Make plumbing your business
Build a lucrative plumbing and heating business - and the profits will flow!
The YourPlumber Franchise Guide
Make plumbing your business
www.yourplumberfranchise.com
Make plumbing your business
Introduction from Dan Morris, CEO Thank you for enquiring about ownership of a YourPlumber franchise. I hope this brochure gives you a good understanding of how our franchise works and what you should expect from owning a plumbing and heating business that benefits from an established brand name, reputation, management systems and passionate support. YourPlumber is being developed with an unwavering focus – to be the UK’s plumber of choice; known for quality workmanship and outstanding service. For years the plumbing industry has been poorly serviced and although this is slowly improving, the demand for a dependable, professional local plumbing service is as strong as ever. We will achieve our objectives for two reasons. Firstly, YourPlumber subscribes to highly professional Service Standards that define our position in the market and command the respect and loyalty of customers. Secondly, we are committed to franchising; we believe in the passion and determination of local business owners and share our proven systems with enterprising partners to build successful businesses that deliver the same consistent quality that YourPlumber customers have come to expect. It’s dynamic, rewarding and very exciting. We take the partnership we form with our franchisees very seriously; it is the foundation of our success. Our franchise partners are not plumbers, they are business people who have the skills and motivation to manage supremely efficient and successful plumbing businesses. YourPlumber is positioned to do great things and offers a dynamic and exciting franchise opportunity. We have a successful business formula that effectively serves buoyant customer demand. If having read this brochure you would like to find out more, we would be delighted to welcome you to one of our Discovery Days.
Dan Morris, CEO YourPlumber
We’re passionate about outstanding service and ethical standards
The YourPlumber business
YourPlumber is making a big splash in the plumbing market. We’re passionate about outstanding service and ethical standards, which is a primary reason why we franchise. Our belief in the drive and determination of local business owners is central to fulfilling our ambition; to be the UK’s first choice plumbing service.
YourPlumber provides professional solutions to all types of plumbing and heating problems, offering a broad range of repair, maintenance and installation services to a mix of local homes and businesses. Service visits range from small reactive repairs and routine servicing to larger installation projects and boiler replacements. The YourPlumber philosophy is a simple one: provide market leading service to the sectors of the market that value and are prepared to pay for that service. This refreshing commitment to outstanding service is based on trust, reliability, honesty, integrity and convenience. We’ve established a reputation for quality workmanship and customer care that will ensure our position as the market leader is maintained. YourPlumber’s market leading service is managed and provided under franchise. We’re committed to franchising and believe in supporting and trusting local business owners to continue providing the same great service YourPlumber customers have come to expect.
69% of customers feel they benefit from a local business backed by a national brand
Franchising - it makes good business sense
Franchising is where the owner of a successful business (‘the franchisor’) licenses the use of its operating systems, brand and other intellectual property, provides initial training and gives ongoing support to enable another (‘the franchisee’) to set up and operate an identical business elsewhere. In return the franchisee pays the owner an initial fee and an ongoing management fee. Franchising is the ideal way to start a new business and continues to grow as a proven and recognised method of operating businesses in the UK. Latest research shows there to be more than 900 franchise systems in the UK, contributing £13.4 billion a year to the UK economy. The success rate of franchises is much higher than that of independent start-ups without the support and know-how of a franchisor. Further research on public opinion reveals the general public prefer to buy goods/services from franchised businesses rather than non-franchised businesses. 45% of those asked said they would first try a franchise over a non-franchise, whilst just 23% prefer to use a nonfranchised brand.
