HVAC Business Plan
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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
- Utilize digital platforms as technical assistance tools for diagnostics and repairs
- Provide the most up-to-date and innovative HVAC systems and repair service
- 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.
Download the HVAC business plan template (including a customizable financial model) to your computer here <–
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:
- 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
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.
Download the HVAC business plan template (including a customizable financial model) to your computer here <–
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.
The precise demographics for Anderson’s Heating Ventilation & Air Conditioning Company are:
| Total | Percent | |
|---|---|---|
| Total population | 1,680,988 | 100% |
| Male | 838,675 | 49.9% |
| Female | 842,313 | 50.1% |
| 20 to 24 years | 114,872 | 6.8% |
| 25 to 34 years | 273,588 | 16.3% |
| 35 to 44 years | 235,946 | 14.0% |
| 45 to 54 years | 210,256 | 12.5% |
| 55 to 59 years | 105,057 | 6.2% |
| 60 to 64 years | 87,484 | 5.2% |
| 65 to 74 years | 116,878 | 7.0% |
| 75 to 84 years | 52,524 | 3.1% |
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.
Download the HVAC business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
Anderson’s Heating Ventilation & Air Conditioning Company will be able to offer the following advantages over their competition:
- 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
- Utilize digital platforms as technical assistance tools for diagnostics and repairs
- Provide the most up-to-date and innovative HVAC systems and repair service
- 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.
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
- Utilize digital platforms as technical assistance tools for diagnostics and repairs
- 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.
Pricing
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.
Download the HVAC business plan template (including a customizable financial model) to your computer here <–
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
Management Team
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.
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:
- 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
Download the HVAC business plan template (including a customizable financial model) to your computer here <–
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
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | ||||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
| CASH FLOW FROM INVESTMENTS | ||||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 | |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
| CASH FLOW FROM FINANCING | ||||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 | |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
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: