How to Prepare an HVAC Business Plan for Rapid Growth?

You are here:

Understand the core aspects of an HVAC business plan and why it’s important for your business to create a business plan.

Are you starting a new HVAC business?

Do you want to stand out from the rest and scale your business operations?

You must create a solid HVAC business plan to strengthen your business operations and minimize future troubles.

Many HVAC businesses skip the time-consuming process and start with the service delivery to their clients, but research from shows that a business plan increases the chances of startup success.

Over 20% of businesses fail within the first few years because they don’t focus on a quality business plan that can set a solid foundation for their smooth business operations.

So, how can you create your HVAC business plan?

Strengthen Your HVAC Business & Streamline Invoicing Process

You will be ready with an HVAC business plan in a while, but do you have a plan on how to prepare to win clients and get paid faster?


What are the factors you should consider?

Let’s find out.

📝Key Takeaways:

  • Know the important things you should include in your HVAC business plan and focus on ‌revising your business plan.
  • Learn why you should create and integrate a business plan for your HVAC business and how it can help you scale your business operations and set a solid foundation.
  • Recognize the importance of professional financial management software that can help you align with your financial planning.

Things to Include in Your HVAC Business Plan

Multiple factors must be considered and included in your HVAC business plan, but we have filtered a few important points that are a must for your business operations.

Have a look.

1. Executive Summary

A business plan is incomplete without a professional, well-vetted executive summary. It provides an introduction to your business plan.

The company summary provides the summary of each key section in your business plan and should be written at the end when you have covered the core business segments.

The positioning of the executive summary can be at the front to quickly engage the reader and explain to them the type of HVAC company business you are operating. 

For example, you have an HVAC business that operates in different markets or focuses on a specific niche. You can mention the details of different business aspects, from marketing to financials, in your executive summary.

Also, provide an overview of different subsequent sections of your business plan. For example, a brief overview of the industry. Discuss the details of the competitor, overview of the target audience, key business members, and your mission and vision.

The detailed summaries can help you achieve better business planning results and provide a short sum up of different segments of your HVAC business planning.

2. Business Analysis

hvac business startup checklist

Next stop is business or company analysis, where you provide in-depth details about the type of HVAC service business you want to operate.

There are three broad HVAC company businesses that you can choose

  • Residential HVAC company

The HVAC company provides air conditioning and heating unit services for residential buildings. The scale of the business operations is small or medium, and different local residential areas are the prime targets of the residential HVAC company.

You require specific equipment and tools to help you cater to residential clients’ requirements and ensure that you stand out from other local HVAC businesses. 

The hassles with customer dealing and solving nitty-gritty requirements can be problematic for a few residential HVAC companies because of the nature of the target market.

  • Commercial HVAC Company

The commercial HVAC company offers air conditioning and heating unit repair and installation services for commercial properties like gyms, grocery stores, retail, and restaurants.

The scale of the business operations is medium and large because the client requirements can be high, and you require a big team to handle the service requests. Customer support and target audience conversion can be difficult but rewarding.

The projects can be long-term and help you scale your business operations to new heights; you land a few top commercial projects. The complexities and the technical knowledge for completing a commercial project are higher than in residential HVAC project management.

  • Industrial Company

The industrial HVAC companies are specialized in providing air conditioning and heating unit repair and installation services for industrial properties like warehouses or different industries.

The scale of the HVAC operations is larger than residential and commercial HVAC companies, and you require high capital to set up an industrial HVAC company. Different industrial client requirements are high, and you can earn long-term projects by providing a competitive estimate.

Apart from the type of HVAC company business you run, you should also provide the background of your business.

Answer a few questions like 

  • What’s the legal structure of your business? Are you incorporated as an LLC, S-Corp, or a sole proprietorship?
  • What are the business achievements you have unlocked to date? You can include different milestone numbers like positive reviews, clients served, and total revenue or profit generated.
  • Why and when did you kick-start your HVAC business operations, and what are your future vision and goals?

If you feel the task of scripting your business analysis can be hectic, you can download your dedicated HVAC business plan template to help you minimize the time and effort.

3. Market Analysis

You can also provide an overview of the general HVAC industry trends, stats, and future projects based on your research and experience.

Multiple HVAC businesses believe that discussing the market analysis results can be unnecessary but can serve multiple purposes in the successful long-term operations of your HVAC business.

You can educate yourself and your team about the HVAC industry and help you dive deep into understanding the core aspects of your niche business industry.

You can get new ideas by looking at the current scenarios and industry trends that can optimize your business operations and grab the opportunity that other HVAC businesses can miss.

Also, the industry research can prove to readers that you have great experience in your industry and stand out from other HVAC industries.

Answer the following question during the industry analysis that can help you improve your HVAC business plan.

  • Is the HVAC industry increasing or declining?
  • How big is the HVAC industry in the United States?
  • Who are the leading suppliers in the industry?
  • What are the trends, and where is the HVAC industry heading?
  • What is the growth forecast for the coming ten years?
  • Who are the leading competitors in the industry?
  • What’s the potential size of your market? It can analyze your investments and make informed HVAC business decisions.

These market analysis queries and research can improve your business planning and streamline your workflow and HVAC business operations.

Competitive Analysis

With the market analysis, you can include the competitive analysis that defines the approach and position of your competitors in the industry. 

Analyzing your competitors can better understand the HVAC operations and current approach of different businesses, which can simplify your HVAC journey.

Identify your HVAC business’s indirect and direct competitors and evaluate different business aspects for different businesses.

Your direct competitors are similar HVAC companies, and the indirect competitors are those who target the same audience but offer different products or services.

For example, your indirect competitors are construction companies, retail stores, and home developers specializing in HVAC equipment.

Describe different direct competitors using multiple business metrics that can help analyze their strengths and weaknesses.

You can tailor your HVAC business operations based on competitor research that can help you increase the overall customer experience.

Answer a few specific questions to improve the quality of your research.

  • What are they good at?
  • What areas do they serve?
  • What are the weaknesses?
  • What type of HVAC business do they operate?
  • What’s their pricing model?
  • What quality of heating and cooling units do they provide?

Survey your competitors’ customers and ask them what they like most and least.

Work on your in-house business operations and workflows using the competitive analysis results.

Improve the areas that can help you get a competitive advantage. Answer a few questions like

  • Will you offer better pricing?
  • Can you offer better customer service?
  • Can you minimize the installation time and offer faster delivery?
  • Can you provide different HVAC services that your competitors don’t offer?
  • Can you offer better heating and cooling units than your competitor?

4. Customer Analysis

Customer Analysis

The customer analysis segment of your HVAC business plan must include vital details about your target audience and help you improve your service operations.

You can include different customer segments like businesses, schools, and households if you operate on a wider horizon.

Your customer segment directly impacts the type of HVAC company business and provides a solid path to connect with your target audience and deliver the required service results.

You can understand your customers’ different problems and desires and extract the accurate customer numbers in your area of operations that can help you channel your marketing efforts.

You should break down your customers based on their psychographic profiles and demographics to get a bird’s-eye view of your target segment.

The demographics must include the genders, locations, ages, and income levels of your target market that may require your HVAC services.

For example, if you want to operate in commercial HVAC services, the target audience will be the owners or the management team of different commercial businesses. 

While in the case of residential HVAC operations, you need to target the household owners or the residential property members.

The psychographic profiles target the needs and want of your target audience. The better you understand your clients’ emotions and requirements, the more you can effectively attract and retain your customers, which can help increase your presence in the industry.

5. Marketing and Sales

A quality marketing plan must include the basic fundamental Ps of marketing like Product, Price, Place, and Promotion.

You must stand out with the marketing plan to help you better connect with your audience and ensure that you stand out.

  • Product

The product section should reiterate the company types in your document in the business analysis. You can detail the specific products or services you want to offer to your target audience.

For example, in addition to different general HVAC company services, you can provide cost comparisons, preventive maintenance, biannual maintenance, or other services that set you apart.

Your product or services sets the tone of your HVAC marketing plan and helps you create the right pathway for your marketing efforts.

  • Price

The price of your service or products can also impact your marketing efforts because you can’t overprice or underprice your products or services. You should maintain competitive pricing to ensure you deliver the best offers to your target audience.

The price can minimize the efforts to execute a sales strategy and fuel your marketing strategy.

  • Place

The location of your HVAC company can significantly impact your success. You should include the potential of your business location and ensure that you make the most of it.

For example, if your HVAC company is located near a warehouse, an urban setting, an office complex, a busy neighborhood, etc. Analyze your business location and focus on how your HVAC business location can be the best for your clients.

  • Promotion

Promotion of your HVAC business is an important aspect of your marketing plan. You must list down different promotion techniques that you can use to ensure you connect with your leads and convert them into your customers.

You can include different ideal HVAC marketing tactics that you can implement to boost your marketing and sales strategy.

Being a result-oriented HVAC business owner, you should follow an omnichannel marketing promotional strategy that can help you increase your brand reach and visibility. 

You can analyze your competitors and determine the best marketing tactics that are helping them sustain themselves in the industry. 

Hire a professional team of marketers that can boost your promotional activities and implement a successful HVAC company business plan.

HVAC Marketing Strategies

In the digital era, use the blend of offline and online marketing strategies to market your maintenance and repair services and integrate professional HVAC systems at the destination sites.

The online marketing strategies can include search engine optimization, email marketing, social media pages, online reviews, and other strategies to connect with modern-day consumers.

The offline strategies for heating, ventilation, and air conditioner business marketing include creating flyers, business cards, banners, or multimedia advertising on billboards. The offline strategy can improve your local marketing efforts and improve the implementation of your sales strategies.

The ventilation and air conditioning business requires a comprehensive marketing plan to break through the highly competitive business space and solidify your brand presence.

Focus on optimizing your marketing plan if you don’t achieve the desired business goals from the implementation process. 

Use professional tools to help you streamline your marketing efforts and remain consistent with your marketing execution to achieve the desired business results.

Set your long-term and short-term goals and channel your marketing strategies to achieve both goals within the specified time.

Operational Plan

Short-term goals include tasks that run an HVAC business, like dispatching your technicians, fueling the vehicles, scheduling employees, and updating clients about the service and the status updates.

Long-term goals are linked with milestones that you can achieve in the long run. You can include the time duration to reach $X in revenue or obtain your XXth client. These goals can change with the expansion of your business, and your operational and marketing planning should be based on unlocking these goals with finesse.

6. Financial Plan

how to have a successful hvac business

You must highlight a 5-year financial plan in your business playbook to ensure that your balance sheet, income statement, and cash flow statements are in check.

The income statement includes the profit and loss statements. To understand the income status, you can subtract the business operational expense from the total revenue. 

Analyze your business assets and liabilities using the balance sheet and simplify the financial management.

Handling your cash flow is important to determine how much capital you need to grow or run your business operations.

While managing your financial statements, you must address a few major aspects of your business to increase the accuracy of financial projections.

  • Taxes and permits
  • Business insurance
  • Legal expenses
  • Cost of vehicles and equipment
  • Payroll or salaries paid to staff
  • Cost of office supplies, fuel, and other HVAC overhead

You can use professional financial management software for hvac like InvoiceOwl that can help you streamline your financial management and assist your team for better business results.

Within a few clicks, you can check the sales forecast, profit and loss statement, and optimize the financial business structure.

You can get a bird’s eye view of your expenses to run your new business with finesse and ensure that you offer quality HVAC repair and maintenance services.

Get Financial Reports On the Go

When checking for the profitability of your HVAC business, these financial reports will only help to make crucial decisions.

7. Hiring and Training

You should hire a professional management team to deliver quality HVAC customer services and implement your marketing and operational strategies.

While hiring professionals in your team, check the candidate’s background and emphasize their skills and experience. 

Integrate training and skill enhancement programs to boost your business workforce skill-sets and enhance business productivity and delivery.

With a skilled workforce, you can unlock the true potential of your own HVAC business and create a successful business from scratch.

You should equip your HVAC technicians and facility managers with the best tools to help you with service offerings and implement the perfect HVAC business plan. 

Revising the Business Plan

Focus on revising your business plan and cross-checking it with the help of professionals that can help you improve your business plan and scale your business operations.

Once you implement your HVAC business plan, you should conduct performance analyses  for different businesses, employees, and market trends to access the results and get a business overview.

You can spot the area of improvement and implement the required changes to achieve a better business outcome and simplify your service offering.

Why It’s Necessary to Prepare an HVAC Business Plan?

Setting up an HVAC business plan can ensure that you set up reasonable expectations and goals for your operations and remove the guesswork from your business processing.

To ensure that your HVAC business succeeds in the long run, you must set a direction and channel your business growth towards unlocking your goals.

  • Business plans help you guide through multiple marketing strategies and ensure that you manage your business operations with finesse. It is a roadmap for structuring, running, and scaling your HVAC business.
  • A quality HVAC business plan outlines the business practices and the business’s short- and long-term mission and vision.
  • It can help you streamline your in-house operations and remove the complexities of your financial management. Your account payable team can handle the cash flow and financial document management.

Financial management is a vital aspect of the success of your HVAC business; you must choose professional software for creating quality estimates, invoices, purchase orders, and credit memo journals.

Out of multiple financial management software available in the industry, it’s difficult for HVAC businesses to shortlist and select one for their business operations.

Our team has diligently filtered out the best financial management software for your HVAC business.

Frequently Asked Questions
  1. Is the HVAC business profitable?

    With the rise in the residential and commercial buildings’ construction, the demand for quality HVAC services is rising. Clients want the best service for their requests and consistently examine different businesses to achieve the desired results. If you can deliver quality HVAC services to a niche audience, you can stand out and scale your business profits. It can strengthen your industry presence and ensure you run a successful long-term HVAC business.

  2. What makes an HVAC business plan important?

    The importance of a professional HVAC business plan is immense because of the changing consumer demands and highly competitive business spaces that require strengthening your basics and achieving the desired business outcome. A business plan can help you bypass the troubles and roadblocks that can cause operational issues and hinder your business growth. You can streamline your business resources in the right direction and break the complexities that can add an extra edge.

  3. Can’t you operate an HVAC business without a business plan?

    You can operate with a professional HVAC business plan, but you should avoid the situation because it’s not healthy for your business’s sustainability and success. A business plan delivers clarity and ensures you pass through the business’s ups and downs. It can set a strategic plan and ensure you lock in more business profits than a non-business plan approach.

  4. How to start an HVAC business?

    Start an HVAC business by sorting the type of HVAC business you want to start and filtering out what services you can offer to the customers based on the demand. You must also create a solid business plan to strengthen your basics to kick-start your business operations.

  5. What elements must you include in an HVAC business plan?

    You must include different elements in your HVAC business plan. Factors like financial planning, marketing strategy, customer segmentation, partnership strategy, resource management, and key activities are some of the top priorities.

InvoiceOwl Can Help You With Your Financial Management 

InvoiceOwl is the leading estimate and invoice software for HVAC contractors to simplify their cash flow and financial management. 

The software can help you achieve great profits as a contractor and ensure that you minimize your business expenses.

You can automate a few redundant financial management processes and bypass the inefficiencies that can trigger poor business results. 

The smooth UI/UX of the software enables the users to access the premium features offered by the software and achieve the desired business outcome.

Avail of the 14-day FREE trial today and transform your HVAC business operations.


Author Bio
Jeel Patel
Jeel Patel

Jeel Patel is the Founder of InvoiceOwl and is the main curator & writer of the content found on this site. With ideals of quality, commitment, and perseverance, he believes in creating lasting business relationships with the clients.