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How to Write a Winning HVAC Business Plan + Template

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Creating a business plan is essential for any business, but it can be especially helpful for HVAC businesses who want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every HVAC business owner should include in their business plan.

Download the Ultimate Business Plan Template

What is an HVAC Business Plan?

An HVAC business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write an HVAC Business Plan?

An HVAC business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective HVAC Business Plan

The following are the key components of a successful HVAC business plan:

Executive Summary

The executive summary of an HVAC business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

  • Start with a one-line description of your HVAC business.  
  • Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your HVAC business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your HVAC business , mention this.

You will also include information about your chosen HVAC business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of an HVAC business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

  • What part of the HVAC industry are you targeting?
  • How big is the market?
  • What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, the customers of an HVAC business may include:

  • Businesses (e.g., small businesses, large corporations)
  • Industrial complexes
  • Hospitals and other health care facilities

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or HVAC services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

  • Product/Service: Detail your product/service offerings here. Document their features and benefits.
  • Price: Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
  • Place: Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
  • Promotion: How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, or launch a direct mail campaign. And, you may use a combination of these marketing channels.

Operations Plan

This part of your HVAC business plan should include the following information:

  • How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
  • What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for an HVAC business include reaching $X in sales. Other examples include adding new products/services, expanding to new markets, and opening new locations.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to the HVAC industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

  • Revenue: how much revenue you generate.
  • Cost of Goods Sold: These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
  • Net Income (or loss): Once expenses and revenue are totaled and deducted from each other, this is the net income or loss

Sample Income Statement for a Startup HVAC Business

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

  • Assets : All of the things you own (including cash).
  • Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
  • Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup HVAC Business

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

  • Cash Flow From Operations
  • Cash Flow From Investments
  • Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup HVAC business.

Sample Cash Flow Statement for a Startup HVAC Business

You will also want to include an appendix section which will include:

  • Your complete financial projections
  • A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
  • Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your HVAC business . It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it. It forces you to think through all aspects of your business including marketing, finances, operations and more. Ultimately, a well thought out business plan is the key to a successful HVAC business.  

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How To Develop Your HVAC Mission Statement + Examples

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HVAC Business Plan Template

Written by Dave Lavinsky

HVAC Business Plan

You’ve come to the right place to create your HVAC business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their HVAC companies.

Below is a template to help you create each section of your HVAC business plan.

Executive Summary

Business overview.

Anderson’s Heating Ventilation & Air Conditioning Company (HVAC) is a startup HVAC company located in Boise, Idaho. The company is founded by Arnie Anderson, a HVAC technician for over 20 years who has now determined the time is right to start his own company. Arnie has worked in every operational position in his former employer’s company and has a strong depth of experience and capability in every aspect of HVAC installation and repair.

The job requires a history of knowledge and thorough expertise of many systems within HVAC; Arnie has learned them all via trial and error or on-site. His customers for the past 20 years have learned to trust Arnie with all replacements or repairs for their HVAC systems, because of both his expertise and his encouraging and calm demeanor when dealing with difficult, sometimes emergency, situations.

Product Offering

The following are the services that Anderson’s Heating Ventilation & Air Conditioning Company will provide:

  • Provide high-quality service in HVAC installation and repair for residential customers
  • Use a “set-window” time frame for HVAC commercial customers in need of repair
  • Utilize digital platforms as technical assistance tools for diagnostics and repairs
  • Service industrial clients with infrastructure over 100,000 square feet
  • Provide distinctive service to high-demand contractors, real estate agencies, and property management companies who require HVAC replacements or repairs
  • Provide the most up-to-date and innovative HVAC systems and repair service

Customer Focus

Anderson’s Heating Ventilation & Air Conditioning Company will target residential customers in the greater Boise area. They will also target commercial customers. They will search for and service industrial clients with large-space infrastructures. They will target contractors, real estate agencies and property management companies.

Management Team

Anderson’s Heating Ventilation & Air Conditioning Company will be owned and operated by Arnie Anderson. He has recruited two of his former assistants in his prior employment, Tex Rowan and Matt Rogers, to take on positions as Senior Technicians for Anderson’s HVAC. Tex and Matt together have over thirty years of experience as HVAC technicians and can instruct new employees, as well as diagnose, repair or rebuild HVAC systems.

Success Factors

Anderson’s Heating Ventilation & Air Conditioning Company will be able to achieve success by offering the following competitive advantages:

  • Friendly, knowledgeable, and highly-qualified team at Anderson’s Heating Ventilation & Air Conditioning Company
  • Provide a unique “set-window” urgent-response time frame for HVAC commercial customers
  • Anderson’s Heating Ventilation & Air Conditioning Company will offer the best pricing in town. Their pricing structure will be the most cost effective compared to the competition.

Financial Highlights

Anderson’s Heating Ventilation & Air Conditioning Company is seeking $200,000 in debt financing to launch its Anderson’s Heating Ventilation & Air Conditioning Company. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:

  • Office space build-out: $20,000
  • Office equipment, supplies, and materials: $10,000
  • Three months of overhead expenses (payroll, rent, utilities): $150,000
  • Marketing costs: $10,000
  • Working capital: $10,000

The following graph outlines the financial projections for Anderson’s Heating Ventilation & Air Conditioning Company.

Anderson’s Heating Ventilation & Air Conditioning Company Pro Forma Projections

Company Overview

Who is anderson’s heating ventilation & air conditioning company.

Anderson’s Heating Ventilation & Air Conditioning Company is a newly established full-service HVAC company in Boise, Idaho. Anderson’s Heating Ventilation & Air Conditioning Company will be the most reliable, cost-effective, and efficient choice for residents, commercial customers, and industrial clients within Boise and the surrounding communities. Anderson’s Heating Ventilation & Air Conditioning Company will provide a comprehensive menu of diagnostic and repair services for any client to utilize. Their full-service approach includes a unique service that provides “set time” responses for commercial clients with urgent HVAC needs.

  Anderson’s Heating Ventilation & Air Conditioning Company will be able to provide distinctive, high-quality replacements and repairs to all residents and commercial establishments. The team of professionals are highly qualified and experienced in HVAC processes and can provide either replacements, when necessary, or repair within a short window of time. Anderson’s Heating Ventilation & Air Conditioning Company removes all headaches and issues of the problems that can occur with HVAC systems, particularly in extremely cold winter weather. The unique response time system of Anderson’s HVAC ensures all issues are taken care of expeditiously while delivering the best customer service.

Anderson’s Heating Ventilation & Air Conditioning Company History

Since incorporation, Anderson’s Heating Ventilation & Air Conditioning Company has achieved the following milestones:

  • Registered Anderson’s Heating Ventilation & Air Conditioning Company, LLC to transact business in the state of Idaho.
  • Has a contract in place at one of the office buildings in midtown Boise.
  • Will set up its 10,000 square foot office space
  • Reached out to numerous contacts and former clients to consider services from Andersons HVAC.
  • Began recruiting a staff of ten and office personnel to work at Anderson’s HVAC company.

Anderson’s Heating Ventilation & Air Conditioning Company Services

The following will be the services Anderson’s Heating Ventilation & Air Conditioning Company will provide:

Industry Analysis

The heating, ventilation, and air conditioning service industry is expected to grow over the next five years to over $309 billion. The growth will be driven by the population increases which continue to create a need for HVAC replacement and repairs. The growth will be driven by the innovative new HVAC systems and products, such as the tankless water heater, that will be requested by customers who desire a more sustainable environment for their homes. The growth will be driven by innovation not-yet-known, as older materials and processes give way to newer high-tensile products that can replace steel wraps, tanks and ducts. Costs will likely be reduced as the worldwide economy continues to remain at a healthy level and commerce is not detained by political forces.

Customer Analysis

Demographic profile of target market.

Anderson’s Heating Ventilation & Air Conditioning Company will target residential and commercial clients in Boise, Idaho. They will search for and service industrial clients with large-space infrastructures. They will target contractors, real estate agencies and property management companies.

Customer Segmentation

Anderson’s Heating Ventilation & Air Conditioning Company will primarily target the following customer profiles:

  • Residents of Boise region
  • Commercial clients of greater Boise area
  • Industrial clients (100,000 square foot facilities) in the greater Boise region
  • Real estate agencies, contractors and property management companies in Boise

Competitive Analysis

Direct and indirect competitors.

Anderson’s Heating Ventilation & Air Conditioning Company will face competition from other companies with similar business profiles. A description of each competitor company is below.

Middleton HVAC Company

The Middleton HVAC Company is headquartered approximately 30 miles from Boise, Idaho. The company has been in business for five years, providing installations of new water heaters for the fast-growing bedroom communities of Boise. The owner, Mitch Carter, has extensive experience in water heater installation, having formerly worked for a company that manufactures and installs water heaters. He, along with two employees, work on new home construction, assembling and installing water heaters on a large volume basis.

The Middleton HVAC Company does not specialize in installation, repair or replacement of heating, ventilation or air conditioning units; however, the water heaters are heavily prominent in the business and some HVAC work is also completed for select clients. This company is focused on new home starts; as such, the next Middleton community is on their radar for sales and installation purposes. The company installs basic water heaters, without offering tankless water heaters, and includes typical instructions and safety warnings with those heaters. Repairs are often secondary to installation, which has led to some first-time homeowner complaints.

COC Company

The COC Company is an abbreviation of the full company name: Cooling Or Cold Company, which describes the installation, replacement or repairs offered by this company. Because of heat during the summer, cooling systems are required. The extreme cold during the winters in Idaho create the need for operational heating systems. These two weather patterns drive the systems comprising the scope of installation and servicing of the COC Company.

The COC Company is owned and operated by Tabor Nugent, who started the business in 2010. Since that time, he has hired one additional service repair representative and two administrative office staff. Tabor has found a niche in hot and cold weather systems, which he believes are the solutions for the weather patterns of the Boise region.

Thomas & Marsh HVAC Company

Thomas & Marsh HVAC Company was established in 1995 and has been a part of the Boise, Idaho community in several interactive ways throughout the years. The company has built and maintained an active community within area company owners and has started various associations to support local businesses. Terry Thomas is the owner and president of the company, and handles most of the client relations. Matt Marsh is the vice president of the company, overseeing the scheduling and other operations duties. Both Terry and Matt are active in the community organizations, encouraging camaraderie among all businesses.

In 2010, Thomas & March HVAC placed all services into a “mobile repair” mode, which resulted in increased customer calls for urgent repairs in cold weather or other electrically-challenged situations. This created a following of clients who continue to use the mobile repair service rather than calling a competitor, as the impression given to clients is that the repairs will be available within minutes instead of within hours.

Competitive Advantage

Anderson’s Heating Ventilation & Air Conditioning Company will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

Anderson’s Heating Ventilation & Air Conditioning Company will offer the unique value proposition to its clientele:

  • Highly-qualified team of skilled employees who are able to provide the most up-to-date and innovative HVAC systems and repair service.
  • Provide a unique “set-window” urgent-response time frame for HVAC customers
  • Unbeatable pricing for clients; creating the best pricing options available

Promotions Strategy

The promotions strategy for Anderson’s Heating Ventilation & Air Conditioning Company is as follows:

Word of Mouth/Referrals

Anderson’s Heating Ventilation & Air Conditioning Company is owned by Arnie Anderson, who has built up a stellar reputation as an installation, replacement, and repair expert in the HVAC industry. His long and extensive list of clients over the years has been bolstered by recent publicity after Arnie saved a family from extreme danger when searching for a systemic leak. By providing exceptional service and expertise to his clients, Arnie can now ask former clients to spread the word about Anderson’s Heating Ventilation & Air Conditioning to help build his company rapidly.

Professional Associations and Networking

Boise, Idaho is a medium-sized city and, as such, is a community-focused one, as well. Neighbors are friends, as are repair personnel, installation teams, construction groups and others. Arnie Anderson intends to solicit new customers and network among several groups for the first time since starting his company, as he knows referrals and word-of-mouth comments will lead to the success of his company.

Print Advertising

Two weeks before the launch of the company, a direct mail item will be sent to every resident in Boise, inviting all to take part in special “launch prices” during the first two weeks of the grand opening of the company. Customers are invited to visit and get a discount voucher for installation, replacement or repair of HVAC systems.

Website/SEO Marketing

Anderson’s Heating Ventilation & Air Conditioning Company will utilize their website, which will be well-organized, informative, and provide a list of services that Anderson’s Heating Ventilation & Air Conditioning Company is able to offer. The website will also list their contact information and list their available times if customers want to schedule a visit. The website will use SEO marketing tactics so that anytime someone types in the Google or Bing search engine “HVAC company” or “HVAC repair near me”, Anderson’s Heating Ventilation & Air Conditioning Company will be listed at the top of the search results.

The pricing of Anderson’s Heating Ventilation & Air Conditioning Company will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.

Operations Plan

The following will be the operations plan for Anderson’s Heating Ventilation & Air Conditioning Company. Operation Functions:

  • Arnie Anderson will be the Owner and President of the company. He will oversee all staff and manage client relations. Arnie has spent the past year recruiting the following staff:
  • Tex Rowan, a former associate of Arnie’s in his former position, will be a Senior Technician who will train new technicians and install, repair and replace HVAC equipment.
  • Matt Rogers, a former associate of Arnie’s in his former position, will also be a Senior Technician who will oversee scheduling and operations of the team as a whole.
  • Carrie Swanson will be the Office Manager, handling service calls, daily administration duties and assisting the technicians as needed.

Milestones:

Anderson’s Heating Ventilation & Air Conditioning Company will have the following milestones completed in the next six months.

  • 5/1/202X – Finalize contract to lease office space
  • 5/15/202X – Finalize personnel and staff employment contracts for the Anderson’s Heating Ventilation & Air Conditioning Company
  • 6/1/202X – Finalize long-term contracts for Anderson’s HVAC Company clients
  • 6/15/202X – Begin networking at industry events
  • 6/22/202X – Begin moving into Anderson’s Heating Ventilation & Air Conditioning Company office
  • 7/1/202X – Anderson’s Heating Ventilation & Air Conditioning Company opens its office for business

Arnie Anderson has recruited two of his former assistants in his prior employment, Tex Rowan and Matt Rogers, to take on positions as Senior Technicians for Anderson’s HVAC. Tex and Matt together have over thirty years of experience as HVAC technicians and can instruct new employees, as well as diagnose, repair or rebuild HVAC systems.

Financial Plan

Key revenue & costs.

The revenue drivers for Anderson’s Heating Ventilation & Air Conditioning Company are the fees they will charge to their customers for their products and services.

The cost drivers will be the overhead costs required in order to staff Anderson’s Heating Ventilation & Air Conditioning Company. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.

Funding Requirements and Use of Funds

Anderson’s Heating Ventilation & Air Conditioning Company is seeking $200,000 in debt financing to launch its HVAC company. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

  • Number of customers Per Month: 165
  • Average fees for products and services per Month: $44,500
  • Office Lease per Year: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, hvac business plan faqs, what is an hvac business plan.

An HVAC business plan is a plan to start and/or grow your HVAC business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your HVAC business plan using our HVAC Business Plan Template here .

What are the Main Types of HVAC Businesses? 

There are a number of different kinds of HVAC businesses , some examples include: Residential HVAC company, Commercial HVAC company, and Industrial Company.

How Do You Get Funding for Your HVAC Business Plan?

HVAC businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start an HVAC Business?

Starting an HVAC business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop an HVAC Business Plan - The first step in starting a business is to create a detailed HVAC business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your HVAC business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your HVAC business is in compliance with local laws.

3. Register Your HVAC Business - Once you have chosen a legal structure, the next step is to register your HVAC business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your HVAC business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary HVAC Equipment & Supplies - In order to start your HVAC business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your HVAC business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful HVAC business:

  • How to Start an HVAC Business

Step-by-Step Guide to Crafting an HVAC Business Plan for Startups

Step-by-Step Guide to Crafting an HVAC Business Plan for Startups

Starting an HVAC business demands technical know-how and a robust HVAC business plan. This plan is crucial for navigating the complexities of HVAC profitability analysis , financial forecasting, promotional tactics, and operational outlines. Through this, the HVAC business plan becomes a roadmap leading to success.

Let’s walk you through the components of a comprehensive HVAC business plan. 

Importance of a Robust HVAC Business Plan

A robust plan is the cornerstone to success in business. Crafting a well-structured plan turns aspirations into achievements in the competitive HVAC industry. It’s the foundation on which your start is built. 

The Role Of The Plan In Ensuring Long-Lasting Success

Here’s how an HVAC business plan template ensures long-term success in business. 

  • Acts as a strategic roadmap highlighting business goals, objectives, and actionable steps to reach them.
  • HVAC financial projections estimate startup costs, operating expenses, revenue projections, and potential profitability. 
  • Market analysis delves into customer needs, trends, and the competitive landscape.
  • Unravels operational intricacies such as equipment procurement, inventory management, and service delivery processes. 
  • Identifies, assesses, and mitigates against potential risks.
  • Outlines an approach to building a strong brand identity and reaching the target audience.
  • Provides a roadmap for resource allocation.
  • Serves as a living guide to be adapted as your startup grows and evolves.
  • Showcases professionalism and credibility when seeking funding or partnerships. 

When thinking about writing a plan for your business, the last thing you’re likely to think about is the cover page. Yet, it’s the most important despite being the last one to create. The cover page gives an overview of key information regarding your business. 

Let’s see the contents of a mechanical contractor business plan cover page. 

Don’t miss to add your logo on the cover page. Because it enhances the page’s visual appeal and brand identity. A logo on the cover page of an air conditioning service business plan PDF is for more than just aesthetics. It’s an essential task that contributes to giving your document a professional appeal.

Business Name

A name on the cover page conveys immediate identity and context. This is positioned prominently at the top to communicate the essence of your startup at a glance. The name guides readers to relate the content presented to your brand.

Contact Information

Readers get a direct avenue for engagement and inquiry when you add contact information to the cover page of an HVAC business plan. Usually placed below the logo, the information offers potential investors, stakeholders, and partners immediate means to connect with you. 

The contact information may include:

  • Phone number
  • Email address
  • Social media channels 

Business Address

Your business address on the cover page is a crucial point of reference.

The name is placed near your contact address to establish a tangible connection between your strategic vision and physical presence. 

Key Stakeholders and Their Roles

Highlighting critical individuals driving the success of your venture is a great idea. To immediately convey a sense of collaborative leadership. The transparent approach gives credibility to the vision and strategies of your business.

Executive Summary

The section in an HVAC business plan example summarizes your objectives and how you plan to meet them. An executive summary presents facts and entices readers to finish reading the rest of the document. 

Here are the contents of an executive summary. 

Company History

A sample business plan for HVAC company should have the history of your venture in the executive summary. This serves as an anchor and gives potential investors and partners valuable insights into your journey. Company history shows resilience and trajectory. This establishes credibility and commitment to continuous improvement. 

Mission Statement

An HVAC company mission statement communicates the fundamental purpose and guiding principles underpinning its existence. Additionally, it serves as a beacon aligning stakeholders’ understanding of core values and long-term objectives. 

Business Goals and Objectives

Cooling system business objectives and goals succinctly highlight your business’  strategic direction. Their presence immediately allows readers to understand intended outcomes, key milestones, and strategies to achieve them. 

Competitive Advantages

Incorporating competitive advantages in the executive summary highlights unique strengths that position your business ahead of competitors. This offers immediate insight into your distinct attributes, resources, or capabilities that set you apart.

Business Overview

The business overview section in a sample HVAC business plan PDF highlights the snapshot of your business. Readers learn about your company’s fundamental aspects and overall structure. A business overview is an introduction to your business and sets the tone for the rest of the plan. 

Key elements in a business overview include:

Company Summary

It’s a succinct and focused section offering a brief overview of your company’s essential details. The summary includes key aspects of your business for readers to get a clear understanding of what it’s about. 

Types of HVAC Services Offered

Readers find your HVAC service offerings in this section. Besides, investors, partners, and stakeholders can quickly grasp the nature and scope of your business. These can make informed decisions and align their expectations with your company’s capabilities. 

Target audience

Establishing who your company seeks to serve is an essential aspect of the business overview. The information is valuable for potential investors, partners, and stakeholders. It guides them to assess the viability and potential success of your business. 

Other benefits include:

  • Demonstrates understanding of the market and its dynamics
  • Encourages strategic focus 
  • Helps investors evaluate whether your business aligns with their goals 
  • Readers can estimate the potential market size 

Frequency of Services

Portraying service frequency allows readers to estimate your potential income. Frequency services are a key driver of revenue growth. Focus on service frequency highlights commitment to prioritizing long-term benefits for clients. 

Company Ownership

Understanding ownership options is crucial when thinking of starting an HVAC business. The HVAC business model forms the bedrock upon which your operations will be built. Choice of ownership impacts how your business operates and evolves. 

Business Entity Type 

Running a successful business requires choosing an appropriate entity type from the four main options. Each has advantages that need consideration before choosing one for your business. 

Let’s look at options for HVAC business ownership structures.

  • Partnership – This is owned and controlled by two or more partners, profits and losses are shared among the partners. 
  • C Corporation – The business raises money through selling stock. Owners benefit from tax deductions not available for other entities. 
  • Sole proprietorship – This business has no distinction between its owner and the company itself. There’s no need to worry about paperwork and it requires little capital. 
  • Limited Liability Company (LLC) – Owners have a wider pool of resources and financing opportunities since the business is registered in the state. It’s easier for the company to grow and expand. 

Start-Up Summary

The plan should have an overview of startup costs, long-term assets, and short-term assets. Let’s highlight these below. 

Start-Up Costs

You need to budget for various costs to start an HVAC business. Here’s a breakdown of the essential costs. 

  • Equipment and tools
  • Service vehicles 
  • Inventory and parts
  • Office space and furnishings
  • Marketing and advertising
  • Licenses and permits
  • Software and administrative tools
  • HVAC technician training and management
  • Contingency fund 

Keep in mind that the costs vary by location, location, model, and scale of operation. Understanding these costs allows budgeting to set up your business. 

