air conditioner business plan

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Here is a free business plan sample for an air conditioning company.

Are you looking to launch an air conditioning business but unsure of the first steps to take? You've landed in the perfect spot.

Here, we will present to you a comprehensive sample business plan tailored for an air conditioning company.

As an aspiring entrepreneur, you're likely aware that a robust business plan is crucial for achieving success. It serves as a roadmap, outlining your vision, objectives, and strategies for your enterprise.

To craft a compelling plan with ease and precision, you can utilize our air conditioning company business plan template. Additionally, our specialists are on hand to provide a free review and refinement of your plan.

How to draft a great business plan for your air conditioning company?

A good business plan for an air conditioning company must cater to the unique aspects of the HVAC (Heating, Ventilation, and Air Conditioning) industry.

To start, it's crucial to provide a comprehensive overview of the market. This includes up-to-date statistics and an exploration of emerging trends within the HVAC sector, as illustrated in our air conditioning company business plan template .

Then, you need to articulate your business concept effectively. This encompasses your vision, identifying your target market (such as homeowners, commercial businesses, or contractors), and the distinctive positioning of your air conditioning company (energy-efficient systems, smart-home integration, maintenance services, etc.).

The market analysis section is vital. It requires a thorough understanding of local competitors, industry trends, and consumer needs.

For an air conditioning company, particular emphasis should be placed on the services and products you intend to provide. Detail your offerings - installation, repair, maintenance, types of units - and explain how they align with the demands and preferences of your target customers.

The operational plan is equally important. It should outline the location of your business, the structure of your service and installation teams, supplier relationships for equipment and parts, and the logistics of service delivery.

For an air conditioning company, it is critical to highlight the expertise of your technicians, the efficiency of your operations, and adherence to industry standards and regulations.

Then, delve into your marketing and sales strategy. How will you acquire and keep clients? Consider advertising methods, service contracts for customer retention, and upselling opportunities (such as offering air quality assessments or energy efficiency audits).

Utilizing digital strategies, like maintaining a robust website or active social media presence, is also crucial in the modern marketplace.

The financial plan is another cornerstone. This should include your startup costs, revenue projections, operational expenses, and the point at which you will break even.

In the HVAC industry, the seasonality of business can affect cash flow, making it imperative to have a detailed financial strategy. For assistance, you can refer to our financial forecast for an air conditioning company .

Compared to other business plans, an air conditioning company's plan must pay special attention to technical training, certification requirements, warranty service considerations, and the seasonal nature of the business.

A well-crafted business plan will not only help you clarify your business approach and strategies but also attract investors or secure loans.

Lenders and investors are looking for comprehensive market analysis, realistic financial projections, and a solid understanding of the day-to-day operations of an HVAC business.

By presenting a thorough and substantiated plan, you showcase your professionalism and dedication to the success of your enterprise.

To achieve these goals while saving time, feel free to complete our air conditioning company business plan template .

A free example of business plan for an air conditioning company

Here, we will provide a concise and illustrative example of a business plan for a specific project.

This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.

To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.

All these elements have been thoroughly included by our experts in the business plan template they have designed for an air conditioning company .

Here, we will follow the same structure as in our business plan template.

Market Opportunity

Market data and figures.

The air conditioning market is a robust and essential industry, particularly in regions with extreme temperatures.

Recent estimates place the global air conditioning market at over 100 billion dollars, with projections indicating steady growth due to climate change and the increasing comfort expectations of consumers worldwide.

In the United States, there are over 105,000 HVAC (Heating, Ventilation, and Air Conditioning) businesses, generating an annual revenue of approximately 94 billion dollars. This underscores the critical role air conditioning plays in American homes and businesses.

These figures highlight the significant demand for air conditioning services and the industry's substantial contribution to the economy.

The air conditioning industry is experiencing several key trends that are shaping its future.

Energy efficiency is at the forefront, with consumers and businesses alike seeking systems that reduce energy consumption and lower utility bills. This has led to the development of high-efficiency HVAC systems and smart thermostats that can be controlled remotely.

There is also a growing emphasis on environmentally friendly refrigerants and systems that minimize the environmental impact, in response to regulations and consumer demand for sustainable solutions.

Technological advancements, such as the integration of IoT (Internet of Things) in HVAC systems, are allowing for predictive maintenance and improved system performance monitoring.

Additionally, the rise of smart homes and buildings is driving the demand for HVAC systems that can seamlessly integrate with other smart technologies for enhanced comfort and convenience.

Lastly, the focus on indoor air quality has intensified, especially in light of health concerns, leading to increased interest in air purification and filtration systems.

These trends demonstrate the industry's commitment to innovation, sustainability, and meeting the evolving needs of modern consumers.

Success Factors

The success of an air conditioning company hinges on several critical factors.

Quality of service is paramount. Companies that provide reliable, efficient, and timely installations, maintenance, and repairs are more likely to build a strong customer base.

Expertise and technical knowledge in the field are essential for diagnosing and solving complex HVAC issues, which can differentiate a company in a competitive market.

Location and availability are also important, as customers often require quick responses to air conditioning failures, especially during peak seasons.

Customer service excellence is crucial for fostering trust and repeat business. A company that is responsive, courteous, and helpful will likely enjoy positive word-of-mouth and customer loyalty.

Lastly, effective cost management and the ability to offer competitive pricing, while also embracing eco-friendly practices and adapting to technological advancements, are key to the long-term success of an air conditioning company.

The Project

Project presentation.

Our air conditioning company project is designed to address the essential need for comfortable and healthy indoor climates in both residential and commercial settings. Strategically located to serve a broad customer base, our company will specialize in providing high-quality, energy-efficient air conditioning solutions, including installation, maintenance, and repair services.

We will focus on delivering systems that offer superior performance, reliability, and energy savings, ensuring that our clients enjoy a comfortable indoor environment year-round.

Our air conditioning company is poised to become a leading service provider in the HVAC industry, dedicated to enhancing the comfort and well-being of our clients through innovative climate control solutions.

Value Proposition

The value proposition of our air conditioning company centers on delivering state-of-the-art climate control solutions that ensure optimal comfort, air quality, and energy efficiency for our customers.

Our commitment to utilizing the latest technology and eco-friendly practices not only provides a superior indoor environment but also helps reduce our clients' carbon footprint and energy costs.

We are dedicated to offering personalized services that cater to the unique needs of each client, whether for their home or business, and we strive to educate our customers on the benefits and best practices of maintaining their air conditioning systems.

As a trusted partner in climate control, our air conditioning company aims to be a cornerstone in the community, providing reliable and sustainable solutions that improve the quality of life for our customers.

Project Owner

The project owner is an experienced HVAC professional with a passion for delivering high-quality air conditioning services.

With a background in mechanical engineering and a deep understanding of the latest advancements in climate control technology, he is committed to establishing an air conditioning company that stands out for its dedication to customer satisfaction, efficiency, and innovation.

Driven by a mission to provide comfortable and healthy indoor environments, he is determined to offer services that not only meet but exceed customer expectations, while also promoting energy conservation and sustainability.

His expertise and enthusiasm for the HVAC industry make him the ideal leader for this project, aiming to ensure that clients enjoy the benefits of advanced, reliable, and cost-effective air conditioning solutions.

The Market Study

Market segments.

The market segments for this air conditioning company are diverse and cater to a wide range of needs.

Firstly, there are residential homeowners who require reliable and efficient air conditioning systems to maintain comfort in their homes, especially during hot weather.

Commercial clients, including office buildings, retail stores, and hospitality venues, represent another significant segment, as they need to provide a comfortable environment for employees and customers.

Industrial facilities also form a part of the market, requiring specialized HVAC solutions to control the climate for process efficiency and product preservation.

Lastly, real estate developers and contractors are key segments, as they often seek partnerships for the installation of air conditioning systems in new construction projects.

SWOT Analysis

A SWOT analysis of this air conditioning company highlights several factors.

Strengths include a skilled technical team, a commitment to energy-efficient solutions, and a reputation for reliable service.

Weaknesses might encompass the high costs associated with advanced technology and the need for continuous training to keep up with industry advancements.

Opportunities can be found in the growing demand for eco-friendly and smart home automation systems, as well as in potential partnerships with construction firms.

Threats could involve intense competition from established HVAC companies and the impact of economic downturns on new installations and upgrades.

Competitor Analysis

Competitor analysis in the air conditioning industry indicates a highly competitive landscape.

Direct competitors include other local HVAC service providers, as well as national brands with a wide range of products and services.

These competitors vie for market share by offering various pricing strategies, energy-efficient systems, and customer service excellence.

Identifying competitive advantages such as specialized services, faster response times, and superior warranties is crucial for standing out in the market.

Understanding the strengths and weaknesses of competitors is vital for crafting strategies that emphasize unique selling propositions and customer loyalty.

Competitive Advantages

Our air conditioning company's dedication to providing energy-efficient and cost-effective solutions sets us apart in the industry.

We offer a comprehensive range of services, from installation to maintenance and repair, all performed by certified technicians to ensure the highest standards of quality.

Our proactive approach to incorporating the latest technology in smart climate control allows us to offer innovative solutions that cater to the evolving needs of our customers.

We also prioritize customer satisfaction by offering personalized services, flexible scheduling, and transparent pricing, which fosters trust and long-term relationships with our clients.

You can also read our articles about: - how to start an air conditioning company: a complete guide - the customer segments of an air conditioning company - the competition study for an air conditioning company

The Strategy

Development plan.

Our three-year development plan for the air conditioning company is designed to establish us as a leader in climate control solutions.

In the first year, we will concentrate on building a strong local presence, offering exceptional service, and establishing trust within the community.

The second year will be focused on expanding our services to neighboring regions and increasing our market share by leveraging our reputation for reliability and customer satisfaction.

In the third year, we plan to innovate by introducing energy-efficient and smart technology solutions, as well as forming strategic alliances with home builders and commercial developers.

Throughout this period, we will remain dedicated to providing top-notch service, staying ahead of industry trends, and ensuring customer comfort and satisfaction.

Business Model Canvas

The Business Model Canvas for our air conditioning company targets both residential and commercial clients in need of climate control solutions.

Our value proposition is centered on delivering reliable, energy-efficient air conditioning systems and exceptional customer service.

We offer our services through direct sales, service contracts, and our online platform, utilizing our skilled technicians and customer service team as key resources.

Key activities include installation, maintenance, and repair of air conditioning systems, as well as customer support and follow-up services.

Our revenue streams are generated from the sale of air conditioning units, ongoing service contracts, and maintenance services, while our costs are mainly associated with procurement of units, technician training, and service delivery.

Find a complete and editable real Business Model Canvas in our business plan template .

Marketing Strategy

Our marketing strategy is centered on building a strong brand reputation for quality and reliability.

We aim to educate our customers on the benefits of energy-efficient air conditioning systems and the importance of regular maintenance to extend the lifespan of their units.

Our approach includes targeted online advertising, community engagement through local events, and partnerships with real estate agencies.

We will also leverage social media and customer testimonials to increase our visibility and credibility in the market.

Finally, we plan to offer seasonal promotions and referral discounts to encourage word-of-mouth and repeat business.

Risk Policy

The risk policy for our air conditioning company is designed to mitigate risks associated with technical service delivery, customer satisfaction, and regulatory compliance.

We ensure all our technicians are certified and trained in the latest technologies and safety standards, and we conduct regular service quality audits.

We manage financial risks through strategic planning and cost-effective procurement, and we maintain comprehensive insurance to cover potential liabilities.

Our priority is to provide safe, efficient, and reliable air conditioning solutions while safeguarding the trust and well-being of our customers.

Why Our Project is Viable

We are committed to establishing an air conditioning company that meets the growing demand for comfortable living and working environments.

With our focus on energy efficiency, customer service, and technological innovation, we are well-positioned to capture a significant share of the market.

We are enthusiastic about enhancing the comfort and well-being of our customers while building a sustainable and profitable business.

We are adaptable and ready to make the necessary changes to ensure our success, and we look forward to the bright future of our air conditioning company.

You can also read our articles about: - the Business Model Canvas of an air conditioning company - the marketing strategy for an air conditioning company

The Financial Plan

Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.

All these elements are available in our business plan template for an air conditioning company and our financial plan for an air conditioning company .

Initial expenses for our air conditioning company include purchasing essential HVAC tools and equipment, acquiring service vehicles, obtaining necessary licenses and insurance, training technicians in the latest air conditioning technologies, as well as costs related to brand creation and launching targeted marketing campaigns to reach our potential clients.

Our revenue assumptions are based on a thorough analysis of the local demand for air conditioning services, taking into account factors such as climate, construction growth, and the increasing trend in energy-efficient and smart home systems.

We anticipate a steady increase in service requests, starting modestly and growing as the reputation of our air conditioning company strengthens.

The projected income statement indicates expected revenues from our air conditioning services, including installations, maintenance, and repairs, as well as production costs (equipment, labor, transportation), and operating expenses (office rent, marketing, salaries, etc.).

This results in a forecasted net profit essential for assessing the profitability of our business over time.

The projected balance sheet reflects assets specific to our business, such as service vehicles, tools, and equipment, and liabilities including loans and anticipated expenses.

It shows the overall financial health of our air conditioning company at the end of each fiscal period.

Our projected cash flow budget details incoming and outgoing cash flows, allowing us to anticipate our cash needs at any given time. This will enable us to effectively manage our finances and avoid cash flow problems.

The projected financing plan lists the specific financing sources we plan to use to cover our startup expenses.

The working capital requirement for our air conditioning company will be closely monitored to ensure we have the necessary liquidity to finance our daily operations, including purchasing equipment, inventory management, and salary payments.

The break-even point specific to our project is the level of sales needed to cover all our costs, including startup expenses, and start making a profit.

It will indicate when our business will become profitable.

Performance indicators we will track include the profit margin rate on our air conditioning services, the liquidity ratio to assess our ability to cover short-term financial obligations, and the return on investment to measure the effectiveness of our capital invested in the project.

These indicators will help us evaluate the financial health and overall success of our air conditioning company.

If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for an air conditioning company .

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HVAC Business Plan Template

Written by Dave Lavinsky

HVAC Business Plan

You’ve come to the right place to create your HVAC business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their HVAC companies.

Below is a template to help you create each section of your HVAC business plan.

Executive Summary

Business overview.

Anderson’s Heating Ventilation & Air Conditioning Company (HVAC) is a startup HVAC company located in Boise, Idaho. The company is founded by Arnie Anderson, a HVAC technician for over 20 years who has now determined the time is right to start his own company. Arnie has worked in every operational position in his former employer’s company and has a strong depth of experience and capability in every aspect of HVAC installation and repair.

The job requires a history of knowledge and thorough expertise of many systems within HVAC; Arnie has learned them all via trial and error or on-site. His customers for the past 20 years have learned to trust Arnie with all replacements or repairs for their HVAC systems, because of both his expertise and his encouraging and calm demeanor when dealing with difficult, sometimes emergency, situations.

Product Offering

The following are the services that Anderson’s Heating Ventilation & Air Conditioning Company will provide:

• Provide high-quality service in HVAC installation and repair for residential customers
• Use a “set-window” time frame for HVAC commercial customers in need of repair
• Utilize digital platforms as technical assistance tools for diagnostics and repairs
• Service industrial clients with infrastructure over 100,000 square feet
• Provide distinctive service to high-demand contractors, real estate agencies, and property management companies who require HVAC replacements or repairs
• Provide the most up-to-date and innovative HVAC systems and repair service

Customer Focus

Anderson’s Heating Ventilation & Air Conditioning Company will target residential customers in the greater Boise area. They will also target commercial customers. They will search for and service industrial clients with large-space infrastructures. They will target contractors, real estate agencies and property management companies.

Management Team

Anderson’s Heating Ventilation & Air Conditioning Company will be owned and operated by Arnie Anderson. He has recruited two of his former assistants in his prior employment, Tex Rowan and Matt Rogers, to take on positions as Senior Technicians for Anderson’s HVAC. Tex and Matt together have over thirty years of experience as HVAC technicians and can instruct new employees, as well as diagnose, repair or rebuild HVAC systems.

Success Factors

Anderson’s Heating Ventilation & Air Conditioning Company will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly-qualified team at Anderson’s Heating Ventilation & Air Conditioning Company
• Provide a unique “set-window” urgent-response time frame for HVAC commercial customers
• Anderson’s Heating Ventilation & Air Conditioning Company will offer the best pricing in town. Their pricing structure will be the most cost effective compared to the competition.

Financial Highlights

Anderson’s Heating Ventilation & Air Conditioning Company is seeking $200,000 in debt financing to launch its Anderson’s Heating Ventilation & Air Conditioning Company. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:

• Office space build-out: $20,000
• Office equipment, supplies, and materials: $10,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph outlines the financial projections for Anderson’s Heating Ventilation & Air Conditioning Company.

Company Overview

Who is anderson’s heating ventilation & air conditioning company.

Anderson’s Heating Ventilation & Air Conditioning Company is a newly established full-service HVAC company in Boise, Idaho. Anderson’s Heating Ventilation & Air Conditioning Company will be the most reliable, cost-effective, and efficient choice for residents, commercial customers, and industrial clients within Boise and the surrounding communities. Anderson’s Heating Ventilation & Air Conditioning Company will provide a comprehensive menu of diagnostic and repair services for any client to utilize. Their full-service approach includes a unique service that provides “set time” responses for commercial clients with urgent HVAC needs.

  Anderson’s Heating Ventilation & Air Conditioning Company will be able to provide distinctive, high-quality replacements and repairs to all residents and commercial establishments. The team of professionals are highly qualified and experienced in HVAC processes and can provide either replacements, when necessary, or repair within a short window of time. Anderson’s Heating Ventilation & Air Conditioning Company removes all headaches and issues of the problems that can occur with HVAC systems, particularly in extremely cold winter weather. The unique response time system of Anderson’s HVAC ensures all issues are taken care of expeditiously while delivering the best customer service.

Anderson’s Heating Ventilation & Air Conditioning Company History

Since incorporation, Anderson’s Heating Ventilation & Air Conditioning Company has achieved the following milestones:

• Registered Anderson’s Heating Ventilation & Air Conditioning Company, LLC to transact business in the state of Idaho.
• Has a contract in place at one of the office buildings in midtown Boise.
• Will set up its 10,000 square foot office space
• Reached out to numerous contacts and former clients to consider services from Andersons HVAC.
• Began recruiting a staff of ten and office personnel to work at Anderson’s HVAC company.

Anderson’s Heating Ventilation & Air Conditioning Company Services

The following will be the services Anderson’s Heating Ventilation & Air Conditioning Company will provide:

Industry Analysis

The heating, ventilation, and air conditioning service industry is expected to grow over the next five years to over $309 billion. The growth will be driven by the population increases which continue to create a need for HVAC replacement and repairs. The growth will be driven by the innovative new HVAC systems and products, such as the tankless water heater, that will be requested by customers who desire a more sustainable environment for their homes. The growth will be driven by innovation not-yet-known, as older materials and processes give way to newer high-tensile products that can replace steel wraps, tanks and ducts. Costs will likely be reduced as the worldwide economy continues to remain at a healthy level and commerce is not detained by political forces.

Customer Analysis

Demographic profile of target market.

Anderson’s Heating Ventilation & Air Conditioning Company will target residential and commercial clients in Boise, Idaho. They will search for and service industrial clients with large-space infrastructures. They will target contractors, real estate agencies and property management companies.

Customer Segmentation

Anderson’s Heating Ventilation & Air Conditioning Company will primarily target the following customer profiles:

• Residents of Boise region
• Commercial clients of greater Boise area
• Industrial clients (100,000 square foot facilities) in the greater Boise region
• Real estate agencies, contractors and property management companies in Boise

Competitive Analysis

Direct and indirect competitors.

Anderson’s Heating Ventilation & Air Conditioning Company will face competition from other companies with similar business profiles. A description of each competitor company is below.

Middleton HVAC Company

The Middleton HVAC Company is headquartered approximately 30 miles from Boise, Idaho. The company has been in business for five years, providing installations of new water heaters for the fast-growing bedroom communities of Boise. The owner, Mitch Carter, has extensive experience in water heater installation, having formerly worked for a company that manufactures and installs water heaters. He, along with two employees, work on new home construction, assembling and installing water heaters on a large volume basis.

The Middleton HVAC Company does not specialize in installation, repair or replacement of heating, ventilation or air conditioning units; however, the water heaters are heavily prominent in the business and some HVAC work is also completed for select clients. This company is focused on new home starts; as such, the next Middleton community is on their radar for sales and installation purposes. The company installs basic water heaters, without offering tankless water heaters, and includes typical instructions and safety warnings with those heaters. Repairs are often secondary to installation, which has led to some first-time homeowner complaints.

COC Company

The COC Company is an abbreviation of the full company name: Cooling Or Cold Company, which describes the installation, replacement or repairs offered by this company. Because of heat during the summer, cooling systems are required. The extreme cold during the winters in Idaho create the need for operational heating systems. These two weather patterns drive the systems comprising the scope of installation and servicing of the COC Company.

The COC Company is owned and operated by Tabor Nugent, who started the business in 2010. Since that time, he has hired one additional service repair representative and two administrative office staff. Tabor has found a niche in hot and cold weather systems, which he believes are the solutions for the weather patterns of the Boise region.

Thomas & Marsh HVAC Company

Thomas & Marsh HVAC Company was established in 1995 and has been a part of the Boise, Idaho community in several interactive ways throughout the years. The company has built and maintained an active community within area company owners and has started various associations to support local businesses. Terry Thomas is the owner and president of the company, and handles most of the client relations. Matt Marsh is the vice president of the company, overseeing the scheduling and other operations duties. Both Terry and Matt are active in the community organizations, encouraging camaraderie among all businesses.

In 2010, Thomas & March HVAC placed all services into a “mobile repair” mode, which resulted in increased customer calls for urgent repairs in cold weather or other electrically-challenged situations. This created a following of clients who continue to use the mobile repair service rather than calling a competitor, as the impression given to clients is that the repairs will be available within minutes instead of within hours.

Competitive Advantage

Anderson’s Heating Ventilation & Air Conditioning Company will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

Anderson’s Heating Ventilation & Air Conditioning Company will offer the unique value proposition to its clientele:

• Highly-qualified team of skilled employees who are able to provide the most up-to-date and innovative HVAC systems and repair service.
• Provide a unique “set-window” urgent-response time frame for HVAC customers
• Unbeatable pricing for clients; creating the best pricing options available

Promotions Strategy

The promotions strategy for Anderson’s Heating Ventilation & Air Conditioning Company is as follows:

Word of Mouth/Referrals

Anderson’s Heating Ventilation & Air Conditioning Company is owned by Arnie Anderson, who has built up a stellar reputation as an installation, replacement, and repair expert in the HVAC industry. His long and extensive list of clients over the years has been bolstered by recent publicity after Arnie saved a family from extreme danger when searching for a systemic leak. By providing exceptional service and expertise to his clients, Arnie can now ask former clients to spread the word about Anderson’s Heating Ventilation & Air Conditioning to help build his company rapidly.

