How to Start an HVAC Business? Follow the Right Roadmap

How to Start an HVAC Business? Get the Guide

Starting an HVAC business is not so easy because it includes risk and it needs proper knowledge and dedication. Here are the steps to guide you through the process from the ground up. Go through the HVAC business startup checklist below to determine the proper way to reach success heights.

Create an HVAC Business Plan

Before stepping into the business world, get ready for your HVAC business plan. This plan will be the complete roadmap for your business. It covers your business summary, service details, business goals, and other strategies.

Also, your business structure should include the type of equipment you will need, your investment plan, and business hours. Your HVAC business plan should be a complete blueprint for your business strategy.

Finalize Your Business Name

A nameless business is like a ghost image. For this reason, you should choose a proper name for your business. When selecting a business name, focus on uniqueness and relevance to your business. Also, it should be easy to remember for all. So, choose your business name before going for registration.

Business Registration and License

Business registration is a process of registering your business along with the crucial details. This process is according to the laws and guidelines of the local government. Owners of a new HVAC business can register their business in different forms like –

Sole Proprietor

This registration form is generally appropriate for those who handle the business alone. That means the owner is the sole person to handle every business task.

Partnership

This is an application when the business has two or more owners in partnership form. It is also known as a cooperative or joint venture.

Limited Liability Company (LLC)

It is another form of business registration. It offers protection for personal assets during the legal process.

Regarding licenses, the general licenses are Class A, Class B, and Journeyman. The other type of license is a specialty license for solar and refrigeration.

Along with the license, you also need certificates as below.

• For small appliances – EPA Type I certification
• For disposing of high-pressure systems – EPA type II certification
• For disposing of low-pressure systems – EPA type III certification
• For servicing all types of equipment – universal EPA certification

Try to choose reputed organizations like the Environmental Protection Agency or North American Technician Excellence (NATE). Its impact will be on your services because you will be updated with the latest technologies and ultimately you will give quality service.

Create Your HVAC Services List

On the roadmap to start your own HVAC business, the next step is to sketch out the HVAC services you provide. There are many HVAC services like repairing, installing, and maintaining products. Also, you need a clear view of the areas you serve. Decide whether you will serve residential or commercial areas.

Installation

Determine which type of HVAC task you will offer during installation. You can be an expert only in one from the list of ductless mini split, central air systems, or heat pumps.

Repairing

If your service includes HVAC repairing, then specify specific issues like refrigeration leakage, cooling problems in AC, etc.

Maintenance

Specify your service as inspection, cleaning, and preventative maintenance if you are good at giving maintenance services.

You can offer the following services on the basis of above mentioned service:

• Furnace installation
• Heat pump installation
• Tankless water heater installation
• Air conditioning installation
• Furnace repair
• Furnace tune up and maintenance
• Repairing air condition
• Air conditioning tune up and maintenance
• Air duct cleaning
• Indoor air quality testing
• Emergency HVAC service
• Energy efficiency upgrades

Obtain Funds for Your Business

Don’t ignore considering capital investment, when you think over how to start a heating and air conditioning business. The average startup cost of an HVAC business is $5,700 to $11,000. It all includes a space lease, buying the equipment, and other expenses. Have a focus on the below table to have more details.

To secure optimal funding, consult with a financial advisor who can help you develop the best roadmap for your funding needs. The financial expert will give you the best guidance on the business loan process, start-up costs, and long-term financial goals.

Invest in HVAC Business Insurance

HVAC work is a risky job, and there can be injury, lawsuits, property damage, or any other loss. So, never ignore insurance when you’re about to start your own HVAC business. It helps overcome losses. Professionals can opt for any insurance listed below –

General Liability Insurance – This insurance policy is applicable when any non-employee of your HVAC business gets an accidental injury.

Property Insurance – It protects your commercial properties like tools, office space, and inventory.

Commercial Automobile Insurance – This kind of insurance covers your vehicle’s damage.

Equipment Insurance – This insurance policy covers equipment costs. If any tool gets damaged or stolen.

Professional Liability Insurance – Professional liability insurance is important during contract disputes and other mistakes.

Workers Compensation Insurance – This insurance policy covers medical bills and payroll costs for those employees who are injured at work.

You must think about business insurance from day one. Indeed, it will be an investment, but it will be worthwhile and valuable for you. Different insurance has different purposes, so choose the right insurance.

