How to Start an HVAC Business in 2022 - Starting in Air Conditioning (2022)

Over the last five years, heating and air conditioning contractors in the United States has grown by 3.1% to reach $94 billion in 2018. During the same timeframe, the number of HVAC businesses has grown by 2.6% and the number of employees has grown by 4.5%. If you’re interested in helping people keep their homes at a comfortable temperature and save money with energy efficiency, now’s the time to get into the HVAC industry.

Step 1: Start with a Business Plan

A good HVAC business begins with a business plan. Within that document, you’ll define your local competition, target market, marketing plan, business structure, financial obligations, revenue projections, and so on. Taking the time to develop your business plan keeps you on the right track and can make it easier to secure startup funds from banks or other investors.

Market research is necessary to determine how viable your HVAC business will be. You must know how many other HVAC companies are in your service area, the number of homes, the franchises you’ll be competing with, what the competition charges, and more. Good sources of information include city-data.com, the US Chamber of Commerce, and the Bureau of Labor and Statistics (BLS).

During this stage, you’ll also want to determine the service area you’ll cover, along with how far you’re willing to travel to a job site, and circumstances you’ll work under. Will you provide emergency repair service calls or operate during standard business hours only?

Google the HVAC businesses in your area and take a close look at the websites of the companies that come up on the first page – that’s where you want to be. To start working on your digital marketing strategy, a tool like KWFinder is useful in discovering the keywords your competition is using so you can do it better.

Here’s where you’ll address the legal business structure you’ll operate under. This is necessary for meeting tax obligations and removing personal liability from any business. LLCs are an affordable business structure that allows you to maintain a separation from your company. During the business set up, you’ll need to be sure you’re meeting all local, state, federal legal requirements, including business licensing and insurance. Requirements may vary depending on where you live and operate your business.

(Video) 3 Ways To Maintain A Profitable HVAC Business In 2022

Now it’s time to think about money. You’ll need a separate bank account so it’s easier to separate the money you’re spending on your business and the money you’re spending on personal stuff. To make sure you’re setting rates that are competitive but allow you to sustain your HVAC business and pay yourself a decent salary, take time to figure your income. Make sure to consider your years of experience as you set your rate.

Step 2: Determine Startup Costs For An HVAC Business

Starting an HVAC business isn’t cheap, and one of the biggest mistakes you can make is failing to account for all business expenses. This is an industry where the average startup cost is a bit higher, spending anywhere from $2,000 to $10,000, assuming you’re buying a used vehicle and working to keep your equipment costs low. If you purchase everything up front, the cost could easily hit $100,000. You’ll need:

  • A vehicle large enough to carry all your tools and equipment
  • Liability insurance, workers compensation insurance
  • General tools used in HVAC such as a battery-powered drill, electrical testers, tape measures, sawzall, etc.
  • HVAC tools used for sheet metal work, such as tin snips or aviators, folding bar or drive bender, shears, crimpers, staple gun, etc.
  • HVAC tools for air conditioning work
  • Supplies
  • Safety equipment
  • T-shirts with company logo and hats
  • Vehicle signage
  • Website (Broadly can help you get started)
  • Marketing materials: business cards, door tags to verify service with contact information
Learn How To Grow Your Business Quickly

Step 3: Skills, Education, and Certification For HVAC Owners

How to Start an HVAC Business in 2022 - Starting in Air Conditioning (1)

Before you can begin work as an HVAC technician, you must complete an HVAC certificate program from an accredited program or school, depending on your state. Then, you must obtain your HVAC license from the state you plan on working in and pass certification exams for different types of HVAC careers.

The different types of HVAC certifications are:

(Video) Why YOU Shouldn't Start Your Own HVAC Company | Let Me Explain...

  • EPA Type I Certification – For Servicing Small Appliances
  • EPA Type II Certification – For Servicing High-Pressure Systems
  • EPA Type III Certification – For Servicing Low-Pressure Systems
  • Universal EPA Certificate
  • North American Technician Excellence (NATE): Offers professional level certifications for professionals. Areas of certification include:
    • Air Conditioning (AC)
    • Air Distribution (AD)
    • Heat Pumps (Air-to-Air) (HP)
    • Gas Heating (GS)
    • Oil Heating (OL)
    • Hydronics Gas (HG) (service only)
    • Hydronics Oil (HO) (service only)
    • Light Commercial Refrigeration (LC) (service only)
    • Commercial Refrigeration (RC) (service only)
    • HVAC Efficiency Analyst (Senior Level) (EA)

You do not have to have a bachelor’s degree to work in HVAC, but programs are available for those who are interested in earning higher credentials.

Step 4: Make Your HVAC Business Look More Professional

To establish trust with your customers, especially if you just started your own HVAC company, you must take steps to be as professional as possible. This involves setting up a website with information about your company and HVAC services, along with a business email with your URL (such as John@DenverHVACPros.com) and a professional voicemail setup since you won’t be able to answer the phone all the time.

