The global HVAC systems market is expected to reach USD 197.50 billion by growing at a CAGR of 5.9% from 2021 to 2028.
By looking at this substantial market size growth, you must have set your mind to start your own HVAC business this year. Is it? Well, that’s the best decision you’ve made.
To start a new HVAC business, you need to deal with various factors like creating a business plan, purchasing essential HVAC equipment, the number of HVAC technicians to include, getting more customers, and building robust marketing strategies.
Sounds difficult? To make it easy for you, we have come up with an article that depicts how to start an HVAC business from scratch. We have covered the essential steps and shared some of the business tips that help you start your business. Shall we start?
Table of Contents
What is HVAC Business?
HVAC is an abbreviation for Heating, Ventilation, and Air Conditioning.
The HVAC business is a type of business that offers specialized services for heating and cooling equipment installation, such as central air conditioning units, furnaces, and hot water heaters.
Some of the services that HVAC provides are:
- Gas/oil heating
- Air conditioning
- Air ventilation
- Air distribution
The HVAC business typically handles the climate control systems that are installed in our home or office buildings. HVAC businesses quickly adopt the new innovative techs to enhance the performance of both HVAC firms and technicians.
Key Steps For Starting an HVAC Business in 2021
After having a look at the basics of HVAC business, it’s time to focus on the key steps to start a new HVAC business.
Start With a Business Plan
For starting a successful HVAC business, you must begin with an effective business plan. A business plan defines the complete roadmap of your running business.
If you plan to take funds from banks or investors, you need to create a solid business plan mentioning the complete and appropriate details about the working operation. It will help them know about your business goals, finance conditions, and also your business.
You need to consider the following metrics in your business plan.
- Cover page: It should contain your attractive logo, company name, roles & responsibilities, mission, vision, address, and contact details.
- Executive summary: Here, you need to summarize your company information like income and expense forecast, required funding details, and what makes you different from other competitors.
- Business overview: You can describe the details of your company like business type, trading name, and, most importantly, the business structure.
- Business description: You can mention your company information like goals (short-term or long-term), location, and services like furnace repair, air conditioning installation, and tankless water heater installation.
- Market analysis: Make proper research on the running market and competitors to identify the target market’s age and income and their relationship to managing the services.
However, various business plan templates are available in the market, making your work easy to create proper planning.
Make a Decision on Startup Costs
To start your HVAC business, you need to make sure that you have applied for the legal laws to operate your business.
A license is mandatory as it is related to regulating trades daily. Usually, there exist different types of licenses you can opt for based on your business location and expertise in HVAC.
Once you obtain a license from your state or government authority, you need to register your business. For registration, you need to make sure that the following items are available with you:
- Your business name: The small business owners must select a name that sounds unique, professional and describe the services you offer.
- Contact information: You need to provide an appropriate business phone number and email.
- Business address: You have to include your office’s address, whether owned by you or a rental property.
- Business license and registration: Just provide the license number, tax number, and registration number to prove that you are doing legal operations.
- Trade License: Many states need a trade license from a government authority to start a new HVAC company.
- Business insurance and bonds (LLC): Having protection and separating personal assets is essential. Insurance and bonds do the same for you.
You need to perform each of the metrics mentioned above to start an HVAC company for the first time. No doubt, it’s going to cost you more during the starting stage.
Additionally, you can also contact an expert consultant or business advisor if you are stuck somewhere.
Set Customer Service Standards
Customer service is the essential aspect to get huge business success. A service provider wants to make the business grow by providing the best services to the customers.
To be on top of the competition, you must provide excellent customer service entirely different from other competitors. In addition, your goal must be to make more clients by using the services and recommending others to use them.
To set customer service standards in your business model, there are two possible ways:
- By hiring employees who sustain your business values
- Treating your customers with empathy and compassion
Launch Your HVAC Business
Now, it’s time to inform everyone that your HVAC company is ready to hit the market. You can start by sharing the information with your friends and family members because they are prepared to take a party from you.
However, there are some of the best techniques that help you to share awareness among the public.
- Before a few days before launching, you need to be ready with websites, local listings, and even social media pages and start working on SEO
- You need to ask your friends and family to check Facebook pages and share their reviews on Google My Business.
- Before launching, just two months ago, send the executive summary about your business to a local news channel and inform them of the date of opening your business.
- Doing an email campaign about your launch
- Distributing flyers to the local areas by briefing the company information
- Using Facebook ads or Google ads by taking multiple online training courses or talking to a professional advertiser.
Market Your HVAC business
Marketing is an essential metric that helps your business to get more and more customers regularly. The HVAC business is not an exception.
There are different marketing methods that you can include in your business to enhance productivity and customer service to a great extent.