Purchasing HVAC Tools and Equipment

Here are the common HVAC equipment you must buy for your HVAC business:

Investing in Invoicing Software

Your business model will need a proper invoicing process. The only approach to this is buying invoicing software like Moon Invoice. This software gives a complete end-to-end solution to managing invoicing.

Moon Invoice offers 66+ customized invoice templates and helps you to make a professional invoice in a minute. Also, this platform has a user-friendly interface. Invoice and estimate templates are available in multiple formats like Word, Excel, Google Sheets, PDF, and Google Docs. Successful HVAC business owners can choose an HVAC estimate template or an HVAC invoice template to streamline their billing and estimation process.

While supporting multiple languages and multi-currencies, this is ideal software for global trading. It automatically calculates the amount and gives no space for errors. So, successful HVAC business professionals can easily customize, create, and send a complete invoice on WhatsApp or Email.

Pricing Your HVAC Services

When you think about how to start an HVAC company, it’s essential to establish a proper pricing strategy to run your business successfully.

For HVAC businesses, you can follow any HVAC pricing chart as follows:

Flat Rate: The flat rate pricing model covers a predictable price. It is applicable when you know how much time will be invested in the task.

Hourly Rate: The hourly rate price is based on the duration of the project. This pricing model is applicable when there is uncertainty on the timeline of project completion.

Labor and Materials pricing: Business professionals can include the cost of labor and materials in their HVAC estimates. However, professionals always need to define a clear cost.

Make a Separate Banking Account

When you are about to start your business, it’s always better to create a separate banking account. This mistake is very common, but still, it’s not a good practice to follow.

It eliminates the need to manage your finances properly. You will get confused between your personal finances and professional finances. This ultimately will give rise to big mistakes. One should always start a business with a separate bank account.

Hire HVAC Technicians

The demand for more manpower increases as your HVAC business grows. In this business, you will need HVAC technicians who are in charge of performing various HVAC tasks. Thus, you will get enough time to focus on other tasks. When planning to start a heating and air conditioning business, it’s important to consider hiring HVAC technicians.

You must get an employer identification number (EIN) if you are running your business in the USA. Additionally, you need to analyze the fair salary when you are hiring a technician for the first time. Consider candidates’ experience, skills, and other things.

Business Brand Establishment

A new business venture should plan for a business brand to upgrade the business value.
You need to decide on a business name, create a logo, make a website, decide on a unique color theme, and more. If your budget allows, you can consider investing in uniforms for your employees.

You have the option to create your business logo and website yourself or hire a professional to do it for you. There are many free logo-creating tools. Likewise, there are many website tools like Wix, WordPress, or Weebly.

Business branding is crucial for HVAC business marketing and promotions. It differentiates your business from other businesses and helps you to stand out in the market.

Promote Your HVAC Business

When you have followed all the steps, it’s time to promote your HVAC business. You might follow offline promotion by advertising your HVAC company in local newspapers and magazines.

However, promoting your business online is a necessary step. You can follow the below strategy.

Website Creation and SEO

You can hire a website designer or make a website through Wix, WordPress, and other website-building tools. Furthermore, take SEO services to promote your website and get leads. Create your Google Business Profile to acquire leads from your local area.

PPC and Paid Marketing

You need to invest some amount of money in your business promotion. You can opt to run Pay Per Click (PPC) campaigns or advertising on platforms like Facebook, Instagram, and Twitter.

Social Media Promotion

You know well the power of social media. People are very active on Facebook, Twitter, and Instagram so why not avail of this moment to capture leads? Promote your business and let it be the talk of the town. This will help you gain more customers.

Business Listing

List your business details on popular business listing sites. This will promote your business and let your business get more customers.

How Much Cost Is Required to Start Your HVAC Business?

The HVAC business startup costs are $5,700 to $11,000, depending on your business size, scope, and goal. The cost will get higher as you expand your business. The major expenditure is on purchasing tools. The other investments include insurance and vehicles. The best way is to discuss with any financial advisor to get the proper roadmap for investment.

Final Touch

The HVAC business offers a good profit margin because it is a demanding profession. However, one needs to know the proper flow of how to start an HVAC business. We have covered all the steps above to explain the answer to this question. Remember, as an HVAC business owner, you need to follow these steps wisely because each step has a significant positive impact on your business. Ultimately, you need to manage a profitable HVAC business.

Frequently Asked Questions