Long-Term Assets

The success of your business relies heavily on your long-term assets. These durable and high-value items are useful in carrying out business operations over extended periods. Some long-term assets include:

  • Trucks and vans
  • Larger HVAC equipment
  • Workshop equipment
  • Specialized tools
  • Storage facilities

Short-Term Assets

Your business needs essential resources for daily use. These are usually consumed or converted into cash in a short period. 

Some of the short-term assets for an HVAC business include:

  • Tools and equipment
  • HVAC equipment Inventory and supplies
  • Safety gear
  • Consumables
  • Vehicle maintenance 
  • Marketing materials
  • Technology and software subscription
  • Training and development
  • Office supplies  

HVAC Services

There’s a range of services your business can provide to clients. The rule of thumb is to offer services tailored to meet the needs of your potential customers. 

Let’s see how you can determine the services to offer. 

Services In Alignment With Equipment and Local Demand

Providing services that align with equipment and local demand offers effective and efficient solutions. These resonate with the specific needs of your target area. Tailoring your services to advanced technology and the local area ensures optimal performance of HVAC systems and energy efficiency.

Seasonality and Frequency of Services

Seasons and frequency determine the efficiency and reliability of HVAC systems. Changes in seasons impact the demand for services. Extreme temperatures lead to a peak in demand. Routine maintenance in transitional seasons ensures optimal performance and energy efficiency. 

Emergency Services

Highlighting offering emergency services portrays commitment to providing unparalleled customer service. Readiness to address urgent HVAC issues round the clock demonstrates dedication to client satisfaction. 

The service differentiates you in a competitive market and positions your business as a reliable partner in times of need. 

Market Analysis Summary

This concise overview offers a comprehensive understanding of the HVAC industry . The summary informs readers of the market potential and business position in it. 

Components of the market analysis summary include. 

Ideal Client Profile

Your HVAC business plan should highlight the features of your ideal client. Doing this allows you to define the perfect fit for your services. An ideal client profile guides strategic decision-making, marketing efforts, and resource allocation. All your activities will meet particular needs, preferences, and pain points. 

Local Target Market Size

Highlighting the air conditioning service target audience offers data-driven insights into understanding growth opportunities. This guides decision-making, effective resource allocation, and target marketing efforts. The approach also allows for a realistic heating service market segmentation.   

Local Competition Analysis

A heating business competitive analysis offers a comprehensive understanding of the business landscape. The analysis identifies competitors, highlighting their strengths, weaknesses, and market positions. 

Scrutinizing the local competition offers valuable insights into potential challenges and opportunities. These allow for making informed decisions regarding differentiation, pricing, and marketing. 

Competitive Advantages and Differentiators

Highlighting what sets your business apart from competitors is crucial. And, how you’re planning to capture market share effectively. This demonstrates self-awareness and establishes your business’s unique value proposition. Conveying differentiators highlights strategic planning and readiness to leverage strengths for sustainable growth. 

Business Strategy

The section highlights pricing your services and the factors that influence how much to charge. Let’s see them in detail. 

HVAC Pricing

A comprehensive pricing strategy should balance various factors. These include service complexity, labor, material cost, and market demand. Evaluate the intricacy of each service while considering variables such as equipment, installation, and repair scope. Transparent and value-driven pricing ensures profitability while fostering trust and long-term relationships with clients.  

Factors Influencing Pricing 

There are several factors that determine heating service pricing models. Let’s highlight some of the most common considerations. 

  • Preventive vs. repair service
  • Scope of maintenance
  • Complexity and size of the system
  • Age and current condition of the equipment 
  • Type of equipment
  • Distance and service area 
  • Profit goals 
  • Tax and regulatory fees
  •  Customer perception

Determining pricing for your services requires understanding costs, market dynamics, and business goals. Evaluating these factors allows for developing a pricing strategy for sustainable profitability and reflecting actual value. 

Implementation Summary

This section outlines air conditioning business growth strategies. It’s the roadmap for turning your business idea into a tangible and operational entity. Here are the concepts covered in the implementation summary. 

Marketing Strategies

Growing revenue with your HVAC startup business plan requires understanding how potential customers can know about your company. So, you need an effective marketing strategy to attract new clients and retain old ones. 

Here are a few ideas you can use.

  • Create a mobile-friendly website
  • Be active on social media platforms
  • Invest in Google ads 
  • Use email marketing
  • Online reviews and testimonials
  • Develop partnerships 
  • Start a referral program
  • Offer maintenance plans 

Remember that consistency is key in marketing. A well-rounded strategy should include online and offline efforts to reach a wider audience.

Sales Forecasts and Strategies

Air conditioning service sales forecasts predict revenue over a particular period. This is based on heating and cooling market trends, historical data, and projected growth. Sales strategies outline how to approach the market, attract customers, and convert leads into paying clients. 

HVAC business milestones and goals provide measurable and tangible markers of progress and achievement. They are critical checkpoints to track growth trajectory and successful completion of key objectives. They provide clarity and accountability for the business to stay on course.

Management Summary

This section has an overview of aspects regarding the management of your business. The section may highlight salary and labor costs, the number of employees and their roles, job completion rate, and minimum job cost. 

Let’s see these in detail. 

Salary and Labor Costs

Highlight salary and labor costs because they impact financial sustainability and service quality. A competitive salary attracts and retains skilled technicians. Optimizing labor efficiency through strategic scheduling and workflow management using dedicated HVAC software boosts cost-effectiveness. 

Number of Employees

The number of employees directly impacts operational capacity, service reach, and customer satisfaction. Portraying the size of your team highlights a commitment to addressing customer needs without compromising service quality. The workforce size also reflects the capacity to handle different challenges to achieve operational excellence. 

Job Completion Rate

A job completion rate is a metric for operational efficiency and customer satisfaction. Successful completion of projects reflects a commitment to meeting customer expectations. A high job completion rate shows adept project management, a skilled workforce, and streamlined processes that contribute to timely and successful job outcomes. 

Minimum Job Cost

Including the minimum job cost in a business plan for HVAC company portrays transparency, customer accessibility, and financial prudence. The approach shows the ability to cater to the needs of various clients while maintaining operational viability. Besides, it showcases a commitment to honesty and straightforwardness so clients can confidently anticipate project costs. 

Financial Plan

Time to look at the financial aspects of your business over a given period. The financial plan provides an overview of how your business expects to generate revenue, manage expenses, and ultimately achieve profitability. 

The key components include:

Balance Sheet

A balance sheet is a summary of the company’s assets, liabilities, and shareholder’s equity at a given moment. The section offers insights into the company’s financial health, solvency, and net worth. 

Sales Forecast

It’s a projection with estimates of future sales revenue your business anticipates to generate over a given period. Sales forecasting involves analyzing historical sales data, market trends, and consumer behavior to predict potential demand for your services. 

Business Ratios

Also known as financial ratios, business ratios are tools for assessing and analyzing various financial variables. The ratios provide insights into the company’s performance, financial health, efficiency, and overall management effectiveness. 

Start-up Funding

This is the capital required to launch and establish a new business. Start-up funding encompasses financial resources necessary for marketing, operations, hiring, renting office space, and furnishings. You should outline the funding source in the HVAC business plan. 

Personnel Plan

This section outlines the human resource aspect of your business. The personnel plan highlights the projected staffing needs, organizational structure, roles, and responsibilities. This section overviews the personnel required to execute the business strategy. 

Expense Budget

An expense budget outlines anticipated costs and expenditures the business expects to incur in a given period. The budget includes operating expenses and day-to-day costs to run the business. 

Break-Even Analysis

This is a financial tool for calculating the point at which a business’s total revenue equals total costs, leading to neither profit nor loss. Break-even analysis identifies the level of sales volume required to cover all fixed and variable costs. 

Projected Cash Flow and Profit & Loss

The projected cash flow outlines the expected cash inflow in the form of revenue or costs in a given period. It’s a comprehensive overview of how cash moves in the business. The profit and loss statement summarizes revenues, costs, and expenses in a business for a given period. 

To end this guide, you need to understand why to regularly update your HVAC sample business plan. Additionally, you need to value its role in the success of your venture. 

Importance of Regular Updates to the HVAC Business Plan

Here’s why you need to keep updating your HVAC business plan regularly. 

  • Lenders need it to make informed decisions
  • Emergence of stronger or new competition
  • When starting a new financial period
  • Management change in your business 
  • If the old plan doesn’t reflect business values anymore
  • When the business has reached a threshold
  • Significant change in the market 

A robust business plan is paramount for start-up success. By following our step-by-step guide, you can lay a strong foundation for your HVAC venture. Additionally, incorporating free HVAC software for scheduling such as Field Complete will empower your business to thrive.

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How to start an HVAC business

Over the last five years, heating and air conditioning contractors in the United States has grown by 3.1% to reach $94 billion in 2018. During the same timeframe, the number of HVAC businesses has grown by 2.6% and the number of employees has grown by 4.5%. If you’re interested in helping people keep their homes at a comfortable temperature and save money with energy efficiency, now’s the time to get into the HVAC industry.

Free Guide: How To Set Up Your Google Business Profile

Step 1: start with a business plan.

A good HVAC business begins with a business plan . Within that document, you’ll define your local competition, target market, marketing plan , business structure, financial obligations, revenue projections, and so on. Taking the time to develop your business plan keeps you on the right track and can make it easier to secure startup funds from banks or other investors.

Market research is necessary to determine how viable your HVAC business will be. You must know how many other HVAC companies are in your service area, the number of homes, the franchises you’ll be competing with, what the competition charges, and more. Good sources of information include city-data.com , the US Chamber of Commerce , and the Bureau of Labor and Statistics (BLS) . 

During this stage, you’ll also want to determine the service area you’ll cover, along with how far you’re willing to travel to a job site, and circumstances you’ll work under. Will you provide emergency repair service calls or operate during standard business hours only?

Google the HVAC businesses in your area and take a close look at the websites of the companies that come up on the first page – that’s where you want to be. To start working on your digital marketing strategy, a tool like KWFinder is useful in discovering the keywords your competition is using so you can do it better. 

Here’s where you’ll address the legal business structure you’ll operate under. This is necessary for meeting tax obligations and removing personal liability from any business. LLCs are an affordable business structure that allows you to maintain a separation from your company. During the business set up, you’ll need to be sure you’re meeting all local, state, federal legal requirements, including business licensing and insurance. Requirements may vary depending on where you live and operate your business.

Now it’s time to think about money. You’ll need a separate bank account so it’s easier to separate the money you’re spending on your business and the money you’re spending on personal stuff. To make sure you’re setting rates that are competitive but allow you to sustain your HVAC business and pay yourself a decent salary, take time to figure your income . Make sure to consider your years of experience as you set your rate.

Step 2: Determine startup costs for an HVAC business

Starting an HVAC business isn’t cheap, and one of the biggest mistakes you can make is failing to account for all business expenses . This is an industry where the average startup cost is a bit higher, spending anywhere from $2,000 to $10,000, assuming you’re buying a used vehicle and working to keep your equipment costs low. If you purchase everything up front, the cost could easily hit $100,000 . You’ll need:

  • A vehicle large enough to carry all your tools and equipment
  • Liability insurance, workers compensation insurance
  • General tools used in HVAC such as a battery-powered drill, electrical testers, tape measures, sawzall, etc.
  • HVAC tools used for sheet metal work, such as tin snips or aviators, folding bar or drive bender, shears, crimpers, staple gun, etc. 
  • HVAC tools for air conditioning work
  • Safety equipment
  • T-shirts with company logo and hats
  • Vehicle signage
  • Website  (Broadly can help you get started)
  • Marketing materials: business cards, door tags to verify service with contact information

Step 3: Skills, education, and certification for HVAC owners

Student technicians learning about HVAC Maintenance

Before you can begin work as an HVAC technician, you must complete an HVAC certificate program from an accredited program or school, depending on your state. Then, you must obtain your HVAC license from the state you plan on working in and pass certification exams for different types of HVAC careers. 

The different types of HVAC certifications are:

  • EPA Type I Certification – For Servicing Small Appliances
  • EPA Type II Certification – For Servicing High-Pressure Systems
  • EPA Type III Certification – For Servicing Low-Pressure Systems
  • Universal EPA Certificate
  • Air Conditioning (AC)
  • Air Distribution (AD)
  • Heat Pumps (Air-to-Air) (HP)
  • Gas Heating (GS)
  • Oil Heating (OL)
  • Hydronics Gas (HG) (service only)
  • Hydronics Oil (HO) (service only)
  • Light Commercial Refrigeration (LC) (service only)
  • Commercial Refrigeration (RC) (service only)
  • HVAC Efficiency Analyst (Senior Level) (EA)

You do not have to have a bachelor’s degree to work in HVAC, but programs are available for those who are interested in earning higher credentials.

Step 4: Make your HVAC business look more professional

To establish trust with your customers, especially if you just started your own HVAC company, you must take steps to be as professional as possible. This involves setting up a website with information about your company and HVAC services, along with a business email with your URL (such as [email protected] ) and a professional voicemail setup since you won’t be able to answer the phone all the time.

Dress in a shirt with your company name and logo. Add signage to your company vehicle. This helps add to your professionalism while also easing neighbor’s concerns.

Step 5: How to make more money by attracting more customers

hvac startup business plan

All small business owners want to make more money, but it’s often easier said than done. Use these five cost-effective methods to build your reputation, close more sales, and establish your online presence without going into massive debt.

1. Increase in sales

Even if resources are limited, spend time and money on your website and social media. Your website should allow you to chat with prospects . Turn to social media to generate leads and help you grow your client base. Post photos before and after you’ve finished a job, and share customer experiences. If you save the day by repairing an A/C or heating unit, people will sing your praises. Use that to your advantage.

Expand your revenue earning potential by going beyond HVAC installation and repair. Sell filters and other accessories to make it easier for your clients to maintain their own systems between visits.

2. Increase word of mouth

Anyone in the service industry knows just how important customer service is. Make it a priority to provide the best possible service to your customers so that when they talk about their experiences with friends and family, they have nothing but good things to say about your company. Remind your clients that your business needs reviews and referrals to survive. Pay attention to reputation management so you don’t fall to the competition. Always remain cooperative and friendly with neighbors.

Distribute flyers and business cards whenever you can. Connect with local building contractors and apartment companies so you can sign contracts with homeowners and renters. Listen to customer feedback and make adjustments where necessary to make things better for them.

3. Use online marketing

Once your website is up and running, claim your Google My Business listing , and add your business to Google Maps . This increases the chance that you’ll show up in local searches for “HVAC companies near me” and that’s one of the best ways to get new customers.

Create a Facebook Business Page and linked Instagram account. Fill the accounts with photos of the projects you’ve worked on, tips for proper heating and cooling system maintenance, refrigerator/freezer maintenance (if you’re an HVAC professional), and general information about the benefits of a well-maintained heating and cooling system in your home and vehicle.

4. Decrease expenses

Keep a close eye on costs. Just because you’ve got the best deal you can find right now, does not mean it will stay that way. As you research costs, look for ways to save by buying your supplies in bulk, getting discounts with part manufacturers, or rewards programs to save on fuel. As you grow, it’s possible you’ll be able to leverage more discounts with larger orders.

5. Choose a specialty

Take a look at your skill level and determine what it is you do best. Offer that service first. For example, if you’re best at repairing automobile air conditioning, but you’re not that great at furnaces, realizing your limitations and seeking training in those weak errors to offer those services later will serve you well.

Step 6: Plan to scale up

A successful HVAC business always has a plan for future growth. As your business grows , know how and when you’ll expand. Ideally, you need to be able to scale as demand increases without sacrificing quality or customer service. When you’re ready to hire additional HVAC contractors or support staff, develop a training system that advises people on how to interact with customers and neighbors. To get your technicians working as your sales team, too, add an incentive for new contracts. Add new vehicles and equipment as possible to grow your service area. 

Step 7: Launch your HVAC business

Starting your own HVAC business is exciting, but It’s completely fine to start small and work HVAC part-time and scale to full-time as you’re confident in your ability to serve your customers well, while also earning enough income to pay your bills.

Watch your online reputation transform with Broadly

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HVAC Business Plan: Definition, Examples & Templates

  • October 12, 2022

Interplay Learning

Starting your own HVAC business is a huge undertaking. There are business plans, startup costs, marketing plans, social media, and licenses to think about, among so much more.

This guide will help you with a key cornerstone of your business: your HVAC business plan. We will explain each section of the business plan and how it will help you grow your HVAC business. We will also address frequently asked questions and provide a template to kickstart your HVAC business plan process!

HVAC Business Plan Sections

1. executive summary.

The executive summary of your HVAC business plan is the introduction of your business. It quickly explains a few important points: the name of your HVAC business, what need or problem your business is addressing, a general overview of your HVAC services, your target market, and a snapshot of financials, such as startup costs, recurring expenses, and forecasted revenue.

This can seem like a lot of boxes to check in one to two paragraphs as a business owner. Remember to keep this section simple. The following sections will give you plenty of room to expand upon your plans for a successful HVAC business!

2. Service Offerings

The service offerings section of your HVAC business plan breaks down your service into a concrete offering. This section allows you to explain the details of your HVAC services.

Some things to consider when writing this section: the name of the HVAC service, a description, how a technician does the service, what benefits a customer receives from this service, and the cost.

3. Market Analysis

To have a successful HVAC business, it’s important to understand your competition, the current economy, and the needs of your geographic area. The market analysis section of your HVAC business plan is where you can research these factors. You will then consider how your discoveries will affect your HVAC business.

Some questions to begin understanding the HVAC market to ask yourself are:

How many competitors do I have? Which of those are my biggest competitors? What are my strengths and weaknesses? What are the strengths and weaknesses of my competition, and how do these present themselves as opportunities for me? What do the potential customers in this area need? What time of year do most people need HVAC services?

4. Business Operations

The business operations section is where your HVAC business ideas become concrete plans. This can include your policies and procedures, your office and transportation logistics, resources and suppliers, and ideal deadlines or goals.

It also includes how many employees and technicians you intend to hire, plus their wages and training plans. This would be a great opportunity to consider SkillMill from Interplay Learning.

SkillMill makes training efficient, relevant, and scalable while saving you time and effort. With 300+ hours of content and hands-on 3D simulations, it’s like having another expert on your team.

5. Marketing Plans

Marketing to the community is very important when starting an HVAC business. Use this section to strategize, rationalize, and budget for your different marketing ideas. Some marketing ideas to consider are social media, direct mail, email, billboards, radio ads, flyers, online digital ads, and more! Get creative.

6. Financial Planning

This section of your HVAC business plan is where you can precisely calculate and list startup costs, inventory, marketing costs, month-to-month expenses, prospective hires and their wages, and forecasted revenue.

Frequently Asked HVAC Questions

Still have questions about starting your HVAC business? Here are a few of the most common questions asked by new HVAC business owners.

1. What is an HVAC Business Plan?

An HVAC Business Plan is a written document that explains your business, its goals, and how it plans to accomplish those goals. The components of an HVAC business plan include the executive summary, service offerings, market analysis, business operations, marketing plans, and financial planning.

2. How do I start my own HVAC Business?

Writing an HVAC business plan is a great place to start with your business.

A business plan will help you clarify your expenses, next steps, and goals toward starting a successful HVAC business.,

Starting an HVAC also includes obtaining the proper permits, certifications, and paperwork required in your state to legally start, own, and operate an HVAC company. You can speak to an attorney or legal expert in your area to point you in the right direction. You can also visit your local bank or connect with a Certified Public Accountant to discuss financials and tax filing information.

Finally, you will want to hire technicians and implement training processes to help you service your customers. Interplay Learning’s SkillMill can help you quickly and effectively train your new technicians through integrated virtual training.

3. How do I grow my HVAC Business?

Growing your HVAC business lies in good service and good marketing.

SkillMill can help you with this. Digital training can help you start an HVAC business more quickly and efficiently compared to traditional training methods. Your new hires will learn faster, easier, and better with SkillMill.

Growing your HVAC business starts with customer satisfaction and steady, growing revenue. SkillMill relies on proven learning methodology to increase learning retention rate and get techs job-ready in weeks, not years – resulting in well-trained technicians that get it right the first time. This means less callbacks, more referrals, and increased revenue.

In your business plan, you will outline a marketing strategy to help you promote your business and connect with prospective customers. Providing good service, however, is how businesses grow by word-of-mouth. Word-of-mouth business is ideal because it doesn’t cost you anything, unlike marketing online or buying billboards. More business and fewer expenses mean higher profit margins!

4. Why do HVAC Businesses fail?

While there are many factors that could cause a business to fail, one of the biggest causes is poor service or a lack of skills.

When you have technicians that quickly and effectively perform the job right the first time, you get satisfied customers that keep coming back for more and you know referrals from them are your best source of new business. If your technicians do not provide friendly service or don’t do the job correctly the first time, customers are less likely to use you again or refer more business, which decreases your revenue and profit margins.

Training with SkillMIll ensures that your technicians get the job right the first time. You are also relieved of the task of training yourself, hiring more employees, or taking your best technicians out of the field for training.

5. Do HVAC Owners make good money?

We often see HVAC business owners achieve six-figure incomes. On the high end, contractors can see $98,586 to $461,723 per year (and you don’t even need a college degree!)

When planning your finances, experts suggest that owners set aside 5 – 6% of total revenue for their salary. Using these figures, you could set goals for how much you personally want to make as an owner and engineer your yearly revenue goals for your business! For example, if you want to make $60,000 that year, and you set aside 5% of the revenue, you would want to bring in $1.2 million in total revenue.

Grow Your HVAC Company With Interplay

Interplay Learning’s digital training platform, SkillMill , can help you as an HVAC business owner increase revenue and scale your business. What makes SkillMill different from traditional training methods is its engaging 3D simulations and immersive VR that take hands-on training and safety to the next level.

