Running an HVAC Business: Best Practices
Despite the COVID-19 pandemic having a damaging effect on many field service businesses, the HVAC market growth shows no signs of slowing down. In 2020, the global HVAC market was valued at $127.4 billion and is expected to expand at an annual growth rate of 5.9% over the next seven years.
However, although market growth is good news for business owners, it does mean that competition is fiercer than ever. To stand out and attract customers, you’ll need to look at how you run your company and identify any areas for improvement.
In this article, we’ll explain how to run an HVAC business and share how a job management platform can set you apart from your competitors.
How to Run an HVAC Business Effectively
There are many components to running an HVAC business; however, we’ve outlined the top three things you need to take into account below:
Companies that plan ahead grow 30% faster than those that don’t, so it’s essential that you take some time to put together a solid HVAC business plan. To begin, you might want to consider the following questions:
- What is your unique selling proposition?
- What is your vision for the next five years?
- What is your target for sales, gross profit and net profit? If possible, you should break your profits down per department.
- How many service calls should you aim to attend?
- How many installations should you aim to complete?
- How many technicians, installers, salespeople and back-office staff will you require?
- How much business should you aim to get from repeat customers?
Then, you’ll need to project your cash requirements for each month. Calculate how much money will be coming in and compare it to your outgoings — is your remainder positive? If not, you’ll need to figure out how you will earn the additional revenue required.
Remember, having a steady cash flow is vital for any business, so you must ensure that your customers always pay on time. Otherwise, you will find it challenging to meet operational expenses and take on new projects that contribute to company growth. By investing in a job management platform, you can send electronic invoices the moment your worker has completed the work. Plus, with a range of simple, digital payment options available, your customers can pay on the same day, giving you peace of mind that your finances are in check.
2. Collect Data
According to research from Aberdeen Group, the best performing field service businesses are driven by data and report a 7% decrease in operating costs. So, if you’re not already analysing your company’s stats, you should be.
The type of data you’ll want to collect will depend on your business goals. For example, ordering parts is crucial for running an HVAC business, but you could be spending far more than you should if you don’t have access to relevant, accurate data. Perhaps your workers forget to sign parts in and out of storage, or maybe their writing is illegible, and you can’t see what they’ve used. Either way, you’ll soon notice that the numbers aren’t adding up.
In comparison, job management platforms give you complete visibility over your operations and provide you with access to real-time data so you can make better-informed business decisions. So, not only will you be able to see how much stock you have available so you never accidentally over-order, but you can also take a closer look at whether the rest of your company is running as efficiently as possible.
3. Recruit the Best Talent
In stark contrast to the booming HVAC market, there is a serious shortage of talent. As more experienced workers reach retirement age and leave the workforce, they’re leaving behind a gap that 70% of field service organisations expect will severely impact operations within the next five to ten years.
Consequently, it’ll be the companies that can hire the best talent that will survive and grow in the years to come. But, to attract Millennial (1981-1996) and Generation Z (1997-2012) workers, businesses will need to modernise their ways of working. These tech-savvy generations will expect to work for companies that provide digital tools that enable them to work efficiently and deliver excellent services.
Therefore, now is the perfect time to undergo a digital transformation and become an early adopter of field service management software. With a platform like BigChange, you’ll be able to provide seamless communication between your field-based workforce and your back-office staff by equipping technicians with a mobile app.
Using the app, workers can complete risk assessments and workflow documents, check the customers’ files for important notes, view their schedule in real-time, send digital invoices and accept payments — all from their mobile devices. By streamlining your processes and making it simple to complete each job, you’ll find that people will want to work for your company over those that continue to operate ‘the old way’.
4th February 2022 - Following Best Practices with Fleet Management Software
Job management technology is a must-have for HVAC businesses to thrive in a highly competitive, talent-short market. Platforms like BigChange give you the power to transform your company and manage business-as-usual tasks all in one place, saving you time and money to put back into activities that contribute directly to business growth.
Running an HVAC is simple on BigChange
Manage your entire operation on a single platform.
BigChange transforms how your HVAC business operates, giving you the power to manage scheduled maintenance and respond to urgent reactive jobs more effectively.
Give your team everything they need, from site directions and workflows to digital safety certification, and share live data with your back office as required.
Want to find out more?
Discover how BigChange can make your business grow stronger here and arrange a free demo today.
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