-on experience.
3. Get Real-World Experience First
Technical Knowledge
Even if local regulations don’t force you to, it’s wise to spend considerable time working for an established company. You’ll learn the ins and outs of daily operations—ordering materials, scheduling crews, managing client expectations—that go far beyond physically installing pipes or shingles.
Respect from the Field
Employees and sub-contractors tend to respect leaders who have paid their dues. If you can jump in and do the work yourself when necessary, you’ll gain immediate credibility. That respect often translates into smoother operations, fewer mistakes, and better team morale.
4. Master the Financial Side
One of the biggest pitfalls new business owners face is poor money management. It’s easy to get excited by large checks from clients, especially when you’re used to earning a fraction of that on the job site. But remember—most of that money will need to go toward labor, materials, overhead, insurance, taxes, and more.
Track Every Dollar
Use reliable accounting software to monitor your incoming and outgoing funds. A basic system like QuickBooks, coupled with disciplined record-keeping, can help you stay profitable. Break down each job’s financial details:
- Labor Costs: Usually a significant chunk, whether it’s for plumbers, roofers, or general laborers.
- Material Costs: Vary widely based on your scope of services.
- Operating Expenses: Vehicle maintenance, office rent, marketing, and other fixed costs.
Avoid Premature Splurging
It’s tempting to reward yourself for those first few big sales. Yet overspending early—on a luxurious truck, fancy office furniture, or personal indulgences—can sink your business. Pay yourself only what you must to cover living expenses until you stabilize your cash flow. If you can keep overhead low for the first few years, you’ll be far more resilient when unexpected issues arise.
5. Think Sales and Marketing from the Start
Roofing
Roofing often relies heavily on sales tactics. Door-to-door marketing is common, especially after storms or other weather events that might have damaged roofs. A persuasive salesperson can bring in large checks quickly, but delivering the actual projects successfully—and within budget—remains crucial.
Plumbing
Word-of-mouth and established local reputations matter immensely. Many homeowners and businesses look to neighbors or online review platforms to find a plumber they trust. You’ll want a solid digital presence (website, Google Business profile, and social media pages) right out of the gate. Over time, you’ll build a name that leads to repeat clients and referral business.
6. Learn How to Manage People
In both plumbing and roofing, you can’t handle every single job forever—at least not if you aim to scale. Eventually, you’ll need employees or subcontractors:
- Crew Leader or Foreman: Oversees day-to-day tasks on the job site.
- Office Manager or Dispatcher: Handles customer inquiries, scheduling, and admin tasks.
- Project Managers: Especially crucial if you’re tackling large commercial sites.
Strong leadership requires a willingness to train, an eye for detail, and the ability to resolve conflicts. If you’re a “lone wolf” who struggles with delegating, you might find business ownership stressful.
7. Be Prepared for Volatility
Roofing
Weather is unpredictable, and so is the flow of roofing work. You might experience a windfall of projects during severe weather seasons, followed by slower periods in calmer months. Managing your finances during these peaks and valleys is paramount.
Plumbing
Water leaks and fixture failures can happen any time of year, so plumbing often sees more consistent demand. While you may enjoy steadier work, large-scale projects can sometimes stall, especially in new construction. Balancing your workload with smaller, regular service calls can smooth out income.
8. Plan for Growth, But Stay Nimble
Expand Services Gradually
Whether you start with basic repairs or small-scale jobs, do them well. Once you have a reputation for quality, consider expanding into complementary areas—like water heater installs or sewer line inspections if you’re a plumber, or siding and gutters if you’re a roofer.
Study the Market
Keep tabs on local housing trends, commercial development, and changing regulations. A spike in new builds might mean more plumbing or roofing contracts on the horizon. By staying informed, you can position your company to capture the next wave of opportunities.
9. Build a Network of Trusted Allies
Other Trades
Even if your goal is to specialize, forming relationships with pros in other fields can lead to referrals and joint projects. Contractors often recommend plumbers and roofers they trust when a customer needs multiple services.
Industry Groups
Consider joining trade associations or local business groups. You’ll gain access to workshops, potential hires, and networking events, all of which help you stay current on best practices and new materials or regulations.
10. Emphasize Customer Experience
No matter what service you offer, a great client experience can differentiate you in a crowded market:
- Clear Communication: Explain timelines, costs, and procedures in plain language.
- Professional Appearance: From uniforms to truck logos, project a polished image.
- Prompt Response: Return calls quickly, show up on time, and follow through on every promise.
Simple but consistent gestures—like leaving a job site cleaner than you found it—can produce glowing reviews and testimonials.
11. Respect the Physical Demands
Roofing
Working at heights, in various weather conditions, takes a toll on your body. Injuries or even general wear-and-tear can force you to slow down or shift to administrative roles sooner than you expect.
Plumbing
Hauling heavy pipes, crawling under homes, and dealing with water damage can also strain your muscles and joints. Plan for a future where you might need an exit strategy from daily manual labor—either by hiring help or transitioning into an oversight role.
12. Keep Learning as the Industry Evolves
Roofing
Technologies like synthetic underlayments, solar shingles, and advanced coatings emerge regularly. Professionals who stay on top of new products can outbid and outperform competitors still stuck in outdated practices.
Plumbing
Piping materials, codes, and leak detection methods evolve over time. Smart home devices now monitor water usage and alert homeowners to leaks. Being on the cutting edge can help you sell premium services and maintain a modern image.
13. Focus on Longevity Over Quick Wins
Starting any trades company—plumbing or roofing—requires strategy and patience. Quick profits might come with a few large contracts, but lasting success depends on:
- Well-organized operations
- Satisfied customers
- Positive profit margins
Aim to build a sustainable reputation that brings steady work for years to come.
Sponsored by The Trades Academy
This post is brought to you by The Trades Academy—an educational platform that helps skilled professionals elevate their careers. Whether you’re aiming to earn higher wages as a tradesperson, open your own business, or master social media to attract customers, you’ll find step-by-step courses to guide you. Consider enrolling if you’re serious about turning your hands-on skills into a thriving enterprise.
Final Thoughts
Before you jump into any trade as a business owner, make sure you fully understand the licensing, finances, and field experience required. There’s no shortcut to running a profitable, reputable company—only careful planning, ongoing learning, and a relentless focus on quality. If you handle it right, you can enjoy the independence of being your own boss, along with the satisfaction of delivering essential services to your community.
