With the constant demand for heating, ventilation, air conditioning services, and the need for energy-efficient solutions, the HVAC industry offers a worthwhile opportunity for those with the right skills, training, and knowledge. The HVAC industry has had steady growth in Canada, and the revenue is expected to reach $3.924 billion in 2024. However, starting this journey requires careful planning, strategic decision-making, and a solid understanding of both the technical and business aspects of the HVAC trade.
In this guide, we will explore the essential steps that are necessary to launch and grow a successful HVAC business, from mastering your skills to building a strong customer base.
1. Create An HVAC Business Plan
Having a business plan for your HVAC business is crucial for several reasons. It serves as a roadmap, outlines your business goals, strategies, and the steps you need to take to achieve them. This clarity of vision helps you stay focused and on track, especially during the early stages of your business when decisions can have a significant impact on its success.
What to Include in Your Business Plan
- Cover Page: This will include your contact details and business name.
- Executive Summary: This will outline the basics of your HVAC business plan.
- Business Overview: This section will explain why your HVAC business would be beneficial as well as an overview of the needs in the HVAC industry.
- HVAC Services: Include all of the services you plan to offer in your business.
- Market Analysis Summary: An outline of other HVAC competitors in your area and how you can compare.
- Business Structure: Details on how you plan to structure your business.
- Implementation Summary: Details on the steps you plan to take to turn your HVAC business idea into fruition.
- Marketing Plan: Your plan for marketing your business and attracting customers.
- Financial Plan: An outline of the finances and loans you may need to show investors and the bank.
It is important to solidify your HVAC business plan and take the time to outline your goals carefully. This initial step will make it easier to grow your business, be successful, and eliminate stress along the way. Be sure to continue to keep your business plan updated as you grow and learn more about the HVAC industry. It is good practice to show your business plan to your investors, or trusted family and friends for opinions and fresh ideas. Having a business plan is important because it provides direction on financing, helps you make informed decisions, and helps you to track your progress and adapt to changes. It lays the foundation for a successful business venture in the competitive HVAC industry.
2. Decide On the HVAC Services You Want to Offer
Figuring out the HVAC services you want to offer is crucial in your planning process. This will help you when figuring out what additional training and skills you may need, your niche, your target market, and making sure you purchase the right tools and equipment. Some of the most common HVAC repair, installation, and maintenance services you can offer are:
- Heat pump installation
- Air conditioning repair
- Air conditioning maintenance
- Air conditioning installation
- Cleaning and replacing air filters
- Installing furnaces, boilers, and radiant heating systems
- Resolving issues with airflow and ventilation
- Furnace repairs
- Furnace maintenance
- Furnace installation
- Emergency HVAC repair services for breakdowns or system failures
- Fixing refrigerant leaks and recharging refrigerant levels
- Air duct cleaning
- Ensuring compliance with building codes and regulations during installation
- Tankless water heater installation
Commercial HVAC Services:
Commercial HVAC services refers to anything involved with heating and cooling commercial properties such as restaurants, businesses, schools, hospitals, or rental properties. These services may include designing and installing HVAC systems according to the size and layout of the commercial buildings, and offering maintenance contracts to stay compliant with industry standards. Commercial HVAC services are essential for ensuring the comfort, safety, and productivity of visitors in commercial spaces.
Residential HVAC Services:
Residential HVAC services are for the heating, ventilation, and air conditioning needs of homeowners in houses, condominiums, apartments, and other residential properties. These services may include assessing a homes’ air quality, installing programmable or smart thermostats, enhancing energy efficiency, and offering solutions to improve air quality, safety, and comfort for homeowners and their families throughout the year.
3. Get The Right Licenses and Certifications for Your HVAC Business
Before you can begin working as an HVAC technician, you must get the right licenses and certifications to work in the trade. This is crucial to ensure legal compliance, maintain safety standards, and deliver high-quality work which will enhance the professional credibility of your business. Investing in training is important for personal and public safety, as well as the overall reputation of the HVAC industry.
Licenses and certifications may include training, exams, and being able to operate complex machinery and equipment. Working as an HVAC technician includes dealing with dangerous electrical components and hazardous materials such as refrigerants. Licensed HVAC technicians are trained to follow safety protocols, handle equipment properly, and avoid risks that can cause accidents and injuries.
