sample business plan for hvac company

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

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.

Boosting Your Bottom Line: How to Maximize Training ROI

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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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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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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.  

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.  

HVAC Business Plan FAQs

What is the easiest way to complete my hvac company business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your HVAC Company Business Plan.

Where Can I Download an HVAC Business Plan PDF?

You can download our HVAC business plan PDF  here. This is a business plan template you can use in PDF format.

What is the Goal of a Business Plan's Executive Summary?

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

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Other Helpful Business Plan Articles & Templates

Mastering HVAC Business Plans: A Comprehensive Guide with Templates

Diving into the HVAC industry or looking to pump some fresh air into your existing business? Well, you’ve landed in the right spot. Crafting a solid HVAC business plan might sound like just another item on your never-ending to-do list, but trust me, it’s the backbone of your venture’s success.

Whether you’re just starting out or aiming to elevate your game, a well-thought-out business plan is your roadmap to navigating the competitive landscape, securing those all-important funds, and steering your business toward growth.

This comprehensive guide walks you through every step of the process. We’re talking about a no-fluff, straight-to-the-point guide that’ll help you craft a plan as efficient as a top-notch HVAC system.

So, let’s roll up our sleeves and get down to business, shall we?

Bonus: Get a free HVAC business plan template to quickly and easily plan map out your business strategy. It’s a blueprint designed to guide you through each critical component of your business plan, ensuring nothing gets overlooked.

Key Components of a Successful HVAC Business Plan

Get your free hvac business plan here, you’re now ready to create your hvac business plan, frequently asked questions about the hvac business plan, 1. executive summary.

The executive summary is your business plan’s handshake. It’s your first impression on the potential investors, partners, or even key employees.

An effective executive summary is clear, concise, and compelling. It must outline:

• About your business,
• your HVAC business’s mission and values,
• your business goals,
• and why your business is uniquely positioned to succeed.

It’s also the spot to highlight your financial goals and needs, offering a snapshot of your growth plans and how you intend to achieve them.

Think of the executive summary as your elevator pitch in written form. It needs to grab attention, summarizing the most exciting parts of your business plan and encouraging the reader to dive deeper into the details.

Keep your executive summary short (less than one page). The rest of your business plan will provide all the necessary details to your readers.

2. Company Description

A detailed company description is your opportunity to dive deeper into what your HVAC business does, who it serves, and what sets it apart from competitors.

Here’s how you can structure this section:

a. Start with your business’s foundation: Describe when and why you started your HVAC business, the inspiration behind it, and the journey so far. This narrative helps build a connection with the reader.

b. Outline your HVAC services: List your services, such as installation, maintenance, repair, or energy efficiency consultations. Be specific about what makes your services unique or superior to your competitors.

c. Define your target market: Who are your services designed for? Residential homeowners, commercial businesses, or specialized industries? Understanding your target market is crucial for tailoring your business strategies effectively.

d. Explain your unique value proposition (UVP): What makes your HVAC business the go-to option for your target customers? It could be your exceptional customer service, innovative technology use, or commitment to sustainability. Your UVP is what distinguishes you from the competition.

e. Examples for inspiration: Consider including a brief case study or testimonial that showcases your business’s success in solving a particular problem or fulfilling a need within your target market. This real-life example can illustrate your company’s value and effectiveness.

Your company description should paint a clear picture of your business, its values, and its objectives. It’s not just about what you do but why you do it and who benefits from your services.

This section is where your passion and expertise should shine through. It convinces readers that your HVAC business is not just another HVAC company but a vital service provider dedicated to making a difference in people’s comfort and well-being.

3. Understand Your Competitors

Understanding your competitors is not just about knowing who they are but also their strategies, strengths, weaknesses, and market positioning.

Conduct a thorough competitive analysis to ensure your business can discover its niche and stand out.

Here’s how to tackle this:

a. Identify Your Competitors: List direct competitors (those offering similar services in your area) and indirect competitors (those offering substitute or related services).

b. Analyze Their Strategies and Performance: Look into their services, pricing models, marketing tactics, customer reviews, and market reputation. Tools and resources like their websites, social media profiles, and customer feedback can provide invaluable insights.

c. Evaluate Their Strengths and Weaknesses: Pinpoint what they do well and where they fall short. This can help you identify opportunities to differentiate your services or improve upon areas where competitors are lacking.

d. Position Your HVAC Business: Using the information gathered, determine how your business can offer something unique or better. Find your edge, whether it’s superior customer service, innovative technology solutions, or more competitive pricing.

Include a competitive analysis in your business plan. It demonstrates to investors and stakeholders that you have a deep understanding of the market landscape and are prepared to compete effectively.

This section should showcase your knowledge of the competition and how your HVAC business is positioned for success in comparison.

4. Operational Plan

The operational plan of your HVAC business lays out the nuts and bolts of daily operations. It tells how your company functions on a foundational level. This includes:

a. Legal Structure: Decide on the legal structure of your business (e.g., sole proprietorship, partnership, LLC, corporation). Each has its implications for liability, taxes, and operational complexity. So, choose the one that best suits your business size and goals.

b. Location: Your business location should be strategically chosen based on your target market, accessibility for employees and customers, and the logistics of your service area. Whether you’re operating from a commercial space or a home office, ensure it supports efficient operations.

c. Equipment Needed: Detail the equipment necessary to provide your HVAC services. It includes tools for installation, repair, maintenance, and any computers and vehicles for transportation. Also, consider the technology needed for business operations, such as HVAC scheduling software or customer relationship management (CRM) systems .

d. Operational Workflow: Describe the workflow of your services, from customer inquiry and service scheduling to job completion and follow-up. This includes how appointments are booked, how services are priced and invoiced , and how customer feedback is collected and addressed.

e. Supply Chain: Identify your suppliers for HVAC units, parts, and other necessary materials. Establishing reliable supplier relationships is crucial for maintaining service quality and efficiency.

f. Staffing: Outline your staffing needs, including technicians, customer service representatives, and any administrative or managerial roles. Include plans for recruitment, training, and retention to ensure a skilled and motivated workforce.

Your operational plan should provide a clear roadmap of your HVAC business’s daily functions. It showcases your strategy for delivering services efficiently and effectively. It also informs stakeholders about the practical aspects of your business and demonstrates your preparedness to manage the operational challenges of the HVAC industry.

5. Marketing Strategy

A dynamic and multi-faceted marketing strategy for HVAC businesses is key to attracting and retaining customers. In an industry where trust and reliability are paramount, how you promote your company can make a significant difference in its growth and success.

In this section, write down your current sales and marketing strategies, as well as any new ones you’ll be using this year, such as:

a. HVAC Website: Your digital storefront. Ensure it’s user-friendly, mobile-responsive, and optimized for search engines . Highlight your services, customer testimonials, and contact information prominently.

b. Social Media Marketing: Platforms like Facebook, Instagram, and LinkedIn can help you connect with your community, share valuable tips on HVAC maintenance, and promote special offers.

c. Lead Generation Sites: Use platforms like DemandHub, HomeAdvisor, or Angie’s List to capture leads from customers actively looking for HVAC services.

d. Facebook Page for Your Business: Regularly update your business page with engaging content, service promotions, and helpful HVAC tips to keep your audience engaged and informed.

e. Customer Referral Program: Encourage word-of-mouth marketing by rewarding customers who refer new clients to your business. This can be a powerful tool in building a loyal customer base.

f. Local Services Ads on Google: Take advantage of Google’s Local Services ads to appear at the top of search results when people search for HVAC services in your area.

g. HVAC Business Cards, Flyers, or Door Hangers: Don’t underestimate the power of traditional marketing. Well-designed print materials can be a cost-effective way to reach local customers.

h. Sales Team Strategy: If you have a sales team, outline their roles, responsibilities, and compensation. Detail your strategies for training them on making effective sales calls and converting leads into customers.

For each marketing tactic, setting a budget and measuring the return on investment (ROI) is essential. Estimate your spending for each activity (e.g., $960 to print postcards, $250 for a DIY website) and plan your marketing budget accordingly.

This approach will help you allocate resources effectively and ensure your marketing efforts are targeted and efficient.

6. Financial Projections

Realistic financial projections are crucial for the success of your HVAC business. These projections help you, potential investors, and financial institutions understand the viability of your business model.

Here’s how to approach this:

a. Startup Costs: List all the initial expenses required to get your business off the ground. This includes equipment purchases, vehicle costs, licensing fees, initial marketing expenses, and any other capital investment needed to start operating.

b. Revenue Forecasts: Estimate your sales for the first 3-5 years. Consider factors such as the size of your target market, pricing strategy, and expected market share growth. Be conservative in your estimates and base your projections on realistic market research.

c. Break-even Analysis: Calculate the point at which your business will start to generate a profit. This involves determining the fixed and variable costs and identifying how much revenue is needed to cover these costs. Knowing your break-even point is essential for setting financial goals and assessing the financial health of your business.

d. Profit and Loss Statement: Project your income and expenses over time to show potential profitability. This should include direct costs (like materials and labor), indirect costs (such as marketing and utilities), and your expected profit margins.

e. Cash Flow Projections: Analyze the inflow and outflow of cash to ensure you have enough liquidity to cover day-to-day operations. Positive cash flow is essential for the sustainability of your business.

f. Capital Requirements: If you’re seeking investment or loans, clearly outline how much funding you need and how you’ll use it. This demonstrates to investors that you have a clear plan for using their capital to grow your business.

Financial projections should be based on thorough research and realistic assumptions. They help you plan for the future and demonstrate to stakeholders that your HVAC business is a sound investment.

With DemandHub’s HVAC business plan template, you can assess every aspect of your business, pinpoint areas that require improvement, and maintain focus on the overall vision.

After completing your business plan, you’ll be equipped to attract more clients and run a successful HVAC business.

How Profitable Is the HVAC Industry?

The HVAC industry is highly profitable, with strong demand driven by the need for heating and cooling systems in residential, commercial, and industrial buildings. Profitability depends on service quality, market positioning, and operational efficiency.

What Is an HVAC Business Plan?

An HVAC business plan is a detailed document outlining your business’s goals, strategies, market analysis, operational structure, and financial projections. It is a roadmap for starting and growing your HVAC business, attracting investors, and managing your company effectively.

How Do I Get More Business in HVAC?

