The HVAC Contractor Business Plan and Financial Model provides you with complete control over your profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios. Please see the video below!
1.0 Executive Summary
This business plan will showcase the continued development and growth of an HVAC contracting business based in Miami, Florida. HVAC Contractor, LLC (“the Company”) was founded by Matthew Morisson who is currently seeking $150,000 in order to develop operations. The business will provide installations of HVAC components as well as ongoing maintenance and repairs.
1.1 The Services
The first revenue center for the Company will come from the ongoing installation of heating, air conditioning, and ventilation systems for both residences and commercial buildings in the South Florida market area. The business will generate substantial revenues from each engagement ranging from $10,000 to $75,000 depending on the scope of the clients needs.
In addition to these operations, the business will produce highly predictable streams of income from the ongoing maintenance of installed systems. The business, at the onset of operations, will employ two technicians that will provide onsite repair and maintenance services. These operations will remain in demand during all economic climates, which will ensure the ongoing profitability of HVAC Contractor, LLC.
The third section of this document will outline the operations of the business.
1.2 Financing
Via an SBA loan, the Company is currently seeking $150,000. This document assumes that the business will receive a 7 year loan carrying an 8% interest rate. John Doe will contribute $50,000 towards the development of HVAC Contractor, LLC. The funds will be used for the following:
• Office development in Miami
• Vehicles, tools, and equipment
• Initial marketing
• Working capital
As the business will produce highly predictable streams of revenue from ongoing repairs as well as substantial income from installations, the Company is a strong candidate for expansion financing on an as needed basis.
1.3 Mission Statement
HVAC Contractor’s mission is to provide complete HVAC solutions for its residential and commercial clients in the greater South Florida market area.
1.4 Management Team
Matthew Morisson has 17 years of experience as a licensed HVAC contractor. Through his experience and ongoing relationships with real estate developers in the Miami market, he will be able to rapidly bring the operations of the business to profitability.
1.5 Sales Forecasts
1.6 Expansion Plan
The Company will continue to expand the marketing campaigns that it undertakes within the greater South Florida market area. The business will continue to hire technicians, acquire additional vehicles, and expand the scope of its commercial contracting operations in order to expand revenue. The Company may also acquire area firms to grow through non-organic means.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
HVAC Contractor, LLC. The business is registered as a limited liability company in the State of Florida.
2.2 Required Funds
The Company will use the $150,000 SBA loan and the $50,000 investment from the Founder as follows:
2.3 Management and Investor Equity
Matthew Morisson will retain a 100% ownership interest in the business, and he will serve as the sole member of the corporate entity.
2.4 Exit Strategy
If is it financially prudent to do so, the Company will work with a business brokerage to find a suitable buyer. HVAC contractors are highly stable business. A sale could result in a premium of up to four times the Company’s earnings. This event is not expected to occur for at least seven to ten years.
3.0 Operations
As discussed in the executive summary, HVAC Contractor, LLC will generate income across a wide range of installation and repair services specific for HVAC systems. The most lucrative aspect of the Company’s operations will come from the ongoing installation of air conditioning, ventilation, and heating systems. The business will source and carry inventories among numerous major brands. The Company will offer these services for both residential property owners and commercial enterprises in the greater South Florida market. On average, a residential installation will result in $10,000 of revenue. Commercial operations will produce $30,000 per installation engagement.
In addition to installations, the Company will be able to provide maintenance and repair for any brand of HVAC system installed in a client’s home or commercial property. These services will produce income regardless of the economic climate, which will ensure that the business can satisfy its financial obligations at all times. The Company will continue to expand this aspect of operations over the next three years by hiring additional technicians and acquiring additional service vehicles.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
At this time, the economy is doing well. Although there have been issues with inflation and high interest rates, these issues are now abating. The US Federal Reserve and global central banks have indicated that they will take appropriate measures to continue to ensure that inflation rates decline while not impacting the overall productivity of the economy.
