How to Start An HVAC Business

a man on a roof working on an AC unit

The Resources You Need To Start Your Own HVAC Business

Included in this post, you’ll find an abundant amount of articles created by various authors in the resource section located further down the page.

You can use this as your library and come back to this post anytime you need more information.

Before you reach the resources, let’s go over a few points about starting and running an HVAC business.

Your Intrest In The HVAC Industry:

With any business you plan on getting into, you need to be interested in what you’re doing. You’ll be much happier and feel a sense of achievement while being dedicated to your business.

Without interest or passion, you’ll find yourself looking for a way out when problems arise rather than looking for solutions. Therefore, you must get into a business for the right reasons.

Before you start your HVAC business, you must ensure you are making the right move at this point in your life.

Is this something you are truly interested in? Are you looking for a business opportunity to provide a better income and a better life?

Looking for an opportunity to improve your lifestyle is something a lot of people look for. In my opinion, it’s better to look for an opportunity for something you’re interested in. When you’re passionate about an industry, you can create a business in that industry. You’ll have a better chance of success because passion is the driving force to success.

How To Start An HVAC Business

This business idea may be a good fit for people that like repairing, installing, maintaining, and selling, HVAC equipment. If this sounds like you then, starting your own HVAC Business is an option worth looking into.

Starting an HVAC business is similar to starting any other business.

The steps include the following:

1. Researching an HVAC Business – See An Inside Look Into the Business You Want To Start.

2. Choosing a Location for Your HVAC Business For more, see Choosing The Best Location for Your Business.

3. Choose a Name for Your HVAC Business, See  How to Choose a Business Name.

4. Legalizing Your Business – See  How to Register your Business.

5. Create Your Corporate ID – See A Complete Introduction to Corporate Identity Packages.

6. HVAC Business Equipment – See The Most Recent Google Search Results Related to HVAC Business Equipment.

7. Estimating Your Start-up Cost – See Estimating Start-up Costs: Are you Missing Anything?

8. Writing an HVAC Business Plan – See How to Write a Business Plan.

9. Setup a Business Banking Account – See, How to Open a Business Bank Account.

10. Get the Funding for Your HVAC Business – See Getting a Small Business Loan.

11. Software Setup  – Check out Google’s Latest Search Results for Software Packages Related to an HVAC Business.

12. Get Your HVAC Business Insured – See, the latest Google Search Results for HVAC Business Insurance.

13. HVAC Business Office Setup – See, Here are Considerations for The Setup of Your Office.

14. Choosing Suppliers for Your HVAC Business – See, How to Choose a Supplier You Can Depend on

15. Create an External Support Team – See, Building a Team of Professional Advisors for Your Business

16. Hiring Employees – See How and When to Hire a New Employee.

Points to Consider Before Starting Your HVAC Business

For details on the above steps and instead of listing all the steps here, see The Steps and Considerations You Need To Start a Business. So we can focus on the other issues that are specifically related to starting and running an HVAC business.

Getting Into The HVAC Industry, Questions, Answers, and More

Below I will go over what people are searching for and points to consider when starting and running an HVAC Business.

Let’s Get Started

The Competition For HVAC Services In Your Area?:

Is there a lot of competition in your area? If so, it may be difficult to get your foot through the door. When the market is oversaturated, you’ll need to provide something your competition won’t or can’t provide. You could also improve on something your competition is performing poorly.

Because this is a service business, there will probably be demand for furnace and air conditioning repairs, upgrades, and new installations. No matter what part of the country you live in, people want to live comfortably, and they’ll pay thousands of dollars to get it.

Can you remember the last time your heat or air went out? Did you panic? Did you mind paying the high repair bill, or were you just relieved when it was fixed? It’s like a survival thing — we can no longer function at home without it.

That being said, you need to be strategic when running an HVAC business. Just because people need what you have to offer, it doesn’t automatically mean they’ll do business with you. You need to work hard to build your business.

