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As demand rises for services such as plumbing, restoration, cleaning and property rehabilitation, more opportunities for home service entrepreneurship continue to emerge. Plumbing business owners play a pivotal role in day-to-day and large-scale disaster cleanup and repair. As natural disasters continue to increase, with Hurricane Helene in October racking up estimated insured losses between $8 billion and $17.5 billion, plumbing and restoration providers have become an essential resource for both residential and commercial property jobs.
Plumbing and restoration, two industries that often go hand in hand with property remediation following water damage, are lucrative business opportunities for entrepreneurs. However, many plumbers hesitate to make the jump into opening a restoration business of their own. Adding restoration services, which is relatively simple as an extension of plumbing, can increase the value of both businesses over time and provide an endless source of leads.
Where should plumbing contractors start when looking to expand their home service offerings with restoration? Here are three things to consider:
Don’t ignore the importance of having a coach or mentor when starting out: One of the most important steps to make when starting any business is to find someone who can provide an objective view as a coach or mentor – whether a seasoned entrepreneur or starting for the first time. While this may seem like a simple, optional step, having a mentor comes in handy throughout ownership, especially when they have industry experience and can serve as an accountability partner.
For service-based jobs like plumbing and restoration, mentorship must come from someone who has walked the same path financially and managerially. If your growth goal is to expand from $1 million to $5 million in three to five years, your business strategy will be stronger if you’re consulting with a coach who has achieved similar growth. When your coach has done the same job and successfully managed a team to solidify and increase business value, their advice aligns with practical actions you can apply in your venture. Staying accountable for the consistent care, growth strategy, problem-solving and relationship management that come with business ownership is harder to do alone than with a mentor, making the connection an early investment in your business’s future success.
Compare individual startup to joining a franchise system: Finding the time, money and resources to begin a new business venture comes with its own set of challenges. Although the payoff from opening a restoration business is appealing, the startup process can feel overwhelming. If you’re starting fresh as an independent business owner, you will need to prepare for the demands of troubleshooting, developing business and operations strategies, grassroots marketing and more on your own. Success in the planning stages of launching a new restoration business is pivotal for determining how the first few years of business will go. Without the necessary support and back-of-house preparations for both your existing and new business, the new venture could suffer.
While some view joining a franchise system in the home service industry as daunting, a franchise can help reduce many challenges. Finding the time to research the right opportunity can be difficult, but every new business owner wants to feel included, valued and prioritized when joining a franchise, making it essential to have conversations with multiple brands before deciding on the right fit. Independent ownership and startup pose many challenges and require ample time for an entrepreneur to set up, while franchise ownership removes many of these burdens. Operating in a franchise provides a wide network of support from established experts in the industry – from executive leadership to franchise business consultants and other franchisees – while giving the plumbing entrepreneur more time to focus on their existing business without as much worry over the success of their new one.
Franchise ownership can lead to smoother efficiencies across the board, from employee and franchisee training to operations support, networking, insurance relations, job sourcing and more. Owning a restoration business requires similar practical skills as plumbing operations; however, some changes, such as certifications, navigating insurance claims and learning the specifics of an emergency response-related industry, are needed. These skills and applications are the bread and butter of restoration franchises, making franchise ownership a great way for home service industry entrepreneurs to tap into resources and a support system filled with experts and creative, strategic business development.
Think about growing equity, future value and connections: Plumbing companies naturally generate restoration work. Referrals are great for temporary financial growth by bringing in outside restoration companies, but for entrepreneurs, there is a huge opportunity to build equity, long-term financial growth, value and connections if the restoration work is handled within the same company. On the other end, a potential pitfall for restoration business owners is the need for plumbing experts to finish one or multiple parts of water damage jobs. When both services are provided by one team, it can further enhance the customer experience and streamline service.
Maintaining a steady lead flow for restoration and plumbing jobs in an industry that is highly competitive and saturated increases the offering potential for home service entrepreneurs and alleviates some of the stress that comes with looking for work. What would normally provide a few hundred dollars with a referral could be converted into a job opportunity worth thousands, providing customers with a complete, streamlined service. Over time, this will only increase the value of your small businesses, whether your goal is to sell, increase the number of markets served or build a loyal customer base that contacts you as their reliable one-stop shop.
The home service industry is one of the few that has not been consumed by the creation and implementation of AI. As a human needs-based service, restoration has proven to be a recession-resistant opportunity, providing plumbing entrepreneurs with untapped potential to grow the capabilities and value of their small business. When done through franchise ownership, opening a restoration business with a franchisor can help provide the building blocks needed for entrepreneurs to adapt and thrive in a new industry. With resources, tools and experience to help a new business owner through each stage, a franchise system strengthens the multi-entrepreneurial journey for plumbing business owners looking to maximize their potential in a competitive space.
Idan Shpizear is the founder and president of 911 Restoration. Specializing in both residential and commercial property damage mitigation, 911 Restoration offers rapid-response services including water damage restoration, mold removal, fire and smoke damage repair, sewage cleanup and more.