How to Create an HVAC Business Plan?

The HVAC business industry in the United States is worth $96 billion. And in the last five years, it has grown by 3.1%.

The rise in the HVAC business has opened many gates of opportunities, but with the surge in demand, HVAC companies have to face all the ups and downs.

Being a seasonal, high-demand business arena, it can be tough for HVAC businesses to handle the complexities of running a successful HVAC business.

That’s why it’s recommended to create a robust HVAC business plan that can help businesses manage the lulls and peaks in the HVAC industry.

But how to create one? 

We’ll help you understand how you can craft a tailored and learn how to create an HVAC business plan, but first, let’s clear our basics

Why Having an HVAC Business Plan Necessary?

Setting up a business plan helps HVAC businesses to ensure that they have set reasonable goals and expectations. 

To create your HVAC business plan successfully, you need to set a direction and channel the business growth toward achieving the goals with focus.

  • An HVAC business plan helps you guide through different marketing stages and assist you in managing your business. Marketing and sales strategies will act as a roadmap for running, structuring, and growing your HVAC business.
  • An HVAC business plan also outlines the business practices and model and the business’s long- and short-term mission and vision.
  • You might want to skip the time-consuming and hectic process and jump on delivering service to your customers, but market research from hbr.org has shown that creating a business plan makes the startup succeed compared to those who don’t.
  • Not creating a business plan is why 20% of the businesses fail in the first year of starting. But you can avoid the troubles and jump toward creating a detailed business plan that can help you succeed in the HVAC industry.

You need to include a few things in your business plan. Have a look

What to Include in the HVAC Business Plan?

A few vital elements are important for you to ensure that the HVAC business plan is clear and structured.

  1. Value propositions

    Once you finalize your target audience and target market, you need to figure out how to interact with them and what they want? It can help you get a clear proposition for your marketing and sales strategy and enable your HVAC business to easily onboard potential clients.

    Once your quotes are coming through and are accepted with a higher success rate, it states that your value proposition is right on the mark.

  2. Customer segments

    You need to understand the customer and tailor their pain points, desires, and benefits your HVAC can bring to their lives. It can help you in the HVAC marketing and finance plan and determine what suppliers, products, services, and vendors you need to include in the HVAC marketing plan.

    Having a crystal-clear picture of your target market and residential customers or commercial houses can help set up a solid foundation for achieving your desired business outcomes.

  3. Channels

    Finalizing your communication channel is a critical point. You need to know your customers’ channels while looking for HVAC services. What channel can determine a higher success rate once you interact with your customers?

    A/B testing can help you filter out the best channel that can help you connect better with the audience and deliver you tailored business results.

  4. Key activities

    Create a polished HVAC maintenance checklist that ensures the compulsory activities your on-ground workforce needs to follow to deliver a quality customer experience. You need to tailor activities or set a minimum standard check for good customer feedback.

    Your team needs to be thoroughly drilled to perform specific premium service quality checks and ensure a high-quality service in ​​heating ventilation air conditioning systems from your end.

    Ask for detailed customer feedback that can help you optimize the existing business activities. You need to pin down activities that can deliver a quality experience and ensure that your HVAC business model can drive great profits.

    Keep the profitability aspect in your mind to focus on improving the productivity of your workforce and enabling them to follow a standardized activity approach for set jobs. 

    Integrate powerful tools and technologies that minimize manual processing and human errors on the site location. Train the employee to master the tools and modern equipment to channel the employees’ focus into providing an excellent customer experience.

  5. Customer relations

    Talking about how you deal with your customers can be included in your HVAC business plan

    Customer relations

    Interactions like delivering customer support service through email, chat, or phone and receiving payments through cheques or bank transfers are important in managing customer relations.

    You need to regularly improve these interactions by asking the customers about their feedback via different surveys.

  6. Key partnerships

    Developing great partnerships can help your business strive forward and scale your HVAC business when required. For example, if you have a great service department but want to add an installation arm to your HVAC company, you can associate with an installation expert firm that can handle your work.

    Partnerships can help you get the extra service work done and lock in great commissions for your HVAC systems. You need to set specific rules and regulations beforehand to maintain transparency and avoid confusion in the future.

  7. Revenue streams

    Ensure that you have set different revenue streams and robust HVAC accounting practices that can help the business to drive healthy profits and business growth. Having a bad revenue stream that cannot yield can result in stagnant or degrading business growth.

    Revenue streams

    You need to set goals to outline the job schedule and price of your services for the growth and expansion of your HVAC business. You need to maintain the balance between quality customer service and good pricing.