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64% of people feel service is more likely to be provided at an agreed and consistent standard
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69% feel they benefit from a local business backed by a national brand
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66% prefer that they know exactly what they will be getting
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53% feel they receive better service from dealing with the owner
Franchisees are able to concentrate on managing the service and growing the business
The YourPlumber management franchise
A YourPlumber franchise provides the opportunity to own a business that operates in a buoyant industry, with strong cash flow from the start and support from an experienced partner. Our systems make the business simple to operate and achieve positive word of mouth reputation and customer loyalty with huge potential to grow into a multi-van business. Franchisees manage the business and oversee the service, using employees to carry out the hands-on plumbing tasks. We believe a successful business in the plumbing and heating sector, that is scalable, profitable and reliable, can only be achieved when the people who own or manage the business are not the same people carrying out the hands-on technical work. We believe the reputation for poor service that characterises the industry stems from the fact most plumbing businesses are run by sole traders, where the same person attempts to balance all the demands of running the business with the need to also carry out the plumbing services. By employing a member of staff to perform the technical services, YourPlumber franchisees are able to concentrate on managing the service and growing the business by doing the marketing, sales and administrative work sole traders often neglect or don’t find time for. By working this way YourPlumber businesses benefit from better organisation and efficiency which creates higher profitability, better customer satisfaction and reputation, faster growth, better work-life balance and ultimately, a more valuable and saleable asset.
The UK plumbing and heating market is estimated to be worth £9bn a year, with nearly every residential and commercial property having some form of plumbing and heating
A substantial market opportunity
Since we started out our franchisees have managed tens of thousands of plumbing jobs. As a result we have tens of thousands of satisfied customers, and the numbers are growing literally every day. Our focus on providing service excellence has proven that considerable demand exists for a professional and reliable service in what is a robust and sizeable industry. The UK plumbing and heating market is estimated to be worth £9bn a year, with nearly every residential and commercial property having some form of plumbing and heating. However the choice for consumers is limited when it comes to finding reliable and professional plumbing services. The industry is fragmented, comprising mostly sole traders and small owner-operator businesses, often with proficient technical abilities but limited resources and commercial vision. This fragmentation has contributed to the industry’s reputation for being poorly serviced, with rogue practice being regularly publicised, and considerable consumer anxiety about the challenge of appointing a reliable plumber. The fact that most people find it difficult to find a trustworthy plumber, means when they do they use them time and time again. And tell all their friends, colleagues and relations. The YourPlumber concept is focused on capitalising on this opportunity by providing a truly customer driven service conforming to the YourPlumber standards of service. It’s a winning strategy that sees our franchisees consistently win new customers whilst retaining the trust and loyalty of existing clients.
Running a YourPlumber franchise is varied fast paced and challenging
Running a YourPlumber franchise
Running a YourPlumber management franchise doesn’t involve sitting in a van or lying under a sink. The initial priorities will be to order a vehicle equipped and liveried to YourPlumber specification, to participate in the launch marketing programme organised by YourPlumber and to hire an experienced and certified plumber. This is a key appointment which we’ll help you with. When the business launches you’ll be required to oversee and manage the service. Typical responsibilities include booking and scheduling jobs, supervising work, dealing with suppliers, liaising with customers and planning regular marketing activity. You’ll need to keep on top of financial administration, develop the reputation of the brand and work on growing the business. In the initial stages of establishing the business we encourage you to spend time out on jobs with your first employee so you can develop an understanding of operational issues. Running a YourPlumber franchise is varied, fast paced and challenging. Some necessary routines develop but each day presents different demands and opportunities that make this business immensely rewarding.
Training All you need to know about running a YourPlumber business Owning a YourPlumber franchise gives access to a wealth of knowledge and experience and the technology and tools to run an efficient and profitable business. We have a winning business formula that works; we’ll teach you this during a comprehensive initial training programme. You may not know much about the plumbing industry at this time, other than it’s a profitable industry that you think you want to build a business in. Our comprehensive six week training programme will teach you everything you need to know to manage your business, your staff and your customers with confidence.
Plumbing Management (Three weeks) It will be necessary to complete a home study, online e-learning programme before starting the business. This will give you the understanding and knowledge of an NVQ Level 2 qualified plumber in domestic plumbing systems, legislation and terminology.
Business Management (Three weeks) Our business training programme assumes nothing, starts right at the beginning, and teaches you everything you need to know about running a YourPlumber business:
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Understanding plumbing techniques, processes and methodologies
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Hiring, training and effectively managing staff
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Handling customer calls, booking and scheduling jobs using the bespoke YourPlumber IT system
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How to price and estimate jobs to maximise conversion to booked jobs
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Managing finances using the bespoke YourPlumber system
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Supplier management
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Effective customer service techniques
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How to build your business by making the most of our marketing programmes.
