How to Start an HVAC Business: 3 Critical Steps

In the highly competitive heating, ventilation, and air conditioning (HVAC) field, new companies cannot afford to fall behind due to incorrect pricing and operational inefficiencies. When learning how to start an HVAC business, consider investing in software solutions that help to grow your bottom line, as well as taking other critical steps to ensure your business can keep up.

1) Form an HVAC Business Plan

There are many preliminary steps a startup must take to become established and licensed to provide HVAC services. Many HVAC technicians complete trade school programs to become knowledgeable, though they still must take a separate licensure test to be able to provide services. Some of the initial steps to take for your own HVAC business include:

• Decide on your business structure, financial plan, executive summary, and designs for logos and business cards.
• Register your business name appropriately with authorities such as the IRS.
• Obtain the appropriate business license and HVAC certifications to provide HVAC services.
• Establish a target market and conduct an HVAC market analysis.
• Develop sound marketing strategies (i.e. social media, word-of-mouth, SEO, Google My Business) to promote your services, ensuring to distinguish whether you offer refrigeration services.  
• Insure your new business with the right coverage (i.e. general liability insurance, business insurance, workers’ compensation insurance).
• Know how to properly price HVAC services for profit and financial sustainability.
• Hire qualified, licensed employees, preferably with years of experience, and provide them with quality training.
• Invest in smart HVAC tools, equipment, and software solutions.
• Get financing for startup costs (if needed).
• Partner with suppliers of tools and equipment like tape measures, HVAC systems, air conditioners, and heat pumps.

2) Understand the Importance of HVAC Software Solutions

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New businesses have a clean slate for developing efficient operational practices, a culture of attention to detail, and other best practices. While often overlooked, investing in the right HVAC software solutions can prove to be a vital lifeline –– especially for new HVAC providers who cannot afford to lose customers to avoidable operational errors. Some of the top advantages of field service management software include:

Enhanced Accuracy of Estimates

HVAC businesses have many factors to consider that impact the customer’s final price, including:

• Complexity of the project
• Duration of the job
• How many HVAC technicians are required
• Tools and supplies needed

Customers value HVAC technicians who can provide a fair quote, which is as close to the expected final price as possible. Business owners must ensure that their HVAC technicians are not giving quotes off the top of their heads. An ideal estimating software solution, which is designed for the HVAC industry, can help to:

• Generate a precise cost estimate
• Draft proposals with easy-to-use templates
• Identify cost variables, such as project type, production time, materials, and labor rates
• Calculate price margins, as well as time and material costs
• Manage important documents and signatures
• Give customers peace of mind that their estimate wasn’t too high for the project

Cloud-Based Solution That Streamlines Access

From installations to repairs, HVAC professionals will travel to a wide range of residential and commercial settings. The ability to utilize HVAC software from anywhere can truly set one business apart from the next. Whether an accurate quote is needed quickly or the contractor wants to collaborate with other professionals, a cloud-based solution with user-friendly apps can streamline software access across the entire company.

Support for Productivity and Maximizing Resources

Field service management software makes it possible to get the most out of your day-to-day operations. The right solutions can:

• Assist in improving team collaboration on jobs to keep everyone, from administrators to technicians, up to date on quotes and data for each customer
• Decrease the risk of data-entry errors, like duplicate work orders
• Dispatch team members efficiently, from HVAC estimators to repair technicians
• Help teams accomplish more without needing to hire additional personnel
• Contribute to energy efficiency and deliver competitive advantage
• Assist in establishing a pricing strategy to not only cover all costs but increase profit margin

Reduced Labor Costs and Other Expenses

Whereas manual cost-estimation methods can be time-consuming and carry the risk of error, HVAC software can help businesses create cost-efficient workflows. In addition, dispatching becomes more efficient by allowing dispatchers to plan routes ahead of time, helping to save fuel and time for higher profits.

Aside from the potential for decreased labor and operational costs, the bidding process can also be streamlined. Estimators would have all the tools to price jobs accurately to simplify bidding on projects.

3) Choose the Right HVAC Software

Many HVAC software platforms offer similar features, but it’s critical to choose the right partner that provides unrivaled customer support. Making this critical decision too hastily can lead to an investment with no return. Meanwhile, putting it off can cause new HVAC businesses to fall behind their established competition. The ideal field service management software provider should:

• Help businesses prioritize high-profit jobs and effortlessly dispatch technicians
• Enable valuable time and money savings
• Assist in increasing productivity via detailed job efficiency reports and invoicing
• Have software that allows techs to create and present numerous quotes in minutes
• Automatically track dispatch assignments and all aspects of an HVAC role
• Provide real-time financial and KPI reporting
• Support growing your memberships
• Make customer booking and appointment scheduling easy via your website
• Serve as a single source for HVAC total business solutions, giving clients everything needed to operate an efficient company while driving growth
• Equip business owners to identify and correct financial gaps and inefficiencies

