You did it. You started your own HVAC company and do what you love every day. You’re living the American dream.
But is your business turning a profit? How much profit? Do you even know the answer to these questions?
If you don’t, you’re not alone. Many small businesses lack knowledge of their finances. And that’s part of the problem when it comes to decreased profitability.
In this guide, we will teach you how to calculate your profitability and provide tips to help your business turn a profit.
HVAC Business Profitability: An Outlook on the Industry
The demand for HVAC technicians is high and is projected to rise throughout the years. The Bureau of Labor and Statistics reports that the demand for HVAC technicians is expected to grow by 15% through 2026.
Has COVID-19 Affected the Demand for HVAC Services?
At the beginning of the COVID-19 pandemic, HVAC technicians were deemed as “essential workers” by the Department of Homeland Security.
Despite this, the majority of those in the HVAC industry saw a 19% decrease in revenue between April 2019 and April 2020. This loss of sales resulted in many small HVAC businesses being forced to close their business.
Today, some HVAC businesses are still recovering from the loss of sales during the height of the COVID-19 pandemic. But the businesses that made it through the pandemic intact likely did so because they had strong profit margins.
The Profitability of Your HVAC Business Is Influenced By Cash Flow
82% of failed small businesses cite cash flow as a factor in their failure.
Cash flow isn’t just about the amount of money coming in and coming out of a business — it’s about timing.
For example, if you are involved in a construction project installing HVAC systems for homes in a new development and your final invoice isn't paid until after your loan payments are due, you could end up with a cash flow problem.
Cash flow problems are nearly inescapable — they come with the cost of doing business. The Flexbase Card is the first credit card on the market specifically designed with growing HVAC businesses in mind.
With 10x the credit limit compared to traditional credit cards and perks like 0% interest for the first 60 days and no annual fees, you can use the Flexbase Card to finance needed equipment, float your expenses when in a cash flow bind, and more.
Click here to get pre-approved for the Flexbase Card today.
What Is the Average Salary for HVAC Business Owners?
The national average salary for HVAC business owners is $56,606. However, the average salary for an HVAC business owner can vary greatly based on the state and city the business is located in.
Average Salary for an HVAC Business Owner By State
Here is a look at the average salary for HVAC business owners by state: