More and more people are looking for a reliable heating, ventilation, and air-conditioning (HVAC) service provider. The demand is perhaps due to the latest energy-efficient HVAC systems as well as the constant increase in urbanization. Moreover, a recent report states that HVAC businesses employment opportunities are predicted to experience an increase of 13% 2018-2028. This means that launching an HVAC business could offer more security than other forms of new business endeavors.
Thus, if you’re thinking of starting an HVAC service business, now’s the perfect time to do so. However, keep in mind that launching a start-up in any industry can be daunting. Fortunately, these tips will provide some insights that’ll allow you to start an HVAC service business smoothly. Read on!
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Determine what to charge
To be a successful HVAC service provider, you need to figure out the prices for your services. Take note that setting your service at too high a price may discourage potential clients while setting your prices too low will hurt your finances.
Essentially, your team’s experience, time, skills, and even the materials you use should be the basis for your prices. Fortunately, using industry best practice estimate templates as well as other administrative tools, you can much more easily calculate the cost of your services and quote for jobs faster. This has the overall effect of helping you win more jobs.
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Prepare for fees and paperwork
Starting any type of business implies plenty of fees and paperwork. However, the money you’ll spend will generate a positive return on investment (ROI), especially if you consider using management software like Jobber. Management software like this which has been developed specifically for HVAC businesses can be revolutionary when managing technicians’ time and schedules.
Consider these types of paperwork before starting your HVAC service business:
Business registration Your business needs to be registered formally before you can offer HVAC services in your state. According to this Inc Authority review by SmallBusinessHQ, businesses that are registered as LLCs by the agency enjoy more benefits such as tax deductions and liability protection.
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Local Business License:
Before starting any type of business, check with your local authorities if you need a business license.
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State Contractor’s License:
In addition to a business license, you’ll also need a State Contractor’s License. To have one, present some evidence that you have the necessary HVAC experience to operate an HVAC service business. Lastly, you need to pass the contractor’s license exam to acquire a State Contractor’s License.
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HVAC Contractor’s License:
Once you have a Contractor’s License, you can now file for an HVAC Contractor’s License and decide on a name for your business. Take note that it may take months before your business name gets approved.
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Contractor’s Insurance:
If you want financial protection in case you or your team get injured during the job, have liability insurance. Speaking of team members, you’ll also need to set up a worker’s compensation insurance.
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Have the necessary certificates
Now that you know the necessary paperwork, the next step is to have a federal Section 608 Technician certification, which is a must for all HVAC technicians. Under the EPA (Environmental Protection Agency) Section 608, you have to pass at least one out of these four certification categories, namely:
- EPA Type I caters services for small appliances.
- EPA Type II caters services to high-pressure systems.
- EPA Type III caters services to low-pressure systems.
- Universal EPA covers the three types of EPA certifications.
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Assemble the right team
Once you’ve perfected your business marketing and gained loyal customers, you may find yourself lacking manpower. In this case, you need to hire the right HVAC technicians.
As much as possible, you don’t want to hire someone who merely possesses basic technical skills. With the availability of job boards nowadays, you’ll no longer struggle to find the right technician to join your team. However, finding the right employee means you have a clear idea of what type of employee you’re looking for before posting a job ad.
Moreover, despite being expert technicians, you still need to train new hires. This way, they’ll have an idea of your expected quality. So, ensure newly hired technicians are receptive to training and have the necessary experience handling the type of HVAC services your business offers.
Final words
Just because HVAC businesses are in demand, it doesn’t mean that starting one will automatically give you financial freedom. Around half of start-ups fail within the first year. While it’s true that plenty of start-up HVAC businesses fail, to be one of the best HVAC companies, you need to be consistent with your efforts.
In addition to consistency, you must also have a proper plan (both short- and long-term) in place so you can monitor your business growth. Lastly, with the right mindset, effort, as well as a handful of tips and strategies, you’ll surely make a handsome profit in the HVAC industry.