HVAC business owners have many regulations, equipment upgrades, and changing technologies to keep up with. Managing and developing a business, finding and training quality employees, and also keeping up with new and current customers can be challenging for you as a business owner. Growth is another challenge for business owners, but there are some ways that you can use financing to grow your HVAC business.
Heating, Ventilation and Air Conditioning Industry Analysis
The HVAC industry is progressing and evolving at a good growth rate. HVAC systems were an $81.1 billion market as of 2015 and the market is expected to grow by 5.5% each year through 2020, leading to an opportunity worth $130.7 billion by that time. Innovations are creating opportunities for HVAC businesses to conquer and grow business in new markets.
Why would an HVAC business need financing?
Planning and expanding your HVAC business requires a lot of work and cash flow. During this process, not having sufficient funds available shouldn’t come on your way to achieve your business goals. A quick alternative financing option can help you with the working capital needed to seize these opportunities.
Investing in New Technology
When you provide your HVAC services, you should consider energy efficiency and your business’ productivity to stay sustainable. To remain competitive, find the formula to creating ease for your customers. In order to do this, consider an investment in an HVAC application or software that helps you store customer information, create schedules for your employees, keep service records, and create pricing estimates. This will help you conduct your business in a more organized manner. If used properly, your customers will also enjoy the ease this tech brings to scheduling appointments. There are many smart technologies in the market for HVAC business that includes efficient smart thermostats, smart ventilation systems, home automation platforms, and so on. As an HVAC business owner, it is crucial to invest in innovation to keep an edge above the rest.
HVAC Business Certifications
Another major area that HVAC business owners are investing in are training and certifications for their HVAC technicians. Ongoing regulation changes make training even more of a priority. Certifications, however, demonstrate that your team has the skills needed for specific jobs. This creates confidence and trust in your team from your customers. Training and certifications often are a front-loaded investment but pay out in the long run.
Invest in Marketing
Investing in online marketing is an exciting and crucial outlet for HVAC businesses to reach new clients. Social media is a great platform where you can interact and connect with your target audience. You can utilize direct mail marketing campaigns, newspaper ads, and truck signage, to improve volume. Often having a marketing team may seem too expensive but when you start to see twice and three times the volume of jobs your team is completing, the investment becomes valuable.
Building a Team
Business expansion means an increase in workload. Which means you will need to hire more employees. Employees are often a necessary part of doing business and payroll can be costly during slow seasons. Furthermore, certified and trained HVAC technicians require higher pay due to the current supply and demand of qualified techs. Consider how you can integrate capital into your operating budget to cover these expenses.
How can an alternative lending partner help your HVAC business?
There are various alternative financing options for your HVAC business you can use for working capital. Alternative financing companies have a quick and easy online application, allow you to submit your loan application from your home or office, and can provide funding to you quickly. Also, there is less documentation required for alternative HVAC business financing. Alternative lenders can guide you, and help you get the amount of working capital you need on a repayment schedule you can manage. Lastly, always figure out your actual cost of funding, no matter what type of lender you use to avoid cash flow surprises.