You should also keep in mind that with a lot of competition, companies usually compete on price. With lower prices, you may find a very low-profit margin. With low profits and revenues, you may not be able to make enough money to keep the lights on.

On the other hand, if there is no competition, then could it be there isn’t enough demand for an HVAC business in the area. If there is no demand, you’ll struggle to succeed in your business.

HVAC Business Start-Up Cost

To determine your startup costs, you will need to determine how you want to set up your business, or there is no way to get an accurate startup cost.

Some of the considerations to determine the startup cost of an HVAC business include:

  • Will you hire staff, or will you run the business all on your own. Running it yourself will result in fewer expenses, but you can only do so much as a one-person business. You can always start on your own and hire staff as needed.
  • Will you require one truck, or will you have a fleet of trucks?
  • Will you purchase new or used tools and equipment?
  • Will you run this business out of your home, or will you purchase or lease an office and warehouse?

Unless you determine the above, you won’t be able to get an idea of the startup costs. It makes sense to create a rough draft of your plan then get quotes for equipment and office, staffing requirements, etc. Once you have quotes, you can modify your plan to fit your budget.

Running An HVAC Business

In this section, let’s go over a few of the issues you will want to consider when starting and running your HVAC business.

Your Service

You want to make sure your service is impeccable. Your customers depend on excellent service. When word gets out about how good you treat your customers, this will be one reason people do business with you.

Since you will be working at people’s houses, you must be courteous and respectful. You’ll also want to treat your customers like a lawyer treats their clients — keep it professional and keep it confidential.

Just because one of your clients has a dream home with a collection of highly desirable sports cars in their garage, that knowledge is for you only.

Also, if your clients look like they were brought up in a barn, you need to keep their living conditions to yourself — your interactions can’t be the week’s discussion on friends’ night out.

Giving Quotes

When you give a quote, make sure to stick to it. You don’t want to give a quote for $100 and end up charging the customer $150 or $400 — under is okay, but never over. If you’re not sure until you dig deeper into the problem, then you’ll need to let the customer know that before you start. You are better off losing money on the job rather than create an unhappy customer.

Appointments

One of the pet peeves of most customers with any contractor is not showing up when they said they would. I have seen this in many areas and even in different countries. Many Contractors don’t show up on time and don’t finish the job when promised.

I have an idea why contractors do this, and it’s because they spread themselves too thin. They take on too many jobs at once, and they take a day or two from each customer, giving them excuses as to why they didn’t show up. The real reason is they are on another job. Soon this becomes a way of business for them, and it becomes a normal business practice.

If I were starting my own HVAC business, I would ensure all my appointments were accurate and all jobs completed on time as promised. It would be one of my selling points.

Expenses

It’s important to watch your expenses when running your HVAC business. Especially when starting out. Many new businesses fail because they don’t have the funds they need until the business is profitable. When you keep an eye on your expenses, you can avoid surprises and wake up one day realizing you don’t have enough money to keep the doors open.

In the beginning, only purchase what you absolutely need to keep the business running. Avoid any perks or spending on those issues you can do without. Once your business is strong, profitable, and bringing in healthy revenue, you can upgrade equipment, hire more staff, etc. For now, hide your checkbook and company credit card.

What Do HVAC Customers Expect?

Someone looking for repairs or a new install for a furnace or air conditioner wants someone who offers a good deal and offers quality equipment and parts.

If it’s a new install, they want you to set them up with the best solution, and it’s a repair; they want it fixed the first time correctly. Whether a new install or a repair, customers want a warranty. You must provide quality work and leave the area spotless when you are finished.

Think of what it would be like if you were the customer. Don’t you want a quality job without any hassle, problems, or clean-up?

HVAC Business Owner Salary

According to Success Group International – YourSGI.com, an HVAC business owner’s average salary is around 6% of revenue, averaging from $35,000 to $75,000.

You have to keep in mind this is an average industry figure. Your salary will depend on these three key areas, sales, profits, and expenses. These are all connected and will determine what your salary could be.

