If you are interested in starting an HVAC business, there is a massive opportunity for you in this industry! The U.S. HVAC industry is not going anywhere, and predictions forecast that it will continue to expand in size over the next ten years. Whether you’re just researching how to start, or have already been working on your idea for years, Payzer is here to help provide you with the background knowledge you need to start turning your dreams into reality!
Start with an Effective HVAC Business Plan
First, create an organized outline of how your HVAC business will operate. Every successful HVAC business starts with a business plan! This document will contain the business’s strategy, the executive summary, the business overview, structure, marketing strategy, market analysis, financial planning, and budget.
What services will you offer? What area/region will you service? Is there competition already? These are just a few of the things to consider that can help you form your HVAC business plan.
Having an outlined strategy from the start will make it more attainable to reach your business goals.
Understand the HVAC Business Model
A business model is a framework for how your company delivers, creates, and captures value in your HVAC business. This visual component will set the foundation for your HVAC business and consists of key partners, key activities, essential resources, customer segments, value propositions, and revenue streams. The business model will help you form a strategy by identifying the main blocks of your HVAC business.
Fulfill All Necessary HVAC Business Requirements
It’s important that you complete the necessary certifications to operate your HVAC business. The requirements vary from state to state, but in order to be an HVAC technician, you will need to complete an HVAC certificate from an accredited program, pass the different certification exams and obtain a license from your state. These certificates and credentials can demonstrate a wide range of skills in the field, such as installing, repairing, and maintaining HVAC units, analyzing air quality, and understanding the fundamentals of heating and refrigeration systems.
Understand HVAC Business Start-Up Costs
It is essential to account for all business expenses when starting an HVAC business. The start-up cost in this industry is a bit 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 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. You can also look into finding an investor if these costs do not fit into your budget.
How to Run a Successful HVAC Business
As an HVAC business owner, you will be juggling all aspects of your business at all times. And there’s a lot to do! You manage your team, the schedule, customer service, finances, cash flow, ensure you meet government and industry regulations, all while continuing to go out and do high-quality HVAC work!
It’s important to find efficiency wherever possible to save you both time, and money. What would it mean for you if you got to an extra job per day? How about quick communication between the office and the field during the day? Small changes in your day-to-day will make sure you stay focused on your goals, and keep your sanity while doing it!
An HVAC field-service management software like Payzerware can help you keep up with all aspects of your business from day one so you never get behind.
How to Grow & Scale Your HVAC Business
Have a plan for future growth in your business model. When your company grows, you need to know how and when you will expand.
One way to grow is to generate new customers! Word-of-mouth referrals are a great source of new revenue. Prioritize providing the best customer service to customers so they will share their experience with friends daily and refer people to you.
Spend time and money on your website and social media to generate leads and help grow your client base. Refer back to your Marketing strategy from your business plan – what’s been working? What hasn’t worked? Where can you make changes? Marketing is constantly evolving and what works for one person, might not work for you. That’s okay!
Another avenue for growth is through your existing customers. Yup, you read that right. Are you offering maintenance plans or service agreements on every job? That is one day to not only generate immediate recurring revenue, but also future revenue from those replacements. If you are visiting that homeowner regularly, who are they going to call when the unit needs to be replaced? Check out our maintenance agreements calculator to see how big of an impact this can have on your business.
Partner With Payzer
Now that you have all the logistics planned out, you need to think about the day-to-day operations of managing your HVAC business. How are you going to manage your schedule? Keep track of payments and unpaid invoices?
Payzerware is an all-in-one field management software that combines software and support to help you grow your business. Built with HVAC contractors in mind and designed to save time in all aspects of your business, our HVAC software will help you streamline operations, improve collections, and help you get to more jobs.
Your Payzerware account comes equipped with multiple reports that will save you time in assessing productivity, time tracking, performance, and more, gaining insight into areas of opportunity to improve and grow. Our entire Payzerware platform provides 20+ applications in one system, allowing you to streamline your entire operation and be more profitable than ever. Our customers’ favorite features include scheduling, dispatching, maintenance agreements, proposals, and more!
Do you feel ready to open up your own HVAC business? We hope that you have some insight on how to get started. Click here to talk to a product specialist and see how Payzerware will benefit your business today!