This unique platform lets you train your new hires much more quickly and efficiently than traditional training, allowing them to take to the field sooner. SkillMill also becomes another expert on your team, making training efficient, current, and scalable while saving you time and effort when making critical investments in your people. With this kind of training, new technicians can face new situations, ask questions, and apply their skills in a risk-free environment without the fear of failure.

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How to Start an HVAC Business – Here are 9 Beneficial Steps

Rakesh Patel

  • Last Updated: December 7, 2022

How to start an HVAC business

  • Starting an HVAC business requires obtaining the necessary licenses and certifications, as well as investing in tools and equipment.
  • Investing in ongoing training and education for technicians, as well as adopting new technologies and best practices, can improve efficiency and quality of service.
  • Providing exceptional customer service, including timely responses to inquiries and transparent pricing and billing practices, can build a positive reputation and generate repeat business.
  • Staying informed about industry trends and regulations, such as changes in energy efficiency standards and environmental policies, can help you stay competitive.

If there is a business field with plenty of jobs all around the globe, good compensation, and recession-proof, it has to be the HVAC sector. It is one of the most rapidly growing sectors whose demand is ever-increasing.

There were 103,359 plumbing and HVAC contractor companies in the US as of 2019, with 500 employees. The global heating, venting, and conditioning market is expected to be 288 billion USD . California has the highest number of jobs in the HVAC sector, three times higher than Pennsylvania.

All these substantiate that it is a sector that has a high employment rate and a great expanding capacity. It is one of the businesses which is truly universal.

To help you excel in your business, in this article, we have shared 9 beneficial steps on how to start your HVAC business . So without further ado, let’s get started. 

Table of Content

  • 9 Steps to Start an HVAC Business

Benefits of Starting an HVAC Business

  • Get the best routes from Upper for your HVAC services

9 Beneficial Steps to Start an HVAC Business

An HVAC business can be very profitable if managed well. So, here are the 9 beneficial steps that can help you get off the mark in your new venture.

Short on time? Skip ahead:

  • Create a growth-oriented HVAC business plan
  • Evaluate HVAC business startup costs
  • Study your market and make a list of the services
  • Set prices that cover your expenditures
  • Build an HVAC business marketing strategy
  • Hire a team of HVAC technicians
  • Monitoring your expenses
  • Reach out to your customers
  • Make use of advanced technology

1. Create a growth-oriented HVAC business plan 

Any successful HVAC company is built on a solid business plan. You’ll need to create an HVAC business plan defining the following terms in that document:

  • Market analysis
  • Marketing plan
  • Executive summary
  • Business structure
  • Financial obligations
  • Revenue projections, and so on 

Making an HVAC business strategy will keep you focused and may enable you to obtain startup financing from banks or other lenders. Apart from that, you also need to choose a business name and register it with the local government.

Another important component of a business structure is market research, which is necessary to assess the viability of your HVAC operation. You must know the number of competing HVAC companies in your service area, the number of homes and franchises you will compete with, the prices your rivals charge, and other information.

Additionally, it would be best if you chose your service area, the driving distance you are willing to travel to a job site, and the working environment. You must also work only during regular business hours or offer emergency repair services.

2. Evaluate HVAC business startup costs

The start-up cost of opening an HVAC company is costly, and failing to keep track of all business expenses is one of the most costly mistakes you can make. Hence, you need to have a separate bank account to manage your business transactions.

Evaluate HVAC business startup costs before starting an HVAC business

The average HVAC startup cost ranges from $2,000 to $10,000 , assuming you buy a used service van or truck and try to keep your equipment costs low. However, if you buy everything at once, the cost could easily exceed $100,000.

Here is the list of things you’ll need to run your HVAC business:

  • Marketing materials, such as business cards and door tags to verify service with contact information
  • Basic HVAC tools used for sheet metal work, such as aviators or tin snips, drive benders or folding bars, shears, staple guns, crimpers, etc. 
  • HVAC contractor license
  • HVAC tools for air conditioning service and maintenance work
  • Uniforms and caps with the company’s logo
  • Vehicle signage
  • HVAC business website 
  • A service truck or van large enough to carry all your tools and equipment
  • HVAC business insurance- Workers compensation insurance and Liability insurance
  • Available tools include an electrical tester, tape measures, battery-powered drill, sawzall, etc.
  • Safety equipment

3. Study your market and make a list of the services 

Decide what HVAC services you want to offer so you can buy the necessary equipment and begin pricing. The most common HVAC repair, installation, and maintenance services you can provide are as follows:

  • Furnace tune-up and maintenance
  • Air conditioning tune-up and maintenance
  • Heat pump installation
  • Repairing air conditioning units 
  • Air conditioning installation
  • Air duct cleaning
  • Tankless water heater installation
  • Emergency HVAC service
  • Furnace installation

Offering services in which you are skilled and enjoy performing will make your job more rewarding.

4. Set prices that cover your expenditures

If they want to have a successful HVAC business, business owners should set a price that covers all costs while ensuring business success. Additionally, reducing profit margins during the off-season may alleviate cash flow issues. 

Set HVAC prices that cover your expenditures

Here’s how to get started with HVAC job pricing:

  • Analyze your rivals in the HVAC service industry to find out what the going rates are in your area.
  • Establish the markup needed to achieve your desired profit margins.
  • Determine what additional services you can provide to increase your overall quote prices

You can use the following pricing techniques for HVAC jobs:

Hourly rate pricing model-

Hourly rates can make it easier for you to make more money when working on time-consuming or commercial HVAC contracts. This pricing strategy is helpful when you don’t know how long the project will take.

Flat rate pricing model-

You can determine a single, fixed price for the entire project using flat-rate pricing. This pricing strategy works well for your HVAC business when you know how long the job will take; for instance, $300 for air conditioning service.

Labor and materials pricing model-

It’s preferable to charge clients for installations based on the amount of labor you provide and the tools you use in general. This pricing strategy makes recovering your operating costs simpler.

Once you have decided on your service prices, create an HVAC pricing chart that breaks down your service costs at flat rates or hourly rates. By using a pricing chart, you can quickly and easily give customers accurate HVAC estimates.

5. Build an HVAC business marketing strategy

To keep your small business running smoothly, you’ll need an effective marketing strategy for your HVAC business to bring in new customers while retaining existing ones. Word-of-mouth referrals play an important role. Word-of-mouth is the most effective way to build trust and reputation for your company.

Reaching out to potential clients unfamiliar with your company will involve using social media advertising and an SEO strategy. Email marketing is another excellent tool for business promotion. With email marketing, you can keep your customers updated on company news and send appointment and service renewal reminders.

Branding your HVAC logo on vehicles, t-shirts, uniforms, and all other marketing materials is a professional perk for your HVAC company. The more you can set yourself apart from the competition, the more likely you will gain a loyal customer base.

6. Hire a team of HVAC technicians

It’s time to hire a certified HVAC technician when your workload becomes too much for you to handle alone.

Hire a team of HVAC technicians

By employing HVAC technicians to handle fieldwork, you can devote more time to sales, planning, brand management, and other aspects of managing and expanding your new company.

Here are some recommendations for finding and picking knowledgeable HVAC professionals:

  • Decide whether you want to employ employees or HVAC contractors and subcontractors.
  • A great job description for HVAC contractors should be written and posted on job-search websites.
  • Prepare some questions to ask a heating and cooling contractor before hiring them.
  • After hiring your staff, get ready to train them.
  • Pay your staff well and foster a positive work environment.

7. Monitoring your expenses

For starting an HVAC business, you also need to keep track of each expense. The fact that you currently have the most competitive prices does not guarantee that you will continue to do so.

As you assess your expenses, look for ways to cut costs. This can be achieved by purchasing supplies in bulk, obtaining manufacturer discounts for parts, or signing up for loyalty programs. You can also achieve this by saving money on fuel and other expenses.

For example, you can set up an overdraft facility with your bank. The overdraft facility will cover employee bills or advances if insufficient funds are in the business account.

8. Reach out to your customers

If you wait for customers to contact you, you will miss the opportunity to develop repeat business. Getting in touch with current customers and informing them about a service is another way to increase profitability. 

Consider scheduling service calls with previous customers to suggest a furnace check-up before winter, which they may have yet to consider. Make it clear that you care about their safety and comfort and are willing to assist.

9. Make use of advanced technology

Today, technology is essential to almost every industry, and the HVAC sector is no exception.  Don’t be hesitant to use technology to assist you in achieving your business objectives and creating brand awareness. You can create a business page or Google my business profile to mark the presence of your HVAC services online. 

Technology has improved almost every aspect of HVAC, from the onboard sensors and computerized components of AC units to the routing software, such as the Upper Route Planner, that directs technicians from job to job.

Let Upper Help You Manage HVAC Services

Starting a new HVAC business is easier when you have an advanced route planner for managing HVAC services. Get Upper to find the best routes for your client appointments.

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Let’s look at the top benefits of why you should start an HVAC business.

1. Easy to start up

Starting an HVAC business is relatively easier than starting other businesses. It requires little more than a business license, that is HVAC trade license, phone, and your offered skills and expertise to get up and to go. This not only makes it easier, but also makes it more affordable to get started.

2. No inventory

Starting an HVAC business doesn’t require a built-up reserve of inventory that needs to be stored in an expensive warehouse. You’ll only need the equipment and your skills to perform your offered services, so no warehouse full of inventory is required.

3. HVAC businesses are recession resilient

When the economy suffers, people will still need to repair their heating when it breaks. So, working in the HVAC industry, on the other hand, will help you keep your job and generate revenue even during economic downturns. 

4. You are your own boss

You are your boss as a business owner. You have the freedom to make critical decisions the way you want for your own HVAC business. When you are your own boss, you have a unique opportunity to shape your days the way you want. You can pick and choose what interests you and focus on what makes you happy.

5. High Lifetime Value (LTV)

On average, HVAC systems are replaced every 12 years, costing each unit $12,000. During that time, HVAC businesses will most likely provide some level of service, either through repairs or routine maintenance. The LTV of an HVAC company is frequently greater than $1,000 per customer per year.

Get the Best Routes from Upper for Your HVAC Services 

To excel in a fast-growing business, you need to have an organized and well-structured plan to cater to the requests of a large number of customers. Upper can help you reach this level of efficiency comfortably, without any hassle, with the help of state-of-the-art features.

For example, let’s say you have 30 jobs to be done in a day with the help of 5 technicians. Without proper planning, these technicians will be running around all over town but still may fail to cater to all the jobs. With every job that gets postponed or lost, you lose money. 

Here is where Upper comes in to help you out. Upper’s powerful and intelligent route planning algorithm will help create an efficient route and divide the routes among the technicians so that all the technicians can cater to all the jobs. Here’s how Upper and your competitive advantage can assist you in increasing your revenue and profits.

Route optimization

Uppers’ intelligent route planning and optimization algorithm will create routes for all the separate technicians or drivers. This will not only help you cut costs but also ensure that the possible number of jobs are done. You can optimize these stops by time or distance and add urgency for priority deliveries. It will help you to save money.

Proof of delivery

This feature will help you to take all the proofs digitally. The customer signature and images can be captured and stored in the software, so they are never lost. This can also be retrieved at any time. This will help you to boost the customer experience as well.

One-click dispatch

This feature can help you to send the optimized routes with just a single click. It also has a feature by which you can reassign any job or delivery. It simplifies duties and improves overall operational efficiency.

Upper Route Planner

A simple-to-use route planner that every one is talking about

The NATE certification is one of the best HVAC certifications that is both the most popular and well-known. NATE stands for North American Technician Excellence. It is an organization that concentrates on certifying and testing HVAC technicians.

These are the four primary categories of HVAC systems. There are split systems, ductless systems, hybrid systems, and packaged heating and air systems. Each of these HVAC units has advantages and disadvantages, and understanding them can help you decide which is best for you.

An annual maintenance visit for an HVAC tune-up typically costs between $75 and $200, depending on the contractor. If extensive repairs are required, you may be required to pay up to $2,000-$3,000 for the most complex parts.

HVAC is an expanding sector where, with the help of the right market strategy, business model, and efficient tools, you can make great profits. Study the strategies used by your competitors, and don’t be afraid to take calculated risks. All you must do is create a realistic business plan and plan ahead of time.

We at Upper understand that businesses have multiple challenges. To reduce your stress, we have come up with state-of-the-art software so you can plan and execute the delivery process hassle-free and focus more on increasing revenue and expanding your business.

Rakesh Patel

Rakesh Patel, author of two defining books on reverse geotagging, is a trusted authority in routing and logistics. His innovative solutions at Upper Route Planner have simplified logistics for businesses across the board. A thought leader in the field, Rakesh's insights are shaping the future of modern-day logistics, making him your go-to expert for all things route optimization. Read more.

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How To Start A HVAC Business (2023 Updated Guide)

August 21, 2020 Paul Tyrrell

Table of Contents

Wondering how to start an HVAC business? Follow these 8 steps and you will create the #1 HVAC business plan

Here are the 3 things you need to keep in mind when asking yourself ‘How do I start an HVAC business”?. Feel free to add these tips to your  HVAC business plan

  •  Governance

Governance is essentially how you plan on structuring your HVAC business. This might be as a sole trader or a partnership. You might even be planning on building an entity which is going to ultimately be run by someone else privately-owned with a single or a group shareholder.

Ideally you want to have complete ownership for your HVAC business if possible, even if you’re considering splitting this role with family or friends. Sharing a role like this with people you’ve known for many years may lead to trouble if there are conflicting ideas developed over time.

This isn’t true for everyone however, but majority rules in the number of people who have shared ownership with family or friends and consequently ended sourly. If it’s possible for you to have full control over your business, it is definitely preferable.

  • Financial Modelling

Starting an HVAC business requires proper financial modelling. Setting up a financial model for your business is about ensuring sustainable relationships within the moving parts of your HVAC business. Between you as the manager, the administrator, the staff and the contractors, a sustainable relationship needs to be ensured. You need to make sure that everyone is happy doing their work and the profit made from that work.

Profit can sometimes be affected due to the seasonality of HVAC contracting work. You might have seven months of solid profit in the year and five months with little to no work. This slow period can be difficult if you don’t manage smooth work flow throughout the year. Ideally you want to move as much service and renewal maintenance work into this offseason to create a much more manageable balance.

The gross profit margin on equipment can be around 45%. Therefore if you can reduce the time it takes to complete an installation and do more installations you can drive a higher margin HVAC business. That said if you can shift a service and labour intensive work into the offseason you can cover your labour costs and reduce the risk or the need to borrow money. Here is an example of a contractor costs from the year 2011

  •  Service offering

Having a clear understanding of your service offerings is vital in any HVAC business.

Are you focused on residential or commercial? Are you focused on installation or service? What are the main areas you plan on covering? Obviously the more specialised you can get, the higher the premium. The consultant doctor normally gets paid more than the general practitioner. The more specialised you can be typically the more you can charge for your time and services.

1. Consider which skills and certifications an HVAC business owner must have

Consider which skills and certifications an HVAC business owner must have. Roles in an HVAC company cover (but no limited to):

  • Mechanical Engineering,
  • Electricians,
  • Building Service Engineer,
  • Building Management Systems (BMS),
  • Duct Management,
  • Project Management,
  • Installation and Servicing and vary from Residential up to major commercial construction work.

A model career path could progress through these four stages: Level 1.  Graduate mechanical engineer, or engineering officer level. Level 2.  Mechanical engineer Level 3.  Senior mechanical engineer Level 4.  Principal engineer.

There certainly are hundreds of other paths.

HVAC is clearly a specialised trade and as a contracting business so you must obtain your HVAC licences for the state location you’re planning on working in. Licences can vary from small appliances to high pressure systems to low pressure systems. These licenses can also vary from country to country and be state specific. Here is our list of some of the different types of skill sets you need to develop and corresponding certifications

Obtaining Certificates In Australia

Make sure that plumbers have critical knowledge and skills to protect the health and safety of the building occupants. What does this mean for you?

As a registered practitioner, you must be able to understand and apply the compliance requirements of – – Mechanical Services plumbing work. These requirements include:

  • AS 2896 Medical gas systems
  • AS/NZS 3666 Air handling and water systems
  • AS1668 Use of ventilation and air- conditioning in buildings
  • HB 276-2004 A guide to good practice for energy efficient installation of residential, heating, cooling and air-conditioning plant and equipment
  • Relevant aspects of the National Construction Code.

To undertake Mechanical Services work to a safe and competent standard, you must also be able to:

  • Work safely at heights, including on scaffolding or elevated work platforms, and when using other access equipment such as ladders
  • Read and interpret plans
  • Carry out oxy-acetylene and manual metal arc welding (with mild steel pipes, brazed brass flanges, or copper or steel pipes), and know how to weld safely.

Obtaining Certificates In America

  • EPA Type I Certification – For Servicing Small Appliances
  • EPA Type II Certification – For Servicing High-Pressure Systems
  • EPA Type III Certification – For Servicing Low-Pressure Systems
  • Universal EPA Certificate
  • North American Technician Excellence (NATE): Offers professional level certifications for professionals.

Areas of certification include:

  • Air Conditioning (AC)
  • Air Distribution (AD)
  • Heat Pumps (Air-to-Air) (HP)
  • Gas Heating (GS)
  • Oil Heating (OL)
  • Hydronics Gas (HG) (service only)
  • Hydronics Oil (HO) (service only)
  • Light Commercial Refrigeration (LC) (service only)
  • Commercial Refrigeration (RC) (service only)
  • HVAC Efficiency Analyst (Senior Level) (EA)

You can earn a certificate II course through diploma-level qualifications to set you up for entry-level or management roles in the industry. Our air conditioning and refrigeration courses will also qualify you to apply for your Restricted Electrical Licence and full Refrigerant Handling Licence.

Training for a particular supplier Brand

  • Mitsubishi Heavy Industries
  • Mitsubishi Electric
  • Fujitsu General

2. Determine the costs to start an HVAC business

Quoting hurdles

Starting up a successful HVAC business can cost anywhere between $100 and $150,000 assuming that all business assets are purchased upfront.

When starting your HVAC business, you have options to help reduce this cost like leasing a truck instead of buying one, or acquiring second-hand equipment or equipment of a lower price range. Little steps like this can save you money and make sure your entry into the HVAC industry a little smoother. Certification, training and industry knowledge is essential and understanding how you’re going to acquire customers is a must-do.

Often starting your own HVAC company is something people consider after working for a successful HVAC business for around 3-5 years before going out on their own. Having this experience can be helpful in knowing how to build your own HVAC business and understanding how to deliver quality service. Importantly to ease your transition from worker to HVAC business owner, you want to find a neutral area and not create any conflict with your prior company.

Assets and infrastructure: Total HVAC Startup Costs

Here is the list of the total costs you should take into account:

  • Training costs
  • Certification costs
  • Licenses and registrations
  • Liability Insurance, Workers compensation Insurance
  • Diagnostic equipment:
  • Personal Protective Equipment (PPE)
  • Installation equipment (per crew):
  • T-Shirts with Company logo & hats
  • Vehicle Signage
  • Vehicles (per vehicle)
  • Computer (IT) equipment
  • Marketing Material – HVAC business cards, magnets, pamphlets, thank you cards
  • Mobile Phone/Tablet
  • Software: up to $500 p/m
  • Accounting (Xero, Quickbooks, MYOB A/C live, Reckon)
  • Job Management Software (CRM, Quoting, Reporting, Field Updates, Asset Management, Timesheeting, SWMS, 17. ITP-safety documentation, Project management). (E.g: FieldInsight is the #1 go-to option when it comes to  HVAC software )
  • Google Docs & Office 365

hvac startup business plan

3. Build Your Marketing Gameplan

Customers and customer acquisition.

To better understand your target customer, you need to look at five metrics; household income, the year the home was built, the size of the home, education and sex.

These factors are used for targeted marketing campaigns to give you a clear understanding of who your target customer is.

Say you’re targeting real estate agents or homeowners or builders or schools, with any of these you want to have a good understanding of who they are and where they are. You can then develop a marketing strategy that is tailored to the types of places they are likely to be or in the material your target audience is likely to read.

Not all of your marketing will be in paid advertising and research. Customer acquisition can also come from word of mouth, customer referrals and supporting companies. Reaching out to customers you have done an installation job can get you annual service work for any call back issues as long as you maintain a good relationship with that customer. Localised internet search engine optimisation can help your HVAC business stand out on the market, this is something you can do yourself or hire someone to manage. Other avenues of paid advertising can include radio, television or printing. Printing and mailing sales letters, flyers or booklets specially designed for your target, work well for campaign development. Social media is also a powerful engagement mechanism, including Facebook, Youtube, LinkedIn etc. Other powerful channels can be listing on relevant HVAC industry directories, association memberships or certification institutions.

HVAC companies are generally well thought of by residential homeowners so your goal is to stand out from the rest of the market and your own competitors.

A customer’s primary reason for considering switching to a more efficient HVAC unit is often due to cost savings. When people come to choose the new unit they want to purchase, there are often choices they need to make, based on who your target audience is. If targeting the upper middle class, they tend to accept a higher price tag for improved comfort. With this market group, they tend to be less price sensitive and more quality oriented. Depending on your target audience, there are factors such as price, comfort, safety and energy to consider how to market based on your audience.

An excellent revenue growth approach is annual service and maintenance checks. These checks can be systemised inside your HVAC business so you can drive high quality, low cost. These routine visits allow you to maintain relationships with the customer, pick up any service work and get paid in the offseason. FieldInsight has a nice little system called the Revenue Growth System that explains this clearly.

An Australian survey showed that 60% of the work successful HVAC companies receive is through customer referrals and word-of-mouth. The best way to guarantee this source of work is to ensure that you deliver quality work in a timely manner and a polite way.

To reduce the risk of lulls and quiet periods where you might be required to borrow money, you need to systemize your marketing process and ensure that it’s executed regularly.

