How to Run an HVAC Business
Running an HVAC business requires knowledge of heating, ventilation and air conditioning, hence the HVAC acronym. Those leading an HVAC business should have a technical background in the repair and maintenance of these systems and should be prepared to supply staff with the proper training and tools to perform their jobs effectively. As with any business, the owner should have a business plan that reflects current realities of the marketplace with regard to finances, staffing, product offerings and services, sales and marketing strategies and plan execution.
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Things You'll Need
- Mechanical or other engineering degree
- HVAC training
- HVAC Contractor license
- Business license(s)
- Business degree (optional)
Instructions
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Business Plan
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Write and implement a business plan. The plan should spell out the organizational and operational structure of the business. It can be used to show potential investors the strategy behind your business. It can also serve as an operations blueprint for ownership and staff and outline job responsibilities that must be covered.
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Construct financial models and prepare budgets as part of the business plan. A financial model will allow you to know how much income your business must generate, be it on a daily, weekly, monthly, annual or other basis. This will allow you to establish budgets and assess how much of your revenues go to payroll, benefits, overhead, supplies and incidentals. It will also help you set staffing levels to fit the needed job responsibilities and create pay scales for employees.
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Outline your advertising and marketing strategy, which is also part of your business plan. Decide whether your business needs a website, where you will advertise (Internet, newspaper, Yellow Pages, etc.) and how you will market your services to customers.
Tools and Machinery
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Identify the tools and machinery needed to operate your business. This includes the items needed by workers in the field as well as employees in the office. HVAC businesses need to supply climate control equipment such as furnaces, air conditioning and air handling units, duct work and other items for customers. You may also need to provide work trucks for employees in the field.
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Know how much inventory is needed. Identify the HVAC equipment to have available, and assess how many computers, printers, phones, desks, etc., are needed in the office. Create ordering plans and protocols for equipment and supplies.
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Ensure staff is trained and certified to use the necessary equipment. Assemble a training and certification program if one is needed. Have safety plans in place and ensure workers follow safe procedures.
Licensing and Hours of Operation
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Obtain a license to practice HVAC work and ensure your workers are licensed as well. Find out what licenses are needed for your area; states and municipalities may have differing standards for issuing licenses, which may come from local building inspection boards or board of examiners. Keep the proper business license(s) for your company up-to-date.
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Set the hours your business will operate. HVAC businesses typically require longer workdays than other businesses, because of the time needed to load equipment and travel to job sites. Formulate a plan to provide emergency service for customers who need help on nights and weekends.
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Set work schedules for employees based on the hours of operation. Establish which workers are "on-call" for emergency situations.
Rate Scales and Recordkeeping
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Create a plan that outlines how your company will formulate estimates, bids and actual charges for work. Research market rates for HVAC work and equipment in your area. Decide whether your rates include trip charges or other "add-on" fees.
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Keep accurate records of estimates, bids and job contracts. Ensure your company has adequate staff to handle bookkeeping for all aspects of the business, including payroll, accounts payable and accounts receivable.
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Keep company tax records up-to-date. Ensure your business is complying with local, state and federal tax laws.
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Tips & Warnings
A degree in business from an accredited college or university is an asset for a business owner.
A potential HVAC business owner should have previous work experience in an HVAC business.
Do not allow workers to perform HVAC services without the proper training and licensing.
References
Resources
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