Professional Associations and Networking

Boise, Idaho is a medium-sized city and, as such, is a community-focused one, as well. Neighbors are friends, as are repair personnel, installation teams, construction groups and others. Arnie Anderson intends to solicit new customers and network among several groups for the first time since starting his company, as he knows referrals and word-of-mouth comments will lead to the success of his company.

Print Advertising

Two weeks before the launch of the company, a direct mail item will be sent to every resident in Boise, inviting all to take part in special “launch prices” during the first two weeks of the grand opening of the company. Customers are invited to visit and get a discount voucher for installation, replacement or repair of HVAC systems.

Website/SEO Marketing

Anderson’s Heating Ventilation & Air Conditioning Company will utilize their website, which will be well-organized, informative, and provide a list of services that Anderson’s Heating Ventilation & Air Conditioning Company is able to offer. The website will also list their contact information and list their available times if customers want to schedule a visit. The website will use SEO marketing tactics so that anytime someone types in the Google or Bing search engine “HVAC company” or “HVAC repair near me”, Anderson’s Heating Ventilation & Air Conditioning Company will be listed at the top of the search results.

The pricing of Anderson’s Heating Ventilation & Air Conditioning Company will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.

Operations Plan

The following will be the operations plan for Anderson’s Heating Ventilation & Air Conditioning Company. Operation Functions:

• Arnie Anderson will be the Owner and President of the company. He will oversee all staff and manage client relations. Arnie has spent the past year recruiting the following staff:
• Tex Rowan, a former associate of Arnie’s in his former position, will be a Senior Technician who will train new technicians and install, repair and replace HVAC equipment.
• Matt Rogers, a former associate of Arnie’s in his former position, will also be a Senior Technician who will oversee scheduling and operations of the team as a whole.
• Carrie Swanson will be the Office Manager, handling service calls, daily administration duties and assisting the technicians as needed.

Milestones:

Anderson’s Heating Ventilation & Air Conditioning Company will have the following milestones completed in the next six months.

• 5/1/202X – Finalize contract to lease office space
• 5/15/202X – Finalize personnel and staff employment contracts for the Anderson’s Heating Ventilation & Air Conditioning Company
• 6/1/202X – Finalize long-term contracts for Anderson’s HVAC Company clients
• 6/15/202X – Begin networking at industry events
• 6/22/202X – Begin moving into Anderson’s Heating Ventilation & Air Conditioning Company office
• 7/1/202X – Anderson’s Heating Ventilation & Air Conditioning Company opens its office for business

Arnie Anderson has recruited two of his former assistants in his prior employment, Tex Rowan and Matt Rogers, to take on positions as Senior Technicians for Anderson’s HVAC. Tex and Matt together have over thirty years of experience as HVAC technicians and can instruct new employees, as well as diagnose, repair or rebuild HVAC systems.

Financial Plan

Key revenue & costs.

The revenue drivers for Anderson’s Heating Ventilation & Air Conditioning Company are the fees they will charge to their customers for their products and services.

The cost drivers will be the overhead costs required in order to staff Anderson’s Heating Ventilation & Air Conditioning Company. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.

Funding Requirements and Use of Funds

Anderson’s Heating Ventilation & Air Conditioning Company is seeking $200,000 in debt financing to launch its HVAC company. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of customers Per Month: 165
• Average fees for products and services per Month: $44,500
• Office Lease per Year: $100,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

HVAC Business Plan FAQs

What is an hvac business plan.

An HVAC business plan is a plan to start and/or grow your HVAC business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your HVAC business plan using our HVAC Business Plan Template here .

What are the Main Types of HVAC Businesses? 

There are a number of different kinds of HVAC businesses , some examples include: Residential HVAC company, Commercial HVAC company, and Industrial Company.

How Do You Get Funding for Your HVAC Business Plan?

HVAC businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start an HVAC Business?

Starting an HVAC business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop an HVAC Business Plan - The first step in starting a business is to create a detailed HVAC business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your HVAC business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your HVAC business is in compliance with local laws.

3. Register Your HVAC Business - Once you have chosen a legal structure, the next step is to register your HVAC business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your HVAC business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary HVAC Equipment & Supplies - In order to start your HVAC business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your HVAC business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful HVAC business:

• How to Start an HVAC Business

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• Field Service Management Platform
• Company Size
• Integrations

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HVAC Business Plan Template & Examples (2023 Guide)

September 25, 2020 Paul Tyrrell

Table of Contents

Why is it necessary to have a HVAC business plan?

One of the biggest challenges in setting up a business plan is making sure you’ve set reasonable expectations and goals. For any commercial HVAC business, you want to set direction and move towards goals to ensure you are moving the needle for your HVAC business.

The key to sticking to your goals is FOCUS.

To begin your business plan for your HVAC company you can start with simple steps like creating a business canvas to capture ideas. This starts by defining who your target market is and leads in to how you determine your marketing and sales strategies all the way through to how you perceive customer success (how well you are rated/reviewed etc). A key aspect of success is being able to grow in sophistication without getting buried in the technical operations day to day. You need to be able to look at the different elements of your business, determine the performance against targets so you know if you are on track or heading off a cliff.

For your heating and air conditioning business you want to construct a template for your business so you can track growth, boost productivity and your profit margins consistently month on month or year on year. Running a HVAC business has many challenges and unfortunately not all businesses become successful. In fact, 50% of businesses fail within the first twelve months. As in any industry, you need to be competitive, have high quality of work and superior customer service and these will help your business grow both in reputation and profitability. Without a defined plan you may find your business is remaining stagnant or even worse, going backwards.

The above is a business planning tool used in Silicon Valley by start-up companies.  It allows you to capture all of the key information on a single page. It’s called the Business Model Canvas.

This canvas template gets you to ask the right questions and can be a powerful tool for growth.  Focus on customer service, marketing plans, financial profit and loss statements and operations for your business helps you track the right metrics towards profitability. We are going to run through the Business Model Canvas and help you start a new business, a second business or even improve your current business.

Essentially, this process helps you create a North Star for your business, it is highly visible to the whole team, its a clear goal you are all working towards.  A North Star is a single metric that gives you the best indicator of success.

To create your business plan you need to do the research…

• Know your audience?
• Have the right information to add to your business plan
• Consider who else is interested in your business plan
• Be precise in what you put in to your plan and just as important what you leave out

Question:  What would it mean if your business was profitable and generating enough money to achieve your goals?

• more time with family
• a business that runs itself so you can focus on the next thing

9 Factors to Include in Your HVAC Plan

The Business Model Canvas as a template can give your HVAC business some structure and clarity. This model is typically broken into nine segments that we will dive into.

1. Customer Segments

Who are your customers? Do you know what your customer avatar is? Can you deliver superior customer service for your targeted avatar? You want to document who you are going after and what problem you are solving for them. By knowing who your audience is and their problem you will know how to target and access them through the development of an effective HVAC marketing plan.

You could be targeting residential customers in your local geographic area or commercial businesses doing larger projects, universities, hospitals, restaurants and more. It is vital to have a clear picture of who you are going after and what sort of services are going to be best suited and how to price them.  This also helps you determine what products / suppliers / vendors you want to develop relationships with.

Next you need to know the channel or platform to reach these customers (Tip 3).  You want to find the place where your customers expect to find you, ready about your services and see your reviews.  After acquiring the customer/job the challenge to create a profit (after the cost of acquiring a customer is covered). Once you have this process correct and you are getting leads and making a profit from the work, all you need to do is repeat.

2. Value Propositions

Now you know who your customer is, think about what they want and how to interact with them? This can be as simple as saying you are always on time or always extremely professional or always low cost. Getting a clear proposition for your sales strategy can help your HVAC company gain those potential customers you have just found.

You’ll know you’ve got your value proposition correct when your quotes are coming through and being accepted with a high rate – such as 50% success rate.  This comes down to interacting with customers and listening to their wants and needs during the quoting process. It is also inclusive of the goal you have in mind for your HVAC company.

3. Channels

What platforms or channels are your customers using when they are looking for services? Why you may be more successful in certain channels and not others? What channel you chose will determine how you interact with your customers. Doing a bit of research is important in knowing what channels are successful for HVAC businesses and what isn’t as effective.  A test, fail and learn attitude is important to ensure you dont put all your eggs in one basket and it gives you options to tap leads when you need to.

When thinking about your business plan, think about different ways you can pull in potential customers. This could be a marketing strategy or HVAC sales techniques like emails, flyers or even word of mouth but it could also be digital platforms like ads on social media or internet channels.

For your HVAC company you might find that a particular channel will be more successful than another might be. When you can determine which platforms work for you, you will be able to fit your team’s business plan into your marketing strategy.

Social Media channels

Starting a HVAC business plan means first bringing in the jobs and potential clients. You may also find with a bit of research that your customers may shift channels over time. COVID19 for example, has been a disruption that has changed where you will normally find your customers. You haven’t lost those clients, they have just moved to different platforms.

3.1 Marketing

Marketing can come into play with channels when you consider options like SEM, SEO, word of mouth and printed media. SEO is Search Engine Optimisation and this means that your results will be ranked based on keywords in search engine results. SEO needs an amazing website that is full of content that is specific to your industry and where customers expect to find you to solve the problems they are having.

SEM or Search Engine Marketing is based on paid advertising on platforms like Facebook, Instagram, LinkedIn or Google. There are options to suit every HVAC business plan and every unique HVAC customer base.

You want your HVAC marketing plan to be a sales strategy that is inclusive to your customer base and adjustable as your business grows and changes.

4. Customer Relations

When you talk about customer relations in your HVAC business plan, you are talking about how you deal with your customers. From the moment they contact you (through whatever medium best suits them phone, online form, facebook messenger etc) to getting a quote to the moment they write the cheque and give you a glowing review about your excellent service!  Each of these interactions are important and should be scrutinised regularly or surveyed with customers to find where they can be improved for the customer.

Are you approachable if the customer has questions? Can they contact someone if there is an issue? Step into your customer’s shoes and take a critical look at your own HVAC company to see if your HVAC services match both your market research and your customer’s needs.  You wont do well if you are pitching product & services at a Commercial customer but attracting residential customers.

Both before and after you have completed your customer’s work you want to ensure you can keep a good relationship for those repeat jobs and customer reviews. Customer relations can make or break a business based on your professionalism and efficiency. If you have technicians on the site who are rude while servicing the heating or air conditioning unit it will always look bad – check out our Post in Customer Service Tips in 2020 for HVAC .

The same goes for when the customer rings the office to complain and they get an answering machine or a rude receptionist who isn’t interested in helping. The way you handle your customers will contribute to your ability to get more more from them or completely obliterate your ability to attract more customers in the future.

Customer and technician

5. Revenue Streams

Having good HVAC accounting practices in your HVAC company and a healthy profit margin will allow your business to grow. If you have bad revenue streams that are not high yielding you might find your business will stagnant or even move backwards. For growth and expansion to occur in any HVAC business, you need to have set goals that outline the way in which you intend to price your jobs and schedule enough work to be profitable. It may be a challenge to work out and document but with the right set up, you will find your business will boom.

When you think about how to start a HVAC business, it can be easy to get stuck in all these technical details without making sure you are delivering to your customers. If you focus too much on the customer side of things and don’t charge enough in your quotes, you will lose money and wonder why you aren’t profitable.  This is not how you start a successful business and it can be a slippery slope on the path to failure if close monitoring and changes are not made.

You need to be thinking smart when planning your revenue and tracking your income sources. A great book to read is Profit First by Mike Michalowicz, it helps get your head right for starting your business.

6. Key Activities

Are you happy with the level of service you are providing to customers?  What activities do your team undertake to deliver quality customer service? Do you have a published duty of care, a minimum set of standards for customer engagements.  Does the team have a HVAC maintenance checklist in the field to ensure they can delivery quality fast?  Do you get good and bad feedback from customers, are you trying to work out where the weakest links are and put in place strategies to remedy.  This is a constant battle and an area you need to regularly perform a litmus test on.  Bad habits left too long become entrenched and can be difficult to change.

When thinking about your key activities as a HVAC business, you need to understand the services your customers expect you to provide and balance how they can be profitable. In this step you are bringing in your findings and learnings from the previous steps to give you a sound understanding of the activities of your business. Ask yourself, what services do your HVAC team provide? How can you divide these services up into profitable or not profitable items? Think about your customer’s problem and the steps needed to complete their job. How can you deliver a satisfactory and suitable outcome for the service they’re looking for? They don’t want to over pay and you don’t want to lose money on the job. You need to consider your profit structure for each of your key activities. Once you have mapped out each step you can see where you might need improvement and where you are already doing great.

Finding those money pits are important to rectifying that problem. This may be that you need one technician rather than two to go out to a service call for an air conditioning unit or loading work in a specific area of town to reduce travel between jobs and keeping travel expenses down and being able to fit more jobs in to a single day.

Keeping track

Keep track of your customer database and your processes such as invoicing, purchase orders, quoting and office to get a better look at where your time and money is being spent.

Divide your activities into sections such as:

• Job booking in the office
• Job completion in the field
• What does the technician need to do once on site?
• How does a technician greet a customer?
• What safety documentation do they need to complete?
• Do they have a checklist of jobs to complete of the servicing steps needed?
• What reporting needs to be generated or supplied to the customer?

By breaking your process and key activities down into segments, you can review each area regularly to look for improvements.

Simple Job workflow

7. Key Resources

Regardless of whether you have a business that has been running for a year or one for 100 years – staff management is an unavoidable activity.  The pain of not having the right team can be a difficult problem for any HVAC business to overcome. Consider if your hiring process is up to scratch as you may need to take a look at who and how you hire. Are you looking in the right places for your new hires? Do they have the right level of experience? A good rule to stick by is “be slow to hire and quick to fire”. You don’t want to rush into hiring the wrong person and end up in a worse position than if you only waited for the right person. You really need to be impersonal when it comes to hiring and firing. You want to create a criteria for your dream team and make sure that each new hire fits the standard you want to maintain.

Next, is the team provided enough training to keep their skills current? Do you have enough systems in place to look after your team – safety etc?  Once you have gotten yourself a killer team for both office and field, your HVAC company will really have the chance to grow and become successful. You need to foster a continuous open communication between the field and office so any minor process issues can be resolved quickly and not impact the flow and pace of your growth.  Leverage the mindset of bettering your business’s collective skills.

7.1 Some processes to think about:

What processes have you got in place for dispatching technicians in the field ? Your office is a key part of your business and it needs to be able to communicate with the field with ease. You don’t want a slow system that will reduce productivity because you are waiting on a technician to get some paperwork back to the office. Do you have an efficient system for creating schedules and managing completed activities that need follow-up?

Consider whether you have an efficient inventory management system . You don’t want to waste time chasing part numbers and looking in the back of your vans to try and find them. You need to have the resources on hand to be able to find what you need, when you need it.

Ideally, you want a software that can create automatic links between your business to create a united and productive unit.

All this will undoubtedly have a lot of trial and error, but with a little practice you will find that your HVAC team has the right resources needed to succeed. If you find that your team is disorganised or lacking in skills, your whole business can suffer. You don’t want to wait until you have started that downwards spiral before you do something to change it.

8. Key Partnerships

Developing key partnerships can be very empowering to your HVAC company. You may have a services skill set and want to build up an installation side of a business and you know someone who’s really good at installation. You can take on the services side and they can take on the installation side. You may want to partner with someone who’s great at Electrical and you do the Plumbing. You might be great for BMS systems and they might be great at commercial construction. In having HVAC partnerships it can be incredibly powerful for all parties.

The downside is they can be a drain on your time and when things get sloppy with one partner this can have a detrimental impact on your business.  It is really important when mapping out partnerships that you jointly map out the workflow between the various teams and ensure the handovers are smooth for both the teams and the customer. You will need to document the boundaries and operating procedures prior to starting any partnership.

You should also have the same attitude with starting a new partnership as you should with hiring a new team member. You should be slow and reluctant to enter a partnership but quick to exit one of it turns sour or isn’t working for you.

Partnerships can be a massive accelerator but they are something to be approached with extreme caution and regard for your own business and reputation.

9. Cost Structures

Do you know what your cost structures look like in your HVAC business? Do you have a list of your core costs? Your cost structures ideally should give you a clear financial view; profit and loss statement, balance sheet and a cash flow forecast.

Your profit and loss statement is summary of all your expenses and income and usually calculated on a monthly basis. By having this, it can contribute to seeing those parts of your business that might be using up too much expense and reveal those parts that might need a little more love.

money and paper flying around

You can set up a balance sheet where you have all of your various accounts and buckets of money set up to see where everything is going. Tools such as Xero’s balance sheets can be a real time saver and a good example as to what your projections and cash flow should be looking like.

A cash flow forecast is essential as you don’t want to get too off track and realise suddenly that your HVAC business has run out of available funds. You want to be able to track how your business is going and how profitable you are. You don’t want to wait until the train has run you off the tracks, you want to know that the train is coming a good few weeks before so you can take action.

Having bad cash flow is probably the biggest killer of businesses, starting out a cash flow forecast can dramatically improve the management of your risk.

Key summary

In the HVAC field industry there are numerous challenges that can make running a successful business even harder. But you don’t have to lose hope. The top things you can include in your HVAC plan to help you reach success are: 

• Know your customers
• Value propositions with a clear strategy 
• Find the right channels to market your business
• Build long lasting relationships with your customers
• Balance your revenue streams
• Map out your business strategies 
• Manage your team efficiently
• Develop partnerships with key companies 
• Create a cost structure 

With these steps you can give your business the best chance to succeed in a competitive market. 

One of the best ways you can effectively plan your business is through using your own experience. The most successful businesses always have had their own personal experience to help them guide the do’s and don’ts of the industry. If you don’t have any of your own experience in being a technician, running job sites, or performing maintenance, refer to someone who has. Gaining perspective is always valuable and can help you better understand the needs of your industry. 

Why You Should Consider End-To-End Job Management Software When Building Your HVAC Business Plan

When thinking of starting a HVAC business, there is a lot that you need to consider especially when you look at the large rate of failure for many businesses.

Field service management software like FieldInsight can help incorporate all the moving parts of your business into one place. You will have less stress on your shoulders when you have your business running as a unit with your office and field connected.

Mapping out your business canvas can be less of a headache when you have automated software like FieldInsight. Imagine what your business would be able to achieve with an end-to-end job management software like FieldInsight.

What You Should Do Now

• Book a Demo . You’ll be in touch with an automation expert who has worked in this space for over 5 years, and knows the optimal workflow to address your needs.
• If you’d like access to free articles about managing HVAC workflows, go to our blog .
• If you know someone who’d enjoy reading this page, share it with them via email, Linkedin, Twitter, or Facebook.

Related Posts

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HVAC Business Plan

Start your own hvac business plan

ClimateTech HVAC Solutions

Executive summary.

ClimateTech HVAC Solutions is dedicated to revolutionizing the HVAC industry by providing advanced, energy-efficient heating, ventilation, and air conditioning services to both residential and commercial clients. Our mission is to enhance indoor air quality and comfort through innovative solutions tailored to each client’s needs.

Company Purpose / Mission Statement

To deliver superior HVAC solutions that prioritize energy efficiency, customer satisfaction, and technological innovation, ensuring optimal indoor environments for our clients.

Problem We Solve

Many property owners struggle with outdated, inefficient HVAC systems that compromise comfort, inflate energy costs, and degrade air quality. The demand for proficient, sustainable, and reliable HVAC services is evident.

Our Solution

We offer a comprehensive range of HVAC services, including the installation, maintenance, and repair of energy-efficient systems. Leveraging the latest technology, we provide eco-friendly options that minimize energy usage and expenses while enhancing air quality and comfort.

Target Market

Our services cater to homeowners seeking energy-efficient HVAC solutions and commercial entities like office buildings and industrial facilities in need of extensive HVAC services for large systems.

Led by a seasoned CEO/founder, our team includes a Service Manager overseeing technical operations, a Sales and Marketing Manager driving business growth, and expert HVAC Technicians delivering top-notch services.

Financial Summary

We aim for significant growth over the first three years, with revenue projections of $500,000, $750,000, and $1,000,000, and profits of $100,000, $300,000, and $500,000 respectively.

Funding Needed

An initial investment of $250,000 is required for startup costs, including service vehicles, tools, marketing, and operating expenses.

Products & Services

Problem worth solving.

Inadequate HVAC systems result in poor air quality, discomfort, and excessive energy bills. Our goal is to rectify these issues with our efficient solutions.

Our state-of-the-art HVAC solutions are designed to meet the specific needs of our clients, providing smart, sustainable options that enhance comfort and reduce costs.

Market Size & Segments

Our market encompasses both residential homeowners and commercial clients, with a focus on energy-conscious individuals and businesses seeking reliable HVAC solutions.

Competition

Current alternatives.

• Local and national HVAC service providers
• DIY solutions

Our Advantages

Our edge lies in our commitment to modern, efficient technologies, personalized solutions, and a focus on customer education and satisfaction.

Marketing & Sales

Market positioning.

We position ourselves as the premier provider of innovative, energy-efficient HVAC solutions, distinguishing our offerings with unparalleled service and technology.

Unique Value Proposition

Our unique selling point is our ability to combine cutting-edge technology with tailored services, ensuring each client achieves the best in comfort and efficiency.

Location & Facilities

Our headquarters is strategically located to serve our target markets, equipped with the latest in HVAC technology and tools.

We leverage the latest HVAC technologies and software to ensure efficient service delivery and customer satisfaction.

Milestones and Metrics

• Launch of business in Spring 2024
• Partnership with construction firms in Summer 2024
• Expansion with a second service location in 2025
• Securing 200 maintenance contracts by 2026

Company Overview and Team

Organizational structure.

ClimateTech HVAC Solutions operates with a clear organizational structure, centered around our core team of dedicated professionals committed to driving the company’s vision forward.

Financial Plan and Forecast

Projected profit and loss.

• Year 1: $500,000
• Year 2: $750,000
• Year 3: $1,000,000

Expenses/Costs

• Year 1: $400,000
• Year 2: $450,000
• Year 3: $500,000
• Year 1: $100,000
• Year 2: $300,000

Use of Funds

The initial investment will be allocated towards essential startup costs, including equipment, vehicles, marketing, and operating expenses, to establish a strong market presence.

Supporting documents, including detailed market analysis, technological innovations, and strategic plans, are available to further illustrate our business model and growth strategies.