To get more business in HVAC, focus on quality service, build a solid online presence, engage in local marketing efforts, offer competitive pricing, and create referral programs. Networking with real estate agents and contractors can also generate new leads.

How Can I Make a Lot of Money in HVAC?

If you want to make a lot of money in HVAC, then:

• specialize in high-demand services,
• focus on customer satisfaction to generate repeat business and referrals,
• Expand your service area,
• and continuously improve your team’s skills and efficiency.

Offering maintenance contracts can also provide steady income.

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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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How to Write a Winning HVAC Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for HVAC businesses who want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every HVAC business owner should include in their business plan.

Download the Ultimate Business Plan Template

What is an HVAC Business Plan?

An HVAC business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write an HVAC Business Plan?

An HVAC business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective HVAC Business Plan

The following are the key components of a successful HVAC business plan:

Executive Summary

The executive summary of an HVAC business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your HVAC business.  
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your HVAC business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your HVAC business , mention this.

You will also include information about your chosen HVAC business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of an HVAC business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the HVAC industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, the customers of an HVAC business may include:

• Businesses (e.g., small businesses, large corporations)
• Industrial complexes
• Hospitals and other health care facilities

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or HVAC services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service: Detail your product/service offerings here. Document their features and benefits.
• Price: Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place: Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion: How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, or launch a direct mail campaign. And, you may use a combination of these marketing channels.

Operations Plan

This part of your HVAC business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for an HVAC business include reaching $X in sales. Other examples include adding new products/services, expanding to new markets, and opening new locations.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to the HVAC industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue: how much revenue you generate.
• Cost of Goods Sold: These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss): Once expenses and revenue are totaled and deducted from each other, this is the net income or loss

Sample Income Statement for a Startup HVAC Business

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup HVAC Business

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup HVAC business.

Sample Cash Flow Statement for a Startup HVAC Business

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your HVAC business . It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it. It forces you to think through all aspects of your business including marketing, finances, operations and more. Ultimately, a well thought out business plan is the key to a successful HVAC business.  

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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 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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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.

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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.

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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 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 Guide + Free Sample

July 6, 2023

Adam Hoeksema

The HVAC industry presents significant opportunities for growth and success. While some may perceive running an HVAC business as a simple operation focused on heating, ventilation, and air conditioning services, it actually requires careful planning and precise execution to thrive. Therefore, having a well-crafted business plan is crucial for success in this industry.

At ProjectionHub, we specialize in creating HVAC financial projection models . However, we recognize that some of our clients need more than just financial projections. That's why we have taken the initiative to delve into this subject and address the following aspects in our comprehensive HVAC business plan guide and sample plan:

• Why write a business plan for an HVAC business?

What to include in an HVAC startup business plan?

Hvac company business plan outline, how to determine the market demand for hvac services in my area, how to analyze the competition for an hvac services company, how to create financial projections for an hvac startup, example hvac business plan, hvac business plan faqs, why write a business plan for a hvac business.

The HVAC industry requires a well-crafted business plan for several reasons. If you, as an HVAC company owner, are seeking financial support from investors, banks, or financial institutions, having a well-structured business plan becomes a fundamental prerequisite. By presenting a comprehensive evaluation of the HVAC market, a clear and strategic approach, and a thoughtful assessment of potential risks and rewards, you enhance your chances of attracting the necessary funding for your HVAC business. A strong business plan showcases your in-depth understanding of the HVAC industry, your growth strategies, and your ability to effectively navigate challenges, making it more likely for investors and lenders to support your HVAC company venture.

A comprehensive HVAC business plan should address the reasons why customers will choose your HVAC services, demonstrate why you or your team are the ideal operators for the HVAC company, and present a strong financial projection that ensures the investment's security for potential investors and lenders. Below, you will find the outline of our complimentary HVAC business plan template.

We suggest the following sections for your HVAC business plan:

Executive Summary

Company Description

Market Analysis

Product and Service Offerings

Marketing Plan & Customer Acquisition

Operating Plan

Financial Plan

Analyzing the market for HVAC services is crucial to understand your potential customers, competitors, and the overall dynamics of the local market. Here's a step-by-step guide tailored for HVAC services:

Identify Your Target Audience: Determine who might need your HVAC services. Are you targeting homeowners, commercial businesses, builders, or landlords? Understanding the unique requirements of these segments will enable you to cater to their specific needs.

Market Size Estimation: Gauge the size of your potential market within your area. Consider the number of buildings, seasonal climate changes, existing competitors, and any local regulations or construction trends.

Utilize Google Trends and Local Data: Use Google Trends to observe trends in popularity within your local market for HVAC services. If we examine the HVAC industry, for instance, we can track seasonal patterns and trends over the last 5 years for search terms related to specific HVAC services, such as "air conditioning repair" This analysis can help you identify when demand for particular HVAC services might peak in your area, allowing you to align your marketing strategies and service offerings with those periods of heightened demand.might peak, allowing you to align your marketing and service offerings accordingly.

Competitor Analysis: Assess local competitors, their offerings, pricing strategies, marketing approaches, customer reviews, and market share. Understanding what others are doing can help you identify gaps or niches in the market.

Trend Analysis: Investigate current trends in HVAC technology, energy efficiency demands, regulatory requirements, and consumer preferences. Keeping an eye on industry publications and local news can provide valuable insights.

SWOT Analysis: Perform a SWOT analysis - strengths, weaknesses, opportunities, and threats related to your HVAC business. Consider aspects like your technical expertise, customer service quality, and relationships with suppliers.

Pricing Analysis: Evaluate your competitors' pricing and understand the budget constraints of potential customers. This will help you set a price that's both competitive and profitable within your local market.

Customer Behavior and Preferences: Utilize surveys, interviews, and online reviews to understand what drives customer decisions in your area. Consider factors such as quality, responsiveness, reputation, and the importance of energy-efficient solutions.

Seasonal Demand Analysis: HVAC services may have seasonal demand fluctuations. Analyze historical weather data, energy consumption rates, and seasonal maintenance schedules to forecast when services might be most required.

Each of these steps will give you a detailed picture of the market demand for HVAC services in your area, allowing you to tailor your business strategy accordingly. By continually assessing these factors, you can stay ahead of market changes and customer needs, ensuring the continued success and growth of your HVAC business.

When it comes to analyzing the competition in the HVAC industry, there are a few valuable tools you can use, with one of the most useful being Ahrefs.

Ahrefs is a powerful SEO tool that enables you to research and dissect your competitor HVAC companies' online presence. By inputting a competitor's website into Ahrefs, you can gain valuable insights into their organic traffic and the specific keywords responsible for driving that traffic.  For example, we can see that Williams Comfort Air is receiving roughly 32,000 monthly website visitors.  

The tool provides valuable data on your competitor's organic traffic and highlights the keywords that are leading visitors to their website.

By understanding the keywords and SEO strategies employed by your HVAC competitors, you can tailor your content and marketing strategies to effectively compete in the same areas or identify niche segments that may be underserved. This knowledge can help enhance your HVAC company's online visibility, attract more customers through search engines, and position your business for success in the competitive HVAC industry.

BuzzSumo : The free version of BuzzSumo allows you to discover the most popular content for any topic or competitor. By entering keywords related to HVAC services or your competitor's name, you can find out what content is being shared and engaged with the most. This information can help you understand what topics resonate with your audience and what strategies your competitors are employing in their content marketing.

The HVAC industry's financial projections are shaped by distinct factors, including client acquisition rates, project pricing, seasonal demand, and operational expenses. Leveraging an HVAC financial projection template can streamline the process and instill confidence in your planning. Yet, these precise financial projections serve a more significant purpose than merely displaying revenue potential; they pave the way to profitability and the realization of your HVAC business objectives. By considering these critical elements, you can create a robust financial plan that guides your HVAC business towards success and ensures the fulfillment of your goals.

To create precise projections, follow these key steps:

Estimate startup costs for your HVAC company, including equipment purchases, tools, vehicles, licensing, insurance, marketing, and initial staff training.

Forecast revenue based on projected client acquisition rates, average project prices, and potential growth in your customer base.

Project ongoing operational costs , such as staff salaries, rent, utility expenses, maintenance, and marketing costs.

Estimate costs related to providing HVAC services, including materials, subcontractor fees, and project-specific expenses.

Calculate the capital needed to launch and sustain your HVAC company, covering initial expenses and providing working capital for continued growth.

While financial projections are vital for your HVAC business plan , seek guidance from experienced professionals in the HVAC industry. Adapt your projections based on real-world insights, leverage industry resources, and stay informed about HVAC market trends and evolving customer preferences to ensure your financial plan aligns with your goals and positions your HVAC company for long-term success.

Discover our HVAC Business Plan, provided below. Alternatively, you can access a downloadable Google Doc version of this HVAC business plan template , enabling you to customize and adapt it according to your specific requirements. Moreover, we offer a helpful video walkthrough, assisting you in personalizing the business plan to perfectly align with your distinct HVAC business concept.

Table of Contents

1. executive summary.

1.1 Organization Overview

1.2. Objectives

1.3. Mission Statement

2. Organization Description

2.1. Organization History

2.2. Legal Structure

2.3. Unique Value Proposition

2.4. Target Beneficiaries

3. Market Analysis

3.1. industry overview.

3.2. Collaborator and Competitor Identification

3.3. Target Beneficiaries

Key Point  1

4. Marketing and Fundraising

4.1. Strategic Plan

4.2. Program or Service Offerings:

4.4. Distribution Channels

4.5. Promotions and Fundraising

Key Point  2

5. Organizational Structure and Management

5.1. Organization’s Facility & Location

5.2. Staffing Plan and Volunteer Management

5.3. Governance, Financial Management, and Accountability

Key Point  3

6. financial plan.

6.1. Startup Costs

6.3. Expense Projections

6.4. profit and loss statement, 6.5. cash flow projections, 6.6. break-even analysis, 7. appendix.

7.1. Supporting Documents

7.2. Glossary of Term

7.3. References and Resources

Key Point  5

 1.1. company overview.

Briefly introduce the company's background, products or services, and target market.

      -  Example: AirTech Solutions is an HVAC business based in New York City, New York. We specialize in providing high-quality heating, ventilation, and air conditioning services to residential and commercial customers. Our comprehensive range of HVAC solutions ensures optimal indoor comfort and air quality for our clients.

   1.2. Objectives

Outlines the company's short-term and long-term goals.

