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Whether you are a small HVAC business or a well-established
contractor, you are always looking for ways to grow your
business. This is because of the stiff competition among
HVAC businesses. So, how do you beat competition to grow
your business and compete against the large established
enterprises? How do you increase your client base and upset
the status quo? Here are tips to help you grow HVAC
business:
Revenue source breakdown
To grow your business, it is important to know where your
business stacks up against industry standards and
competitors in terms of market segmentation as well as
service and product breakdown. Generally, a regular HVAC
company will make money from repairs, installations,
maintenance and replacements. These jobs many be drawn from
different industries that include commercial, residential,
education and healthcare among others. Therefore, you will
do well to come up with a matrix that clearly indicates how
much your service and products are raking in as well as the
source of these jobs. This way you can be able to clearly
identify areas that need improvement as well as those that
are above average. Most importantly, you can use your
findings to set standards for your business.
Specialized in-house technicians
You will do well to evaluate the in-house specialties of
your HVAC business. That is, how much revenue do you get per
division. Taking this into account is in line with knowing
youre the source of your revenue as it can be used to help
you to improve where your performance may be wanting. For
instance, if you have multiple divisions but do not have
technicians that are specially trained to handle them, then
you may want to consider getting specialized technicians as
this will give you more control over scheduling as well as
quality of HVAC services rendered and consequently ease
access to jobs.
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Annual
renewable service agreements
Renewable service agreements are an excellent way of locking
in repeat customers, thus ensuring consistent revenues. If
you have not prioritized increasing recurring service
agreements, this is the time to consider. That is, get
customers to enter a service agreement with you for every
HVAC unit you install, sell or replace. This will not only
increase your customer base but also your revenue stream.
Even then, be sure to offer incentives to customers who sign
contracts.
Growth
plans
It is important to have a plan to grow your business long
before you are ready to sell it. This may mean constantly
looking for a need in the market against your capabilities
of filling it. Remember, higher profits translate to higher
value. That is, buyers will want to engage your company only
if you can show a steady increase in your profits as well as
have a business model that shows future growth.
Multiple Licensees
Specialized businesses like a HVAC company require licenses.
Thus, you will do well to ensure that you are not the only
HVAC contactor that is licensed otherwise this might become
a problem when you want to get a buyer. The highest level of
HVAC licenses usually take years to obtain, thus it can be a
turn off to prospective buyers if they do not hold licenses.
As such, you can increase the value of your business as well
as the ease of finding buyers by ensuring your employees are
licensed HVAC contractors. You can also identify key members
within your organization that have demonstrated loyalty and
are worth licensing.
Training
Well-trained employees are the hallmark of a good business.
When you have employees who are well trained, buyers will
trust in your work and quality standards. In addition, they
decrease liability while boosting the reputation of your
organization. Consequently, this helps HVAC service
providers increase the value of your business while spurring
growth.
First-rate accounting software
Putting in place a good accounting software will also help
grow your business as it will help you manage each deal as
well as organize your accounts. Most importantly, you will
be able to keep track of customer files, service jobs,
general ledger, inventory control, report building and lead
tracking among others. This will help in general
organization of the business.
There are many ways to grow your HVAC business. You only
need a strategy that will ensure you cover as much ground as
possible to remain competitive.
Dan McKee is Digital Marketing Manager at
Service Champions. He blogs about home improvement and
maintenance in his spare time.
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