Complete an HVAC Certification Program in Canada
All certifications and licenses needed to work in the HVAC industry in Canada will vary depending on what province you are in, however, all Canadian technicians who work in the HVAC industry must be licensed by a government-approved program. Typically, you will need to have completed secondary school and training courses, as well as a 3-5 year apprenticeship program or combination of over 5 years of work experience in the HVAC industry. This is what will make you eligible for trade certification. The Red Seal Endorsement is also available for aspiring HVAC technicians after completing the relevant exam. Trade certification is compulsory in Nova Scotia, New Brunswick, Quebec, Ontario, Manitoba, Saskatchewan, and Alberta.
HVAC technology and regulations evolve over time, and licensed technicians are required to stay updated on industry trends, new technologies, and changes in codes and standards. Be sure to look up what licenses and training you need in your province to keep your HVAC business reputable and yourself safe. Continuing education and certification renewal requirements help HVAC Pros stay current and competent in the field. By obtaining the required business licenses and certifications, you can operate your HVAC business legally and build trust and credibility with customers while avoiding potential fines or penalties.
4. Decide On Your HVAC Business Name
Deciding on your HVAC business name is important because it establishes your brand identity, enhances professionalism, and assists in your marketing strategies. It is an essential aspect of building a successful and recognizable HVAC business in the competitive industry. Choosing a unique and easy business name will help you stand out and make it easier for you to attract customers.
A helpful strategy is to pick a name that includes keywords and is easy to remember to help you with SEO visibility. This will increase the likelihood that your business will show up in search engines when customers look for HVAC services in your area. It will also aid in driving organic traffic to your website and boost your online presence. Be sure to choose a timeless name that will remain relevant to your HVAC services even if there are changes in trends in the industry.
How to Register Your HVAC Business in Canada
Once you decide on your business name, you need to make sure it is not already taken by another HVAC company. Check with your local business registration office to figure out the procedures and requirements you will need to go through to get your name registered. Some requirements may include paying a fee or filling out a registration form.
You can check if your HVAC business name is taken by:
- Searching on search engines if another HVAC business appears
- Checking domain availability for your website as well as usernames on social media
- Conduct a NUANS database search by region
- Look at Canada business registries
Trademarking Your HVAC Business
Conducting thorough research to ensure that your chosen business name is not already in use by another HVAC company will help to avoid potential legal issues and trademark infringement. Registering your business name will provide legal protection and prevent other HVAC Pros from using a similar name. This will help safeguard your brand identity and overall reputation.
5. Get Insurance For Your HVAC Business
Setting up the right insurance for your HVAC business is essential for protecting yourself and your employees, your assets, mitigate risks, and provide yourself with peace of mind. HVAC services often involve using hazardous materials, lifting heavy equipment, and working in residential properties. Obtaining the right insurance is a critical investment for long-term success and sustainability of your business.
A few types of insurance you may want to consider for your HVAC business are:
- Commercial General Liability Insurance: This insurance will help cover any injuries you may get on the job or property damage claims, including injuries from heavy equipment you may use.
- Commercial Property Insurance: This will cover claims if you are installing systems such as a furnace or air conditioning unit on a commercial property such as a hospital, school, or business building.
- Vehicle Insurance: This is important if you are using a vehicle to get to your jobs. It will cover incidents, breakdowns, and any theft of your equipment that you have stored inside your vehicle.
- Health Insurance: Having health insurance is crucial for running an HVAC business to ensure the well-being of you and your team of employees. HVAC services include working with dangerous electrical components which can cause burns or electrocution, or you may come in contact with refrigerants on your bare skin which can cause skin irritation and respiratory problems.
- Errors and Omissions Insurance: As an HVAC Pro, this insurance is essential when working on a customer’s personal residential property. This type of insurance will help you if a customer is unsatisfied with your work.
- Employment Practices Liability Insurance: This insurance is essential if one of the HVAC technicians you hired decides to file a lawsuit against you for any reason, such as discrimination or negligence.
- Life, Disability, and Employment Insurance: This insurance is important if you are working with heavy equipment, especially on residential properties. It is essential for you and your employees when it comes to protection against injury or death.
Working in the HVAC industry involves risks, such as property damage, bodily injury, or accidents that could occur on job sites. Investing in the right insurance for your HVAC business will ensure that you are protected against accidents that could affect your business’ reputation and credibility.
