March 31, 2020

Profit Tips for an HVAC Business

Profit First Methodology

Profit Tips for an HVAC Business

You may have lots of work in your HVAC business but do you have the profits that you would like? Or, do you make great money on every job but not have enough work? At Exigo Business Solutions in the Kansas City area, we work with many clients who provide services in the skilled trades. From our years of experience, we can offer several profits tips for an HVAC business. First of all, you need to have a basic business plan and then you need to develop an effective and cost-effective marketing plan. After that, you need to make sure that you understand the financial aspects of your business and that may require that you consider outsourcing your bookkeeping. Last of all, but perhaps most important, you need to take steps to make profit a habit in your HVAC business and not just a dream. Here is a bit more detail about our profit tips for an HVAC business.

Start with a Plan in Your HVAC Business
Start with a Plan in Your HVAC Business

Start with a Plan in Your HVAC Business

If you hate the idea of writing a long, drawn out, and formal business plan, don’t worry. The most important reason to create a business plan is to get your own thoughts in order. At Exigo Business Solutions we suggest that our clients use a very effective tool called LivePlan to guide them in setting up and maintaining their business plan.

There are three reasons why you need a business plan.

  • Set priorities
  • Maintain control
  • Get financing

                                                                                                                                              

You know that every HVAC job you do requires a plan to do it right. The same applies to your HVAC business. If you would like some help with this task, contact us at Exigo Business Solutions today.

Marketing Your HVAC Business

You do not need to spend a ton of money on advertising for your HVAC services. But, you should do some simple things like setting up a website that explains who you are, what you do, and how to contact you. And, you should make sure that whoever sets up your site and produces the content develops it with local SEO (search engine optimization) in mind. Effective local SEO marketing will bring more HVAC business to your door.

Handling Your Finances as Well as You Handle HVAC Jobs

There is a big difference between doing HVAC work and running an HVAC business. In addition to knowing and being able to do HVAC work, you need to know about a whole range of “management” issues and especially how to deal with and manage your finances. The second of our profit tips for an HVAC business is that you arm yourself with the tools and advice needed to effectively manage cash flow, budgeting, job selection, and expenses. Bookkeeping is often thought of as a task that is necessary but not essential to your business. But, that simply is not true. Your bookkeeping should give you the information and insights to do things like pick the most profitable jobs, improve the efficiency of how you do all aspects of your work, and manage your finances in such a way as to maximize profits. If you are not getting this in your bookkeeping, please understand that when you outsource your bookkeeping it can pay for itself in the business improvements that you make based on better information. Contact us at Exigo Business Solutions for a review of your bookkeeping system and suggestions for improvements.

Adding Financial Discipline to Your HVAC Business and Making Profit a Habit
Adding Financial Discipline to Your HVAC Business and Making Profit a Habit

Adding Financial Discipline to Your HVAC Business and Making Profit a Habit

When you do any HVAC job you have a clear idea of what the final result will look like. When you work with Exigo Business Solutions, we will suggest that you use a unique bookkeeping approach that treats profit like the planned final result of one of your HVAC jobs. In other words, we will have you use a system that makes a habit out of taking a profit instead of treating profit like a dream. The system we recommend is called Profit First.

Make a Habit Out of Taking a Profit with the Profit First Method

Profit First is a bookkeeping method that allocates profit, owner’s pay, taxes, operating expenses, and more to segregated bank accounts twice a month. Rather than looking to see what is left over for profit after paying expenses, you will allocate profit off the top. Then, you will use the fiscal discipline that Profit First requires to get a handle on cash flow, budgeting, profitable job selection, and a whole range of expenses. Although this approach is listed last, it is the first of our profit tips for an HVAC business or any business. As soon as you start with this approach your will reliably bank a profit and you will focus on expenses to cut and ways (like better marketing and job selection) to further increase the amount of money you can allocate to profits.

For more insights and information about how Profit First can make profit a habit in your HVAC business, contact us at Exigo Business Solutions in the Kansas City area today.

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