How to Start an HVAC Business

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Today, the HVAC service industry holds a market value of approximately  $41.63 billion, and by 2028, it is expected to reach almost $58.56 billion. The figures speak for themselves, and anyone looking to start a business that generates high revenues can invest in HVAC. But to attain high profits, you need to ensure everything goes smoothly. 

Despite requiring higher initial capital investment, an HVAC business can be lucrative if you know how to steer your way to the top. Fortunately for you, in this detailed guide, you’ll learn everything about starting an HVAC business. 

How to Start an HVAC Business

Starting any business can be overwhelming in the initial stages, but if you take things one step at a time, you can easily manage things without your mind whirling with thousands of thoughts. The first step you should take is to conduct market research to understand better which services the market already has in abundance and which are lacking. Based on your findings, you can develop a business plan. 

Initial Market Research

Market research helps you get a rough idea of which companies you will be competing against. Moreover, it also gives you a clearer picture of the kind of HVAC services in demand. At this stage, you can also discover which areas generate higher profits. 

Developing a Business Plan

Once you’re done with the market research, you will move on to develop your business plan. A business plan will act as your roadmap. It will contain all details regarding which services you will provide and which areas you are willing to travel to provide services.

For instance, some HVAC businesses only provide repair services, while others offer both installation and repair. You can pick the one that seems most feasible to you. Remember, as your business grows, you can also increase the services offered. 

The business plan will also set financial goals you are hoping to achieve. It will help you reach milestones more quickly. 

Developing Business Identity

Once you have a solid business plan, developing a business identity is next. First things first, you will need a business name. This can be tricky since the market is already filled with so many HVAC businesses. You will have to find a unique name that stands out yet lets your target market know the kind of services you offer. 


Once you have a name for your business, the second most important thing to do is get a logo. Unless you have experience in graphic designing, get your logo designed by a professional. The collective display of imagery and initials will represent your business. 


Once you’re done with the logo, the next step is to develop a website. An SEO-optimized, user-friendly website with a professional look is a must-have. 

With a well-functioning webpage, customers can easily make bookings online instead of calling, making your service more appealing to the target market. You should hire a pro for your website to ensure the best results.

While website development tends to be expensive, with Trady, it can be budget-friendly and easy to operate. Besides are affordable costing plans, we ensure that your customers can easily make bookings and payments online in a matter of minutes. 

Licensing Needed

The licensing requirements before starting an HVAC business vary from state to state. Typically, you don’t need a bachelor’s degree to start working in the HVAC industry. Still, you may need certification from an accredited school or program. 

Different types of certifications are needed, depending on the line of work you plan to get into. These include: 

  • EPA Type I Certification: The Type I certification allows you only to service small appliances

  • EPA Type II Certification: The Type II certification grants permission to service high-pressure systems

  • EPA Type III Certification: The Type III certification allows you to service low-pressure systems

  • Universal EPA Certification: You can service all systems with universal accreditation. 

As for the licensing, most states require one, but in some states, you can start your business with only an EPA certification. However, you will still need to acquire a business license before starting your contracting business. 

Initial Capital Investment

As mentioned earlier, starting an HVAC business isn’t going to be cheap. The initial investment can range from $2000 to $10,000 if you opt for used items. But if all your investment is new, it can easily reach up to $100,000. 

Here is a list of all the things you will need to start your HVAC business: 

  • A vehicle that can carry all your supplies and equipment. Typically, vans are used. It is better to purchase a used vehicle instead of buying a new one. 

  • General tools. Typically, battery-operated drills, measuring tape, electrical testers, and other similar tools are used by HVAC technicians.

  • HVAC-specific tools, such as crimpers, drive bender, shear, staple guns, folding bars, etc. 

  • Safety equipment

  • Business cards

  • T-shirts and hats with the company logo

Once you’re done calculating the investment cost, set your financial goals based on that. The revenue you generate should cover the costs and allow you to generate profit. Of course, different business strategies affect how much profit you can achieve. 


While there are many other essentials that you must invest in, insurance is one thing that should not be overlooked. 

Having adequate insurance coverage protects your business from losses and damages resulting from an accident or a hazard. Different types of insurance are applicable for HVAC businesses, but you should always get liability and workmen’s compensation insurance. 

Despite having an established business, you can still go bankrupt without insurance. Liability insurance offers protection from claims made by customers regarding negligence. On the other hand, workmen’s compensation insurance protects against personal injury claims from workers. 

Other types of insurance needed by HVAC businesses include: 

  • Contractor’s tools and equipment: This insurance policy covers the cost of repair and replacement of HVAC tools if they get damaged or stolen. 

  • Commercial auto: Since you will own a business vehicle, commercial auto insurance will cover expenses for property damage, medical bills, legal matters, etc., in case your car gets into an accident. 

  • Performance Bond: A performance bond or surety bond insurance compensates clients if you fail to deliver the required services after a contract is signed. 

  • Cyber Liability: If your business will be taking credit card payments or working on the cloud, it is your responsibility to protect your customer’s sensitive information. Cyber liability will cover costs resulting from a cyber attack. 


No business can ever survive without marketing. If you want to reach your target market successfully, there is no better option than online marketing. For starters, you need to make your website SEO-optimized to ensure people can find it with a simple Google search. 

Posting blogs regularly on your website also helps. You can work on managing SEO content on your own, but if you don’t have the time, Trady can also help with that. 

Other than that, social media marketing is an excellent way to reach potential customers and generate leads. 

Regardless of your chosen method, make sure you let your audience know about the benefits you can offer. Clearly define problems and provide a solution to make people lean towards your business. 

How to Start an HVAC Business: The Bottom Line

Now you know how to start an HVAC business. Before anything else, you will need to conduct market research and analysis to find out what trends are being followed. After that, you will develop a business plan based on which your company will function. 

Once you’re done with that, you will need to pick out a name for your company and develop a logo. It will create an identity for your business. After that, you will need a website that allows customers to contact you or book appointments online. How your website is designed plays an important role in lead generation. Make sure it is user-friendly, fast, and SEO-optimized. 

You may need a license to start your HVAC business, depending on your state requirements. But EPA certification is essential in every state. Additionally, you will need insurance to cover personal injury and negligence claims. 

Lastly, marketing your business will help you reach customers more efficiently. In the age of digitalization, online marketing is the key to success. Ensure your business has a social media presence, and keep posting regularly on your webpage to keep your SEO rankings high.