HVAC Contractor

Words in [brackets] are blanks you fill in with your own details when you adopt this sample in Supreme Plan AI.

Executive Summary

Comfort Zone Heating and Air is a heating and air conditioning company serving homes and small businesses in the north side of our city and the nearby suburbs. We repair, maintain and replace air conditioners, furnaces and heat pumps, and we offer yearly tune-up plans so customers do not get caught without heat or cooling on the worst day of the year. When the heat or air conditioning goes out, a family cannot wait a week. Many HVAC companies are booked up, slow to call back, or push expensive replacements when a repair would do. We will win customers by answering fast, explaining the problem in plain words and giving honest choices between repair and replacement. Here is what our numbers show. We expect sales of about $432,800 in Year 1, growing to about $1,733,300 by Year 5 as we add licensed technicians, tune-up customers and a second vehicle. We expect a profit of about $22,400 in Year 1, growing to about $361,200 by Year 5. We need $98,500 in total. That covers $59,000 in startup costs (a used service van, refrigerant and testing equipment, hand tools, opening parts, certifications, insurance and advertising) and a cash cushion of about three months of bills. I am putting in $25,000 of my own money, and I am asking for $73,500. The startup costs include a used service van, so I do not need to buy a truck on the first day. I am Andre Carter, the owner. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Comfort Zone Heating and Air will be a limited liability company (LLC) in North Carolina, owned by Andre Carter. We will work from my home, with the van parked in my driveway and tools stored in a locked shed. What we believe. Show up when we say we will, explain what is wrong in plain words, give honest choices between repair and replacement, and leave the home clean. What we offer:
- Air conditioner, furnace and heat pump repair. - Yearly tune-up and maintenance plans. - System replacement: new air conditioners, furnaces and heat pumps. - Thermostat, duct and indoor air quality work. - Service for small businesses and rental properties. Licenses and insurance. HVAC is a regulated trade. Anyone who handles refrigerants must hold an EPA Section 608 certification, and many states and cities also require an HVAC or mechanical license, a contractor license, a permit for installations and insurance. Our state requires a mechanical contractor license for work over a set dollar amount, so I will work under my licensed partner until I earn mine. I will not take paid work until the right certifications and license are in place, or I will work under a licensed master technician. We will also carry general liability and commercial auto insurance, and workers' compensation once we hire. Where things stand today. I have worked in the trade for five years, I will have my EPA 608 certification before opening, I have priced a used service van, and I have done weekend tune-ups for friends and neighbors.

Problem & Opportunity

Homeowners near us want heating and cooling that works, and a company that treats them fairly. 1. Long waits. In a heat wave or cold snap, many companies are booked for days. 2. Pushy sales. Some companies recommend a full replacement before checking whether a repair would solve the problem. 3. Unclear pricing. Customers are often given one number on the phone and a larger one at the door. 4. No maintenance. Many systems fail early because no one ever tunes them up. How we know people want this. Four neighbors asked me to service their air conditioners last summer, and two landlords said they would sign yearly maintenance plans for 15 rental units.

Products & Services

What we sell. 1. Service calls and repairs. A visit to diagnose and repair an air conditioner, furnace or heat pump, or to do a tune-up. Our plan assumes an average of about $195 per call in Year 1, rising to about $215 by Year 5. Parts and direct costs run about $60 per call. We expect about 650 calls in Year 1 (about 13 a week), growing to about 2,054 calls a year by Year 5. 2. System installations. Replacing a whole air conditioner, furnace or heat pump. Our plan assumes an average of about $6,800 per installation in Year 1, rising to about $7,510. Equipment and materials cost about $4,200 per installation. We expect about 45 installations in Year 1, growing to about 172. Our prices. Diagnostic visit $90. Tune-up from $120. Furnace repair from $180. New air conditioner installed from $6,500. How it works for the customer:
1. A call answered quickly, and a rough idea of the cost before we come. 2. A time window, and a text when the technician is on the way. 3. A clear explanation of the problem and, for larger jobs, a written choice between repair and replacement, with prices. 4. A clean finish, a warranty on our work and an invitation to a yearly tune-up plan. Gross margin, explained. "Gross margin" is the share of each sale left after paying for materials and direct job costs. Our plan shows about 47% in Year 1. That money pays the owner and crew, vehicle costs, insurance and other bills.

Market Analysis

Who will hire us:
- Homeowners with older systems, who often need repair or replacement. - Landlords and property managers with rental units. - Small businesses, offices and restaurants. - Homeowners who want a yearly tune-up plan and one company to call. Where we will work. A service area close enough to reach customers fast, starting with five neighborhoods and two nearby towns within 20 minutes of my home. Less driving means more jobs per day. Season. Business is busiest in the hottest and coldest months, and slower in spring and fall. We use the slower seasons for tune-ups, maintenance plans and installation projects, which smooths out our income. Our plan is careful on purpose. About 13 service calls a week in Year 1 is a pace the owner and one licensed technician can handle well.

Competitive Landscape

Other choices customers have:
1. Larger HVAC companies. Metro Heating and Air (a made-up name) charges about $90 for a diagnostic visit; known for being fast, but pushes replacements. 2. Solo technicians and handymen. Often cheaper, but sometimes not certified or insured, and hard to reach after the job. 3. Home improvement stores and online sellers that sell equipment but do not install it. Customers still need an installer. How we will win customers: fast replies, honest advice, certified and insured work, clean jobs and a warranty on our work.

