How to Bring Your Vision of Owning an HVAC Business to Life With an Effective HVAC Business Plan

8 min
Nov 16, 2022

You’re ready to start your HVAC business, but you’ve heard the statistic that one in five startups fail within the first year. 

How do you avoid failing within that year? The first step: create a solid business plan.

If you don’t know what that is or how to get started, our guide has everything covered. 

In this guide, we will share a sample business plan for HVAC companies that you can replicate. 

What Is a Business Plan?

Think of a business plan as a roadmap for your business. Simply put, it is a document that provides all the information about your business objectives and how your business will achieve its goals.

Your HVAC business plan should focus on the following components:

  • Operations
  • Financials; and 
  • Marketing 

Why You Need to Have a Business Plan for Your HVAC Company

Before anything else, preparation is the key to success” – Alexander Graham Bell 

When starting an HVAC business, if you don’t take the time to prepare a business plan, you’re setting yourself up for potential failure before you even get your feet off the ground. 

Data suggests that HVAC businesses that finish a business plan are twice as likely to succeed at growing their business than those that have no business plan. 

Plus, when you’re an HVAC startup, a business plan is a great way to start walking through the initial steps – like thinking through how to market your services or understanding your business finances.

Your business plan should answer questions like: 

  • How you will promote your business 
  • Who your target market is
  • What your sales strategy looks like

HVAC Business Plan Sample

If you’re struggling to create a business plan from scratch, don’t stress. You’re not alone. Many new business owners do. For this reason, we recommend using an HVAC business plan template, like the one provided below, to help you get started. 

This way, you can ensure you’re not missing any essential pieces of a successful business plan.  

Let’s use a pretend company, “The Air Supply Inc”, in our sample business plan for an HVAC company below. 

Executive Summary

An executive summary is essentially the introduction to your business plan. This section can be used to outline your business status and the type of HVAC business you plan to build. 

Are you an experienced HVAC technician finally ready to start your own business?

Maybe you’re just out of school and ready to hit the ground running with your own business. 

Will you be opening a physical location? Or working out of your home? Will you employ other technicians? 

What areas will you service? 

All of this type of information should be included in your executive summary. Although this is the first part of your HVAC business plan, you won’t know many of these details until you’ve completed the majority of your business plan. We suggest you save this section for last.

2.1 The Business

The HVAC business will be registered under “The Air Supply Inc” and will be located in Sacramento, California. 

The business is owned by John Murphy, an experienced HVAC technician of 20 years. 

2.2 The Management Team

John Murphy has over 20 years of experience as an HVAC professional. He is a first-generation HVAC tech ready to help his community by offering his own services.  

John has hired his longtime colleague, James Blu, as his sales manager and Jaxson Michael as his service manager. With a combined experience of over 10 years in business management, John believes his management team will excel. 

2.3 Customer Focus

With a community-first attitude, John always puts the needs of his community as his top priority. His number one goal is to build trust with his community members and provide exceptional customer service for each and every client.

2.4 Business Target

Because John has been in the field for so long, he understands how to bring in revenue by attracting – and keeping – customers. He plans to implement industry best practices and a top-notch HVAC business marketing plan to increase clientele.

Company Summary

Next, we’re providing details about company logistics: 

  • Who the business owner is
  • The purpose of starting the HVAC company 
  • Goals you wish to achieve through starting an HVAC business
  • What is the purpose of starting your electrical business
  • Any anticipated costs associated with starting the business 

3.1 Company Owner

As a highly-experienced HVAC professional, John Murphy is well known in his community as the first technician to call when their HVAC system begins to act up. John has worked in the residential and the commercial space – giving him a competitive edge in his area. 

3.2 Purpose of Starting the Business

John Murphy realized there was a larger need for an HVAC company in his small town, and with decades of experience, John knew that he had to help his community. 

John’s expert insight into every aspect of the HVAC industry has given him a clear understanding of the demand for a reliable HVAC company in his area.

Thanks to a residential housing market in Sacramento, home builders and remodelers need HVAC services. John is confident that it is the best time to launch his HVAC business. 

3.3 Logistics for Starting the Business

John has a clear understanding of the technical aspects of running an HVAC business but has decided to hire financial business experts to help him create an in-depth financial analysis. 

With this analysis, John can create a budget that details each part of his business, including: 

  • Payroll
  • Equipment
  • Company vehicles
  • Marketing and advertising
  • And more

Services for Customers

Air Supply Inc plans to offer a variety of residential and commercial services in Sacramento. This will provide John with the opportunity to leverage his wide array of skills and years of experience to service a growing audience of clients. 

Air Supply Inc will include the following services:

  • Inspections
  • System cleaning and repair
  • HVAC Installation
  • HVAC Repair
  • Duct Cleanings
  • Water-based System services
  • And more

Marketing Analysis

John has done the research for years, he’s found that HVAC services will always be in demand. 

HVAC services play a key role in the real estate industry. Building contractors and remodelers are always looking for experienced HVAC technicians to help on project sites. Residential customers are always in need of assistance in their homes. 

The demand for building and remodeling provides an excellent opportunity for future growth. 

This knowledge has helped John research and create a detailed marketing analysis. 

5.1 Market Segment

For Air Supply Inc to meet its financial goals, John must have a clear understanding of the demographics and the target market in Sacramento. 

5.1.1 Individuals and Households

Sacramento has a population of over 535,000 people. Based on this data alone, John and the team at Air Supply Inc understand that a large source of customers will be those living in individual homes who need HVAC services. 

He has created his business plan for his HVAC company to outline exactly what he needs to do to reach this market of people. From the start, Air Supply Inc should focus on the best ways to reach local households throughout the city.

5.1.2 Corporations

Sacramento has a high concentration of commercial buildings, including: 

  • Retail stores
  • Restaurants
  • Shopping districts
  • And more

To increase awareness, John will focus on advertising and increasing leads for commercial HVAC services to help maximize the business’s profit margins. 

5.1.3 Real Estate Owners and Developers

With a highly competitive housing market, John and his team know that they need to make it a priority to target and market to real estate owners throughout the Sacramento area. 

5.1.4 Government Agencies

Sacramento is home to a number of local government agencies. These agencies can provide an increased revenue for John’s HVAC business. 

John will work with his team to create the best strategy to make connections to the different agencies in the area, including: 

  • Sacramento Department of Motor Vehicles
  • Sacramento City Hall
  • Sacramento VA Hospital 
  • Sacramento Police Department
  • And more

5.2 Service Pricing

John will create a pricing structure to account for a 40% profit margin for each service based on:

  • The project’s materials
  • Necessary permits
  • Taxes
  • Labor cost; and
  • Overhead costs

This will help the business reach its target revenue. Having set service pricing with a set profit margin will help the business obtain its target revenue.

Business Strategy

Implementing holistic business strategies will help the business land the leads and sales needed to generate revenue.

6.1 Competitor Analysis

Air Supply Inc identified the top competing HVAC businesses in the area. During this research, John analyzed each competitor to determine:

  • Their reviews/local reputation
  • Their most popular services
  • What they do differently compared to other businesses
  • The type of marketing strategies they are implementing 
  • And more

6.2 Advertising Strategies

Air Supply Inc needs to attract new leads, phone calls, and sales in order to gain customers and traction. To do this, Air Supply Inc plans to implement several advertising strategies:

  • Traditional marketing strategies such as distributing brochures, letters, and company materials to targeted customers and service areas.
  • Hosting a grand opening event, inviting stakeholders, prospective clients, and other local businesses like electricians, plumbers, and more. The goal is to create positive rapport throughout the community and create networking opportunities. 
  • Invest in advertising and public relations for Air Supply Inc in newspapers, on television, and on the radio. 
  • Utilizing free web listings like Google Business Profile, Yellow Pages, and Yelp.
  • Investing in SEO and ad campaign strategies.
  • Implementing referral marketing and word-of-mouth strategies.
  • And more

6.3 Sales Forecast

For Air Supply Inc to successfully grow, John has created a sales forecast with the help of a team of financial experts.

This forecast includes:

  • A  list of services
  • The “unit price” charged to the customer
  • The “unit cost”, which covers the cost of materials, gas, etc.
  • A goal amount of jobs to be completed within a calendar year

Personnel Plan

HVAC systems are tricky things and the success of Air Supply Inc relies heavily on the caliber of its employees. John knows the importance of having experienced, skilled, and reliable employees and has made his hiring efforts a top priority. 

7.1 Personnel Plan

James Blu is serving as the Chief Executive Officer at Air Supply Inc, but the following staff members still need to be hired:

  • 7 HVAC technicians
  • 1 technical manager
  • 3 sales and marketing executives
  • 1 accountant
  • 2 customer service assistants

John will ensure that each new hire undergoes extensive training to get a clear understanding of the company’s operations, mission, and values.

7.2 Average Salaries

Air Supply Inc will compensate staff members fairly and competitively within the first four years of operation according to company growth. 

Financial Plan

Air Supply Inc, with the help of a knowledgeable financial team, has created a financial plan to help guide the business to financial success.

John's personal savings will account for the majority of the capital, but will also have the capital of several investors. For additional funding, John will be relying on the Flexbase Card.

8.1 Critical Assumptions

Critical assumptions on interest and tax rates are outlined below:

8.2 Break-Even Analysis

Air Supply Inc’s break-even analysis is shown in the table below:

8.3 Projected Profit and Loss

In the table below, the projected profit and loss are calculated on a monthly and annual basis:

8.4 Projected Cash Flow

Air Supply Inc plans to calculate the projected cash flow based on the following figures: 

  • Subtotal of cash received
  • Subtotal cash spent
  • Subtotal cash from operations; and 
  • Subtotal cash spent on operations 

8.5 Projected Balance Sheet

8.6 Business Ratios


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8 min
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