Whether you plan to sell your HVAC business in a few weeks, months, or years, there are some items you should cross off your task list before listing for sale.
HVAC businesses are unique, and there are certain things you can do to make it as attractive as possible before you begin your marketing-to-sell process. Here are five tips for boosting the selling price of your HVAC business:
1. Cultivate a Solid Team for Your HVAC Business
Half the battle of building a successful business is cultivating a healthy and strong culture at the company. When you create a joyful environment where your employees feel heard and look forward to coming to work, many other things fall into place.
A company with a reputation for positive company culture will attract and retain top talent with little turnover, creating a little family and camaraderie among your team. In turn, this creates a pleasant experience for your clients. To cultivate the best company culture possible for your HVAC company, you’ll want to:
- Define Your Company Value
- Have a Thorough Hiring Process in Place to Attract the Right People
- Be a Leader in Creating a Positive Work Environment
- Prioritize Communication
- Embrace Technology
- Give Back
- Strive for Continual Improvement
2. Build a Loyal Customer Base
A loyal customer base will help you tremendously when it comes time to sell your HVAC business. Customer acquisition is vital for the success of any business, especially the HVAC industry. Consider these marketing tips for acquiring loyal customers:
- Start an HVAC Customer Referral Program
- Use Video Marketing or Social Media Marketing
- Send Targeted Emails to Gain Leads
- Encourage Customer Reviews
- Ensure You Accept All Major Forms of Payment
- Advertise in Local Publications
- Get Involved in Your Community
3. Focus on Financial Performance
Essentially, you need to have clean books and clear records. Staying on top of your HVAC company’s accounting is one of the best ways to ensure a profitable sale when it comes time. This can be challenging if your area of expertise lies in HVAC technology rather than balancing books and calculating numbers.
Most HVAC business owners started their company because of their HVAC knowledge rather than math skills. However, don’t let that be an excuse to neglect the accounting side of your business. You must keep track of your financials to expect long-term success.
As if the numbers don’t overwhelm you enough, the contracting side of your business entails keeping taxes, wages, and costs in order. Here are some tips and tools to make the process easier.
- Track Expenses Regularly and Check for Accuracy
- Use QuickBooks or a Similar Tool to Manage Your Books
- Utilize HVAC Software to Manage Work Orders and Generate Invoices
- Monitor Credit Card Statements to Catch Discrepancies
- Track Inventory and Equipment
- Consider Hiring a CPA Firm to Manage Your Books
- Don’t Put Off Processing Invoices and Receipts
4. Create a Standard Operating Procedure
The world of business today is fast-paced, cutthroat, and ever-evolving. Efficiency is everything to stand out in the world of HVAC businesses, and organization is vital in optimizing operations to maximize productivity and produce exceptional services and products. One of the most powerful tools in achieving this is a Standard Operating Procedure (SOP). An SOP is a step-by-step guide with instructions for routine tasks and processes within a company.
SOP’s are a reference for employees; no matter who comes and goes, there’s a guide to train and teach the right way to perform tasks to ensure efficiency and correctness. It’s a great way to keep on-boarding new team members organized and thorough. SOP’s also:
- Supply Consistency
- Ensure Efficiency
- Promote Compliance
- Aid in Training
- Allow for Continual Improvement
Ensure your SOP contains a clear title, objective, and scope of the boundaries and limitations. You should outline roles and responsibilities, all materials or equipment required for jobs, and the proper procedures with simple step-by-step instructions. Don’t forget the troubleshooting information and references.
5. Do Simple and Small Things to Differentiate Your Business
What is unique about your HVAC business that is not only going to attract exceptional technicians for hire but will also help to acquire a loyal customer base? Many HVAC companies are out there, so setting yours apart from the rest is crucial.
Sometimes the smallest changes and upgrades make all the difference in your appearance, brand, and reputation. Here are some small and simple things that will help boost the sale of your business:
- Implement a Uniform Program to Make a Professional First Impression
- Work with a Designer to Create a Memorable Logo
- Make Improvements on the Exterior of Your Business
- Focus on HVAC Safety, Health, and Comfort
The Bottom Line
Implementing these five simple tips will help exponentially boost your HVAC business’s selling price. A healthy work environment makes all the difference and helps to create a solid foundation to build upon. Being involved in your employees’ training and development also helps foster a family-like bond among your team and cultivate a group of team players. Caring for your business and maintaining the small details that make the most significant difference when it counts is essential. In addition, hiring an HVAC business broker can help you fine-tune and spruce up your business in all the right ways.