This is followed up with onsite training to ensure everything is ready for the launch. In short, you may come into our training programme thinking you know very little, but we guarantee you’ll walk out confident of being able to manage a plumbing business with professionalism and integrity.
Our franchisees gain a sharp edge over the competition
Industry leading technology
Good service management is essential in successfully running a YourPlumber franchise. Quickly getting to grips with managing the business is made easy by our bespoke IT management system. The business management IT system enables franchisees to:
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Organise and schedule the daily activities of you and your staff
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Maintain customer data including details of historical jobs and invoices to
ensure you can provide a personal service
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Access a suite of reports that provide key management information –
analysis of sales, evaluate marketing performance, identify the most
profitable customers and assess profitability.
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Manage finances – accurately record sales, expenditure, calculate
profit and loss and ensure disciplined credit control
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Analyse staff performance and productivity
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Provide interactive training sessions for you and your staff
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Access a whole library of business ‘tools’ such as mailing letters,
advertisement templates, health & safety procedures and human
resources documentation
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Stay in touch with other franchisees via a forum
Our industry leading IT management system is bespoke to YourPlumber and operates as the hub of a franchisee’s business. It provides instant access to resources and information and helps maintain efficient control and optimise performance and time management. It ensures our franchisees gain a sharp edge over the competition.
YourPlumber’s success comes as a result of our franchisees’ success
Support - With YourPlumber you’re never short on support
Running a YourPlumber franchise offers the benefits of business ownership with a much reduced risk. That’s because you enjoy the independence and rewards of being your own boss but with the advantage of a partner at your side to help guide and support. You’re on your own, but not alone! Our success comes as a result of our franchisees’ success, which means our management and support team is constantly available to provide advice and support to franchisees. We actively encourage franchisees to tap into our knowledge and experience to help with day to day issues and on-going key decisions and action planning.
Mentoring Our team will be available on a continual basis, via telephone, email and one-to-one meetings. We’re available to provide assistance with any issues, from IT and accounting problems to HR, marketing or sales concerns. Business performance reviews make up a critical part of our on-going support in helping franchisees analyse and plan for the future. Asides from interpersonal mentoring and support, our on-going programme of support also includes:
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Management of the YourPlumber website
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Negotiation of preferential rates with key suppliers
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Regular review of processes and procedures to ensure franchisees stay compliant with legislation
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Periodic meetings and conferences
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Access to our intranet to enable franchisees to access resources and share ideas
It’s a dynamic and powerful business relationship in which both parties benefit from the success of the other.
Finding new clients is one of the most important requirements of new businesses
Marketing support
YourPlumber’s marketing programme aims to support franchisees on two levels; firstly by building national awareness of the service, secondly by providing marketing ‘tools’ to help franchisees generate local enquiries. Print ads, direct mail letters, radio jingles, leaflets and branded vehicles all make up part of the marketing toolbox. Our corporate website is one our most important marketing tools and attracts new customers 24/7. It’s been designed using the best practices in web design to make it both easy to find and easy to use. Franchisees each have specific and personalised presence within our main site that can be customised with local information and special offers. The site has become one of our key marketing tools and is responsible for providing franchisees with on average more than £100,000 each in banked revenue every year. We’ve carried out extensive research to establish customer preferences and have tested a wide range of promotional activities to identify those that produce the best results. Finding new clients is one of the most important requirements of new businesses and we share our experience to help franchisees invest in marketing activity with confidence and predictability.
As our franchisees find every day, delivering a service to the YourPlumber standards earns the trust that is a key feature of all successful businesses
A brand people believe in
When people hear the name YourPlumber, see our adverts, visit our website or even see our vehicles, they think: established, professional and reliable. A strong, credible brand that people associate with trust and reliability is one of our franchisees’ most valuable assets.
