How to start a hot tub installation company

With housing markets proving less stable than they once were, people are turning to home improvement. So it really is no wonder hot tubs are such a popular feature nowadays.

In 2020, demand rose by over 1000% as many sought to make the most of their outdoor space during lockdown. Since then, knowing how to start a hot tub installation company has been an issue for tradespeople looking to branch out into different skills.

It takes professional knowledge and skill to get businesses up and running.

Installing hot tubs is not a DIY job, and customers will need regular maintenance and support to keep them in top working condition. As well as an initial job, there will be ongoing work to maintain and repair.

As such, now is a perfect time to set up your own hot tub installation business and make the most of rising demand.

Getting started

Of course, going solo can be a daunting prospect. That is why our guide is designed to take you through exactly how to start a hot tub installation business and reap the rewards.

Only got five minutes to spare? Head down to the FAQs section at the bottom of this page for some quick answers to the most common queries.

Do I need qualifications to start a hot tub installation business?

Having the right qualifications is really important for any startup. These credentials show potential customers that you have developed professional skills in the industry. That in turn encourages them to hire your services when they need work doing.

Along with a reliable reputation, qualifications will give you the skills needed to provide high-quality service and follow best practice.

Hot tubs involve a good deal of electrical work to set up, so you’ll ideally have completed an electrician course such as:

• Level 2 Diploma in Access to Building Services Engineering (Electrical)
• Level 2 and Level 3 Diploma in Electrical Installation
• T Level in Building Services Engineering for Construction
• Installation and maintenance electrician advanced apprenticeship

As well as certification, you will probably also need to get a gold CSCS card. This certification scheme shows that people can rely on the quality of your work to be in line with current regulations.

What skills are important for starting a hot tub installation company?

Going self-employed means you’ll face challenges both on the job and when running your business.

Here are the most important qualities for managing your new hot tub installation company:

• For wiring the hot tub circuits, electrical know-how will be essential
• Building knowledge is needed to ensure the foundations and location are right for the hot tub
• You’ll need to be physically fit for laying down the hot tub as it’s a heavy unit
• Dexterity is crucial for fitting the hot tub parts properly
• You should have a good idea of the rules and regulations for hot tubs to make sure installations are legal
• Interpersonal skills will be key for building client relationships and providing a high standard of customer service
• Basic understanding of maths is a must for managing your business finances and working out quotes for customers

What equipment do I need for hot tub installations?

The quality of your work won’t just depend on having the right skills. Without proper equipment, you’ll end up cutting corners and leave clients with work that isn’t up to scratch.

That’s why investing in an inventory of high-quality tools will make your life easier and help you build a solid reputation among customers.

Here are all the essentials for hot tub installation equipment:

• Level
• Tape measure
• Cleaning products
• Water testing kit
• Power drill
• PVC cutter
• Fish tape
• Wirecutter
• Pliers
• Shovels
• Screwdrivers

We’ve teamed up with a range of partners to help our members save on a wide range of business essentials. As well as great savings from trade suppliers such as Selco, Tradepoint and PlumbWorld, as a Checkatrade member you can also save on public liability insurance and workwear.

With the amount of equipment required, you’ll also need a way to transport all of it between jobs.

Signing up to Checkatrade also means you can make great savings when purchasing a van for your business. We’ve teamed up with companies such as Fiat and Mercedes. So head to our Member’s Area and check out our latest deals.

How do I start a hot tub installation company?

There are several areas to cover if you’re going to set your business up properly.

Registration

First of all, you’ll have to register your business with HMRC and state your structure.

• As a limited company, you’ll have the benefits of better financial security and less tax to deal with
• As a sole trader, you won’t need to bring in team members, which can be an easier route when starting your business

That said, hot tub installation usually requires extra labour for heavy lifting and general support.

That’s why it is important to consider all angles when you’re looking at how to start a hot tub installation company.

