How to Prepare an HVAC Business Plan for Rapid Growth?

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Unlock the true potential of your business by making an HVAC business plan! In this blog, we’ll help you through every stage of planning, from market analysis to financial forecast. So, let’s dig in!

According to the Bureau of Labor Statistics, as published by Fundera, over 20% of businesses fail within the first few years.

Research by Harvard Business Review shows that a business plan increases the chances of startup success. Focusing on a quality business plan can set a solid foundation for smooth business operations.

Herein we’ll walk you through the step-by-step process of making a sound HVAC business plan that guides you on how to start an HVAC business and keep your business on the right way. From market and competitor analysis to creating a sales and marketing plan and producing precise financial forecasts, we’ll discuss each aspect of the plan in detail to help you accomplish your objectives.

So, let’s get started!

1. Cover Page 

Your HVAC business plan should seem like a professional booklet. Therefore, adding a cover page to your business plan serves as a brief introduction to your HVAC business and gives it a professional look.

You must include the following components on your cover page:

  • Business logo and name 
  • Contact details and address
  • Names of any significant stakeholders and their roles in your HVAC business

2. Executive Summary

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

The company summary provides a summary or business overview of each key section in your business plan. It 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. 

Include these key components in your executive summary:

  • Business overview and background
  • Vision and mission
  • Business goals
  • Brief overview of the industry
  • Details of the competitor and competitive benefits
  • Overview of the target audience
  • HVAC service technician job description
  • Synopsis of your marketing strategy
  • Summary of your financial strategy

3. Market Analysis

You present a picture of the HVAC industry in this section.

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

It helps you dive deep into understanding the core aspects of your niche business industry. 

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

Answer the following question during the industry analysis that can help you improve your 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? 

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

4. 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 give you a better understanding of the HVAC operations and current approaches of different HVAC business owners. This can simplify your HVAC journey.

The competitors that you need to analyze are

  • Direct competitors: They are the same type of HVAC companies as yours.
  • Indirect competitors: They are those who target the same audience but offer different products or services. For example, construction companies, retail stores, and home developers specializing in HVAC equipment.

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 company business do they operate?
  • What’s their HVAC business model for pricing?
  • 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

  • Can 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?

5. Business Analysis

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

hvac business startup checklist

There are three broad HVAC company businesses that you can choose

  • Residential HVAC company
    The residential HVAC company provides heating and cooling 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.
  • 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 stores, and restaurants.
    The scale of the business operations is medium or large because the client requirements can be high and you require a large team to handle the service requests. 
    The complexities and the technical knowledge required for completing a commercial project are higher than in residential HVAC project management.
  • Industrial HVAC company
    Industrial HVAC companies are specialized in providing air conditioning and heating unit repair and installation services for industrial properties.
    The scale of industrial HVAC operations is larger than that of residential and commercial HVAC companies. You require high capital to set up an industrial HVAC company.
    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 is your company history?
  • What’s the legal structure of your business? Are you incorporated as an LLC, S-Corp, or a sole proprietorship?
  • What are the issues that your business is resolving for your customers?
  • What are the resources you’ll need to manage your business?
  • What are the startup costs?
  • 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.

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

6. List of Services

This section of the HVAC business plan includes a thorough explanation of the particular services that your business will offer to its customers. Information like the following should be in this section:

  • The particular services that the company offers, such as 
    • Repairing of air conditioner
    • Tuning up and maintaining the air conditioner
    • Installation of an air conditioner
    • Furnace repair
    • Tuning up and maintaining the furnace
    • installation of a furnace
    • Installation of tankless water heaters
  • Any extra services that the company provides, such as duct cleaning, energy efficiency evaluations, and indoor air quality testing.
  • The company’s specialties, such as dealing with particular HVAC systems or technology kinds or offering services in a particular location.
  • Any accreditations or certificates that the company has, such as the Energy Star or NATE certifications.
  • Any warranties that the company offers regarding its services.
  • The procedure for providing services, including how clients may make service requests and how the company will handle those requests.

7. HVAC Pricing Strategy

The approach used by the business to establish its service pricing should be explained in full in this section. Information like the following should be included in this section:

  • The pricing strategy that the company will use, such as value-based pricing or cost-plus pricing.
  • The elements, such as material costs, labor costs, and overhead costs, that will be taken into account when calculating pricing.
  • The cost of the company’s various services, including installation, maintenance, and repair services.
  • The scope of prices for various services, as well as whether the company will charge flat rates or hourly rates.
  • Any discounts or promotions that the company will provide to customers, such as loyalty programs or seasonal discounts.
  • The price policy for any extra services that the company provides, including duct cleaning or indoor air quality testing.
  • Comparison of the pricing with those of the market competitors and the degree of competition.
  • Additionally, it is critical to discuss how future changes in the cost of living, labor, taxes, and other market conditions may affect the pricing strategy.

8. Customer Analysis

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

Customer Analysis

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

You should break down your customer base depending on their psychographic profiles and demographics to get a bird’s-eye view of your target market.

  • 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, your target commercial customers will be the business owners or management teams of different commercial businesses.
    While in the case of residential HVAC operations, your target residential customers are the household owners or the members of the residential property.
  • 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.

Having an understanding of your customers and their accurate numbers in specific areas can help you channel your marketing efforts accordingly.

9. Marketing and Sales Strategy

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

9.1 Four Ps of marketing

A quality marketing plan must include the four fundamental Ps of marketing: product, price, place, and promotion.

  • Product

    The product section should reiterate the company types you mentioned in your 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 job cost comparisons, preventive maintenance, biannual maintenance, or other maintenance services or agreements that set you apart.

    Your product or services set the tone of your HVAC marketing plan and help 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 HVAC pricing to ensure you deliver the best offers to your target audience.

    Competitive pricing can minimize your efforts to execute and fuel your marketing strategy.

  • Place

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

  • Promotion

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

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

    You can analyze your competitors and determine the 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 business plan.

9.2 HVAC marketing strategies

In the digital era, use a blend of offline and online marketing strategies to market your HVAC maintenance and repair services.

  • Online marketing strategies can include search engine optimization, email marketing, social media marketing, online reviews, and other strategies to connect with modern-day consumers.
  • The offline strategies for heating, ventilation, and air conditioning 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.
  • Focus on optimizing your marketing plan if you don’t achieve the desired business goals from the implementation process. 
  • Remain consistent with your marketing execution to achieve the desired business results.

9.3 Operational plan

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

  • Short-term goals include tasks that run an HVAC business, like dispatching your HVAC 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.

10. Funding Request

This is where you would describe your funding requirements if you were applying for funds. Your objective is to concisely describe how much financing you’ll require over the next five years and how you intend to allocate it to various business operations, resources, and projects.

Here are the key points that you need to specify:

  • Indicate whether you want equity or debt.
  • The conditions you’d like to be applied.
  • The time frame for which you’re making the request. 
  • Describe in full how you plan to spend your finances. Indicate if you require money to pay for staff, purchase supplies or HVAC tools, or pay particular business expenses till income improves. 
  • Always give a detailed account of your long-term financial goals.

11. Financial Plan

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

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

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

You can use professional HVAC financial management software, like InvoiceOwl. HVAC software helps streamline your estimating & invoicing procedures, provides financial reports, and even offers QuickBooks integration. You can get a bird’s eye view of your sales, expenses, and other financial details to run your HVAC business with finesse.

Get Financial Reports On the Go!

Easily generate financial reports and integrate the data with QuickBooks using InvoiceOwl.

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12. Appendix

Use the appendix to provide any papers that were specifically requested as supporting documentation. 

Some of the papers that are usually required include

  • Credit histories
  • Resumes
  • Product images
  • Letters of recommendation
  • Licenses
  • Permits
  • Patents
  • Legal papers
  • Other service contracts

Revising the Business Plan

If a new HVAC business wants to succeed, its business plan cannot stay unchanged. You cannot simply write your business strategy and put it aside. You need to be aware of whether your strategy is effective and, if not, what changes you should make. 

The estimates you created need to be compared to the actualities you’ve encountered while operating your business. This is why it’s crucial to periodically examine and update your business plan.  

Why is it Necessary to Prepare an HVAC Business Plan?

Setting up an HVAC plan can ensure that you set 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 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. Choosing professional software that can help you keep track of your finances can prove useful.

You can use InvoiceOwl, an invoicing and financial reporting software that generates relevant financial reports on the go. It can help you gather the necessary insights to assist in managing the business better.

Frequently Asked Questions
  1. What is an HVAC business plan?

    A document outlining the objectives, plans, and financial forecasts for a business that specializes in heating, ventilation, and air conditioning (HVAC) systems is known as an HVAC business plan.

    Information like market analysis, sales and marketing plans, operational and management strategies, and financial estimates are all included in it.

  2. Why do I need a business plan for my HVAC business?

    A business plan is crucial for every business, including one in the HVAC industry, since it directs the business’s progress and success.

    It offers a clear road map for the business, detailing the measures required to meet particular objectives. An HVAC business plan also aids in attracting investors and financing.

  3. What steps should I take to draft a perfect HVAC business plan?

    To draft an HVAC business plan, go through the following procedure:

    You may target the leads who are most likely to become customers by studying this data to determine which ones to communicate with personally and effectively.

  4. How can I continue to outperform my competitors in terms of obtaining more HVAC leads?

    Keeping up with the newest marketing techniques and technology is essential if you want to stay ahead of the competition when it comes to generating more HVAC leads.

    • First, learn about industry trends, statistics, and competitors by doing some initial research on the HVAC market and sector.
    • Next, create a price and promotion plan for your sales and marketing strategy.
    • After that, draft an operation and management strategy that also addresses staffing and service delivery.
    • Finally, create financial estimates, including profit and loss statement, revenue projections, and start-up expenses.

  5. What can I do with my HVAC business plan?

    Once your HVAC company business plan is written, you can use it as a reference to assist you to realize your business objectives. To make sure that your business is on course to achieve its goals, review it frequently. Additionally, it may be utilized to explain your business’s aims and strategies to key stakeholders as well as to get finance and draw in investors.


In essence, the success of your HVAC business depends on a well-written business plan. It gives you a step-by-step strategy for achieving your objectives and getting funding. You may create a thorough strategy that positions your business for long-term development and success by following the points discussed in this blog. 

To stay on track and adjust to market developments, keep in mind to evaluate and revise your plan periodically. 

It’s also crucial to utilize HVAC estimating & software, like InvoiceOwl, since it streamlines business processes, and boosts the efficiency and accuracy of estimates and invoices. Additionally, you can also gather insightful information from the financial reports that InvoiceOwl generates.

All in all, having a solid business plan and the appropriate equipment and software is crucial for being competitive in the HVAC sector.

Author Bio
Jeel Patel
Jeel Patel

Jeel Patel is the founder of InvoiceOwl, a top-rated estimating and invoicing software that simplifies the invoicing and estimating processes for contractor businesses. Jeel holds a degree in Business Administration and Management from the University of Toronto, which has provided him with a strong foundation in business principles and practices. With understanding of the challenges faced by contractors, he conducted extensive research and developed a tool to streamline the invoicing and estimating processes for contractors. Read More

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