How to start a hot tub installation company

People are always looking for ways to add some luxury to their home, so it’s no wonder hot tubs are such a popular feature nowadays. In 2020 alone, demand rose by over 1000% as many sought to make the most of their outdoor space during lockdown.

But not just anyone can install a hot tub. It takes professional knowledge and skill to get them up and running, and customers need regular maintenance and support to keep them in top working condition. As such, now is a perfect time to set up your own hot tub installation business and make the most of rising demand.

Of course, going solo can be a daunting prospect, which is why this guide will 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, which will encourage them to hire your services.

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

 

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

With the amount of equipment required, you’ll need a way to transport all of it between jobs. That’s why owning a van is also essential for your business. Signing up to Checkatrade is a great way to cut costs when purchasing a van for your business. For instance, you can save up to 46% off a Fiat van through member benefits.

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. Despite these advantages it’s also worth considering sole trading, especially if you’re sure you won’t need to bring in team members. This structure can be an easier route when starting your business as there’s less paperwork to worry about.

That said, hot tub installation usually requires extra labour for heavy lifting and general support. For more information on the pros and cons when choosing your business structure, read our guide here.

Insurance

In the rare instance that a customer is left unhappy with your service or you make a mistake, you’re going to need protection from legal fees. In these cases, having hot tub business insurance will be really important for covering all bases. 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. Click here for more information on keeping your tools safe.

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 and expertise but also stand out from the competition, so keep these things in mind when outlining your service.

For example, if you have construction skills alongside your ability to wire hot tubs, you could offer to lay foundations as part of your hot tub installation service. Alternatively, you can use your experience with hot tubs to provide a comprehensive service that includes accessory installations and regular maintenance. By applying these ideas to your business plan, you’ll have the potential to establish a profitable niche and attract more clients.

Pricing

A fair pay rate will be important for securing business opportunities. 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 so you can find a balance and set a competitive pay rate going forward. If you’re looking to offer hot tub maintenance as part of your service and you’re not sure what to charge, you can check out our article here for some ballpark figures.

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 and see where you might need to make some financial adjustments.

In the beginning, you may find yourself operating at a loss due to the upfront costs of equipment, insurance and registration. If this is a concern, you could consider taking out a business loan to cover the costs while you get up and running. Just remember to watch out for the interest rates.

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. If you’re struggling to get your head around it all, or need some extra help documenting them, you could always hire an accountant. For more information on accountancy services, read our handy guide here.

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. This way, you can really enhance your reputation and make sure your business is being advertised to a wide audience of over three million monthly site users.

As online presence is so important for any business nowadays, you should consider setting up your own website that potential customers can access as a source of information and contact details. Creating profiles on social media can likewise prove very useful as you’ll be opening up your business to new audiences – plus you can segment your targets. You’ll also be able to drum up new business and develop client relationships by interacting with users and showcasing your best work.

It’s worth keeping in mind print marketing too. This is great for attracting local business, which will save you time and money on travel in the long run. You could distribute leaflets around surrounding neighbourhoods to raise your profile in the area.

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 like 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.