  • If you have a high amount of sales, but each job has little profit, that won’t work for you.
  • If you have high profits per job but have very little sales, that won’t be enough money to keep your business operational.
  • If you have high sales and high profits per job, but your overhead or expenses are very high, that can put you out of business.

You need all three, sales, profits, and expenses, to work together. You need a good amount of sales, good profit margins per job, and you need to keep your expenses down. Once you have that in place, you have a chance to make a decent salary.

HVAC Businesses for Sale

One way to start your HVAC business and generate revenue from day one is to purchase a business already in operation.

You’ll usually need a larger investment to purchase a business than to start your own. In addition to acquiring the business’s tangible assets, you are also getting the goodwill, or in other words, the customer base. The customer base is one of the most important areas to focus on.

Sure, you can start your own business cheaper. However, you won’t have any customers, and acquiring a good customer base takes time and money. Most new businesses fail because they run out of money before they become stable. They couldn’t hang on long enough to build a strong customer base.

There are pros and cons to buying an existing business. and you can have a look at Buy A Business or Build one From Scratch?

Speaking with business owners who want to sell will also allow you to ask questions about the industry and benefit from their experience. For more on this idea, see An Inside Look Into The Business You’re Considering

Have a look at the sites below offering HVAC businesses for sale:

Listed HVAC Businesses for Sale

HVAC Businesses For Sale – BizBuySell.com

HVAC Businesses For Sale – Business Listings at Sunbelt Network

HVAC Businesses For Sale – DealStream

Latest Search Results Related to Starting An HVAC Business Franchise Opportunities

HVAC Business Plan

Your business plan is a vital key to staying on track in your operation. It’s important because it’s a document that investors will require. It’s the document a bank will need when you apply for financing, and it’s your road map to keep you on track.

You can write your HVAC business plan yourself using a template, software or have a professional write it for you.

Refer to your business plan at regular intervals. Let’s say once a month when you’re starting off and every six months once your business is stable. It will keep you on track. You can also make changes when reviewing it.

See the collection of resources below related to creating a business plan for your HVAC Business.

Business Plan for an HVAC Company: How to Write One

The Ultimate HVAC Business Plan [Updated] – SAS

HVAC Business Plan | OGScapital.com

See Our Resource for Tips on Writing a Business Plan

HVAC Business Software

Using the right program for your business can improve productivity, save you time, and streamline your business. HVAC software programs can help you keep track of appointments, billing, and warranties, and your parts inventory, and the parts you have on order.

Imagine tracking all of these issues on paper. Can it be done? Sure it’s how business was conducted before the days of computers and the technology we have today.

Will you find an all-in-one software program or app? I would say no. Because you need software for your accounting, payroll, inventory, scheduling, and diagnosis software.

With that being said, there is a large variety of HVAC business tasks. Unless you find a program developed by an HVAC business owner, you will need two or three different computer programs to cover all your bases.

To find a suitable collection of programs for your HVAC business, define the features you want and which ones are most important.

For example,
My List of Software Features:

HVAC Focused:

  1. Inventory Module
  2. Track HVAC orders from suppliers
  3. Track Customer Warranties
  4. Schedule Jobs
  5. Calculate Hours Spent On a Job

You may find something including the above 5 features in an APP or desktop program designed for the HVAC industry.

Payroll & Accounting:

You will find payroll and accounting in HVAC software. Nevertheless, you may be better off using the same software your bookkeeper or account uses. It’s more focused on Accounting; it’s something you can discuss with your bookkeeper or accountant.

Another option that may be found in HVAC programs is exporting your data to popular accounting software, like QuickBooks.

HVAC Maintenance and Repair Software:

A maintenance and repair program will offer repair instructions, part numbers, videos, and book time for repairs.

The type of program will probably be separate from your HVAC business management software. It’s more for repair and maintenance. Giving part information, repair instructions, diagnostics, book time, or how much time each repair requires so you can bill it out correctly.

