Do you have plans of starting your very own business as an HVAC technician? Do you find yourself working in the industry but don’t want to be supervised? You probably desire to become a boss. Also, if you are mechanically inclined and have excellent skills for troubleshooting, then these are an indication of you starting your own HVAC business. However, aside from having the guts, skills, and financial strength, you must firsthand know that most HVAC businesses today have the highest failure rates out of all new ventures.
But don’t be discouraged because there’s a piece of good news. There are some recent changes in the energy efficiency standards and these changes will fuel even more growth in the HVAC industry. Additionally, these changes have prompted improvements in the HVAC equipment as well as the subsequent replacements of any outdated installations, which is a great advantage.
Further technological advancements are also playing a more crucial role in the HVAC industry’s products and operations. And these advancements and new technologies like subcontractor scheduling software will better equip HVAC contractors to run their business more efficiently.
This article will serve as your guide and give you practical tips on starting an HVAC business from scratch.
Step 1: Start with a Business Plan
A good HVAC business starts with a well-defined business plan. In this document, you’re going to define your target market, local competition, marketing plan, financial obligations, business structure, and revenue projections, and so on. Taking ample time to create a business plan will keep you on the right track, making it easier for you to secure start-up funds from other investors and banks.
Market research is very important to determine how feasible your HVAC business will be. You have to know firsthand how many other HVAC companies are within your service area, your competitors, the number of homes and commercial buildings, the competition charges and so much more. You can acquire tons of helpful information from the US Chamber of Commerce and Bureau of Labor and Statistics (BLS).
Step 2: Determine Start-up Costs for Your HVAC business
Building your own HVAC business will cost you a lot of money and you cannot afford to make mistakes. However, one of the biggest, if not common, mistakes you can make is failing to account for all business expenses. You’re entering an industry where the average start-up cost is slightly higher, spending anywhere from $2500 to $10000.
If you buy everything up front, the overall cost can easily hit $100000. You will need:
· Liability insurance and workers compensation insurance
- General tools used in HVAC like electrical testers, Sawzall, batter-powered drill, etc.
- HVAC and construction tools intended for sheet metal work
- · HVAC tools for air conditioning work and other supplies
- A vehicle big enough to transport all your equipment and tools.
- Safety equipment and vehicle signage.
- Website (it can broadly help you get started)
- · An online inventory software that gives you information on a particular asset’s repair costs expected lifespan and maintenance history.
Step 3: Education, Skills, and Certification for HVAC Business Owners
Before you can start to work as an HVAC tech, it is crucial to complete an HVAC certificate program from a particular accredited school or program, depending on which state you belong. Next, you have to get your HVAC license from the state you choose to work. You also need to pass several certification exams for all sorts of HVAC careers.
Here is a list of all types of HVAC certifications every HVAC tech has to obtain:
- EPA Type II Certification – For Servicing High-Pressure Systems
- EPA Type I Certification – For Servicing Small Appliances
- EPA Type III Certification – For Servicing Low-Pressure Systems
- Universal EPA Certificate
North American Technician Excellence (NATE): Offers professional level certifications for professionals. Areas of certification include:
- Air Conditioning (AC)
- Air Distribution (AD)
- Heat pumps (HP)
- Oil Heating (OL)
- Gas Heating (GS)
- Hydronics Oil (HO) service only
- Hydronics Gas (HG) service only
- Light commercial refrigeration (LC) service only
- HVAC Efficiency Analyst (Senior Level)
- Commercial refrigeration RC service only
The programs cited above are available for those who have interests in earning many higher credentials. You should earn many certificates now that you are planning to start your own HVAC business. Having these credentials and certifications will make you and your business more reliable and trusted.
Step 4: Make your HVAC Business More Professional
To build trust with your clients, particularly if you had just started the company, you have to take steps ahead and become more professional. Being professional involves building a website where details of your company can be seen, including what you offer, alongside a business email. You may wish to have a voicemail set up, especially if you cannot answer the phone every single time.
Dress in a shirt with your company logo and name. You can also add signage to the company’s vehicle. Doing so will help improve your professionalism.
Step 5: How to Make More Money and Attract More Customers?
In general, all business owners want to gain more money and so are you. However, it’s easier said than done. You can apply the following five cost-effective strategies to establish your company’s reputation, deal and close more sales, and build your online presence without going into enormous debt.
Increase in sales
Despite the fact that your resources are limited, spend money and time on your social media and website. Your company’s website must allow you to chat with any prospects. Also, turn to your social media to generate more leads, helping you increase your client base. Post photos as proof of your finished job and share every feedback you got from your customers. Always use that to your advantage.
Increase word of mouth
Everybody in the service industry knows the importance of customer service is. Hence, make it your priority to deliver the best possible HVAC service to your clients. Your customers will share their experiences from getting your service. Happy and satisfied customers will have nothing but great things to say about your HVAC Company.
Always remind your clients that your company needs referrals and reviews to survive.
Keep a keen eye on costs. And just because you got the best deal, it doesn’t mean it’ll stay. If you research costs, find ways to save by purchasing your supplies in bulk, rewards programs to save on fuel, or getting discounts with some manufacturers. As your company grows, it is possible that you can leverage more and more discounts with large orders.
Choose a Specialty
Take a deeper look at your skill level and your competency. Figure out what it is you do the best. If you find it out, you have to offer that service first. For instance, you are best at repairing air conditioning, but you are not skilled at furnaces. Realizing your limitations is essential in servicing your customers. You don’t have to do a job if it’s not in line with your skills. If you have weak areas, you must undergo training to do well.
Step 7: Launch Your HVAC Business
Starting an HVAC business is very thrilling and exciting. However, it is entirely okay to start small. You can always choose to scale up full-time as you slowly become confident in your ability to serve customers well.
How can you start a Highly Profitable HVAC Company?
In fact, there is another excellent option if you decide to own an HVAC business – buying an existing company. Like other aspiring start-up business owners, they opt to purchase someone’s established business for some good reasons. Expect that you will automatically have a built-in customer base. It is a considerable advantage compared to starting a business from scratch, where getting and retaining customers is a bit difficult. Taking over someone’s business can provide you the opportunity to get their expert advice and guidance in handling this type of business.
Another excellent option is to join and get involved in a chain of franchises and be a franchisee. Franchises work very well for anyone who can afford and can pay for the initial start-up fees. Being involved in this venture will help you get the best position to gain more profit because of the name/brand recognition. In fact, a franchise for sale commonly has a higher rate of success compare to an average start-up business.
Please note that each option has its benefits and drawbacks and one isn’t better than the others. You need to be wise in choosing the right path for you. Speaking of being smart in making decisions, as a soon-to-be HVAC service provider, you need to invest in new technologies and software solutions for your business. To become profitable, a service provider like you must operate as fast and efficiently as you can. In running your new business, you can only achieve high efficiency and organization using construction scheduling software like Pro Crew Schedule!
Pro Crew Schedule is the backbone of today’s new businesses. It has powerful features that can provide the following advantages:
- Better team collaboration and communication
- Scheduling and time management
- Effective task delegation
- Resource allocation
- Time-tracking feature
- File control and sharing
- Subcontractor and crew management
- Remote working
- Cloud-based storage
- Can access anytime and anywhere
If you’re new to this fantastic tech, you can request a free live demo and enjoy your 30-day trial!
If you’re very interested in helping people keep their commercial space and homes at a comfortable temperature and save extra money, now is the perfect time to get your place in the HVAC industry. Launching a new business can be daunting for starters, but with the right mindset, people, resources, tools, etc., you can build your company successfully and establish a good reputation.