Insurance

In the rare instance that a customer is left unhappy with your service or you make a mistake, you’re going to need the right cover.

In these cases, having hot tub business insurance will be really important to have in place.

Here are the main types of insurance to consider:

• Public liability insurance – Protects your business against customer claims if they believe you’ve damaged their property as a result of your work
• Employers’ liability insurance – If you hire employees, you’re legally required to have them covered with this insurance policy
• Professional indemnity insurance – Covers you in the event you make a mistake that causes the customer financial loss
• Tools insurance – Covers the cost of replacing your tools if they’re lost or damaged due to flooding, theft or fire

All Checkatrade members are required to have their public liability insurance up to date as part of our vetting checks. It’s why we’ve team up with insurance providers to offer it as a discount.

As a member, you could save up to 20% off the cost of your PLI. Interested? Sign up today and find out how much you could save.

Pricing

A fair pay rate will be important for securing hot tub installation jobs.

• If you set your prices too high, potential customers will look elsewhere
• But if you go too low on your pay rates, you’ll be struggling to generate profit for your business

It’s best to scout out the price ranges of your competitors. That way, you can find a balance and set a competitive pay rate going forward.

If you’re unsure about how to charge, don’t worry! We’ve put together a pricing template guide to help tradespeople just like you work out exactly what to charge.

Finances

The only way you’ll know if your business is profitable is by keeping a close eye on the numbers, so you’ll need to make a habit of checking the ingoings and outgoings.

Being aware of your cashflow will allow you to have a good idea of how your business is performing. That way, you can see where you might need to make some financial changes.

Along with transactions, you should also keep on top of your taxes. There are several taxes that’ll apply to your business, so it’s important to understand what you should be filing on a regular basis.

Some key costs to consider:

• Setup costs
• Material costs
• Staffing costs
• Fuel costs

If you’re struggling to get your head around it all, or need some extra help documenting them, you could always hire an accountant.

Business plan

Preparation is key when starting a business, so you’ll need to put together a solid plan that covers the ins and outs of your service.

You want your business to:

• Suit your skills
• Match your expertise
• Stand out from the competition

For example, if you have construction skills alongside your ability to install hot tubs, you could offer to lay foundations as part of your hot tub installation service. It is one of those other factors to consider when you’re looking at how to start a hot tub installation company.

By applying these ideas to your business plan, you’ll have the potential to establish a profitable niche and attract more clients.

Marketing

When starting a business, it’s vital that you take steps to attract more customers and grow your client base. This means you’ll need to use marketing strategies that promote your start-up effectively.

Becoming a Checkatrade member is a great way to do exactly that. While you might traditionally rely on word-of-mouth recommendations, Checkatrade allows you to build an online portfolio that displays your customer recommendations for all to see.

Being featured on Checkatrade should play a key part in your marketing strategy. However, you should also consider:

• Print marketing (i.e. magazines, papers)
• Website
• SEO & PPC
• Social Media
• Networking
• Affiliates / referral schemes
• Strong branding on your van

Make sure you set up and trade in an area where there’s plenty of opportunities. It makes no sense targeting homeowners who have small gardens where a hot tub won’t fit.

That said, there are a range of products designed for urban living, so think about how you can offer these if you’re based in densely populated area such as London or Manchester.

FAQs

Do you need an electrician to install a hot tub?

Under Part P of Building Regulations, it’s a legal requirement to have all electrical wiring work carried out by a fully qualified electrician. Seeing as hot tubs include electrical wiring, installation will need to be completed by someone with electrician qualifications.

What is the average cost to install a hot tub?

If the hot tub only needs basic electrical work to be installed, this will usually cost between £100 to £350. But, if you have to factor in delivery, new wiring and accessories this may add up to significantly more. In these scenarios, the price can vary from around £750 to £2000.

Content disclaimer: This content has been created for general information purposes and should not be taken as formal advice. Read our full disclaimer here.