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Step-by-Step Guide to Crafting an HVAC Business Plan for Startups

Starting an HVAC business demands technical know-how and a robust HVAC business plan. This plan is crucial for navigating the complexities of HVAC profitability analysis , financial forecasting, promotional tactics, and operational outlines. Through this, the HVAC business plan becomes a roadmap leading to success.

Let’s walk you through the components of a comprehensive HVAC business plan. 

Importance of a Robust HVAC Business Plan

A robust plan is the cornerstone to success in business. Crafting a well-structured plan turns aspirations into achievements in the competitive HVAC industry. It’s the foundation on which your start is built. 

The Role Of The Plan In Ensuring Long-Lasting Success

Here’s how an HVAC business plan template ensures long-term success in business. 

• Acts as a strategic roadmap highlighting business goals, objectives, and actionable steps to reach them.
• HVAC financial projections estimate startup costs, operating expenses, revenue projections, and potential profitability. 
• Market analysis delves into customer needs, trends, and the competitive landscape.
• Unravels operational intricacies such as equipment procurement, inventory management, and service delivery processes. 
• Identifies, assesses, and mitigates against potential risks.
• Outlines an approach to building a strong brand identity and reaching the target audience.
• Provides a roadmap for resource allocation.
• Serves as a living guide to be adapted as your startup grows and evolves.
• Showcases professionalism and credibility when seeking funding or partnerships. 

When thinking about writing a plan for your business, the last thing you’re likely to think about is the cover page. Yet, it’s the most important despite being the last one to create. The cover page gives an overview of key information regarding your business. 

Let’s see the contents of a mechanical contractor business plan cover page. 

Don’t miss to add your logo on the cover page. Because it enhances the page’s visual appeal and brand identity. A logo on the cover page of an air conditioning service business plan PDF is for more than just aesthetics. It’s an essential task that contributes to giving your document a professional appeal.

Business Name

A name on the cover page conveys immediate identity and context. This is positioned prominently at the top to communicate the essence of your startup at a glance. The name guides readers to relate the content presented to your brand.

Contact Information

Readers get a direct avenue for engagement and inquiry when you add contact information to the cover page of an HVAC business plan. Usually placed below the logo, the information offers potential investors, stakeholders, and partners immediate means to connect with you. 

The contact information may include:

• Phone number
• Email address
• Social media channels 

Business Address

Your business address on the cover page is a crucial point of reference.

The name is placed near your contact address to establish a tangible connection between your strategic vision and physical presence. 

Key Stakeholders and Their Roles

Highlighting critical individuals driving the success of your venture is a great idea. To immediately convey a sense of collaborative leadership. The transparent approach gives credibility to the vision and strategies of your business.

Executive Summary

The section in an HVAC business plan example summarizes your objectives and how you plan to meet them. An executive summary presents facts and entices readers to finish reading the rest of the document. 

Here are the contents of an executive summary. 

Company History

A sample business plan for HVAC company should have the history of your venture in the executive summary. This serves as an anchor and gives potential investors and partners valuable insights into your journey. Company history shows resilience and trajectory. This establishes credibility and commitment to continuous improvement. 

Mission Statement

An HVAC company mission statement communicates the fundamental purpose and guiding principles underpinning its existence. Additionally, it serves as a beacon aligning stakeholders’ understanding of core values and long-term objectives. 

Business Goals and Objectives

Cooling system business objectives and goals succinctly highlight your business’  strategic direction. Their presence immediately allows readers to understand intended outcomes, key milestones, and strategies to achieve them. 

Competitive Advantages

Incorporating competitive advantages in the executive summary highlights unique strengths that position your business ahead of competitors. This offers immediate insight into your distinct attributes, resources, or capabilities that set you apart.

Business Overview

The business overview section in a sample HVAC business plan PDF highlights the snapshot of your business. Readers learn about your company’s fundamental aspects and overall structure. A business overview is an introduction to your business and sets the tone for the rest of the plan. 

Key elements in a business overview include:

Company Summary

It’s a succinct and focused section offering a brief overview of your company’s essential details. The summary includes key aspects of your business for readers to get a clear understanding of what it’s about. 

Types of HVAC Services Offered

Readers find your HVAC service offerings in this section. Besides, investors, partners, and stakeholders can quickly grasp the nature and scope of your business. These can make informed decisions and align their expectations with your company’s capabilities. 

Target audience

Establishing who your company seeks to serve is an essential aspect of the business overview. The information is valuable for potential investors, partners, and stakeholders. It guides them to assess the viability and potential success of your business. 

Other benefits include:

• Demonstrates understanding of the market and its dynamics
• Encourages strategic focus 
• Helps investors evaluate whether your business aligns with their goals 
• Readers can estimate the potential market size 

Frequency of Services

Portraying service frequency allows readers to estimate your potential income. Frequency services are a key driver of revenue growth. Focus on service frequency highlights commitment to prioritizing long-term benefits for clients. 

Company Ownership

Understanding ownership options is crucial when thinking of starting an HVAC business. The HVAC business model forms the bedrock upon which your operations will be built. Choice of ownership impacts how your business operates and evolves. 

Business Entity Type 

Running a successful business requires choosing an appropriate entity type from the four main options. Each has advantages that need consideration before choosing one for your business. 

Let’s look at options for HVAC business ownership structures.

• Partnership – This is owned and controlled by two or more partners, profits and losses are shared among the partners. 
• C Corporation – The business raises money through selling stock. Owners benefit from tax deductions not available for other entities. 
• Sole proprietorship – This business has no distinction between its owner and the company itself. There’s no need to worry about paperwork and it requires little capital. 
• Limited Liability Company (LLC) – Owners have a wider pool of resources and financing opportunities since the business is registered in the state. It’s easier for the company to grow and expand. 

Start-Up Summary

The plan should have an overview of startup costs, long-term assets, and short-term assets. Let’s highlight these below. 

Start-Up Costs

You need to budget for various costs to start an HVAC business. Here’s a breakdown of the essential costs. 

• Equipment and tools
• Service vehicles 
• Inventory and parts
• Office space and furnishings
• Marketing and advertising
• Licenses and permits
• Software and administrative tools
• HVAC technician training and management
• Contingency fund 

Keep in mind that the costs vary by location, location, model, and scale of operation. Understanding these costs allows budgeting to set up your business. 

Long-Term Assets

The success of your business relies heavily on your long-term assets. These durable and high-value items are useful in carrying out business operations over extended periods. Some long-term assets include:

• Trucks and vans
• Larger HVAC equipment
• Workshop equipment
• Specialized tools
• Storage facilities

Short-Term Assets

Your business needs essential resources for daily use. These are usually consumed or converted into cash in a short period. 

Some of the short-term assets for an HVAC business include:

• Tools and equipment
• HVAC equipment Inventory and supplies
• Safety gear
• Consumables
• Vehicle maintenance 
• Marketing materials
• Technology and software subscription
• Training and development
• Office supplies  

HVAC Services

There’s a range of services your business can provide to clients. The rule of thumb is to offer services tailored to meet the needs of your potential customers. 

Let’s see how you can determine the services to offer. 

Services In Alignment With Equipment and Local Demand

Providing services that align with equipment and local demand offers effective and efficient solutions. These resonate with the specific needs of your target area. Tailoring your services to advanced technology and the local area ensures optimal performance of HVAC systems and energy efficiency.

Seasonality and Frequency of Services

Seasons and frequency determine the efficiency and reliability of HVAC systems. Changes in seasons impact the demand for services. Extreme temperatures lead to a peak in demand. Routine maintenance in transitional seasons ensures optimal performance and energy efficiency. 

Emergency Services

Highlighting offering emergency services portrays commitment to providing unparalleled customer service. Readiness to address urgent HVAC issues round the clock demonstrates dedication to client satisfaction. 

The service differentiates you in a competitive market and positions your business as a reliable partner in times of need. 

Market Analysis Summary

This concise overview offers a comprehensive understanding of the HVAC industry . The summary informs readers of the market potential and business position in it. 

Components of the market analysis summary include. 

Ideal Client Profile

Your HVAC business plan should highlight the features of your ideal client. Doing this allows you to define the perfect fit for your services. An ideal client profile guides strategic decision-making, marketing efforts, and resource allocation. All your activities will meet particular needs, preferences, and pain points. 

Local Target Market Size

Highlighting the air conditioning service target audience offers data-driven insights into understanding growth opportunities. This guides decision-making, effective resource allocation, and target marketing efforts. The approach also allows for a realistic heating service market segmentation.   

Local Competition Analysis

A heating business competitive analysis offers a comprehensive understanding of the business landscape. The analysis identifies competitors, highlighting their strengths, weaknesses, and market positions. 

Scrutinizing the local competition offers valuable insights into potential challenges and opportunities. These allow for making informed decisions regarding differentiation, pricing, and marketing. 

Competitive Advantages and Differentiators

Highlighting what sets your business apart from competitors is crucial. And, how you’re planning to capture market share effectively. This demonstrates self-awareness and establishes your business’s unique value proposition. Conveying differentiators highlights strategic planning and readiness to leverage strengths for sustainable growth. 

Business Strategy

The section highlights pricing your services and the factors that influence how much to charge. Let’s see them in detail. 

HVAC Pricing

A comprehensive pricing strategy should balance various factors. These include service complexity, labor, material cost, and market demand. Evaluate the intricacy of each service while considering variables such as equipment, installation, and repair scope. Transparent and value-driven pricing ensures profitability while fostering trust and long-term relationships with clients.  

Factors Influencing Pricing 

There are several factors that determine heating service pricing models. Let’s highlight some of the most common considerations. 

• Preventive vs. repair service
• Scope of maintenance
• Complexity and size of the system
• Age and current condition of the equipment 
• Type of equipment
• Distance and service area 
• Profit goals 
• Tax and regulatory fees
•  Customer perception

Determining pricing for your services requires understanding costs, market dynamics, and business goals. Evaluating these factors allows for developing a pricing strategy for sustainable profitability and reflecting actual value. 

Implementation Summary

This section outlines air conditioning business growth strategies. It’s the roadmap for turning your business idea into a tangible and operational entity. Here are the concepts covered in the implementation summary. 

Marketing Strategies

Growing revenue with your HVAC startup business plan requires understanding how potential customers can know about your company. So, you need an effective marketing strategy to attract new clients and retain old ones. 

Here are a few ideas you can use.

• Create a mobile-friendly website
• Be active on social media platforms
• Invest in Google ads 
• Use email marketing
• Online reviews and testimonials
• Develop partnerships 
• Start a referral program
• Offer maintenance plans 

Remember that consistency is key in marketing. A well-rounded strategy should include online and offline efforts to reach a wider audience.

Sales Forecasts and Strategies

Air conditioning service sales forecasts predict revenue over a particular period. This is based on heating and cooling market trends, historical data, and projected growth. Sales strategies outline how to approach the market, attract customers, and convert leads into paying clients. 

HVAC business milestones and goals provide measurable and tangible markers of progress and achievement. They are critical checkpoints to track growth trajectory and successful completion of key objectives. They provide clarity and accountability for the business to stay on course.

Management Summary

This section has an overview of aspects regarding the management of your business. The section may highlight salary and labor costs, the number of employees and their roles, job completion rate, and minimum job cost. 

Let’s see these in detail. 

Salary and Labor Costs

Highlight salary and labor costs because they impact financial sustainability and service quality. A competitive salary attracts and retains skilled technicians. Optimizing labor efficiency through strategic scheduling and workflow management using dedicated HVAC software boosts cost-effectiveness. 

Number of Employees

The number of employees directly impacts operational capacity, service reach, and customer satisfaction. Portraying the size of your team highlights a commitment to addressing customer needs without compromising service quality. The workforce size also reflects the capacity to handle different challenges to achieve operational excellence. 

Job Completion Rate

A job completion rate is a metric for operational efficiency and customer satisfaction. Successful completion of projects reflects a commitment to meeting customer expectations. A high job completion rate shows adept project management, a skilled workforce, and streamlined processes that contribute to timely and successful job outcomes. 

Minimum Job Cost

Including the minimum job cost in a business plan for HVAC company portrays transparency, customer accessibility, and financial prudence. The approach shows the ability to cater to the needs of various clients while maintaining operational viability. Besides, it showcases a commitment to honesty and straightforwardness so clients can confidently anticipate project costs. 

Financial Plan

Time to look at the financial aspects of your business over a given period. The financial plan provides an overview of how your business expects to generate revenue, manage expenses, and ultimately achieve profitability. 

The key components include:

Balance Sheet

A balance sheet is a summary of the company’s assets, liabilities, and shareholder’s equity at a given moment. The section offers insights into the company’s financial health, solvency, and net worth. 

Sales Forecast

It’s a projection with estimates of future sales revenue your business anticipates to generate over a given period. Sales forecasting involves analyzing historical sales data, market trends, and consumer behavior to predict potential demand for your services. 

Business Ratios

Also known as financial ratios, business ratios are tools for assessing and analyzing various financial variables. The ratios provide insights into the company’s performance, financial health, efficiency, and overall management effectiveness. 

Start-up Funding

This is the capital required to launch and establish a new business. Start-up funding encompasses financial resources necessary for marketing, operations, hiring, renting office space, and furnishings. You should outline the funding source in the HVAC business plan. 

Personnel Plan

This section outlines the human resource aspect of your business. The personnel plan highlights the projected staffing needs, organizational structure, roles, and responsibilities. This section overviews the personnel required to execute the business strategy. 

Expense Budget

An expense budget outlines anticipated costs and expenditures the business expects to incur in a given period. The budget includes operating expenses and day-to-day costs to run the business. 

Break-Even Analysis

This is a financial tool for calculating the point at which a business’s total revenue equals total costs, leading to neither profit nor loss. Break-even analysis identifies the level of sales volume required to cover all fixed and variable costs. 

Projected Cash Flow and Profit & Loss

The projected cash flow outlines the expected cash inflow in the form of revenue or costs in a given period. It’s a comprehensive overview of how cash moves in the business. The profit and loss statement summarizes revenues, costs, and expenses in a business for a given period. 

To end this guide, you need to understand why to regularly update your HVAC sample business plan. Additionally, you need to value its role in the success of your venture. 

Importance of Regular Updates to the HVAC Business Plan

Here’s why you need to keep updating your HVAC business plan regularly. 

• Lenders need it to make informed decisions
• Emergence of stronger or new competition
• When starting a new financial period
• Management change in your business 
• If the old plan doesn’t reflect business values anymore
• When the business has reached a threshold
• Significant change in the market 

A robust business plan is paramount for start-up success. By following our step-by-step guide, you can lay a strong foundation for your HVAC venture. Additionally, incorporating free HVAC software for scheduling such as Field Complete will empower your business to thrive.

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HVAC Business Plan: Definition, Examples & Templates

• October 12, 2022

Starting your own HVAC business is a huge undertaking. There are business plans, startup costs, marketing plans, social media, and licenses to think about, among so much more.

This guide will help you with a key cornerstone of your business: your HVAC business plan. We will explain each section of the business plan and how it will help you grow your HVAC business. We will also address frequently asked questions and provide a template to kickstart your HVAC business plan process!

HVAC Business Plan Sections

1. executive summary.

The executive summary of your HVAC business plan is the introduction of your business. It quickly explains a few important points: the name of your HVAC business, what need or problem your business is addressing, a general overview of your HVAC services, your target market, and a snapshot of financials, such as startup costs, recurring expenses, and forecasted revenue.

This can seem like a lot of boxes to check in one to two paragraphs as a business owner. Remember to keep this section simple. The following sections will give you plenty of room to expand upon your plans for a successful HVAC business!

2. Service Offerings

The service offerings section of your HVAC business plan breaks down your service into a concrete offering. This section allows you to explain the details of your HVAC services.

Some things to consider when writing this section: the name of the HVAC service, a description, how a technician does the service, what benefits a customer receives from this service, and the cost.

3. Market Analysis

To have a successful HVAC business, it’s important to understand your competition, the current economy, and the needs of your geographic area. The market analysis section of your HVAC business plan is where you can research these factors. You will then consider how your discoveries will affect your HVAC business.

Some questions to begin understanding the HVAC market to ask yourself are:

How many competitors do I have? Which of those are my biggest competitors? What are my strengths and weaknesses? What are the strengths and weaknesses of my competition, and how do these present themselves as opportunities for me? What do the potential customers in this area need? What time of year do most people need HVAC services?

4. Business Operations

The business operations section is where your HVAC business ideas become concrete plans. This can include your policies and procedures, your office and transportation logistics, resources and suppliers, and ideal deadlines or goals.

It also includes how many employees and technicians you intend to hire, plus their wages and training plans. This would be a great opportunity to consider SkillMill from Interplay Learning.

SkillMill makes training efficient, relevant, and scalable while saving you time and effort. With 300+ hours of content and hands-on 3D simulations, it’s like having another expert on your team.

5. Marketing Plans

Marketing to the community is very important when starting an HVAC business. Use this section to strategize, rationalize, and budget for your different marketing ideas. Some marketing ideas to consider are social media, direct mail, email, billboards, radio ads, flyers, online digital ads, and more! Get creative.

6. Financial Planning

This section of your HVAC business plan is where you can precisely calculate and list startup costs, inventory, marketing costs, month-to-month expenses, prospective hires and their wages, and forecasted revenue.

Frequently Asked HVAC Questions

Still have questions about starting your HVAC business? Here are a few of the most common questions asked by new HVAC business owners.

1. What is an HVAC Business Plan?

An HVAC Business Plan is a written document that explains your business, its goals, and how it plans to accomplish those goals. The components of an HVAC business plan include the executive summary, service offerings, market analysis, business operations, marketing plans, and financial planning.

2. How do I start my own HVAC Business?

Writing an HVAC business plan is a great place to start with your business.

A business plan will help you clarify your expenses, next steps, and goals toward starting a successful HVAC business.,

Starting an HVAC also includes obtaining the proper permits, certifications, and paperwork required in your state to legally start, own, and operate an HVAC company. You can speak to an attorney or legal expert in your area to point you in the right direction. You can also visit your local bank or connect with a Certified Public Accountant to discuss financials and tax filing information.

Finally, you will want to hire technicians and implement training processes to help you service your customers. Interplay Learning’s SkillMill can help you quickly and effectively train your new technicians through integrated virtual training.

3. How do I grow my HVAC Business?

Growing your HVAC business lies in good service and good marketing.

SkillMill can help you with this. Digital training can help you start an HVAC business more quickly and efficiently compared to traditional training methods. Your new hires will learn faster, easier, and better with SkillMill.

Growing your HVAC business starts with customer satisfaction and steady, growing revenue. SkillMill relies on proven learning methodology to increase learning retention rate and get techs job-ready in weeks, not years – resulting in well-trained technicians that get it right the first time. This means less callbacks, more referrals, and increased revenue.

In your business plan, you will outline a marketing strategy to help you promote your business and connect with prospective customers. Providing good service, however, is how businesses grow by word-of-mouth. Word-of-mouth business is ideal because it doesn’t cost you anything, unlike marketing online or buying billboards. More business and fewer expenses mean higher profit margins!

4. Why do HVAC Businesses fail?

While there are many factors that could cause a business to fail, one of the biggest causes is poor service or a lack of skills.

When you have technicians that quickly and effectively perform the job right the first time, you get satisfied customers that keep coming back for more and you know referrals from them are your best source of new business. If your technicians do not provide friendly service or don’t do the job correctly the first time, customers are less likely to use you again or refer more business, which decreases your revenue and profit margins.

Training with SkillMIll ensures that your technicians get the job right the first time. You are also relieved of the task of training yourself, hiring more employees, or taking your best technicians out of the field for training.

5. Do HVAC Owners make good money?

We often see HVAC business owners achieve six-figure incomes. On the high end, contractors can see $98,586 to $461,723 per year (and you don’t even need a college degree!)

When planning your finances, experts suggest that owners set aside 5 – 6% of total revenue for their salary. Using these figures, you could set goals for how much you personally want to make as an owner and engineer your yearly revenue goals for your business! For example, if you want to make $60,000 that year, and you set aside 5% of the revenue, you would want to bring in $1.2 million in total revenue.

Grow Your HVAC Company With Interplay

Interplay Learning’s digital training platform, SkillMill , can help you as an HVAC business owner increase revenue and scale your business. What makes SkillMill different from traditional training methods is its engaging 3D simulations and immersive VR that take hands-on training and safety to the next level.

This unique platform lets you train your new hires much more quickly and efficiently than traditional training, allowing them to take to the field sooner. SkillMill also becomes another expert on your team, making training efficient, current, and scalable while saving you time and effort when making critical investments in your people. With this kind of training, new technicians can face new situations, ask questions, and apply their skills in a risk-free environment without the fear of failure.

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Schedule time with a training consultant to learn how you can make online skilled trades training faster, better, and easier.

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How to Create a Solid HVAC Business Plan [+ FREE Template]

• February 1, 2022
• Or Rozenberg
• 11 min read

What can we say? America loves staying comfortable indoors, whether that’s air conditioning at the perfect temperature in the summer or just the right about of heat to keep us toasty come wintertime.

If you’ve decided to start your own HVAC business, now is an excellent time. There continues to be an increased demand, and competition is fierce. What’s particularly great about diving into the HVAC industry is you can start as small or as big as your startup budget can provide. Part-time HVAC owners can bring in a side income with their full-time job, growing as they bring in more revenue and more long-term clients.

By proactively planning their next steps, business owners can meet their goals more efficiently, such as attracting more customers, fewer job cancellations, and an overall growth perspective. The best way to plan for your business is to have a written, formal business plan.

The importance of having a business plan in the HVAC industry

Your HVAC business plan is a formal document that you’ve created that outlines who your business is now and where you want your business to be in the future. It’s more than just sharing your goals. It’s developing a step-by-step outline of how you’re going to achieve them and what you need to get there.

As you grow your business, you can look back on your business plan as a guide to where you should focus your efforts, especially if you hit an unexpected slump. With an effective business plan, you’ll be able to expect the unexpected more quickly and take the proper measures without any wasted downtime.

Not only is your HVAC business plan a handbook of your business, but it’s also a huge asset when your company is applying for investments or funding. Investors will be able to see the map you’ve laid out and be more likely to decide in your favor. It’ll also give you an idea of just how much money you need investors to finance. The last thing you want is to ask for too little when it was probable that you could have attained more.

How to write an HVAC business plan

Some of the most successful businesses in the HVAC industry have created their in-depth, impressive business plans from a template. We’d be willing to believe that some reputable brands have started by finding a free business plan template from a reliable website like Workiz and used it to make their plan their own.

Your HVAC business plan doesn’t need to read like a resume, where there’s only one way to do it, although structured paragraphs and subheadings will make it easier to read and refer to. There are some key components you should consider including to ensure you cover every area needed to promote your business and reach your goals.

