You can start your HVAC business by taking the right steps and acquiring the necessary knowledge. HVAC businesses have high success rates because virtually everyone needs their services. There is always new construction that needs equipment and our current systems need repairs or replacements. If you have the training and experience, this may be your opportunity to launch your own dream business.
To start your HVAC business, you need a practical business plan that comes from adequate research of current markets in your area. You will need start-up financing and all-around skills to successfully manage and expand your operations.
Before you make plans, talk to several HVAC business owners that don’t work in your anticipated service area. They will not see you as a competition and should be more willing to share their dos and don’ts about business ownership. Let’s get started.
Start Your HVAC Business With Training And Experience
Obviously, you need knowledge, skills, and experience to know what you are doing to start any business. The essential knowledge and skills are developed in a technical college HVAC training program. Some experience is incorporated into the training because students work with real-world devices, equipment, and systems in the labs.
You can earn an Associate of Occupational Studies (AOS) Degree, go to work for an established HVAC company for a few years, and become certified in the industry to prepare yourself. Once you have accomplished all this, you should choose a market niche and create a realistic business plan. Organizations are available that provide both free and paid planning services to help you get started.
Create A Realistic Business Plan
Now it is time to make plans for your dream business by creating and writing a professional business plan. Do not skip this activity because it could lead to what you do not want –failure! The U.S. Small Business Administration has a division called SCORE where counselors provide invaluable advice. A sound plan consists of these components:
- Management – Will you initially work alone, select a partner, or hire an employee assistant? The self-employed must wear three hats to be successful – entrepreneur, manager, and technician. What activities will you delegate to a partner or employer if you have one? Learn to effectively schedule appointments.
- Marketing – What market niches will you work in – residential, commercial, or industrial? You should research all of them and narrow your services to one or two. You can even find narrower markets within each of them. Remember the 3 Rs of marketing: Research customers, Reach customers, Retain
- Finance – Determine the startup costs and where you will obtain financing. Create a profit and loss statement for the first three years. Decide on the salary you will receive and what employee benefits you want, such as insurance and retirement. Let’s delve further into financing your business.
| “HVAC businesses have high success rates because virtually everyone needs their services.” |
Determine Start-Up Costs And Locate Financial
If you start as a strict service business, your capital layout can be minimal by providing:
- Inspections and troubleshooting
- Repairs and replacements
- Selling annual service contracts
- A truck and essential tools
- Keep little to no inventory on hand
- Paying for accounting and tax services
You can estimate the costs for this list and select the best place to secure financing. If you plan to buy a new truck, specialized tools, and purchase equipment and systems to keep on hand, you will need much more money. Financing can be secured from these sources, if applicable:
- Personal savings
- Financing from family
- Bank loans
- Venture capitalist funds
- Credit cards
- Sell personal items
Once you have costs and financing under control including how you will pay back loans, you are ready to begin.
Start Your HVAC Business With Professionalism
You, your employee(s), and your truck need to look sharp. Wear a good-looking uniform with your business name on it. Your truck or van does not need to be new, but keep it clean. Learn to treat employees and customers like a pro and they will appreciate it. Customers want to be:
- Treated with respect and dignity
- Provided with references
- Assured you will show up on time or close
- Provided with super service with no shortcuts
- Given fair prices with no hidden costs
- Followed up after the work is completed
Speedy service is a strong asset for any HVAC business owner. When you treat your customers right, you will have cash flow. Treat them poorly and you may wait longer than expected for payment. Be sure to respect their time and they will appreciate it.
Increasing Sales And Staying Afloat
Going back to the 3Rs of marketing, there is nothing more important than researching and knowing your market. This concept includes potential customers as well as current customers. When you know the wants, needs, and demographics of your market, you can serve them well.
You must ‘reach’ or promote to customers in your market. Find which of these works best:
- Paid advertising in the best media
- Use your own website
- Eye-catching business cards
- Customer referrals
- Word-of-mouth promotion
- Promotion Software
- Email marketing to current customers
- Canvassing door-to-door
Two other things you can do are start a customer referral program for leads and use vehicle wraps on your van or truck. Learn to manage, market, and finance your HVAC business like a pro, retain most of your customers, and you will stay in business for a long, long time. Call us today at (877) 591-1070 for more information about all our programs!
For more information about graduation rates, the median debt of students who completed the program, and other important information, please visit our website: https://www.iticollege.edu/disclosures
