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How to Write Your HVAC Business Plan

How to Write Your HVAC Business Plan

This blog post provides a comprehensive guide on how to write an HVAC business plan. It covers everything from understanding the HVAC business model to writing your introduction.

The HVAC industry serves individuals and businesses requiring heating, ventilation, and air conditioning solutions. And, with a $150.93 billion market value, it’s a booming industry.

However, you can’t jump in without a map. That’s where a business plan comes in.

Effective planning is critical for any business, not just HVAC.

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It can be overwhelming if it’s your first time launching a company. Nevertheless, it shouldn’t be. In this post, we’ll deal comprehensively with writing an HVAC business plan to guide you. 

Understanding the HVAC Business Model

How does an HVAC business operate?

You should understand that before putting pen to paper to create a plan. 

Undoubtedly, the industry revolves around heating, ventilation, and air conditioning systems. However, the HVAC business model is dynamic. 

Components of an HVAC Business

Your HVAC model can contain several components. Check them out below:

  • Installation: here, you help customers set up HVAC units. It collides with replacement, as you either install in new constructions or change existing systems. 
  • Maintenance: this area involves ensuring HVAC systems run optimally. It’ll generally include periodic checkups, cleaning, and recalibrating.
  • Repair: HVAC units can break down after prolonged use. That’s where repair companies come in: to fix.
  • Consultation and design: the job here is to design and recommend HVAC solutions following customer demands. This is common with commercial companies and large residential projects. 
  • Sales of units: selling HVAC units, parts, and accessories is another workable route. Here, you’ll need to work with manufacturers and supply chains.

You can integrate all components listed above. However, when starting, it’s ideal to narrow it down to one or two. You can expand with time as your business grows. 

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HVAC Revenue Streams

Now, how do you generate revenue as an HVAC business? Well, your options include:

  • Service charges: this is the primary revenue source for HVAC. It fits installations, repairs, and maintenance services.
  • Sales: of course, if you’re selling units and parts, this is how you make a profit.
  • Service contracts: you can sign contracts for maintenance or sales to regularly service or deliver HVAC systems. It’s one of the best options for a steady income.
  • Emergency services: incorporating this into your business model means you can collect premium charges when customers request your services impromptu. 

Writing Your HVAC Business Plan

Let’s get into the real deal.


Having an introduction seems cliche.

However, it’s a vital part of your HVAC business plan. With a scan of your introduction, anyone should know where you’re coming from, where you are, and where you’re going. You’ll detail these in various sections, depending on the sample at hand. But here’s a pattern to follow:

  • Company background: write about your HVAC business’ inception and where you were before. Include all certifications and experience you have that fit the industry standards.
  • Vision: outline your projected growth, innovation, and market presence. Basically, you’re informing people where you see your business in the future.
  • Mission: here, talk about the primary purpose of your HVAC business. Your model components play a major role. However, tailor your mission to benefit your clients, not just your HVAC business and its revenue.

Market Analysis

Analysis from Mordor Intelligence reveals the HVAC market is favorably competitive. 

Interpreting the above statement is simple. There’s competition, but one you can scale through with the right approaches. First, understand your market situation.

The question here is: who is your target audience and competition? To get answers, here’s what you should do:

  • Research target market: in this section of your HVAC business plan, research and specify your prospective clients. Segregate them based on demographics, geographical locations, and particular needs.
  • Analyze your competitors: the goal here is to report as many details as possible about competing HVAC businesses.  Outline their weaknesses, strengths, market share, pricing models, and more. You can then consult the information whenever necessary.
  • Trends and challenges: enlist the current trends and challenges in the HVAC niche. You can leverage the former, provide solutions for the latter, and skyrocket your business. 

Marketing and Sales Strategy

Customers will only hear of your services and products when you have a working marketing strategy. Similarly, a robust sales strategy will ensure you deliver at the right time and for the right price.

Yet, stats show close to 50 percent of businesses go about marketing without a strategy.

So, if you blueprint one as you launch your HVAC company, you get a significant edge over your competitors. The below tips will help you draft a marketing and sales strategy for your business plan:

  • Specify your UVPs: Unique value propositions (UVPs) make your HVAC brand stand out. For instance, you can plan to offer faster services, longer warranties, and specialized HVAC units — if your competitors are lacking in these areas. These are a must in your business plan.
  • Develop an online presence: you can’t market without the internet in today’s world. So make provisions for a website and presence on other platforms like social media. We already wrote extensively on leveraging social media as an HVAC business. 
  • Advertise: making room for PPC marketing is ideal. You can run these ads on Google or on social media. Hence, this approach coincides with the previous one. 

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Organizational Structure

Now, it’s time to look inwards.

Your HVAC business plan won’t be all about selling and reaching customers. You also need to designate the internal workings of your company. It’s crucial to ensure smooth operation, and it also ensures customer satisfaction.

Here’s what you should do:

  • Outline key roles: this is simple. Create your team hierarchy and specify primary positions.
  • Map out responsibilities: your HVAC business plan should specify tasks for each player in your team. Installation and repairs to technicians, client relationships to sales reps, and so on. As the director or CEO, your duties should be clear, too.
  • Training: perhaps you would want to add programs to keep your team updated with the latest HVAC tech and practices. Such plans also come under the organizational structure section.

Financial Projections

Business is all about money. So, if your HVAC plan doesn’t cover finances, it’s not a business plan.

When talking about financial projections, the aim is to cover profitability, growth, and ROI. You should delineate all potential expenses and compare them with prospective profit sources.

