The Only HVAC Cheat Sheet You Need for Your Business

  

We have been getting requests to talk about an HVAC business from one of our client-turned-friends. His story is quite dramatic, so we want to share it with you.  

Our good friend has a stable HVAC business now, but it was a different story a few years ago.  

The business was going fine, but his mind wasn’t satisfied with it; he was too preoccupied. Literally, when he used to sleep, he would think, “Tomorrow is another chaotic day. I have to make emergency calls and meet clients, too.” Some days, he wondered if his HVAC business was worth it, as every decision felt like a gamble.  

When we got to know this for the first time, we told him it’s understandable, as running a business like HVAC can be quite chaotic. So, we presented him with a checklist, a sort of cheat sheet that could organize his overall business.  

We called this an HVAC cheat sheet. Generally, an HVAC cheat sheet is a one-page information sheet mentioning the basics of HVAC, and our HVAC business checklist was a one-page too, hence the name.  

If your HVAC business is struggling, or you can’t seem to keep up, this is the only HVAC cheat sheet you need.  

The Common Problems Faced by HVAC Business Owners 

Before we dive deeper into the cheat sheet, first it’s important to address some of the common problems an HVAC business owner may have.  

The Feast or Famine Dilemma 

The Feast or Famine Dilemma is a popular phenomenon in the business world. It describes periods of growth (feast) followed by slumps (famine). If you own a small HVAC business, you must have noticed that some days you are overwhelmed with clients’ calls, while other days, you feel like you have all the time to talk to a bee.  

When you go through the Feast-and-Famine Dilemma, your cash flow dries up, and this is the main problem many small business owners face.  

Do you want to know why it happens?  

It happens because of poor planning, no/proper marketing strategy, and not having a target market.  

Hiring Licensed HVAC Technicians  

HVAC businesses are facing challenges amidst the growth. These include aging infrastructure and skilled labor shortage. Finding good technicians can be like finding a needle in a haystack.   

In the US and Canada, you need licensed HVAC technicians who can show up on time, get the job done, and not give a reason for a bad client review.  

However, if there is a shortage of skilled workers, how do you attract the right talent?  

Inventory Struggle 

There’s nothing worse than doing a job and realizing you are out of equipment. You order replacements, but your clients wonder why their job isn’t finished on time.  

HVAC inventory management is an art, and without a system in place, you can lose both time and money. 

Marketing 

Our friend spent a lot of money on Google Ads but didn’t get enough results. He wondered why his phone wasn’t ringing. The truth is that HVAC businesses are often the victims of bad marketing strategies. They don’t have a clear direction, don’t know where their potential customers are, and don’t know how to target them.  

The Paperwork 

As a small business owner, you have a lot of paperwork to take care of. You have taxes, payrolls, insurance, and others and have a shoebox full of receipts. How can you manage business operations when you are constantly surrounded by papers?  

By the way, we have a great guide on organizing receipts. You can check it out here.  

HVAC Cheat Sheet for Your Business  

Now that we have addressed some of the common problems of an HVAC business, let’s talk about why you clicked on the link. Here’s what an HVAC cheat sheet for business looks like:  

1. Have a Solid Plan 

In any business, you need a roadmap to succeed. In HVAC this means creating a solid HVAC business model that highlights goals, equipment, startup costs, marketing strategy, and long-term plans.   

In addition, if you are planning to start a business, it’s important to choose the right company structure, such as Sole Proprietorship, LLC, or Corporation.  

2. Manage Inventory Costs 

Inventory is a necessary evil, and you need to have stock in place; otherwise, your profits and reputation may falter. You need to ensure stock levels for common parts like air conditioning units so you can do your job without any delay.  

It’s important to note that too much inventory can cause cash flow problems, as your cash gets locked up on unsold products.  

A good way to manage inventory is to get the HVAC software that can track inventory, saving you tons of time.  

Two of the best options you have are Jobber and ServiceTitan. We have reviewed both of them, so you can check which one is better for you.  

3. Who Are You Targeting? 

Identifying your target market is necessary if you want your marketing strategies to work. As questions like:  

• Are you focusing on residential, commercial, or industrial clients?  
• Are you targeting specific audiences like those looking for air conditioning systems only? 
• How can you find people looking for services like yours?  

Answering these questions can narrow down and present you with a complete picture of your target market.  

4. Marketing Strategies 

To find people whom you can target for your business, you need effective marketing campaigns. Local SEO, social media, Email Marketing, and Google Ads can attract several eyeballs for your business.  

Social media could be your business’s most important marketing strategy. You can use Facebook and Instagram to position yourself as the go-to HVAC company in your area. 

Besides, if you are already running an HVAC business, you can ask for reviews from your current clients.  

5. Build a Strong Team  

We talked about labor shortages earlier, but how can you overcome this? The best way is to hire licensed HVAC technicians who can do various jobs, from residential to commercial. 

Pro Tip: You can provide training and incentives to keep technicians engaged.  

Final Thoughts  

So, now you have the HVAC Cheat Sheet to run your business. With these simple yet effective tips, you can scale your HVAC business and avoid inventory struggles, cash flow problems, and bad business strategies.  

You could be here for the first time. So, let’s talk about what we do actually.  

We offer fractional CFO services to manage inventory, maintain positive cash flow, and provide solid business consultation. We do this to ensure you don’t have to think about business (like our friend) when you sleep at night.  

For more, you can check out our CFO services page or schedule a free consultation if you don’t want to read 😉   

FAQs 

How big is the HVAC business? 

The global HVAC market was worth around $159 billion in 2022 and is expected to reach $227 billion by 2028.  

Is HVAC profitable? 

The HVAC business’s profit margin ranges between 2% and 20%, depending on the quality of services and proper management.