How to Write an HVAC Company Business Plan

How to Write an HVAC Company Business Plan and Template

The HVAC industry has been growing at an above-average pace over the last several years, leading to a growing demand for HVAC business plans, templates, and proforma financial projections. 

There are multiple factors driving the surge in HVAC business plan inquiries.  For instance, a key sector in the HVAC world focuses on equipping new residential homes and commercial structures with heating and cooling systems.  Given the current housing deficit in the US, there has been a steady increase in new construction projects over recent years.  As these new building initiatives unfold, there is a direct and parallel rise in the demand for HVAC services and related business plans.  The rationale is that HVAC business proprietors often utilize their business plans to secure funding or gain approval from construction firms.  Regardless of the specific motivation for an HVAC business plan, it is crucial to have guidance and insights at one's disposal.  With this in mind, our HVAC business plan specialist has assembled several considerations and suggestions to aid business owners in crafting their HVAC business plan and template, or refining their financial projections (10/23).


Executive Summary for an HVAC Company Business Plan.

The executive summary portion of an HVAC company's business plan should concisely summarize the entire business proposal.  For HVAC firms, it is crucial, as noted by our business plan specialist, for business leaders to emphasize their unique niche within the HVAC sector.  For instance, some HVAC firms focus predominantly on new residential installations.  Others concentrate on commercial HVAC services and maintenance.  Additionally, many HVAC entities handle household installation and fixes.  Whatever niche your company pursues, ensure its clear depiction in the executive summary section.

Company Information and Location for an HVAC Company Business Plan.

For some HVAC business plans, detailing the company's location is essential, while it may not hold as much weight for others.  If, for example, an HVAC firm offers home installations and repairs, having a strategic central location is vital to mention in the business plan.  Conversely, those in the commercial HVAC realm can be more flexible about their establishment's location, given the natural travel involved in commercial HVAC tasks.  Consequently, our business plan expert advises comprehensive details regarding location if it lends a competitive edge.  If it does not, a brief mention of the location typically suffices.

Within the company information section, it's also important to highlight the chosen legal structure of your enterprise.  Most HVAC businesses, based on our specialist's observations, operate either as limited liability companies (LLCs) or corporations.  Operating as an LLC can shield owners' personal assets if challenges arise within the HVAC enterprise.  Yet, in certain situations, there might be double taxation on earnings, which is less than ideal.  Given the advantages and disadvantages of different legal setups, consulting with a tax professional or attorney is always recommended.

Need Help Writing an HVAC Business Plan or Template?

Call or Text Paul, Doctoral Candidate, MBA.



Hours of Operation: Monday through Friday, 8 am to 9 pm EST.

Our business plan writer is located in Orlando, FL.


Product Description and Competitive Advantages

In the product and service description segment of an HVAC business plan, it is essential to delineate the services your firm offers.  If your company focuses on residential homes, the range of HVAC services might encompass repairs, installations, and enlarging existing central heating and cooling systems.  In specific scenarios, HVAC companies set their sights on home construction firms.  Consequently, business plans of this nature should detail services like new build installations and post-installation warranty services.  Most importantly, based on the chosen specialization, outline your competitive advantages from the viewpoint of the end-user, be it a construction firm or a homeowner.

Target Market for an HVAC Business Plan Template

The designated target market within an HVAC business plan hinges on the specific niche the HVAC company occupies.  For instance, if an HVAC company has expertise in commercial cooling and heating services, then its primary audience comprises building proprietors and local businesses.  Conversely, residential-focused HVAC plans might stress a geographic focus rather than a demographic one.  An illustration of this could be an HVAC firm catering to households within a 37-mile boundary from the company's base.  Regardless of the identified market, it's crucial to precisely define the audience and elucidate the rationale behind its selection.

Industry Research for an HVAC Business Plan

Commencing the industry research section for an HVAC firm typically involves a broad overview of the national industry landscape.  It is advisable to seek out and present pertinent statistics tied to the HVAC domain.  For example, as of 2019, the HVAC sector's market valuation stands at roughly $240 billion.  Moreover, projections from experts in the field estimate sales of over 150 million HVAC units in the upcoming three years.  Another vital data point might be the anticipated 13% job growth within the HVAC sector over the coming years.  Such statistics are a mere snapshot of the potential data that can be incorporated into an HVAC business plan to underscore the rationale for launching or expanding an enterprise.

Owner and Management Section

The owner and management section for an HVAC business plan should commence by detailing the professional background of the HVAC business owner.  This encompasses prior employment, affiliations with professional bodies, and other relevant job credentials.  After laying out the employment background, the HVAC owner should then delve into their educational milestones, highlighting institutions where they secured their HVAC certifications.  To conclude this section, it is essential to elucidate the driving forces behind the inception of the HVAC enterprise.  Such motivating factors could be a solid existing customer base or emerging market opportunities.

Funding Request for an HVAC Business Plan or Template

For the funding request segment of an HVAC business plan, begin by clearly indicating the exact financial amount requisite for launching the business.  Upon determining this figure, the business owner should delineate the portion of this sum that will be from equity contributions and the portion that will be sourced from loans or contributions from partners.  After setting out the debt and equity components, the owner should categorize the allocations for various expenses.  Common allocations in HVAC business plans encompass equipment purchases, vehicles, marketing efforts, office and storage rentals, and operating capital.  Upon listing these, sum up the amounts allocated to each category, presenting the total at the section's end.  It is essential that the initial funding amount stated aligns with the total sum of the categorized allocations.  This straightforward layout mirrors a harmony between the funds sought and the planned expenditures.

Financials and Financial Projections for an HVAC Company.

A comprehensive HVAC company business plan or template should consistently feature detailed financial metrics that outline revenue sources, associated costs, and anticipated profit margins.  In drafting financial forecasts for an HVAC enterprise, initiate daily or weekly sales projections.  Subsequently, segment these sales into installation and repair categories.  With the daily revenue figures in hand, multiply this by the operational days in a month to yield the monthly revenue forecast for the HVAC company.  Subsequent to this, labor expenses, operational overheads, and fluctuating costs should be subtracted.  This culminates in a fundamental financial projection for an HVAC business that clearly represents projected revenues, costs, and resultant profits.  If expansion is envisaged, incorporate growth rates to both revenue and cost projections to create a comprehensive projection spanning one to five years.

Hopefully, these insightful tips and tricks for writing a business plan were helpful.  As always, if you need help with a business plan or financial projections, email or call us. 

Author: Paul Borosky, Doctoral Candidate, MBA., Author

Owner of: Quality Business Plan and Quality Business Consultant.

Date: 10/18/2023