What is the cost of starting an HVAC business?

For starting an HVAC business, a small business owner would require money ranging from $3,000 to $12,000. It basically depends on what tools and equipment you need to buy upfront. The following are common HVAC startup costs that you should factor into your budget: Insurance for HVAC businesses ($600-$2,000) Basic HVAC tools such as screwdrivers, tape measures, hammer, stepladder, electrical testers, wire strippers, pliers, wire strippers, and cordless drills ($200-300) A van or truck big enough to carry equipment to job sites ($15,000-40,000) Equipment for safety and personal protection equipment (PPE) ($35-$50 per person)

What are the skills, education, and certification required for small business owners in the HVAC industry?

There are several types of HVAC certifications, including: EPA Type I Certification (for servicing small appliances) EPA Type II Certification (for servicing high-pressure systems) EPA Type III Certification (for servicing low-pressure systems) Universal EPA Certificate NATE (North American Technician Excellence) offers professional-level certifications for HVAC professionals

How do I start my HVAC side hustle?

If working for yourself is your ultimate objective and you want to start an HVAC side hustle, then here are a few preliminary steps to starting your business: Obtain the required certifications Choose the business structure Get a Contractor License Open a new bank account for your HVAC business Get necessary business insurances

Where can I find HVAC leads?

From lead generation websites to referral programs, you can find new leads using a variety of methods. Here are some lead-generation strategies to help you find quality leads: Develop your social media presence Plan out your SEO Start paying for adverts Create an online review portfolio Offer incentives for referrals Hire marketing staff or contract out the task Networking with people and businesses can also help

How do I scale my HVAC business?

Here are some tips to scale your HVAC business: Increase the effectiveness of your marketing and advertising activities by focusing more on SEO, PPC advertisements, running promotional campaigns, and providing discounts Offer new products or services that augment your current offerings Billing software offers multiple advantages . So, to streamline your business processes use automated ordering and billing software Start using GPS vehicle tracking, cloud-based software, and customer relationship management software Utilize the appropriate tools and technology to streamline your business processes Provide top-notch customer service and high-quality products Boost your knowledge and abilities

How to Start an HVAC Business: An Ultimate Guide

Key Takeaways

01You must obtain EPA certification and an HVAC contractor license before legally operating
02Startup costs typically range from $2,000 to $10,000 for basic setup, but can exceed $100,000 for complete equipment
03A comprehensive business plan is essential for securing loans and guiding your growth strategy
04Multiple insurance policies are required including general liability, workers' comp, and commercial auto
05Strategic pricing, professional marketing, and excellent customer service are key to long-term success

If you're thinking about starting an HVAC company, you're probably in one of the two categories.

Either you're a qualified HVAC technician planning to start your own business, or you're an entrepreneur striving to manage a successful HVAC company.

However, you need to be both an entrepreneur and an HVAC technician to run a successful business in a technical industry such as HVAC.

Therefore, to help you learn how to start an HVAC business, we have created this guide with detailed steps.

Table of Content

Enroll in an HVAC Certification Program
Get Your HVAC Contractor License
Create an HVAC Business Plan
Buy HVAC Business Insurance
Determine HVAC Business Startup Costs
Make a List of Services that You can Offer
Purchase HVAC Tools & Equipment
Price Your HVAC Business Services
Advertise Your HVAC Business
Reduce Additional Expenses
Recruit Professional & Experienced HVAC Technicians
FAQs
Use an HVAC Estimate & Invoicing Software to Scale Your Business

Discover the 11 simple steps on How to Start an HVAC Business

1. Enroll in an HVAC Certification Program

2. Get Your HVAC Contractor License

3. Create an HVAC Business Plan

4. Buy HVAC Business Insurance

5. Determine HVAC Business Startup Costs

6. Make a List of Services that You can Offer

7. Purchase HVAC Tools & Equipment

8. Price Your HVAC Business Services

9. Advertise Your HVAC Business

10. Reduce Additional Expenses

11. Recruit Professional & Experienced HVAC Technicians

Let's dive in!

1. Enroll in an HVAC Certification Program

Before working as an HVAC technician, you must obtain HVAC certification from an accredited institution or training course.

Certification Requirements by Region

Requirements vary significantly by country and region:

United States: All professionals who service air conditioning units and refrigeration equipment must be certified by the Environmental Protection Agency (EPA) according to the Clean Air Act
Canada: In most provinces, refrigeration and air conditioning technicians must obtain a business license from a regulatory authority under the provincial government's jurisdiction
United Kingdom: Complete a bachelor's degree and an apprenticeship before working as an HVAC contractor. Several college courses are available to help you find work as a trainee
Australia: Complete a certificate program and apprenticeship before getting an air conditioning service license from the Australian Refrigeration Council (ARC)

Although not required, a certificate from organizations such as HVAC Excellence or NATE (North American Technician Excellence) can provide you with extra credentials. It makes your customers feel more confident in your abilities.

2. Get Your HVAC Contractor License

While HVAC certification validates your knowledge and skills, an HVAC contractor license authorizes you to service HVAC systems.

Most places require you to acquire an HVAC business license, which is a legal document, but the process varies based on where you live:

Each state in the United States has its own requirements for obtaining an HVAC license. This typically means you require formal HVAC certification in addition to a few years of experience working as an apprentice. Without a trade license for HVAC, you risk facing severe fines and penalties.
HVAC contractor licenses are not required in the United Kingdom or Canada. But, Canadian technicians who work in air conditioning and refrigeration must be accredited by a government-approved program.
Anyone working with air conditioning or refrigeration equipment in Australia must have a Refrigerant Handling Licence.

3. Create an HVAC Business Plan

A successful HVAC company starts with a business plan that guides you to growing Your HVAC Business. You will define the following in that document:

Cover Page

A cover page with the name of your company, address, contact information, and the date the document was prepared.

Executive Summary

Your complete business strategy is briefly summarized in the executive summary. Describe your company's mission and aims in this area, as well as what consumers may anticipate from your business plan.

Business Overview

The HVAC services your company performs and how it runs are summarized in your business overview. It's basically a description of your HVAC business model.

List of HVAC Services

Include a list of all the HVAC services you want to provide, along with an estimate of how frequently you'll be servicing clients.

Pricing HVAC Services

Now that you are aware of your primary services, utilize your business plan to outline how you will charge for them in order to remain successful.

Market Research

Two important factors are assessed by your market analysis: your target market and your competitors.

Marketing Strategy

Your marketing strategy aids in promoting your company to the appropriate demographic using the appropriate techniques.

Financial Plan

This area is crucial for possible investors if you're searching for funding. Your financial strategy must incorporate sales projections, payroll expenses, equipment, and overhead costs.

Taking the time to create an HVAC business structure keeps you focused. It helps you secure startup loans from financial institutions or other investors.

4. Buy HVAC Business Insurance

The job of an HVAC professional has significant risks. Lifting a unit might injure a worker's back, and leaking air conditioners can ruin a client's floors. Healthcare, litigation, and repair expenses are all covered by HVAC insurance. Laws may also mandate certain insurance coverage, such as workers' compensation.

Essential HVAC Insurance Policies

General liability insurance - Covers third-party claims of bodily injury and property damage
Workers' compensation insurance - Legally required coverage for employee injuries
Commercial auto insurance - Protects your service vehicles and equipment in transit
Contractor's tools and equipment insurance - Covers theft or damage to your tools
Professional liability insurance - Protects against claims of negligence or faulty workmanship
Property insurance - Covers your office, warehouse, and physical assets

5. Determine HVAC Business Startup Costs

The cost of starting an HVAC company is high, and failing to keep track of all business expenses is one of the biggest mistakes you can make.

Assuming that you're purchasing a used service van or truck and trying to keep your equipment costs down, the average startup cost in the HVAC industry ranges from $2,000 to $10,000.

However, if you buy everything at once, the cost could easily exceed $100,000.

Budget for These Essential Costs

You'll need the following to run your HVAC business:

HVAC tools used for sheet metal work, such as aviators or tin snips, drive bender or folding bar, shears, staple guns, crimpers, etc.
HVAC tools for air conditioning service and maintenance work
Uniforms and caps with the company's logo
Vehicle signage
HVAC business website
Marketing materials, such as business cards and door tags to verify service with contact information
Supplies
A service truck or van large enough to carry all your tools and equipment
Workers compensation insurance
Liability insurance
General tools used in HVAC, such as an electrical tester, tape measures, battery-powered drill, Sawzall, etc.
Safety equipment

6. Make a List of Services that You can Offer

Decide what HVAC services you want to offer so you can buy the necessary equipment and begin pricing.

The following are the most popular HVAC repair, setup, and maintenance services that you can provide:

Furnace repair
Air conditioner installation
Air duct cleaning
Tankless water heater installation
Emergency HVAC service
Furnace installation
Furnace tune-up and maintenance
Air conditioner tune-up and maintenance
Heat pump installation
Air conditioner repair

The service that you should probably sell the most is the one that you may have specialized in during trade school. Therefore, offer services you are skilled at and enjoy performing to make your job more rewarding.

7. Purchase HVAC Tools & Equipment

You can now focus on what tools and equipment to acquire now that you are clear on the services you wish to provide.