4) Create an HVAC Business Operations Manual

The biggest part of starting an HVAC business is deciding how business operations will run. Once you plan your business operations, it can be beneficial to compile the information into an accessible manual. That way, essential information about your business is clear and can be referred to by employees. Business operations manuals, or franchise operations manuals, can include much information about a business, including:

• How to handle supplier and stakeholder relationships
• Operating systems
• Requirements for marketing
• Company information, like phone numbers, email addresses, hours of operation, or physical addresses
• Job expectations
• Safety procedures
• Business policies

When creating your business operations manual, you should ensure that information is clear and accessible to employees. To do so, you should compile your information into sections, implementing a clear table of contents at the beginning of the document. This allows employees to find information quickly without having to navigate the entire manual. Contact information typically lies in the back of the manual, making it easy for employees to reach out to managers.

As a business grows, changes to the way it runs are inevitable. That’s why HVAC companies should continuously update their business operations manuals. With time, workers may find other processes and ways to complete jobs more efficiently. Or, you may have to adjust tasks to allow quality completion. Regardless, ensuring to update your business operations manuals is an important aspect of starting and running an HVAC company.

5) Calculate Your Hardware Needs and Purchase Tools

An HVAC business cannot operate without the right HVAC hardware and tools. This is another important step in starting an HVAC business. Businesses should evaluate which tools and materials they require to complete jobs. To determine this, you should start with the most basic tools technicians need to work efficiently. These can include:

• Leak detectors
• Reciprocating saws
• Refrigerant scales
• Cordless drills
• Refrigerant recovery machines
• Vacuum pumps

From there, you must decide if you will give technicians their own tool kits, or if they will need to purchase additional tools. Most HVAC companies do not provide these tools; technicians must go out and purchase them on their own. These tools can include:

• Hammers: The type of hammer does not matter, as long as it’s lightweight.
• Utility knives: This is a versatile tool that HVAC technicians use to complete many tasks on a job.
• Levels: This allows for straighter installation of thermostats and other equipment. HVAC technicians should consider magnetic levels to ensure accuracy.
• Service wrenches: Technicians use this tool to settle tanks for torching and to close and open refrigeration valves.
• Fuse pullers: This tool allows for the safe pulling of fuses from their holders.
• Inspection mirrors: This makes reading numbers and welding joint inspections easier for technicians.
• Allen wrenches: Because HVAC equipment does not come in a standard size, you’ll need a set of Allen wrenches with both metric and imperial sizing.
• Sheet metal shears: Although HVAC technicians do not cut sheet metal, they must be able to make holes in metal ductwork. Sheet metal shears make this possible.
• Thermostat/tech screwdrivers: Technicians use this tool to remove thermostat covers.
• Pipe and tube cutters: This tool enables technicians to cut PVC tubes and pipes, as well as copper.
• Pipe calipers: This type of tool assists in measuring pipe sizes.
• Long-neck nut drivers: Nut drivers with long necks allow technicians to perform work in hard-to-reach places.
• Channel locks: Technicians use these tools in place of a second pipe and adjustable wrench set.
• Pipe wrenches: This type of tool is most beneficial in 14-inch and eight-inch sizes for HVAC technicians.
• Adjustable wrenches: Adjustable wrenches for HVAC technicians include six-inch and eight-inch sizing.

6) Create a Go-to-Market Strategy

Once the details are finalized and put into place, it’s finally time to market your new HVAC business. To start, you should create a website strategy. Having a website marketing plan can put your company above others, as many of them put website design on the back burner.

The time and effort you spend on your website design will not go unnoticed and can make a huge difference to the customer experience. When customers can easily browse your website for information, it is more likely they’ll return to you for more. It can also play a role in establishing yourself as a reliable, trusted resource for customers.

The goal of marketing is to encourage action from readers. This can include scheduling an appointment, calling to ask questions, or invitations to read more about your services. That’s why HVAC businesses must have a “Contact” page or “Schedule Services” page. These pages can be linked to all web pages on a site and can guide customers to enroll in your services.

Website content for small businesses should be straightforward and informative yet engaging. It should answer specific questions that those in your community may have about your HVAC services. Content should also cater to a specific audience, allowing them to feel included and make more personal connections with your company. 

When crafting a go-to-market strategy, you should also think about search engine optimization (SEO) and other strategies to have your page reach a large portion of your target audience. 

Learn More about Partnering with Sera

If you’re interested in starting an HVAC company but aren’t sure where to begin, turn to Sera for guidance. We offer HVAC business coaching that teaches you how to operate efficiently, manage finances effectively, and retain a team of talented techs. These strategies and more will produce sustainability and growth for your business. 

Even after business coaching, Sera helps enhance efficiency and profitability with field service management software. With the convenience of a single interface, our FSM software offers HVAC companies automated scheduling, dynamic dispatching, real-time booking website widgets, an admin portal, and other reliable features. 

Schedule a call with Sera today to learn more!