You can read our definitive  HVAC Marketing Plan  here.

4. Create a Sales Machine

Building a good sales system for your business is a core part of having a profitable and successful business. Improving conversion rates and reducing the time to get a quote to a customer is all part of creating your sales machine. For each step of this process ensuring profitability and follow up on quotes, helps oil your sales machine. This makes sure that you are always present in mind can have a dramatic effect on the viability and profitability of your HVAC business.

To be able to build profitable quotes and therefore a good sale system you need to be able to estimate accurately. To estimate accurately you need to understand and break down your job in to the beginning, middle and end of your project. You also need to know how long each of these job types will take.

Using the job management software can help you build function blocks which are made up of a labour hour and pass to complete a functional activity.

This can help you quickly build quotes over time and improve the accuracy of your estimation process.

Working in the Office

Simply winging it is not a great way to fly. A key learning here is to not take on work which you can’t control . There is a key step near where you analyse the market and determine where the opportunities are. From this you can then organise your business to be the exact provider of the services you’ve chosen to offer. Evaluate your business and then limit yourself to the tasks you know you can control exactly. Operating in an exact mindset will lead to ruin.

The story of Leonardo is an example to take. He was 5 years into his HVAC business and hugely successful at marketing and had a massive 20 million dollars in annual sales. However, Leonardo never made a profit because of his pricing model was a problem.

Run your business on cash flow and profit. You need to look at everything through the lens of profit. As you know cash flow is the money coming in and out of your business and profit is the money your company keeps after everyone else including Uncle Sam Spade.

There is a great book called  ‘The Power of Positive Pricing’  by Matt Michel that is worth looking at for a deeper dive on this.

The quality of the equipment and installation method in delivering your customer is the first consideration. The second consideration is the level of service your team provides after installation. The ability to service the needs of your customer over the life of the system is what sets the professional Service Company apart from the amateur. The third consideration is the financial component, the two big aspects are the overhead costs and the profit motive We will do a deeper dive in pricing later but the key factor is ensuring you are profitable by working out your overhead cost for the month and making sure that is factored into your price.

5. Consider Ways To Manage Your Office & Admin Works

HVAC job management is a specialised industry where you might need large volumes of paperwork for a straightforward maintenance job that falls under warranty. For this you might need proof of purchase, service reports, invoices to the customer, invoices to the supplier, purchase orders and asset test reports. All these moving parts can be easy to lose and hard to manage, especially out in the field. Historically these documents have been managed with spreadsheets, whiteboards, paperwork, orders diaries, Google Calendar, office calendar, email notepads, scraps of paper and the great human brain.

This is of course getting harder and harder as business gets more complicated. The need to be competitive in the marketplace to deliver higher quality and work faster only grows with your business. From a human point of view, you want to be able to reduce the overall pressure on the people in the organisation to make life easier and improve customer service. Software automation can take a lot of the burden off of people’s shoulders and provide clarity and control over the business. This will reduce risks, improve profitability and improve business insight to help you ensure you are working on the right jobs and keep your team accountable.

6. Take Field Service Management Systems Into Account

Standard operating procedures in a high-performance HVAC business is when everything is documented and people are executing the same way each time. This allows for continuous improvement, consistency, higher quality, less stress, and easier training of new staff to replace people.

Another part of Performance Lab is software automation like FieldInsight. FieldInsight is an end-to-end  field service software  in Australia that allows you to automate parts of your systems so you deliver faster. It gives you traceability and accountability. If you want to go for an ISO 9000 certification you just want higher quality assurance regulatory assurance with SWMS records, job records, service report records and Asset Management.

HVAC Apps across the Business

7. Manage Accounts

A key understanding is to know the difference between what should be undertaken in Job Management Software like FieldInsight.com and what should be undertaken in Accounting Software like Xero and Quickbooks.

Your Job management software is for tracking and managing your jobs and your quotes, and ensuring that you are running an efficient and profitable system. Data such as tracking the hours spent on a job or the amount of materials used is critical to work out what work you want more of and what work you want less of.

Your accounting system is for completing tax requirements and having clear visibility of your Balance Sheet, Profit and Loss and cash flow. You need to ensure you have a Cash Flow Projection in place. This is vital to ensure that you don’t go too far into the red and you understand your break even costs, and profit costs.

This data is critical to work out how to build a profitable and successful business. It’s not a great thing to realise you are working at a loss but knowing this gives you the chance to turn it around. You need to find the work that gives you good profit margins and do more of that and find the work that gives you low profit margins like 3-5% and don’t take on those jobs.

Understanding that not all accountants are the same is crucial. Some accounts just look after your tax obligations and don’t look into the profitability of your business. So those guys may come to you one day and say you are out of money. Other accountants are business accountants and they help you work out if you are running a profitable business or not. You may need both if your business gets large enough, but you must always understand which type you have. If you do not keep an eagle eye on the profit and loss and where the money is going, you are open to people unfortunately ripping you off. I have heard countless examples of this, this can be very close to home, family, staff, or bookkeepers. You have to be vigilant, it is on your shoulders and it is your business.

Having a good job management system is vital. You need to be able to see how many jobs you are doing in a week and ensure every job has an Invoice and that’s been paid and is in your bank account.

8. Launch Your Business Faster With Software Automation

It is clear above there are many steps to building a successful HVAC, but all of them have a common theme. You need to be informed on what decisions you should make, what customers you should go after, what type of work you should quote, how you should quote, build lists of data of people to market to, remind customers that you’re still there and remind sales reps to follow up on activities.

If you are looking for the all-in-one  HVAC job management software  that helps you save hundreds of hours and improve your sales, FieldInsight is your go-to option. Book a FREE demo with us today to take your business to the next level.

Job Management Software to Start your Commercial HVAC Business

If you would like a chat about how you could Automate your Commercial and Retail HVAC Business, we would love to chat.

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What You Should Do Now

  • Book a Demo . You’ll be in touch with an automation expert who has worked in this space for over 5 years, and knows the optimal workflow to address your needs.
  • If you’d like access to free articles about managing HVAC workflows, go to our blog .
  • If you know someone who’d enjoy reading this page, share it with them via email, Linkedin, Twitter, or Facebook.

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How to start an hvac business—9 step guide.

How to Start an HVAC Business—9 Step Guide

If you’ve ever stepped into an air-conditioned building on a hot day or turned up the heating system mid-winter, you know how important HVAC businesses are. It’s easy to take for granted, but HVAC affects our everyday lives. As a future business owner, you may wish to capitalize on this by learning how to start an HVAC business. 

With a service-based business, you need to have both technical and administrative knowledge. While this can feel daunting, there are many simple ways to get started.

In this guide, we’ll showcase nine practical steps you can embark upon today in order to set up a successful HVAC company from the start. 

Here’s What We’ll Cover:

What Do HVAC Businesses Do?

9 steps to starting an hvac company, common mistakes hvac startups make, the bottom line—starting your hvac business, businesses related to hvac service.

An HVAC company offers specialized services for heating, ventilation, and air conditioning units either in residential or commercial properties. Professional HVAC technicians are trained to offer a variety of services including repairs, maintenance, replacement, and installation. HVAC businesses also serve as subcontractors in building and construction projects. 

HVAC businesses often step in and help customers when they’re in a pinch. This type of work can include emergency repairs and on-site visits when HVAC units fail or need maintenance. As a result, many HVAC companies offer both normal business hours and on-call services.

hvac startup business plan

Types of HVAC Businesses

Technical knowledge of HVAC operations is usually similar, no matter which type of field you start work in. There are, however, a few different specialties that you can choose to offer as an HVAC business owner. 

The three most common types of HVAC businesses are:

  • Residential: HVAC companies that specialize in residential services are most likely to work with homeowners in single-family homes, or in complexes like apartments and townhomes. Specific services vary, but most units are small and compact.
  • Commercial: This type of HVAC service is suitable for larger buildings and commercial properties. Units are larger, even industrial in size, and ventilation is a key component. 
  • HVAC contracting: As an HVAC contractor, you may focus more on installation and implementation. Builders and construction firms might hire HVAC contractors or specialists to develop the heating and cooling plans for new properties and to install these systems according to code.

If you’re interested in starting an HVAC business, you likely have some experience in the field already. Whether you’ve been working in the HVAC industry for some time, or you’re new to the HVAC industry and dreaming ahead, it’s always helpful to set goals. The nine steps below provide a blueprint to follow if starting an HVAC business is on your list. 

1. Develop Your Business Plan

If you want to start an HVAC business that’s made to last, start with a strong foundation. Developing a business plan is one of the simplest ways to do that. This document or outline establishes the vision for your business in the HVAC industry over several months and years.

When writing your first HVAC business plan, you should make sure to include key points such as:

  • The elevator pitch that summarizes what your company does
  • The legal structure of your business 
  • A summary of management and employment 
  • Projected debts, liabilities, and revenue
  • Research about your competitors and target market

2. File Business Paperwork

With your business plan in hand, you can move forward to making things official. Small business requirements vary by state of residence. Check with your local clerk’s office or county government to determine the requirements for a HVAC technician business permit. 

If you maintain a physical office or business location, you may also be required to obtain a zoning permit. Keep in mind that many of these licenses will require small administrative fees. 

During this process, you should also submit your business information to the IRS to obtain an employer identification number (EIN). This step legitimizes your company and simplifies the process for your finances and taxes.

3. Calculate the Break-even Point

In business, a break-even point (BEP) is the moment at which your sales exceed your expenses. At this time, you’re no longer trying to float your business costs because your incoming cash revenue is high enough to cover them.

To calculate the BEP when you start your new HVAC business, you will need to identify:

  • Your fixed costs, including all associated expenses and overhead
  • The price of your standard or average service
  • The variable cost per job, which mostly includes materials and labor

Once you have these numbers, subtract your variable costs from the price of your standard service. Then, divide your total fixed costs by the number you just calculated. The end result is how many jobs or services you would need to complete or sell in order to break even.

4. Set up Banking and Accounting Structures

Financially, it’s always a good practice to separate your personal and business finances. With your EIN in hand, you can easily set up unique checking and savings accounts through the bank of your choice. This provides transparency and protects your personal assets. 

Additionally, it’s wise to plan for consistent, organized accounting and bookkeeping. Whether you hire an outside expert or maintain these processes internally, the point is that you don’t wait to keep organized financial records.

An accounting platform for HVAC businesses can also make this process smoother. With a powerful mobile platform, you can accomplish crucial business tasks like invoicing, overhead expense tracking, payroll processing, and more. 

5. Get Small Business Insurance Coverage

Having comprehensive insurance coverage provides a safety net for a variety of things in your business. Not only does it cover you as an individual, but it also provides security for your vehicles, equipment, employees, and business assets. 

Insurance policies can prove to be a bit complicated, especially if you’re not accustomed to comparing them for business purposes. Make sure to seek out licensed insurance brokers in your area who are familiar with the requirements for HVAC services. 

As your business grows and changes, you may need to expand or change your insurance plan. This is a fairly standard process in business, particularly for service providers who work directly with customers in their homes or commercial properties. 

6. Develop a Plan for Covering Startup Costs

Although you can choose to bootstrap your business with personal cash assets at the start, many business owners either don’t have access to the total amount or don’t want to deplete personal savings. No matter what you decide, outline your plan for financing startup costs in the HVAC industry. 

In an HVAC company, your startup costs might include:

  • Vehicles 
  • Tools and equipment
  • Safety materials
  • Standard office supplies
  • HVAC licensing
  • Professional signage
  • Services like a phone line or Wi-Fi

A small business loan is only one of many options for financing your business. Business credit cards, lines of credit from local banks, and cash from investors could all prove to be viable options for securing what you need. 

7. Identify Your Unique Value Proposition

A value proposition is an idea or statement that clearly communicates what you offer to customers. This usually includes something that goes beyond the standard or baseline level of service that most people expect to get. 

As you develop your value proposition over time, think critically about what a customer can expect when choosing your company over other options. Will you offer special incentives or package deals? Do your employees have unique certifications or HVAC licenses?

Your value proposition also informs decisions related to marketing, advertising, social media, and lead generation. The more specific you are, the more prepared you will be to sell your services on social media and elsewhere. 

8. Set Your Rates and Pricing Structure

One of the decisions you must make before you open for business is how much to charge for things like service calls, diagnostic fees, installation, and maintenance. To accurately set your rates, take the time to research local competitors to get standard pricing for basic services. 

Deciding how to price your services has greater impacts than what you might realize. Although the amounts you choose influence how much you’ll make personally, pricing can influence which customers you attract, how you pay for overhead costs, and how long it takes your company to become profitable. 

If you’re struggling to know what’s reasonable, seek out a trusted business advisor or personal mentor to guide you through this process.

9. Pursue Continued Training Opportunities 

An HVAC certification is the baseline for the training and education you need to operate an HVAC business. You’ll also need to keep up with your state-issued HVAC license in order to stay compliant.

In addition to the basics, you must also pass and maintain various exams per HVAC specialty. This can include having professional licenses for operating small appliances, air conditioning units, high and low-pressure systems, commercial refrigeration, and more.

As you establish and grow your HVAC business, dedicate time to keeping up with your industry. Moreover, as you hire a team of employees, verify their qualifications as well. Having a highly trained team can provide huge benefits to your business and customers. 

hvac startup business plan

Why Start an HVAC Business?

One of the many questions that future business owners often ask is, “Will this business venture be a good idea?” Although each business decision should be a personal one, there are several reasons why starting an HVAC business could be beneficial both personally and professionally.

  • HVAC services are essential: Between the residential and commercial opportunities, the need for qualified HVAC providers is significant. Not only that, but HVAC isn’t just important for installation. Regular maintenance and replacement is required to keep these systems running smoothly for years to come. 
  • There is high profit potential: Recent HVAC workplace surveys show that there is a high upper range for profitability as an HVAC business owner. While there are many factors that influence this, including the size of your company and number of employees, there is potential for growth in the HVAC industry.
  • You can influence many different parts of the business: As the owner of your HVAC company, you can play a key role in its trajectory. From setting the business culture and providing opportunities for employees to serving the local community, the possibilities are endless. 

As you’ve learned, the potential for success in your HVAC business is great. That’s not to say, however, that you won’t encounter challenges along the way. How you overcome hurdles can strengthen your resolve as a business owner and leader.

Below are some of the most common mistakes that HVAC business owners make.

  • Not having the proper insurance: When you’re responsible for the installation of any piece of equipment in a home or property, you must understand liability. There are always safety risks associated with these services, but there are also ways to reduce them. Failing to secure insurance coverage and the proper licensing can set you up for disastrous consequences in the event of accidents or mistakes. 
  • Waiting to establish an accounting system: Occasionally, business owners assume that they only need accounting once they start making a certain amount of income. The truth is, however, that you need a system in place right away. Powerful accounting software for small businesses can help you handle your finances from day one. Starting an HVAC business is made easier when you have a solid accounting system from the very beginning.
  • Not keeping a good check on independent business activities: As a business owner, your level of involvement in daily operations may vary over time. You may eventually hire an HVAC technician and other employees to handle much of the leg work. No matter how hands-off you are, however, you should always keep a pulse on the amount and quality of work that the individuals you hire are performing. 

Remember, sometimes the only way to get started is to do the hard work. Yes, you will need to invest time and energy into solving difficult challenges, but that is the nature of business. The more comfortable you are with taking ownership of both wins and losses, the more you’ll be able to grow and adapt as your business grows. 

By following the above HVAC business plan, you’ll already have an advantage. Although many steps are basic in nature, following them can help you reap the benefits of a business that’s built to last. Get started on your HVAC business today to turn over a new leaf in your career. 

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How to Create a Solid HVAC Business Plan [+ FREE Template]

  • February 1, 2022
  • Or Rozenberg
  • 11 min read

What can we say? America loves staying comfortable indoors, whether that’s air conditioning at the perfect temperature in the summer or just the right about of heat to keep us toasty come wintertime.

If you’ve decided to start your own HVAC business, now is an excellent time. There continues to be an increased demand, and competition is fierce. What’s particularly great about diving into the HVAC industry is you can start as small or as big as your startup budget can provide. Part-time HVAC owners can bring in a side income with their full-time job, growing as they bring in more revenue and more long-term clients.

By proactively planning their next steps, business owners can meet their goals more efficiently, such as attracting more customers, fewer job cancellations, and an overall growth perspective. The best way to plan for your business is to have a written, formal business plan.

The importance of having a business plan in the HVAC industry

Your HVAC business plan is a formal document that you’ve created that outlines who your business is now and where you want your business to be in the future. It’s more than just sharing your goals. It’s developing a step-by-step outline of how you’re going to achieve them and what you need to get there.

As you grow your business, you can look back on your business plan as a guide to where you should focus your efforts, especially if you hit an unexpected slump. With an effective business plan, you’ll be able to expect the unexpected more quickly and take the proper measures without any wasted downtime.

Not only is your HVAC business plan a handbook of your business, but it’s also a huge asset when your company is applying for investments or funding. Investors will be able to see the map you’ve laid out and be more likely to decide in your favor. It’ll also give you an idea of just how much money you need investors to finance. The last thing you want is to ask for too little when it was probable that you could have attained more.

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How to write an HVAC business plan

Some of the most successful businesses in the HVAC industry have created their in-depth, impressive business plans from a template. We’d be willing to believe that some reputable brands have started by finding a free business plan template from a reliable website like Workiz and used it to make their plan their own.

Your HVAC business plan doesn’t need to read like a resume, where there’s only one way to do it, although structured paragraphs and subheadings will make it easier to read and refer to. There are some key components you should consider including to ensure you cover every area needed to promote your business and reach your goals.

Executive summary

Business overview.

  • Startup Summary
  • List of HVAC services & Prices

Market analysis

Business operations.

  • Marketing and Sales Plan

Financial plan

Your cover page will outline the basic information about your business. This includes your business name, address, your name, your logo, branding, etc. Think of it as an introduction to your business.

Your executive summary should only be one page that outlines what a reader can expect to see throughout the rest of your business plan. It acts as an aspect and summary highlights the key information geared toward whoever is reading your business plan. It should include the essential facts included in your business overviews, such as the history of your business and your mission statement. In many cases, you can change your executive summary depending on whether the reader is a potential investor or a member of your team.

The HVAC executive summary can include the amount of money you hope to have invested or what sets your company apart from the competition.

Your business overview will provide the foundation of your business. It will spotlight your company’s mission, values, purpose, and vision. It outlines the structure of your business and the roles of important stakeholders and key players. It also includes the legal structure of your HVAC company (sole proprietorship, partnership, or corporation). If you are a corporation, it will include your registered business name and number as well as your corporate number. Here is where you can also highlight your business goals.

Startup summary

Your Startup summary can be a key section of your business plan for potential investors. It’s crucial for business owners who are starting up from scratch and want to outline the tools and equipment they need, the costs involved, and the prices they will need to charge to break even in the first year or two. Your startup costs can include items as simple as uniforms to large capital assets such as a truck.

List of HVAC services & prices

Under this section, you will list the services your HVAC company provides. Before creating this list, you will likely have researched the industry, gotten an idea of what your competitors are doing, and found some gaps your business can fill. You can also outline the price of each service, whether it’s hourly or by the job, etc.

Your market analysis should include a detailed description of who your customers are and their needs and demographics. If you haven’t had the opportunity to provide your services to customers yet, that’s okay. In this area, it’s more about the research you’ve done to get an idea of how you want to position yourself in the market. For example, you will list the age, gender, income, area of a particular city, etc. What makes this audience unique, and what makes up their needs and wants?

You can also outline who your competitors are in this section. What services are they providing that you aren’t? What type of customers are they attracting? How large is their team, and are they charging similar prices for their services? This area, of course, will change as you and your competitors change.

This section dives deeper into the “how” of your business. It will outline what equipment you own or rent, the software, and hardware, such as laptops and smartphones, and the applications downloaded onto them, as well as the administrative side of your business. You can list your employee roles (including your own), salaries, invoice processes, tax processes, and more.

Don’t leave gaps, as the more information you provide in this section, the more legitimate your business will be to investors. It proves you’ve put in all the work necessary and are serious about your brand’s growth.

Other sections you may choose to include are both your short-term and long-term assets.

Marketing and sales plan

Typically your marketing plan is separate from your business plan. In this section, however, you can outline a few strategies you have in mind to start bringing in new customers. You can also outline your sales funnel and the steps your potential customers will take to acquire your services. Much of your marketing and sales plan can include your focus on building a landing page or website and developing a base following on local social media.

Your financial plan is the most vital component of your HVAC business plan, especially if you’re not already bridging in a supportable revenue stream. This section should include what assets you already have, the debt you already owe, and any projected income you are relying on receiving in the near future (think expenses, revenue, outstanding invoices, bank funding, etc.) It would be best to outline your financial goals in as much detail as possible and why. Provide a budget for the next few years based on your sales forecast.

Your summary should be simple. Give a brief overview of what was just covered without repeating everything said. You should also retake this opportunity to achieve your “ask.” If a potential investor is reading, you want to make it as straightforward as possible how you want their help. Sometimes investors will offer to review your business plan solely to get an idea of who you are and what your business goals will be. If you don’t include the fact that you’re open to investors, they could simply say “looks good” and move on to another project.

Click here to download our free HVAC business plan template, including critical elements you’ll need to maximize the success of your business. Simply go to the three dots icon on the right upper bar menu and hit “Download” to print the file and fill it in.

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Final thoughts

It’s important to remember that you don’t need to get swamped by the idea of perfection. If your business is brand new, your plan will likely need only contain the basics. As you grow and get an idea of where your business is heading, that’s when you can adapt and change your HVAC business plan to meet the needs of your clients and your business.

The HVAC industry isn’t disappearing as long as we need homes to live in. Building a business plan that can act as a handbook to success curated by yours truly can truly help you stand out from your competitors, bring in new clients, and reduce the risk of cancellations. It’s one of the many tools you should have with you as you dive into life as a business owner.