As our franchisees find every day, delivering a service to the YourPlumber standards earns the trust that is a key feature of all successful businesses. More importantly it justifies a premium price. Our franchisees are able to charge much higher prices than ‘typical’ or ‘standard’ industry rates. We win customers’ trust by operating a fair price policy. Every customer is given a fair and fixed price before any work is started, with no hidden extras.
The YourPlumber quality of service is critical to building a profitable business
What it takes to succeed
YourPlumber franchisees come from a variety of backgrounds and with differing skill sets. They are all motivated by the opportunity to run their own business and to enjoy the financial and lifestyle rewards this can offer.
Specific qualifications are not necessary. However possessing an attitude and personality that will make the right impression on staff and customers are essential. Some managerial experience will be helpful, but not essential; providing you display sound commercial judgement you’ll be well equipped to manage the business. Good communication and organisational skills will be necessary, as will a sound level of IT competency.
It is important franchisees share our Service Values. Being fully focused on following the system by delivering the YourPlumber quality of service is critical to building a profitable business. However, the most vital ingredients for success are the need for sheer hard work and determination driven by passion and commitment. As the saying goes, ‘the more you put in, the more you get out’.
YourPlumber will help you build your business, which in turn will provide you with the financial freedom you desire
Rewards of being a YourPlumber franchise owner
A YourPlumber franchisee enjoys the financial and lifestyle rewards of being a business owner but is protected against typical risks that small businesses confront, enabled by association to the YourPlumber brand and the support provided by YourPlumber. YourPlumber will help you build your business, which in turn will provide you with the financial freedom you desire, and allow you to take control of your future. By following the YourPlumber system, and working hard, there is no limit on how big a YourPlumber franchise can grow except a franchisee’s own ambition and capability. The rewards for hardworking franchisees, both financial and lifestyle, are truly unlimited. The benefits of owning a YourPlumber franchise mean you will:
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Be responsible for your own earning potential
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Have greater flexibility to manage your own time
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Have control and be able to make your own decisions
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Enjoy a better work-life balance
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Be rewarded by the efforts of your own hard work
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Own a business in a robust and recession resistant industry
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Have the support of an established brand with proven marketing programmes
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Have access to an experienced support team and network of other franchisees
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Own a business that thrives on customer loyalty and referrals
10. Have a long term retirement plan and exit strategy
Everything you need to know. Your questions answered
Questions & Answers
1.
Does a YourPlumber franchise have protected territories?
Yes. You receive an exclusive protected territory, identified by post code sectors. The area has been specially designed to include the optimal number of households that demographically fit the profile of our target market. 2.
Are all training costs included in my franchise package?
Yes. The franchise fee includes the full training programme. 3.
How much working capital will I need?
Working capital is largely dependent upon your own personal circumstances. As a guide we usually anticipate £5,000-£10,000. Customers usually settle their accounts promptly, so cash flow is not a major hurdle – as long as you follow the system. 4.
How much could I expect to earn?
We can’t say for certain because this will be directly dependent on how much effort you apply to maximising your businesses potential. As a rule of thumb a single van should be able to generate £120,000+ per annum and the average net profit before drawings are 2530%. Further details about the earning potential are provided in the sheet at the back of this brochure.
5.
How do I attract employees?
Your employees will come from a number of resources such as newspaper ads and online listings. We will take you, step by step, through the advertising interviewing and hiring process for new employees. We will also show you how using a bonus and incentive plan can help to retain good employees. 6.
What facilities do I need to manage my business?
You could start from designated premises, such as a small serviced office on a business park. However, you may wish to keep overheads to a minimum and operate from home to begin with. At some point in the future you will probably want and need to relocate to commercial premises. 7.
Will I be able to talk to existing franchisees?
Yes we would recommend that you talk to our operating franchisees. They’ll give you a clear picture of what you’re buying into. 8.
Can in continue with my job while the franchise gets going?
No. to give your business the best possible start, you will need to commit yourself to a full time basis. Your YourPlumber franchise is not suited to a part-time franchise operation. 9.
Do I have to live in the area I am considering for the franchise?
We would normally recommend you do. However, if you choose and area within short commuting distance from your home this is of course possible. 10. How much of this total funding will I have to provide and how much could I borrow?
