How to Write an HVAC Business Plan + Free Sample Plan PDF

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Download: Free one-page HVAC sample business plan

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No one wants to spend hours living or working in sweltering heat or bitter cold.

Over 3 million heating and air conditioning systems are replaced in the United States each year. As a result, the HVAC industry employs 1.5 million people and generates over $150 billion in annual revenue.

There are plenty of opportunities for skilled technicians looking to start or grow an HVAC installation and maintenance business. But just because demand is high, it doesn’t mean that anyone who knows how to install equipment can successfully enter the market.

Writing a business plan will help you align your services with the opportunity in your area. It also matches your vision for the business with your financial resources. And you’ll need to write a plan if you’re seeking a bank loan or investment for your business.

This article will help ensure that your plan includes the right information and supporting data to highlight your HVAC business, and convince investors that you’ll run an efficient operation that’s profitable over the long term.

What should you include in an HVAC business plan?

Don’t get too hung up on trying to hit a certain number of pages in your business plan. Just focus on the aspects of your plan that are most important based on what you want your plan to accomplish. If you’re looking for in-depth guidance, Bplans can guide you through writing your full business plan in detail.

In this article, we’ll cover a few of the business plan components you’ll likely include in your HVAC business plan:

• Executive Summary
• Market Analysis
• HVAC Services and Pricing
• Operations Plan
• Marketing and Sales Strategy
• Company Summary and Funding Needs
• Financial Plan and Forecasts

As you write your plan, be sure to consider the full range of services you might be able to offer customers. For instance, you might not only provide installation, maintenance, and repair services but also sell HVAC units, smart thermostats and related products. 

Including all these possibilities in your plan will help you determine the feasibility of adding revenue streams and opportunities to enhance customer value through product sales alongside your services. Just make sure your plan details strategies for providing whichever services you decide to offer.

Here’s an example of an HVAC business plan outline.

The 7 elements of an effective HVAC business plan

1. Executive summary

The executive summary outlines the broad vision and opportunity for your HVAC business. It provides readers with a brief, high-level overview of your plan, one that emphasizes your unique value proposition and competitive advantages.

Write a mission statement, which describes the purpose of your business. Maybe you aim to provide energy-efficient and environmentally sustainable HVAC systems. Or perhaps you provide top-notch customer service for both residential and commercial customers.

Touch on key factors for the success of your business, like your location, service offerings and staff.

2. Market analysis

Without understanding the needs of customers in your target area, you won’t know which products or services will generate the most sales.

That’s why conducting a thorough market analysis is crucial. What do homeowners and commercial landlords in your area need? If you’re in a warm climate, air conditioning systems will be in high demand. But a cold-weather market will drive demand for heating systems. Other factors to consider include the age and condition of buildings in your service area. 

Researching the market helps identify your target customer segments and understand their specific needs and preferences. This analysis should cover demographic details, purchasing behaviors, and the size of your target market. Additionally, provide an overview of the competitive landscape, identifying key players and their market positioning. Highlight industry trends, such as the growing demand for energy-efficient systems that support the potential success and relevance of your HVAC business.

3.  HVAC services and pricing

List the full range of HVAC services your business plans to provide, such as installation, maintenance, and repair services for heating, ventilation, and air conditioning systems.

You should also outline your pricing strategy. Detail how you intend to offer competitive rates while ensuring profitability. Whether you adopt a value-based pricing model or a cost-plus approach, this section should explain how your pricing aligns with market expectations and customers’ willingness to pay.

4. Operations plan

Finding customers is one challenge. Once you have them, you’ll need a solid operations plan to ensure you can meet their needs. This section of your plan details the day-to-day operational aspects of your business.

You’ll need to account for delivering your HVAC services and all of the related logistics of service delivery, the equipment required, and any business policies or standards you intend to implement. If you have employees, spend time in this section covering how you will coordinate with them to ensure they have the right equipment and information when they head to a job site.

5. Marketing and sales strategy

Your marketing and sales strategy expands on your market research. This section outlines the methods you’ll use to attract and retain customers.

You should start by identifying the most effective marketing channels for reaching your target market. Take a look at how other HVAC companies are promoting their services. Are they advertising online, or on TV and radio? Do they have active social media presences, or are they relying on more traditional methods like printed flyers or partnerships with real estate agencies?

Once you understand where your target audience gets information about HVAC services, write down your strategies for investing in these marketing and sales channels. Try to include estimated costs and projected return on investment for each channel.

Remember, different product and service offerings might require different marketing tactics. For instance, you might want to promote the energy efficiency aspects of your service online. But customers seeing your ads on television might be more interested in your pricing versus competitors.

6. Company summary

In the business overview section, detail your business model, including the legal structure and geographical location of your operation. 

Briefly list the range of HVAC services you offer. You’ve already provided details on these in the services and pricing section, but the company overview is where you explain how these services address specific customer needs or market gaps. This part of the plan should clearly articulate the problems your business solves, emphasizing the value and reliability your company brings to the HVAC market.

You can also include a bit about your management team, highlighting the key roles and the expertise each member brings to the HVAC industry. And if you’re seeking bank or investor funding for your business, you can lay out the funding request and explain how you intend to use the funds here.

7. Financial Plan

The financial plan should present detailed financial projections for your HVAC business, giving a reader an understanding of how you expect the business to perform in the short and long term.

Include revenue, costs, and profitability, as well as a cash flow statement, income statement, and balance sheet.

If you’re starting a new business, provide details on startup costs, revenue streams, and funding requirements.

Remember, forecasts are just educated guesses. At the same time, the goal of your financial plan is to demonstrate your cleaning service’s ability to generate a profit. If your numbers don’t show a pathway to profitability, you may need to rethink your service offerings or marketing strategy.

Key considerations for writing an HVAC business plan

Building supplier relationships and managing how cash moves in and out of your business is essential. So is understanding what your customers want. To write an HVAC business plan that helps you streamline operations, reduce wasteful spending, or get a bank loan, consider addressing these points.

1. Go deep with your market research

Utilize data from public sources like the U.S. Census Bureau to drill down on the number of households in your area. You can also use Google to research commercial properties in your area that might need HVAC services, like office buildings or retirement homes.

2. Make your credentials clear

Highlight your team’s expertise, certifications, and accreditations. They serve as proof of your credibility to clients, lenders and investors.

3. Professional training and standards

Document your plans for committing to ongoing training on the latest HVAC technologies and safety standards.

4. Supplier relationships and inventory

Detail your plans for sourcing your HVAC systems, and how you’ll store the systems before delivering them. Also, describe your logistical arrangements for job site deliveries, including transportation needs, such as whether you will need a company van.

5. Accounts receivable and accounts payable

It’s likely you won’t immediately be paid in full for your services. Make sure you account for this in your forecasts. Incorporate realistic financial projections considering delayed payments for services and the gradual settlement of equipment expenses.

Download your free HVAC one page sample business plan

Download your HVAC business plan sample now for free, or explore the Bplans gallery of over 550 sample business plans if you want to see plans for other industries.

Writing a business plan for your HVAC business boosts your chance of success for a variety of reasons. We’ve mentioned its importance if you’re seeking a loan or investment. But just going through the process of thinking through each aspect of your operation will help make sure you don’t leave any stone unturned as you build a successful business.