In the success stories of any thriving service business, is a solid business plan. A business plan outlines company goals, objectives & financials as well as predicts and prepares a plan to continue driving business. HVAC businesses, in particular, face unique challenges that require detailed planning and a solid business plan to anticipate business trends. Looking to help your HVAC business flourish in sales and scale? You need an HVAC business plan.
HVAC Business Plan Necessities
A strong HVAC business plan will detail the specifics for this high demand service, but it also needs the basics and structure of any industry business plan. As a roadmap for your business, your business plan should contain: a summary or description of your HVAC business, your service or product offerings, a market analysis of customer needs and competitors, and the legal & management structure of your business. After establishing the necessities, your financial projections make up the next piece of your business plan. This financial portion should be clear and transparent, breaking down the true cost of doing business for you as an owner but also for your shareholders or investors.
Determine Your True Cost of Business
Calculating the true cost of business is essential to creating a clear direction for your HVAC business and will help you establish a budget that allows your business to continue growing. Your break-even number, correct selling and service price, and your profit margin, all make up the true cost of doing business and will help you establish your budget. Download our free breakeven calculator here.
Build Your Budget
Your HVAC business plan should clearly establish what the overall budget will be for your business. List out every estimated expense you will encounter while operating your HVAC business and then organize these estimates to help determine the budget. Remember, your business plan is your roadmap. Use it as a guide to help you run your business. Your business plan should include your financial, marketing and training plans, with budgets established for each.
Create A Financial Plan For Your HVAC Business
Every business has basic costs that are built into the overall financial plan for the business. For instance, HVAC businesses experience seasonal trends; including peaks during the colder months for heating, and warmer months for cooling systems. With business tending to lull in the milder months, specifics like this must be calculated in the true cost of doing business in your business plan. Next, calculate one time costs like: startup fees, legal, licensing and certification fees, as well as ongoing expenses. Ongoing expenses may include: overhead, transportation, phone and internet service, and equipment maintenance.
After finding that total, calculate the current market rate to help you determine what your break-even number is. This break-even number is the base of your pricing structure, daily budget, and projected profits. Based on the services and products your HVAC business will provide and sell, your break-even number will help you establish prices that lead to profitability and staying within your budget. Sound too complicated? We’ve made it simple. Download our breakeven calculator here.
Create A Marketing Plan For Your HVAC Business
How do you plan on bringing awareness to your HVAC business in such a concentrated market? Who is your target market and how do you want to service them? Do you want customers to find you? Or do you want to invest in putting your business in front of your ideal customer? Do you have a logo or brand identity yet? These are all things to consider when creating your business plan’s marketing strategy and plan. Understand what your marketing needs are so you can properly plan ahead and budget properly.
Word of mouth continues to be the strongest form of advertising for service industries. But this doesn’t mean you don’t have to put in any work. When consumers search to find you, it should be easy. Make sure you stand out. Plan your marketing and brand identity to make it easier for customers to spot your business. Additionally, figuring out what will differentiate you from other HVAC businesses will help you stand out from the crowd.
It is easier than ever for consumers to find exactly what they are looking for, which is especially beneficial for HVAC businesses. Understanding your customer will allow you to present yourself in a way that they will respond and react to. You don’t have to be a digital expert to understand the value of having a digital presence for your business. Do you have a customer who responds well to creative direct mail? Whether you need a website, business cards, or attend a fair or expo to achieve your marketing goals, explore the marketing options that will support your business the best and include this in your HVAC business plan. Including this in your plan allows you to come back over time to review the effectiveness of your marketing strategy with data to support your decisions.
Plan & Invest In Training Top HVAC Talent
Your HVAC business plan should clearly state the mission, goals, objectives, strategies, and tactics of your business in the opening summary. These fundamentals help to establish a detailed plan for how the goals set will be supported by top talent. The most valuable asset to any successful HVAC business, are the people that keep the business running. Consistent and thorough training is the root of consistent service. Well-trained employees support the trustworthiness of your HVAC business, creating repeat customers and a strong word of mouth reputation.
Your training and talent plan should include your staffing needs, clearly stating their roles to help you find the exact talent you need for your objectives, as well as an overview of operating procedures set by you that help to standardize service. The training plan should also include your recruitment and retention strategies. How will you find top talent? How will you support their value through compensation and benefits?
Training is a continuous process. Re-train as the industry evolves. Investing in that training will allow your team to know you support them by giving them all the tools needed to be successful in their roles. Team members who feel supported and empowered pass that along to your clients through exceptional service. In addition to supplying tools and training, it’s necessary to do their jobs well. Your business plan should state how you plan to invest in engagement programs and initiatives for teams to maintain retention of top talent.
Finalize & Review your HVAC Business Plan
Taking the time in the early stages of your business to clearly develop an HVAC business plan, will make a remarkable impact on the overall health and longevity of your business.
Your business plan, much like a roadmap, will change and update along with the road over time. You should review your business plan periodically against your revenue and profits to see if you are still on target with your goals or if it is time to re-assess.Your plan needs to be a living document that will update with changes in the market, additions to service offerings and new business objectives, strategies, or whatever else may come over the lifetime of your business.
Understanding the overall necessity of a strong HVAC business plan, allows you to create a comprehensive vision for your business that establishes your success and works to continue driving it.
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The Blue Collar Success Group provides HVAC business training, as well as training for plumbing businesses, electrical businesses and more. To download free tech training videos, closing techniques training, and a ride-along guide, click here.