Are you thinking about starting your own HVAC business but aren’t quite sure where to begin?
Running an HVAC business can be very lucrative. However, you need to make sure you take the necessary steps before you open your business. What do you need to do?
Check out this guide to learn everything you need to know about the HVAC business requirements.
1. Earn Your HVAC Certification
Before you can open an HVAC business, you first need to earn your certification as an HVAC technician. To become an HVAC technician, you first need to earn your high school diploma or GED.
Once you’ve earned your diploma, you’ll need to enroll in a certificate program. While federal law doesn’t require you to have a certificate to work as an HVAC technician, many states have this requirement. Plus, earning your certificate will help you gain more knowledge in the field, and it’ll help you look more professional to your future customers.
It takes about nine months to complete an HVAC certificate program. You can earn your certificate through an accredited trade school or community college.
There are several different types of HVAC certificates you can earn, but, there is only one certificate that is accepted in every state across the country- the Section 608 Technician Certification, commonly referred to as the EPA HVAC certification.
It’s mandatory that you hold this certificate so you can handle gasses regularly during servicing. You can also earn your EPA Type I certification, which will teach you how to service small appliances.
The EPA Type II certification teaches you how to service high-pressure systems, and the EPA Type III certificate teaches you how to service low-pressure systems.
After earning your certification, you’ll need to sit for an exam. Once you pass your exam, you can apply for licensing through your state.
2. Gain Experience as an HVAC Contractor
After earning your certification, you’ll want to gain some experience as an HVAC contractor before you open your own business. Most people do an apprenticeship after completing their HVAC training.
During your apprenticeship, you’ll gain hands-on experience in the HVAC field by working alongside other experienced technicians. While apprenticeships aren’t required by most states, it can be very helpful to undergo an apprenticeship before you start working on your own, as employers are more likely to hire individuals who have completed apprenticeships.
After completing an apprenticeship, you can apply for a job as an HVAC contractor. We recommend getting a few years of experience in the field before starting your own business.
3. Create a Business Plan
Once you’ve decided it’s the right time to open your HVAC business, you need to start by creating a business plan. A business plan is a detailed guide that outlines your financial plan, your market plan, and your general business goals.
Here are some tips to keep in mind when creating an HVAC business plan:
- Understand your competition- be prepared to name them and explain how your business sets itself apart from theirs
- Create specific, time-based goals for your business
- Describe your company in detail
- Begin with an executive summary that outlines what your company is and why it’ll be successful
- Explain how you’ll structure your HVAC business and who will run it
- Describe the services you plan to offer and products you plan to sell
- Describe your marketing and sales strategies
- If you plan to ask for funding, outline your funding requirements
- Write out your financial projections
You can research business plan examples online to get an idea of how to structure your business plan.
4. Obtain Your Business License and Insurance
HVAC companies across the nation need to be properly licensed and insured. However, the licenses and types of insurance you need will depend on where you live.
At a minimum, you’ll need general liability insurance, which is sometimes referred to as commercial general liability. This type of insurance covers claims caused by property damage or bodily injury. You may also need worker’s compensation insurance, commercial auto insurance, or a business owner’s policy.
A business owner’s policy is a type of foundational insurance that many companies need in addition to other types of insurance. This type of insurance typically includes property coverage, general liability coverage, and business interruption coverage.
You may also want to consider getting HVAC inland marine insurance as well as business property and equipment insurance.
5. Market Your HVAC Business
Once you have the correct licenses and insurance policies, it’s time to start marketing your HVAC business. You’re going to need to plan to spend some money on marketing to get the word out about your business, so start by figuring out how much money you can put toward marketing each month.
Then, set up a website and social media profiles for your business. A website will help local customers find you when they conduct a search through Google or some other search engine.
Make sure you use keywords on your website that will make it easy for locals to find you. For example, if your HVAC business is based in Sacramento, California, include phrases like “HVAC contractor in Sacramento” or “HVAC business in Sacramento” on your website
If you have some extra money to spare, we also suggest running ads on Googe, Facebook, and other social sites.
HVAC Business Requirements: Are You Ready to Start an HVAC Business?
Now that you’ve read these HVAC business requirements, it’s time for you to start your very own HVAC business. Homeowners will always need help with their HVAC systems, so you should have no trouble finding customers.
Be sure to check back in with our blog for more business management tips.