6 Steps to Start an HVAC Business in 2022

Within the last five years, the number of HVAC or Heating, Ventilation, and Air Conditioning contractors in the United States has grown by 3.1%

The HVAC is expected to grow up to $367.5 billion by 2030. The boom in the construction of commercial and residential buildings and changing consumer demands are responsible for the surge in the industry.

There are many opportunities to grab, and if you want to explore the benefits of the rising HVAC industry, you need to create a solid HVAC business.

But what are the steps involved in how to start an HVAC business

Don’t worry. We got you covered. But before we jump on to the core of the topic, let’s understand a few important points before starting a successful HVAC business.

Key Points Before Starting a HVAC Business

There are a few points that separate a mediocre HVAC service business from a successful HVAC business. Let’s have a look before you start your own HVAC business.

  • Quality check

    In a service business like HVAC, you can’t ignore the quality of your service. You need to ensure that your on-ground employees for your customer support are well-trained and conditioned to deliver a quality service experience to your customers.

    Stand out from the rest of the HVAC companies in the industry, and you’ll never be short of work in the future. If you enhance the quality of your HVAC work, you can increase your client base and maximize the retention rate.

    In HVAC, a successful business heavily relies on its repetitive customers, and quality service is the backbone of higher customer retention. 

    A loyal customer base can also help HVAC company to increase your sales apart from repetitive HVAC services. Having a strong connection with the clients can remove the friction in the sales process and increase your business revenue.

    You can sell your clients all the repair parts required to complete the task and even new HVAC equipment or products to build a sustainable business.

  • Use of latest and advanced technologies

    Technology is a decisive player in the success of a modern HVAC business. You need to be equipped with the best and most powerful technology assets to improve your business operations and deliver a quality customer experience to the customers.

    You can scale your business operations and minimize the complexities of the increased HVAC service load by simplifying the process.

    By providing your workforce with a duct space calculator, compressor troubleshooting tool, management, and routing software, you can minimize the manual processes and increase the productivity of your workforce.

    Creating a powerful ecosystem can help you get centralized control over your HVAC operations to help you stand out from the rest and solidify your position in the market. You can integrate automation into your existing business operations to boost the quality of service experience and remove the human errors and redundancies from the process.

    Advanced technologies can help you match the rising industry and consumer requirements and rise to the top of the HVAC industry.

  • Finance check

    You need to find a way to raise initial funds to fuel your HVAC service business operations. Plan a robust financial plan to manage your funds and achieve a maximized business output.

    You need to hire a team of technicians and HVAC professionals, buy repair tools and equipment, and spend on marketing and other HVAC business-related tasks.

    You need to calculate the initial expenses and predict accurate financial management. Hire a financial planning expert to get a  crystal clear idea about the rotation of money in your HVAC service business.

    Your financial plan should increase your bottom line and minimize your expenses. Integrate a powerful invoice generation and management system to deliver a quick invoice to your customers.

  • Seasonal planning

    The demand for the HVAC service business increases when summer is about to make its presence felt in the country. You need to be well prepared with an effective planning process to handle the rising demand of the customers.

    You need to integrate powerful systems and hire a skillful sales team to handle the rising complexities of HVAC service demand. Also, ensure that you don’t have a shortage of repairing goods and equipment to deliver a quality service experience to your customers.

    You need to ensure robust budget management and effectively handle the busier summer months. GIve out quality incentives to your workforce to make them feel happy and motivated to handle the extra work during summers.

  • Recordkeeping ecosystem

    Keep detailed records of your business operations and ensure that you have a secure database that prevents your data from getting destroyed or leaked. You can use the details of your customers for retargeting them and ensuring that they become your repeating customers.

    Also, keep track of your workforce and customer information with powerful HVAC tracking tools available in the market and get information about their previous task completion history.

    Leveraging data can also assist you in analyzing your existing workflow and spot different flaws and gaps to increase business efficiency in the future. 

    Data can help you make well-informed decisions and help you stand out from the rest of the industry. You can scale your business and deliver a quality field service experience to your customers.

    You need to ensure these vital elements before stepping into the HVAC service business. These elements can set up your solid foundation and ensure your business’s success. 

Now let’s see how you can start your HVAC.

Steps for Starting an HVAC Business

There are multiple ways to kickstart your HVAC business, depending on your niche. We have selected the most common HVAC service business to give a brief idea of how to start an HVAC business.

1. A business plan

HVAC business plan is the most critical point of starting a profitable HVAC business. To kickstart your own HVAC business, you need to document your target market, HVAC niche, local competition, business structure, revenue projection, and financial obligation, among other factors to kickstart your own HVAC business.

