Demand for HVAC services is projected to grow by as much as $20 billion from now until 2030, which means it’s a great time to start an HVAC business. There’s a lot of detail to manage when you start an HVAC business, but your attention to detail will prove to be the best path to growth and success for your new service company.
We’ll walk you through the key steps and strategies for how to start an HVAC business. Read on for step by step details and tips like creating a complete business plan, hiring the best HVAC technicians, marketing your services, and much more!
Start by building a foundation for your success. Doing the work to develop an HVAC business plan forces you to identify the key members of your team, the strengths and services you will market to your customers, your ideal customer, your costs, and the prices for your HVAC services.
Your HVAC business plan also outlines your goals. It’s helpful to think of your business plan as a living document, which should be revised every other month, and definitely every year so that your planning continues to grow with you. Here are the elements to include in your HVAC business plan.
Choosing what to pay yourself and your technicians is a decision that will help keep your HVAC business competitive and provide a strong foundation for profitable growth. You’ll also want to ensure that your salaries are competitive for the area you serve so that you attract skilled technicians who will deliver service that delights your customers.
According to ZipRecruiter, the national average for HVAC business owner salaries is $56,761, with variances depending on what part of the country you live in, and how you market your company.
After completing your HVAC business plan, you should have identified prices for your HVAC services that provide you with cash flow to pay a competitive salary for your techs. According to the U.S. Bureau of Labor Statistics demand for HVAC Mechanics and Installers is expected to grow 5% between 2020 and 2030 with a median salary of $48,630 in May 2021. AS your HVAC technicians gain experience that salary scale should increase.
When you’re starting an HVAC business, an important key to your success is hiring top quality HVAC technicians. Here are three tips for recruiting excellent ambassadors for your company.
When you’re starting an HVAC business, an important key to your success is hiring top quality HVAC technicians. Here are three tips for recruiting excellent ambassadors for your company.
As the owner of an HVAC service business, you wear many different hats. You’ll want to stay on top of scheduling and dispatching technicians for service calls, keep up to date on your invoicing and accounting so that you keep cash flow positive, and maintain great relationships with your customers.
Consistency is a winner for HVAC businesses. To operate optimally, you should standardize repeat processes and put these repeat processes in writing. This ensures every process from how your dispatcher answers the phone, to how your technicians write a work order, to how your accounting department processes an invoice, are all done the same way every time. And, whenever possible, repeated tasks should be automated.
One of the most important metrics for HVAC businesses is managing cash flow. That means you need to closely monitor all your invoices. Ensure you have solid processes for getting invoices to your customers quickly, that your payment terms are clear, and that you keep your costs low wherever possible.
Growing HVAC companies may find their business has become too complex to manage with spreadsheets alone. Using HVAC software can help you grow your business with features that are made for service businesses.
Integrated HVAC software provides all the tools you need to dispatch calls, manage inventory, keep on top of your invoicing, and stay connected with your customers.
When you invest in HVAC software, make sure it checks the following three boxes.
Bonus: HVAC reporting and Dashboards — Use your HVAC business software to identify customers who need to renew their service agreements, or every customer that has equipment that’s about to come out of warranty.
Now that you have a business plan, employees to serve your customers, and software to run the HVAC business, you’ll need customers to serve. Here are a few suggestions for planning your HVAC contractor marketing.
The internet is one of the most important marketing tools in your toolkit. Many of your customers will find you using an online search, which makes an HVAC business website a necessity. If you don’t have the skills to create your own website, there are many easy to use platforms like Wix, Squarespace, and Shopify that can help simplify the process. Depending on your expertise and budget contracting out your website creation could be money that’s well spent. (Just don’t forget to include this expense in your business planning).
Here’s another internet HVAC marketing strategy that can make your business stand out. Search Engine Optimization (SEO) is the process of improving your website to make it more visible when potential customers use search engines to find your HVAC services. Using key search terms throughout your website helps customers find what they are looking for when they search on Google or other search engines. It may be useful to hire an outside marketing agency to help you determine the best keywords and key phrases for your business. Tools like Moz, Ubersuggest, Answer the Public, and Google’s Keyword Planner can also be valuable when researching keywords.
Once your website is up and running, you can extend your online reach by connecting directly with your customers on social media.
Email is one of the most effective and efficient HVAC marketing tools for communicating with potential customers. Using HVAC business software, you should be able to create customer lists organized by zip codes or by the date of their most recent service. Send an email that says: “We miss you,” to customers who haven’t called in recent months. Or send a follow up reminder to customers who never replied after asking for an estimate. You could offer a discount on HVAC services to owners of an apartment complex.
Satisfied customers are the best marketing spokespeople. Offer your customers an incentive to recommend your business when their referral makes a purchase, such as a gift card. Referrals can also come from relationships you build with local contractors and apartment and real estate management companies. Join your local business association to meet people who can connect you with potential customers for your business.
Positive reviews from previous customers help potential customers trust your HVAC business more. Ask happy customers to leave reviews on Google for your business. It’s free marketing for your HVAC services, and positive reviews of your business can really boost your reputation because customer reviews inspire other potential customers to trust your business.
The best way to make sure your customers are loyal, repeat HVAC customers is to deliver great service that they can trust. Here are some ways to build trust with your customers and keep them satisfied.
With HVAC services in demand and relatively affordable startup costs, it’s a great time to launch your HVAC business. Your key requirements are a detailed HVAC business and financial plan, qualified technicians who want to grow with you, and a focus on customer service. Using top HVAC business software will help you deliver superior service that will keep your customers happy and loyal while helping you manage your invoicing and keeping cash flow positive.
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