You'll need the following main pieces of HVAC gear in your bag:

Standard hand tools including hammer, screwdrivers, wrenches, pliers, nippers, staplers, gauges, drills, flashlight, tube cutters, and extension cord.
Mask, gloves, ear muffs, goggles, shoes, and other safety equipment.
Modern HVAC equipment varies based on the services you offer, such as leak detectors, phase testers, coil fin straighteners, thermal cameras, caulking guns, core removal tools, megohmmeters, multimeters, nitrogen regulators, flushing solvents, and coolant.

8. Price Your HVAC Business Services

To run a profitable HVAC business, you must set prices that cover your expenditures while also making your company successful.

Here's how to get started with pricing HVAC jobs:

Assess your competitors to learn about the average rates in your location.
Determine the markup required to meet your profit margin targets.
Decide what additional services you can provide to raise your total quote prices.

HVAC Pricing Models Comparison

Pricing Model	Best For	Key Benefits
Hourly Rate	Time-consuming or commercial HVAC contracts	Helpful when you don't know how long a project will take to complete
Flat Rate	Standard service jobs with predictable timelines	Provides a single, definite price for the entire job (e.g., $350 for AC service)
Labor and Materials	Installation projects with variable equipment costs	Easily recoup operating expenses by charging for both labor and materials

Once you have determined your service prices, make an HVAC pricing chart that details your service costs at flat rates or hourly rates. By using a pricing chart, you can quickly and easily give clients HVAC estimates that are accurate and consistent.

9. Advertise Your HVAC Business

Marketing is critical for gaining your first clients and operating a successful HVAC business. Here's what you'll need to get started with the marketing strategy for HVAC contractors to reach new customers:

Company branding

A company's branding gives it a look and a personality and communicates to all potential customers that it is a professional operation. Create a logo and select colors for your HVAC company's website, uniforms, business cards, and all other marketing materials.

Pro Tip

Impress your clients with professional, fully customizable invoices that reflect your brand. Try HVAC invoicing software today!

Go door-to-door to reach new customers

To spread the word about their businesses, new HVAC business owners frequently rely on word-of-mouth. Knock on doors and distribute flyers throughout your neighborhood to try and generate your first few HVAC leads.

Create your online presence

Clients can easily find your HVAC business on the internet if you have an online presence.

The more online presence your business has, including a website for your HVAC company, accounts on social media platforms, and Google Local Services Ads, the more customers are likely to contact you to book your services.
Take control of your Google My Business listing and add your company to Google Maps. This increases your chances of appearing in local searches for "HVAC companies near me."
On your social media accounts, you post photos of your completed projects, share heating and cooling system maintenance and refrigerator/freezer maintenance tips, and post information on the advantages of keeping your home and car's heating and cooling systems well-maintained as well.

Close in more sales

By doing more than just HVAC installation and repair, you can increase your earning potential. To help your customers maintain their own HVAC systems in between maintenance visits, you can sell air conditioner filters and other necessary accessories.

Increase word-of-mouth

Every professional in the field service industry understands the value of providing excellent customer service. So, providing your clients with the best service you can is something you should prioritize.

When customers tell their friends and family about their experiences, they will have nothing but positive things to say about your HVAC business and services.
For your HVAC company to survive and thrive in the industry, reviews and recommendations are essential. Ask your existing clients to post reviews and testimonials about their experiences with your business on social media platforms.
Whenever possible, hand out flyers of your services and your HVAC business cards.
The best way to improve the experience for customers is to pay attention to their feedback and make changes as needed.

10. Reduce Additional Expenses

Monitor all expenditures very carefully. Just because you currently have the best deals available does not guarantee that this will always be the case.

As you assess your expenses, look for opportunities to cut costs. You can do so by stocking up on supplies in large quantities, obtaining manufacturer discounts for parts, or participating in loyalty programs to save money on fuel and other overheads.

It's possible that as you expand, you'll be able to take advantage of more discounts with bigger orders.

11. Recruit Professional & Experienced HVAC Technicians

It's time to hire a certified HVAC technician when your workload becomes too great for you to handle on your own. Hiring HVAC technicians to handle fieldwork will free up more of your time so you can concentrate on sales, scheduling, brand management, and other aspects of managing and expanding your new business.

Tips for Hiring HVAC Technicians

Here are some tips for discovering and hiring skilled HVAC technicians:

Determine if you want to recruit employees or HVAC contractors and subcontractors
Create a fantastic job description for HVAC contractors, and post it on websites for job-searching contractors or employees
Prior to hiring a heating and air conditioning contractor, prepare some questions to ask them
Verify the references and request police background checks
Get ready to train your staff once they've been hired
Pay your team well and create a positive atmosphere at work

Streamline Your HVAC Business Today

Ready to take your HVAC business to the next level? InvoiceOwl helps you create professional estimates and invoices in minutes, track payments, and manage your growing business with ease.

Start Your FREE Trial

Frequently Asked Questions

For starting an HVAC business, a small business owner would require money ranging from $3,000 to $12,000. It basically depends on what tools and equipment you need to buy upfront.

The following are common HVAC startup costs that you should factor into your budget:

Insurance for HVAC businesses ($600-$2,000)
Basic HVAC tools such as screwdrivers, tape measures, hammer, stepladder, electrical testers, wire strippers, pliers, wire strippers, and cordless drills ($200-300)
A van or truck big enough to carry equipment to job sites ($15,000-40,000)
Equipment for safety and personal protection equipment (PPE) ($35-$50 per person)

There are several types of HVAC certifications, including:

EPA Type I Certification (for servicing small appliances)
EPA Type II Certification (for servicing high-pressure systems)
EPA Type III Certification (for servicing low-pressure systems)
Universal EPA Certificate
NATE (North American Technician Excellence) offers professional-level certifications for HVAC professionals

Starting an HVAC company can be challenging, but following the step-by-step procedure discussed in this blog can help. The above-discussed procedure will provide you with all the information necessary for the easy establishment and profitable long-term success of your company.

If working for yourself is your ultimate objective and you want to start an HVAC side hustle, then here are a few preliminary steps to starting your business:

Obtain the required certifications
Choose the business structure
Get a Contractor License
Open a new bank account for your HVAC business
Get necessary business insurances

The cornerstone of any prosperous business is marketing, and with it, your HVAC company can draw in a growing number of customers. Fortunately, several effective marketing strategies can be easily used:

Create a program for HVAC customer referrals
Utilize SEO, content marketing, and pay-per-click advertising
Implement video marketing
Use social media to promote your HVAC brand
Use HVAC flyers and distribute them to nearby residences
Develop the most effective HVAC Website

From lead generation websites to referral programs, you can find new leads using a variety of methods. Here are some lead-generation strategies to help you find quality leads:

Develop your social media presence
Plan out your SEO
Start paying for adverts
Create an online review portfolio
Offer incentives for referrals
Hire marketing staff or contract out the task
Networking with people and businesses can also help

Here are some tips to scale your HVAC business:

Increase the effectiveness of your marketing and advertising activities by focusing more on SEO, PPC advertisements, running promotional campaigns, and providing discounts
Offer new products or services that augment your current offerings
Billing software offers multiple advantages. So, to streamline your business processes use automated ordering and billing software
Start using GPS vehicle tracking, cloud-based software, and customer relationship management software
Utilize the appropriate tools and technology to streamline your business processes
Provide top-notch customer service and high-quality products
Boost your knowledge and abilities

Use an HVAC Estimate & Invoicing Software to Scale Your Business

Starting your own HVAC business requires extensive planning and organization. However, if you take a comprehensive, systematic, and strategic approach, your own HVAC business will be up and running in no time.

Start off right by signing up with HVAC estimating & invoicing software, such as InvoiceOwl, to optimize your work processes and scale your business.

It will enable you to create multiple, error-free HVAC invoices, purchase orders, and estimates effortlessly with complete automation.

InvoiceOwl can also track your payments and generate analytical business reports. So, you won't have to do these tasks manually and would rather spend that time establishing strategies to realize core business goals.

Related Resources

Guide to Create Impressive HVAC Business Cards in 12 Ways

Business cards give your customers something to remember you by. Here are tips to create impressive HVAC business cards that make all the right impressions.

Top 10 HVAC Apps for Technicians in 2026

Go through the leading HVAC apps required to run your service business smoothly and ensure that you deliver a quality customer experience to your clients.

22 Best HVAC Blogs to Follow in 2026

To stay ahead of the competition in the HVAC industry and offer customers top-notch services and excellent delivery, these are the best HVAC blogs to follow.

23 Best HVAC Tools You Should Have as a Professional

Discover the top 23 must-have HVAC tools for professional technicians. Maximize your efficiency and master your craft with these essential tools.

Arizona Plumbing License: The Process to Become a Plumber in Arizona

Arizona Plumbing License: you need an appropriate plumbing license if you want to get a plumbing contract of over $1000 in Arizona.

How to Get a Plumbing License in California

Are you planning to start plumbing business in California? We have covered all major steps about how to get a california plumbing license hassle-free.

How to Get Florida Plumbing License

Are you certified plumber and looking for start your own business? Here are the full guide about how to get Florida plumbing license without any hassle.

Michigan Plumbing License: Steps to Becoming a Licensed Plumber

Get your Michigan plumbing license with our step-by-step guide! Learn the requirements, costs, and process to become a licensed plumber and start your business.

Guide to Create Impressive HVAC Business Cards in 12 Ways

Business cards give your customers something to remember you by. Here are tips to create impressive HVAC business cards that make all the right impressions.