What are some other handy tools entrepreneurs in the HVAC industry can utilize? You can power your business with the integrations available from Workiz . Manage everything from one platform and allow yourself more time to focus on what really matters. HVAC teams using Workiz increase their revenue by 22% on average . Reach out for a conversation today.

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How to Start an HVAC Business

how to start an hvac business

On This Page:

12 Steps to Start an HVAC Business

How big is the hvac industry, what are the key segments of the hvac industry, who are the key competitors in the hvac industry, what are the key customer segments in the hvac market, what are the typical startup costs for a new hvac business, is owning an hvac business profitable, what are the keys to launching a new hvac business, how to start an hvac business faqs, other helpful business plan articles & templates.

If you’re thinking of starting your own HVAC business, you’re in luck. The heating and air conditioning industry is booming, and there’s plenty of room for new contractors to make a name for themselves. Below you will learn the keys to launching and running a successful HVAC business.

Importantly, a critical step in starting an HVAC business is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

Download our Ultimate Business Plan Template here

Step 1 – Conduct Market Research for Your Target Service Area

Your first step in starting an HVAC business is to conduct market research – but don’t expect to find an area where no one offers air conditioning or heater repair. Instead, you need to target a location with enough demand that your company will be competitive.

For example, if you live near the beach and everyone has their AC running constantly through the summer, you’ll need to price competitively if you want to make a sale. In cities with frigid winters, where everyone’s furnace is running constantly to keep their house warm, your company will have plenty of opportunities for sales during those months.

In addition to knowing where people are using HVAC systems most frequently, it helps to know where there is a large population of homes with older HVAC systems that are due for replacement. Homes in these areas will likely be more open to replacing their current unit, and you can position yourself as the go-to choice for replacement installation.

Step 2 – Choose a Business Name

You’ll want to give your company an effective name that’s easy for customers to remember.

Try using the services you offer in the business name, such as “Carmel Air”, “HVAC Inc” or “Air Conditioning Specialists”. You might also consider including your last name in the business name, such as “Smith HVAC” or “Higgins HVAC”.

Step 3 – Write an HVAC Business Plan

Having a realistic business plan is essential to starting any type of company. It outlines your goals and strategies for achieving them, which allows you to better manage your time and resources as you work towards success. This step helps you develop a mission statement, decide on a budget, figure out a marketing plan and identify the legal necessities that apply to your area.

Step 4 – Pick a Location

Choosing your location means finding the right place for your business. This is usually done by identifying where you’ll find most of your customers, then picking the best spot to offer HVAC services that are within an easy drive or commute.

To get started, create a list of potential locations and then rent a space that meets your needs.

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Step 5 – Register as a Business

You’ll need to register as a business with your local government. This means you’ll have to pay all of the applicable taxes and look into obtaining any necessary licenses or permits that apply to HVAC systems. For example, some states require commercial heating, ventilation, and air conditioning companies to be licensed.

Step 6 – Get Business Insurance

Once you’ve set up your business, make sure to get insurance. This covers any damage that may occur during service calls and prevents lawsuits if your customers are dissatisfied with the work you perform.

The general rule is that every new company needs general liability and workers’ compensation insurance.

Step 7 – Get the Right HVAC Equipment and Supplies

Make sure you have all of the HVAC supplies and equipment necessary to get started, such as tools, appliances, and signs for your company. If you need any items, factor in the cost when setting up your budget.

Step 8 – Market Yourself Effectively

There are many HVAC companies out there so you’ll need to find a way to stand out from your competition. You can use social media, word of mouth, or paid advertisements for this purpose.

If you want to make more money through referrals, develop an excellent customer service reputation, and recommend only the best products and services to your customers.

If you want to go the traditional route, then you should develop some business cards and flyers that can be distributed.

Step 9 – Hire Employees

Once you get established, you might even need employees. Make sure to advertise in places where good workers are likely to be looking for a job.

Also, take time to interview each of your applicants so you can get the best workers on your team. Your business will only succeed if you hire reliable employees who know how to communicate with customers and get the job done right.

Step 10 – Price Your Services Competitively

You’ll need to set a fair price for the HVAC services that you offer. You should also be ready to negotiate, especially if your business is new and you’re still trying to gain a foothold in the industry. For example, if you know how to work with clients on maintenance costs, you might be able to get them to sign up for a year of service instead.

Step 11 – Keep Records

To run a business, you’ll need to keep good records of everything you do and how it’s performed. This includes information about HVAC systems that have been installed or repaired, your employees and the services they’ve provided, and any contracts you sign with new customers.

The most reliable way to do this is by using accounting software that allows you to track your business data in an organized manner. You can then find reports that include useful information for analysis.

Step 12 – Adopt the Right Mindset

Running a successful HVAC business requires more than just technical knowledge. You’ll have to learn how to effectively communicate with customers, work with employees and promote your business if you want to produce positive results.

If you follow these steps, then your HVAC business should do well into the future. You can hire people as needed, but you must understand how every aspect of the industry works first. That way, you’ll be providing top-notch HVAC service to your customers and they’ll keep coming back for more.

The heating and air conditioning industry is a multi-billion dollar industry reaching more than $120 billion in annual revenue. This trend is expected to continue as HVAC services are one of the most important methods of modern day home comfort and convenience.

Every year, HVAC technicians install millions of furnaces, central air conditioners, heat pumps and other heating and cooling appliances in homes across the United States. These professionals are also responsible for keeping these systems running smoothly on a daily basis.

Finish Your Business Plan Today!

The HVAC industry is made up of two distinct segments, commercial and residential. There’s also a third sector that’s usually combined with these two aspects: engineering and design.

There are about 2 million commercial HVAC systems in the United States, but only 25% of them are actually controlled by a central thermostat.

This means that many companies are wasting money on heating and cooling costs because they don’t have a centralized system for monitoring and controlling HVAC output.

If you can offer your commercial clients a fix to this problem, then it will be easy to get new customers and grow your HVAC business.

Residential

HVAC systems for residential use make up the largest category, and this is where you should focus much of your attention.

Your HVAC business plan should include information about how to work with homeowners and home inspectors, plus tips on how to maintain equipment and keep it in good working order.

This will ensure that you can provide valuable HVAC service to your customers and they’ll recommend you to others in the future.

Engineering and Design

This third branch is related to commercial and residential applications, but it’s unique in that it focuses on how HVAC systems work with other building elements.

Engineers and designers help clients plan and build structures that are energy efficient and meet their HVAC needs.

You only have a handful of major competitors, but they may offer similar services so you need to figure out how to stand out.

Service providers

It’s not just HVAC contractors that can give you competition. You’ll also face off against building maintenance companies and other service providers.

Your company needs a clear focus so it remains distinct from these other businesses that have similar offerings.

Manufacturers

There are a few manufacturers of HVAC equipment, and many of them also offer repair and maintenance services. This is a much more direct competitor because they may actually sell the same products as you.

You’ll need to go beyond just having a basic understanding of HVAC equipment. You need to be familiar with the manufacturer’s warranties so you can recommend repair services when necessary.

Before you can begin to reach customers in your target market, you need to understand who they are.

Most people get their HVAC system at home because it’s where they spend the most time. Those systems tend to break down or wear out after about 8-12 years, so homeowners are always looking for HVAC contractors.

Commercial buildings

Business owners and managers want their heating and cooling systems to keep the employees comfortable and the building at a pleasant temperature. Making these customers happy is about more than just fixing broken equipment; you may need to help them manage costs and improve energy efficiency.

Industrial companies

Large buildings, factories, construction sites, and other industrial areas require HVAC equipment to meet the specific needs of the organization operating in that space. If your company doesn’t have experience with these types of setups, you need to find someone who does.

Your startup costs will depend on how you plan to run your business.

Understanding the leanest way to get started is one of the most important things you can do when planning your HVAC company. Whether you choose to work alone or hire employees, make sure it’s a cost-effective decision that doesn’t eat away at your profits.

Costs to consider when you’re just starting:

Business licenses, permits, and certifications

HVAC contractors need specific licenses in many areas. The only way to get them is by meeting the requirements laid out by your state or locality. You may also need additional training or degrees so it can take up to 6 years before you really start making money.

Supplies and equipment costs

You’ll need to buy tools, cleaning supplies, and other items to make sure your HVAC business is operational. If you’re planning on hiring employees or contract workers, you may need to provide uniforms for them as well.

Insurance Premiums

Hiring new people can increase your insurance costs so you’ll need to budget accordingly. You may also be more exposed to risk if you’re working in customers’ homes.

Rent or Mortgage

It takes something as specialized as HVAC work to necessitate renting your workspace instead of operating out of your home, but the cost is still significant. That’s why most contractors start with small home offices before they move into something bigger.

Marketing and Advertising Fees

You need to market your business to compete with other companies and attract new customers. It’s a key part of getting your name out there so you can build a reputation as an expert in the field.

Day-to-Day Operations

Once the HVAC equipment is installed in your customer’s house, worksite, or industrial facility, you still need to manage it. That means your work doesn’t stop when the sale is complete; you need to make sure your customers are happy with their equipment and repairs.

Staffing and Training Costs

The more employees you hire, the higher your monthly costs will be. HVAC companies start small (often with just one or two people), but they can grow much larger if they want to. You may need to add staff to take on large jobs or provide 24-hour service to your customers.

The short answer is yes. HVAC work is a growing industry that’s experiencing high demand from both residential and commercial customers.

To run a profitable HVAC business you should know how to:

  • Estimate the costs of replacing HVAC equipment before you make a sale
  • Identify fixes that will save your customers money over time
  • Charge competitive prices for your HVAC services
  • Advertise effectively so you can attract new customers and increase retention rates

Your HVAC business won’t start generating revenue until you become the go-to HVAC professional in your area.

Starting something new is always risky, but it can be even harder when your industry is dominated by local companies that have been in business for decades. You need to develop a strategy that generates leads, turns them into paying customers, and makes sure they remain loyal.

Industry recognition and growth

You can’t grow your HVAC business if no one’s ever heard of you, so you need to get the word out there as soon as possible. Be sure to join industry associations and put up a professional-looking website with photos and testimonials from happy clients.

Long-term strategy

Every HVAC contractor starts as a one-man operation, but it’s important to think about how you’ll expand down the line. You don’t want to remain a small business forever, so make sure your plan includes growth and hiring more employees as soon as possible.

Competition

You’ll need to establish yourself as the best HVAC contractor in your area before you can attract enough customers to make a living. That means making sure you beat out all of the other companies when it comes to quality and reliability, and offering better service overall.

Before going into the HVAC industry, it’s a good idea to research what you can expect as a business owner. That way, you’ll be well equipped to target customers and set up a system for getting new referrals.  

Additional Resources

HVAC Mavericks  

How to Finish Your Ultimate Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your HVAC business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Where Can I Download an HVAC Business Plan PDF?

You can download our HVAC business plan PDF  here. This is a business plan template you can use in PDF format.

What are the Future Trends in HVAC Business?

Several trends will have a major impact on how HVAC businesses operate over the next few years.

Green building initiatives

The federal government is requiring all new homes to be green by 2020, and many states also have policies that address energy efficiency. This trend will continue and encourage homeowners to use more environmentally-friendly HVAC equipment.

Businesses addressing climate change

More organizations are starting to recognize how global climate change affects their bottom line, so they plan accordingly with changes such as more insulation and energy monitoring. This trend will eventually expand outside of businesses and impact how everyone consumes electricity.

More distributed HVAC equipment

In the past, many buildings only needed a small heating and cooling system. Now, more mid-sized structures have multiple systems to handle different parts of the building. You may need to maintain or install several types of HVAC in your new business.

How Can You Make Money with an HVAC Business?

You can make money with your HVAC company by selling new equipment, offering repairs, and doing general maintenance on existing systems. Here are some of the most common ways to earn money:

Installations

This is one of the best ways to gain new customers. HVAC installations can be expensive so you can charge more for your services.

Even if you're not selling new equipment, you'll still get business by keeping existing HVAC units running properly. It helps to have a list of trustworthy subcontractors that you can refer to in an emergency. If someone's furnace breaks down during the winter, they'll be happy to have someone who can help them.

Maintenance contracts

Selling monthly maintenance contracts is a great way to earn recurring revenue from your customers. You handle all of their HVAC needs so you can collect payments for as long as they want to stay with you.

Parts and supplies

You don't always get new customers by selling parts and supplies, but it's an easy way to boost your profits. If you're purchasing items in bulk, you can offer them to your existing customers at a lower price than your competition.

Selling HVAC Equipment

Contractors who sell their equipment often find that they have a competitive advantage over other companies. You can purchase new units in bulk and sell them to your customers for a considerable markup. That way, you're making money on the HVAC installation as well as from future monthly maintenance fees.

How Much Money Does an HVAC Business Make?

It depends on how much capital you start with and how long it takes you to gain customers. If you want to attract new business within the first year, your HVAC company will need to offer a superior service at a higher price than your competition.

A Few Other Things to Consider

To make the most money possible from your HVAC business, you'll need to learn how to estimate square footage. If you're giving a price quote before seeing the building, you won't have accurate numbers. Be flexible with your prices and try to be as precise as possible when explaining your services.

During each month, you'll be dealing with budgets and deadlines. Customers expect HVAC contractors to arrive on time and finish their work as quickly as possible. Make sure that your employees meet these standards and provide them with the right tools for the job.

Your HVAC business will need a reliable telephone system, particularly if you're doing repairs or installations. Everyone will be contacting you for these services, so don't let your phone system become outdated. If you want to upgrade or change anything about your phone line, now's the time to do it.

HVAC businesses face a lot of competition, but there are certain advantages that you can use to stand out from the rest.

For example, if you offer a list of recommendations and tips to your customers, they'll be more likely to work with you. They may even recommend your company in the future when one of their friends or family members needs help.

What Do You Need to Start an HVAC Business?

The most important thing is to learn about all aspects of HVAC. You may need to attend a trade school or hire on with another company to get hands-on experience. Once you've gathered some knowledge, you can start looking for the supplies that you'll need to begin your own business.

You should always have contracts and invoices available for your customers, and you can create them with just a few clicks on your computer. Even if you're doing repairs, it's important to work from an invoice so that your customers will know how much they owe you.

It also helps to have a website created by professionals who specialize in these kinds of services. If someone is searching online for an HVAC contractor, they'll expect to see a site that looks modern and informative. That way, you can reach out to potential customers before they even contact you about your services.

You need all of the supplies and equipment necessary for heating and cooling systems, such as thermostats and circuit boards. It's also a good idea to stock up on filters and other supplies, such as window insulation for older buildings.

To complete repairs, you'll need an assortment of tools that includes screwdrivers, hammers, and tape measures. You should always have these items around because they can come in handy the next time one of your customers experiences an HVAC emergency.

There are often times when HVAC systems can't be repaired and need to be replaced with new ones. This is the most expensive service that you'll provide for your customers, so you must be ready in case they ask for a replacement system. Consider how much money you have and what kinds of loans or other financial assistance you can take out before you start stocking up on new heating and cooling units.

There are several ways to promote your HVAC business, including flyers, word of mouth, and social media. Write a press release about your company's grand opening or other major events, then distribute them in person or post the information online. If you have a long list of customer reviews, you can create a website that focuses on those testimonials.

You may need to hire employees to meet the needs of your customers. Once you have enough staff members on hand, it might be time to rent an office space to separate work life from home life.

Business Plan Template & Guide For Small Businesses

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How to start an HVAC business in 10 steps

Thinking about starting your own HVAC business? Now could be a great time to start your own business if you’re a licensed HVAC technician . Due to the pandemic and increased environmental concerns, people value air quality and proper ventilation more than ever. And not only that, but well-working HVAC just makes everyone happier.

But even if there’s an increased need for HVAC services in your area, did you know that 50% of small businesses fail in the first 5 years? In this guide, you’ll discover step-by-step help to get your HVAC business started off right.

1) Choose the type of HVAC services you’ll provide

The first step to starting an HVAC business is to decide what sort of HVAC services you’ll offer.

If you’re currently working as an HVAC technician, you may already know the kind of services you’d like to provide. (If so, feel free to skip to the section on creating an HVAC business plan.)

But if you’re wondering how to become an HVAC tech or what kind of heating and air conditioning services to offer, take a look below.

Depending on your location, training, and licensure, your business’s services could include:

  • Air conditioning (AC) maintenance and installation
  • Heating system maintenance and installation
  • Air-source or geothermal heat pump maintenance and installation
  • Air quality services, such as allergen reduction or air purification
  • Ductwork maintenance and installation
  • Refrigeration repair and maintenance
  • Generator repair and maintenance

Before we jump into creating a business plan, let’s cover some common questions.

Is becoming an HVAC tech worth it?

Yes! HVAC industry jobs are increasing at 4% per year, right on track with other jobs in the economy, according to the U.S. Bureau of Labor Statistics (BLS) . The median yearly salary for HVAC professionals is $50,590—about half of HVAC techs earn less, and half earn more.

But those numbers don’t include the profits of owning an HVAC business, where you can increase your earnings through business growth.

Is becoming an HVAC technician worth the time and money?

Becoming an HVAC contractor doesn’t require a college degree (this can save you both time and money), but you do need HVAC certifications, including training and licensure.

However, you can earn a good living in the HVAC industry—even after the cost of training and licensure. This means it can be a great investment of your money and time. Working in HVAC is an essential skilled trade that helps people (and their homes!) stay healthy and comfortable.

Ready for the next step? It’s time to start putting your goals to paper.

2) Create your HVAC business plan

Planning can save you time, money, and frustration. (Just ask that frustrated homeowner who skipped the HVAC tune-up before the summer heat!)

Planning can also lead to long-term success—having an HVAC business plan is important, and writing a business plan is simpler than you might think.

Here are key sections to tackle when creating your business plan:

  • Executive Summary: Describe your HVAC business. How will you measure its success?
  • Overview: What's the background and legal structure of your business? What are the key things people should know about it?
  • Industry Analysis: What does your research show about the competing services and opportunities in your area?
  • Competitive Analysis: Who are you directly competing with for HVAC clients? What are the strengths and weaknesses of your competition?
  • Marketing Plan: How will you reach new clients? Briefly outline your marketing strategy.
  • Management: What unique licensure, skills, or years of experience do you bring to the HVAC business?
  • Operations Plan: How will you manage the daily tasks of your HVAC business, such as making appointments for repairs, handling estimates, and more?
  • Financials: What do you expect your HVAC company to earn? What will your expenses be? What HVAC business insurance do you need?

As you’re writing your business plan, you might have some questions about starting an HVAC business. We’ll address a few common ones below.

Is HVAC a good business to start?

Yes, it can be. Starting your own HVAC service means you’ll be providing an essential service to your community. Homeowners, commercial property owners, and property managers will always need licensed, expert HVAC professionals to help solve HVAC issues.

What are the benefits of starting an HVAC business?

The benefits to starting an HVAC business can include:

  • Working for yourself on your own schedule as a licensed HVAC technician
  • Creating jobs in your community
  • Running a business that provides an essential service
  • Ability to earn more than if you worked as an employee
  • Growing your small business at your speed
  • Specializing in your area of interest
  • Building a business affordably and with a low initial investment

Read 5 Questions to Ask Yourself Before You Start a Business to know if building a business from scratch is right for you.

3) Identify the niche for your HVAC business

Everyone has their specialty—including you. You’ll need to pinpoint your niche, which is ultimately the area in which your HVAC business will specialize.

Maybe you prefer to work on a certain brand of HVAC equipment. Or perhaps you’re a night owl and use that as a competitive edge, providing emergency after-hours heating and air conditioning services. These are the factors that can define your business’s niche.

Next, research the local HVAC competition. This can help you decide what your niche is, based on how your training, strengths, and preferences can meet the HVAC needs of your community. Things to consider when deciding on your niche include:

  • Equipment: What sort of HVAC equipment or brands do you prefer to work with? Will you specialize in oil, gas, or electric heating?
  • Service area: What regions do you serve? Choose how much time you’re willing to travel.
  • Languages: Are you bilingual? This can be a competitive advantage for your business.
  • Residential or commercial services: Do you service home or commercial equipment? Are you able to service apartment communities?
  • Environmental concerns: Are you passionate about physical or environmental health? Use those interests to the advantage of your business!

4) Uncover the Unique Selling Proposition (USP) for your small business

Next up: Think through your unique selling proposition (USP). This is what sets your HVAC business apart from competing businesses.

The clients you want to attract have many choices, so your business should focus on what it can offer that is unique to your service area.

For example, instead of advertising that you offer residential services for electric air conditioning and heating appliances, your business might have the USP of “environmentally conscious residential HVAC services, specializing in clean energy use and heat pump installation.”

Your USP targets your ideal customer directly. At any point, you can broaden or narrow your USP to better serve the needs of your local community.

5) Pick your HVAC business name

Now that you’ve pinpointed your USP, it’s time to come up with HVAC business names. (This is the fun part!) Choose something that represents your USP and niche, making them clear to customers.

For the USP example above, a name like “Clean Energy HVAC” or “Alex’s Green HVAC Experts” might hit the mark. Get out a pen and paper, brainstorm freely, and see what you come up with.

Once you’ve decided on a few favorites, do a quick check with the Secretary of State to make sure your chosen business name isn’t being used in your area. You can also ask for input from family and friends to make sure it represents your business well. Remember, your business name will be on everything from uniforms to social media marketing.

Ultimately, pick a name that you’re happy with and reflects your HVAC business. This name is what you’ll build your future HVAC empire on!

6) Choose the location and equipment for your HVAC business

When starting an HVAC business, you’ll need to invest in some initial equipment and decide where your office will be located.

Renting retail and office space can be a big expense—it’s okay to start small. You don’t necessarily need a location or office for customers to come to, since you come to them!

Once you’ve chosen the area you’ll service, you can start working from a home office. As you grow, you can invest in office space for a central place to run your operations.

