Do you want to start your own HVAC company?
It can be difficult for any new business to get off the ground, let alone an HVAC service company, but following these first simple steps will give you a solid foundation.
The popularity of heating and air conditioning contractors in the United States has grown dramatically over the last five years. In 2018, HVAC companies generated $94 billion dollars!
This is a 3.1% increase from 2017 which was only at $92 billion; this means that there are more people investing their time into these types of businesses every year for one reason or another–whether it’s to save money with energy efficiency features inside newer homes, or because they just need someone else who knows what they’re doing on cold winter days when you can’t figure out how to make your furnace work again after an ice storm overnight shut down everything outside (trust me).
When you’re looking to start a business, then the first thing on your list should be creating an overall plan for what it will look like.
A business plan is an essential document for any new company, and it’s no different if you want to start up a HVAC service.
However one of the biggest mistakes that many entrepreneurs make when they create their plans is underestimating how competitive this industry can be! It’s important to remember your target market so as not to have unrealistic expectations about who may or may not come through your door in search of heating repair services or air conditioning installation work
A good HVAC business begins with developing a detailed blueprint- and understanding all aspects before diving into starting day 1.
- What is the objective?
- Who are your customers and competitors?
- How much money do you need upfront in order to get started?
Once these questions have been answered, developing plans specific to each department of operations can take off from there.
In order to determine how viable your HVAC business will be, you must research the number of other similar businesses in the service area.
You also need to know what type of homes are there and if they have a central HVAC system or not. The US Chamber of Commerce is one good resource for this information as well as city-data.com which has an interactive map showing all types of demographics including income levels and industry density within each zip code boundary in America’s 10 largest cities!
Your service area and working hours are two very important details of your business that you’ll want to determine during this step. You should know if you’re willing to travel long distances or work outside the traditional 9-5, for example.
Determining Your Service Area
The next stage is where you’ll tackle two really crucial things: what type of services will your company provide? And how many different places do they need coverage in? Your service area – which can encompass a city block up into an entire state (or country) depending on how large it needs to be – must also match with when customers would like their items serviced; emergency calls may not always coincide with scheduled ones!
The HVAC business is a specialized field and one that needs to be tackled with the latest information. One of the best ways for an amateur to get up-to-date on this topic is by looking at websites which are successful in your area, specifically those who show up first on Google searches or other search engines like Bing. By using services such as KWFinder you can find what keywords these companies use so they know how better set themselves apart from their competitors!
Legal and Compliance Obligations for Your New Business
Starting any new business venture can be daunting, but the time you spend being mindful of legal and compliance obligations at this early stage will pay off as your company scales. Setting up an LLC is a good idea for protecting yourself from liability issues while still keeping in mind that some states have specific licensing requirements depending on what type of service or product you offer to customers. If it sounds like something worth exploring, check out SBA.gov sites guide on starting a small business today!
Starting your own entrepreneurial endeavor is challenging enough without having all these additional considerations weighing down on your mind during the process. The best way to protect against potential lawsuits and other financial liabilities (such as taxes) when taking ownership over our first startup project is to make sure you are operating under an LLC.
As We Wrap Up
If you want to start your own HVAC company, make sure that you have a business plan in order to determine how viable it will be. A good way of determining this is by researching the number of other similar businesses in the service area and figuring out what legal and compliance obligations there are for starting up an HVAC-related business. Stay tuned for part 2 where we’ll talk about estimating startup costs!