If you are thinking of starting your own HVAC business, then we would like to congratulate you. This is one business for which the demand will never decrease or cease, hence you can be assured to have enough business even in recessions or any economic turbulence.
However, any new business requires proper planning and understanding of the intricacies of the concerned industry. We have gathered some useful information to help you with some of the essential things that you need to consider when starting an HVAC Company. So, read on.
Heating Ventilation and Air Conditioning or HVAC is basically a service-oriented business. An HVAC specialist is always on high demand for the installation and repair work of air conditioners and heating systems. They are also responsible for the creation of ventilation ducts. It can work as a great home business idea, but you must have the appropriate set of skills to serve the clients.
One of the most significant advantages of foraying into this industry is that you can run this business part-time while you keep your day job. When your client base increases and orders start to flow in rapidly, you may then consider quitting your job and doing it full time. An example of a good HVAC company is Otto Heating & Cooling Ltd that offers both commercial and residential HVAC services such as:
• Replacements and Installations
• Repair and Maintenance
• Commercial Services
• New Construction HVAC Installations
To start an HVAC business, you must gain enough experience in installing and repairing different air conditioners and heating systems. You should gather enough hands-on experience on the various technical intricacies of the business. Please bear in mind that this is a pretty risky business with a lot of rules that you must adhere to regarding the handling of equipment. So, you require specific training and enough experience before you start your own business
If you have already worked in an HVAC company before starting your business, you will probably have a certification that you can use. If not, you will need to get certified by the North American Technicians Association, the organization that issues certification to the HVAC business owners and HVAC specialists. Some clients may ask you to produce the certification before giving you the contract, so this is necessary.
Before you step into this or any other business, you will first need a foolproof plan to ensure that if something goes wrong, you always have a plan B or C to fall back on. For this business, you will need to figure out how many and what type of equipment is needed to start the business, from where the capital funds will come, and how you plan to execute your idea. You will also need to think of a proper sales and marketing strategy to acquire customers.
One of the first and foremost things in your business plan should be to decide how much capital you need to get started with this business. In our research, we found that capital of $5,000 -$10,000 is enough to start an HVAC business. The fund will be mostly used to acquire the equipment that is required to run the business and promote it.
If you have savings to fund the capital or borrow money from friends, then that is a safer plan. Alternatively, you may opt for a bank loan to cover the initial expenses to get your business started, but bear in mind that this is risky.
After you have set up the business, next, you will need to carry out the proper registrations to allow the business to function as a legal entity. For this, you will need to incorporate your business and get it registered at the Bureau for Company Registration, responsible for business registration. Read the legal requirements of your state or province to find out what other licenses and registrations are required.
Just setting up a business is not enough, and you will also need to figure out the insurance that might occur as a result of neglect or accidents when the executives are out for service. Look for a basic insurance package when you are starting off to cover the immediate business requirements and any liabilities. As your business expands, you may need to look into liability insurance along with workers’ compensation insurance to support your business.