Executive summary

Business overview.

• Startup Summary
• List of HVAC services & Prices

Market analysis

Business operations.

• Marketing and Sales Plan

Financial plan

Your cover page will outline the basic information about your business. This includes your business name, address, your name, your logo, branding, etc. Think of it as an introduction to your business.

Your executive summary should only be one page that outlines what a reader can expect to see throughout the rest of your business plan. It acts as an aspect and summary highlights the key information geared toward whoever is reading your business plan. It should include the essential facts included in your business overviews, such as the history of your business and your mission statement. In many cases, you can change your executive summary depending on whether the reader is a potential investor or a member of your team.

The HVAC executive summary can include the amount of money you hope to have invested or what sets your company apart from the competition.

Your business overview will provide the foundation of your business. It will spotlight your company’s mission, values, purpose, and vision. It outlines the structure of your business and the roles of important stakeholders and key players. It also includes the legal structure of your HVAC company (sole proprietorship, partnership, or corporation). If you are a corporation, it will include your registered business name and number as well as your corporate number. Here is where you can also highlight your business goals.

Startup summary

Your Startup summary can be a key section of your business plan for potential investors. It’s crucial for business owners who are starting up from scratch and want to outline the tools and equipment they need, the costs involved, and the prices they will need to charge to break even in the first year or two. Your startup costs can include items as simple as uniforms to large capital assets such as a truck.

List of HVAC services & prices

Under this section, you will list the services your HVAC company provides. Before creating this list, you will likely have researched the industry, gotten an idea of what your competitors are doing, and found some gaps your business can fill. You can also outline the price of each service, whether it’s hourly or by the job, etc.

Your market analysis should include a detailed description of who your customers are and their needs and demographics. If you haven’t had the opportunity to provide your services to customers yet, that’s okay. In this area, it’s more about the research you’ve done to get an idea of how you want to position yourself in the market. For example, you will list the age, gender, income, area of a particular city, etc. What makes this audience unique, and what makes up their needs and wants?

You can also outline who your competitors are in this section. What services are they providing that you aren’t? What type of customers are they attracting? How large is their team, and are they charging similar prices for their services? This area, of course, will change as you and your competitors change.

This section dives deeper into the “how” of your business. It will outline what equipment you own or rent, the software, and hardware, such as laptops and smartphones, and the applications downloaded onto them, as well as the administrative side of your business. You can list your employee roles (including your own), salaries, invoice processes, tax processes, and more.

Don’t leave gaps, as the more information you provide in this section, the more legitimate your business will be to investors. It proves you’ve put in all the work necessary and are serious about your brand’s growth.

Other sections you may choose to include are both your short-term and long-term assets.

Marketing and sales plan

Typically your marketing plan is separate from your business plan. In this section, however, you can outline a few strategies you have in mind to start bringing in new customers. You can also outline your sales funnel and the steps your potential customers will take to acquire your services. Much of your marketing and sales plan can include your focus on building a landing page or website and developing a base following on local social media.

Your financial plan is the most vital component of your HVAC business plan, especially if you’re not already bridging in a supportable revenue stream. This section should include what assets you already have, the debt you already owe, and any projected income you are relying on receiving in the near future (think expenses, revenue, outstanding invoices, bank funding, etc.) It would be best to outline your financial goals in as much detail as possible and why. Provide a budget for the next few years based on your sales forecast.

Your summary should be simple. Give a brief overview of what was just covered without repeating everything said. You should also retake this opportunity to achieve your “ask.” If a potential investor is reading, you want to make it as straightforward as possible how you want their help. Sometimes investors will offer to review your business plan solely to get an idea of who you are and what your business goals will be. If you don’t include the fact that you’re open to investors, they could simply say “looks good” and move on to another project.

Click here to download our free HVAC business plan template, including critical elements you’ll need to maximize the success of your business. Simply go to the three dots icon on the right upper bar menu and hit “Download” to print the file and fill it in.

Final thoughts

It’s important to remember that you don’t need to get swamped by the idea of perfection. If your business is brand new, your plan will likely need only contain the basics. As you grow and get an idea of where your business is heading, that’s when you can adapt and change your HVAC business plan to meet the needs of your clients and your business.

The HVAC industry isn’t disappearing as long as we need homes to live in. Building a business plan that can act as a handbook to success curated by yours truly can truly help you stand out from your competitors, bring in new clients, and reduce the risk of cancellations. It’s one of the many tools you should have with you as you dive into life as a business owner.

What are some other handy tools entrepreneurs in the HVAC industry can utilize? You can power your business with the integrations available from Workiz . Manage everything from one platform and allow yourself more time to focus on what really matters. HVAC teams using Workiz increase their revenue by 22% on average . Reach out for a conversation today.

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How to Create the Best HVAC Business Plan

Did you know that all you need is one document to build a solid HVAC business? For long-lasting success, the number one resource you’ll need is a robust HVAC business plan.

Despite what you might think, a great HVAC plan isn’t as complicated as it seems.

Use the HVAC business plan outlined in this article to simplify the process and start creating your own plan today!

How the Best HVAC Business Plan Builds a Foundation for Success

Before we dive in on the process for building out an HVAC business plan, let’s talk about how it’s going to help your heating and cooling business.

An HVAC business plan is VITAL to the growth and success of your business.

Use your new business plan to help you:

• Stay organized
• Prepare for unexpected events
• Establish and stay focused on clear, achievable goals

Also, it’s important to keep in mind that your HVAC plan is NOT a one-and-done document. It’s critical that you always know what’s going on in your business by regularly updating it with monthly financial revisions and yearly complete revisions. This will allow your business plan to grow with you! 

1. Cover Page

Your cover page is a concise cover letter that introduces your HVAC business, which is why your business plan should resemble a professional booklet.

Your cover page gives readers (namely new employees and financial professionals) a quick overview of your management and contact structure, which helps streamline the training process .

Plus, if you apply for any grants or loans, the cover page gives the financial institution a quick reference point for contact information.

These are a few essentials you should include in your cover page:

• Business name
• Contact information
• Business address (if any)
• Any key stakeholders (and their roles) in your HVAC business

2. Executive Summary

Your executive summary provides a brief synopsis of your entire HVAC business plan.

Use the summary to help formalize the main concepts in your business by establishing concrete, clear and achievable goals to scale your HVAC business for growth.

Be sure to include these essential elements in your executive summary:

• Company history
• Mission statement
• Business goals and objectives
• Competitive advantages (your keys to success)

3. Business Overview

Your business overview provides basic information about everyday functions as well as the operational structure of your HVAC business.

This section allows new people entering your business (i.e. new employees or third-party financial advisors) to instantly see how your business operates.

Company Summary

Your company summary is a brief summary of your vision for your HVAC business. Take advantage of your company summary to give readers an understanding of where you HVAC business will go.

A company summary may also help you create a picture of what your ideal HVAC client looks like.

Include these elements in your company summary:

• What types of HVAC services will/are you offering?
• Are you offering services for residential HVAC, commercial HVAC, or both?
• For example, your residential customers will likely need scheduled maintenance once or twice a year, while commercial customers are more likely to need quarterly check-ins.

Just by answering the questions listed above, you’ll have a complete executive summary. However, each HVAC business is different, so you might find that you need to include additional information.

Company Ownership

Your company ownership states which business entity you’re registered as (i.e. partnership, corporation, sole proprietorship, etc… ). This is important due to  tax implications.

It’s important to establish your business as a separate entity in order to protect yourself from being personally liable for your business. So it’s important to state your ownership status  in your HVAC business plan.

Also, if you haven’t already registered your business, be sure to check out our guide on starting an HVAC business .

Start-Up Summary

The start-up summary is used to determine the value of your HVAC business by evaluating your start-up costs and assets, which are great predictors of success. If you ever seek grants or loans, this is one of the most important sections financial institutions review.

For established HVAC businesses that aren’t start-ups, this section will include your business expenses and assets.

Start-Up Costs

Your start-up cost is the amount of money you need to spend on equipment and materials in order to start your HVAC business . Your start-up cost summary helps as you’re looking for outside investors and loans. It can also help you develop a financial plan!

Your start-up costs help you to determine where to set your HVAC pricing in order to maximize your profits. To start, include estimated start-up costs in your overhead costs.

However, if you already own some equipment and materials to start your business, don’t include them here. Only include the things you need to purchase in this section.

Your start up costs may include: 

• Inventory costs
• HVAC uniforms
• Office supplies
• HVAC equipment
• HVAC business software
• Facility/warehouse rent and upkeep
• Capital to pay your employees (if any)
• Marketing expenses (i.e. your website, ads, etc… )

Once you’ve added up how much everything will cost you to get started, you’ll have a better idea of your business’ financial needs. While estimating costs may be tedious, HVAC business owners who skip their start-up cost summary will likely drastically cut themselves short or prices and lose profits.

Don’t wait, improve prospecting and business operations with FieldEdge ! Book your free demo today!

Long-Term Assets

Your long-term assets contribute to your HVAC business in the long-term. Essentially, your long-term assets include anything you already own that doesn’t need to regularly be replaced.

Since your long-term assets show how much your business is worth, it’s a major predictor of your HVAC business’ success. Financial institutions pay particularly close attention to this section when evaluating grant or loan applications.

Here are a few examples of some long-term assets:

• Larger equipment

As you add your long-term assets to your HVAC plan, be sure to be as specific and detailed as possible. Include the make, year, model, cost, and any other pertinent information about your long-term assets.

Short-Term Assets

In contrast to long-term assets, your short-term assets need to be regularly replaced.

These are a few examples of short-term assets:

• Storage expenses

The more short-term assets you own, the less overhead you’ll have. In other words, you’ll have more revenue you can put towards your bottom line.

Pro Tip! Be sure to include ALL of your short-term assets – no matter how tedious it is. Use this as an opportunity to prioritize the importance of actively tracking your inventory .

4. HVAC Services

Use the costs you outlined in the previous steps to help you expand on the HVAC services you can offer.

Ensure that the  HVAC services you offer are in alignment with:

• HVAC equipment : what you can afford
• Area: what services are in high demand locally

Be sure to specify the seasonality and frequency for each of your services in your HVAC services summary. Also, be sure to label any one-time or emergency services you offer.

5. Market Analysis Summary

Your market analysis summary talks about your ideal client in detail, which helps you to sell more effectively to them.

In this section, you’ll pinpoint your ideal client’s needs, and how you’re going to meet those needs. Plus, you’ll identify some industry trends that can help optimize your marketing .

Use your market analysis summary to improve your sales skills and grow your HVAC business by getting to know your target market and local competition.

Answer these questions to complete your market analysis summary:

• Define their age, income, and socioeconomic status
• Identify their wants and desires (what they care most about)
• Find out the local target market size (how many locals live/work here?)
• HVAC services
• Offerings that  are similar to yours
• Business sizes (number of HVAC technicians, company size, etc… )
• Why might your ideal clients choose your competitors over you?
• How can you make it to where your ideal clients will hire YOU over your competitors?

Be as detailed as you need in this part of your business plan. After all, the more detailed you are, the better you know your clients and can sell more effectively.

6. Business Strategy

All of the legwork you’ve done in the previous sections of your HVAC plan has prepared you for creating a business strategy. In this section, you’ll take everything you’ve already written and tie it together.

Use your business strategy to help you explore the best HVAC pricing structure for you. The main goal of this section is to identify ways to maximize your profits and build the most successful air heating and cooling business possible.

HVAC Pricing

If you want to build a successful, scalable HVAC business, then you have to know how to use pricing to maximize your profits.

As you explore how much to charge for your HVAC services, consider aspects like:

• Profit goals
• Taxes and fees
• HVAC software cost
• Overhead and HVAC equipment cost
• Hourly rate (including employee pay)

While the elements listed above are a great place to start, these are just a few of the many factors you need to take into account for pricing. Be sure to work with your business’ financial advisor and/or accountant when determining prices!

7. Implementation Summary

Your implementation summary uses everything you’ve learned to outline how you’re going to effectively implement the right HVAC marketing and sales strategies to get HVAC customers and reach your goals.

Depending on your overhead costs and HVAC pricing, you’ll be able to calculate how many HVAC customers you need to be profitable. Next, you’ll have to explain how you’re going to win those customers.

In addition to word of mouth, consider taking advantage of marketing platforms to help increase awareness of your business. Take a look at a few basic marketing strategies to get your started:

• Facebook Ads
• Passing out HVAC flyers to neighboring homes of job sites (e.g. 9-arounds)

Get more in-depth tips by reading our free HVAC marketing guide.

In addition to marketing, make sure you also include sales forecasts and sales strategies in your summary as well as listing any milestones and competitive advantages.

Your implementation summary will help you strategize how to reach your ideal customers. In turn, you’ll establish an effective plan to help you conquer (and surpass!) all of your goals.

Surpass your goals using this FREE HVAC social media posting guide for the summer!

8. Management Summary

Typically, in the field services industry, labor takes up about 30% of your annual revenue costs. Considering how other industries have about 20% in labor costs, this number is considered high.

Since your labor costs make up a heavy portion of your business, it’s important that it gets its own section of your HVAC business plan to lay it out in full detail.

Your management summary helps you to control your labor costs by streamlining day to day business operations and optimizing time management practices.

Need help managing operations and time? FieldEdge is an HVAC software that automates and tracks these areas and more.

Here are a few essentials to include in your management summary:

• Your salary
• Labor costs and employee pay
• Number of employees needed to reach your goals
• How many jobs you can realistically finish in a day (especially if you’re flying solo)
• What’s the minimum job cost/rate that will allow you to reach your profit goals?

If you’re just starting your HVAC business , you may not have enough clients to hire HVAC technicians . However, don’t feel discouraged. It’s normal for new businesses to fly solo for a few years as they gain additional HVAC customers .

When you begin feeling exhausted and overworked, then you know it might be time to start the hiring process . However, if you’re ready to start hiring but you don’t have the budget, then it’s time to raise your HVAC pricing.

9. Financial Plan

Your financial plan helps you to plan ahead and scale your HVAC business for growth. In turn, you’ll have a full scope of the financial state of your HVAC business and its profitability.

Since the financial plan usually takes the longest to evaluate, many business owners are tempted to rush through this section – sometimes even skipping it altogether. However, businesses that skip their financial plan are more likely to go bankrupt.

Your finances are the lifeblood of your business. If you focus on any portion of your HVAC business plan, then let it be this one .

As you create your financial plan, it’s in your best interest to meet with a trusted financial advisor throughout the process, especially before you finalize it. Your financial advisor will identify any profit holes and will help you to evaluate any potential concerns.

Even though hiring a financial advisor might set you back a bit in your budget, it’s arguably the most important key to building a successful HVAC business. After all, your finances have little room for error and will make or break your HVAC business.

These are a few elements you can include in your HVAC financial plan:

• Balance sheet
• Sales forecast
• Sales Strategies
• Business ratios
• Start-up funding
• Personnel plan
• Expense budget
• Break-even analysis
• Projected cash flow
• Projected profit and loss

The elements listed above in bold are required, while the rest can help you have the best grasp on your finances. Even though not everything in this list will apply to your business, it’s an important start in creating a great HVAC business plan.

Use Your HVAC Business Plan to Build a Wildly Successful and Scalable Business

At last, you have a complete outline with everything you need to create the perfect HVAC business plan.

• Executive Summary
• Business Overview
• HVAC Services
• Market Analysis Summary
• Business Strategy
• Implementation Summary
• Management Summary
• Financial Plan

Whether you’re a new or established heating and cooling business, it’s never too late to start utilizing the power of a great HVAC business plan.

And always remember, your HVAC plan MUST be updated on a regular basis. Make sure you plan time for monthly financial revisions and yearly complete revisions.

Use this outline to start creating an HVAC business plan to build a wildly successful and scalable air conditioning business!

Related: Gain Loyal Customers Through HVAC Maintenance Contracts

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HVAC Company Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their HVAC companies. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a HVAC company business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a HVAC Company Business Plan?

A business plan provides a snapshot of your HVAC company business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for an HVAC Company

If you’re looking to start a HVAC company business, or grow your existing HVAC company business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your HVAC company business in order to improve your chances of success. Your HVAC company business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for HVAC Company Businesses

With regards to funding, the main sources of funding for a HVAC company business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for HVAC companies.

Finish Your Business Plan Today!

If you want to start a HVAC company or expand your current one, you need a business plan. Below are links to each section of your HVAC company business plan template:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of HVAC company business you are operating and the status. For example, are you a startup, do you have a HVAC company business that you would like to grow, or are you operating HVAC companies in multiple markets?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the HVAC company industry. Discuss the type of HVAC company business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of HVAC company you are operating.

For example, you might operate one of the following types of HVAC company businesses:

• Residential HVAC company : this type of HVAC company specializes in providing air conditioning and heating units and servicing for residential properties.
• Commercial HVAC company: this type of HVAC company specializes in providing air conditioning and heating units and servicing for commercial properties, such as restaurants, retail, grocery stores, and gyms.
• Industrial Company: this type of HVAC company specializes in providing air conditioning and heating units and servicing for industrial properties, such as warehouses.

In addition to explaining the type of HVAC company business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of clients served, number of positive reviews, reaching X amount of clients served, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the HVAC company industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the HVAC company industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your HVAC company business plan:

• How big is the HVAC company industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your HVAC company business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your HVAC company business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: families and households, businesses, and schools.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of HVAC company business you operate. Clearly, schools would respond to different marketing promotions than households, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other HVAC companies. 

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes construction companies, home developers, and retail stores that specialize in heating and cooling equipment.

With regards to direct competition, you want to describe the other HVAC companies with which you compete. Most likely, your direct competitors will be HVAC company businesses located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of heating and cooling units do they provide?
• What areas do they serve?
• What type of HVAC company are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Are your heating and cooling units more capable than the competition’s?
• Will you provide HVAC services that your competitors don’t offer?
• Will you provide faster delivery and installation time?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a HVAC company business plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of HVAC company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to HVAC company services, will you provide biannual maintenance, cost comparisons, preventive maintenance, and any other services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your HVAC company. Document your location and mention how the location will impact your success. For example, is your HVAC company business located near a warehouse district, an office complex, an urban setting, or a busy neighborhood, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your HVAC company marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Commercials
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your HVAC company business, including dispatching your technicians to their assigned locations for the day, fueling the vehicles, scheduling services, and informing clients of location and status updates.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to obtain your XXth client, or when you hope to reach $X in revenue. It could also be when you expect to expand your HVAC company to a new location.  

Management Team

To demonstrate your HVAC company business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally you and/or your team members have direct experience in managing HVAC companies. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a HVAC company or are connected to a wide network of professional associations.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you take on one new client at a time or multiple new clients with multiple vehicles and technicians ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your HVAC company business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a HVAC company business:

• Cost of vehicles and equipment
• Cost of fuel, supplies, and HVAC company overhead
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your HVAC vehicles cost, types of clients you will be targeting, and the areas your HVAC company business will serve.  

HVAC Business Plan Template PDF

You can download our HVAC business plan PDF to help you get started on your own business plan.  

Putting together a business plan for your HVAC company business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the HVAC company industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful HVAC company business.  

Don’t you wish there was a faster, easier way to finish your HVAC business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how a Growthink business plan consultant can create your business plan for you.

Other Helpful Business Plan Articles & Templates

How to Write an HVAC Business Plan: Free Template for 2023

Plan for Success with Your New HVAC Business

An HVAC business plan is a document outlining your company goals, services, revenue projections, marketing strategy, customer profiles, expected costs, & more.

• Outlining where your company exists in the present day and where you plan to be in five years allows you to create a benchmark and goals to work towards.
• Not only does this help you grow your HVAC (Heating, Ventilation, and Air Conditioning) business more effectively, but it allows you to share your business plan with loan providers or investors if there comes a time that you’re looking for additional funding or resources.

Enter your email below to download a free HVAC business plan PDF sample

What to Include in an HVAC Business Plan

Although no two business plans will ever be identical, certain elements should be considered. If a particular section doesn’t align with your company goals, there isn’t a reason for you to force it in.

Similarly, if the example templates you use don’t include a section you’d like to feel, know that you have complete control over what goes in your business plan — it’s your HVAC company, after all! To help you get started drafting a comprehensive business plan, consider including the following sections:

1. Executive Summary

First and foremost, you’ll want to include an executive summary at the beginning of your HVAC business plan.

This quick summary gives a high-level overview of your company’s history, mission statement, executive team, employees, location(s), financial and growth goals, and other basic details that describe who your company is — and what makes it stand out from similar companies in the same market.

2. Company Description

Think about your HVAC company and why you started it in the first place. What was your reason for starting it — what problems were you trying to solve for your customers?

Are you hoping to provide the most affordable air conditioning services? Or are you looking to provide the highest quality heating service with unmatched customer service?

This section outlines what problems you aim to solve for your customers, the training and certifications held by your team, and what differentiates you from the competition.

Use this section as a way to highlight all the reasons why your company is the best heating and air conditioning company serving your local market.

3. Market Analysis

Breaking into any market is tough, but there are a lot of other HVAC companies out there. Do you know how your company stacks up against them? Take the time to perform a market analysis to better understand your competitor’s strengths and weaknesses.

Do they have a limited-service menu, or do they offer a wide range of services covering residential and commercial markets?

By mapping out gaps in their business plans or learning where they are succeeding, you can better navigate the market and determine where your HVAC company can outshine the others.

4. Organizational Structure

No matter how big or small your company is, there is some form of organizational structure. Outline the company structure and list who is in charge of the different business sectors with the corresponding leadership team and employees below them.

Although this section might change as you add or remove members of the team, it’s an important section to include if you plan to get additional funding or investment.

5. HVAC Services

Is there a particular portion of the market your company plans to capitalize on? Or will your HVAC company offer air conditioning, heating, and ventilation services to both residential and commercial properties?

Do you work on HVAC rooftop units? Will you also dabble in water heater repair and whole-home dehumidifier installation? Does your HVAC company provide products like smart thermostats?

If particular types of jobs have high-profit margins, you may want to emphasize these. If there is a service where you lose money, it might be worth cutting it from your service offerings once you’re bringing enough customers in.

Define your service offerings and outline how they will benefit your target audience.

6. Marketing Plan

Although your HVAC marketing strategy may change throughout the year depending on how you track your annual goals, you should include a high-level overview of your strategy in this section.

What is your plan to drive new business? Once a lead converts into a sale, what is your plan to keep them as a recurring customer? How do you plan to stay top of mind with your existing customers? Are there particular channels where you plan to advertise your business?

Outline all of the questions above and include information about if you plan to invest in digital marketing, such as search engine optimization, social media promotions, and HVAC Facebook ads, or if you plan to rely on direct mailers, radio ads, and television commercials.

