Heating and Air Conditioning Business Overview
A normal day as a certified HVAC (Heating Ventilation and Air Conditioning) business owner will revolve around two main tasks: installation and service.
HVAC system installation means installing the main units both inside and outside a building and then running ductwork. Service work requires finding problems with older systems and fixing them as well as seasonal maintenance
This type of work can sometimes be dirty and often service calls occur in most extreme weather conditions.
HVAC Business Considerations
There are a few things to consider when getting into the HVAC business.
First, consider whether to start from home or to rent a shop. Starting from home saves money but in some cities and towns, it may be illegal.
Next, consider specializing in a certain style of HVAC. You could specialize in residential or commercial systems. Also, consider different systems specialties like heat pumps or geothermal heat systems that could give you an edge in your market.
Finally, think about what type of business you want. There are HVAC franchises available such as One Hour Heating & Air®. The benefit of a franchise is name recognition and a proven business model. The disadvantage is paying the franchise fee. Plus you can’t deviate from the business model.
Tasks and Skills Needed to Operate when getting into the HVAC Business:
Whether you do all the work yourself, hire, or subcontract, here’s a list of tasks that need to be attended to when operating this type of business.
Also, see How To Become An HVAC Technician
HVAC Business Tasks:
- Invoicing clients
- Setting up service contracts
- Scheduling service calls and installations
- Scheduling employees
- Setting up contracts with suppliers
- Staying current with certifications, business licenses, and insurances
- Tax record keeping
- Developing competitive estimates
Industry Specific Tasks:
- Knowledge of different HVAC systems
- Operate diagnostic tools
- Installation of main units
- Installation of ductwork
- Creating custom-built ductwork
- The ordering of supplies and equipment
- Service work on old models
- Keeping up with new technologies
HVAC Business Approximate Required Daily Hours
General Hours of Operation – Most HVAC businesses have normal business hours – 9:00 a.m. to 5:00 p.m., but often they offer 24-hour emergency service.
Hours Needed to Prepare – Plan to spend about an hour loading equipment and getting to your destination. At the end of the day, plan on closer to two hours to clean and store equipment and do paperwork.
HVAC Business Employee Requirments
During the startup phase, you can run this business single-handedly. Once your business is up and running successfully, you may need to hire:
- Licensed and apprenticing crew
- General office administrator
- Sales crew (possibly)
- Common staff positions needed to run some businesses
You must get the proper HVAC training from an accredited school in order to obtain a license to practice HVAC contracted services in your locality.
While regional requirements may be different, most HVAC technicians must have a minimum of two to four years of HVAC training and a license before performing HVAC services for others.
You will also need a business license, Federal Employee Identification Number (EIN), insurance and possibly incorporation paperwork such as an LLC.
Approximate Minimum Startup Cost:
The average startup cost may vary according to your business plan. Entrepreneur Magazine estimates that the average startup for an HVAC business is between $2,000 USD and $10,000 USD. However, buying a brand new work van and large amounts of inventory would significantly increase startup costs.
Necessary Equipment & Supplies
- Truck or van for equipment, supplies, and transportation
- HVAC testing equipment, meters, gauges
- Basic hand tools (pliers, hammers, wire strippers, light, etc.)
- Specialty tools (valve core removal tools, duct knives, and staplers, etc.)
- Supplies, such as tape, screws, WD-40, degreases, Cable Ties, etc.
- Safety equipment (gloves, glasses, dust mask, etc.)
- HVAC software
Monthly Expenses to Consider:
- Vehicle costs (fuel, insurance, maintenance, etc.)
- Answering and/or cell phone service
- Tools and equipment
- office supplies and operating cost
Special Requirements for This Business:
- Excellent time management skills
- Provide On-call emergency service
- Stay up to date with Diagnostic tools and advancing technologies
- Licensed HVAC technicians
Pros and Cons:
The Pros of Running an HVAC Business:
- The constant demand for climate control
- Ever-growing business
- Both installation and service incomes available
- Possibly high-profit margins
The Cons of Running an HVAC Business:
- Physically demanding work
- Changing technology requires staying up to date with changes
- often a very dirty job (crawl space and attic work)
- Deal with weather extremes
- Clients can be irritable when their units break down
Type of Customers You Need to Attract:
Since most climates have both hot and cold extremes, climate control is essential in most places. Clients can include homeowners, home developers, and commercial buildings owners.