It should be noted that any potential issues with the economy will only modestly impact the business. HVAC Contractor, LLC will generate highly predictable income from its maintenance services. Additionally, the ongoing installation of new HVAC components tends to remain strong in most economic climates given that these are a necessity for residential and commercial properties alike.
4.2 Industry Analysis
There are approximately 126,000 companies that provide HVAC system installation and maintenance services. These entities aggregately produce $100 billion of revenue per annum. The industry employs 500,000 people.
This industry’s growth will be similar to that of the country as a whole. One of the common trends within this industry is to install systems that are energy efficient. The Company, at all times, will source products that help customers reduce their energy consumption.
4.3 Customer Profile
Among residential clients, the following profile is noted:
- Annual household income exceeding $75,000
- Has a home value exceeding $400,000
- Lives within 25 miles of HVAC Contractor’s location in Miami
For commercial clients, the business will use the following profile in the course of its marketing operations:
- Operates as a commercial enterprise that owns its location
- Annual revenues exceeding $600,000
- Will spend $10,000 to $75,000 for new HVAC system installations
The Company has specifically chosen the Miami and greater South Florida market area given its wealth and population size.
4.4 Competition
As the greater South Florida market area is a population dense market, the Company will face ongoing competition from other companies that provide HVAC system maintenance and installation. The business will maintain a competitive advantage by maintaining low operating costs, which will ensure that the business is able to remain pricing competitive at all times. Additionally, the business will use energy efficient components during the course of installation operations. In this section, you can further expand upon the reasons why your business will be able to remaining competitive with other contracting firms in your respective market.
5.0 Marketing Plan
HVAC Contractor, LLC will use several marketing and advertising strategies in order to ensure that the business can effectively reach a substantial audience of homeowners and property owners within the Miami and greater South Florida market areas. The business will aggressively use online marketing while establishing ongoing relationships with real estate developers in this market.
5.1 Marketing Objectives
• Foster ongoing relationships with referring contractors in South Florida.
• Develop relationships with real estate developers that will use the Company’s services during the course of new constructions.
• Use social media, press releases, and search engine optimization to drive traffic to the Company’s website.
5.2 Marketing Strategies
As it relates to commercially focused operation, the Company will conduct direct outreach programs among contractors and real estate developers in the South Florida area. These entities will call on HVAC Contractor, LLC when installations of systems are needed. Over time, these relationships with be one of the main drivers of profit. The business will use mailed advertisements (including brochures) to create brand name awareness among these targeted demographics.
The Company’s website will showcase both the installation and repair/maintenance services offered. This platform will undergo search engine optimization for both the Miami and greater South Florida market areas. The website will showcase images of completed installations, pricing information, and contact information. Over the next three years, numerous videos showcasing the operations of the business will also be produced.
HVAC Contractor, LLC will also use numerous social media platforms as well as service applications to further increase the revenues of the business. The Company will maintain profiles on Facebook, Instagram, LinkedIn, Yelp, and other platforms where contracting businesses can be listed. The Company’s social media platforms will link to the business’ website.
In addition to these marketing strategies, the Company will take out advertisements among regional real estate journals. This will create awareness among homeowners, property owners, real estate brokers, and real estate agents in the Miami market. This will further increase the recognition of the business’ brand.
5.3 Revenue Forecasts
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Payroll
7.0 Financial Plan
7.1 Underlying Assumptions
• HVAC Contractor, LLC will acquire a $150,000 SBA loan.
• Matthew Morisson will contribute $50,000 towards the venture.
7.2 Sensitivity Analysis
The Company’s revenues are only modestly sensitive to negative changes in the economy. Property owners and homeowners will need ongoing repair to the HVAC systems in all economic climates. The business will have highly controllable operating costs. The Company will generate substantial gross margins from both installations and repairs. This will ensure that the business can remain profitable while ensuring that the SBA loan can be properly serviced at all times.
7.3 Source of Funds
7.4 Profit and Loss Statement
7.5 Cash Flow Analysis
7.6 Balance Sheet
7.7 Breakeven Analysis
7.8 Business Ratios