Dress in a shirt with your company name and logo. Add signage to your company vehicle. This helps add to your professionalism while also easing neighbor’s concerns.

Grow Your Business Through Happy Customers

Step 5: How to Make More Money By Attracting More Customers

How to Start an HVAC Business in 2022 - Starting in Air Conditioning (2)


All small business owners want to make more money, but it’s often easier said than done. Use these five cost-effective methods to build your reputation, close more sales, and establish your online presence without going into massive debt.

(Video) How to Start an Air Conditioning Business

1. Increase in Sales

Even if resources are limited, spend time and money on your website and social media. Your website should allow you to chat with prospects. Turn to social media to generate leads and help you grow your client base. Post photos before and after you’ve finished a job, and share customer experiences. If you save the day by repairing an A/C or heating unit, people will sing your praises. Use that to your advantage.

Expand your revenue earning potential by going beyond HVAC installation and repair. Sell filters and other accessories to make it easier for your clients to maintain their own systems between visits.

2. Increase Word of Mouth

Anyone in the service industry knows just how important customer service is. Make it a priority to provide the best possible service to your customers so that when they talk about their experiences with friends and family, they have nothing but good things to say about your company. Remind your clients that your business needs reviews and referrals to survive. Pay attention to reputation management so you don’t fall to the competition. Always remain cooperative and friendly with neighbors.

Distribute flyers and business cards whenever you can. Connect with local building contractors and apartment companies so you can sign contracts with homeowners and renters. Listen to customer feedback and make adjustments where necessary to make things better for them.

3. Use Online Marketing

Once your website is up and running, claim your Google My Business listing, and add your business to Google Maps. This increases the chance that you’ll show up in local searches for “HVAC companies near me” and that’s one of the best ways to get new customers.

Create a Facebook Business Page and linked Instagram account. Fill the accounts with photos of the projects you’ve worked on, tips for proper heating and cooling system maintenance, refrigerator/freezer maintenance (if you’re an HVAC professional), and general information about the benefits of a well-maintained heating and cooling system in your home and vehicle.

(Video) HOW TO START YOUR HVAC BUSINESS TIPS #hvacbusiness #hvac

4. Decrease Expenses

Keep a close eye on costs. Just because you’ve got the best deal you can find right now, does not mean it will stay that way. As you research costs, look for ways to save by buying your supplies in bulk, getting discounts with part manufacturers, or rewards programs to save on fuel. As you grow, it’s possible you’ll be able to leverage more discounts with larger orders.

5. Choose a Specialty

Take a look at your skill level and determine what it is you do best. Offer that service first. For example, if you’re best at repairing automobile air conditioning, but you’re not that great at furnaces, realizing your limitations and seeking training in those weak errors to offer those services later will serve you well.

Step 6: Plan to Scale Up

A successful HVAC business always has a plan for future growth. As your business grows, know how and when you’ll expand. Ideally, you need to be able to scale as demand increases without sacrificing quality or customer service. When you’re ready to hire additional HVAC contractors or support staff, develop a training system that advises people on how to interact with customers and neighbors. To get your technicians working as your sales team, too, add an incentive for new contracts. Add new vehicles and equipment as possible to grow your service area.

Step 7: Launch Your HVAC Business

Starting your own HVAC business is exciting, but It’s completely fine to start small and work HVAC part-time and scale to full-time as you’re confident in your ability to serve your customers well, while also earning enough income to pay your bills.

Increase Sales and Get More Business

FAQs

How do I get more customers for HVAC? ›

5 Ways to Bring In New Customers to Your HVAC Business
  1. Set Up an HVAC Customer Referral Program. ...
  2. Create an HVAC Company Lead Generation Machine. ...
  3. Use Video Marketing To Get HVAC Leads. ...
  4. Market Your HVAC Brand on Social Media. ...
  5. Use an Automation Platform to Streamline Digital Marketing.

How do I start my own refrigeration and air conditioner business? ›

How to Start a Refrigeration & Air Conditioning Engineer Business
  1. Get certified. ...
  2. Identify the legal structure you want for your business. ...
  3. Get a business license and permit. ...
  4. Obtain your tax identification number. ...
  5. Contact suppliers for referrals. ...
  6. Join the associations. ...
  7. Market your business.

What is the future of HVAC? ›

HVAC systems of the future will use technologies such as more geothermal heat pumps, solar power, smart thermostats, and even ice-powered air-conditioning to reduce their energy use and overall environmental impact.