Depending on your status, funding can be arranged either directly with your bank or through our scheme, which has already been agreed with our bankers. 50-70% should normally be available, subject to status. 11. Do I need to be computer literate?
All of our systems have been designed for ease of use and will be trained thoroughly during your training programme. You should however be reasonably comfortable with using a computer and standard programs such as email and Microsoft Office. 12. Are my staff employed or self-employed? I’ve never been in charge of employees and am concerned about rules and regulations
All staff must be fully employed by you. Recruitment, contracts, documentation and how to manage your staff will be dealt with on your training course. Guidance on all personnel issues is available. 13. Can you help me draw up a business plan?
Yes. We will provide you with all the information you need to formulate your business plan. 14. When can I start a YourPlumber business?
A new franchise can be launched anytime of the year, we have training courses starting at regular intervals and we will book you on to the course most appropriate to your circumstances. The selection and training process normally takes at least two months.
We look forward to welcoming you to the YouPlumber family
The Next Steps
If you’re interested to find out more about a YourPlumber franchise, please arrange to attend one of our regular Discovery Days. These are informal but informative days where you can come along, with no obligation to find out more about the YourPlumber opportunity.
Details can be found on our website or by calling 01202 230070
Build a lucrative plumbing and heating business - and the profits will flow!
Make plumbing your business
www.yourplumberfranchise.com
Be your own boss Build a lucrative plumbing and heating business - and the profits will flow!
Find out more today
Make plumbing your business
t. 01202 230070 e. enquiries@yourplumberfranchise.com
www.yourplumberfranchise.com
Investment requirement and on-going fees YourPlumber provides a comprehensive package to get you set up in business and ready to start operating a plumbing and heating service. The initial franchise package includes:
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A five year renewable franchise agreement with license and trademark rights
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An exclusive territory in which to operate the business
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A comprehensive 6 week initial training programme
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A bespoke business management IT system
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Access to the YourPlumber franchisee intranet and shared resources
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Operations manuals
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Promotional stationery and marketing literature
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Personalised website and email address
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Branded workwear and corporate uniforms
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Gas Safe application and registration
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Stock and equipment package
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IT equipment and small office set up
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Market launch programme
The total cost of this package is £29,500 (plus VAT)
Raising finance Up to 70% of this total investment amount can be borrowed from the bank (subject to the normal terms and conditions), so you will need the other 30% as liquid capital.
On-going fees Management Service Fee, or royalty
10%
Brand awareness and advertising contributions 1%
A detailed list of all operational expenses are provided with the business plan template.
Make plumbing your business t. 01202 230070 e. enquiries@yourplumberfranchise.com
www.yourplumberfranchise.com
Financial Rewards If operated in accordance with the prescribed system and with a proactive approach to marketing, a YourPlumber franchise has the potential to attract clients at a considerable rate and to generate a very respectable level of earnings. However, it should be understood that no guarantees can be offered as the rewards generated will depend entirely on the effort and endeavour of each individual franchisee, and on compliance with the YourPlumber business management system. An illustrative profit and loss account for the first three years of trading, detailing revenue, indirect and direct costs and profit by month, will be supplied to franchise applicant separately. However, the information below provides a summary of what should realistically be achieved:
Year 1
Year 2
Year 3
Sales revenue
£152,450
£259,500
£351,690
Gross profit
£93,712
£156,050
£209,091
Operating expenses
£51,342
£90,177
£129,021
Operating profit
£42,370
£65,872
£80,070
Please note these figures are for illustration purposes only and do not represent a guarantee of earnings. Revenue and business growth dependent upon activity and application. Achieving business success relies on successfully marketing, managing and developing the business. It is important to recognise that the business is an asset, which should appreciate in value as it develops. The business may be sold at any time, to a buyer that meets with YourPlumber’s approval. It should be expected that the price obtained will reflect the business’ record of turnover growth and profitability.
Make plumbing your business t. 01202 230070 e. enquiries@yourplumberfranchise.com
www.yourplumberfranchise.com