Marketing & Sales Strategy

How people will find us. - A free Google business listing with photos, a simple website and a phone number that gets answered. - Asking every happy customer for a Google review. - Yearly tune-up plan mailers and door hangers in neighborhoods we serve. - Relationships with property managers, real estate agents and home inspectors. - Seasonal offers before summer and winter, when people think about their systems. Marketing budget. About $8,000 a year, with more spent before summer and winter. The van lettering, business cards and website are paid for from startup costs.

Operations Plan

How the business runs day to day. Calls and jobs. Customers call or book online, and the owner (or an office helper) schedules each job by area and urgency. In Year 1 the owner and one licensed technician start by working jobs together, then split into two trucks as soon as we can add a second vehicle, by lease or a used purchase, from the first profits. We grow to four licensed technicians by Year 5. Equipment. About $45,000 to start: used service van with shelving and racks; refrigerant recovery machine and vacuum pump; manifold gauges, leak detectors and testing meters; brazing and hand tool sets; ladders, hand truck and equipment lift; duct and coil cleaning equipment; sheet metal tools; combustion analyzer; tablet, scheduling and load-calculation software; second set of tools and safety gear for the technician. We set aside about $5,000 to $6,000 a year for repairs and replacements. Upkeep. Gauges checked and calibrated on schedule, the van restocked every night, and refrigerant handled and recorded as the law requires. Safety. Safe handling of refrigerants, gas and electricity. Proper lockout steps and ladder safety on every job. Gloves, eye protection and fall protection used. Running costs in Year 1: vehicle and equipment maintenance about $16,000, licensing and insurance about $12,000, seasonal marketing about $8,000. Scheduling and billing. A simple scheduling and invoicing app on my phone, with customers billed after each job and installations billed in two parts.

Management & Organization

Who runs the business. Andre Carter, owner. As owner I will do HVAC work, quote jobs, schedule, order parts and handle the money side of the business. I plan to pay myself $66,000 a year in salary in Year 1. Crew. Licensed hvac technicians at about $56,000 a year each (or part-time pay): one in Year 1, two in Year 2, two in Year 3, three in Year 4 and four in Year 5. People who will help us: a bookkeeper or tax preparer, an insurance agent, and a free mentor from SCORE or the Small Business Development Center (SBDC). Frank Diaz serves as a key volunteer advisor.

Milestones Narrative

Our goals and when we plan to reach them. - Before starting: get the certifications, license and insurance, register the business, buy the van and tools, and set up the phone and website. Target start: February 2027, before the cooling season. - First year: complete about 650 service calls and 45 system installations, for about $432,800 in sales. - Year 2: add a second licensed technician, about $673,100 in sales, and a profit of about $65,800. - Years 3 to 5: grow to four licensed HVAC technicians and about $1,733,300 in sales by Year 5. Growth depends on hiring good people and winning the work, so treat the later years as goals, not promises. What we check every week: calls answered, jobs done, return visits, tune-up plans sold, new quotes, parts and fuel costs, and cash in the bank.

Funding Request

How much we need and how we will use it. Total needed: $98,500. This number comes from the Funding Need Calculator in this plan. It adds up: - Startup costs of $59,000, listed item by item in the Startup Costs section (about $45,000 for the van, recovery machine, gauges, tools and software, $5,000 for opening parts and refrigerant, $1,500 for EPA certification and license fees, $4,500 for the first insurance payment, $800 for business setup and bookkeeping software, and $2,200 for van lettering, business cards and a website). - A cash cushion of about $39,500: the deepest cash dip in the early months plus about three months of bills, so slow weeks do not put the business at risk. Lenders call this "working capital." - Together that comes to about $98,500 (rounded up to the nearest $500), which is the total we are planning for. Where the money comes from: - My own money: $25,000. - Amount requested: $73,500. Kind of funding we are looking for: an SBA 7(a) loan through a local bank or community lender. How we will pay it back. We expect a profit of about $22,400 in Year 1, growing to about $361,200 by Year 5. With this funding, the business has money in the bank every year of the plan. The loan is planned at 12.75% interest over 10 years, the most the SBA allows for a loan this size, so payments of about $1,087 a month are already included in our cash flow. What we are offering the lender: our van and tools as collateral and my personal guarantee A smaller first step, if needed. If we cannot raise the full amount right away, we can start smaller and grow into this plan: - Phase 1: start as a certified technician on evenings and weekends with your own truck and tools, doing tune-ups and small repairs while keeping your current job. Startup can be under $3,500. - Phase 2: once you have more calls than you can handle part-time, buy the service van and recovery equipment and follow this plan. To plan the smaller start, make a copy of this plan (use Duplicate) and lower the numbers to match. All numbers in this plan are estimates. We will update them as real results come in.

Appendix Notes

Documents to attach before you send this plan:

- Your resume (one page is fine) and any licenses or certificates. - A personal financial statement (a list of what you own and what you owe; lenders usually provide a form). - Business registration papers and your EIN (your business tax number from the IRS, free at irs.gov). - Proof of insurance, or a quote. - Quotes for the van, recovery machine and tools. - Your price list. - A list of current customers or repeat clients, if you have them. If you don't have any of this yet, no worries - let's continue. The assumptions behind our numbers (change them in the Financials section to match your own):
- Service Calls & Repairs: about $195 per call in Year 1, rising to $215; about $60 per call in direct costs; about 650 calls in Year 1, growing to 2,054. - System Installations: about $6,800 per system in Year 1, rising to $7,510; about $4,200 per system in direct costs; about 45 systems in Year 1, growing to 172. - Owner salary: $66,000 a year. Crew: $56,000 a year each, from one in Year 1 to four in Year 5. - Other yearly costs in Year 1: vehicle and equipment maintenance about $16,000, licensing and insurance about $12,000, seasonal marketing about $8,000. - Tax rate: 21%. - Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs