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5 Tips for Writing a Business Plan for an HVAC Company

Creating a comprehensive plan of operations for your HVAC business is essential for ensuring you run an organized, modern, and profitable HVAC company. In today’s times, incorporating advanced SEO strategies and generating as many HVAC leads as possible is a must if you’re trying to be as competitive as possible. However, that’s not all. 

There are other important aspects of a thorough HVAC business plan that you have to account for, and that you should take the time and effort to envision, design, create, and finally put into action. Let’s take a closer look at what every high-quality HVAC business plan should contain, and how you can go about creating it. 

What are the important elements of an HVAC business plan?

The business plan of an HVAC contracting company is a detailed document that should consist of several important elements. Here are the elements SBA lists as essential for a successful business.

  • Executive summary: This serves as a concise overview of your HVAC business operations. This section outlines what the company does, who is in charge, the locations where it operates, as well as the number of employees. It should also summarize your funding requirements and financial projections. 

  • Company description: This section describes your company in greater detail. Company description should define the mission of your company, explaining its purpose, its unique selling propositions, as well as its target customers and market. You should mention your management team as well. 

  • Market analysis: This part of your business plan requires the most research. You need to examine the business market you intend to operate within, look at trends, competition, and unmet needs you could address. This will help you run a more successful business that targets the exact needs of your potential customers.

  • Management and organization: This portion of your company business plan is reserved for describing your legal structure and the organization of your company. SBA advises you to include a chart that illustrates your organizational structure and relationship among the company roles of your employees. 

  • Product or service line: This is, arguably, the most straightforward section of your business plan. You need to list and describe all the services and/or products you plan to offer to your clientele. 

  • Sales and marketing: This element of the business plan is used for outlining your plans for a marketing strategy. However, you should think about designing your marketing strategy in such a way that it allows for easy adjustments depending on the current customer needs and market conditions and trends.

  • Funding requests: If your plan to seek funding for your HVAC business immediately or down the line, this portion of the plan should describe the amount of funding your business should receive over the course of five years in order to operate, and how you would implement those funds. 

  • Financial projections: This section is reserved for your financial projection for the period of the next five years. This part should either include cash flow statements, capital expenditure budgets, balance sheets and income statements, or their projections for a new business. 

  • Appendix: It includes all the supporting documentation your HVAC business requires, such as various legal documents, contracts, permits, licenses, patents, references, product pictures, resumes, and credit histories.

Finally, it’s worth noting that setting a 90-day plan is one of the most important parts of a business plan. A 90-day plan can include goals for sales, expenses, and each area of your business. Do not set too many goals – focus on two or three. These goals should be able to be completed within the 90-day window. To learn more about 90-day plans, check out this blog post

How do I create a marketing plan?When-and-how-should-I-review-my-HVAC-company-plan.jpg

Creating a marketing plan might seem like an easier part of an HVAC business plan than taking care of the finances or choosing your line of products and/or services. However, there are several very important factors you need to consider when creating a marketing plan:

  • Target market: This is the primary aspect to consider when envisioning your marketing strategy as it will affect which customers you want to target and shape the rest of your marketing efforts. 

  • Advertising methods: There are many sources of advertising, and you should carefully consider your target audience when choosing your advertising methods. However, you should always complement traditional advertising with modern online possibilities. 

  • Creative promotion: When your HVAC business is less busy and hectic, you can always try to organize unique promotional events that will serve as a fun and enjoyable way for customers to become aware of your products and services. 

  • Seasonality: Finally, you have to be aware of the fact that HVAC business is a seasonal business, and be prepared to keep adjusting your marketing strategy depending on the season and the current needs of your customers.

How do I build a financial plan for my HVAC business?

Every HVAC business that wants to be successful has to have a solid financial plan. Upon performing a detailed market analysis and learning just how high the operating costs can become, it’s time to create a comprehensive five-year financial plan. 

Ensure to closely examine your competition, pay attention to past changes in business trends and customer needs, and to account for the seasonality of the HVAC business and imminent fluctuations that stem from it. Then, proceed to develop the following vital aspects of your financial plan:

  • Expenses list: Wages, vehicle-associated costs, HVAC safety equipment, tools, utilities, office supplies, leasing costs, business space purchase, insurance, liability policy, worker’s compensation. For help with taking a look at expenses, check out this blog post!

  • Licensing and certification financial requirements

  • Marketing strategy costs

  • IT budget

  • Seasonal variation impacts

  • Long-term revenue projections and goals

How do I develop a training & hiring plan?

Every HVAC business needs to reserve funds and develop a plan for hiring and training employees. Your company needs administrative staff, salespeople, communication experts, marketing adepts, and skilled technicians. 

Your business is only as strong as your employees, and you should pay attention to planning out strategies for hiring and training them. When outlining this section of your business plan, you should consider the following:

  • Different employee training options and possibilities

  • Costs of the necessary employee training

  • In-house vs outsourced training

  • Online or offline learning and training

  • The expected volume of your business and the necessary number of employees

  • Recruitment and hiring methods and strategies

When and how should I review my HVAC company plan?

Finally, every business plan, no matter how well-designed and comprehensive, requires relatively frequent reviews and updates that allow it to remain relevant and competitive. Experts advise regular yearly reviews, but you should definitely perceive your business plan as a constantly evolving process that requires your attention and adjustments according to the current market conditions. 

On the other hand, there are several important events that you need to be aware of and that generally require your immediate attention and that signal that your HVAC business plan is in need of an update:

  • Addition of a new owner or partner

  • Addition or change of location

  • Competitor gaining advantage

  • Decline in finances

  • Missed company goals

  • Changes in service and/or product lines

  • Rapid company growth

When it comes to the how to update your plan, the matter is simple to understand but can be difficult to put into action. Updates are based on reviews, and you should do all you can to review every single aspect of your HVAC operations to your projected goals and the current state of your company. 

This will allow you to identify potential problems that need to be fixed, or new business opportunities you can take advantage of. Once you analyze the issues or the chances, you can proceed to solve them or design methods that will help you reap the rewards of new market developments. 

Who can help me improve my HVAC contracting business?

Creating a detailed and professional business plan for your HVAC company is one of the most important aspects of a successful HVAC contracting business. At Gustave A. Larson, we have created dedicated business solutions that help our partners improve the organization and operation of their HVAC company. We want to help you grow your business at a steady rate, and see your company thrive. Contact us today and see how we can help you!