6. Create A Business Bank Account
Having a dedicated business bank account for your HVAC business is crucial to keep your personal and business finances distinct. This separation will help you when it comes to bookkeeping, tax season, paying employees, and tracking business expenses. Having a separate business bank account adds credibility and professionalism to your HVAC business by showing that you are legitimate and established. This will help build trust between you and your customers. A business bank account is essential for maintaining financial clarity, legal compliance, staying organized, and adds financial protection. It is a fundamental step in establishing and managing a successful HVAC business.
7. Get Funding and Loans for Your HVAC Business
Starting an HVAC business can be costly, and if you don’t have savings or money set aside for it, you may need to look at getting a loan or securing funding first. HVAC businesses usually cost thousands of dollars when you add up equipment costs, tools, insurance, and transportation. You will need to be prepared to invest in a variety of good quality equipment. It is also important to note that HVAC equipment requires ongoing maintenance and repairs which adds to your expenses.
Some HVAC expenses you may have to purchase are:
- Your transportation, such as a large van or truck
- Insurance
- Licensing and permits
- HVAC tools and equipment
- Air conditioning and refrigeration tools
- Safety equipment (helmet, gloves, boots)
- Advertising (television, print outs, business cards, paid ads)
You will also need to factor in equipment and tools for your employees if you need double of certain items and how much that will cost. Once you have figured out the cost of what you need to start, you should consider applying for a business loan, look at Canada’s Small Business Financing Program, or meet with a financial advisor. A financial advisor can help you by looking at your assets and telling you the best way to navigate your business that will make the most sense. They will help you decide if you need to get a loan, how much, and provide a timeline for when you can launch your business successfully. It is crucial to take these necessary steps when it comes to financing your HVAC business in order to mitigate any financial risk and be successful.
8. Purchase HVAC Tools and Equipment
After figuring out what HVAC services you plan to offer, you can figure out what tools and equipment you will need. Your HVAC tools list may include:
- Screwdriver set
- Hammer
- Tape measure
- Wrench
- Flashlight/ Headlamp
- Pumps
- Thermometers
- Drill
- Pliers
- Refrigerant scale
- Flushing solvent
- Wrench
- Thermal imaging tools
- Gauges
- Extension cord
- Safety tools and PPE: Gloves, goggles, protective shoes
- Coil fin straightener
- Thermometers
- Manometer
- Nitrogen regulator
While these are essential supplies needed for all or most of your HVAC jobs, you will need to evaluate what is needed once you begin working. Some tools may only be used on commercial properties while others may be different for when you work in residential homes.
9. Create A Price Guide
Creating a price guide is an important step when building your HVAC business. You will need to consider things such as:
- Looking at other HVAC Pros in the area and finding out what they charge to see how you can compare
- Figure out your desired profit
- Decide if you can provide additional services on top of your regular services to help increase your prices
Some pricing techniques you can use to charge for your HVAC services are:
- Hourly rate: This will be a rate for every hour you work and may be beneficial to you when working on large projects such as on a commercial property.
- Flat rate: Depending on the project, you can determine a fixed rate that you want to charge. This is a good method if you already know how long a job will take to complete and what it will cost you. Then you can figure out your desired profit.
- Labour and materials rate: To keep your expenses organized and fair, you can charge based on the amount of labour you provide for the job and the tools you use.
Decide on a Payment Method
Set up your desired payment method of how you want your customers to pay you for your HVAC services. Create an invoice for your clients after a job is done that outlines the work you did, the price, and any other important information.
You should also decide which payment methods you accept such as cash, cheques, credit, debit, or e-transfer.
10. Build An Online Presence for Your HVAC Business
Having a positive online presence is essential for attracting new customers and building your reputation in the HVAC industry. Some ways that you can begin to advertise your business are:
Social Media
Utilizing social media is one of the best methods to advertise your business as an HVAC Pro. Creating a Facebook Business page, TikTok account, or LinkedIn profile, are all great platforms to showcase your expertise. You can record yourself doing HVAC tasks such as replacing an air filter and posting it on TikTok. This is educational for viewers, and people will enjoy learning new things from you that they can try in their own homes as well. Not only is this helpful content, but it also boosts your credibility and reputation as an HVAC Pro.
You can also post photos of before and after images of cleaning an air duct, installing an air conditioning unit, or even posting a “get ready with me” video showing all the PPE you wear on the job such as a helmet, goggles, gloves and protective shoes. These are all great ways to show off your expertise as an HVAC Pro, gain an audience, and attract new customers everyday.
