Starting an HVAC Business: 5 Steps to Success
Starting an HVAC business is both exciting and scary. Not to fear, though, because we want to help you be successful!
The ACCA (Air Conditioning Contractors of America) predicts that the United States HVAC industry is about to explode. They believe that there will be much growth in this industry in the next ten years. In fact, the ACCA reports that the industry will increase in value from $25.6 billion in 2019 to $35.8 billion by 2030.
HVAC mechanic and installer opportunities are set to increase, possibly creating 13% more jobs from 2018 to 2028. This is a higher-than-average increase compared to all other occupations.
You’ve picked a significant industry to begin a business. Now, you just need to get started. A business won’t flourish overnight; it takes time, work, and an excellent strategy.
We have five steps we want to share with you that will help you start an HVAC business. Now, let’s get to it!
1. Complete Any Necessary Certifications
Once classes are complete and you have your HVAC certification, you may have some more certifications and/or licenses to get. Every state will vary. You need to discover if your state requires more certificates or tests.
Local areas can be different too, so make sure that you check the requirements of your local government. You want to be ready and compliant with a new HVAC business endeavor.
2. Decide If You Want a Franchise Location
While you can open an HVAC company independently, there is an option to open a franchise location. One great thing about being a part of a franchise is that you have some help when you get started. The franchise brand offers an excellent reputation, plus they will give you their available resources, giving your HVAC business opportunity a solid foundation, to begin with.
Another option is that you could start out as a franchise at first because you must establish yourself in the community you serve. Once you are open a while and have a working history in the neighborhood, you can choose to move to your own small independent business.
3. Get Insurance
An HVAC company is required to have general liability insurance. It is an important precautionary measure.
Once you hire employees, you need more insurance. You will need to add worker’s compensation insurance. This is to protect yourself should an employee become injured on a job site.
4. Strategic Bidding
One way that HVAC professionals will land jobs is based on their pricing. The figure you give to a prospective customer to bid on a job makes a difference.
Price bidding is a skill that you must develop. It will help you secure work both now and in the future. You can base your pricing on analyzing the amount of experience you have and how much work you are providing for the cost.
All that said, a good way to learn about price bidding is to find out what the other local HVAC technicians in your area are charging. You want to be in line with competitors so that they do not edge you out of jobs because you are far too pricey. Doing a little research will go a long way to understanding what customers believe is a fair asking price for your work.
5. Market Your HVAC Business
If this sounds intimidating, it should not be. In fact, this part of the job should be something you can make to be a fun task. Here, you can get creative.
Every business needs advertising to get started and grow. You should print business cards and create brochures so that you can give prospective customers some collateral about you.
A website is excellent to have as well as social media profiles. Start a Facebook company page. If prospective customers are researching HVAC companies on Google, create a free Business Profile to help you stand out.
Word-of-mouth is important. You find that people in your neighborhood often ask for referrals from friends and family to find a trustworthy HVAC company to work with. Plus, keep a list of happy customers on file that will give you a reference should you need it.
You could save some money on advertising if you choose to go through a franchise versus independently. It is food for thought.
Benefits of Starting an HVAC Business
The biggest benefit you will find with starting an HVAC business is that you get to be your own boss. You can choose your schedule and take vacation time when you want to.
Additionally, you are the final decision maker in everything your business does. If you have a “vision” of how you want things to be, having your own HVAC company gives you the opportunity to execute it.
If you can grow your business, you can make more money than you would over working for someone else, which is an intriguing thought for anyone. Keep in mind that achieving this level of pay typically takes a lot of time, so be patient and work hard. Stay on the path and move forward according to a plan.
While starting any kind of business is a huge undertaking, success has its rewards.
Ready to Open Your New HVAC Business?
Richard Branson once said, “A big business starts small.” You will begin small, but based on these steps, starting an HVAC business has the potential to be big.
Make sure you follow local regulations, get insurance, bid strategically, and promote your HVAC company. Opening a business independently or with a franchise is up to you. With these steps, you are on a pathway toward a bright future.
For more brilliant advice on your upcoming business venture, visit our site. We are always posting superb and practical tips!