For more on HVAC software, look at these articles that will go into the details, offering you advice to choose a program that will work best.

Best HVAC Software Reviews of the Most Popular Tools & Systems

Best HVAC Software Reviews, Pricing & Demos

18 Best HVAC Software Reviews, Pricing, Demos

HVAC Business Names

The name you choose for your HVAC business is important. It’s rare for a small business to change its name.

A substantial investment of time and money is made over the years on brand recognition. It doesn’t make sense to change a business name after everyone recognizes it. That being said, you’ll want to take the time to choose a suitable name from the beginning.

You can use the name of your area. For example, you operate out of Essex County, you could name your business Essex County HVAC or something similar. The only drawback to this tactic is that if your business goes nationwide, then the name doesn’t really match.

You can also use a business name generator to gain ideas and spark your creativity. I have included a few at the end of this section.

Other ideas can include something similar to HVAC, like complete home comfort. You can use a Tag Line Like Same Day HVAC Service. You can use your last name like Simth’s HVAC Service.

The ideas are endless. You want to choose something that you can see yourself saying for many years to come.

To come up with the name, make a list of several names. Leave it for a day or two, then come back to your list, elimiate the ones that don’t make sense, and add any that may have come to you.

Once you have a list of candidates, see which names are available to register as a domain for your website. Next, for names available as a domain, check which ones you can register as your business name.

Before you register, you want to print your business name on paper to see how it looks. Imagine it on a sign outside your location; does it look good in your mind?

In the end, you want a business name that sounds, good looks good and is available to register as a business name and domain name.

Look at the articles I have included in this section that offer tips, insights, name examples, and name generators. All these resources can help you create a great name for your HVAC business.

Cleaning Business Name Generator + (Instant Availability Check)

Air Duct Cleaning Business Name Generator – How to Name an Air Duct Cleaning Business

101 of the Best HVAC Company Names

HVAC Business Structure

The business structure you choose will affect the liability you have, the setup costs, the taxes you pay, etc. Naturally, there are pros and cons to each.

The quickest, simplest, and least expensive way to set up your company is registering as a sole proprietor. This means you and the company are one. Anything that goes wrong makes you 100% personally liable. Registering as a corporation means the company is a separate entity, and your liability is limited.

The good news is you can change your structure as needed. For example, you could start off as a sole proprietorship. Once the business gets some traction, you can incorporate it.

For more on choosing a business structure and registering your business see, How to Register Your Business Using These Resources

HVAC Business License

An HVAC business will require a regular business license. Also, you will need to verify with your local authorities to see what type of specialty licenses you may need.

For example, any employee performing HVAC repairs or installs will need to be a certified HVAC technician. Each location differs.

See the resources below for more on obtaining HVAC licensing.

HVAC License Requirements Guide – How to Get Air Conditioning License

Business Licenses and Permits for Contractors, Builders & Other Construction Professionals – Building a Sturdy Business

Mechanical Contractor License Requirements by State | Harbor Compliance

See Our Resource Page for Resources to Get a License and Necessary Permits for Your Business

HVAC Business Insurance

HVAC business insurance is one of the most important issues you must have to operate your service.

You’re working in people’s houses and businesses. Anything can happen, and you could be liable in the event of an accident.

What if you’re working on a furnace, fire breaks out, and the building burns to the ground?

You must have insurance that protects you. There are dozens of packages on the market for specializing in HVAC business insurance.

You want to have sufficient coverage for your business, your employees, and your customers? Running a business without the proper insurance is unforgivable. You have to be responsible and make sure you have the proper coverage.

Another point to keep in mind is that business insurance is tax-deductible, so there is no excuse for not having it.

Since you’ll be looking for insurance coverage, you may want to look into other types of coverage for your employees, such as disability and benefits.

When you’re 100% covered for any issues that may occur, trust me, you’ll be able to sleep better at night. Your worst nightmare would be waking up to an incident, and you have no coverage.