    If you try to lower the prices to focus on attracting more customers within a few months or weeks, a situation may arise where you need to increase the prices according to the industry standards.

    Try to think and work out the pitch-perfect revenue stream with the effective price of your job.

  8. Key resources

    You need to manage your resources efficiently to achieve your future business goals, including the dos and don’ts of hiring the best human resource to handle the required business tasks.

    Creating criteria for onboarding and integrating different resources in your business ecosystem needs to be a well-thought and planned decision.

    Also, you need to provide quality training to your resources to ensure they can deliver the quality work your HVAC company promises to deliver.

  9. Cost structures

    You need to structure your expenses to have a crystal clear financial view, balance sheet, cash flow forecast, and profit and loss statements.

    It helps you prevent going off track and ensure that you have available funds that can help you run your HVAC business. Managing your expenses, salaries, and revenue wisely should be included in the business plans.

Now that you know what things you need to include in your HVAC business plan. Let’s find out how you can create one.

How to Create an HVAC Plan?

You need to filter out the industry, market analysis. and the specific HVAC requirements of the local region where you want to run your business. It helps to channel your HVAC business plan crisp and tailored.

For example, if you are a New England-origin company, you might focus on heating systems because of the winters. Being a Florida-based company, you focus on dehumidifiers and air conditioners. 

Once done, here are a few specific steps you can choose to create your HVAC business plan.

1. Choose a business plan template

With hundreds of quality templates available on the internet, you should start choosing a quality HVAC business plan template that can help you create the plan.

Using a business plan template ensures that you don’t miss important details in the creation process. It can help you minimize the effort and create a professional business and financial plan.

Once you have selected the business plan template, you must fill out essential information.

2. Fill in all the vital information

The selected template might have all the essential information required for you to fill out. But you also need to check whether points like executive summary, company description, cover page, competitive advantage, market analysis, marketing strategies, financial projections, and appendix, among others, are covered or not.

You also need to include the vital elements that we discussed in the first half of the article to be fully prepared to handle the ups and downs in the HVAC business arena.

3. Review

Your business core team can again review the business, marketing, and sales plan and fill in the loopholes left in the first phase of the executive summary creation.

You can also ask for a few experts in the industry to review your plan and polish the content to ensure that your business foundation is set and you are ready to kickstart your service operations.

Once the review is done, you can showcase your HVAC business plan like air conditioning business plan even to the investors to raise funds for your HVAC business or kickstart direct operations to serve your customers.

Frequently Asked Questions

How to start an HVAC business?

You can start an HVAC business by filtering down the type of business you want to start your business and finding out what services you want to offer to the local customers based on the demand. Once done, you need to create a solid business plan that sets your basics right to kickstart your business operations.

What elements can be included in an HVAC business plan?

You need to include multiple elements in your HVAC business plan. Factors like customer segmentation, financial plan, marketing strategy, resource management, partnership strategy, and key activities are some of the top priorities.

Can’t an HVAC business operate with a business plan?

Yes, an HVAC business can operate without creating a foolproof business model, but it will not set a strong foundation of business planning to handle the dynamic nature of the HVAC industry. Having a set plan with a sense of clarity can help HVAC business owners pass through the seasonal business’s ups and downs. A business plan can enable the business to focus on the right direction and lock in profits with set strategic plans.

What makes an HVAC business plan important?

The HVAC business plan is important because the rising heat and cooling industry requirement and unique customer demands can only be matched with professionalism if the business has a proper plan. An HVAC business plan can assist your business to get out of trouble when your business faces setbacks or operational issues.

Is the HVAC business profitable?

Yes, the HVAC business is profitable as there is a surge in demand globally for ventilation and air conditioning services. With the rise in commercial and residential building development, the demand will rise exponentially, and there will be a requirement for quality HVAC service providers.

It’s Time You Create Your HVAC Business Plan

The HVAC business plan is the playbook that sets your business’s foundational rules and regulations. It can help you streamline the business process and ensure that your workforce remains focused on the job.

Now that you know the nitty-gritty elements to create a professional and well-vetted HVAC business plan, it’s time you kickstart the process.

If you encounter doubts and problems during the process, you can write to us in the comment box. Our expert team will try to answer the queries to their best abilities.

Gaurang Bhatt

Written by

Gaurang Bhatt

Guarang Bhatt has 15+ years of experience in serving different businesses through advanced technology-based solutions. He has special expertise in Saas-based software solutions and solving complex business problems and challenges. Passionate about HVAC software solutions, he shares his knowledge and learnings on HVACsoftware.com.