There is no right or wrong answer to the marketing strategies you want to use — but this is where the market analysis mentioned above can help! You want to ensure you’re on all channels your competitors are and increase your visibility in areas they might be missing.

7. Funding Request

Depending on your HVAC company’s growth goals, you may need additional funding to help you achieve them.

If your purpose for the business plan is to provide a company background to investors, use this section to explain what funding you’re requesting and how the funds will be dispersed and used — allowing them to see exactly where every dollar they’re providing is going.

8. Financial Projections

At the end of the day, a company’s success comes down to its profits and revenue. In the financial projections section, you should clearly demonstrate where your HVAC company stands currently.

To do this, include bank statements, income statements, cash flow statements, and loan information from the last few years to help show your company’s profitability. If your HVAC company is new, you may not have much to include in this section.

Along with showing where your company is now, you want to include a financial projection for where you expect the company to be financially five years from now.

Use this projection to create annual goals you and your team can work towards. When applicable, breaking up the annual goals into quarterly helps you track them more closely (and successfully).

9. Appendix

To conclude your HVAC business plan, you will add any supporting materials to the appendix. This may include resumes for your management teams, licenses, certifications, bank statements, or other supporting documents that help paint your company’s picture.

Example of an HVAC Business Plan PDF

You can open or download our free HVAC business plan PDF below:

You can get an editable version emailed to you by entering your email below:

Does My HVAC Company Need a Business Plan?

Yes, while not mandatory to venture into the HVAC trade , it is recommended that any startup company create a business plan. Starting a new HVAC business can be a fun venture, but that doesn’t mean you won’t deal with countless headaches or challenges along the way. Creating a solid business plan equips you with a strategy for your business from day one.

Along with keeping you on track and pacing towards your growth goals, a business plan becomes a valuable tool that your team can use to show yourself, employees, and investors that you are running a strategic HVAC company with high profit margins . An HVAC business plan provides you with the following benefits:

Business Growth

As a business owner, your top priority is running a successful HVAC company that makes good money . But to do that, you need to put in some work upfront — including putting together a strategic business plan laying out your business goals.

While your goals may change over time, and that’s perfectly alright, it’s important that you give yourself and your team goals to work towards to help you achieve the growth you crave.

You’ll accelerate your growth by setting your goals and having a clear timeframe.

The visibility makes how you’re tracking towards goals more apparent and will light a fire behind you if you realize you aren’t pacing to reach this quarter’s set benchmark. Setting aside time to create your HVAC business plan will provide you with the roadmap for success.

Where do you see your HVAC company in five years? In 10 years? Those goals might not be financially possible, depending on how much revenue you bring in. In certain instances, you may consider looking for outside funding to help you grow your new business venture.

A solid business plan provides you with a document you can present to loan providers and potential investors to clearly state where you stand, where you expect to go, and your plan for getting there.

Without all these details clearly laid out, no investor will feel comfortable betting on you or your HVAC company.

Business Decisions

Being the boss is a rewarding experience, but it also comes with its fair share of challenges. It also means that when there are tough decisions to be made that impact the entire company, you’re the one who has the final say.

To make sound decisions, you need to have complete visibility into the health of your HVAC company and a thorough understanding of how you’re pacing against your growth and profit goals.

A business plan allows you to have a pulse on your HVAC company and use the provided information and data to make informed decisions that benefit your business.

Frequently Asked Questions

What are the benefits of writing a business plan for an hvac company.

The benefits of a business plan for HVAC contractors include growth planning, loan requests, and business decision-making.

What is the best way to start writing an HVAC business plan? 

The best way to start writing your HVAC business plan is by outlining the structure. This includes writing introductory content that covers your services, your target audience, and why potential customers should choose your business. After the introduction, focus on detailing your market analysis, operational strategy, financial projections, and other details vital for your business’s success.

Written by George Leon

George Leon is a Managing Partner at Scalebloom. He used to be a partner at a painting company in Charlotte NC. George loves to help business owners scale their business with modern marketing strategies and branding.

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How to Start an HVAC Business – Here are 9 Beneficial Steps

• By Rakesh Patel
• Last Updated: December 7, 2022

• Starting an HVAC business requires obtaining the necessary licenses and certifications, as well as investing in tools and equipment.
• Investing in ongoing training and education for technicians, as well as adopting new technologies and best practices, can improve efficiency and quality of service.
• Providing exceptional customer service, including timely responses to inquiries and transparent pricing and billing practices, can build a positive reputation and generate repeat business.
• Staying informed about industry trends and regulations, such as changes in energy efficiency standards and environmental policies, can help you stay competitive.

If there is a business field with plenty of jobs all around the globe, good compensation, and recession-proof, it has to be the HVAC sector. It is one of the most rapidly growing sectors whose demand is ever-increasing.

There were 103,359 plumbing and HVAC contractor companies in the US as of 2019, with 500 employees. The global heating, venting, and conditioning market is expected to be 288 billion USD . California has the highest number of jobs in the HVAC sector, three times higher than Pennsylvania.

All these substantiate that it is a sector that has a high employment rate and a great expanding capacity. It is one of the businesses which is truly universal.

To help you excel in your business, in this article, we have shared 9 beneficial steps on how to start your HVAC business . So without further ado, let’s get started. 

Table of Content

• 9 Steps to Start an HVAC Business

Benefits of Starting an HVAC Business

• Get the best routes from Upper for your HVAC services

9 Beneficial Steps to Start an HVAC Business

An HVAC business can be very profitable if managed well. So, here are the 9 beneficial steps that can help you get off the mark in your new venture.

Short on time? Skip ahead:

• Create a growth-oriented HVAC business plan
• Evaluate HVAC business startup costs
• Study your market and make a list of the services
• Set prices that cover your expenditures
• Build an HVAC business marketing strategy
• Hire a team of HVAC technicians
• Monitoring your expenses
• Reach out to your customers
• Make use of advanced technology

1. Create a growth-oriented HVAC business plan 

Any successful HVAC company is built on a solid business plan. You’ll need to create an HVAC business plan defining the following terms in that document:

• Market analysis
• Marketing plan
• Executive summary
• Business structure
• Financial obligations
• Revenue projections, and so on 

Making an HVAC business strategy will keep you focused and may enable you to obtain startup financing from banks or other lenders. Apart from that, you also need to choose a business name and register it with the local government.

Another important component of a business structure is market research, which is necessary to assess the viability of your HVAC operation. You must know the number of competing HVAC companies in your service area, the number of homes and franchises you will compete with, the prices your rivals charge, and other information.

Additionally, it would be best if you chose your service area, the driving distance you are willing to travel to a job site, and the working environment. You must also work only during regular business hours or offer emergency repair services.

2. Evaluate HVAC business startup costs

The start-up cost of opening an HVAC company is costly, and failing to keep track of all business expenses is one of the most costly mistakes you can make. Hence, you need to have a separate bank account to manage your business transactions.

The average HVAC startup cost ranges from $2,000 to $10,000 , assuming you buy a used service van or truck and try to keep your equipment costs low. However, if you buy everything at once, the cost could easily exceed $100,000.

Here is the list of things you’ll need to run your HVAC business:

• Marketing materials, such as business cards and door tags to verify service with contact information
• Basic HVAC tools used for sheet metal work, such as aviators or tin snips, drive benders or folding bars, shears, staple guns, crimpers, etc. 
• HVAC contractor license
• HVAC tools for air conditioning service and maintenance work
• Uniforms and caps with the company’s logo
• Vehicle signage
• HVAC business website 
• A service truck or van large enough to carry all your tools and equipment
• HVAC business insurance- Workers compensation insurance and Liability insurance
• Available tools include an electrical tester, tape measures, battery-powered drill, sawzall, etc.
• Safety equipment

3. Study your market and make a list of the services 

Decide what HVAC services you want to offer so you can buy the necessary equipment and begin pricing. The most common HVAC repair, installation, and maintenance services you can provide are as follows:

• Furnace tune-up and maintenance
• Air conditioning tune-up and maintenance
• Heat pump installation
• Repairing air conditioning units 
• Air conditioning installation
• Air duct cleaning
• Tankless water heater installation
• Emergency HVAC service
• Furnace installation

Offering services in which you are skilled and enjoy performing will make your job more rewarding.

4. Set prices that cover your expenditures

If they want to have a successful HVAC business, business owners should set a price that covers all costs while ensuring business success. Additionally, reducing profit margins during the off-season may alleviate cash flow issues. 

Here’s how to get started with HVAC job pricing:

• Analyze your rivals in the HVAC service industry to find out what the going rates are in your area.
• Establish the markup needed to achieve your desired profit margins.
• Determine what additional services you can provide to increase your overall quote prices

You can use the following pricing techniques for HVAC jobs:

Hourly rate pricing model-

Hourly rates can make it easier for you to make more money when working on time-consuming or commercial HVAC contracts. This pricing strategy is helpful when you don’t know how long the project will take.

Flat rate pricing model-

You can determine a single, fixed price for the entire project using flat-rate pricing. This pricing strategy works well for your HVAC business when you know how long the job will take; for instance, $300 for air conditioning service.

Labor and materials pricing model-

It’s preferable to charge clients for installations based on the amount of labor you provide and the tools you use in general. This pricing strategy makes recovering your operating costs simpler.

Once you have decided on your service prices, create an HVAC pricing chart that breaks down your service costs at flat rates or hourly rates. By using a pricing chart, you can quickly and easily give customers accurate HVAC estimates.

5. Build an HVAC business marketing strategy

To keep your small business running smoothly, you’ll need an effective marketing strategy for your HVAC business to bring in new customers while retaining existing ones. Word-of-mouth referrals play an important role. Word-of-mouth is the most effective way to build trust and reputation for your company.

Reaching out to potential clients unfamiliar with your company will involve using social media advertising and an SEO strategy. Email marketing is another excellent tool for business promotion. With email marketing, you can keep your customers updated on company news and send appointment and service renewal reminders.

Branding your HVAC logo on vehicles, t-shirts, uniforms, and all other marketing materials is a professional perk for your HVAC company. The more you can set yourself apart from the competition, the more likely you will gain a loyal customer base.

6. Hire a team of HVAC technicians

It’s time to hire a certified HVAC technician when your workload becomes too much for you to handle alone.

By employing HVAC technicians to handle fieldwork, you can devote more time to sales, planning, brand management, and other aspects of managing and expanding your new company.

Here are some recommendations for finding and picking knowledgeable HVAC professionals:

• Decide whether you want to employ employees or HVAC contractors and subcontractors.
• A great job description for HVAC contractors should be written and posted on job-search websites.
• Prepare some questions to ask a heating and cooling contractor before hiring them.
• After hiring your staff, get ready to train them.
• Pay your staff well and foster a positive work environment.

7. Monitoring your expenses

For starting an HVAC business, you also need to keep track of each expense. The fact that you currently have the most competitive prices does not guarantee that you will continue to do so.

As you assess your expenses, look for ways to cut costs. You can do this by purchasing supplies in bulk, obtaining manufacturer discounts for parts, or signing up for loyalty programs. You can also save money on fuel and other expenses.

For example, you can set up an overdraft facility with your bank. The overdraft facility will cover employee bills or advances if insufficient funds are in the business account.

8. Reach out to your customers

If you wait for customers to contact you, you will miss the opportunity to develop repeat business. Contacting current customers and informing them about a service is another way to increase profitability. 

Consider scheduling service calls with previous customers to suggest a furnace check-up before winter, which they may have yet to consider. Ensure that you care about their safety and comfort and are willing to assist.

9. Make use of advanced technology

Today, technology is essential to almost every industry, and the HVAC sector is no exception.  Don’t be hesitant to use technology to assist you in achieving your business objectives and creating brand awareness. You can create a business page or Google My Business profile to mark the presence of your HVAC services online. 

Technology has improved almost every aspect of HVAC, from the onboard sensors and computerized components of AC units to the routing software, such as the Upper Route Planner, that directs technicians from job to job.

Let Upper Help You Manage HVAC Services

Starting a new HVAC business is easier when you have an advanced route planner for managing HVAC services. Get Upper to find the best routes for your client appointments.

Let’s look at the top benefits of starting an HVAC business.

1. Easy to start up

Starting an HVAC business is relatively easier than starting other businesses. It requires little more than a business license—that is, an HVAC trade license—a phone, and your offered skills and expertise to get up and running. This not only makes it easier but also more affordable to get started.

2. No inventory

Starting an HVAC business doesn’t require a built-up reserve of inventory that needs to be stored in an expensive warehouse. You’ll only need the equipment and your skills to perform your offered services, so no warehouse full of inventory is required.

3. HVAC businesses are recession resilient

When the economy suffers, people will still need to repair their heating when it breaks. So, working in the HVAC industry, on the other hand, will help you keep your job and generate revenue even during economic downturns. 

4. You are your own boss

You are your boss as a business owner. You have the freedom to make critical decisions the way you want for your own HVAC business. When you are your own boss, you have a unique opportunity to shape your days the way you want. You can pick and choose what interests you and focus on what makes you happy.

5. High Lifetime Value (LTV)

On average, HVAC systems are replaced every 12 years, costing each unit $12,000. During that time, HVAC businesses will most likely provide some service, either through repairs or routine maintenance. The LTV of an HVAC company is frequently greater than $1,000 per customer per year.

Get the Best Routes from Upper for Your HVAC Services 

To excel in a fast-growing business, you need an organized and well-structured plan to cater to the requests of a large number of customers. Upper can help you reach this level of efficiency comfortably, without any hassle, with state-of-the-art features.

For example, let’s say you have 30 jobs to be done in a day with the help of 5 technicians. Without proper planning, these technicians will be running around all over town but still may fail to cater to all the jobs. With every job that gets postponed or lost, you lose money. 

Here is where Upper comes in to help you out. Upper’s powerful and intelligent route planning algorithm will help create an efficient route and divide the routes among the technicians so that all the technicians can cater to all the jobs. Here’s how Upper and your competitive advantage can assist you in increasing your revenue and profits.

Route optimization

Uppers’ intelligent route planning and optimization algorithm for HVAC will create routes for all the separate technicians or drivers. This will not only help you cut costs but also ensure that the possible number of jobs are done. You can optimize these stops by time or distance and add urgency for priority deliveries. It will help you to save money.

Proof of delivery

This feature will help you to take all the proofs digitally. The customer signature and images can be captured and stored in the software, so they are never lost. This can also be retrieved at any time. This will help you to boost the customer experience as well.

One-click dispatch

This feature can help you send the optimized routes with just a single click. It also has a feature to reassign any job or delivery. It simplifies duties and improves overall operational efficiency.

Upper Route Planner

A simple-to-use route planner that every one is talking about

The NATE certification is one of the best HVAC certifications that is both the most popular and well-known. NATE stands for North American Technician Excellence. It is an organization that concentrates on certifying and testing HVAC technicians.

These are the four primary categories of HVAC systems. There are split systems, ductless systems, hybrid systems, and packaged heating and air systems. Each of these HVAC units has advantages and disadvantages, and understanding them can help you decide which is best for you.

An annual maintenance visit for an HVAC tune-up typically costs between $75 and $200, depending on the contractor. If extensive repairs are required, you may be required to pay up to $2,000-$3,000 for the most complex parts.

HVAC is an expanding sector where, with the help of the right market strategy, business model, and efficient tools, you can make great profits. Study the strategies used by your competitors, and don’t be afraid to take calculated risks. All you must do is create a realistic business plan and plan ahead of time.

We at Upper understand that businesses have multiple challenges. To reduce your stress, we have come up with state-of-the-art software so you can plan and execute the delivery process hassle-free and focus more on increasing revenue and expanding your business.

Rakesh Patel, author of two defining books on reverse geotagging, is a trusted authority in routing and logistics. His innovative solutions at Upper Route Planner have simplified logistics for businesses across the board. A thought leader in the field, Rakesh's insights are shaping the future of modern-day logistics, making him your go-to expert for all things route optimization. Read more.

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Business Plan for an HVAC Company: How to Write One and Keep It Fresh

• by Sonya Stinson Sonya Stinson is a New ... more
• March 19, 2019
• 11  Minute Read
• Home > Blog > Financial Health > Business Plan for an HVAC Company: How to Write One and Keep It Fresh

When you’re running an HVAC company, you’re on board for all the ups and downs that come with owning a high-demand, seasonal business. A carefully crafted business plan for an HVAC company is the first step to manage those peaks and lulls so your profits stay healthy year-round. If you didn’t create a heating and cooling business plan when you started your business, it’s not too late to build one now or to give your original plan an update.

As an HVAC business owner, you’re part of an expanding U.S. industry worth $96 billion, according to market research firm IBISWorld . Over the last five years, the industry has seen 2.9 percent growth in revenue, 3.1 percent growth in the number of businesses, and 4.2 percent growth in the number of employees, IBISWorld reported.

The steadiness of the industry’s growth doesn’t necessarily translate to the experience of operating an HVAC company. The heating, ventilation, and air conditioning business tends to run hot and cold. Demand heats up during the summer and winter when customers need their HVAC systems repaired for relief against the heat and cold; service calls drop off when milder weather arrives.

Your heating and cooling business plan will include a financial forecast that anticipates the impact of the slow seasons, as well as ideas and resources you intend to use to keep your cash flow from grinding to a halt during those times.

Read on to learn how to write a business plan that will keep your HVAC business profitable through every season and ready to improve its bottom line year after year.

Writing a Business Plan for an HVAC Company

Think of your heating and cooling business plan as a road map to guide you through the early years, management, and growth of your HVAC business. That’s how the U.S. Small Business Administration (SBA) described the general purpose of this document.

A solid business plan will also back up your case for seeking funding for your business. It will educate lenders and investors about your business and its financial situation, show them that you have carefully thought through your mission and goals, and make a compelling case for how funding will contribute to your business’s success.

A business plan for an HVAC company is such a detailed document that the process of creating one can sometimes seem overwhelming. To make it easier, start by familiarizing yourself with all the parts of a typical small business plan. Then, tackle each section one by one or in manageable groups, providing the information required in each section.

The SBA listed the following as standard elements of a traditional business plan:

• Executive summary
• Company description
• Market analysis
• Organization and management
• Service or product line
• Marketing and sales
• Funding request
• Financial projection

Here’s a basic breakdown of each section:

Executive Summary

The executive summary is a brief overview of your business. In this section, you will outline what your company does, where it operates, who leads it, and how many employees you have. You should also summarize your business’s financial projections and any funding requirements. Though the executive summary is the first section in your business plan, it’s often easiest to write it last. You’ll have a better understanding of what you want to highlight in this section after you’ve written the others. Remember to keep the executive summary concise, under two pages if possible.

Company Description

In this section, you’ll go into greater detail about your company. You’ll define your company’s mission, clearly explaining your company’s purpose and problems it seeks to solve, your target market and customers, and your unique selling proposition (what makes you stand out from the competition). You should also talk about your company’s management team and how you define and measure success.

Market Analysis

Preparing for this section is one of the biggest homework assignments required to write a business plan for an HVAC company. You’ll research your intended business market — looking for trends, sizing up your competition, and figuring out how your business can do things better or address an unmet need. This research involves gathering information from market research companies, reviewing trend stories in industry trade publications, and reading reports in general business publications. Then, in the market analysis section, you’ll summarize the results.

Organization and Management

Here’s where you’ll describe the legal structure of your company (sole proprietorship, partnership, LLC or corporation) and its organization. The SBA suggested including an organizational chart to illustrate who is in charge of what, and the relationship between those roles. You might also include resumes or CVs of key team members in this section.

Service or Product Line

This part is pretty straightforward: You’ll describe the products and/or services your business sells and how they benefit your customers.

Marketing and Sales

In this section, you’ll describe what you envision as your marketing strategy. As the SBA noted, you should be prepared to adjust this strategy as your needs evolve. You also will describe your sales process.

Funding Request

If you intend to seek funding for your business, this section will state how much money you will need to operate the business over the next five years and exactly how you will use the money. You’ll also specify whether you’re seeking debt or equity funding, and list your ideal terms for the loan or investment you’re requesting.

Financial Projection

This section presents your five-year financial forecast . If your business is still in its early stages, the income statements, balance sheets, cash flow statements and capital expenditure budgets you present will, of course, be estimates. An established business will include its financial statements from the last three to five years. Feel free to include charts or graphs in this section to help illustrate your business’s financial picture.

This section might include supporting documents like credit histories, resumes, product pictures, letters of reference, licenses, permits, patents, legal documents and other contracts.

Now, let’s delve a little deeper into how a business plan for an HVAC company might approach the service/product, marketing and financial sections.

Choosing Your HVAC Service and Product Line

Your business model likely includes the repair, installation and maintenance of HVAC equipment, but the offerings you outline in your heating and cooling business plan don’t have to end there. For example, you might also sell heating and air conditioning systems.

If you’re in the first few years of business, you may opt to keep your service and product line simple for now. But if you are an established business in the process of revising your heating and cooling business plan, consider whether you are ready to add some complementary sales or services, such as plumbing, insulation, duct sealing, indoor air quality evaluation or system performance reviews.

Of course, you’ll also want to refresh your market analysis to get some solid indications of the customer interest and competition in those areas. Before sitting down to write the service and product portion of a business plan for an HVAC company, you’ll want to get up to speed on some of the latest trends, from ductless heating and cooling systems to HVAC systems that use renewable energy sources.

The growing interest in smart homes, in which heating and air conditioning systems can be controlled remotely, could be another potential opportunity for sales. According to the market research firm Statista , household penetration in the U.S. smart home market is already at 33 percent and is expected to reach 54 percent by 2023. A business plan for an HVAC company that intends to pursue this avenue needs to show a high level of knowledge about smart home HVAC products and consumer adoption.

Creating an HVAC Marketing Plan

When preparing to write the sales and marketing section of a business plan for an HVAC company, there are many factors to consider.

Your target market is a key aspect in determining how your sales and marketing strategy will shape up. Does your HVAC business cater to residential or commercial customers or both? What specific types of homes, businesses or other facilities do you serve? How wide is your geographic service area? You need to answer these questions to create your marketing plan.

You’ll also want to think about the methods you will use to advertise your business. For example, will you list your business on home improvement business directories like Angie’s List and HomeAdvisor? Do you anticipate placing television ads when your revenue reaches a point where that’s affordable? Do you have ideas for how to incorporate social media into your marketing plan?

When business is less hectic, it can be the perfect time to brainstorm creative methods for promoting your HVAC company as well. For example, you might try participating in home and garden shows, trade shows or other kinds of event marketing. Or maybe you’ll introduce a contest, a giveaway or a special financing arrangement to boost equipment sales. If the experiments pay off, you can formalize them as part of the marketing strategy you outline in next year’s business plan.