- Building a robust website mentioning everything related to your services
- Applying SEO strategies for enhancing target audience
- Creating a useful Facebook business page
- Working with social media ads as a marketing strategy
- Using email marketing for reaching more customers
- Making use of word of mouth to connect with potential customers
- Invest in flyers and business cards
- Collect online customer reviews
- Brand your vehicles using stickers
- Upsell your HVAC services by marketing to clients onsite
6 Important Tips To Consider Before Starting an HVAC Business
There are some of the essential tips that you need to consider before you start your HVAC Business. Let’s discuss them in detail.
Choose a Specialization
First of all, you need to analyze the marketing scenario of your competitors and identify the services that they are lacking. It will give you a chance to concentrate on specific services and there exist more chances of getting customers in your business.
If you are weak in a specific service area with high competition, you can easily opt for training. In addition, there are some standard services that you can include in your business, like troubleshooting:
- Heat pumps
- Gas furnaces or gas heating
- Air conditioning units
You can also consult on ENERGY STAR appliances for homes or commercial buildings or specializing in other areas of expertise.
Create a Growth-Oriented Future Plan
The next thing you need to consider is how to expand your client base in the coming years. So, you can include the core services at a lower price or at a discounted price to attract customers.
Likewise, you can also make a list of clients that can be quickly served within a week, thereby improving the chance to reach the financial goals.
As it involves more physical labour, you need to make sure that it does not overbook and provide high-quality services to its leading customers.
One of the biggest and complex considerations to keep in mind is to fix a price point for starting a new HVAC company. You need to make a list of mandatory items like labour, essential consumables, and, most notably, taxes.
Apart from these essential parameters, you also need to consider the hidden costs as it plays a vital role for the sales team to enhance your business productivity. Tools deprecation and equipment maintenance are examples of it.
If you start charging heavily compared to other competitors, you will surely lose your customers. However, it does not mean that you need to keep very low pricing just for customer attraction, as it leads to reducing your business performance.
Research well for the charges that other competitors keep. So, you’ll get an overall idea to keep the pricing that suits you the best for you and your customers.
Partner With Construction Firms
You need to be in contact with many construction businesses as there are more chances of getting a customer base. So, you need to make them ready to become a partner with you by proving to them you are a dependable HVAC resource.
The biggest and best long-term leads that HVAC business owners can opt for are the commercial and residential building contractors. The reason behind it is that they possess a healthy skill level to build homes and office buildings from the ground up.
Also, the project managers involved in renovation purposes may require HVAC industry experts to determine if a heating or air conditioner unit should be repaired or replaced.
Tools and Equipment
Now, you need to get all the essential equipment that helps the workers to work on the job site.
You need to get started by making a list of all the essential tools that make HVAC work easier. They play an indispensable role in installing, repairing, and even replacing the systems. In addition to it, you can also include advanced equipment with the latest technology.
However, some essential devices like drill machines, pipe wrenches, tape measure, staple guns, and more that you can include in your business.
Field Management Suite
Finally, you can include field service management (FSM) software in your HVAC business. FSM software smoothly manages your daily business operations.
With its impressive feature to streamline field-based operations, you can easily make your hard work more comfortable managing and efficiently dealing with your business tasks.
FSM software is a boon for many home service businesses as it provides essential features like:
- Job schedule and dispatch
- Work order management
- Mobile access
- Parts inventory management
- Case, contact, and order management
- Auto-invoice generation capabilities to prompt revenue generation
- Automated customized reports
- Push notifications
- Seamless integration with the inventory control system
So, these were the essential tips that help your HVAC company generate more revenue and improve business productivity. After looking at the steps and tips, if you still have any questions related to the HVAC business, we have come up with a FAQ in the next section.
Looking For Automating Your HVAC Business Operations?
FieldCamp is a field service management software that helps you easily create, manage, and track the job schedule for your technicians, fast.
The HVAC industry includes average startup costs a bit higher as you need to purchase a used vehicle and work to keep your equipment costs low. On average, the price could easily reach $100,000 if you are buying everything.
For generating revenue, you need to be perfect in planning your business. Some of the best recommendations that you can do are:
- Writing an effective plan
- Add upselling into your marketing plan
- Focus on customer service
- Improve your scheduling and efficiency
- Collect deposits
- Improve your invoicing strategy
To find an HVAC technician, you can start by asking local contractors, suppliers, and other trade professionals that you work with. If you’re a member of the local union, contact them, as well. hired technicians based on employee referrals.
I hope you are now ready to start your own HVAC business.
If you apply the steps mentioned in this article, you can easily start your own HVAC company with enhanced business growth. You need to be careful when creating your business plan, licenses, and other essential tools.
To automate and streamline your HVAC business operations, we recommend you to adopt FieldCamp in your business. FieldCamp is a field service management software that makes it easy for you to manage your HVAC technicians and improve your business productivity.