Scott Kopelchuk Responded on 2/3/2010

I recommend conducting a little feasibility study to see if the expansion makes sense.

Study the plumbing industry.
-Are there trends that may have an impact on your plans?
-How big is the market for plumbing services in your area?
-How many competitors will you have?
-What is their market share?
-Is there an underserved niche that you can fill so that you don’t have to compete directly?

Study your business.
-Do you have the resources within your existing business to expand?
-How many employees will you have to hire?
-Where will you get them?
-What equipment will you have to buy?
-Will you be able to manage the expanded business yourself or will you have to add a manager?

Create financial projections for the next three years for the plumbing expansion.
-What will your revenues be?
-Will increased billing rates be neutralized by increased expenses?
-Will you generate enough profit to justify making the investment?

Once you’ve done this study, you should be in a place to make a decision about whether or not to pursue the plumbing expansion.

If you decide go go ahead, all of the information you’ve gather will make the creation of a business plan much easier.

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