Why Plumbers at $750K+ Must Systemise to Scale: Avoid the Growth Trap

If your plumbing business is turning over $750,000 or more, you’re already doing a lot right. You’ve built a solid team, you’re winning work, and you’ve developed a reputation that truly gets you noticed in the industry. But here’s the key point: what helped you reach this level won’t necessarily get you to the next stage of growth. In fact, without implementing the right systems and processes, growth can become a trap, leading to increased stress, longer hours, and lower profits. I’ve coached dozens of plumbing contractors through this exact stage, and I can tell you that systemisation is the essential ingredient for scaling your business without burning out.

I’m Ashley Thomson, a plumbing business coach at Tenfold Business Coaching. With over 20 years of experience coaching established Australian businesses, I specialise in helping trade-based businesses, such as plumbing contractors, grow sustainably. My approach is grounded in first-principles thinking and backed by real-world results. I’ve worked with some of the country’s top-performing plumbing businesses to help them increase their profitability, build high-performing teams, and take better control of their operations.

The Growth Trap – What It Looks Like

At around the $750,000 to $1.5 million mark, many plumbing businesses in Australia hit a wall. You may be busy, but you’re not always turning a profit. You have a team, but you’re still the one putting out fires. You find yourself quoting jobs late at night, chasing invoices over the weekend, and wondering why your bank account doesn’t reflect the amount of work you’re doing. This is what’s known as the growth trap. It can feel like success, but it’s not sustainable in the long run.

Why Systemisation Matters at This Stage

Systemisation isn’t about transforming your business into a large corporate entity. It’s about developing dependable and repeatable methods of operating so your business can function smoothly without requiring your constant involvement in every detail. When you systemise, you free up your time to focus on leading and growing, rather than just reacting to day-to-day issues. It also provides you with greater visibility over your financials, encourages your team to be more accountable, and ensures your clients receive a consistent and quality experience. This approach is how you can scale your business with confidence and peace of mind.

The Five Core Areas to Systemise

Here’s where I get practical. These are the five areas I work on with my plumbing clients to help them scale:

Job Management

Use tools like SimPRO or AroFlo properly. Set up workflows that track jobs through every stage, from the initial quote right through to the final invoice. Ensure your team understands how to use the system effectively and that it is kept up-to-date in real time.

Financial Visibility

Make sure you’re fully aware of your profit margins on each individual job. Create comprehensive dashboards that provide clear information on labour expenses, materials used, and your gross profit. If a job isn’t financially successful, it’s essential to identify this early before you’ve completed the work.

Team Accountability

Clearly define the roles and responsibilities of each team member. Establish key performance indicators for your plumbers, apprentices, and administrative staff to ensure everyone understands their targets. Hold weekly check-in meetings to keep everyone aligned on objectives and to address any issues or concerns early, before they escalate.

Sales and Pipeline

Don’t rely solely on word of mouth recommendations. Instead, focus on actively creating a steady stream of work by submitting quotes, participating in tenders, and promoting your services through marketing efforts. Keep a close eye on your success rates with each bid and monitor the average value of each job you undertake.

Client Experience

Establish a clear and organised way to communicate with your clients. From the initial point of contact right through to sending the final invoice, aim to make the process as simple and straightforward as possible for them. This approach helps you to develop strong relationships, encourages customer loyalty, and increases the likelihood of referrals.

Real-World Example

One of my clients, a plumbing contractor based in Melbourne, approached me when his business was turning over about $900,000 annually. He was working extremely long hours, often around seventy hours a week, and felt there was no clear path to growth or improvement. We commenced by establishing a more organised system for his quoting and scheduling processes. Over the course of six months, he managed to decrease his working hours by approximately thirty percent and improved his gross profit margins by twelve percent. A year later, his business turnover had increased to around $1.4 million, and he had built a team that operated with efficiency and consistency, much like a well-oiled machine. This transformation exemplifies the significant benefits of systemisation within a business.

The Mindset Shift

Scaling isn’t just about systems; it’s also about mindset. You need to shift your thinking from that of a tradie  (someone who works with tools) to that of a business owner. This involves letting go of control in certain areas, trusting your team to carry out their roles, and concentrating on strategic planning. It can be challenging, but the long-term benefits are definitely worth the effort.

Your Next Step

If your plumbing business is nearing or has reached the $750,000 mark in revenue, now is the perfect time to take action. Don’t wait until you find yourself overwhelmed or feeling burnt out. Systematising your business is the smartest move you can make in order to scale your operation in a sustainable and profitable way. And you don’t have to do it on your own. At Tenfold, we specialise in helping plumbing contractors like you develop businesses that operate effectively for your team, your clients, and most importantly, for you.

FAQs

Why is $750K a tipping point for plumbing businesses?

At this level, the business is too large to operate informally and without proper systems in place. However, it has not yet reached a stage where it is structured enough to manage growth independently. Without implementing effective systems, attempting to grow can lead to chaos and operational difficulties.

What’s the first system I should implement?

Start by focusing on managing your jobs carefully. If you find it difficult to keep accurate and detailed records of the jobs you undertake, then it will be quite challenging to effectively oversee and control your workforce, the materials you use, or the cash flow coming in and going out of your business. Proper job management is essential for maintaining smooth operations and ensuring profitability.

Do I need expensive software to systemise?

This is not always the case. The most important factor is maintaining consistency. Whether you choose to use SimPRO, AroFlo, or spreadsheets, the system will only be effective if it is used correctly and in a consistent manner.

How long does it take to systemise a plumbing business?

It largely depends on where you are starting from, but the majority of my clients notice significant improvements within a period of three to six months, provided they put in dedicated and focused effort.

Can I still grow if I am not tech-savvy?

Absolutely. Systemisation is about process, not just technology. A good plumbing business coach will help you develop systems that align with your style and strengths.

In Australia, growth and development are accessible to everyone, regardless of their level of comfort with technology. Building effective systems doesn’t necessarily mean you’re a tech expert. It’s about establishing consistent and practical processes that work for you. Partnering with a knowledgeable coach can make this journey easier by tailoring systems to match your individual way of working and leveraging your unique strengths, no matter your level of technical expertise.