Start a Blog
When it comes to HVAC services, many people who are not in the HVAC industry or lack the knowledge and skill will appreciate reading educational blogs. On your website or social media, you can share blog posts that are beneficial to homeowners or commercial property owners. An example of blog posts could be sharing HVAC tips such as “How to check if you need your air ducts clean,” or “When to get a new heat pump.”
Create a Google My Business Listing
Claiming a Google My Business listing is important for advertising your HVAC business. You can include your website URL, contact details, a description of the HVAC services you offer, photos, links to social media, and collect reviews when you begin accepting jobs. You should keep your listing updated with your hours of operation, recent images, and continue to respond to reviews to engage with your customers.
Create a HomeStars Listing
To market your HVAC business, you should also create a free HomeStars listing. HomeStars is the largest marketplace in Canada for home service professionals to get connected with homeowners. This is a great platform to use when attracting customers at the beginning and will help boost your SEO visibility. On your HomeStars listing, you can include your address, contact information, links to social media, a list of your HVAC services, images, your website URL, and request reviews after you complete jobs.
11. Hiring HVAC Technicians
Hiring a team to work with can be exciting and make your day to day work easier. It can help expand your business capacity, improve your service quality, make your days more flexible, and gives you a chance to learn new skills and knowledge from your team members. Building a strong and skilled team is essential for long-term success and keeping your HVAC business competitive in the industry.
You can post job descriptions on free job posting sites such as:
- Indeed
- Glassdoor
- Job Bank
- Monster
A few things to do before hiring an HVAC technician are:
- Make sure they have the proper licenses, credentials, and past experience
- Conduct a criminal background check
- Check 3-5 references
- Secure the right insurance
- Discuss payment
Be prepared to train your new employees on how you want them to work to reach your standard and keep your business reputation high.
Starting An HVAC Business In Ontario
To start an HVAC business in Ontario, you will first need to register your business name with the government of Ontario or use Ontario Business Central. Ensure that you are compliant with regulatory requirements by obtaining the right licenses and permits to operate an HVAC business in Ontario. An important regulation to understand and comply with is the Ontario Building Code and Technical Standards and Safety Authority (TSSA).
After you register your business name, you will need to obtain a business number (BN) from the Canada Revenue Agency (CRA). There are also many health and safety regulations and guidelines to follow from the Ontario Ministry of Labour. Trade certification for HVAC technicians is compulsory in Ontario.
Starting An HVAC Business In British Columbia
Starting an HVAC business in British Columbia follows similar steps to starting one in Ontario when it comes to adhering to safety standards. You will first need to register your business with the government, and register your business name on the BC name registry. You are required to register with both the federal government and the provincial government. Like every new place, there are certain regulatory requirements to follow and licenses and certifications to get in order to offer your HVAC services. Familiarize yourself with the regulations and codes governing HVAC work in BC, such as the British Columbia Building Code and Technical Safety BC regulations. You will also need to obtain a business number (BN) from the Canada Revenue Agency (CRA) for tax purposes. Trade certification for HVAC technicians is voluntary in British Columbia.
Starting An HVAC Business In Alberta
To start an HVAC business in Alberta, you must register your business with The City of Calgary and register your business name. All HVAC Pros are required to get location approval for their business in order to operate legally and professionally. You will need to understand the codes and regulations for the HVAC industry such as the Alberta Building Code and the Alberta Safety Codes Act. Trade certification for HVAC technicians is compulsory in Alberta.
To become an HVAC technician in Alberta, you will have to complete all the steps in an apprenticeship program. These steps will include:
- Completion of an Alberta high school diploma
- 4 years including a minimum of 1560 hours on-the-job training and 8 weeks of classroom instruction each year
- Apply for Red Seal Certification
Starting Your Business Journey With HomeStars
Starting an HVAC business is exciting and will require extensive planning and research to build a business plan, hire a team, purchase equipment, and start attracting customers. HomeStars offers entrepreneurs a powerful platform for growth and success in the competitive HVAC industry. By leveraging HomeStars’ features, expansive network of over 8 million visitors per year, and reputation for quality and reliability, your business can establish a strong online presence and be trusted among homeowners.
To get started, you can get in touch with us to ensure your HVAC business is being found by homeowners who are looking for a HVAC Pro.