Seasonality is also likely to influence your sales and marketing strategy. When repair calls drop off during the slow season, it might be a good time to focus on selling things like maintenance agreements, indoor air quality products, energy efficiency upgrades or insulation. Thinking about what services you will promote and when can help you develop your marketing strategy.

For example, promoting maintenance services to existing customers during the slow season can help ease the peak season strain on your tech crew, as noted in Air Conditioning, Heating and Refrigeration (ACHR) News . Technicians can primarily focus on responding to calls from new customers, while your established customers stay happy as their HVAC systems hum along nicely thanks to proactive checkups. The marketing portion of your business plan for an HVAC company should include how you’ll advertise these types of services.

Building a Solid HVAC Financial Plan

Your market analysis and other research should turn up information like the average cost of running an HVAC business, the average earnings over a one- to five-year timespan, and perhaps some industry trends in your geographic area. This is the type of research that needs to be incorporated into the financial outlook of a business plan for an HVAC company.

ACHR News recommended creating a five-year plan for managing your business expenses. That may sound like a daunting process, but a good first step is to simply make a list of every possible expense you think your HVAC business will incur. Next, you can organize the list into categories and, taking one group at a time, begin to work out estimates for each cost item.

Your expense list will include wages (if you have or intend to have employees), vehicles, fuel, HVAC tools and safety equipment, office supplies, utilities and the cost of leasing or owning your business space. Your list should also include insurance, like the cost of a general liability policy and property and worker’s compensation insurance.

Additionally, HVAC businesses often must pay licensing and certification fees, so be sure to check out the specific HVAC licensing requirements in your state. HVAC Classes included a handy chart of the organization in charge of HVAC licensing in each state. For HVAC franchises, there is a one-time franchise fee and the payment of a cut of annual revenue to the franchisor to take into account.

Implementing your marketing strategy will cost money, too. You’ll need a budget for any print, online, radio or TV ads you place to attract customers to your business. And since having a website is a must for any business that wants to be competitive, include website development as one of the expenses in your heating and cooling business plan.

A business plan for an HVAC company also needs to incorporate an IT budget. Estimate the cost of things like onsite computer equipment, mobile devices for field technicians, cloud data storage and software. For example, you may need to acquire software programs for sales support, customer relationship management, project quote templates, scheduling and invoicing.

You’ll also need to consider how costs are impacted by seasonality. A business plan for an HVAC company might factor in potential payments for additional work hours during peak seasons, additions to your truck or van fleet to accommodate the increased demand, and the general maintenance of your transportation fleet. You’ll also need to consider how you will retain or acquire enough cash to cover your business expenses during the mild weather slow seasons. Your goal should be to at least break even during the slow periods, as HVAC training director Mike Moore pointed out in Contracting Business .

In addition to detailing your projected expenses, the financial section of your heating and cooling business plan should also include long-term revenue goals and projections, which will help you determine the number of monthly billable hours, sales and service calls necessary to meet those marks. They will also help lenders and investors assess the financial outlook for your business.

Developing an HVAC Hiring and Training Plan

Since employee wages and other HR costs will likely be the biggest expense for any HVAC business that hires staff, we’re breaking this item out of the general discussion of financial projections and into its own category. Having adequate funds to hire and train salespeople, technicians, and marketing, communications and administrative staff is crucial to the survival of your business.

Consider the various employee training options available and what they cost. Will you handle training in-house or outsource it to a separate company? Will you provide onsite instructors, online learning or combine the two formats?

Think about the volume of business you expect to generate, not just at the beginning but over the entire year that your HVAC company will be operating under this business plan. Go back to your mission statement and consider the minimum staffing level you will need to meet the standards you laid out.

While it wouldn’t be cost-effective to hire more people than you currently need in anticipation of future demand, you might want to incorporate into your business plan some goals or projections for future staff growth and the steps you will take to increase your staff when needed.

There also may be some long-term recruitment strategies that you can begin rolling out even when business is slow. For example, you might work on cultivating relationships with area community colleges and trade schools, perhaps even serving on advisory boards that help design their courses and curricula. A budget for this type of outreach could be included in the financial section of your business plan.

Revisiting and Revising Your Heating and Cooling Business Plan

A business plan for an HVAC company can’t remain stagnant if that business is to prosper. You can’t just create your business plan and then forget about it. You need to know whether that plan is working and what adjustments you need to make if it’s not. You need to check the projections you made against the realities you’ve experienced while running your business. That’s why regularly reviewing and updating your business plan is so important.

When to Review the Business Plan

Business experts usually recommend reviewing your business plan at least once a year. In an Entrepreneur article, business planner and angel investor Tim Berry said you should be updating your business plan constantly, “when you’re alone in the shower, when you’re caught in traffic on the way to work, and when you’re walking alone.” In other words, you should think of business planning as an ongoing process, and always be ready to adjust it when significant changes occur.

According to the National Federation of Independent Business , there are eight events that should automatically trigger a business plan update:

• The addition of a new partner or owner
• A change or addition of locations
• An advantage gain by a competitor
• A financial decline
• A missed goal
• A change in your product or service line
• A decision to seek financing
• Rapid growth

The Review Process

Look at your mission statement, your product and service line plans, and your marketing strategy, and compare them to how your business has actually performed over the past year.

Have you been able to adhere to your original mission? Have there been new developments in your industry, unforeseen business opportunities, or other surprises that cause you to rethink what that mission should be?

Analyze your sales patterns, your customer feedback and your competition. Are customers buying the items or services that you predicted would bring in the highest sales? Are customers facing new problems that need solutions? Are you at risk of losing customers to competitors because they offer solutions that you don’t?

A business plan for an HVAC company should also undergo a periodic financial analysis. Since businesses usually generate monthly financial statements, Berry suggested reviewing this part of your business plan monthly as well.

Review your records from tracking your service calls, installation sales, service agreements and other sales, along with the revenue and profit for each category. If you fell short of your financial goals for the period, you might consider adjusting your sales and marketing strategy or your product and service line to generate more revenue. Or you might determine that slower growth is more realistic than what you originally envisioned, leading you to revise your financial outlook.

Time Well Spent

The early few years of your business are an exciting time, and it’s tempting to let pure enthusiasm direct your path forward. But if you want your new HVAC business to have staying power, you must step back and devote the necessary time to developing a business plan. And remember that a business plan for an HVAC company isn’t meant to be a static document. It’s a framework to guide the launch or revamp of your business that you can build upon and restructure as the business evolves.

Take a few steps now toward putting your business plan together, and soon enough you’ll have the document done so you can move closer to putting your plan into action.

Once you have your business plan in place, consider heating and cooling business loan options with National Funding.

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How To Create A Successful HVAC Business Plan?

• Last Updated: September 7, 2022

To run or grow a company in the HVAC industry, you need a business plan. Whether you are planning to start a new HVAC business or grow your existing HVAC business, you require a business plan to be successful.

Whether you want to start an HVAC business or grow your existing business, having a business plan is crucial in all cases. Making sure you have set fair expectations and goals is one of the most challenging aspects of business planning to acquire potential customers. To guarantee that your commercial HVAC firm is progressing in the right direction, you should create goals and work toward them.

On paper, starting an HVAC business plan may appear simple. Still, there are several processes to follow before you can welcome your first customer.

Being a business owner, one of the first things you should write is an HVAC business plan.

It may not be as showy as marketing or as exciting as creating your company’s logo. Still, it is the foundation of any business endeavor and will guide you to success. One way to design a business plan is using an HVAC business plan template.

However, if you have never written a business plan before, you might be unsure where to begin.

You do not have to worry since we will cover all of this in the blog. Writing a business plan may not be the most fun activity on your to-do list, but it’s a crucial one that will provide you with a thorough picture of where your HVAC business is now and where you want it to go in the coming years.

Follow this tutorial to successfully construct your HVAC business plan , whether you’re starting from scratch or need help modifying your initial draught.

Table of Contents

What Is a Business Plan?

What to include in your hvac business plan.

Unfortunately, you can’t simply decide to start an HVAC company and have it up and operating in a matter of days. A significant amount of effort and planning is required before you open your doors for the first time.

The initial step in the process is to write a business plan for your HVAC company. This business plan is a written document covering the business goals, services, organizational structure, growth route, and other aspects of your company that can be made on a business plan template.

You can develop a benchmark and goals to aim towards by stating where your business is today and where you want to see it in five years using a business plan template.

You can develop a benchmark and goals to aim towards by stating where your business is today and where you want to see it in five years using a business plan template and determining your business success.

This not only allows you to build your firm more efficiently but also allows you to share your HVAC business tips with investors or fund/loan providers if you ever need additional cash or resources.

Customer Segments

Who are your clients? Do you know who your ideal consumer is? Can you provide excellent customer service to your target demographic? You’ll need to keep track of who you’re after and what problem you’re solving for them.

Knowing who your customer is along with their problem will help you design an effective HVAC marketing plan that will target and reach them. You could be targeting home consumers in your local area, as well as commercial businesses working on larger projects, such as universities, hospitals, and restaurants.

It’s critical to have a clear idea of whom you’re going after, what services are best suited to them, and how to price them. This also aids in determining which products, providers, and vendors you want to work with.

The next step is to determine the channel or platform to communicate with these consumers. You want to locate where your clients expect to find you, learn about your services, and review your work.

After acquiring the customer/job, the difficulty of making a profit arises (after the cost of acquiring a customer is covered on the cover page). The only thing you are required to do now repeats once you’ve gotten this procedure down and are getting leads and profiting from your heating and cooling business.

Value Propositions

Now that you know who your customer/client is, consider what they want and how you can best serve them.

This can be as simple as stating that you are always on time, or that you are always incredibly professional, or that you are always inexpensive.

Developing a clear offer for your sales forecast plan might assist your HVAC company in gaining those new potential consumers.

When your quotations are pouring in and getting approved at a high rate – such as a 50% success rate – you’ll know you’ve got your value proposition down pat. During the quoting process, this boils down to communicating with consumers and listening to their wants and needs. It also includes the objective you have set for your HVAC company.

When your customers are looking for services, what platforms or channels do they use? Why are you more effective in some channels than others? How you interact with your consumers will be determined by your chosen channel.

As HVAC business owners, it’s crucial to do some study to figure out which channels are helpful for HVAC companies and which aren’t.

A test, fail, and learn mentality ensures you don’t put all your eggs in one basket and offers you the flexibility to tap leads as needed.

Consider different approaches to attract potential clients when developing your HVAC business plan. This could be a marketing plan or HVAC marketing tactics and sales strategies such as emails, fliers, or even word of mouth, but it could also be digital platforms such as social media marketing or online channels.

You might discover that one channel is more successful than the others for your HVAC services. You’ll be able to match your team’s business plan to your market and sales strategy once you’ve determined which platforms work for you.

To begin an HVAC business plan, you must first secure jobs and potential clients. With a little investigation, you can discover that your clients are shifting channels over time. COVID19, for example, has thrown a wrench in the works, causing you to rethink where you’ll locate your customers and your sales strategies. With the correct HVAC business plan template you can regain those customers.

When considering marketing and sales strategy such as SEM, SEO, word of mouth, and printed media, can play a role. SEO stands for Search Engine Optimisation, and it means that your results will be ranked in search engine results depending on keywords.

SEO requires a fantastic website that is chock-full of industry-specific content and where people expect to find you to solve their concerns. Paid advertising on sites like Facebook, Instagram, LinkedIn, and Google is the foundation of SEM or Search Engine Marketing. There are solutions available to suit any heating and cooling and air conditioning business plan, executive summary, and customer base for marketing strategies.

Your HVAC marketing strategy should be based on a market analysis section of the target market that is inclusive of your consumer base while also being adaptable as your company develops and evolves.

Customer Relations

When you mention customer relations in your HVAC business plan, you’re referring to how you interact with your target market. From the minute they contact you (through phone, online form, Facebook Messenger, or other means), receive a quote, write the check, and give you a wonderful review about your excellent service!

Each of these contacts is critical, and they should be reviewed on a regular basis or surveyed with customers to see where they may be improved. If a consumer has a query, are you approachable? Is it possible for them to contact someone if there is a problem?

Put yourself in your customer’s shoes and evaluate your own HVAC company to check if your existing HVAC systems are in line with your market research and your customers’ requirements. If you’re advertising commercial products and services to residential customers, you’re not going to do well.

You want to have a good relationship with your customer both before and after you finish their task so that you can get repeat small business and positive customer evaluations. Customer interactions can make or break a firm based on your professionalism and efficiency.

It’s the same thing when a consumer calls the office to complain and gets an answering machine or a harsh receptionist who isn’t interested in assisting.

The way you treat your clients will either help you obtain more money from them or entirely destroy your capacity to attract new commercial customers in the future.

Revenue Streams

Your own HVAC business will be able to thrive if you have solid HVAC accounting processes and a high-profit margin. If you have low-yielding revenue streams, your firm may stagnate or even go backward.

In order to grow and expand, many local businesses set goals that define how they plan to price projects and schedule enough work to be profitable. Working out and documenting can be difficult, but with the appropriate setup, your small business will thrive.

You will lose money and wonder why you aren’t profitable if you focus too much on the customer side of things and don’t charge enough in your quotes.

This is not how you start a successful firm, and if you don’t keep an eye on it and make improvements, it can lead to disaster.

Key Activities

Are you satisfied with the level of customer service you provide? What actions does your staff engage in to provide excellent customer service? Do you have a written duty of care or a set of basic criteria for customer interactions?

Is there a checklist for ventilation and air conditioning equipment repair in the field to ensure that quality is delivered quickly? Do you receive positive and negative feedback from clients, and are you attempting to identify the weakest links and devise methods to address them?

This is a never-ending conflict that requires a litmus test on a regular basis. Bad behaviors that aren’t broken for a long time become ingrained and difficult to break. When considering your primary operations as an HVAC company, you must consider what services your clients anticipate from you and how profitable they might be.

This stage incorporates your discoveries and learnings from the previous steps to provide you with a thorough grasp of your company’s operations. Consider what services your heating air and conditioning company offers.

How do you categorize these services as lucrative or unprofitable? Consider your customer’s issue and the procedures required to complete their task. How can you provide an acceptable and appropriate conclusion for the service they require?

They don’t want to pay too much, and you don’t want to lose money. For each of your primary activities, you must analyze your profit structure.

Once you have mapped out each step, you can see where you might need improvement and where you are already doing great.

Key Resources

Staff management is an unavoidable job for any firm, whether it has been in operation for a year or for 100 years. For any HVAC company, the pain of not having the correct person can be a challenging obstacle to overcome.

Consider whether your hiring procedure is up to par; you may need to rethink whom you hire and how you hire. “Be slow to hire and fast to fire” is a wise rule to follow. You don’t want to hire the incorrect individual and find yourself in a worse situation than if you had waited for the appropriate person.

When it comes to recruiting and firing, you must be impersonal. You’ll want to construct a set of criteria for your ideal team and make sure that each new hire meets those requirements.

Is the team getting enough training to maintain their abilities up to date? Do you have enough measures in place to ensure the safety of your team?

Your HVAC company will have a real chance to expand and succeed once you’ve put together a great staff for both the office and the field. You must maintain open lines of communication between the field and the office so that small process concerns may be addressed promptly and without disrupting the flow and pace of your expansion.

Make use of the mindset of improving your company’s collective abilities.

Conclusion:

It’s never too late to start using the power of a strong HVAC business plan, whether you’re a new business or existing heating ventilation and air company.

It’s easy to get caught up in the excitement of your company’s early years, and it’s tempting to follow your heart.

However, if you want your new HVAC company to be successful, you must take a step back and dedicate the necessary time to creating an HVAC business plan using a business plan template.

Also, keep in mind that an HVAC company’s financial projections aren’t supposed to be a static document. It’s a framework for launching or revamping your company that you may build on and restructure as the company grows.

Always keep in mind that being an HVAC business owner you need to revise your business plan on a frequent basis. Make time for weekly financial plan adjustments as well as full yearly updates in order to acquire potential customers.

To construct a tremendously successful business and scalable air conditioning firm, start with this framework to create an HVAC business plan to attract local customers.

To streamline your HVAC business operations, start using an HVAC business management software like FieldCamp.

Gaurang Bhatt

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Level Up Your HVAC Business Plan Every Year to Ignite New Growth

Running an HVAC company on hopes and dreams, or without a solid HVAC business plan, can only take you so far. Sure, you might make it out of the gate as a startup and gain new customers along the way, but then business growth starts to slow down, so you begin looking for ways to get unstuck and grow your customer base.

That’s when you need to simply focus on your HVAC business plan, says Chris Hunter, Principal Industry Advisor for ServiceTitan. Remember that living, breathing document with all of your goals, strategies, and visions? It’s where you’ll find the answers you seek for igniting growth.

“If you don't have any vision of what you actually want to accomplish, the odds of you getting there are very slim,” says Hunter, paraphrasing one of his favorite Yogi Berra quotes. He says it’s a lesson he learned early on as a service business owner and founder of Hunter Super Techs .

“We didn't have a plan,” Hunter says, “It was just, ‘Let's just keep doing what we're doing and hope we get better.’ It was just a bunch of hope.”

Rather than rely on hope, Hunter turned to his mentor Ben Stark to learn more about annual planning and how important it is for growing an HVAC services business. It’s about HVAC business owners creating a strategic roadmap with specific business goals for each department, then holding team members accountable for results on a weekly, monthly, or quarterly basis.

Hunter says that, once he updated his HVAC business plan following Stark’s annual planning advice, the results were amazing.

“The first year after we did it, we went from single-digit profitability to double-digit profitability, just because we had a plan,” says Hunter, who later joined Stark as co-founders of the Go Time Success Group , a business consulting and coaching firm, and as co-authors of It’s Go-Time in 2020.

With the fight for talent tougher than ever in the HVAC industry, Hunter says HVAC contractors who tend to succeed are the ones who have the vision, the business plan, and the culture.

“And this doesn't happen by accident. They have to be very strategic in creating this, and it’s exactly what you do when you go through an annual planning process,” Hunter says. “You design what you stand for, where you're going, and how you're going to do it.”

To help HVAC contractors get started, we compiled a sample HVAC business plan template.  In the guide below, we outline the most important information to include in each section.

Table of Contents

Why You Need a Business Plan Each Year

HVAC Business Plan

Executive Summary

Company overview, products and services, marketing plan, operational plan, management and organization, personal and company financial statement, financial plan.

Before getting into the nuts and bolts of what to include in a business plan, it’s important to understand why you need one in the first place, and how reviewing and refreshing your business plan every year can help to supercharge your HVAC business operations.

Crafting your HVAC business plan gives you a roadmap for becoming a successful HVAC business, providing in-depth analysis of what it’s going to take to get there. A business plan is meant to be tweaked and adjusted as sales forecasts and economic conditions change, and reviewing it each year keeps your small business ahead of the game.

“Every year, you still have to adjust the plan and make sure there's nothing in there that needs to be tweaked,” Hunter says. “What did we do good? What did we do bad? What external threats are there (like a pending recession)? Or what do we need to be aware of?"

Once you understand who you are, where you want to go, and what key performance indicators (KPIs) will take you there, Hunter says it's easy to reverse engineer and execute a successful business model and sales strategy.

“If I want to hit this sales goal, that means I need to produce X number of calls at a certain average ticket. And to do that, we need to generate this many leads,” Hunter explains. “And you can reverse engineer all the way back to your marketing, knowing exactly what we need to do to produce that number of calls, perform at that average ticket, and produce that revenue every month.”

While concerns about trying to grow a heating and air conditioning business in a struggling economy cause some HVAC contractors to hold back, Hunter says now’s not the time to take your foot off the gas.

“Great companies plan for it. They ramp up their marketing during a recession because they know they can grow,” Hunter says. “They make it easier on homeowners by offering different financing plans. They get smart about how they're offering their maintenance agreements. It's also a great time to acquire talent. If other companies aren't planning, and their techs aren't busy or they're laying off, now's the time to get the talent that's available out there in the marketplace.”

Read on to learn how to break down each section of your own HVAC business plan.

HVAC Business Plan 

While the executive summary appears as the first page of your HVAC business plan, Hunter advises doing it last so it truly summarizes the overall picture for your company’s short-term and long-term goals.

“We've done all the planning and the strategizing, we know what we're going to do. Now let's just make it really concise,” he says. “This is our summary of, ‘Alright, here's what we're going to do, here are the next steps, and let's go get it.’"

Make your executive summary two pages or fewer, and try to write it in a professional and concise, but enthusiastic, voice. Explain your air conditioning or HVAC systems products, your target audience, and specific goals for employing highly qualified HVAC technicians and growing your HVAC business. If applying for funding, specify the amount and how you plan to use it, and more importantly how it will increase your profit margins.

“Make it very clear and concise, and summarize the plan, so you don't go through a lot of work and then the thing just sits on the shelf,” Hunter advises.

In your HVAC company overview, lay out the details of your mission statement and how you plan to accomplish certain goals and objectives. Describe the marketplace in which you operate, the industry outlook for installing air conditioners and heating systems in your region, and your most important company strengths and core competencies.

Include the following components in the company overview:

Goals and Objectives : Your goals, objectives, and KPIs change every year, so make sure your HVAC business plan outlines a path for achieving success within a certain time period, then measure the results. Look at your goals as destinations, your objectives as progress markers along the way, and KPIs as a tool for measuring overall success.

Marketplace: Define your core customer base and explain your HVAC marketing strategy, including the marketing channels you plan to use. You don’t need to go over the entire marketing strategy or every billboard placement here. In fact, keep it brief. Save the key details for the Marketing Plan section of your business plan.

Industry outlook: Your business plan needs to demonstrate your knowledge about the HVAC industry, including its current state and expected forecast. Is it a growth industry? What changes do you foresee in the industry, short term and long term? How will your company be poised to take advantage of them?

“A contractor can't have their blinders on and only look at what's going on in their company. They need to take time to look around and see what's happening elsewhere with other companies and in the industry in general,” Hunter says.

You can find statistics readily available online from the Bureau of Labor Statistics and other organizations and trade groups. Hunter says ServiceTitan customers can see real-time market insights as well as how their HVAC shop stacks up against others in the market by accessing their ServiceTitan Benchmark Report . 

Strengths and core competencies : What strengths set you apart from the competition? Will you offer services currently not available in the market? How will you train your staff to succeed? What background experience, skills, and strengths do you personally bring to this venture? Will you offer 100% customer satisfaction on every job?

Legal form of ownership: Describe the type of business you operate. Is it a sole proprietorship, partnership, corporation, or limited liability corporation (LLC)? 

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In this section, you’ll outline the most important part of your business: HVAC products and services. It’s also a good place to tweak and streamline the plan each year when you discover a certain product or service isn’t delivering like you thought it would.

