The heating, ventilation and air-conditioning system (HVAC) industry is one where the three of them are intertwined to condition planes, cars, trains, among other spaces, vehicles and facilities. The main goal is to have the three of them interconnected in such a way that they can help keep a temperature balance indoors. Basically, HVAC systems are intended to offer ventilation, reduce air infiltration, and preserve pressure relationships among spaces. If you are planning to start your own business in HVAC, the best idea is to have your own business plan to organize the company and even look for investors. Here, you will find all the necessary information and a custom-made business plan for your HVAC business.
HVAC Business Plan
The HVAC business model section of the business plan is very large and covers all the operation and maintenance, system design and construction, equipment manufacturing and sales portion of the business. The business in the HVAC industry is commonly regulated by organizations such as HARDI, ASHRAE, SMACNA, ACCA, Uniform Mechanical Code, International Mechanical Code, and AMCA, all of them in charge of guarantying the best quality of service. The Heating and Air-Conditioning Contractors industry has been improving over the last years, there was a substantial increase in business activity. The business mainly consists in installing, maintaining and improving the functioning of HVAC systems anywhere needed. This and more specific information about how the HVAC business works will be described in this section.
The Heating and Air-Conditioning businesses have been recovering over the last five years. But nowadays, there are many ways to branch out the business. For example, having workshops that can offer the service to vehicles, as well as having an expert group of technicians that can move to any place needed to provide repairs or installation services are many ways to diversify the business properly. Knowing your competitors and what you have to offer that exceeds what they currently have is key to succeed. This section of the plan presents a comprehensive market research to understand your competitive landscape and how you can position the business in it.
To start a business such as this you must first determine whether you want to have your own business and brand or if on the other hand, you want to be part of a big franchise. If you plan the last option, you will probably guarantee a certain number of steady customers that will come to your business just because of the power of the franchise’s brand. This part of the HVAC business plan describes the operational plan of the business, working schedules, staff, logistics, prices, supplies and other key elements that need to be organized to function properly as an established business.
In this section of the HVAC business plan, it is utterly important to determine the kinds of services you want to provide, so it is easier to speak a clear language with potential customers so they can trust you as their service provider. Mass media communications are necessary as well as word of mouth advertising, which will build up your credibility among potential customers. These and other marketing strategies will be presented and explained in this part as a way to make the business grow and become well-known.
This HVAC business plan will allow you to branch out and offer different services to your customers. HVAC repair is pretty straightforward. You can offer repair services for HVAC systems to different types of customers like hospitals, schools, office buildings, and residential homes. Usually, you will be called out to a job for a non-functioning system and you will have to diagnose the problem, and then substitute the part with inventory you carry with you if possible. In this section of the plan the market segments will be carefully described to help you choose the ones you want to serve to make sure your strategies and promotional tactics aim right at them.
Marketing can become very expensive especially if it doesn’t generate any leads. Industry sources estimate that acquiring a single customer costs an HVAC contractor between $200 and $300, which would not be sustainable. Word of mouth and gradual growth are the best marketing channels for small businesses. Directories are a very good idea too. Register your business in as many as possible. These and more strategies will be outlined in this section of the HVAC business plan.
Starting a business like this won´t be as expensive as people may think. To run the business for the first time you will have to invest from $2,000 to $1,0000 depending on the services you will offer, which is a pretty reasonable figure. In the HVAC business plan, you will find information regarding your potential revenues and three to five year forecasts that will help you understand the results you may expect from this type of business.
This part of the business plan presents the main sources of revenues for the company. Most successful HVAC suppliers target for a 12% net profit margin. Installing a new HVAC system, which can cost a few thousand dollars, can net an HVAC business between 5-10% in profits. According to some studies a normal service call costs about $225 while an annual maintenance contract can be worth around $400 a year. These and more specific information related to the HVAC industry will be further described in the section
Some of the usual expenses of these businesses are vehicle maintenance and equipment maintenance, HVAC tools, safety equipment, HVAC diagnosis software licenses and supplies. It is also important to count insurance as one of your primary expenses, especially if you have technicians working for you. Here you will find a list of the main expenses and how to keep them in line to meet your budget goals.