As far as equipment goes, as any tradesperson knows, you’ve got to have the right tools to get the job done. (Remember, as you grow your business, additional HVAC contractors will also need a set of essential tools.)

You’ll need to invest in resources such as:

  • A vehicle large enough to carry tools and HVAC equipment
  • A well-equipped tool kit, including a cordless power drill
  • Shears or snips for metal
  • Voltage tester and natural gas detectors (if needed)
  • Vacuum pump
  • Refrigerant scale
  • Reciprocating saw blades and saw
  • Office equipment (such as a computer and printer)
  • Scheduling and appointment apps or software
  • Office phone

7) Create a financial plan for your HVAC company

Even if you have low start-up costs, don’t skip out on making a financial plan.

You already know you need the right HVAC tools, equipment, and marketing, but how will you pay for them? And how will you protect yourself and your business if something goes wrong? After all, HVAC is highly skilled and technical work. And the truth is all small businesses need small business insurance . (More on that below!)

In addition, think through your pricing. Price your services to cover your operation costs, stay competitive, and make a profit. And be sure to set up a separate bank account for your small business earnings to keep your business and personal finances separate.

How much does it cost to start an HVAC business?

The cost of an HVAC business start-up depends on your specialty, whether or not you already have the necessary equipment, and more. Overall, it’s estimated you’ll spend between $2,000 and $12,000 to start your HVAC business.

You’ll need to think through all the costs your business might have—not only the cost of tools and equipment. Depending on the type of services you offer, these could include:

  • HVAC certification and licensing fees
  • Small business insurance
  • Wear and tear on your vehicle and tools
  • Self-employment taxes
  • Additional training
  • Marketing costs for business cards, online ads, or a website

But don’t let the initial expenses stop you from starting your new business. You can finance start-up costs in several ways, including using personal savings, crowdfunding help from your community, family, and friends, or a business credit card or loan.

Insurance for HVAC businesses

Accidents can happen, which is why HVAC business owners must have the right business insurance coverages in place—especially in the highly technical field of HVAC work.

Below are insurance coverages to consider for your HVAC business:

  • Workers’ compensation insurance : This coverage protects employees if they get sick or injured while working for your HVAC business. In the U.S., every state requires workers’ comp, and if you don’t have it, there are serious consequences—including having to shut your business down. See what you’d pay for workers’ comp with our 60-second workers’ compensation calculator .
  • General liability insurance : This coverage can protect your HVAC business if you’re sued for a property damage or injury claim. Don’t let your HVAC company go out of business by not having this in place!
  • Property insurance : This can protect all equipment needed for your HVAC business, including any tools, office equipment, and more. This coverage could potentially be included as part of a BOP (more on that below!).
  • Business Owner’s Policy (BOP) : A BOP is a packaged policy that can protect your new business from several kinds of liability or damages. It’s a bundle of small business insurance coverages and can include general liability insurance and property insurance coverage.

8) Get your paperwork in order

Once you’ve got a name and a business plan, it’s time to put your business to paper.

a. Register your HVAC business name with your state

Remember all the work you put into picking out a business name? Make sure to protect it! Register your business with your state and select your business structure (a sole proprietorship, partnership, or LLC).

b. Apply for your EIN

This step is quick and easy. Get your Employer Identification Number (EIN) to identify your business for tax purposes. You can do so here .

c. Obtain any permits or licenses required

Research to determine what permits or licenses, in addition to HVAC technician licensure, are needed to run a successful HVAC business in your community.

9) If needed, hire your first employees

If you’re starting your HVAC business in the busy season, you might need to hire help sooner than you think!

Make sure you have the appropriate liability insurance coverages in place (including workers’ comp coverage) first—and complete all your registration paperwork with your state before you get started hiring.

As your HVAC business grows, you might consider hiring an office assistant, additional HVAC contractors, and possibly a general manager to help manage employees. And as you scale your business, make sure you’re staying connected with your life, even during busy HVAC seasons. Check out 4 Ways to Stay Sane as an Entrepreneur to learn how.

10) Spread the word about your HVAC business with a smart marketing plan

Ready to start serving new customers? Now it’s time to market your business!

You can spread the word slowly as you build your customer base or, if you already have additional technicians to help, you can dive all-in to marketing to grow your business quickly.

Before you start carrying out your marketing plan, know who’s in your target market. Make a shortlist of who you consider your ideal customers, considering location, preferred payment methods, type of residence, or commercial building.

  • Build your website. Buy the URL for your HVAC business name, whether or not you’re ready to build your website. You can use a user-friendly website service like Weebly or Squarespace to create one yourself.
  • Create a business listing on Google and Yelp. This step is important for businesses like yours that focus on serving local customers. Build out your Yelp and Google My Business profiles to make sure you’re found when potential customers are looking to fix their heater mid-winter.
  • Create your social media profiles. You’ll need a business social account on platforms where your target market is looking for HVAC help (like Facebook, so you can participate in neighborhood groups).
  • Place brochures, flyers, and business cards at key locations. Where do homeowners or business owners gather in your community? Distribute brochures in your area.
  • Use word-of-mouth buzz. Tell others about your HVAC company. Ask existing clients to provide reviews and testimonials that you can share.
  • Provide discounts. Looking to grow your client base, and you already have satisfied clients? Offer loyalty or referral discounts to thank them.

Start your HVAC business on the right foot

Starting an HVAC business can be a great way to serve your community, keep indoor air quality healthy and comfortable, and grow your income. But you need to have a solid business plan and the right liability insurance in place first. (With Huckleberry, it takes only minutes for small business owners to get the business insurance they need.)

At Huckleberry, we’re cheering your new HVAC business on! Get a quote for the business insurance you need today—it’s free, fast, and easy.

Buy business insurance online in less than 5 minutes.

No paperwork. Instant coverage. No-commitment quote.

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How to Write an HVAC Business Plan + Free Sample Plan PDF

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Elon Glucklich

8 min. read

Updated February 16, 2024

Download: Free one-page HVAC sample business plan

No one wants to spend hours living or working in sweltering heat or bitter cold.

Over 3 million heating and air conditioning systems are replaced in the United States each year. As a result, the HVAC industry employs 1.5 million people and generates over $150 billion in annual revenue.

There are plenty of opportunities for skilled technicians looking to start or grow an HVAC installation and maintenance business. But just because demand is high, it doesn’t mean that anyone who knows how to install equipment can successfully enter the market.

Writing a business plan will help you align your services with the opportunity in your area. It also matches your vision for the business with your financial resources. And you’ll need to write a plan if you’re seeking a bank loan or investment for your business.

This article will help ensure that your plan includes the right information and supporting data to highlight your HVAC business, and convince investors that you’ll run an efficient operation that’s profitable over the long term.

  • What should you include in an HVAC business plan?

Don’t get too hung up on trying to hit a certain number of pages in your business plan. Just focus on the aspects of your plan that are most important based on what you want your plan to accomplish. If you’re looking for in-depth guidance, Bplans can guide you through writing your full business plan in detail .

In this article, we’ll cover a few of the business plan components you’ll likely include in your HVAC business plan:

  • Executive Summary
  • Market Analysis
  • HVAC Services and Pricing
  • Operations Plan
  • Marketing and Sales Strategy
  • Company Summary and Funding Needs
  • Financial Plan and Forecasts

As you write your plan, be sure to consider the full range of services you might be able to offer customers. For instance, you might not only provide installation, maintenance, and repair services but also sell HVAC units, smart thermostats and related products. 

Including all these possibilities in your plan will help you determine the feasibility of adding revenue streams and opportunities to enhance customer value through product sales alongside your services. Just make sure your plan details strategies for providing whichever services you decide to offer.

Here’s an example of an HVAC business plan outline.

A sample HVAC business plan outline.

What’s your biggest business challenge right now?

  • The 7 elements of an effective HVAC business plan

1. Executive summary

The executive summary outlines the broad vision and opportunity for your HVAC business. It provides readers with a brief, high-level overview of your plan, one that emphasizes your unique value proposition and competitive advantages.

Write a mission statement , which describes the purpose of your business. Maybe you aim to provide energy-efficient and environmentally sustainable HVAC systems. Or perhaps you provide top-notch customer service for both residential and commercial customers.

Touch on key factors for the success of your business, like your location, service offerings and staff.

2. Market analysis

Without understanding the needs of customers in your target area, you won’t know which products or services will generate the most sales.

That’s why conducting a thorough market analysis is crucial. What do homeowners and commercial landlords in your area need? If you’re in a warm climate, air conditioning systems will be in high demand. But a cold-weather market will drive demand for heating systems. Other factors to consider include the age and condition of buildings in your service area. 

Researching the market helps identify your target customer segments and understand their specific needs and preferences. This analysis should cover demographic details, purchasing behaviors, and the size of your target market . Additionally, provide an overview of the competitive landscape , identifying key players and their market positioning. Highlight industry trends, such as the growing demand for energy-efficient systems that support the potential success and relevance of your HVAC business.

3.  HVAC services and pricing

List the full range of HVAC services your business plans to provide, such as installation, maintenance, and repair services for heating, ventilation, and air conditioning systems.

You should also outline your pricing strategy . Detail how you intend to offer competitive rates while ensuring profitability. Whether you adopt a value-based pricing model or a cost-plus approach, this section should explain how your pricing aligns with market expectations and customers’ willingness to pay.

4. Operations plan

Finding customers is one challenge. Once you have them, you’ll need a solid operations plan to ensure you can meet their needs. This section of your plan details the day-to-day operational aspects of your business.

You’ll need to account for delivering your HVAC services and all of the related logistics of service delivery, the equipment required, and any business policies or standards you intend to implement. If you have employees, spend time in this section covering how you will coordinate with them to ensure they have the right equipment and information when they head to a job site.

5. Marketing and sales strategy

Your marketing and sales strategy expands on your market research. This section outlines the methods you’ll use to attract and retain customers.

You should start by identifying the most effective marketing channels for reaching your target market. Take a look at how other HVAC companies are promoting their services. Are they advertising online , or on TV and radio? Do they have active social media presences, or are they relying on more traditional methods like printed flyers or partnerships with real estate agencies?

Once you understand where your target audience gets information about HVAC services, write down your strategies for investing in these marketing and sales channels. Try to include estimated costs and projected return on investment for each channel.

Remember, different product and service offerings might require different marketing tactics. For instance, you might want to promote the energy efficiency aspects of your service online. But customers seeing your ads on television might be more interested in your pricing versus competitors.

6. Company summary

In the business overview section, detail your business model , including the legal structure and geographical location of your operation. 

Briefly list the range of HVAC services you offer. You’ve already provided details on these in the services and pricing section, but the company overview is where you explain how these services address specific customer needs or market gaps. This part of the plan should clearly articulate the problems your business solves, emphasizing the value and reliability your company brings to the HVAC market.

You can also include a bit about your management team, highlighting the key roles and the expertise each member brings to the HVAC industry. And if you’re seeking bank or investor funding for your business, you can lay out the funding request and explain how you intend to use the funds here.

7. Financial Plan

The financial plan should present detailed financial projections for your HVAC business, giving a reader an understanding of how you expect the business to perform in the short and long term.

Include revenue , costs , and profitability , as well as a cash flow statement , income statement , and balance sheet .

If you’re starting a new business, provide details on startup costs , revenue streams, and funding requirements.

Remember, forecasts are just educated guesses. At the same time, the goal of your financial plan is to demonstrate your cleaning service’s ability to generate a profit. If your numbers don’t show a pathway to profitability, you may need to rethink your service offerings or marketing strategy.

  • Key considerations for writing an HVAC business plan

Building supplier relationships and managing how cash moves in and out of your business is essential. So is understanding what your customers want. To write an HVAC business plan that helps you streamline operations, reduce wasteful spending, or get a bank loan, consider addressing these points.

1. Go deep with your market research

Utilize data from public sources like the U.S. Census Bureau to drill down on the number of households in your area. You can also use Google to research commercial properties in your area that might need HVAC services, like office buildings or retirement homes.

2. Make your credentials clear

Highlight your team’s expertise, certifications, and accreditations. They serve as proof of your credibility to clients, lenders and investors.

3. Professional training and standards

Document your plans for committing to ongoing training on the latest HVAC technologies and safety standards.

4. Supplier relationships and inventory

Detail your plans for sourcing your HVAC systems, and how you’ll store the systems before delivering them. Also, describe your logistical arrangements for job site deliveries, including transportation needs, such as whether you will need a company van.

5. Accounts receivable and accounts payable

It’s likely you won’t immediately be paid in full for your services. Make sure you account for this in your forecasts. Incorporate realistic financial projections considering delayed payments for services and the gradual settlement of equipment expenses.

  • Download your free HVAC one page sample business plan

Download your HVAC business plan sample now for free, or explore the Bplans gallery of over 550 sample business plans if you want to see plans for other industries.

Writing a business plan for your HVAC business boosts your chance of success for a variety of reasons . We’ve mentioned its importance if you’re seeking a loan or investment. But just going through the process of thinking through each aspect of your operation will help make sure you don’t leave any stone unturned as you build a successful business.

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See why 1.2 million entrepreneurs have written their business plans with LivePlan

Content Author: Elon Glucklich

Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.

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HVAC Business Plan

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HVAC stands for Heating, ventilation, and air conditioning.

Do you have a good technical understanding and can understand ventilation systems in no time? Or, is making houses, offices, and other spaces more functional your forte?

And if you know how to deal with HVAC systems and can manage a team of individuals to install such systems even if it is a little tricky in some places then an HVAC business can be the right one for you.

If you are planning to start a new business in the HVAC industry, the first thing you will need is an HVAC business plan. Use our sample HVAC Business Plan created using Upmetrics business plan software to start writing your business plan in no time.

Before you start writing your business plan for your new HVAC business, spend as much time as you can reading through some samples of service & maintenance-related business plans .

Industry Overview

The HVAC industry stood at a market value of 127.4 billion USD in 2020 and is expected to grow at the rate of 5.9 percent in 2021.

With rapidly growing and changing technology, the industry is growing at a rapid rate, too.

Today, HVAC systems come with the best-class technology, which offers monitoring systems along with the usual services.

Also, climate change and uncertain temperatures have led to a rise in demand for heating and cooling systems.

Hence, the industry isn’t slowing down any time soon.

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hvac startup business plan

Things to Consider Before Writing an HVAC Business Plan

Before you start writing your business plan, do proper and in-depth research so that you do not miss any detail in your business plan.

Have a team of skilled technicians

Even after having a great product at hand, things can go haywire if your technicians are not skilled. Installation of HVAC systems requires a high amount of skills and expertise, so make sure you hire a good team.

Have a quality check system in place

HVAC systems come with a lot of maintenance and repair work, as well as checking whether the system is functioning properly after installation is essential too.

Hence, having a proper quality check system and maintenance and repair services takes the chaos out of your business’s functioning.

Also, mention a clear number of unpaid services and warranty periods to ensure good and hassle-free customer service.

Identify your customer base and resources

Having an idea of your customer base and their needs and preferences is essential for any business.

As an HVAC business, you’ll need to identify how your target audience avails of such services, where they look for repair and maintenance work, and so on.

Know your competitors

Staying updated with your competitors’ strategies and what’s working for them and what’s not, can reduce the number of methods that you have to try out before you find the right way of working.

Also, knowing your competitors helps you stay one step ahead of them.

Chalking Out Your Business Plan

People are never going to stop building new spaces or renovating old ones. Hence, an HVAC business can turn into an extremely profitable one if done right.

Reading sample business plans will give you a good idea of what you’re aiming for. It will also show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this HVAC Business Plan template for you to get a good idea about how a perfect HVAC business plan should look like and what details you will need to include in your stunning business plan.

HVAC Business Plan Outline

This is the standard HVAC business plan outline which will cover all important sections that you should include in your business plan.

  • Market Validation
  • Short-Term (1 -3 Years)
  • Long Term (3-5 years)
  • Mission statement
  • Keys to success
  • Illuminus – 3-Year Financial Highlights
  • Company Ownership/Legal Entity
  • Interior Operating Facilities
  • Hours of Operation
  • Startup summary
  • Heating, Ventilation, and Air Conditioning Products and Service
  • Air Conditioners
  • Gas Furnaces
  • Air Handlers
  • Customer Service
  • Market segmentation
  • Market Trends
  • Illuminus Market Distribution
  • Competitive Advantage
  • SWOT analysis
  • Marketing and Promotion Programs
  • Positioning Statement
  • Marketing Channels
  • Pricing strategy
  • Organization chart
  • Management Team
  • Hiring plan
  • Important Assumptions
  • Break-even Analysis
  • Profit Yearly
  • Gross Margin Yearly
  • Projected Cash Flow
  • Projected Balance Sheet
  • Business Ratios

After getting started with upmetrics , you can copy this sample HVAC business plan template into your business plan and modify the required information and download your HVAC business plan pdf or doc file.

It’s the fastest and easiest way to start writing your business plan.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

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Download a sample HVAC business plan

Need help writing your business plan from scratch? Here you go;  download our free HVAC business plan pdf  to start.

It’s a modern business plan template specifically designed for your HVAC business. Use the example business plan as a guide for writing your own.

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About the Author

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Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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HVAC Business Plan Guide + Free Sample

hvac startup business plan

July 6, 2023

Adam Hoeksema

The HVAC industry presents significant opportunities for growth and success. While some may perceive running an HVAC business as a simple operation focused on heating, ventilation, and air conditioning services, it actually requires careful planning and precise execution to thrive. Therefore, having a well-crafted business plan is crucial for success in this industry.

At ProjectionHub, we specialize in creating HVAC financial projection models . However, we recognize that some of our clients need more than just financial projections. That's why we have taken the initiative to delve into this subject and address the following aspects in our comprehensive HVAC business plan guide and sample plan:

  • Why write a business plan for an HVAC business?

What to include in an HVAC startup business plan?

Hvac company business plan outline, how to determine the market demand for hvac services in my area, how to analyze the competition for an hvac services company, how to create financial projections for an hvac startup, example hvac business plan, hvac business plan faqs, why write a business plan for a hvac business.

The HVAC industry requires a well-crafted business plan for several reasons. If you, as an HVAC company owner, are seeking financial support from investors, banks, or financial institutions, having a well-structured business plan becomes a fundamental prerequisite. By presenting a comprehensive evaluation of the HVAC market, a clear and strategic approach, and a thoughtful assessment of potential risks and rewards, you enhance your chances of attracting the necessary funding for your HVAC business. A strong business plan showcases your in-depth understanding of the HVAC industry, your growth strategies, and your ability to effectively navigate challenges, making it more likely for investors and lenders to support your HVAC company venture.

A comprehensive HVAC business plan should address the reasons why customers will choose your HVAC services, demonstrate why you or your team are the ideal operators for the HVAC company, and present a strong financial projection that ensures the investment's security for potential investors and lenders. Below, you will find the outline of our complimentary HVAC business plan template.

We suggest the following sections for your HVAC business plan:

Executive Summary

Company Description

Market Analysis

Product and Service Offerings

Marketing Plan & Customer Acquisition

Operating Plan

Financial Plan

Analyzing the market for HVAC services is crucial to understand your potential customers, competitors, and the overall dynamics of the local market. Here's a step-by-step guide tailored for HVAC services:

Identify Your Target Audience: Determine who might need your HVAC services. Are you targeting homeowners, commercial businesses, builders, or landlords? Understanding the unique requirements of these segments will enable you to cater to their specific needs.

Market Size Estimation: Gauge the size of your potential market within your area. Consider the number of buildings, seasonal climate changes, existing competitors, and any local regulations or construction trends.

Utilize Google Trends and Local Data: Use Google Trends to observe trends in popularity within your local market for HVAC services. If we examine the HVAC industry, for instance, we can track seasonal patterns and trends over the last 5 years for search terms related to specific HVAC services, such as "air conditioning repair" This analysis can help you identify when demand for particular HVAC services might peak in your area, allowing you to align your marketing strategies and service offerings with those periods of heightened demand.might peak, allowing you to align your marketing and service offerings accordingly.

hvac startup business plan

Competitor Analysis: Assess local competitors, their offerings, pricing strategies, marketing approaches, customer reviews, and market share. Understanding what others are doing can help you identify gaps or niches in the market.

Trend Analysis: Investigate current trends in HVAC technology, energy efficiency demands, regulatory requirements, and consumer preferences. Keeping an eye on industry publications and local news can provide valuable insights.

SWOT Analysis: Perform a SWOT analysis - strengths, weaknesses, opportunities, and threats related to your HVAC business. Consider aspects like your technical expertise, customer service quality, and relationships with suppliers.

Pricing Analysis: Evaluate your competitors' pricing and understand the budget constraints of potential customers. This will help you set a price that's both competitive and profitable within your local market.

Customer Behavior and Preferences: Utilize surveys, interviews, and online reviews to understand what drives customer decisions in your area. Consider factors such as quality, responsiveness, reputation, and the importance of energy-efficient solutions.

Seasonal Demand Analysis: HVAC services may have seasonal demand fluctuations. Analyze historical weather data, energy consumption rates, and seasonal maintenance schedules to forecast when services might be most required.

Each of these steps will give you a detailed picture of the market demand for HVAC services in your area, allowing you to tailor your business strategy accordingly. By continually assessing these factors, you can stay ahead of market changes and customer needs, ensuring the continued success and growth of your HVAC business.

When it comes to analyzing the competition in the HVAC industry, there are a few valuable tools you can use, with one of the most useful being Ahrefs.

Ahrefs is a powerful SEO tool that enables you to research and dissect your competitor HVAC companies' online presence. By inputting a competitor's website into Ahrefs, you can gain valuable insights into their organic traffic and the specific keywords responsible for driving that traffic.  For example, we can see that Williams Comfort Air is receiving roughly 32,000 monthly website visitors.  

hvac startup business plan

The tool provides valuable data on your competitor's organic traffic and highlights the keywords that are leading visitors to their website.

hvac startup business plan

By understanding the keywords and SEO strategies employed by your HVAC competitors, you can tailor your content and marketing strategies to effectively compete in the same areas or identify niche segments that may be underserved. This knowledge can help enhance your HVAC company's online visibility, attract more customers through search engines, and position your business for success in the competitive HVAC industry.