HVAC Business Statistics:
As a specialist, HVAC technicians are in high demand. According to the Bureau of Labor Statistics, there were over 308,000 HVAC employees in the United States. Over the next decade, estimates suggest that the industry will grow by 28%.
In addition to new installation, units that are already installed need to be replaced every 10 to 15 years.
Installation of a new system can cost several thousand dollars. However, profits of installation may be low 5 to 10%. Service calls and contracts can vary as well.
Contractor Excellence, an HVAC industry magazine, says that a typical service call may be over $225 USD (including a diagnostic fee and flat repair fee.)
The article continues to say a service contract could be $400 USD a year. In the end, total revenue can vary greatly depending on location and competition.
HVAC Business Plan
HVAC Business Plan | OGScapital.com
How much do HVAC business owners make? | hvac-talk.com
HVAC Contractor Salaries in the United States | Indeed.com
How Much Does HVAC Business Insurance Cost? | Insureon
HVAC Insurance – Dalton Timmis Insurance | Daltontimmis
HVAC Technicians Insurance | Mitchell & Whale Ltd.
HVAC Contractor Insurance | Bolt Insurance
Plumbing and HVAC Business Insurance | Nationwide
HVAC Certification: Ultimate Guide | Hvwtech.com
Which HVAC Certifications Should Technicians Have? | Angie’s List
How to Start an HVAC Business [The Complete Guide] | Fieldpulse.com
8 Ways Advertise & Market Your HVAC Business | Service Max.com
How to Start an HVAC Business | ehow.com
HVAC Systems | SBA.gov
The 7 Biggest Mistakes That HVAC Contractors Make | Energyvanguard.com
8 Tips for Running Your Heating & Cooling Systems Efficiently | The Eco Friendly Family.com
6 Tips to Keep Your HVAC System Up & Running | Brown Heating & Cooling
HVAC Maintenance Checklist | Trane
9 Tips to Keep Customers HVAC Systems Running | Contracting Business
Home Energy Myths Debunked | Horizon Servicesinc.com
HVAC Tips – Plumbing Tips | ARS/Rescue Rooter
HVAC Training Resources
Complete Guide to an Online HVAC Training | Guide to online schools.com
HVAC Training and Certification Prep Online – Ashworth College Online
HVAC Training | Alabama Power
HVAC Training | HVAC Technician Schools | Lincoln Tech
Trane Supply | Trane
HVAC Equipment | Johnstone Supply
HVAC, YORK & Building-Equipment Replacement Parts | Johnson Controls
HVAC | HD Supply
Crescent Parts & Equipment | A Wholesale HVACR Distributor
HVAC Tools & Equipment
YELLOW JACKET: HVAC Supplies and HVAC Products
HVAC & Refrigeration Tools | Imperial Tools
HVAC Discussion Forums
How To Start Your Own Plumbing & HVAC Company? – Business – Contractor Talk
AHRI | Ahrinet.org
Indoor Air Quality (IAQ) | US EPA
Established Businesses & Websites:
HVAC Services, Inc. | HVACservices.com
A Heating, Air Conditioning, and Plumbing Services Company | Gelinas HVAC
Horizon Services | Horizonservicesinc.com
Real HVAC Service HVAC Company | Realhvacservices.com
Greencastle AC Repair, HVAC Service | Premier HVAC Services LLC
Ductworks | Ductworkshvac.com
HVAC Directory, HVAC Professionals | HVAC.com
RSI Contractors | ACCA
HVAC Franchise Opportunities Guide | Franchising.com
Heating and Air Conditioning Franchise | Aire Serv LLC
Heating & Air Conditioning | FranchiseOpportunities.com
HVAC Businesses For Sale
Air Conditioning Businesses For Sale in Worldwide | BusinessesForSale.com
Special Trades Businesses For Sale | BizBuySell.com
HVAC Contractors Businesses for Sale | BizQuest
HVAC Name Ideas
Creative HVAC Business Name Ideas – Heating and Air Conditioning Company Names
43 Good HVAC Company Names – BrandonGaille.com
HVAC Marketing and Advertising Ideas
The Latest About HVAC Business
Google Searches Related To HVAC Business
HVAC Business In The News
Books About HVAC Business
What’s on Twitter Related To HVAC