        - Example: Establish AirTech Solutions as a reputable and trusted HVAC service provider in New York City, gaining a significant market share within the first year of operation.

        - Example: Long-term: Expand our business and become a leading HVAC company in the region, recognized for our expertise, reliability, and customer satisfaction.

  1.3. Mission Statement

 Describes the company's purpose and core values.

        - Example:  To deliver superior HVAC services that enhance the comfort, health, and energy efficiency of our customers' living and working environments.

  1.4. Keys to Success

Highlights the factors that will contribute to the company's growth and success.

        - Example: Our success at AirTech Solutions is driven by our technical expertise, commitment to customer satisfaction, provision of quality products and services, professionalism, and adaptability to market needs.

2. Company Description

   2.1. company history.

Provides context on the company's background and founding story.

        - Example: AirTech Solutions was founded by Peter Sanders, who has over 15 years of experience in the HVAC industry. Peter's passion for providing high-quality heating, ventilation, and air conditioning services led him to establish AirTech Solutions.

   2.2. Legal Structure

 Describes the company's legal structure (e.g., sole proprietorship, partnership, LLC, corporation).

        - Example: AirTech Solutions operates as a limited liability corporation (LLC).

 2.3. Unique Selling Proposition

  Emphasizes the company's competitive advantage or unique offerings.

        - Example: AirTech Solutions stands out by offering cutting-edge HVAC solutions that prioritize energy efficiency, indoor air quality, and customer comfort. 

  2.4. Target Market

Defines the company's ideal customer base.

        - Example: AirTech Solutions serves residential and commercial customers in New York City, focusing on clients who value reliable and sustainable HVAC systems. 

  Presents a general overview of the industry, its trends, and growth potential.

        - Example: The HVAC industry in New York City is thriving due to increased construction activities, a focus on energy efficiency, and the need for optimal indoor air quality.

3.2. Competitor Analysis

 Evaluates the company's direct and indirect competitors, as well as their strengths and weaknesses.

        - Example: Direct competitors: Other established HVAC companies in New York City offering a range of services.

        - Example: Indirect competitorsEnergy management companies, general contractors providing HVAC services, and specialized maintenance companies.

3.3. Target Market Analysis

Explores the company's target customers, their demographics, preferences, and pain points.

        - Example: AirTech Solutions' target customers include residential homeowners, commercial property owners, real estate developers, and facility managers.

3.4. Market Opportunities

Identifies potential opportunities for the company to grow within the market.

        - Example: AirTech Solutions can leverage market opportunities by establishing partnerships with green building developers, offering preventive maintenance packages, promoting energy-efficient upgrades, and providing eco-friendly HVAC solutions for new construction projects.

• Example 1: Analyze local HVAC industry trends and demand to determine the market potential. (e.g., 10% annual growth in HVAC installations in the target area)
• Example 2: Conduct a survey among businesses and homeowners to assess their HVAC service needs and satisfaction levels. (e.g., 80% of surveyed businesses express a need for reliable and energy-efficient HVAC solutions)

4. Marketing and Sales Strategy

4.1. product or service offerings: .

Describes the company's products or services in detail.

        - Example: AirTech Solutions provides a comprehensive range of HVAC services, including installation, repair, maintenance, and energy-efficient upgrades for residential and commercial properties.

4.2. Pricing Strategy

 Outlines the company's approach to pricing its products or services.

        - Example: We adopt a competitive pricing strategy based on industry standards, offering transparent and value-driven pricing for HVAC services, with flexible options tailored to meet customer needs.

4.3. Sales Strategy

  Explains how the company plans to generate sales and build

customer relationships.

        - Example: We will implement a customer-centric sales approach, leveraging referrals and strategic partnerships with contractors and property managers, and personalized consultations to generate leads and build long-term customer relationships.

 Describes the methods through which the company will deliver its products or services to customers.

        - Example:  AirTech Solutions delivers its HVAC services directly to customers at their locations throughout New York City. Additionally, the company maintains an online presence, enabling customers to access information, request quotes, and schedule appointments conveniently.

4.5. Promotions and Advertising

 Details the company's promotional efforts and advertising strategies.

        - Example:  We will utilize targeted digital marketing campaigns, local directories, SEO, and social media platforms to raise brand awareness and attract potential customers. The company will also leverage positive customer reviews and referrals to build trust and credibility within the local market.

• Example1: Begin providing HVAC handyman services on your own in your extra time to build some local awareness and recognition. Form a social media page or presence to slowly grow your customer base before launching the full business.
• Example 2: Offer free HVAC system inspections and consultations to generate leads and showcase expertise. (e.g., 50% of customers who received a free inspection request AirTech Solutions for further services)
• Example 3: Collaborate with local contractors and builders to become their preferred HVAC service provider. (e.g., Secured partnerships with three prominent contractors, securing a steady stream of new installations and maintenance contracts)

5. Operations and Management

5.1. service delivery efficiency.

 Refers to streamlining processes to ensure prompt and reliable HVAC services.

        - Example: AirTech Solutions will implement a digital scheduling and dispatch system that assigns service requests to the nearest available technician based on location, expertise, and workload, optimizing response time and improving overall service efficiency.