“A lot of times, we'll chase after something and realize, ‘My goodness, we're putting a lot of effort into this product or this service and it's really only producing a fraction of our revenue.’ What I love to do during this time is identify the top 20% of what's producing 80% of the revenue,” Hunter says. “I like to see what's producing, then let's figure out, how do we really amp this up?”

Highlight any factors that give you a competitive advantage over other HVAC contractors in your service area. For example, do your service technicians possess advanced skills that enable them to work on high-efficiency HVAC systems or install high-tech indoor air quality systems?

Then, clearly answer the question, “Why us?”

“Why would somebody choose you? What makes you better than the other umpteen companies they can call very easily?” Hunter explains. “By identifying why you're better, whether that's your guarantees or warranties, whatever it may be, it not only helps you with your marketing message, but it also helps your team.”

Next, mention the pricing or fee structures for your HVAC services. Will you price HVAC jobs by the hour, or offer flat-rate pricing? Examine the wage rate in your area to ensure you pay your employees a competitive salary. Also include the hourly rate, how you’ll account for drive time, and billable amount for every job or service you offer.

HVAC businesses utilize marketing tactics to promote their companies, generate new business, and entice repeat customers. Hunter says marketing strategies based on real-time data and brand consistency are the most important factors to consider here.

“If you're using ServiceTitan, pull up your marketing dashboard and let's look at the data. What's the data telling us about our marketing? What's working, what's not? What should we double down on, what should we not? I think the data tells a pretty compelling story,” he says.

Also, don’t lose track of brand messaging throughout the year, and try to keep all content uniform and consistent across your website, on company vans, on uniforms, etc.

Your HVAC marketing plan includes the following components:

Understand the economics of your target market and include a market analysis, such as the current size and demand in the market, median household income, employment rate, as well as growth potential and opportunity for a business of your size.

Products and Features

Describe in detail all of your products, features, and HVAC work. For features, explain what sets your business apart from the competition. For benefits, clearly articulate the value you bring to the customer. 

Reaching your ideal customer profile (ICP) requires identifying your target audience, including their demographics, income, geographic location, age, home type, and more. 

Describe how you market to consumers, known as B2C marketing, or to other businesses, referred to as B2B marketing. If it’s a combination of both, you’ll likely need to create separate ICPs for B2B and B2C.

Systematically analyze your industry, product, customers, and the competition to determine where your company uniquely fits into the market. This is your niche. In a single paragraph, describe your unique position in the industry and how you plan to use it to promote your HVAC business. 

Use various marketing strategies or a mix of marketing channels to reach the right audience at the right time. This may involve digital marketing, such as search engine optimization (SEO), Google ads, and social media, or direct mail, billboards and banners. Bottom line: You want to reach as many potential customers as possible, so don’t be afraid to try different marketing strategies.

Your strategy should also include the average cost to acquire a new customer, and take into account other marketing drivers, such as club memberships and word-of-mouth referral programs. 

If you fail to measure or track marketing campaign results, how will you ever know if they worked? Always use data to fuel marketing initiatives, so you can focus your budget on campaigns that generate the most revenue for optimal growth. In today’s digital-first world, HVAC contractors increasingly use field management software to run their marketing initiatives and track ROI. 

For instance, ServiceTitan’s Marketing Scorecard ranks all of your campaigns by revenue so you can see which ones generate the most revenue in real-time. With ServiceTitan Marketing Pro , you can build direct mail campaigns, create and send hyper-targeted email campaigns, track your online presence across multiple reviews sites, and easily monitor and identify wasted marketing spend or new opportunities through full-funnel digital ads dashboards that show true ROI.

Explain the daily operations of your business, its location, equipment, people, processes, and surrounding environment.

“This is the part that's so important to involve your team in,” Hunter says. “Have your leaders create their own action plan of how they're going to drive the results in their specific area. Whether it's a service manager, install manager, the CSR manager, the admin manager, whatever it is. If they'll own it, they'll want to drive the change to make this happen.”

The operational plan includes:

Production : How and where are your services produced? Be sure to include production techniques and costs, quality control, customer service, and inventory control.

Location : What requirements do you need in a physical location? Mention the amount of space, type of building, zoning, and utilities.

Legal: Include licensing and bonding requirements, permits, environmental regulations, industry-specific rules, zoning or building code requirements, and liability insurance.

Personnel: List the number of employees, type of labor (skilled, unskilled, and professional), recruiting efforts, pay structure, training programs, and job descriptions.

Inventory and suppliers: Include the kind of inventory (raw materials, supplies, finished goods), the estimated value, and your top suppliers.

Credit policies: Will you sell your services on credit or offer financing? If so, how will you approve customers or determine creditworthiness?

Describe the key roles and job descriptions for all leadership roles in your organization, including the general manager, operations manager, HVAC technicians, and others. What experience do they bring to the business? Do they hold special or distinctive competencies? Is there a plan for continuation of the business if leadership is lost or incapacitated?

Review your business plan each year to evaluate your current staff, then make sure each employee knows what’s expected of them.

“Do we have the right people in the right seat on the bus? If not, maybe it's time to make some changes or move things around,” Hunter says.

Include personal financial statements for each owner and major stockholder, showing assets and liabilities held outside the HVAC business and personal net worth. Bankers and investors will want this information if you’re applying for financing.

The financial plan typically includes a 12-month profit and loss projection, cash-flow statements, a cash-flow projection, a projected balance sheet, and a break-even calculation. Together, they present a reasonable estimate of your HVAC company’s financial projections. More importantly, the process of systematically breaking down the financial plan will improve your insight into the inner financial workings of your company.

Compile all materials, details, and studies used in your business plan in the Appendices section, so they’re readily available for future reference.

Hunter offers a final message about annual planning for HVAC contractors.

“The best companies out there, the ones that are highly performing, they're all doing this,” he says. “If someone's not doing this, it's never too late to start. Don't be intimidated by it. You don't have to be perfect the first year, you just need to get started. Every year you do it, this thing can get even better.”

>> Ready to set your HVAC shop up for growth and success? Download our free HVAC business plan template.

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More From Forbes

Startup checklist: how to start an hvac business.

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Mark Snell, owner and founder of Polestar Plumbing, Heating & Air Conditioning, is a third-generation plumber and HVAC technician.

Are you an expert in your trade and wondering how to start an HVAC business? Or maybe you’ve been on your own for a while and are ready to take your existing HVAC business to the next level?

I started my HVAC company, Polestar Plumbing and Heating, over 35 years ago. In this time, I’ve learned a great deal about what makes an HVAC business successful. Knowing your customers, having a solid business plan, investing in your employees and marketing your services are all important components as you begin your journey as a new business owner in this space.

Starting an HVAC business is no small task, but if you take the right steps, you’ll be well on your way to growing a thriving company. Here is my HVAC business startup checklist.

Figure Out Who Your Customer Is

The first step to figuring out how to start an HVAC business is learning who your customers are and what they need from you. And this process all begins with researching supply and demand for HVAC services in your area.

When it comes to supply, take a look at your competition. Research other HVAC businesses in the area and see if you can identify a gap. Maybe there are fewer commercial HVAC companies, and you already specialize in industrial work. Or maybe the area is saturated with national brands. Set yourself apart as a small HVAC business that provides a level of personal service that a larger company just can’t match.

When it comes to demand, figure out what homeowners and business owners in the area need the most. If you’re in the South, where the weather is always warm, you might consider positioning your company as the top air conditioning business in the area. Or perhaps you’re in a state that has special incentives for energy-efficient home upgrades. You could offer solar panel installation or energy-efficient geothermal heat pumps. The research is key because determining how to start an HVAC business is different in every market.

Create An HVAC Business Plan

Being a great tradesman isn’t the same thing as being a great business owner. One of the biggest mistakes that people make when starting an HVAC business is not creating a solid business plan.

When designing your HVAC company’s business plan, figuring out your target market is a great first step. Next, you’ll want to write out a summary of what HVAC services your business will offer and all of the components that go into offering those services. What type of equipment will you need? Where will your shop be? How many employees will you have? Outline your goals for the next five years. Using the S.M.A.R.T. goals format will help you clearly identify each step you'll need to take to grow your business and the things you'll need to get there.

Finally, as you figure out how to start an HVAC business, you’ll also need to figure out your financial plan and paperwork. An accountant can help you plan your budget to make sure you’re never down in terms of cash flow, and a good lawyer can help you file all of the necessary documents for starting an HVAC business. And, perhaps most importantly of all, make sure your company’s liability insurance is always up to date.

Invest In Quality Employees

As you move from figuring out how to start an HVAC business to working on how to grow your HVAC business, you’ll need to hire employees who will effectively represent your company.

The people you hire will be an extension of your HVAC business. You already know what it takes to be a great HVAC contractor. Write it all down in the form of a job description, and utilize resources like online job boards, social media and even friends and family to help you find quality candidates. Also, make sure to hire people that are not only great technicians but who will also represent your company's values.

Once you’ve brought on a few team members, be sure to invest in their success. Offering ongoing training such as NATE and Truetech certifications, as well as rewards and recognition for quality work, are just two ways to retain good employees .

Market Your Business

Now that you have a solid foundation, it’s time to work on your business structure and figure out how to grow your HVAC business with new customers. Referrals are a key, but if you really want to grow your HVAC business, don’t just rely on word of mouth. Utilize direct mail and digital marketing strategies such as online ads and social media posts to advertise your business.

A marketing agency with industry expertise or an HVAC business management company can also help you figure out how to grow your HVAC business, providing a full marketing plan and implementing location-specific SEO web content.

Finally, involve yourself in the community. Participating in local events and fundraisers and joining your town’s Chamber of Commerce are great ways to build brand recognition.

Take The Leap

Starting an HVAC business and watching it grow can be incredibly rewarding. It’s not only a way to make money but a way to help your employees grow as HVAC industry professionals, serve homeowners and business owners in your community and have the freedom to do what you love.

As you take steps to start and grow your HVAC business, remember the path you've set for yourself. With a solid HVAC business plan, a quality team and name recognition within your target market, you’ll be well on your way to owning a successful HVAC business for many years to come.

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HVAC Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Home Improvement » HVAC

Do you want to start a HVAC business and need to write a business plan? If YES, here is a detailed sample HVAC business plan template & feasibility report.

Starting a HVAC business can really be rewarding. This is because of the lucrative nature of the trade. Every day in the united states of America, as well as other parts of the world, more and more people have taken to the industry. It is however really vital that you are very optimistic to do this business, per adventure you contemplate to venture in.

After you are decided, then you may want to pay an expert to help you carry out some exhaustive research. After all that has been done, there is great need to draw up a business plan. Here is a sample plan to work with;

A Sample HVAC Business Plan Template

1. industry overview.

The heating, ventilation and air conditioning (HVAC) industry is an industry that deals in heating system, ventilation, and air – conditioning of a facility or a space (automobile, plane, ships, trains et al).

The truth is that, heating, ventilation, and air-conditioning are interconnected, most especially when it comes to the need to provide conducive temperature in an indoor facility within reasonable installation, operation, and maintenance costs.

Basically, HVAC systems is designed to provide ventilation, reduce air infiltration, and maintain pressure relationships between spaces. The heating, ventilation and air conditioning (HVAC) industry is indeed a very large industry that covers operation and maintenance, system design and construction, equipment manufacturing and sales.

In order to maintain high standard and best practices, manufacturers in the HVAC industry are regulated by organizations such as HARDI, ASHRAE, SMACNA, ACCA, Uniform Mechanical Code, International Mechanical Code, and AMCA.

Just like most industries within the construction line of business, the Heating and Air-Conditioning Contractors industry has been recovering over the last five years. Within the stated period, there were appreciable increase in business activity and end user spending benefited business expansion plans and supported new enterprise in the industry, supporting the industry.

Going forward, the demand for heating, ventilation and air conditioning (HVAC) services is projected to rebound in the five years. As a matter of fact, with the growth in the real estate industry and the growing trend as regards energy – efficiency et al will definitely translate to growth in the heating, ventilation and air conditioning (HVAC) industry.

The Heating and Air-Conditioning Contractors industry is not dominated by any company. As a matter of fact, no company can boast of having more than 5.0% of the total annual revenue in the industry. The major players in the heating, ventilation and air conditioning (HVAC) industry are smaller firms that specialize in kinds of HVAC systems or dominates a certain location.

Similar to any other business, the demand for heating, ventilation and air conditioning services and products usually declined during recession period / economic downturn and this is due to the declining household spending and reduced demand from business clients.

As the economy grow, and income increases, there will be corresponding increase in the demand for heating, ventilation and air conditioning services and products.

The heating, ventilation and air conditioning (HVAC) industry is indeed a very large industry and pretty much thriving in all the parts of the world especially in developed countries such as United States of America, Canada, United Kingdom, Germany, Australia and Italy et al. As a matter of fact, there are no companies with a leading market share in the industry.

Statistics has it that in the United States of America alone, there are about 105,598 licensed and registered heating, ventilation and air conditioning (HVAC) related businesses responsible for employing about 437,894employees and the industry rakes in a whooping sum of $82bn annually with an annual growth rate projected at 4.0 percent

Over and above, the heating, ventilation and air conditioning (HVAC) related businesses all over the world are still enjoying good patronage particularly if they are well positioned and if they know how to reach out to their target market (businesses, government and household et al).

2. Executive Summary

Capstone® Engineering Services Ltd. is a standard and licensed HVAC retailing, servicing and maintenance company that will be located in will in Miami Beach, Florida – United States of America and we will cover other cities such as Green – acres City, Miami, Jacksonville, Clearwater, Tampa, Fort Lauderdale, North Miami, West Palm Beach, Palm Harbor, Deltona, Orlando, Palm Bay and Panama City et al.

We choose to operate in these cities because we know that our products and services will be in high demand due to the growing activities in the real estate / construction industry.

Capstone® Engineering Services Ltd offer services and products care services such as Air conditioning system installation (except window units), Air vent installation, Furnace conversions (i.e. from one fuel to another), Refrigeration system (e.g. commercial, industrial or scientific) installation,

Heating, ventilation and air conditioning (HVAC) contractors, Furnace humidifier installation, Natural gas fireplace installation, Duct work (e.g. cooling, dust collection, exhaust, heating and ventilation) installation, Ventilation equipment installation, Heating and ventilation system component (e.g. air registers, diffusers, and filters) installation et al.

We are well trained and equipped to service the market segments that require HVAC services. Although our intention of starting a Capstone® Engineering Services Ltd is to offer only the above stated services, but we will not close our doors to diversification (additional services) as long as it does not affect our core services.

We will offer both in – station and out – off station services. Our customers will have the options of choosing from our different packages – we have the plans to serve both individual clients (households) and corporate clients (industries and the government) as well which is why we designed various packages.

At Capstone® Engineering Services Ltd we are passionate in the pursuit of excellence and financial success with uncompromising services and integrity which is why we have decided to start our own HVAC business; we are in the industry to make a positive mark.

We are quite optimistic that our values and quality of service offering will help us drive our HVAC business to enviable heights and also help us attract the numbers of clients that will make the business highly profitable. We are a company that will be dedicated to establishing good business relationship with our clients giving them value for their money and reasons for them to purchase our products and hire our services over and over again.

We are quite aware that in order to become the number one choice in our city, we must continue to deliver quality services and that is exactly what we will do. We are open to the use of latest technology in the heating, ventilation and air conditioning (HVAC) industry.

No doubt our excellent customer service and the range of services we offer will position us to always welcome repeated customers and handle massive deals from both government agencies and construction giants. Our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Capstone® Engineering Services Ltd is owned and managed by Engr. Robert Downey and Family. Engr. R. Downey graduated from Illinois Institute of Technology, he studied Mechanical Engineering with bias in refrigerator and air – conditioning.

He has well over 15 years of hands on experience working with some of the leading brands in the heating, ventilation and air conditioning (HVAC) industry in the United States of America.

3. Our Products and Services

Capstone® Engineering Services Ltd is a standard and licensed HVAC retailing, servicing and Maintenance Company which will offer a wide range of services that revolves around the heating, ventilation and air conditioning (HVAC) industry and other complementary services.

We intend giving our customers every reason to always come back which is why we have customized our services. Basically, our services will involve us going out to services of clients’ needs. These are the services we will offer as a heating, ventilation and air conditioning (HVAC) company;

• New construction HVAC installations
• Existing structure HVAC installations (i.e. replacements)
• HVAC maintenance and repairs
• Refrigeration system installations, maintenance and repairs
• Air conditioning system installation (except window units)
• Air vent installation
• Furnace conversions (i.e. from one fuel to another)
• Refrigeration system (e.g. commercial, industrial or scientific) installation
• Heating, ventilation and air conditioning (HVAC) contractors
• Furnace humidifier installation
• Natural gas fireplace installation
• Duct work (e.g. cooling, dust collection, exhaust, heating and ventilation) installation
• Ventilation equipment installation
• Heating and ventilation system component (e.g. air registers, diffusers, and filters) installation

4. Our Mission and Vision Statement

• Our Vision is to become the number one the heating, ventilation and air conditioning (HVAC) company in the whole of Miami Beach – Florida with active presence in major cities in the United States of America.
• Our mission as a heating, ventilation and air conditioning (HVAC) company is to develop a highly successful, profitable all round HVAC business which provides quality services in our community and to become a standard for an ideal HVAC business not only in the State of Miami but also throughout the United States of America where we intend opening our operations and selling our franchise.

Our Business Structure

We are quite aware that the success of any business lies in the foundation on which the business is built on, which is why we have decided to build our heating, ventilation and air conditioning (HVAC) company on the right business foundation.

As a matter of fact, we are set out to build a heating, ventilation and air conditioning (HVAC) business that will be a standard for the heating, ventilation and air conditioning (HVAC) industry in the United States of America. We want to build a business of dedicated workforce who will go all the way to ensure that our customers are satisfied and they get value for their money.

In other to achieve this, we aware that it takes a business with the right employees and structure to achieve all what we have set to achieve, which is why will be putting structures and processes in place that will help us deliver excellent services and run the business on autopilot.

The success of our heating, ventilation and air conditioning (HVAC) business will be anchored on the team not on any individual. With the wide range of our service offerings, we are only expected to employ more than it is required to run a conventional heating, ventilation and air conditioning (HVAC) business.

Definitely, we will have various employees to man the various services offering of Capstone® Engineering Services Ltd. Capstone® Engineering Services Ltd will employ professionals and skilled people to occupy the following position;

• Chief Executive Officer
• Human Resource and Admin Manager

Accountant / Cashier

Marketing and Sales Executive

• HVAC Technicians (6)

Client Service Executive

• Truck / Van` Driver s

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Design job descriptions with KPI to drive performance management for clients
• Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Oversees the smooth running of the daily office activities.
• Identifies, prioritize, and reach out to new clients, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of projects.
• Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
• Responsible for handling business research, market surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represents Capstone® Engineering Services Ltd in strategic meetings
• Helps to increase sales and growth for Capstone® Engineering Services Ltd.
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for the organization
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for Capstone® Engineering Services Ltd
• Serves as internal auditor for Capstone® Engineering Services Ltd.
• Welcomes clients and visitors by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the manager in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products and, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries

HVAC Technicians (6):

• Responsible for handling core services such as Air conditioning system installation (except window units), Air vent installation, Furnace conversions (i.e. from one fuel to another), Refrigeration system (e.g. commercial, industrial or scientific) installation, Heating, ventilation and air conditioning (HVAC) services, Furnace humidifier installation, Natural gas fireplace installation, Duct work (e.g. cooling, dust collection, exhaust, heating and ventilation) installation, Ventilation equipment installation, Heating and ventilation system component (e.g. air registers, diffusers, and filters) installation et al.
• Handles any other duty as assigned by the manager,

Truck / Van Driver:

• Responsible for transporting equipment, equipment and workers to project site
• Runs errand for the organization

6. SWOT Analysis

Heating, ventilation and air conditioning (HVAC) business is one of the many businesses that can easily generate sales with little stress as long as they are well positioned and equipped to carry out their services. We are building a standard heating, ventilation and air conditioning (HVAC) business with variety of services which is why we have decided to subject our business idea (company) to SWOT Analysis.

Ordinarily we can successfully run a normal heating, ventilation and air conditioning (HVAC) business without the stress of going through the required protocol of setting up a new business including writing a detailed business plan, but because of the nature of the kind of heating, ventilation and air conditioning (HVAC) business we want to establish, we don’t have any option other than to follow due process.

We hired the services of Mr. Coleman Carrington, an HR and Business consultant with bias in startups to help us conduct SWOT analysis for our company and he did a pretty job for us. Here is a of the result we got from the SWOT analysis that was conducted on behalf of Capstone® Engineering Services Ltd;

Capstone® Engineering Services Ltd is centrally located in a thriving real estate / construction location in Miami Beach – Florida; our location is in fact one of our major strength. Another strength that counts for us is the power of our team; our workforce and management.

We have a team that are dedicated and well – groomed in the heating, ventilation and air conditioning (HVAC) industry.

Capstone® Engineering Services Ltd is a new business which is owned by an individual (family), and we may not have the financial muscle to sustain the kind of publicity we want to give our business and also to attract some of the highly experienced technicians in the heating, ventilation and air conditioning (HVAC) industry.

• Opportunities:

We are centrally located in one of the busiest area in Miami – Beach, Florida and we are open to all the available opportunities that the city has to offer. Our business concept also positioned us to be a one stop shop in the heating, ventilation and air conditioning (HVAC) industry.

Some of the threats that is likely going to confront Capstone® Engineering Services Ltd is unfavorable government policies, downturn in the economy which is likely going to affect consumers spending and of course emergence of new competitors within the same location where ours is located.

7. MARKET ANALYSIS

• Market Trends

If you are conversant with the recent trends in the real estate / construction industry, you should have noticed that in recent building construction the design, installation, and control systems of these functions are integrated into one or more HVAC systems. This goes to show that the HVAC industry is indeed playing a major role in the real estate / construction industry.

The heating, ventilation and air conditioning (HVAC) market is a market that is dependent on loads of factors. The fact that it helps achieve the desired indoor temperature and also help in saving energy gives room for people to patronize the services.

Of course the heating, ventilation and air conditioning (HVAC) business responds to the increase in household spending and improvement in the economy which is why it trendy to find the heating, ventilation and air conditioning (HVAC) industry businesses located around areas where construction, renovation projects and real estate business is truly thriving.

Another common trend over the years in the heating, ventilation and air conditioning (HVAC) industry is that it is quite difficult to find a company dominating the industry; it is an industry that is open to as many people that has what it takes to favorably compete in the industry.

8. Our Target Market

Before choosing a location for our heating, ventilation and air conditioning (HVAC) business, we conducted our feasibility studies and market survey and we were able to identify those who will benefit greatly from our service offerings.

Basically those who will benefit from our service offerings are households, facility managers, real estate companies, constructions companies and government et al. They cut across various sectors of the economy.