A business plan

A business plan can help you remain on track with your planning and help small business owners focus on a well-thought path to achieve business success.

You also need to filter down the service areas you need to cover with your HVAC service and ensure that you hire a professional team to deliver the planned services with the best effect.

Finalize the legal business structure that’ll apply to your HVAC business. Ensure that you have a creative core team that can help you to tweak your business approach and market research based on the current market scenario.

Operate flexibly and adapt to the changing industry and consumer behavior to succeed in the long run.

2. Determine startup costs

Launching an HVAC isn’t inexpensive. An average startup cost of an HVAC service business is around $2,000 to $10,000, depending on multiple factors. As a startup cost, you can consider different factors like equipment cost, vehicles, insurance, supplies, safety equipment, workforce expenses, marketing cost, and office setup.

hvac business startup costs

Dig deep into the above-highlighted aspects and strengthen your financial planning to minimize the expenses and optimize the business output.

3. Required documentation and certification

Once the business owner has planned different business aspects; then it’s time to get required approvals from the governing authorities to run your business.

Required documentation and certification

You have an HVAC certificate program, HVAC license, and other HVAC certifications like EPA Type 1, EPA Type 2, EPA Type 3, North American Technician Excellence (NATE), Universal EPA certificate, etc.

These certifications are based on the service areas you finalize. You need to ensure that your workforce has proper certifications to work as an HVAC technician or handle other tasks.

4. The professional look and feel

You need to establish a professional look and feel for your HVAC business. From online to offline setup, ensure that your prospects feel they are hiring an expert and skilled HVAC service provider to handle their problems.

The professional look and feel

Set up a website and create different visiting cards, set up a decent office where customers can walk in, and ensure that you offer quality customer support to your clients.

Create an attractive logo and company name to paint a professional image of your business in the HVAC service industry in the prospects’ minds.

5. Online branding and marketing

In the digital era, you can’t ignore a solid online presence of your business on multiple communication channels, like social media, forums, or websites. You need to connect with your target audience where they spend most of the time.

Online branding and marketing

Create a result-oriented marketing strategy to increase your customer base and scale your business to new heights. Create a buyer persona to channel your marketing efforts to your ideal customer and build a strong relationship with them.

Focus on building a brand to leave a strong impact on the industry and your target audience. Outshine other HVAC businesses in customer loyalty and increase your customer retention rate. Strengthen your presence in the industry and create a successful business.

6. Quality customer support

Once you scale your business customer base; you need to ensure that you deliver a quality experience to your customers. Ensure that the quality of your customer service is world-class.

Quality customer support

Provide 24*7 customer support to your customers and prospects to bypass their hiccups and troubles. It will help you minimize customer churn and increase your word-of-mouth marketing.

These are the brief steps that can assist you to create a professional and successful HVAC service business brand. Now you need to bring your idea to reality with HVAC business plan.

Frequently Asked Questions

Is the HVAC service business profitable?

Yes, the HVAC service business is profitable because of the rising demand and customers’ willingness to pay higher for a quality service experience. If you can set the foundation strong and follow the essential steps to establish your HVAC business plan then it becomes easier to increase your bottom line.

How to start an HVAC business?

There are different ways to start an HVAC business, depending upon the type of business you choose to establish. But if we talk about the general HVAC service business then you need to create a business and marketing plan, strong online and offline presence, a great marketing strategy, and a professional workforce to start your business.

What are the advanced technologies required in an HVAC service business?

You need to integrate a professional HVAC tool such as management software to automate your business process and remove human error and redundancies. It can help to scale the productivity of your workforce and streamline your service operations.

What’s the cost of starting an HVAC business?

The starting cost can range up to $100,000 if you want everything upfront. But if you want to start slow and within limits, the average cost of starting an HVAC business is around $2000-10000.

How to compete with the established HVAC service businesses?

If you want to outshine the big guns in the industry, you need to perform solid competitor analysis and figure out weak points and strengthen others. You need to fulfill the weak elements in your business such as HVAC contractors and enhance the quality of HVAC service.

Kick-start Your HVAC Business

The rising demand in the HVAC industry has created a gap between quality and affordability.

If you are determined to fulfill the requirement in the industry and are able to deliver quality customer service, then there’s no stopping you to climb the success ladder.

Now that you know the nitty-gritty elements of starting an HVAC service business, we hope you bring your idea to reality with finesse.

If you have queries or questions, do leave a comment below, we’ll try our best to answer them.

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.