5.2. Workforce Management

  Involves staffing and maintaining a knowledgeable team for advanced HVAC solutions

        - Example: AirTech Solutions will recruit experienced technicians with industry certifications and provide regular training to stay updated with the latest HVAC technologies and ensure exceptional service delivery.

5.3. Inventory Control

Outlines effective management of HVAC equipment and parts for streamlined operations.

        - Example:  AirTech Solutions will implement a robust inventory management system to track equipment, optimize stock levels, and establish strong relationships with suppliers for timely availability of HVAC components

• Example: Peter Sanders, the owner of AirTech Solutions, has 15 years of experience in the HVAC industry, ensuring in-depth knowledge of best practices and industry standards.
• Example: The management team at AirTech Solutions consists of industry veterans with a combined experience of over 40 years, bringing a wealth of expertise in HVAC system design, installation, and maintenance.

5.4. Safety and Compliance

Involves adhering to safety regulations and industry standards in all operations.

        - Example: AirTech Solutions will conduct regular safety training sessions, enforce strict safety protocols, and maintain comprehensive documentation to meet all legal requirements and create a safe working environment for our team and clients.

All of the unique Self Storage projections you see here were generated using ProjectionHub’s HVAC Business Financial Projection Template . Use PH20BP to enjoy a 20% discount on the template. 

   6.1. Startup Costs

  Provide a detailed breakdown of the total startup costs requirements, and where you plan for those funds to come from. You will also want to breakdown how the startup costs will be used including working capital to cover losses before the business breaks even.

        - Example: Creating a solid financial plan is crucial, and we are taking the necessary steps to ensure the success of AirTech Solutions. We have $50,000 secured from a personal investment from Peter and we are working with a financial institution to secure a business loan of around $250,000. By combining these funding sources, we are confident in our ability to meet the startup cost requirements and establish a strong foundation for AirTech Solutions. 

6.2. Revenue Projections

Provides an estimate of the company's future revenue based on market research and assumptions.

        - Example:  AirTech Solutions projects $1,287,000 in revenue in the first year. The company anticipates steady growth in revenue over the initial five-year period.

 Estimates the company's future expenses, including fixed and variable costs.

        - Example: AirTech Solutions's non-labor operating expenses include property lease, accounting, advertising, insurance, utilities, and more.

Summarizes the company's revenue, expenses, and net income over a specific period.

        - Example: AirTech Solutions expects to achieve profitability within the first year of operation.

 Outlines the company's projected cash inflows and outflows.

        - Example: AirTech Solutions cash flow projections account for seasonal fluctuations in sales and expenses.

  Determines the point at which the company's revenue equals its expenses.

        - Example: AirTech Solutions anticipates reaching its break-even point in year 1 of operation.

Watch how to create financial projections for your HVAC Business

Key Point  4 

• Example 1: Compare financial projections to industry benchmarks for revenue growth and profit margins. (e.g., Aim to achieve a gross margin of 30%, in line with industry averages)
• Example 2: Incorporate seasonal fluctuations in HVAC demand and adjust revenue forecasts accordingly. (e.g., Anticipate a 15% increase in revenue during the summer months due to higher demand for air conditioning services)

   7.1. Supporting Documents

 Includes any relevant documentation that supports the information presented in the business plan, such as resumes, financial projections, market research data, and permits or licenses.

   7.2. Glossary of Term

 Provides definitions for industry-specific terms used throughout the business plan to ensure reader comprehension.

   7.3. References and Resources

Lists any sources or resources referenced during the preparation of the business plan, including industry reports, market research data, and relevant publications.

• Example: Peter Sanders invests $50,000 of his personal savings into AirTech Solutions, demonstrating commitment and shared risk.
• Example: AirTech Solutions secures a business loan with equipment and inventory as collateral, showcasing their dedication to the success of the company.

How do I start an HVAC installation and repair business?

To start an HVAC installation and repair business, gain the necessary certifications and licenses, obtain liability insurance, purchase or lease required tools and equipment, establish relationships with suppliers, create a pricing structure, and develop a marketing strategy to reach potential clients.

What are the common HVAC services offered by HVAC companies?

Common HVAC services offered by HVAC companies include installation of heating, ventilation, and air conditioning systems, routine maintenance and tune-ups, repair services for HVAC equipment, duct cleaning, indoor air quality assessments, and energy efficiency evaluations.

How can I attract customers to my new HVAC business?

To attract customers, invest in professional branding and a user-friendly website, utilize search engine optimization to rank higher in local search results, offer competitive pricing, provide exceptional customer service, participate in local trade shows or home improvement events, and ask for referrals from satisfied customers.

What are the essential tools and equipment needed for HVAC installation and repair startup?

Essential tools and equipment for HVAC installation and repair include gauges, thermometers, hand tools (such as wrenches, screwdrivers, and pliers), refrigerant recovery equipment, leak detection devices, electrical testing tools, and a variety of HVAC system components and parts.

About the Author

Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 50,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.

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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 [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 Template [Updated 2024]

HVAC Business Plan Template

If you want to start a HVAC business or expand your current HVAC company, you need a business plan.

Fortunately, you’re in the right place. Our team has helped develop over 100,000 business plans over the past 20 years, including thousands of HVAC business plans.

The following HVAC business plan template and example gives you the key elements you must include in your plan. In our experience speaking with lenders and investors, the template is organized in the precise format they want.

