Industry research shows that many new contracting businesses can trace their beginnings back to a slowdown in business. Unfortunately, the plumbing-heating-cooling (p-h-c) industry is cyclical in many areas and when a downturn in business arrives, many companies tighten their belts by cutting labor.
A newly unemployed technician remembers how much his last employer was charging per hour and "knows" he can charge less than that and still be making money hand over fist. So that technician with a pickup truck, tools, and excellent skills decides that it's about time to start working for himself. Some paperwork is filed and a new contracting business is born.