Take some time in this area and get the best coverage you can afford.

Have a look at Insurance companies below that offer coverage for HVAC Business owners. See what is available, and you can even get quotes online.

HVAC Installation Business Insurance Quotes | Insureon

HVAC Technician Insurance | Progressive Commercial

HVAC Contractor Insurance – Ultimate HVAC Business Insurance Online

See Our Resources for All the Business Insurance Resources You Need from One Page

HVAC Business Card Design

Your HVAC business cards have an important role in marketing your business.

When you hand someone a business card, it gives them an impression of your business. What you put on your business card is important. I would suggest putting one of the most important selling features on your card. For example, “Same Day Emergency Service,” “24-hour Emergency Service,” or something to that effect. Make it short and sweet. You can’t put in a lot of information on a business card, or it will look cluttered.

You can also put your website address on the card if you have a lot of details you want to include about your business. That way they can go there for more information.

Your business card’s design can influence a potential customer. Something that looks like it was put together at home on a home printer may give the impression that your service is unprofessional. On the other hand, a professionally designed business card gives the impression that you are running a professional business.

Below you will find tips and insights for creating your business cards. You’ll also find examples to spark your creativity and gain ideas.

There are many programs out there to design your own cards. You can use a business card template or hire a graphic designer.

Another important point you may want to look into is a corporate ID consisting of a logo, letterhead, brochures, business cards, etc. This is one overall design for all your stationery. See, A Complete Introduction to Corporate Identity Packages for more.

HVAC Business Cards (Standard Horizontal) – Customizable Design Templates – YouPrint.com

Business Cards for HVAC contractor – Design Print Service – Footbridge Marketing

See Our Resource for Creating Attractive Business Cards That Work

HVAC Resources

In this section, you’ll find various resources to give you an overview of what it takes to start An HVAC Business.

Keep in mind nothing is easy when it comes to starting a business. It’s a serious undertaking, and you need to be diligent in your research.

It’s not like investing a bit of money, and revenue starts to come in the next day unless you get a really great deal on a business that is already successful and running. When you’re starting fresh, it takes time, money, and a lot of research before you can start generating revenue.

I’m not trying to keep you from your dream. I want you to take the right steps and look into all the aspects of achieving your dreams.

The articles in this section can get you started on your research and point you in the right direction.

How To Start an HVAC Business

How to Start an HVAC Business in 2019 – Starting in Air Conditioning

Starting an HVAC Business: 5 Do’s and Don’ts

HVAC Trends and Statistics

Heating & Air-Conditioning Contractors in the US – Industry Data, Trends, Stats | IBISWorld

HVAC Industry Worldwide- Statistics & Facts | Statista

40 Amazing HVAC Industry Trends & New HVAC Technologies | Aeroseal

HVAC Business Model

HVAC Contractor Business Model

The HVAC Business Model Explained – BrandonGaille.com

Six Components of a Successful HVAC Business Model

HVAC Profitability and Revenue

HVAC Business Owner Salary – A Guide To Making More | Housecall Pro

How Much do HVAC Companies Make in Revenue? | SGI

Startup and Operating Costs For An HVAC Business

Cost to Start an HVAC Business | BusinessBlogs Hub

HVAC Equipment

See Our List for the Equipment You May Need for Your Office

Best Tool List for HVAC Service Technicians – Smart Service

The Ultimate 2020 [HVAC Tools List] For Every HVAC Tech | Housecall Pro

27 Essential HVAC Tools For Home Service Techs in 2019

The Complete List of the Must Have HVAC Tools

Best HVAC Tools List: The 20 Essential HVAC Tools for Service Techs

HVAC Employee Considerations

5 Simple Steps For Better HVAC Recruiting and Staffing

Staffing Solutions for the HVAC Industry

Common Jobs You May Need for Running a Business

HVAC Business Loans

How to Use an HVAC Business Loan | Fora Financial Blog

Compare business loans for HVAC companies | finder.com

Business Loans For HVAC Companies | Merchant Maverick

See Our Resource Page for Resources to Help You with Financing Your Business

HVAC Logo Examples

HVAC Logo Designs | 1,754 Logos to Browse

HV/AC Logo Maker | Online Logo Maker | Placeit

Search Results Related to HVAC Logos

HVAC Forms

HVAC Service Invoice Form – HVAC Work Orders | DesignsnPrint

HVAC Forms | HVAC Sticker

HVAC Service Tickets Printing Service | Amerbusforms.com – Tagged “Invoices” – American Business Forms & Envelopes

