How to Start Your Very Own HVAC Business: A Helpful Guide

Do you plan to start a successful HVAC business soon?

Repairing, installing, and selling HVAC systems are a lucrative business now. This is especially true because of environmental and climate changes. You also can’t deny the innate need for heating and cooling during winter and summer, respectively.

Thus, the HVAC industry remains a profitable one. In this guide, we’ll show you the basics of planning and launching an HVAC business. Stay tuned till the end for some tips on how to start an HVAC business.

1. Create a Business Plan for Success

No, it’s not enough to create a business plan. Before you dive into the air-conditioning business, you need a growth-oriented HVAC business plan. Plan for progress and create back-up plans for times when things go south.

Startup businesses see a lot of pits at first, your commercial HVAC business included. Often, this is because you have no name yet. Your customers still trust and depend on your competitors.

Also, include technical plans in your business plan. For example, decide if you’re opening a franchise or going solo. Ask yourself questions about your business and keep asking.

How do you plan to scale up later? Is it more reasonable to get a business partner? As a tip, yes, it’s better to have a trusted business partner running the business with you.

Write up a clear definition of your goals. Create long-term and short-term goals for the business. Include revenue and profit margin goals with a reasonable time limit.

There will be months when it seems you can’t get enough customers to break-even. Some businesses won’t even see any profit until a whole year after launching. Be ready to face and survive this inevitability.

2. Define Your Budget for Business Costs and Insurance 

It’s expensive to start an HVAC business. Your initial expenses can reach anywhere between $2,000 and $10,000. Some successful businesses even get built on top of loans.

Before you launch your business, make sure you have enough to open the business. However, that’s not where your costs end. You must also have enough funds to stay afloat during the first years while you’re still finding your footing.

If you already have repair tools, it’s a few things less to worry about. However, you still need supplies, safety equipment, and insurances. Don’t forget you also need a vehicle to carry all that around.

Speaking of insurance, you may need two types of insurance ready before you start work. One is your general liability insurance, which will protect you as you work. The second one is the workman’s compensation insurance for employees if you have any.

3. Learn the Ins and Outs of the Trade

This type of business is easier for you if you were a repairman before for HVAC systems. However, this doesn’t mean you should feel content with your knowledge and experience. As with most things, it’s important to keep improving yourself.

Take short courses or training for more in-depth knowledge of HVAC systems. HVAC certificate programs and schools are great sources for education on HVAC systems. More certifications also guarantee that you can work on a broader scale.

You might feel that five or ten years of experience is enough. Remember, HVAC courses teach you the detailed technicalities of the business too. Also, don’t forget that certain certifications are requirements for getting your business license.

4. Get Your Business Licenses and Bonds in Order

Paperwork is the bane of many businessmen and business owners. Yet, there’s no going around the official procedures and bureaucracy. This includes getting the licenses you need to green-light your HVAC business.

Each state has various requirements for getting a contractor’s license. The typical ones include proof of minimum HVAC experience, which is four years. Passing the State Contractor’s License Test is also important.

You also need to fill out an application for an HVAC Contractor’s License. This often happens once you passed the license test and you have enough years of experience. The last thing you need is the licensing fee, which also varies by state.

Before starting an HVAC business, you need to get a contractor’s bond. This bond ensures clients that AC repair contractors complete the jobs they take. If a contractor decides to skip off, the client can take their complaint to the state.

The state will take the bond until the contractor rectifies the situation. The contractor’s bonds differ in each state. This bond also covers any damages to the client’s property due to the contractor’s negligence.

5. Connect with Customers

It’s difficult to run a business without customers. Thus, in your locality, it’s a good idea to advertise your HVAC business. Promote your brand by advertising on the paper or by posting flyers in the area.

Try to give your clients incentives when they refer your business to their friends. Register on free sites like Yelp and Home Advisor. The important thing to remember is to avoid overspending on ads.

It’s important to make a good first impression once you launch your business. You must ensure that your first customers get the best service. Be consistent with this quality of service and word of mouth will do the work for you soon.

Even while you’re starting small, it’s a wise move to go online. Create a website and several social media profiles. When you’re on the internet, apply Home Services Marketing & SEO or search engine optimization so people can find you.

You found this guide on creating an HVAC business online. Thus, it’s not too farfetched to assume your customers will look online too for your business.

In fact, 86% of consumers rely on the internet to find a local business.

6. Tips for Starting a Booming HVAC Business

If you’ve noticed, we coupled HVAC businesses with adjectives like successful. This is because we want you to plan for a prosperous business. Believe and ensure your business grows and doesn’t only exist.

Don’t think of your HVAC business as another simple startup coming to life. We want you to treat it like it a small business with big chances of growing to success. This hack applies not only for your business but it’s also a great general rule to live by.

Starting and running a thriving HVAC business is a challenge. If you have a family or a partner, let them know that the first few months of it will eat up a lot of your time. Yet, remember to show your appreciation of them for remaining patient and supportive.

Before you take the License Test, try to enroll in a prep course. It’ll be a little pricey but it’s worth every penny.

Grow Your Fresh HVAC Business

Planning and launching any startup business isn’t easy. Since the HVAC industry is lucrative, it is well worth the sacrifices. Remember that the starting years are often difficult so keep hanging on during that time.

Now you know how to start a prosperous HVAC business. We hope this helped you get a sense of the challenges and rewards of starting an HVAC business. If you want to see more content like this one, check out our other articles today!

Adam Hansen

Adam is a part time journalist, entrepreneur, investor and father.