Buying an HVAC business could be one of the best investments you’ll ever make due to the industry’s projected growth and the continuous demand for HVAC services.
If you’ve lived in the same city or suburb for over a year, chances are you’ve seen your population grow. More people mean more houses, apartments, and businesses that need HVAC services. If you’re an experienced HVAC technician ready for a more significant piece of the pie, consider starting your own HVAC business or buying an existing one.
Committing to this venture may be one of the best decisions you ever make for your future. But keep in mind that hard work is still involved in ensuring success. Here is a five-step guide for technicians who want to translate their skills into a lucrative HVAC company.
1. Create a Business Plan
One of the key elements to a successful business is the planning that goes into it. The business plan is the foundation for building your business with direction and guidance. Determine what will set your business apart from other HVAC companies as part of your business plan. What will give you a leg up?
Your tangible business plan acts as your blueprint for building your business. In creating your plan, ask yourself these questions:
- What is my vision?
- What are my goals?
- What does my brand look like?
In addition, you’ll need to register your business to make it official. Determine your business structure and think about how big you want your business to be. Are you planning to be a one-person show? Or are you looking to make your business into an LLC?
2. Sort Out Your Responsibilities
As a technician, you did your job under someone else’s direction. As a business owner, you’ll wear a new hat carrying a new responsibility load. Now, you’ll manage technicians (unless you’re a one-man-band), sorting finances, and many other duties. On top of it all, staying on top of state, county, and federal industry regulations is essential.
Questions to keep in mind include:
- What are the local employment and business laws you must follow?
- What effects will your business have on the environment, and how do you plan to handle it?
- What safety and health regulations must you comply with to keep you and your team safe and by the law?
As a technician, you already know a lot about the HVAC industry and basic business operations. Don’t discount all the knowledge you already have and continue to build upon it. Talk to other professionals and conduct some research to run your business according to local and state regulations.
3. Raise Capital
Money may be the most significant stressor when forming your business. But that is also one of the biggest motivators to start a business–financial freedom. To begin your HVAC company, you must raise some capital. The costs may vary depending on whether you fly solo with your business or registered LLC.
First, make a list of every single start-up cost. And decide how much you’ll be charging for your services. Choosing costs for your services can be tricky, yet it is necessary. Overcharging may be detrimental and lead to losing out on potential customers who turn away due to the price.
On the other hand, undercharging is a sure way never to make a profit. Your price should be fair based on your skills, time, materials, and experience. Charging a tad under market value when you’re starting may be a strategic way to gain experience while building a positive reputation in your community, allowing you to raise your prices. When working up prices, don’t forget to factor in:
- Fixed Costs: Fixed costs are business costs that typically don’t change. Examples include insurance, vehicle payments, rent, salaries, utility, and phone bills.
- Variable costs: Variable costs may be harder to track because they vary based on business needs. Examples of variable expenses include materials, labor costs that vary per job, fuel costs, overtime pay, and specialty equipment.
- Other Costs: Don’t forget those miscellaneous costs as part of your qualifications, certifications, skills, experience, and the quality of your materials.
Then it’s either time to make a grand deposit from your savings, get some investors, or get a business loan–there are federal programs that may help as well. You could also consider joining a franchise. Some standard financing considerations include:
- A business line of credit and/or credit card
- A small business loan
- A government loan
- A private investor
4. Make a Marketing Plan
People will only know about your business with essential marketing and advertising, especially with all the competition. In planning your marketing strategy, capitalize on what sets your business apart.
Remember that business plan you created in step one? Pull it out to help you with your marketing strategy. While people love to find an affordable option, they’re even more interested in quality and uniqueness. Draw people in and use your marketing to be likable, and you will organically build a loyal customer base.
Things to consider when marketing:
- Determine your target demographic. For example, are you targeting commercial or residential? Are you looking for new installations, repairs, or routine maintenance?
- Determine your competitive advantage and niche. What are you best at? What can you do better or different than your competition?
5. Network, Learn, and Launch
One of the wisest things you can do when starting a business is to learn from others in the industry. Lean on past mentors by asking questions, shadowing them, and asking for advice when facing challenges. Pick your previous boss’s brain about their business operations. Learn from their mistakes and imitate their successes.
If you don’t have a network in the industry yet, spend some time on YouTube learning from some HVAC business experts. Podcasts are also an excellent resource for learning and can be the perfect entertainment while you drive from job to job.
Then, soak up all their wisdom and channel it toward the launch of your business. Although it may require some late nights, number crunching, and a spontaneous curse word here and there, determination and discipline are necessary characteristics for a business owner.
Whether buying an HVAC company or starting one from the ground up, take it one step at a time. All the tedious work, blood, sweat, and tears you put into building your business will be worth it when you’re your boss and starting to turn a profit. This can be the stepping stone to a better life for you and your family. As a technician, you already know so much about HVAC services and operations. Now it’s time to wear an enormous hat and continue to learn all that goes into being a reliable and honest business owner.
Infographic
If you’re an experienced HVAC technician seeking new opportunities, consider starting or buying an HVAC business. It can be rewarding, but success takes hard work. Explore this infographic for a five-step guide to turning your skills into a profitable company.
