BUSINESS AND TRAINING 15
The future of the one-man plumbing business
By
Rory Macnamara
By its very nature , plumbing will always be a one-person business . This is because of the kind of work the plumber does in the maintenance field . Setting up a business requires a great deal of thought , preparation , investment , and bureaucracy . This excludes managing staff , planning , and probably going out to do your own jobs .
This does not mean that starting off as a oneperson business will see one being that way for the rest of their lives . Any company can grow , enter a partnership , become part of a franchise , go public and become part of a large board of directors and even become a number in a great corporate world . Also , the term ‘ one-man business ’ does not always mean one person but refers to ownership .
Plumbing generally has been described as an emergency service and a grudge purchase . Perhaps after Covid-19 , homeowners will think twice about their health and safety and not see plumbing as a grudge , but rather as an essential service requiring regular maintenance . This requires the one-person plumbing business to appreciate the advantages they have when the opportunity arises to grow their offering to the homeowner .
Reasonably we can conclude that there is place and a future for the one-person maintenance plumbing business . The contracting side of plumbing would require a more structured company .
What then makes a one-person business ?
• No statutory formalities for the creation or ending of such a business ( does not mean tax evasion as the tax person does insist that books of accounts , income and expenditure be maintained . Income is subject to tax )
• Lower cost structure / start-up
• Overheads and management expenditure are lower
• Owner makes own decisions
• Owner creates own debt and can manage it accordingly .
Points to consider that are the downside of the one-person business :
• No limited responsibility which means the owner ’ s assets can be attached to cover debt
• No succession plan ( bear in mind a succession plan can include taking on partners negating the ‘ one-man ’ business )
• Capital must come from owner ’ s own pocket
• Lack of business skills may hamper growth and expansion
• Limited financial resources may also hamper growth .
Growth does not necessarily mean giving up the oneperson concept , but just increases the cost of running the business and it does also mean increased revenue which all has to be managed .
So , when the one-person owner retires and sells , the business can still run as a one-person business .
It makes sense then that a succession plan should be put in place so when the time comes to move on , the change is without hiccups .
Unless the owner does not wish to see the business carry on then succession is not an issue , but after delivering a good and reliable service one would not want to leave the customer base which was built up over years left high and dry . This is also a one-person owner ’ s responsibility – customers have supported you , so do not just dump them .
So , back to our question – the future of the one-person plumbing business ? It is viable , it is hard work , it requires long hours and the rewards are there and plumbing by its nature will always hold the opportunity for a successful oneperson business – properly run . PA
“ It makes sense then that a succession plan should be put in place so when the time comes to move on , the change is without hiccups .”
November 2020 Volume 26 I Number 09 www . plumbingafrica . co . za