BuzzSumo : The free version of BuzzSumo allows you to discover the most popular content for any topic or competitor. By entering keywords related to HVAC services or your competitor's name, you can find out what content is being shared and engaged with the most. This information can help you understand what topics resonate with your audience and what strategies your competitors are employing in their content marketing.

The HVAC industry's financial projections are shaped by distinct factors, including client acquisition rates, project pricing, seasonal demand, and operational expenses. Leveraging an HVAC financial projection template can streamline the process and instill confidence in your planning. Yet, these precise financial projections serve a more significant purpose than merely displaying revenue potential; they pave the way to profitability and the realization of your HVAC business objectives. By considering these critical elements, you can create a robust financial plan that guides your HVAC business towards success and ensures the fulfillment of your goals.

To create precise projections, follow these key steps:

Estimate startup costs for your HVAC company, including equipment purchases, tools, vehicles, licensing, insurance, marketing, and initial staff training.

Forecast revenue based on projected client acquisition rates, average project prices, and potential growth in your customer base.

Project ongoing operational costs , such as staff salaries, rent, utility expenses, maintenance, and marketing costs.

Estimate costs related to providing HVAC services, including materials, subcontractor fees, and project-specific expenses.

Calculate the capital needed to launch and sustain your HVAC company, covering initial expenses and providing working capital for continued growth.

While financial projections are vital for your HVAC business plan , seek guidance from experienced professionals in the HVAC industry. Adapt your projections based on real-world insights, leverage industry resources, and stay informed about HVAC market trends and evolving customer preferences to ensure your financial plan aligns with your goals and positions your HVAC company for long-term success.

Discover our HVAC Business Plan, provided below. Alternatively, you can access a downloadable Google Doc version of this HVAC business plan template , enabling you to customize and adapt it according to your specific requirements. Moreover, we offer a helpful video walkthrough, assisting you in personalizing the business plan to perfectly align with your distinct HVAC business concept.

Table of Contents

1. executive summary.

1.1 Organization Overview

1.2. Objectives

1.3. Mission Statement

2. Organization Description

2.1. Organization History

2.2. Legal Structure

2.3. Unique Value Proposition

2.4. Target Beneficiaries

3. Market Analysis

3.1. industry overview.

3.2. Collaborator and Competitor Identification

3.3. Target Beneficiaries

Key Point  1

4. Marketing and Fundraising

4.1. Strategic Plan

4.2. Program or Service Offerings:

4.4. Distribution Channels

4.5. Promotions and Fundraising

Key Point  2

5. Organizational Structure and Management

5.1. Organization’s Facility & Location

5.2. Staffing Plan and Volunteer Management

5.3. Governance, Financial Management, and Accountability

Key Point  3

6. financial plan.

6.1. Startup Costs

6.3. Expense Projections

6.4. profit and loss statement, 6.5. cash flow projections, 6.6. break-even analysis, 7. appendix.

7.1. Supporting Documents

7.2. Glossary of Term

7.3. References and Resources

Key Point  5

 1.1. company overview.

Briefly introduce the company's background, products or services, and target market.

      -  Example: AirTech Solutions is an HVAC business based in New York City, New York. We specialize in providing high-quality heating, ventilation, and air conditioning services to residential and commercial customers. Our comprehensive range of HVAC solutions ensures optimal indoor comfort and air quality for our clients.

   1.2. Objectives

Outlines the company's short-term and long-term goals.

        - Example: Establish AirTech Solutions as a reputable and trusted HVAC service provider in New York City, gaining a significant market share within the first year of operation.

        - Example: Long-term: Expand our business and become a leading HVAC company in the region, recognized for our expertise, reliability, and customer satisfaction.

  1.3. Mission Statement

 Describes the company's purpose and core values.

        - Example:  To deliver superior HVAC services that enhance the comfort, health, and energy efficiency of our customers' living and working environments.

  1.4. Keys to Success

Highlights the factors that will contribute to the company's growth and success.

        - Example: Our success at AirTech Solutions is driven by our technical expertise, commitment to customer satisfaction, provision of quality products and services, professionalism, and adaptability to market needs.

2. Company Description

   2.1. company history.

Provides context on the company's background and founding story.

        - Example: AirTech Solutions was founded by Peter Sanders, who has over 15 years of experience in the HVAC industry. Peter's passion for providing high-quality heating, ventilation, and air conditioning services led him to establish AirTech Solutions.

   2.2. Legal Structure

 Describes the company's legal structure (e.g., sole proprietorship, partnership, LLC, corporation).

        - Example: AirTech Solutions operates as a limited liability corporation (LLC).

 2.3. Unique Selling Proposition

  Emphasizes the company's competitive advantage or unique offerings.

        - Example: AirTech Solutions stands out by offering cutting-edge HVAC solutions that prioritize energy efficiency, indoor air quality, and customer comfort. 

  2.4. Target Market

Defines the company's ideal customer base.

        - Example: AirTech Solutions serves residential and commercial customers in New York City, focusing on clients who value reliable and sustainable HVAC systems. 

  Presents a general overview of the industry, its trends, and growth potential.

        - Example: The HVAC industry in New York City is thriving due to increased construction activities, a focus on energy efficiency, and the need for optimal indoor air quality.

3.2. Competitor Analysis

 Evaluates the company's direct and indirect competitors, as well as their strengths and weaknesses.

        - Example: Direct competitors: Other established HVAC companies in New York City offering a range of services.

        - Example: Indirect competitorsEnergy management companies, general contractors providing HVAC services, and specialized maintenance companies.

3.3. Target Market Analysis

Explores the company's target customers, their demographics, preferences, and pain points.

        - Example: AirTech Solutions' target customers include residential homeowners, commercial property owners, real estate developers, and facility managers.

3.4. Market Opportunities

Identifies potential opportunities for the company to grow within the market.

        - Example: AirTech Solutions can leverage market opportunities by establishing partnerships with green building developers, offering preventive maintenance packages, promoting energy-efficient upgrades, and providing eco-friendly HVAC solutions for new construction projects.

hvac startup business plan

  • Example 1: Analyze local HVAC industry trends and demand to determine the market potential. (e.g., 10% annual growth in HVAC installations in the target area)
  • Example 2: Conduct a survey among businesses and homeowners to assess their HVAC service needs and satisfaction levels. (e.g., 80% of surveyed businesses express a need for reliable and energy-efficient HVAC solutions)

4. Marketing and Sales Strategy

4.1. product or service offerings: .

Describes the company's products or services in detail.

        - Example: AirTech Solutions provides a comprehensive range of HVAC services, including installation, repair, maintenance, and energy-efficient upgrades for residential and commercial properties.

4.2. Pricing Strategy

 Outlines the company's approach to pricing its products or services.

        - Example: We adopt a competitive pricing strategy based on industry standards, offering transparent and value-driven pricing for HVAC services, with flexible options tailored to meet customer needs.

4.3. Sales Strategy

  Explains how the company plans to generate sales and build

customer relationships.

        - Example: We will implement a customer-centric sales approach, leveraging referrals and strategic partnerships with contractors and property managers, and personalized consultations to generate leads and build long-term customer relationships.

 Describes the methods through which the company will deliver its products or services to customers.

        - Example:  AirTech Solutions delivers its HVAC services directly to customers at their locations throughout New York City. Additionally, the company maintains an online presence, enabling customers to access information, request quotes, and schedule appointments conveniently.

4.5. Promotions and Advertising

 Details the company's promotional efforts and advertising strategies.

        - Example:  We will utilize targeted digital marketing campaigns, local directories, SEO, and social media platforms to raise brand awareness and attract potential customers. The company will also leverage positive customer reviews and referrals to build trust and credibility within the local market.

hvac startup business plan

  • Example1: Begin providing HVAC handyman services on your own in your extra time to build some local awareness and recognition. Form a social media page or presence to slowly grow your customer base before launching the full business.
  • Example 2: Offer free HVAC system inspections and consultations to generate leads and showcase expertise. (e.g., 50% of customers who received a free inspection request AirTech Solutions for further services)
  • Example 3: Collaborate with local contractors and builders to become their preferred HVAC service provider. (e.g., Secured partnerships with three prominent contractors, securing a steady stream of new installations and maintenance contracts)

5. Operations and Management

5.1. service delivery efficiency.

 Refers to streamlining processes to ensure prompt and reliable HVAC services.

        - Example: AirTech Solutions will implement a digital scheduling and dispatch system that assigns service requests to the nearest available technician based on location, expertise, and workload, optimizing response time and improving overall service efficiency.

5.2. Workforce Management

  Involves staffing and maintaining a knowledgeable team for advanced HVAC solutions

        - Example: AirTech Solutions will recruit experienced technicians with industry certifications and provide regular training to stay updated with the latest HVAC technologies and ensure exceptional service delivery.

5.3. Inventory Control

Outlines effective management of HVAC equipment and parts for streamlined operations.

        - Example:  AirTech Solutions will implement a robust inventory management system to track equipment, optimize stock levels, and establish strong relationships with suppliers for timely availability of HVAC components

hvac startup business plan

  • Example: Peter Sanders, the owner of AirTech Solutions, has 15 years of experience in the HVAC industry, ensuring in-depth knowledge of best practices and industry standards.
  • Example: The management team at AirTech Solutions consists of industry veterans with a combined experience of over 40 years, bringing a wealth of expertise in HVAC system design, installation, and maintenance.

5.4. Safety and Compliance

Involves adhering to safety regulations and industry standards in all operations.

        - Example: AirTech Solutions will conduct regular safety training sessions, enforce strict safety protocols, and maintain comprehensive documentation to meet all legal requirements and create a safe working environment for our team and clients.

All of the unique Self Storage projections you see here were generated using ProjectionHub’s HVAC Business Financial Projection Template . Use PH20BP to enjoy a 20% discount on the template. 

   6.1. Startup Costs

  Provide a detailed breakdown of the total startup costs requirements, and where you plan for those funds to come from. You will also want to breakdown how the startup costs will be used including working capital to cover losses before the business breaks even.

        - Example: Creating a solid financial plan is crucial, and we are taking the necessary steps to ensure the success of AirTech Solutions. We have $50,000 secured from a personal investment from Peter and we are working with a financial institution to secure a business loan of around $250,000. By combining these funding sources, we are confident in our ability to meet the startup cost requirements and establish a strong foundation for AirTech Solutions. 

6.2. Revenue Projections

Provides an estimate of the company's future revenue based on market research and assumptions.

        - Example:  AirTech Solutions projects $1,287,000 in revenue in the first year. The company anticipates steady growth in revenue over the initial five-year period.

hvac startup business plan

 Estimates the company's future expenses, including fixed and variable costs.

        - Example: AirTech Solutions's non-labor operating expenses include property lease, accounting, advertising, insurance, utilities, and more.

hvac startup business plan

Summarizes the company's revenue, expenses, and net income over a specific period.

        - Example: AirTech Solutions expects to achieve profitability within the first year of operation.

hvac startup business plan

 Outlines the company's projected cash inflows and outflows.

        - Example: AirTech Solutions cash flow projections account for seasonal fluctuations in sales and expenses.

hvac startup business plan

  Determines the point at which the company's revenue equals its expenses.

        - Example: AirTech Solutions anticipates reaching its break-even point in year 1 of operation.

hvac startup business plan

Watch how to create financial projections for your HVAC Business

hvac startup business plan

Key Point  4 

hvac startup business plan

  • Example 1: Compare financial projections to industry benchmarks for revenue growth and profit margins. (e.g., Aim to achieve a gross margin of 30%, in line with industry averages)
  • Example 2: Incorporate seasonal fluctuations in HVAC demand and adjust revenue forecasts accordingly. (e.g., Anticipate a 15% increase in revenue during the summer months due to higher demand for air conditioning services)

   7.1. Supporting Documents

 Includes any relevant documentation that supports the information presented in the business plan, such as resumes, financial projections, market research data, and permits or licenses.

   7.2. Glossary of Term

 Provides definitions for industry-specific terms used throughout the business plan to ensure reader comprehension.

   7.3. References and Resources

Lists any sources or resources referenced during the preparation of the business plan, including industry reports, market research data, and relevant publications.

hvac startup business plan

  • Example: Peter Sanders invests $50,000 of his personal savings into AirTech Solutions, demonstrating commitment and shared risk.
  • Example: AirTech Solutions secures a business loan with equipment and inventory as collateral, showcasing their dedication to the success of the company.

How do I start an HVAC installation and repair business?

To start an HVAC installation and repair business, gain the necessary certifications and licenses, obtain liability insurance, purchase or lease required tools and equipment, establish relationships with suppliers, create a pricing structure, and develop a marketing strategy to reach potential clients.

What are the common HVAC services offered by HVAC companies?

Common HVAC services offered by HVAC companies include installation of heating, ventilation, and air conditioning systems, routine maintenance and tune-ups, repair services for HVAC equipment, duct cleaning, indoor air quality assessments, and energy efficiency evaluations.

How can I attract customers to my new HVAC business?

To attract customers, invest in professional branding and a user-friendly website, utilize search engine optimization to rank higher in local search results, offer competitive pricing, provide exceptional customer service, participate in local trade shows or home improvement events, and ask for referrals from satisfied customers.

What are the essential tools and equipment needed for HVAC installation and repair startup?

Essential tools and equipment for HVAC installation and repair include gauges, thermometers, hand tools (such as wrenches, screwdrivers, and pliers), refrigerant recovery equipment, leak detection devices, electrical testing tools, and a variety of HVAC system components and parts.

About the Author

Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 50,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.

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Starting an HVAC Business: The Essential Steps for Success

H VAC systems are essential for homes and apartments throughout the United States. An estimated 90 percent of residences use HVAC systems and air conditioning to maintain comfortable interior temperatures. With the dependence of many on HVAC systems, you can make a significant profit by starting an HVAC business.

The best business will create a loyal customer base. Those HVAC customers will refer friends and family to your brand and help you generate more income. The challenge is learning how to start and run a small business.

The good news is that you’ve uncovered this helpful guide to show you the proper steps to take when implementing your HVAC business plan. Continue reading to build a successful company today!

Create an HVAC Business Plan

The first step of any journey involving starting a business is to develop a business plan. It’s best to over-prepare rather than cut corners with your plan and business strategy. The business plan should address how you plan to run your business and generate profits.

Staff and resource allocation are other integral components of a business plan. The goal is to learn how to put your best foot forward and provide the best HVAC services to your customers. SMART goals are a fantastic resource to ensure you stay on the right track toward achieving your goals.

Determine Your HVAC Services

It’s also critical to analyze and determine which service you want your brand to offer to customers. Google searches are one of the most effective ways to find HVAC services in your area that can help with your situation. Provide your target audience with a straightforward description on your business website of the services you provide.

You’ll streamline the research process for your customers. It’s an effective way to improve your cash flow and grow your company.

The best services to consider providing are:

  • Installation
  • HVAC Replacement
  • Inspections
  • Customer Support

A brand offering all these services will have HVAC customers lining up to hire you for assistance. Ensure you have skilled employees who can perform all these functions to boost your brand’s reputation. Happy customers are more likely to leave rave reviews online through Google and Yelp.

Get Your Licenses

In order to legally operate and provide HVAC services, your business must get its necessary licenses. The types of licenses you’ll need will depend on the state and county your business is located in. Business and Liability licensing are options to invest in to protect your brand should an accident occur.

It’s also beneficial to invest in licensing for your HVAC technicians. The license displays their knowledge and skills and shows your customers you’re committed to excellence. Visit your government’s website to learn your area’s licensing specifics.

Meet Insurance Requirements

Your technicians must have insurance coverage before performing work for your customers. Your insurance coverage provides several notable benefits for your HVAC company and customers. The insurance policy will protect your company from financial loss due to property damage.

You’ll also receive coverage if a customer or technician suffers an injury during the installation or repair process. Look for options that will pay for medical care. Consider the well-being of your employees when shopping for the best insurance policy option.

Organize Finances

The best HVAC companies know how to organize their budgets and turn a profit. You’ll need significant capital to get your HVAC business up and running. Using your savings is one way to finance your dream of owning a business, but other options require less upfront money.

One way to finance your HVAC startup is by borrowing from friends and family. It’s a beneficial option because you won’t face rising interest rates, and you’ll receive the finances you need to purchase the necessary licenses and equipment. Consider this option if you need more money to realize your dream of becoming a business owner.

You can also raise funds for starting an HVAC business by taking out a loan from a credit union or bank. It’s an effective way to secure the capital you need to start your brand. The drawback is that you’ll pay much more when paying off the loan due to high interest rates.

Invest in HVAC Advertising

HVAC advertising is the perfect way to spread awareness of your brand and engage with your target audience. You can gain new customers by sharing the benefits of working with your HVAC company for their health and finances.

Use search engine optimization to boost your website’s search engine results page ranking. It’s an inexpensive marketing option that improves organic web traffic for your business website. You’ll gain more leads and improve your chances of converting them into HVAC customers.

Pay-per-click ads are another option you can use to market your business. They cost more, but you’ll enjoy an immediate increase in web traffic. It’s worth investing in HVAC marketing to become the dominant brand in your area.

Make the Best Hires

The individuals working on the front lines to repair and replace HVAC systems are the face of your brand. Making the best hires ensures a solid first impression of your company. You want to employ talented and well-trained technicians to provide the service your customers expect.

Do your part to create a welcoming and diverse workforce at your business. The goal is to ensure each member of your team feels like they belong to the team. Find the best fit for both parties to reap the benefits of hiring skilled and enthusiastic workers for your HVAC business.

Consider Starting an HVAC Business Today

Becoming a successful business owner feels like a far-off dream for many, but there are steps you can take toward starting an HVAC business to fill a need in your community. Create a business plan and work with marketing experts to reach a broad audience.

Make the best hires and create a safe and engaging work environment where all can thrive. Determining the services you’ll provide to your customers is also beneficial.

Taking the proper steps is vital to building a brand your customers love. Explore our Business and Marketing content to build a successful brand today!

This article is published by NYTech in collaboration with Syndication Cloud.

Starting an HVAC Business: The Essential Steps for Success

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Plumbing & HVAC Business Plan PDF Example

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  • February 23, 2024
  • Business Plan

the business plan template for a plumbing & HVAC business

Creating a comprehensive business plan is crucial for launching and running a successful plumbing & HVAC business. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your plumbing & HVAC business’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a plumbing & HVAC business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the service industry, this guide, complete with a business plan example, lays the groundwork for turning your plumbing & HVAC business concept into reality. Let’s dive in!

Our plumbing & HVAC business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines our company’s operations, marketing strategy, market environment, competitors, management team, and financial forecasts.

  • Executive Summary: Offers an overview of your plumbing & HVAC service’s concept, market analysis, management, and financial strategy.
  • Services & Prices: Lists the range of plumbing and HVAC services offered, including installation, maintenance, repairs, emergency response, and eco-friendly solutions, with a clear pricing structure.
  • Key Stats: Shares industry size, growth trends, and relevant statistics for the plumbing and HVAC market.
  • Key Trends: Highlights recent trends in the industry, such as the demand for smart, automated solutions, and the rise in energy-efficient systems.
  • Key Competitors: Analyzes main competitors in your area and differentiates your service in terms of responsiveness, expertise, and sustainable solutions.
  • SWOT: Strengths, weaknesses, opportunities, and threats analysis tailored to your plumbing & HVAC service.
  • Marketing Plan: Specifies marketing strategies to promote your services, including digital advertising, local trade shows, and customer referral programs.
  • Timeline : Key milestones and objectives from the initial setup to the first year of operations, detailing steps such as market analysis, legal setup, facility preparation, and launch marketing activities.
  • Management: Information on the management team, highlighting their expertise in plumbing and HVAC services, business operations, and development.
  • Financial Plan: Projects the 5-year financial performance of the plumbing & HVAC service, including revenue targets, profit and loss statements, fundraising needs, cash flow projections, and balance sheet forecasts.

the business plan template for a plumbing & HVAC business

Plumbing & HVAC Business Plan

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary serves as an introduction to your plumbing & HVAC service business plan, offering a succinct overview of your company and its offerings. It should highlight your market positioning, the comprehensive range of plumbing and HVAC services provided, its location, capacity, and a brief on daily operations. 

This section should also delve into how your plumbing & HVAC services will assimilate into the local market, including an analysis of the number of direct competitors in the vicinity, identifying who they are, alongside your company’s unique selling points that set it apart from these competitors. 

Moreover, it should include details about the management and founding team, outlining their roles and contributions to the company’s success. Additionally, a summary of your financial projections, including anticipated revenue and profits over the next five years, should be included here to give a clear view of your company’s financial strategy.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Plumbing&HVAC Business Plan executive summary1

Dive deeper into Executive Summary

Business Overview

For a plumbing & HVAC service, the business overview section can be effectively organized into 1 main section:

Services & Prices

Detail the range of services offered, from routine maintenance and repairs to installations of new systems, including specialized services like energy-efficient upgrades, smart home integrations, or custom solutions for complex systems. Outline your pricing model, ensuring it reflects the value and quality of services provided and aligns with the market you’re targeting. Highlight any service packages, annual maintenance contracts, or loyalty discounts that offer added value to your clients, encouraging long-term relationships and customer loyalty.

Make sure to cover here _ Services & Prices

hvac startup business plan

Market Overview

Industry size & growth.

In the Market Overview of your Plumbing & HVAC service business plan, begin by analyzing the size of the Plumbing & HVAC industry and its growth potential. This analysis is vital for grasping the market’s breadth and pinpointing expansion opportunities.

Key Market Trends

Move on to discuss recent trends in the market, such as the growing consumer demand for energy-efficient systems, smart home integration, and high-quality indoor air services. For instance, highlight the need for services that offer customized solutions for energy conservation and the increasing popularity of eco-friendly and sustainable HVAC systems.

