How To Start A HVAC Business

HVAC Business Background

A normal day as a certified HVAC (Heating Ventilation and Air Conditioning) business owner will revolve around two main tasks. These tasks are installation and service.

A HVAC system installation means installing the main units both inside and outside a building and then running ductwork. Service work requires finding problems with older systems and then fixing them as well as simple seasonal service work.

Often a HVAC company specializes in both home and commercial systems. This type of work can sometimes be dirty and often service calls occur in most extreme parts of the winter and summer season.

HVAC Business Considerations

There are a few things to consider when starting a HVAC business.
First, consider whether to start from home or to rent a shop. Starting from home saves money but in some cities and towns, it may be illegal.

Next, consider specializing in a certain style of HVAC. You could specialize in only residential or commercial HVAC. Also, consider different systems specialties like heat pumps or geothermal heat systems that could give you an edge in your market.

Finally, think about what type of business you want. There are HVAC franchises available such as One Hour Heating & Air®. The benefit to a franchise is name recognition and a proven system that works. The disadvantage is paying the franchise fee.

Tasks And Skills Needed To Operate A HVAC Business:

Whether you do all the work yourself, hire, or subcontract, here's a list of tasks that need to be attended when operating a HVAC business:

Business Specific Tasks:

Invoicing clients

Setting up service contracts

Scheduling service calls and installations

Scheduling employees

Setting up contracts with suppliers

Staying current with certifications, business licenses and insurances

Tax Record Keeping

Advertising: Website, flyers, business cards, etc.

Develop Competitive Bids

Industry Specific Tasks:

Knowledge of different HVAC systems

Operate diagnostic tools

Installation of main units

Installation of ductwork

Creating Custom Built duct work

Ordering of supplies and equipment

Service work on old models

Keeping up with new technologies

Approximate Daily Hours Needed To Run a HVAC Business:

General Hours of Operation: Most HVAC businesses have normal business hours – 9am to 5 pm, but often they have a 24-hour emergency service.

Hours Needed to Prepare - Plan to spend about an hour to load equipment and get to your destination. At the end of the day, plan on closer to two hours to clean and store equipment and do paper work.

Employees Needed To Run A HVAC Business:

During the start up phase, you can run this business single-handedly. Once Your Business is up and running successfully, you may need to hire:

Licensed and apprenticing crew

Bookkeeper

General office administrator

Sales Crew (possibly)

Skill Requirements for This Business:

HVAC equipment diagnostics

Troubleshooting

HVAC Installers

HVAC Business Licenses:

You must get the proper HVAC training from an accredited school in order to obtain a license to practice HVAC contracted services in your locality.

While regional requirements may be different, most HVAC technicians must have a minimum of two to four years of HVAC training and a license before performing HVAC services for others.

You will need a business license, Federal Employee Identification Number (EIN), insurance and possibly incorporation paperwork such as an LLC.

Approximate Minimum Start up Cost:

The average startup cost may vary according to your business plan. Entrepreneur Magazine estimates that the average start up for a HVAC business is between $2,000 USD and $10,000 USD. However, buying a brand new work van and large amounts of inventory would significantly increase startup costs.

Necessary Equipment to Run A HVAC Business:

Necessary Start-Up Equipment & Supplies:

Truck or van for equipment and supplies

HVAC testing equipment, meters, gauges

Basic hand tools (pliers, hammers, wire strippers, etc.)

Specialty tools (valve core removal tools, duct knives and staplers, etc.)

Various tapes for electrical and air ducts

Safety equipment (gloves, glasses, dust mask, etc.)

Supplementary Equipment: - Equipment or helpful products that you can acquire to once your business is off and running:

HVAC software

Backup HVAC units

Trucks

Dispatch units and service

Monthly Expenses To Consider:

Vehicle costs (fuel, insurance, maintenance, etc.)
Shop/Office Rent
Answering and/or cell phone service
Wages
Utilities
Certifications
Tools and Equipment
Advertising/Marketing
Office Supplies and Operating Cost

Special Requirements For This Business:

Excellent Time management skills
On call service emergency (possibly)
Diagnostic tool knowledge
Keep up on advancing technology
Licensed HVAC technicians

Pros And Cons:

The Pros of Running a HVAC Business:

Constant demand for climate control

Ever-growing business

Both installation and service incomes available

Possibly high profit margins

The Cons of Running a HVAC Business:

Physically demanding work

Changing technology require lots of education

Some danger involved (heights and electricity)

Often a very dirty job (crawl space and attic work)

Deal with weather extremes

Clients can be irritable when their units breakdown

Type of Customers You Need to Attract:

Since most climates have both hot and cold extremes, the necessity for climate control is essential. Client can include homeowners, home developers, commercial building and governmental buildings.

HVAC Business Statistics:

As a specialist, HVAC technicians are in high demand. According the Bureau of Labor Statistics, there were over 308,000 HVAC employees in the United States. Over the next decade, estimations suggest that the industry will climb by 28%.

In addition to new installation, units that are already installed need to be replaced every 10 to 15 years.

Revenue:

Installation of a new system can cost several thousand dollars. However, profits of installation may be low 5 – 10%. Service calls and contracts can vary as well.

Contractor Excellence, a HVAC industry magazine, says that a typical service call may be over $225 USD (including a diagnostic fee and flat repair fee.)

The article continues to say that a service contract could be $400 USD a year. In the end, total revenue can vary greatly depending on location and competition.

HVAC Business Resources:

HVAC Associations: This page is a collection of HVAC associations that focus on developing a strong HVAC industry by training and educating HVAC business owners and technicians.

HVAC Marketing: This page is a collection of websites that deal with all forms of HVAC company marketing. Each website provides comprehensive marketing information.

HVAC Certification: This page is a collection of websites that offer HVAC certification information. Each site provides information on the programs offered and pricing info.

HVAC Business Plan: This page is a collection of websites from companies that offer business plan generation services. Each site provides information on the products offered.

HVAC Directories: This page describes a collection of websites that have put together comprehensive directories designed to serve the HVAC service industry community.

HVAC Franchise: This page is a collection of websites that provide detailed information on HVAC business franchises. Costs, benefits, and requirements are given.

HVAC Training: This page is a collection of websites designed to provide training materials for those in the HVAC industry as well as access to HVAC training programs.

HVAC Videos: This page describes the videos that HVAC professionals have uploaded to YouTube. Users can find instructional videos on nearly any HVAC topic at YouTube.

HVAC Publications: This page is a collection of various websites that provide users with helpful articles, magazines, and other publications that further the HVAC industry.

HVAC News: This page describes a collection of websites dedicated to providing the HVAC community with the latest news, information, and trends in the industry.

HVAC Forums: This page offers a brief description of several discussion websites that host HVAC forums. Most forums require users to register before gaining full access.

HVAC Software: This page is a collection of websites that provide a broad range of HVAC business management software. Many companies offer demos and free trials.

HVAC Forms: This page is a collection of websites that provide business owners with forms necessary to run their company. Hard copy and paperless options are available.

HVAC Parts: This page is a collection of websites that provide all of the necessary equipment, parts, tools, and supplies to run a successful HVAC business.

HVAC Equipment: This page is a collection of HVAC supplier websites that sell parts, equipment, tools, and services that relate to the HVAC industry.

HVAC Tools: This page is a collection of websites that promise to provide HVAC companies with the specialized tools needed to function on a daily basis.

Related Businesses:

HVAC Equipment Sales
HVAC Supplies Sales
HVAC Software Sales