HVAC Forms – Contractor / Job Order Forms – Forms

HVAC Business Management

Learn more about HVACR Business Management here.

Nine Vital Practices For Running a Successful HVAC Contracting Business

The Four Functions of Management

HVAC Franchise Opportunities

HVAC Franchise Opportunities Guide

Heating & Air Conditioning (HVAC) Franchises for Sale | FranchiseOpportunities.com

Aire Serv LLC | Heating & Air Conditioning Franchise

Latest Search Results Related to Starting An HVAC Business

A Day in the Life Of An HVAC Business Owner

A Typical Day in the Life of an HVAC Technician – Refrigeration School, Inc. (RSI)

HVAC business owners who persevered and found success | Contracting Business

A Day in the Life of a Business Owner ~ See What They Are Saying  | Click Here

HVAC Skill Set

The 5 Essential Skills for a Successful HVAC Contractor in 2018

10 Skills Employers Expect From HVAC Technicians | The Refrigeration School (RSI)

Top 50 HVAC Technician Skills – Zippia

See Our Resource Page for Essential Business Skills You Need to Succeed

Successful HVAC Businesses

HVAC Companies In The USA: Find Out The 12 Leading

Top HVAC Companies in the United States

Top 10 Best Heating and Cooling Companies | ConsumerAffairs

HVAC Business Marketing Tips

5 HVAC Marketing Ideas, Tips & Strategies for HVAC Lead Generation

14 HVAC Marketing Strategies Proven to Increase Leads and Booked Jobs

11 HVAC Internet Marketing Strategies That Work in 2019

Top 20 HVAC Marketing Strategies – CEO Warrior | You’re Either Average Or A Warrior

HVAC Article Mix

What You Need to Know About Starting an HVAC Business

How to Operate a Successful HVAC Contracting Business

Four HVAC business tips to help you make money faster

The 7 Biggest Mistakes That HVAC Contractors Make

Resources for Running a Business

Acey Gaspard’s Guide to Starting a Small Business — Made Simple

The Nine-Hour Business Tune-Up

Learning Center SBA.gov

Entrepreneurship Course Online | HBS Online

LinkedIn Learning: Online Courses for Business

Online Courses — Anytime, Anywhere | Udemy

HVAC Blogs

The Top HVAC Blogs – Broadly.com Software For Business

Top 100 Air Conditioning Blogs & Websites in 2019 For HVAC Contractors

Top 20 Best HVAC Blogs for Industry Pros in 2019

HVAC Trade Publications

6 HVAC Industry Publications You Should Be Reading – Refrigeration School, Inc. (RSI)

HVAC Directory – Trade Publications

HVAC Terminology

Commercial HVAC Industry Glossary of Terminology – AC & Heating Connect

Common HVAC Terms That You Should Know | Amana

HVAC Glossary of Terms | Commercial HVAC Terms | Lennox Commercial

Books

Books from Amazon Related to Starting An HVAC Business

Google Book Search Related to Starting An HVAC Business

The Latest about Starting An HVAC Business

Google Searches

Latest Search Results Related to Starting An HVAC Business

Latest Scholar Search Results Related to Starting An HVAC Business

Latest Image Search Results Related to Starting An HVAC Business

News

Latest News Related to Starting An HVAC Business

Twitter

Tweets Related to Starting An HVAC Business

YouTube

Videos Related to Starting An HVAC Business