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.  

Example Business Plan For HVAC Businesses

I. executive summary, business overview.

[Company Name] is a new residential HVAC company located in [location]. We will provide numerous services to ensure the residents of [location] remain comfortable in their homes. Some of these services include the repair and installation of furnaces, air conditioning systems, and hot water tanks. Customers can expect speedy and high-quality work paired with friendliness and excellent customer service.

[Company Name] provides numerous services that help to keep the homes of [location] comfortable. These services include the installation and repair of the following:

• Air conditioning systems
• Hot water tanks
• Air filtration systems

Customer Focus

[Company Name] will primarily serve the homeowner within a 20-mile radius of our location. The demographics of these residents are as follows:

• 261,684 residents
• Average income of $56,000
• 54.8% married
• Median age: 39 years
• 43% homeowners

These demographics indicate that there are numerous homeowners in the area who will need HVAC services for their homes. Customers typically look for HVAC contractors who are friendly, provide great customer service, and charge moderate prices. [Company Name] will provide all of this and develop a loyal client base within the area.

Management Team

[Company Name] is led by [Founder’s Name], who has been in the HVAC industry for [X] years. He started his career working for a local HVAC competitor but eventually broke off as an independent contractor. After years of experience and developing a loyal customer base, [Founder’s Name] is ready to establish his own HVAC company and manage other contractors. His years in the industry have given him the skills and knowledge to run all aspects of the business, including operations, management, and marketing.

Success Factors

[Company Name] is uniquely qualified to succeed due to the following reasons:

• The company is in an area with high homeownership rates with a good mix of old and new homes that will need HVAC services.
• The founder has a track record of success in the HVAC industry and is a proven expert in the field.
• [Founder’s Name] already has a loyal client base from his time as an independent contractor.
• The pricing will be moderate and competitive with other HVAC businesses.

Financial Highlights

[Company Name] is currently seeking $400,000 to launch. Specifically, these funds will be used as follows:

• Office design/build: $150,000
• Vehicle purchase and maintenance: $100,000
• Equipment and tools: $50,000
• Working capital: $100,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Top line projections over the next five years are as follows:

II. Company Overview

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Who is [Company Name]?

[Company Name] is led by [Founder’s Name], who has worked in the HVAC industry for [X] years. He started his career working for a local HVAC competitor but eventually broke off as an independent contractor. After years of experience and developing a loyal customer base, [Founder’s Name] is ready to establish his own HVAC company and manage other contractors.

His time as an employee and independent contractor gave him in-depth knowledge of all sides of the HVAC business (including marketing and operations). He also has perfected his skills and maintained a large, loyal client base. His knowledge, skills, and prior client base will all prove invaluable to starting up the business.

[Company Name]’s History

[Founder’s Name] incorporated [Company Name] as an S-corporation on [date of incorporation]. Soon after, he identified a potential office space and vehicles to grow his fleet. Though the business is currently being run out of his home, all operations will run out of the office space once he has signed a lease. He and the other staff will also conduct all work through company vehicles once they are purchased.

Upon incorporation, [Company Name] was able to achieve the following milestones:

• Found a business location and signed a Letter of Intent to lease it
• Developed the company’s name, logo, and website located at [website]
• Determined equipment and supplies needed
• Identified potential work vehicles to purchase
• Began recruiting key employees

[Company Name]’s Products/Services

All services will be priced based on the effort involved and the equipment required. However, all pricing will be moderate and remain competitive with our competitors.

III. Industry Analysis

As long as people have modern homes, they will need HVAC systems to keep them comfortable. Heating systems are required to keep homes warm in the harsh winters, and cooling systems help people survive the rapidly increasing heat waves. Therefore, the industry will remain strong as long as humans desire to feel comfortable when residing in their homes.

Furthermore, the past few years of weather extremes have shown humans how fragile our species is. It’s hard to live through an extreme heat wave without some form of air conditioning. Therefore, many people who don’t already have good heating or cooling systems will be investing in them to remain comfortable when the weather becomes severe.

Currently, the HVAC market size is valued at $16.54 billion and is expected to grow at a CAGR of 5.6% from over the next 10 years, according to Grand View Research. Therefore, it seems that the industry will still be in high demand over the next decade, which makes this a great time to establish an HVAC business.

IV. Customer Analysis

Demographic profile of target market.

[Company Name] will serve the community residents of [location] and homeowners living within a 20-mile radius of our office. The region has thousands of single-family homes that will require our services. About 43% of the population in the 20-mile area owns a home, so we have a large customer base to work with.

Customer Segmentation

[Company Name] will primarily target the following three customer segments:

• [Founder’s Name]’s client base : [Founder’s Name] has already established a solid client base through his years as an independent contractor. We will move these clients over to our company first before marketing to other customer segments.
• Homeowners : As a residential HVAC business, we expect to primarily work with homeowners experiencing concerns with their heating and cooling systems. Therefore, we will put the majority of our marketing efforts into targeting this segment.
• Landlords : Landlords who rent out homes or small complexes can also utilize our services, so we will market to them as well.

V. Competitive Analysis

Direct & indirect competitors.