The demographic component of those who need the services of a heating, ventilation and air conditioning (HVAC) services spreads across the public sector, the organized private sector, and individuals from different strata of the society and from all walks of life but most importantly every one who can afford to rent, lease or purchase an apartment / facility et al no matter their income level.

Below is a list of the people and organizations that our heating, ventilation and air conditioning (HVAC) industry services is designed for;

• The public sector; government ministries, agencies and parastatals.
• Organized private sector (construction companies and real estate companies)
• Facility managers
• Restaurants
• Hotels and Motels
• Residential areas
• Religious Centers
• Educational Facilities
• Medical facility

Our Competitive Advantage

Our competitive edge is that Capstone® Engineering Services Ltd is centrally located in a thriving real estate / construction location in Miami Beach – Florida; our location is in fact one of our major strength. Another strength that counts for us is the power of our team; our workforce and management. We have a team that are dedicated and well – groomed in the heating, ventilation and air conditioning (HVAC) industry.

We can confidently say that the location of Capstone® Engineering Services Ltd will definitely count as a positive for us amongst any competitor that might start a heating, ventilation and air conditioning (HVAC) business or any other related business in same location where ours is located.

For the time being, Capstone® Engineering Services Ltd has no real competitors that can compete with the quality of services we offer and our business offerings et al. Our customer service will be customized to meet the needs of all our customers.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups heating, ventilation and air conditioning (HVAC) business and other related businesses in the United States) in the industry.

It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Capstone® Engineering Services Ltd is established with the aim of maximizing profits in the heating, ventilation and air conditioning (HVAC) industry and we are going to go all the way out to ensure that we do all it takes to attract both individual clients and corporate clients on a regular basis.

Capstone® Engineering Services Ltd will generate income by offering the following services;

10. Sales Forecast

One thing is certain, there would always be corporate organization and individual clients who would need the services of heating, ventilation and air conditioning (HVAC) business.

We are well positioned to take on the available market in Miami – Beach, Florida and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow our heating, ventilation and air conditioning (HVAC) business and our clientele base.

We have been able to critically examine the heating, ventilation and air conditioning (HVAC) industry – market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection are based on information gathered on the field and some assumptions that are peculiar to similar startups in Miami – Beach, Florida.

Below is the sales projection for Capstone® Engineering Services Ltd, it is based on the location of our business and of course the wide range of related services that we will be offering;

• First Year-: $250,000
• Second Year -: $550,000
• Third Year -: $1,000,000

N.B : This projection is done based on what is obtainable in the pressure washing and industrial cleaning industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

The marketing strategy for Capstone® Engineering Services Ltd is going to be driven basically by excellent customers service and quality service delivery. We will ensure that we build a loyal customer base. We want to drive sales via the output of our jobs and via referral from our satisfied customers.

We are quite aware of how satisfied customers drive business growth especially businesses like heating, ventilation and air conditioning (HVAC) business and related services.

Capstone® Engineering Services Ltd is a business that is strategically located and we are going to maximize the opportunities that is available which is why we spend more to locate the business in a location that will be visible and accessible to our target market.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of Capstone® Engineering Services Ltd.

Our goal is to grow Capstone® Engineering Services Ltd to become the leading heating, ventilation and air conditioning (HVAC) company in Miami – Beach, Florida which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with in the heating, ventilation and air conditioning (HVAC) industry.

Capstone® Engineering Services Ltd is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our heating, ventilation and air conditioning (HVAC) business by sending introductory letters alongside our brochure to corporate organizations, households and key stake holders in Miami – Beach, Florida.
• Print out fliers and business cards and strategically drop them in offices, libraries, public facilities and train stations et al.
• Use friends and family to spread word about our business
• Post information about Capstone® Engineering Services Ltd and the services we offer on bulletin boards in places like schools, libraries, and local coffee shops et al
• Placing a small or classified advertisement in the newspaper, or local publication about Capstone® Engineering Services Ltd and the services we offer
• Leverage on referral networks such as agencies that will attract clients who would need our customized services
• Advertise Capstone® Engineering Services Ltd in relevant magazines, newspapers, TV stations, and radio station.
• Attend relevant expos, seminars, and business fairs et al to market our services
• Engage in direct marketing approach
• Encourage the use of Word of mouth marketing from loyal and satisfied customers
• Join local chambers of commerce and industry to market our services.

11. Publicity and Advertising Strategy

Capstone® Engineering Services Ltd is set to create a standard for heating, ventilation and air conditioning (HVAC) business in Miami – Beach, Florida and throughout the United States of America which is why we will go all the way to adopt and apply best practices to promote our business. Good enough there is no hard and fast rule on how to advertise or heating, ventilation and air conditioning (HVAC) business.

We will ensure that we leverage on all conventional and non – conventional publicity and advertising technique to promote our heating, ventilation and air conditioning (HVAC) business. Here are the platforms we intend leveraging on to promote and advertise Capstone® Engineering Services Ltd;

• Encourage our loyal customers to help us use Word of Mouth mode of advertisement (referrals)
• Advertise our heating, ventilation and air conditioning (HVAC) business in relevant magazines, local newspaper, local TV stations and local radio station
• Promote our business online via our official website
• List our business on local directories (yellow pages)
• Sponsor relevant community programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
• Install our Bill Boards on strategic locations
• Leverage Direct coupon mailing approach
• Engage in road show from time to time in target communities
• Distribute our fliers and handbills in target areas such as construction sites, residential estates and business districts et al

12. Our Pricing Strategy

Our pricing system is going to be based on what is obtainable in the heating, ventilation and air conditioning (HVAC) industry, we don’t intend to charge more (except for premium and customized services) and we don’t intend to charge less than our competitors are offering in Miami – Beach, Florida.

Be that as it may, we have put plans in place to offer discount services once in a while and also to reward our loyal customers especially when they refer clients to us.

• Payment Options

At Capstone® Engineering Services Ltd, our payment policy will be all inclusive because we are quite aware that different clients would prefer different payment options as it suits them.

Here are the payment options that we will make available to our clients;

• Payment by via bank transfer
• Payment via online bank transfer
• Payment via check
• Payment via bank draft
• Payment via mobile money
• Payment with cash

In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches.

13. Startup Expenditure (Budget)

We have been able to pull cash that will be enough for us to successfully launch a standard heating, ventilation and air conditioning (HVAC) company in Miami – Beach, Florida, US. These are the key areas where we will spend our start – up capital on;

• The Total Fee for Registering the Business in Miami – Beach, Florida – $750.
• Legal expenses for obtaining licenses and permits – $1,500.
• Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• Cost for hiring Business Consultant – $2,000.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,800.
• Cost of accounting software, CRM software and Payroll Software – $3,000
• Cost for leasing facility for our corporate office and store – $70,000.
• Cost for facility remodeling – $50,000.
• Other start-up expenses including stationery – $1000
• Phone and utility deposits – ($3,500).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
• The cost for Start-up inventory – $15,000
• Cost for equipment (cash register, security, ventilation, signage) – $13,750
• Cost of heating, ventilation and air conditioning (HVAC) tools – $50,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, tables and chairs et al): $4,000.
• The cost of Launching our official Website: $600
• The cost for our grand opening party: $1,500
• Miscellaneous: $5,000

We would need an estimate of $250,000 to successfully launch our heating, ventilation and air conditioning (HVAC) business in Miami – Beach, Florida, US.

Generating Funding / Startup Capstone® Engineering Services Ltd

Capstone® Engineering Services Ltd is a business that will be owned and managed by Engr. Robert Downey and Family. They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings and sale of his stocks
• Generate part of the start – up capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $100,000 (Personal savings $70,000 and soft loan from family members $30,000) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account

14. Sustainability and Expansion Strategy

Part of the plans we have in place to sustain Capstone® Engineering Services Ltd is to ensure that we continue to deliver quality services, improvise on how to do things faster and cheaper. We are not going to relent in providing conducive environment for our workers and also the required trainings that will help them deliver excellent services at all times.

From our findings, another factor that kills new business is financial leakages. In order to plug financial leakages, the management of Capstone® Engineering Services Ltd adopt the use of payment machine and accounting software to run the business.

We are quite aware that our customers are key component to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better. We will not waste time in adopting new technology, best practices and diversifying our services; expand our product and service offerings once the need arises.

Our key sustainability and expansion strategy is to ensure that we only hire competent and technically sound employees create a conducive working environment and employee benefits for our staff members.

We know that if we implement our business strategies, we will grow our recording studio business beyond Los Angeles – California to other states in the U.S in record time.

Check List / Milestone

• Business Name Availability Check:>Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Acquiring facility and remodeling the facility: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the Needed pressure washing machines and industrial cleaning equipment, electronic appliances, office appliances and bar accessories: In progress
• Creating Official Website for the Company: Completed
• Creating Awareness for the business both online and in the neighborhood: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Establishing business relationship with vendors – suppliers of all our needed cleaning accessories and supplies et al: In Progress

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HVAC Business Plan Sample

Published Jan.24, 2018

Updated Apr.23, 2024

By: Noor Muhammad

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Table of Content

Do you want to start own HVAC business?

Are you thinking about starting a HVAC business ? Well, this business requires a lot of capital, manpower and industry knowledge but the rate of return you get after investing in it is simply worth the efforts. The biggest advantage in starting this business is that HVAC is one of the basic necessities of all large-scale buildings and as the number of these buildings increase, the market demand of hvac company business plan also increases. Moreover, after the installation of HVAC systems, they require regular inspection, maintenance, and repair that’s why this business yields a consistent revenue throughout the year. As with all businesses, the first step before starting any venture is to write a comprehensive hvac company business plan which will form the basis of your company’s future operations and decisions. A hvac company business plan provides information about everything which you will be needing to start your hvac company business plan as well as provides detailed guidelines about everything you will be doing in the next few years. If you are wondering how to write an effective plan of a business then here we are providingyou the business plan of an HVAC business startup named ‘Gan Engineering Services’.

Executive Summary

2.1 the business.

Gan Engineering Services will be a licensed and insured HVAC retailing, servicing and maintenance company which will offer a wide range of services revolving around the HVAC (heating, ventilation, and air conditioning) systems. The company will be located in the main commercial center of the Manhattan borough in the New York City. Gan Engineering Services will be owned and operated by Gan Koch who has been associated with HVAC industry for the last 20 years and had been serving in Daikin Industries as the Regional Manager of the New York City for the last seven years. Being an expert in this field, Gan knows exactly how to start a HVAC business .

2.2 Management & Services

The company will be managed by Gan and his team of technicians and engineers. We will provide high-quality and affordable installation, inspection, cleaning, maintenance, and repair services. We will also ensure a top-notch customer service. Our every employee and technician will treat our customers and their valuable properties with utmost respect so as to build a long-lasting relationship with them. Our services will cost nearly the same as that of our competitors. You can also obtain a 10% discount for the first three months by getting our promotional heating and air business cards .

2.3 Customers & Competitive Analysis

The company aims to serve the local businesses, restaurants and hotels, private and government institutions, residential buildings, shopping malls, supermarkets, and high-rise commercial buildings located within the New York City. Although we have a lot of competitors yet we believe that our innovative idea will help us surpass all of them. We will introduce a BIM-integrated automatic fault detection system linked with a Building Information Model, which will directly notify us (the service provider) whenever a fault develops along with its location. So, no time will be wasted in finding the location of the fault and it will get treated as soon as possible, saving you a lot of inconvenience and money. This system can be easily installed in new as well as the existing HVAC systems.

2.4 Target of the Company

We aim to revolutionize the HVAC industry by our BIM-integrated automatic fault detection system. Our target is to become the best HVAC service provider in the New York City within next three years of our launch.

The 3 years targeted profit forecast is given in the chart below:

Company Summary

3.1 company owner.

Gan Engineering Services will be owned and operated by Gan Koch who has been associated with HVAC industry for the last 20 years. Gan served in many HVAC industries after completing his Masters in Thermodynamics from Michigan State University. For the last seven years, he had been serving in Daikin Industries as the Regional Manager of the New York City. Being an expert in this industry, Gan has all the resources, experience and knowledge needed to start an HVAC company business plan .

3.2 Why the Business is being started

Gan plans to change the traditional approach of repair and maintenance of HVAC systems by integrating the system with a Building Information Model and automatic fault detection system. The aim is to automate the entire system so as to decrease the lag time needed for maintenance and repair of HVAC systems.

3.3 How the Business will be started

Gan hired professional experts from various fields to help him craft a detailed map of his HVAC company business plan . The financial experts have forecasted following costs for expenses, assets, investment group for business , and loans for the Start-up.

The detailed start-up requirements, start-up funding, start-up expenses, total assets, total funding required, total liabilities, total planned investment, total capital and liabilities as forecasted by experts, is given below:

Services for customers

Gan Engineering Services will be a licensed and insured HVAC retailing, servicing and maintenance company which will offer a wide range of services revolving around the HVAC (heating, ventilation, and air conditioning) systems. Our HVAC business model describes in detail the services we will provide after starting HVAC business . We will mainly provide four types of services:

• Installation: We will offer complete as well as partial HVAC system installation including the installation of heating and cooling system, refrigeration system, air venting system, air conditioning system, furnaces and humidifier, and duct system. Our customers can purchase these HVAC systems and their components either from the manufacturing company or at retail price from us.
• Inspection: HVAC systems require regular inspection at least two times a year so as to work properly. We will offer inspection services to the HVAC systems installed by us or from other service providers. This inspection is extremely important to identify and locate any fault in the system, which if left ignored, can lead to severe and costlier problems.
• Maintenance: HVAC systems require maintenance at least once a year so as to work at their full capacity and efficiency. We will provide maintenance and cleaning services to ensure that HVAC systems and all related components keep working properly.
• Repair: We will offer all sort of repairing services in case the HVAC systems or any of their related components develop a fault. To ensure that your faults are identified, reported and removed in their early stages, we will implement an innovative technology while installing HVAC systems. The technology will comprise of a Building Information Model integrated with an automatic fault detection system that will notify us, the service providers, whenever a fault is detected. Hence, the fault will be removed rapidly in their early stages while they are easier and cheaper to treat.

Marketing Analysis of HVAC business

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If you are developing a HVAC business plan for your business then make sure to pay special attention to its marketing analysis and also take help from this HVAC business plan template . The most important component of an effective HVAC business plan sample is its marketing analysis that’s why Gan hired the services of marketing experts to help him develop a good business plan for HVAC company . The success of a startup totally depends upon how it markets itself to target its specific customer groups. A successful marketing strategy can only be developed after knowing the target audience and potential customers. Our marketing experts carried out an extensive research to identify our target customers and develop an effective HVAC marketing plan to attract them. There are four main steps to carry out an accurate marketing analysis which are to identify the current market trends of the HVAC company business plan, identify your target audience and potential customers, set out the business targets to achieve, and finally set the prices of your products or services.

5.1 Market Trends

The HVAC market was worth more than $81 billion as of 2015. The market is expected to grow by 5.5 percent each year through 2020, making its worth up to $130.7 billion by that time. This increase in the market is credited to many factors, mainly the increasing number of commercial businesses and large-scale residential settlements. The increasing population and economic activity have resulted in an increase in the number of large-scale built assets. Heating, ventilation and air conditioning (HVAC) system is an integral part of all built assets and their market also increased with the increasing number of built assets. Considering their importance, HVAC system must be properly, installed, maintained, and repaired, thereby creating the demand for businesses like us. In short, the market for this industry has a lot of potential, provided that you plan your business successfully.

5.2 Marketing Segmentation

Our target customers include local businesses, restaurants and hotels, private and government institutions, residential buildings, shopping malls, supermarkets, and high-rise commercial buildings located within the New York City. We are strategically located in the Central Business District of the city so as to target as many businesses as possible as well as the residential settlements located at a 15 minutes’ drive from us. Our marketing experts have identified following type of target audience which can become the future customers of our services.

The detailed marketing segmentation of our target audience is as follows:

Business plan for investors

5.2.1 residential buildings:.

There are hundreds of large-scale residential buildings, apartments, and condos located in the residential zone of the city. Most of these buildings have centralized HVAC systems installed in them which frequently require maintenance and repair services due to their excessive use. Many newly constructed buildings also require HVAC system installation services. We will target this customer group by providing our high-quality and affordable installation, inspection, cleaning, maintenance, and repair services.

5.2.2 Institutional Buildings:

We will also target hundreds of schools, colleges, offices, hospitals, municipal authorities and other institutions located in the New York City. These institutional buildings will not require our installation services since nearly all of them have proper HVAC systems installed in them. But most of these buildings have decades-old HVAC systems, which frequently need repair and maintenance services.

5.2.3 Commercial Buildings:

There are thousands of commercial buildings in the Central Business District of the city housing local, national and international businesses. These buildings have complex HVAC systems installed in them which frequently require inspection, cleaning, maintenance, and repair services due to their excessive use. This target group will contribute a major part of the revenue to our business and hence will dictate our marketing strategy.

5.2.4 Hotels & Restaurants:

Lastly, we will target the hotels, food courts, and restaurants located in the city. This target group, due to its particular nature of the business, has different and more stringent HVAC needs as compared to the other groups mentioned above. Hotels and restaurants have more refrigeration needs so as to store the food products as compared to that provided by normal HVAC systems. We will ensure that this target group meets its refrigeration needs and its entire HVAC system keeps working in a perfect condition by our high-quality services. The detailed market analysis of our potential customers is given in the following table:

5.2 Business Target

We aim to revolutionize the HVAC industry by our BIM-integrated automatic fault detection system. Our target is to become the best HVAC service provider of the New York City within the next 3 years of our launch.

5.3 Product Pricing

Setting the prices of products or services is the most challenging part of any startup because it is very difficult to achieve the MARR (minimum attractive rate of return) while also attracting the customers towards it. Considering all restraints and aspects, we have priced all of our services in the similar ranges as of our competitors. The installation cost will increase 10% more than the normal installation price in the market, if you wish to install automatic fault detection system since it requires a lot of expertise.

After identifying the market trends, the market demand, and the potential customers of the startup, the next step is to develop an ingenious sales strategy to attract those customers toward us. Like marketing analysis, sales strategy is also an important component of an effective business plan for HVAC company so make sure to plan it before starting an HVAC business . Gan carried out an extensive research about various marketing strategies of HVAC business management before developing one for his company. The sales strategy developed by Gan and our experts discusses the competition in the current market, the aspects which will give us an advantage over other competitors, the methods to attract people towards us, and finally the sales pattern of our company in the next three years.

6.1 Competitive Analysis:

We have a really tough competition ahead of us because there are hundreds of other established HVAC companies in the New York City. But we believe that we will surpass all of our competitors in no time due to various reasons. The first and the most important of which is our innovative idea of BIM-integrated automatic fault detection system. Although fault detection systems are already in use in large complexes yet these systems mostly notify a fault in the form of alarm. After a fault is reported by alarm, Facility Managers spend a lot of time in finding the exact location of a fault or the component which has developed it. The process is often very time-consuming resulting in a lot of inconvenience for the management as well as the end-users. Often small faults lead to bigger and costlier problems due to the delay caused by their treatment. Our BIM-integrated automatic fault detection system links the system with a Building Information Model, which directly notifies us (the service provider) whenever a fault develops along with its location. So, no time is wasted in finding the location of the fault and it gets treated as soon as possible, saving you a lot of inconvenience and money as well. This system can be easily installed in new as well as the existing HVAC systems. We believe that if marketed properly this concept can revolutionize the HVAC industry and give us unparalleled superiority in this business. Our second competitive advantage will be our exceptional customer service. We will make sure that our technicians provide highest-quality work, at least possible time and in the best possible way. We will make sure that your property does not get damaged during our cleaning, maintenance, and repair work.

6.2 Sales Strategy

We will introduce our startup to our target customers and stakeholders by sending brochures and introductory letters about us. We will carry out a large-scale social media campaign for our advertisement. We will also offer 10% discount on our services so as to increase sales during the first three months of our launch.

6.3 Sales Forecast

Considering the market demand, our innovative concept and the quality of our services, our sales pattern is expected to increase with years. By analyzing our market segmentation strategy, our experts have forecasted the following sales on a yearly basis which are summarized in the column charts.

The detailed information about sales forecast, total unit sales, total sales is given in the following table:

Personnel plan

Gan hired experts from various fields so as to help him understand how to start a heating and air conditioning business . He acquired the services of a Human Resource Manager to develop the following personnel plan for the staff needed for the company along with their average salaries.

7.1 Company Staff

Gan will act as the Chief Operating Officer of the company. The company will initially hire following people:

• 1 Front Desk Officer to act as a receptionist in the company head office
• 2 Administrators / Accountants to maintain financial records
• 3 Engineers for leading and directing the team of HVAC technicians
• 4 Sales and Marketing Executives responsible for discovering new ventures
• 10 HVAC Technicians for installing, cleaning, inspecting, maintaining and repairing HVAC systems and related components
• 2 Drivers to facilitate the movement of team and equipment throughout the city

To ensure the best quality service, all employees will be selected through vigorous testing and will be trained for a month before starting their jobs.

7.2 Average Salary of Employees

The following table shows the forecasted data about employees and their salaries for next three years.

Financial Plan

Gan hired financial experts to help him understand how much does it cost to start an HVAC business . The financial plan created by them outlines the financial development of the company over the next three years. The company will be solely financed by Gan and he will also control the direction of business to make sure that it is expanding at the forecasted rate. No equity funding or outside loan will be required unless the company expands faster than forecasted.

8.1 Important Assumptions

The company’s financial projections are forecasted on the basis of following assumptions.

8.2 Brake-even Analysis

The following graph shows the company’s Brake-even Analysis.

The following table shows the company’s Brake-even Analysis.

8.3 Projected Profit and Loss

The following charts show the company’s expected Profit and Loss situation on the monthly and yearly basis.

8.3.1 Profit Monthly

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

The following table shows detailed information about profit business plan and loss, and total cost of sales.

8.4 Projected Cash Flow

The following column diagram shows the projected cash flow.

The following table shows detailed data about pro forma cash flow, subtotal cash from operations, subtotal cash received, sub-total spent on operations, subtotal cash spent.

8.5 Projected Balance Sheet

The following projected balance sheet shows data about total current assets, total long-term assets, total assets, subtotal current liabilities, total liabilities, total capital, total liabilities and capital.

8.6 Business Ratios

The following table shows data about business ratios, ratio analysis, total assets, net worth.

Download HVAC Business Plan Sample in pdf

Professional writers OGS capital specialized also on themes: interior design business plan , architecture firm business plan , construction management business plan , engineering consulting business plan and etc.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

One thought on “ HVAC Business Plan Sample ”

You’re going to want to fix “Brake-Even” (yikes)….

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