If you ever had a dream of starting an HVAC business, then now is the time. The entire world is experiencing changes in climate. The summers are getting hotter, while the winters are becoming cooler. These changes have led to an increase in the need for HVAC systems across all buildings. According to a recent estimate, the global HVAC market is expected to grow from $142.57 billion in 2021 to $202.14 billion in 2028 at a CAGR of 5.1%
However, starting an HVAC business from scratch is not an easy task, even with optimistic numbers like these. Firstly, HVAC is a ‘highly technical’ business. Secondly, it has many variables to be managed carefully. To run a successful HVAC business, you need to be both a technician and a businessman—a rare combination. Alternatively, you can have a partner who complements your business or HVAC skills.
With that basic introduction, let’s now dive deep and understand how to start an HVAC business from scratch in 2022.
5 simple steps to build an impressive HVAC business
Following the below steps will ensure that you not only start an HVAC business from scratch successfully but also reach the right kind of people and beat your existing competition
Step 1: Start with a business plan
The first step in any business is always to devise a business plan. However, this is also one of the most complicated steps for you to accomplish. A lot of time and effort is needed to create a business plan that will ensure you are on the right track. But what exactly is a business plan? It is nothing but the blueprint of your business’ growth.
If you are looking for investors or loans, you can expect to spend time perfecting your business plan. It is a crucial document and will help gauge the growth prospects of your business.
You can prepare a business plan based on your business requirement. Here are the different steps:
- Start by understanding the HVAC industry better.
- Find out your mission and vision.
- Perform thorough competitor analysis; it helps you understand what your competitors are doing right and wrong.
- Interact with contractors in your industry and understand the market condition better.
Add the findings of all the above steps to your HVAC business plan. Understanding these pointers will give you a thorough understanding of the whole HVAC ecosystem better.
Step 2: Plan the finances
The budget to start an HVAC company can vary depending upon the business structure. However, there are many expenses that you need to account for before starting the business. So make sure to understand all of them. Fixed costs predominantly include insurance, vehicles, stationary, and other one-time or recurring expenses that are predictable and do not fluctuate.
These are essential for your business. Then comes the variable costs. As the name suggests, they vary for every project you undertake. For instance, the price of materials and labor will change from project to project. You do not want to be left financially stranded because you failed to cover expenses.
The next thing to plan is—how to charge your clients. Deciding how much to charge for a job is critical. You do not want to undercharge your clients, but you don’t want to overcharge them either. Both can be harmful to your business in the long run. Again, we go back to the step of understanding your expenses. Once you know what all your costs are, add your margin on top of it. You should also consider your skills, certification, experience, target market, and quality of materials when quoting the final price.
To start your business, you will likely need the essentials: your own office space, a few employees, HVAC service software, scheduling and dispatching software, and an inventory of HVAC equipment and instruments. Then consider getting insurance on these tools as they can be easily stolen or misplaced. If you have enough money, well and good; if not, you need to look for business loans, government programs, or investors to start the business.
Step 3: Find and train the right team
If you are an HVAC technician yourself, you can kickstart your business by doing the service work yourself. However, it is essential to have certifications as some states mandate them. When you perform the work yourself, you do not have to worry about labor costs, potentially increasing your profit margin.
However, as the business grows, you will not be able to keep doing everything yourself. You will need to hire technicians who can perform site visits while you manage them and your business. But this also leads to a significant challenge—how do I build a team from scratch?
Remember this—when hiring technicians for your business. You need to look at multiple factors, not just their technical skills. Go back to your business plan and review the type of company you want to build. You should also have determined the kind of culture you want to foster inside your company. Make sure the candidate shares the same values that you want.
The key question to answer is—would their certifications and values match the state’s requirements and the culture of your business? If yes, then they should be on your team.
There are a lot of job boards and skilled candidates available in the market. So it is not difficult to find “a candidate,” but finding the “right candidate” might take time. Do adequate screening, meet multiple candidates, and determine who would be a good fit before deciding to extend an offer.
Once you have the candidates, you might have to train them on the work. Most of them will still be raw in terms of skills, especially if you hire inexperienced technicians. Teach them people management skills in addition to technical skills—plan regular training for your employees to keep them updated with the industry practices.
Step 4: Market your business
The demand for HVAC contractors may be high, but the competition is also equally high. There might be thousands of contractors trying to find customers in your city. So a well-defined marketing strategy for your business becomes a necessity. The more competition there is in your target area, the more vigorous your marketing should be.
Start your marketing by listing your business in all local listings and directories. Doing this will make your business more visible in your vicinity. You can add your business to Google My Business. It will ensure your business comes up when someone searches for HVAC contractors or technicians on Google.
Try building a website for your business. Gone are the days when you had to depend on website developers for your website. Today, low-code/no-code platforms like WordPress, building a website has become child’s play. Having a website will build trust and serve as a platform to showcase your achievements, expertise, and certification details.
Similarly, you should have a solid social media presence. Most modern customers are already on social media, so it is only natural for you to have a presence there. So, start a social media page on platforms like Facebook or create an account for your business on Instagram. Then regularly post about your company, projects, and work culture. A company with a web presence is more accessible to your prospects. You can also run PPC campaigns and perform SEO to boost your online visibility if you have the budget.
Step 5. Launch your HVAC business
Now all that’s left is to launch your business. But before that, make sure you have got all the required business licenses to start the HVAC business.
Post about your launch on multiple platforms simultaneously to create a brand presence. Try to involve your friends and family in spreading the word about your business.
With the business launched, it is time for management. Keep an eye on the budget. You might need to rework the business plan and keep it updated as you move along.
Conclusion
A lot of time and effort goes into starting an HVAC business. But it will be worth it when your business is successfully launched and starts flourishing. Remember the mantra—the key to creating a successful HVAC business is writing a good business plan, making the most of your skills, and adopting a customer-centric approach.
