So long as we still need air conditioning and heating, HVAC service businesses will always have their demands. So, if you are thinking of starting an HVAC business, the good news is that it can be a really lucrative opportunity with a lot of room for growth.
In fact, demands for HVAC professionals is expected to grow 15% until 2026, that’s a lot, and currently, the industry is suffering from regular labor shortages, which will translate into more opportunities for your new HVAC service business.
However, just because the industry is in such a good state, doesn’t mean you can automatically grasp success as soon as you launch your HVAC business. You’ll still need a proper strategy in order to achieve growth as quickly as possible.
Here, we will discuss all you need to know about starting an HVAC service business, and without further ado, let us begin.
Key Considerations When Starting an HVAC Business
Certifications and Licensing Requirements
If you are located in the US, some states require a technician to be licensed and certified before he or she can service HVAC equipment.
So, if you are planning to start an HVAC business, you need to be a certified HVAC technician or hire/partner with one. Additionally, the federal US government regulates certification for the HVAC industry in the Code of Federal Regulations Section 608 of the Clean Air Act.
If you are planning to take the required training/apprenticeship and tests in order to be a certified HVAC technician, then make sure to include the cost in your financial plan.
However, even if your location doesn’t legally require you to be a certified technician, there are actually some key advantages to consider:
- Competitive advantage: clients typically prefer certified technicians,
- Earning potential: some clients especially organizations are willing to pay more for certified technicians
- Exposure: it validates your knowledge as a technician or HVAC business, so it will translate into more exposure for bigger projects
Again, depending on your location, you might or might not be legally required to be insured before you can start your HVAC service business.
However, having the right insurance policies can be an important protection for your business so you don’t have to use your own money in any unfortunate accidents. Consider the following insurance policies:
It is recommended to contact your nearest insurance agent/broker so you can work out the right insurance policies according to your needs. However, here are some basic insurance policies you should consider:
- General Liability Insurance
- Professional Liability Insurance
- Workers’ Compensation Insurance
- Business Owner’s Policy
- Health Insurance
- Property Insurance
- Overhead Expense Disability Insurance
Don’t underestimate the importance of a business plan when starting any business.
Your business plan can be a very important road map to guide you as you run and grow your HVAC service business, and it should include:
- Executive summary: a brief overview of your HVAC service business outlining what you do, the areas you serve, where it operates, organizational structure, etc.
- Company description: greater details about your company like your mission and vision, objectives, etc.
- Market analysis: your target market, their behaviors, and how you are planning to attract them.
- Organization and management: the legal structure of your company and your organizational chart.
- Service or product line: in this case, HVAC services. List any specific services you offer
- Marketing and sales: your marketing and sales strategy:
- Funding request: how much money you need to raise in order to start the business.
- Financial projection: five-year financial forecast and estimations about your capital expenditure and ROI
Technicalities of Starting a Business
Don’t forget the due diligence such as:
- Your business name. In general, choose something that is catchy but sounds professional. Make sure people can easily understand what your company is about and if it’s easily remembered, it’s a plus point. For example, “Trust AC Services”, “XXX HVAC”, or others.
- Contact: you’ll need a working phone number and a business email. Set up your website and make sure your email is using your business name as a domain.
- Business address: if you are not yet ready to get a ‘real’ office space, you can purchase a P.O. box for your business. You can use this P.O. box address to legally register your business.
Equipment and Infrastructure
- A vehicle to store and transport your equipment
- All the necessary HVAC service tools from the hammer, screwdrivers, to heavy-duty tools like a reciprocating saw
- Digital infrastructure to manage your scheduling. We’d recommend the best HVAC software by fieldd as an all-in-one solution where you can manage your field service schedules, CRM, after-sale services, and others.
- A professional website and social media profiles
While figuring out how to start an HVAC business can be intimidating at first, it’s going to be well worth the journey in the long run. It’s very important to first define your target audience, so you can plan how you are going to market your HVAC service business to specifically attract this target audience.