The following HVAC companies do business within a 20-mile radius of [Company Name], thus providing either direct or indirect competition for customers:

Western Heating Established in 1978, Western Heating has been a popular HVAC business for homeowners in the region. They provide any service that can help keep single-family homes comfortable, including the maintenance and repair of furnaces and air conditioning systems. Western Heating has remained a small business over the years dedicated to creating long-lasting connections with its smaller customer base.

Though Western Heating is a popular business, because of its choice to remain small, it does not have a large customer base. With [Founder’s Name]’s client base and his desire to grow the business, we expect to be a much more dominating competitor in the region.

Oak City Heating And Cooling Oak City Heating And Cooling has been the go-to HVAC business for the apartment owners of [location] for decades. The business provides installation and maintenance services for all one’s HVAC needs, including air conditioning, heating, and air filtration systems. Customers can expect high-quality work and great customer service when they contact Oak City Heating And Cooling.

Though Oak City Heating And Cooling will continue to thrive, we will only experience direct competition from them when serving small apartment complexes and multi-family homes. The company does not serve single-family homes, so we will continue to dominate that market.

Smith HVAC Services Smith HVAC Services is run by an independent contractor and was in direct competition with [Founder’s Name] during his independent contractor days. He can help anyone who needs simple or straightforward maintenance services and provides high-quality work and long-lasting relationships.

Smith HVAC Services has a list of loyal clients. However, since it is a single-manned operation, those clients are few. Now that [founder’s name] is establishing a business and expanding it, we expect to see very little competition from Smith HVAC Services.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. Those advantages include:

• Management : [Founder’s Name] has been extremely successful working in the industry and will be able to use his previous experience to provide the work and customer service experience. His unique qualifications will serve customers in a much more sophisticated manner than [Company Name]’s competitors.
• Relationships : [Founder’s Name] knows many of the local leaders, business managers, and other influencers within [location]. With his [X] years of experience and good relationships with business leaders in the area, he will be able to get connections to supplies and equipment as well as expand his current customer base.
• Client-oriented service : [Company Name] will put an emphasis on customer service and long-lasting connections to establish trust and loyalty from our customers.
• Pricing : [Company Name] will price its services moderately and in a way that remains competitive with our local competitors.

VI. Marketing Plan

You can download our Business Plan Template (including a full, customizable financial model) to your computer here. [Company Name] seeks to position itself as a high-quality HVAC contractor in the industry. Consumers can expect to receive high-quality HVAC services from skilled contractors in [location] who are trained and certified.

The [Company Name] Brand

The [Company Name] brand will focus on the Company’s unique value proposition:

• Complete list of HVAC services
• Highly trained and capable staff
• Affordable pricing
• Excellent customer service

Promotions Strategy

[Company Name] expects its target market to be family households located within a 20-mile radius of its location. [The Company’s] promotion strategy to reach these individuals includes:

Social Media [Company Name] will invest heavily in a social media advertising campaign. The company will hire a brand manager to develop the company’s social media accounts and invest in ads on all social media accounts. It will use targeted marketing to appeal to the target demographics.

Major Publications We will also invest in advertising in selected larger publications until we have achieved significant brand awareness. We will also air commercials that will broadcast during peak TV times.

Website/SEO [Company Name] will invest heavily in developing a professional website that displays all of the services the company will be able to provide. It will also invest heavily in SEO so that the brand’s website will appear at the top of search engine results.

Community Events The company will have tables and booths set up at local community events to hand out free flyers, brochures, and other promotional materials to get the word out about the new company.

Commuter Advertising We will drive attention toward [Company Name] by renting billboard ad spaces along routes or highways that hold heavy traffic. Advertising on heavily traveled commute routes is an opportunity to alert large numbers of residents to our opening.

Client Referral Programs [Company Name] will create a client referral program that gives discounts to existing clients for every successful referral.

Pricing Strategy

[Company Name]’s pricing will be moderate, so customers feel they receive great value when working with us. Our customers can expect to receive quality HVAC services at a more affordable price than what they pay for larger local HVAC businesses.

VII. Operations Plan

Functional roles.

In order to execute [Company Name]’s business model, the company needs to perform many functions, including the following:

Administrative Functions

• Bookkeeping
• Website and social media maintenance
• Customer service
• Hiring and training staff
• Schedule services
• General maintenance functions

Service Functions

• Provide excellent customer service
• Purchase equipment and tools needed for HVAC work
• Installation services
• Repair and maintenance services
• Charge customers for work done and provide flexible payment options

VIII. Management Team

Management team members, hiring plan.

[Founder’s Name] will serve as the Owner and Manager of [Company Name]. In order to launch, the company will need to hire the following personnel:

• Administrative Assistant (1 to start)
• Marketing Manager (1 to start)
• HVAC Contractors (2 to start)

IX. Financial Plan

Revenue and cost drivers.

[Company Name]’s revenue will primarily come from the fees charged for the HVAC services it provides.

The major cost drivers for the company’s operation will consist of the lease payments, equipment, supplies, vehicles and maintenance, labor expenses, and marketing expenses.

Capital Requirements and Use of Funds

[Company Name] is currently seeking $400,000 to launch. The funds will be used for capital expenditures, office build-out, hiring initial employees, marketing expenses, and working capital. Specifically, these funds will be used as follows:

Key Assumptions

  5 Year Annual Income Statement

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