That way, you can plan the best way to keep getting revenue in the long run. And it doesn’t have to be difficult. Follow the below approaches:

  • Startup costs: this covers all initial expenses, like equipment purchases, rent, and first marketing campaigns, to name a few.
  • Monthly operating costs: these include recurring expenses, which typically come in at the end of the month. Consider salaries as an example.
  • Revenue projections: in this area, estimate how much your business can make monthly and annually based on your revenue streams. When you compare this with the operating costs, you’ll know if you’re bound to make a profit or a loss.
  • Break-even analysis: from your revenue projections, calculate when you can start making profits. That is, after all expenses have been covered.
  • Growth and ROI: you can go long-term and calculate your potential ROI in five or more years. Factor in prospective price changes, market expansion, and improved brand awareness. For ideas, see our guide on how to effortlessly grow an HVAC business.

Starting on the Right Foot: The HVAC Business Startup Checklist

Writing your business plan is one thing, actualizing it is another.

The latter is possible only if you possess what it takes to run an HVAC business. In other words, your plan is just one box in the HVAC startup checklist. We highlight others below.

Business essentials checklist

Besides your business plan, the following are also essential when starting an HVAC company:

  • Legal structure: decide if you’ll be a sole proprietorship, corporation, or LLC.
  • Business name: register a brand-reflecting business name with the relevant authorities.
  • Employer Identification Number: this is all about tax payment. You can get more info from our comprehensive tax guide for HVAC startups. 

Licenses checklist

You need several licenses and certifications to operate as an HVAC business. These include:

  • HVAC license: this is mandatory for many US states. Having one is still worthwhile, even if your state doesn’t demand it.
  • Business license: you’ll apply for this from your county or city. Without it, your HVAC business is illegal.
  • Insurance: you need several insurance licenses to protect your business and workers. We outlined all essential ones in this complete HVAC insurance guide
  • Certificates: consider acquiring certificates like NATE, EPA, and HVAC Excellence to stay above the competition. 

Operational checklist

The requirement here is simple. These are what you need to run your business., and they include:

  • Office space: where you operate from.
  • HVAC equipment and tools – especially for installation, maintenance, and repairs.
  • Inventory — particularly if your HVAC business model involves sales of units and parts.
  • Vehicle: a mode of transport from your office or warehouse to clients’ location is highly important.
  • Software and technology: you must invest in quality business management software. It’ll help with all operational aspects, from scheduling tasks to relating with customers.

Team checklist

Here, the focus is on your employees.

You have two options: hire already experienced professionals or train recruits. The workers you need will depend on your business model, but here are the must-haves:

  • Manager
  • HVAC technicians
  • Sales representatives
  • Customer support staff

Marketing and branding checklist

After ticking all points off the previous checklists, you’re ready to market. These are what you need:

  • Memorable logo and slogan
  • User-friendly website – see our advanced HVAC SEO strategies guide on maximizing your site’s potential. 
  • Social media accounts
  • Well-defined online and offline marketing strategies.

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HVAC Business Startup Costs

As mentioned before, business is all about money. 

You can have the most efficient plan, yet it amounts to nothing if you lack capital. So, how much should you  budget? Here are estimated HVAC business startup costs to guide you:

  • Licensing and permits: $150 to $1,500
  • Insurance costs: $1,500 to $10,000 per year
  • Certifications: $150 to $1,000
  • Vehicle expenses: $20,0000 to $50,000
  • Equipment and tools: $2,000 to $10,000
  • Inventory costs: $5,000 to $50,000.
  • Office space: $500 to $5,000 per month
  • Software and tech: $50 to $500 per month
  • Website: $500 to $5,000
  • Marketing and advertising: $1,000 to $10,000
  • Employee wages and training: $500 to $5,000 per employee monthly

Again, the above are estimations.

The exact amounts you’ll spend will largely depend on your locality. Note that you can always source for financial assistance. Check out our guide on raising money as a startup to learn some ingenious ideas. 

Business Plan For HVAC Company: What Next?

With your HVAC business plan reading, the thing is to begin taking action.

Always monitor your brand activities to ensure they’re inline with your mapped out plan. However, it’s ok to adjust, using feedback from customers and employees. Also work with market conditions. 

Keep a tab on our HVAC marketing page, so you don’t miss any of the latest tips to grow your business.

Hand-Picked For You:


How do I define my HVAC business goals?

You define your HVAC business goals by first analyzing the market, target audience, and competitors. Afterward, you can identify areas in the market competitions companies don’t cover, and incorporate it into your goals.  

How profitable is an HVAC business?

The HVAC business is highly profitable, as heating, ventilation, and air conditioning products are in high demand. At the moment, the market is worth over $150 billion and could reach over $230 billion before 2023.

Are HVAC startup business costs expensive?

Whether HVAC startup business costs are expensive is subjective. It hangs on your business model, scale, and location. If you have a tight budget, you can launch a small scale HVAC startup with workable expenses. 

Should I start my own HVAC business?

Starting a HVAC business is worthwhile since the market is profitable. So, you can launch your own brand, but ensure you have a clean plan on how you’ll operate.

How do you write an HVAC contractor business plan?

You can use the guide and instructions in this post to write your HVAC contractor business plan. Sample HVAC business plan pdf files can also help.


  • J.R. Isong

    As a business growth strategist, I specialize in helping small business, especially HVAC and Legal Practices, achieve sustainable growth through the development and implementation of strategic initiatives.

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