It is essential to account for all expenses when starting a successful HVAC business. The start-up cost in this service industry can be pricey and ranges between $2,000 to $100,000, depending on the equipment that is being purchased and what you choose to purchase upfront.
Refer back to your HVAC business plan and business model to see what you need to take into account and what is in your budget. A few common start-up costs could include the company car, types of liability insurance for protecting your tools and equipment, the HVAC tools and equipment, company logo, branding, and website.
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1. Registration, Licensing & Insurance
One of the first places you’ll start when starting your HVAC company is with your business licensing, registration and insurance.
After securing your HVAC license for the service areas you plan to offer, you’ll need to acquire the appropriate insurance for your business.
In addition to having standard business liability insurance, HVAC contractor insurance will help protect your business from accidents, injuries, legal fees, and vehicle damage that may occur during the work day. Types of insurance to consider include:
- General liability
- Commercial auto
- Workers’ compensation
- Tools and equipment
- Commercial property damage
Estimated Total Cost: $500 – $5,000 per year
Will you be using any software to run the day-to-day of your business? Think about the issues you will run into that software can help you solve. Depending on the systems you intend to use, these costs can range in price.
Common types of software that you might consider include accounting software, such as QuickBooks, payroll, scheduling, proposals, and more.
Will you use a full business management software? Consider looking into this as a way to manage all aspects of your business, allowing you to spend time on your business, not in it. A system, like Payzerware, handles everything from scheduling to invoicing, collecting payments, and offers over 25 customizable reports.
To easily see the benefit Payzerware can have on your bottom line, enter some numbers into our ROI calculator today.
Estimated Total Cost: $4,500 – $10,000 per year
3. Tools & Equipment
Depending on the types of services you will be offering, you’ll need some basic tools to get started such as a battery-powered drill, electrical testers, tape measures, etc. Will you need tools for sheet metal? How about safety equipment? These are things you’ll want to keep in stock and at your disposal.
Will you just be repairing or will you be replacing equipment as well? The price of equipment is something to keep in mind as well. How will you price your services and plan your markup to cover that cost?
Estimated Total Cost: $300 – $2,000 for basic tools and safety equipment
4. Marketing & Promotion
How will you promote your services to generate a strong customer base? Consider all marketing and promotional materials you might need as you plan your start-up costs. These could include business cards, branded shirts for you and your team, a website, basic social media efforts, and more.
As you start to gain business, track the efficiency of your marketing in order to make changes and optimize. It might make sense to invest in things like yard signs for homes where you are working, door hangers to canvas the neighborhood, or maybe even commercials on local TV. These things can come as you grow, but getting the basics in place will set you up for success.
Estimated Total Cost: $30,000 – $100,000 per year
5. Hiring HVAC Technicians
The last key area you will need to invest in is hiring your staff. Having high-quality HVAC technicians will be imperative to your success, so put this in your budget early! Based on experience, the average annual salary of an HVAC technician ranges from $31,000 – $62,000 across the United States. You’ll also want to make sure your staff is fully trained on all systems you might be using. Payzer offers on-demand learning materials and training sessions to keep your team up to speed on using the mobile app, creating proposals, invoices, and more.
Estimated Total Cost: $47,000 (avg) per year, per technician
Partner With Payzer
The day-to-day logistics of running an HVAC company can be challenging and time-consuming. Payzerware makes it easy to run your HVAC business by saving time in all aspects of your business by streamlining operations, improving collections, and helping you get to more jobs. The all-in-one field management software platform that combines software and support to help you grow your business.
Payzerware makes reporting more accessible than ever by assessing performance, productivity, and more! We provide insight into different areas of your business, so you can stay on track while growing your HVAC company and reaching your goals.
Click here to talk to a product specialist and see how Payzerware will benefit your business.