Are you passionate about starting an air conditioning repair business? Do you need a sample heating and air conditioning business plan template? Have you been thinking of how to start your own HVAC business? Or are you trying to gather more information or perhaps doing a feasibility study?
If your answer to any of the questions above is YES, then you have come to the right place. This article would provide you with the basic information you need to get your HVAC business started.
Air conditioning is one thing which is always included in different kinds of constructions, whether for commercial or residential buildings. Although it is complicated, a heating and air conditioning business can be manageable as long as you know the basics of the business.
Heating Ventilation and Air conditioning (HVAC) is a service oriented business that is high on demand. As a HVAC specialist, your work has to do with installation and repairs of Air conditioners, heating systems and creating ventilation ducts. A HVAC business is one home business idea you can start and grow into a well sort after business, as long as you have the right skill to offer your clients the best services.
There are several benefits and why you need to start a HVAC Business. For starters you can run this business as a part time business whilst you still maintain your day job. However, if the orders start flowing in constantly, you may have to resign from your job and focus on running the business.
Also, do note that this is a good home business idea, as long as you have enough space in your house to store your working tools and equipments, you wouldn’t need to rent an office space.
The capital requirement needed to start this business is not much. But, most of your capital will go into the purchase of work equipments. You can even start out with fairly used equipment, and you can upgrade later when you begin to make profits from the business. That said; now let us go through some steps on how you can start your own HVAC business.
Starting a HVAC Company – Sample Business Plan Template
- Who should go into the heating and air conditioning business?
To start an HVAC business, you must have gained sufficient experience in the industry by working for an HVAC company. You should have also been trained on all the technical aspects of the business.
The truth is that the heating and air conditioning business is a very risky business which requires adherence to a lot of safety rules on how to handle equipment and how to protect oneself. Therefore, you should ensure that you get enough training and gather enough experience before you enter into the HVAC business.
1. Get Certified
If you are already working in an HVAC prior to starting your own, you should be certified. However, if you are new in this line of career, then you need to get certified. The association in charge of issuing certification to HVAC specialists and HVAC business owners is the North American Technicians Association. They will issue you the North American Technician Excellence Certification. Some organizations may ask for this certification before they can sublet some contract works to your company.
You would need a business plan for your new heating and air conditioning business. In your business plan, you would analyze all the equipment you need to start your business, how you intend to get the capital you need to start this business and how much it would cost to acquire them, how you would execute your business idea, your sales and marketing strategy and your expansion plan. You would also include all other information that is necessary to guide you in the course of the business.
Your business plan should contain basic steps you need to take to build this business, including capital requirements, equipments you will need to purchase, . Also, be sure to answer questions like; will the business be operated from home or will you like to rent a workshop? Finally, be sure to figure how you intend to advertise your business.
How much do I need to start? With about $2,000 -$10,000, you are ready to start your own heating and air conditioning business. You will need capital to purchase the equipments needed to run this business and also to advertise your business.
If you have savings that can cover the cost of starting this business or you have friends and relatives who are willing to sponsor your business start up, that makes it better. However, in a situation where you don’t have access to the two options mentioned, then you can opt to take a bank loan to cover for the Start up expenses needed to float the business.
4. Register Your Business
You need to carry out proper registrations to allow your business function as a legal entity. First, you need to incorporate your business name at the Bureau for Company Registration which is responsible for business registration. You can visit the various websites involved in this to find out all the requirements and formalities needed to incorporate a business.
You may also need to apply for a Business License, which is different from Business registration. The Business license gives you permit to operate your business in the State. Other minor registrations you need to get include; a Tax Identification Number (TIN) from the Internal Revenue Service (IRS) department.
Business insurance is taken to cover liabilities that occur as a result of accidents or negligent acts of a business owner, whilst executing out his services. Like in every other similar business accidents are bound to happen once in a while when carrying out your services. You need to get a basic insurance package to cover your business from any business liabilities.
Most states would expect you to acquire a license before you can practice as an HVAC contractor. The requirements needed to obtain this license would depend on the state you would want to practice in. However, it is generally required that you have at least two and a half years experience working in an HVAC company before you would be allowed to become independent. You would also need to obtain liability insurance and workers compensation insurance for your business.
6. Purchase Equipments
The most important tool you will need is a motor van to move your equipment and your workers around. The equipment’s you would be working with are mostly heavy weight equipments, which is why you would need a van to move them around.
You would need electrical wire stripping tools, pliers, screwdrivers, wrenches, leak detectors, Hand tools, Pressure gauge, gas and air measurement equipments, Tube connectors and Ducts, ohm meters, and even other supplies such as wirings, duct tape, sockets, and thermostats. You would also need other working tools like capacitor tester, combustion analyzer, pumps, gas analyzer duct tape and pressure gauge to mention a few.
The final aspect this article to know how to make your business known to all and sundry. Some of the ways to advertise your HVAC business include; offering pro bono services to your friends and family. They will help spread the word about your business to other people that need the services of HVAC to handle some repairs and maintenance.
Also, you can partner or can contact construction companies in your area and partner with them. Printing of posters and fliers as well as word of mouth mode of advertisement would really work wonders. These steps to starting a HVAC business are time tested ways that have been tested and certified to really to do magic. However, you must ensure that you also think outside the box, so as to really build a successful business.
As an HVAC contractor, you would need to learn the techniques of job costing and pricing. You may decide to charge your clients a pre-determined flat rate for your services or a negotiable rate. However, your rates must include all expenses incurred such as the cost of materials used, cost of labor, cost of moving equipment around as well as costs of renting any equipment.
However, in fixing your prices, you should be aware of what your competitors are charging and this should reflect in your own charges. Your prices must not be too high compared to your competitors, except you want all your clients running to the competitors instead.
9. How do I get cheap supplies?
It is recommended that you register with wholesale vendors of heating and air conditioning equipments, so that you can get items cheaper from them. Sometimes, you would get big contracts that would involve installing several units of a heating or cooling system. You would be able to save a lot of money and increase your profit if you already have a means of getting materials cheaply.
10. Employ more hands to help
It’s almost impossible to run this kind of business alone without extra help because the HVAC business is labor intensive. You should build a team of competent workers to help you out in the business. However, you must make sure your staffs adhere strictly to all safety rules and regulations. They should also be properly dressed and conduct themselves appropriately on the job. Items like head protection gears and shoe covers must be worn whenever they are working.
11. Improve your business
You can improve your business by employing the right advertising and marketing skills. One very effective method is to partner with building contractors.
They would be able to refer you to their clients. You can also try to register under companies as their official Heating and Air Conditioning Service Company so that when jobs come up, they can award the contract to you. You should also invest in training your staffs and also provide them with the necessary working tools.