When answering these questions, you’ll probably come across one common issue; the need for additional financing. You can pay for HVAC business expenses that increase sustainability and growth when you have enough working capital. According to a Lennox Business Coach, Gary Oetker, if you take the working capital and divide it by an average year of sales, it should amount to about 10-15 percent. If the amount is less than that, you may have cash flow issues. If your goal is to grow your HVAC business, you should aim to be at a minimum of 10 percent to invest your revenue back into your business. If you’re ready to start growing your business, check out our list of ways to benefit your HVAC company by applying for a business loan.
4 Ways to Spend HVAC Business Financing:
1. Pursue HVAC Business CertificationsDepending on where your HVAC business is located, you might be required to have specific licenses and certifications to operate in that state. If you’re serious about improving your business, you should consider investing in educational courses and licensing for you and your employees. If you’re debating whether to invest in additional training, know that it can often set you apart as someone competent in the HVAC business world. Certifications demonstrate that your team has specific skills and can increase the level of trust that your clients have in you.
2. Pay for Marketing MaterialsTo reach new clients, you should consider investing in a marketing plan. Not only can marketing help you attract new clients, but it will also allow you to be seen as a professional, serious HVAC business owner. Once you receive a loan or line of credit, you can create a website, pay for newspaper ads and truck signage, and attend networking events. These are all great ways to spread awareness about your business.
3. Build Your HVAC Technician TeamExpansion means an increase in workload, which means you’ll need to hire more employees. There may be times when the extra hands you’re looking to hire might not fit into your current budget. Consider offering an apprenticeship program where you can mentor newcomers in the industry. When they complete the program, you can hire them as full-time employees. By pursuing additional financing options, your focus changes from worrying if you’re meeting payroll; instead, you can focus on building a talented team and providing excellent customer service.
4. Invest in New TechnologyWhen you provide your heating and air conditioning services, you should consider energy efficiency, your company’s productivity, and how you can make your customers’ lives easier. For instance, you could invest in HVAC software or an app that helps you create schedules for your employees, store customer information, keep service records, and create pricing estimates. Having access to these HVAC systems will help you be more organized and make scheduling services easier for your customers.
Next Steps: What Are Your HVAC Financing Options?Now that you understand how you can utilize a business loan, you should start researching lenders that offer loans to HVAC business owners. Although you may be tempted to apply to the first lender you find, you should also research the following information:
- Loan Requirements: Most lenders will have set requirements for borrowers related to their credit score, time in business, and monthly sales.
- Application Process: If you have urgent funding needs, you may want to pursue a lender that offers a quick, streamlined application.
- Loan Terms: We recommend reaching out to the lender to find out your potential loan offer, including information such as monthly payments, repayment terms, and interest rates.