Key Competitors

Next, evaluate the competitive landscape, which encompasses a variety of providers, from high-end, specialized service providers to more budget-conscious options, as well as DIY home improvement trends. For instance, underline what sets your service apart, be it superior customer support, a broad spectrum of services, or expertise in advanced technologies like geothermal heating systems or smart HVAC controls. This section will aid in clarifying the demand for plumbing & HVAC services, the competitive scenario, and how your service is well-suited to prosper in this dynamic industry.

Make sure to cover here _ Industry size & growth _ Key competitors _ Key market trends

Plumbing&HVAC Business Plan market overview

Dive deeper into Key competitors

SWOT Analysis

First, conduct a SWOT analysis for your Plumbing & HVAC service, identifying Strengths (such as certified technicians and comprehensive service offerings), Weaknesses (including potential scheduling challenges or market saturation), Opportunities (for instance, the growing demand for eco-friendly and smart home solutions), and Threats (like regulatory changes or economic shifts that may impact household spending on home maintenance).

Marketing Plan

Next, formulate a marketing strategy that outlines methods to attract and retain customers through targeted advertising campaigns, promotional service packages, a robust online presence with helpful DIY tips, and participation in local community events or home shows.

Finally, draft a detailed timeline that sets out key milestones for your Plumbing & HVAC service’s launch, marketing initiatives, customer base expansion, and goals for service diversification or geographic growth, ensuring the business progresses with clear objectives and measurable targets.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Plumbing&HVAC Business Plan strategy

Dive deeper into SWOT

Dive deeper into Marketing Plan

The Management section focuses on the plumbing & HVAC business’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the plumbing & HVAC business toward its financial and operational goals.

For your plumbing & HVAC business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Plumbing&HVAC Business Plan management

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your plumbing & HVAC business’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your plumbing & HVAC business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

Plumbing&HVAC Business Plan financial plan

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HVAC Business Plan Sample

JAN.24, 2018

hvac company business plan

Do you want to start own HVAC business?

Are you thinking about starting a HVAC business? Well, this business requires a lot of capital, manpower and industry knowledge but the rate of return you get after investing in it is simply worth the efforts. The biggest advantage in starting this business is that HVAC is one of the basic necessities of all large-scale buildings and as the number of these buildings increase, the market demand of hvac company business plan also increases. Moreover, after the installation of HVAC systems, they require regular inspection, maintenance, and repair that’s why this business yields a consistent revenue throughout the year. As with all businesses, the first step before starting any venture is to write a comprehensive hvac company business plan which will form the basis of your company’s future operations and decisions. A hvac company business plan provides information about everything which you will be needing to start your hvac company business plan as well as provides detailed guidelines about everything you will be doing in the next few years. If you are wondering how to write an effective plan of a business then here we are providingyou the business plan of an HVAC business startup named ‘Gan Engineering Services’.

Executive Summary

2.1 the business.

Gan Engineering Services will be a licensed and insured HVAC retailing, servicing and maintenance company which will offer a wide range of services revolving around the HVAC (heating, ventilation, and air conditioning) systems. The company will be located in the main commercial center of the Manhattan borough in the New York City. Gan Engineering Services will be owned and operated by Gan Koch who has been associated with HVAC industry for the last 20 years and had been serving in Daikin Industries as the Regional Manager of the New York City for the last seven years. Being an expert in this field, Gan knows exactly how to start an HVAC business .

2.2 Management & Services

The company will be managed by Gan and his team of technicians and engineers. We will provide high-quality and affordable installation, inspection, cleaning, maintenance, and repair services. We will also ensure a top-notch customer service. Our every employee and technician will treat our customers and their valuable properties with utmost respect so as to build a long-lasting relationship with them. Our services will cost nearly the same as that of our competitors. You can also obtain a 10% discount for the first three months by getting our promotional heating and air business cards .

2.3 Customers & Competitive Analysis

The company aims to serve the local businesses, restaurants and hotels, private and government institutions, residential buildings, shopping malls, supermarkets, and high-rise commercial buildings located within the New York City. Although we have a lot of competitors yet we believe that our innovative idea will help us surpass all of them. We will introduce a BIM-integrated automatic fault detection system linked with a Building Information Model, which will directly notify us (the service provider) whenever a fault develops along with its location. So, no time will be wasted in finding the location of the fault and it will get treated as soon as possible, saving you a lot of inconvenience and money. This system can be easily installed in new as well as the existing HVAC systems.

2.4 Target of the Company

We aim to revolutionize the HVAC industry by our BIM-integrated automatic fault detection system. Our target is to become the best HVAC service provider in the New York City within next three years of our launch.

The 3 years targeted profit forecast is given in the chart below:

HVAC Business Plan - 3 Years Profit Forecast

Company Summary

3.1 company owner.

Gan Engineering Services will be owned and operated by Gan Koch who has been associated with HVAC industry for the last 20 years. Gan served in many HVAC industries after completing his Masters in Thermodynamics from Michigan State University. For the last seven years, he had been serving in Daikin Industries as the Regional Manager of the New York City. Being an expert in this industry, Gan has all the resources, experience and knowledge needed to start an HVAC company business plan.

3.2 Why the Business is being started

Gan plans to change the traditional approach of repair and maintenance of HVAC systems by integrating the system with a Building Information Model and automatic fault detection system. The aim is to automate the entire system so as to decrease the lag time needed for maintenance and repair of HVAC systems.

3.3 How the Business will be started

Gan hired professional experts from various fields to help him craft a detailed map of his HVAC company business plan. The financial experts have forecasted following costs for expenses, assets, investment group for business , and loans for the Start-up.

HVAC Business Plan - Startup Cost

The detailed start-up requirements, start-up funding, start-up expenses, total assets, total funding required, total liabilities, total planned investment, total capital and liabilities as forecasted by experts, is given below:

Services for customers

Gan Engineering Services will be a licensed and insured HVAC retailing, servicing and maintenance company which will offer a wide range of services revolving around the HVAC (heating, ventilation, and air conditioning) systems. Our HVAC business model describes in detail the services we will provide after starting HVAC business. We will mainly provide four types of services:

  • Installation: We will offer complete as well as partial HVAC system installation including the installation of heating and cooling system, refrigeration system, air venting system, air conditioning system, furnaces and humidifier, and duct system. Our customers can purchase these HVAC systems and their components either from the manufacturing company or at retail price from us.
  • Inspection: HVAC systems require regular inspection at least two times a year so as to work properly. We will offer inspection services to the HVAC systems installed by us or from other service providers. This inspection is extremely important to identify and locate any fault in the system, which if left ignored, can lead to severe and costlier problems.
  • Maintenance: HVAC systems require maintenance at least once a year so as to work at their full capacity and efficiency. We will provide maintenance and cleaning services to ensure that HVAC systems and all related components keep working properly.
  • Repair: We will offer all sort of repairing services in case the HVAC systems or any of their related components develop a fault. To ensure that your faults are identified, reported and removed in their early stages, we will implement an innovative technology while installing HVAC systems. The technology will comprise of a Building Information Model integrated with an automatic fault detection system that will notify us, the service providers, whenever a fault is detected. Hence, the fault will be removed rapidly in their early stages while they are easier and cheaper to treat.

Marketing Analysis of HVAC business

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If you are developing a HVAC business plan for your business then make sure to pay special attention to its marketing analysis and also take help from this HVAC business plan template. The most important component of an effective HVAC business plan sample is its marketing analysis that’s why Gan hired the services of marketing experts to help him develop a good business plan for HVAC company. The success of a startup totally depends upon how it markets itself to target its specific customer groups. A successful marketing strategy can only be developed after knowing the target audience and potential customers. Our marketing experts carried out an extensive research to identify our target customers and develop an effective HVAC marketing plan to attract them. There are four main steps to carry out an accurate marketing analysis which are to identify the current market trends of the HVAC company business plan, identify your target audience and potential customers, set out the business targets to achieve, and finally set the prices of your products or services.

5.1 Market Trends

The HVAC market was worth more than $81 billion as of 2015. The market is expected to grow by 5.5 percent each year through 2020, making its worth up to $130.7 billion by that time. This increase in the market is credited to many factors, mainly the increasing number of commercial businesses and large-scale residential settlements. The increasing population and economic activity have resulted in an increase in the number of large-scale built assets. Heating, ventilation and air conditioning (HVAC) system is an integral part of all built assets and their market also increased with the increasing number of built assets. Considering their importance, HVAC system must be properly, installed, maintained, and repaired, thereby creating the demand for businesses like us. In short, the market for this industry has a lot of potential, provided that you plan your business successfully.

5.2 Marketing Segmentation

Our target customers include local businesses, restaurants and hotels, private and government institutions, residential buildings, shopping malls, supermarkets, and high-rise commercial buildings located within the New York City. We are strategically located in the Central Business District of the city so as to target as many businesses as possible as well as the residential settlements located at a 15 minutes’ drive from us. Our marketing experts have identified following type of target audience which can become the future customers of our services.

HVAC Business Plan - Market Segmentation

The detailed marketing segmentation of our target audience is as follows:

5.2.1 Residential Buildings:

There are hundreds of large-scale residential buildings, apartments, and condos located in the residential zone of the city. Most of these buildings have centralized HVAC systems installed in them which frequently require maintenance and repair services due to their excessive use. Many newly constructed buildings also require HVAC system installation services. We will target this customer group by providing our high-quality and affordable installation, inspection, cleaning, maintenance, and repair services.

5.2.2 Institutional Buildings:

We will also target hundreds of schools, colleges, offices, hospitals, municipal authorities and other institutions located in the New York City. These institutional buildings will not require our installation services since nearly all of them have proper HVAC systems installed in them. But most of these buildings have decades-old HVAC systems, which frequently need repair and maintenance services.

5.2.3 Commercial Buildings:

There are thousands of commercial buildings in the Central Business District of the city housing local, national and international businesses. These buildings have complex HVAC systems installed in them which frequently require inspection, cleaning, maintenance, and repair services due to their excessive use. This target group will contribute a major part of the revenue to our business and hence will dictate our marketing strategy.

5.2.4 Hotels & Restaurants:

Lastly, we will target the hotels, food courts, and restaurants located in the city. This target group, due to its particular nature of the business, has different and more stringent HVAC needs as compared to the other groups mentioned above. Hotels and restaurants have more refrigeration needs so as to store the food products as compared to that provided by normal HVAC systems. We will ensure that this target group meets its refrigeration needs and its entire HVAC system keeps working in a perfect condition by our high-quality services. The detailed market analysis of our potential customers is given in the following table:

5.2 Business Target

We aim to revolutionize the HVAC industry by our BIM-integrated automatic fault detection system. Our target is to become the best HVAC service provider of the New York City within the next 3 years of our launch.

5.3 Product Pricing

Setting the prices of products or services is the most challenging part of any startup because it is very difficult to achieve the MARR (minimum attractive rate of return) while also attracting the customers towards it. Considering all restraints and aspects, we have priced all of our services in the similar ranges as of our competitors. The installation cost will increase 10% more than the normal installation price in the market, if you wish to install automatic fault detection system since it requires a lot of expertise.

After identifying the market trends, the market demand, and the potential customers of the startup, the next step is to develop an ingenious sales strategy to attract those customers toward us. Like marketing analysis, sales strategy is also an important component of an effective business plan for HVAC company so make sure to plan it before starting an HVAC business. Gan carried out an extensive research about various marketing strategies of HVAC business management before developing one for his company. The sales strategy developed by Gan and our experts discusses the competition in the current market, the aspects which will give us an advantage over other competitors, the methods to attract people towards us, and finally the sales pattern of our company in the next three years.

6.1 Competitive Analysis:

We have a really tough competition ahead of us because there are hundreds of other established HVAC companies in the New York City. But we believe that we will surpass all of our competitors in no time due to various reasons. The first and the most important of which is our innovative idea of BIM-integrated automatic fault detection system. Although fault detection systems are already in use in large complexes yet these systems mostly notify a fault in the form of alarm. After a fault is reported by alarm, Facility Managers spend a lot of time in finding the exact location of a fault or the component which has developed it. The process is often very time-consuming resulting in a lot of inconvenience for the management as well as the end-users. Often small faults lead to bigger and costlier problems due to the delay caused by their treatment. Our BIM-integrated automatic fault detection system links the system with a Building Information Model, which directly notifies us (the service provider) whenever a fault develops along with its location. So, no time is wasted in finding the location of the fault and it gets treated as soon as possible, saving you a lot of inconvenience and money as well. This system can be easily installed in new as well as the existing HVAC systems. We believe that if marketed properly this concept can revolutionize the HVAC industry and give us unparalleled superiority in this business. Our second competitive advantage will be our exceptional customer service. We will make sure that our technicians provide highest-quality work, at least possible time and in the best possible way. We will make sure that your property does not get damaged during our cleaning, maintenance, and repair work.

6.2 Sales Strategy

We will introduce our startup to our target customers and stakeholders by sending brochures and introductory letters about us. We will carry out a large-scale social media campaign for our advertisement. We will also offer 10% discount on our services so as to increase sales during the first three months of our launch.

6.3 Sales Forecast

Considering the market demand, our innovative concept and the quality of our services, our sales pattern is expected to increase with years. By analyzing our market segmentation strategy, our experts have forecasted the following sales on a yearly basis which are summarized in the column charts.

HVAC Business Plan - Unit Sales

The detailed information about sales forecast, total unit sales, total sales is given in the following table:

Personnel plan

Gan hired experts from various fields so as to help him understand how to start a heating and air conditioning business. He acquired the services of a Human Resource Manager to develop the following personnel plan for the staff needed for the company along with their average salaries.

7.1 Company Staff

Gan will act as the Chief Operating Officer of the company. The company will initially hire following people:

  • 1 Front Desk Officer to act as a receptionist in the company head office
  • 2 Administrators / Accountants to maintain financial records
  • 3 Engineers for leading and directing the team of HVAC technicians
  • 4 Sales and Marketing Executives responsible for discovering new ventures
  • 10 HVAC Technicians for installing, cleaning, inspecting, maintaining and repairing HVAC systems and related components
  • 2 Drivers to facilitate the movement of team and equipment throughout the city

To ensure the best quality service, all employees will be selected through vigorous testing and will be trained for a month before starting their jobs.

7.2 Average Salary of Employees

The following table shows the forecasted data about employees and their salaries for next three years.

Financial Plan

Gan hired financial experts to help him understand how much does it cost to start an HVAC business . The financial plan created by them outlines the financial development of the company over the next three years. The company will be solely financed by Gan and he will also control the direction of business to make sure that it is expanding at the forecasted rate. No equity funding or outside loan will be required unless the company expands faster than forecasted.

8.1 Important Assumptions

The company’s financial projections are forecasted on the basis of following assumptions.

8.2 Brake-even Analysis

The following graph shows the company’s Brake-even Analysis.

HVAC Business Plan - Brake-even Analysis

The following table shows the company’s Brake-even Analysis.

8.3 Projected Profit and Loss

The following charts show the company’s expected Profit and Loss situation on the monthly and yearly basis.

8.3.1 Profit Monthly

HVAC Business Plan - PROFIT MONTHLY

8.3.2 Profit Yearly

HVAC Business Plan - PROFIT YEARLY

8.3.3 Gross Margin Monthly

HVAC Business Plan - GROSS MARGIN MONTHLY

8.3.4 Gross Margin Yearly

The following table shows detailed information about profit business plan and loss, and total cost of sales.

HVAC Business Plan - GROSS MARGIN YEARLY

8.4 Projected Cash Flow

The following column diagram shows the projected cash flow.

HVAC Business Plan - Projected Cash Flow Diagram

The following table shows detailed data about pro forma cash flow, subtotal cash from operations, subtotal cash received, sub-total spent on operations, subtotal cash spent.

8.5 Projected Balance Sheet

The following projected balance sheet shows data about total current assets, total long-term assets, total assets, subtotal current liabilities, total liabilities, total capital, total liabilities and capital.

8.6 Business Ratios

The following table shows data about business ratios, ratio analysis, total assets, net worth.

Download HVAC Business Plan Sample in pdf

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COMMENTS

  1. How To Write A Winning HVAC Business Plan + Template

    An HVAC business plan is a formal written document that describes your company's business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members.

  2. HVAC Business Plan Template (2024)

    HVAC Business Plan You've come to the right place to create your HVAC business plan. We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their HVAC companies. You can download the HVAC business plan (including a full, customizable financial model) to your computer here <-

  3. HVAC Company Business Plan Template [Updated 2024]

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  4. How to Start an HVAC Business in 8 Steps

    1. Register, license, and insure your HVAC business Follow this guide to choosing a business structure, setting up your business legally, and protecting your company so you can start on the right foot. Choose and register your business name Pick an HVAC company name that's professional, unique, and easy to remember.

  5. Startup Checklist: How To Start An HVAC Business

    Starting an HVAC business is no small task, but if you take the right steps, you'll be well on your way to growing a thriving company. Here is my HVAC business startup checklist. Figure...

  6. How to Write an HVAC Business Plan [Free Template]

    Whether you're starting an HVAC business or planning major changes for your existing company, you need an HVAC business plan. A business plan helps you compete in your market, get more customers, manage your spending, and prepare for obstacles. If you need funding, your business plan will also convince investors to back your business.

  7. Step-by-Step HVAC Business Plan for Startups

    Starting an HVAC business demands technical know-how and a robust HVAC business plan. This plan is crucial for navigating the complexities of HVAC profitability analysis, financial forecasting, promotional tactics, and operational outlines. Through this, the HVAC business plan becomes a roadmap leading to success.

  8. HVAC Business Plan & Model in 2023

    To begin your business plan for your HVAC company you can start with simple steps like creating a business canvas to capture ideas. This starts by defining who your target market is and leads in to how you determine your marketing and sales strategies all the way through to how you perceive customer success (how well you are rated/reviewed etc).

  9. How to Start an HVAC Business in 2024

    Step 1: Start with a business plan A good HVAC business begins with a business plan. Within that document, you'll define your local competition, target market, marketing plan, business structure, financial obligations, revenue projections, and so on.

  10. HVAC Business Plan: Definition, Examples & Templates

    HVAC Business Plan Sections 1. Executive Summary The executive summary of your HVAC business plan is the introduction of your business.

  11. How to Start an HVAC Business in 2023 (In-depth Guide)

    Starting an HVAC business requires obtaining the necessary licenses and certifications, as well as investing in tools and equipment. Investing in ongoing training and education for technicians, as well as adopting new technologies and best practices, can improve efficiency and quality of service.

  12. How To Start A HVAC Business (2021 Updated Guide)

    Wondering how to start an HVAC business? Follow these 8 steps and you will create the #1 HVAC business plan; 1. Consider which skills and certifications an HVAC business owner must have. Obtaining Certificates In Australia; Obtaining Certificates In America; Training for a particular supplier Brand; 2. Determine the costs to start an HVAC business

  13. How to Start an HVAC Business: 9 Simple Steps

    Whether you've been working in the HVAC industry for some time, or you're new to the HVAC industry and dreaming ahead, it's always helpful to set goals. The nine steps below provide a blueprint to follow if starting an HVAC business is on your list. 1. Develop Your Business Plan.

  14. How to Create a Solid HVAC Business Plan [+ FREE Template]

    Your HVAC business plan is a formal document that you've created that outlines who your business is now and where you want your business to be in the future. It's more than just sharing your goals. It's developing a step-by-step outline of how you're going to achieve them and what you need to get there.

  15. How to Start an HVAC Business

    Step 2 - Choose a Business Name. You'll want to give your company an effective name that's easy for customers to remember. Try using the services you offer in the business name, such as "Carmel Air", "HVAC Inc" or "Air Conditioning Specialists". You might also consider including your last name in the business name, such as ...

  16. How to start an HVAC business in 10 steps

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    Download: Free one-page HVAC sample business plan. No one wants to spend hours living or working in sweltering heat or bitter cold. Over 3 million heating and air conditioning systems are replaced in the United States each year. As a result, the HVAC industry employs 1.5 million people and generates over $150 billion in annual revenue.

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    How to Write a Hvac Business Plan in 7 Steps: 1. Describe the Purpose of Your Hvac Business. The first step to writing your business plan is to describe the purpose of your hvac business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind ...

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    An HVAC company offers services related to installing, maintaining, fixing, and replacing heating, cooling, and ventilation systems in homes and businesses. HVAC is a great business to start in 2024. Markets and Markets research says the HVAC industry will grow at a CAGR of 6.3% and be worth $208.1 billion by 2028.

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    If you are planning to start a new business in the HVAC industry, the first thing you will need is an HVAC business plan. Use our sample HVAC Business Plan created using Upmetrics business plan software to start writing your business plan in no time.

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    What to include in an HVAC startup business plan? HVAC Company Business Plan Outline How to Determine the Market Demand for HVAC Services in my Area? How to Analyze the Competition for an HVAC Services Company? How to Create Financial Projections for an HVAC Startup? Example HVAC Business Plan HVAC Business Plan FAQs ‍

  22. How to Write Your HVAC Business Plan

    Starting on the Right Foot: The HVAC Business Startup Checklist. Writing your business plan is one thing, actualizing it is another. The latter is possible only if you possess what it takes to run an HVAC business. In other words, your plan is just one box in the HVAC startup checklist. We highlight others below.

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    Create an HVAC Business Plan The first step of any journey involving starting a business is to develop a business plan. It's best to over-prepare rather than cut corners with your plan and ...

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    Creating a comprehensive business plan is crucial for launching and running a successful plumbing & HVAC business. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your plumbing & HVAC business's identity, navigate the competitive market, and secure funding for growth.

  25. HVAC Business Plan Sample [UPD 2024]

    A hvac company business plan provides information about everything which you will be needing to start your hvac company business plan as well as provides detailed guidelines about everything you will be doing in the next few years.

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