Last Updated on Jun 28, 2022 by James W

Starting an HVAC business is an excellent idea if you are a technician with a few years of experience or an apprenticeship under your belt. However, going out on your own can be an intimidating process. Still, if you are considering it, you have probably already decided that the benefits of owning your own business are worth it.

The good news is that many people have done this, and you don’t have to invent the wheel or pioneer this landscape. There are a lot of resources available, and you will find it easy to get information at every step. To get you started, here are some key tips:


Before you do anything, make sure you are protecting your business. You will be putting time, effort, and money into your HVAC startup, so you want to make sure you are protecting your investments of time and money by mitigating risk.

What will HVAC insurance cost? You might be surprised at how affordable it is. It can cost under $40 per month, depending on your business and specialty. Make sure you get a policy that is tailored to your specific needs.

HVAC insurance policies can cover all aspects of your business. Bundling your policies can save you money and cover all aspects of your business. You need to manage your risk at all times, and you can even protect yourself with commercial auto and property policies that protect you whether you are driving or at the shop.

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You may have already spent a considerable amount of money on tools and equipment to get started on your HVAC business. Don’t forget to add a policy to cover these from loss, theft, and damage.

License and Registration

It’s critical that you start off on the right foot by staying within the law. Depending on where you are located and your HVAC specialty, there will be different requirements for licensing and registering your business.

You will have to choose a business name when you register. Choose something that describes your services, your locale, or your values. You are going to use this for marketing and invoicing, so make sure it’s something you like.

Write a business plan

Writing a business plan is a must if you seek financing, but it’s just a good idea to avoid some pitfalls later on. First, decide what business structure you want for your HVAC business, know who your competitors are, outline your strengths and weaknesses and look for opportunities in the marketplace.

As part of writing your business plan, it’s a good idea to create relationships and find people to mentor you. For example, there are expert volunteers who can help you through programs like SCORE, which is dedicated to helping small business owners launch their businesses successfully. In addition, they can help you in areas outside of your expertise, such as marketing, insurance, and accounting, without costing you a lot of money.

Finances and startup costs

How much does it cost to start an HVAC business? You probably already have a lot of the tools of the trade, and this is a good portion of the startup expenses. But you should still expect to spend about $3,000 to $12,000 initially. You will also need to make sure you have cash flow for the first few months, not just for the business but also for your personal living expenses.

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Also, remember that seasonality plays a big part in your business. There will be times of the year when you need more money for your business, and there will be times of the year when you won’t have as much revenue. Insufficient cash flow is one of the main reasons that businesses fail. In fact, 82% of companies don’t make it because of poor cash flow management.

It’s essential to know how you will price your work, too, so make sure you develop a pricing strategy. You can price your work either by the hour or by the job. If you are pricing your work by the job, make sure you define whether you will use a fixed price or cost-reimbursable method. Knowing the advantages and disadvantages of these methods can make deciding how to price your work easier.


There are a lot of ways to market a business these days. If it seems overwhelming, you might want to get some help from one of your mentors, but here are a few ideas to get you started that won’t cost very much.


Develop a simple website, even if it is only one page and a few pictures. It doesn’t have to be complex, but if someone hears about you, they might try to look up your business online. You’ll want to have a presence there, so you don’t miss out on customers.


Add your business to Google Maps. It’s not hard to do, and Google’s online support will walk you through it.


A Facebook page can be a great way to get your customers to see what you are doing. Ask your friends on Facebook to like your page once you set it up, and then use Facebook Ads to market to other people in your area. It’s less expensive than you think.

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These are just a few ideas for marketing. Get creative in order to get the word out about your business.

Stay Focused

The first few years of a startup are the hardest. Stay focused and positive. Make sure you are managing your risk and following laws. If you can make it through your cash flow challenges and get past the hurdles and learning curve of the first couple of years, you will have a business that will last you a lifetime.


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