What state do HVAC technicians make the most money? ›

Alaska is the best state for jobs for hvac technicians, and New Mexico is the worst. The most common pay in Alaska is $76,272, while the median pay in New Mexico is $41,459. The bottom 10% level pay for hvac technicians is $36,000.
...
1. Alaska.
Total Hvac Technician Jobs:117
Highest 10 Percent Earn:$87,000
3 more rows
6 Apr 2021

How do I promote my HVAC business? ›

10 Surefire HVAC Marketing Ideas [Updated for 2022]
  1. Ask for Reviews to Gain People's Trust.
  2. Get Ahead with Local Service Ads.
  3. Sell to Your Customers.
  4. Get Your Business on the Map with a Google Business Profile.
  5. Provide Answers to the Questions Prospects are Asking.
  6. Make Your Website Mobile-Friendly.
10 Sept 2022

How do I advertise my HVAC? ›

6 Effective HVAC marketing ideas sure to get results
  1. Define your brand with a modern, mobile-friendly website.
  2. Increase traffic with pay-per-click advertising.
  3. Attract local customers with Google My Business and geofencing advertising.
  4. Engage your audience with video marketing.
23 Dec 2021

Is it hard to start a HVAC business? ›

Starting your own HVAC business is exciting, but It's completely fine to start small and work HVAC part-time and scale to full-time as you're confident in your ability to serve your customers well, while also earning enough income to pay your bills.

What makes a great HVAC company? ›

A reliable HVAC company is certified, licensed and insured

And, check for any special certifications they may need in your area. Having all these items tells you the company is serious about their work. It also says they're invested in the community and will be around for a while.

How profitable is an HVAC business? ›

The HVAC business is extremely profitable. In fact, it has one of the highest profit margins of any industry. The average company in the HVAC industry makes a profit of 21 percent, which is more than twice the average for all businesses. This high profitability is due to a few factors.

Which is No 1 AC in world? ›

1. Samsung. These qualities have helped them to produce the best Ac in the world.

What is trending in HVAC? ›

US HVAC Market Trends

Air conditioner shipments reached a peak in December 2021, with 6.28 million units sold. Combined shipments of central air conditioners and air-source heat pumps increased to 10 million units in 2021. This increased by 9.3% from 9.3 million units in 2020.

What is the latest technology in HVAC? ›

Which is the latest HVAC technology? Thermally driven air conditioners are the new and emerging HVAC technology focused on the sustainable innovation drive. The air conditioners are energy efficient and a great alternative to the conventional cooling system.

What trade makes most money? ›

The Highest-Paid Trade Jobs
  • Construction Managers. ...
  • Elevator and Escalator Installers and Repairers. ...
  • Radiation Therapists. ...
  • Nuclear Medicine Technologists. ...
  • Dental Hygienists. ...
  • Electrical and Electronics Engineering Technicians. ...
  • Aircraft and Avionics Equipment Mechanics and Technicians. ...
  • Boilermakers.

What is the highest paying HVAC position? ›

High Paying HVAC Jobs
  • Thermal Engineer. Salary range: $94,000-$130,500 per year. ...
  • Hvac Project Manager. Salary range: $68,000-$100,000 per year. ...
  • Cfd Engineer. Salary range: $80,000-$97,000 per year. ...
  • Air Conditioning Engineer. ...
  • HVAC Design Engineer. ...
  • HVAC Engineer. ...
  • Hvac Estimator. ...
  • Hvac Sales Representative.

What is the best HVAC certification? ›

NATE certification is among the most common, but also the most notable, of the available HVAC technician certifications. NATE stands for North American Technician Excellence. It is a testing and certification organization specifically geared to the needs of HVAC technicians.

What is the target market for HVAC? ›

The target market for HVAC is homeowners and commercial buildings.

Where can I advertise my HVAC service? ›

If you're looking for HVAC marketing ideas, look no further than Google Local Services ads. They are available nationwide for heating and air conditioning businesses and are the first thing that pops up when someone searches for HVAC services.

Why marketing is important to a HVAC business? ›

Market development gives HVAC companies an in-depth knowledge of current consumer needs and demands, and helps them study whether their existing products can be offered to new markets. With these come opportunities to drive more sales.

What do HVAC customers want? ›

HVAC customers expect an experienced HVAC technician to show up on time, act professionally during the visit, answer their questions, get the job done right the first time, and do it efficiently. If they are getting an estimate, they expect it to be done promptly.

What is the target market for HVAC? ›

The target market for HVAC is homeowners and commercial buildings.

Why marketing is important to a HVAC business? ›

Market development gives HVAC companies an in-depth knowledge of current consumer needs and demands, and helps them study whether their existing products can be offered to new markets. With these come opportunities to drive more sales.

How much does it cost to start an HVAC business? ›

Step 2: Determine Startup Costs For An HVAC Business

This is an industry where the average startup cost is a bit higher, spending anywhere from $2,000 to $10,000, assuming you're buying a used vehicle and working to keep your equipment costs low. If you purchase everything up front, the cost could easily hit $100,000.

Videos

1. How I Started My HVAC Company At The Age Of 28.
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2. Starting My Own Business - Revisited 5 Years Later - Part 1: Contracting
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3. The Do's and Don'ts of Starting Your HVAC Business
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4. HVAC Technician Salary 💲 (2022 Update)
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5. How to get your HVAC Contractor License | What you need to be Certified
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6. HVAC Marketing Strategy - Starting a Small Business 2022
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