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  1. #1
    Join Date
    Jan 2020
    Posts
    10
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    New Member - new HVAC business

    Hi Everyone,

    I just got involved with the HVAC business a couple of months ago. my business partner is the one who understands the minutia of the actual work involved and I am trying to handle the business development. We initially started as GC's working on 1-4 family houses and after awhile we were feeding a lot of work to our HVAC guy. Eventually, we decided to take over his company and expand this business as a stand alone as well. First few months were a bit tough but we finally lined up a job flow as a subcontractor for a big HVAC contractor doing the labor on large residential developments. We now have 5 guys working for us full time. The company right now is breaking even with a little bit of profit left over. What we are struggling with is getting into the residential market . From the few residential jobs (installs and service) we did we saw that the profit % are tremendous so I would love to get advice on what exactly is the most effective way to break through in that particular segment of the market. Any advice would be appreciated. Thank you.

  2. #2
    Join Date
    Nov 2019
    Location
    Texas
    Posts
    2
    Post Likes
    If you want to target the home owner then I would suggest register your company to pro.homeadvisors, as this company provides leads in residential jobs.

  3. #3
    Join Date
    Mar 2015
    Location
    Medford, N.Y.
    Posts
    6,624
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    There is something really really wrong w/ this picture. There are 5 guys working full time and the balance sheet is just barely showing a profit?????

  4. #4
    Join Date
    Aug 2002
    Location
    Southold, NY
    Posts
    27,162
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    All your doing is generating cash flow, as soon as one check doesn't clear or doesn't come in you'll be out of business.

    my business partner is the one who understands the minutia of the actual work involved

    You'd better get a handle on this real quick.

    What does it cost per hour per employee to operate?

  5. #5
    Join Date
    Mar 2016
    Location
    Dayton Oh
    Posts
    2,339
    Post Likes
    Quote Originally Posted by TechmanTerry View Post
    There is something really really wrong w/ this picture. There are 5 guys working full time and the balance sheet is just barely showing a profit?????
    If your only doing sub contract work for new home builds it would be pretty easy. There is little money in new home construction. Many in my area give that work to undocumented workers.

  6. #6
    Join Date
    Mar 2016
    Location
    Dayton Oh
    Posts
    2,339
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    Quote Originally Posted by TechmanTerry View Post
    There is something really really wrong w/ this picture. There are 5 guys working full time and the balance sheet is just barely showing a profit?????
    If your only doing sub contract work for new home builds it would be pretty easy. There is little money in new home construction. Many in my area give that work to undocumented workers.

  7. #7
    Join Date
    May 2014
    Location
    Bay Area California
    Posts
    26,533
    Post Likes
    Quote Originally Posted by tornadohvac View Post
    Hi Everyone,

    I just got involved with the HVAC business a couple of months ago. my business partner is the one who understands the minutia of the actual work involved and I am trying to handle the business development. We initially started as GC's working on 1-4 family houses and after awhile we were feeding a lot of work to our HVAC guy. Eventually, we decided to take over his company and expand this business as a stand alone as well. First few months were a bit tough but we finally lined up a job flow as a subcontractor for a big HVAC contractor doing the labor on large residential developments. We now have 5 guys working for us full time. The company right now is breaking even with a little bit of profit left over. What we are struggling with is getting into the residential market . From the few residential jobs (installs and service) we did we saw that the profit % are tremendous so I would love to get advice on what exactly is the most effective way to break through in that particular segment of the market. Any advice would be appreciated. Thank you.
    Quote Originally Posted by TechmanTerry View Post
    There is something really really wrong w/ this picture. There are 5 guys working full time and the balance sheet is just barely showing a profit?????

    I think the problem is highlighted above. Not making any mark up on parts.
    I do a triple evac with nitro to remove non condensables.

  8. #8
    Join Date
    Jan 2020
    Location
    Seattle washington
    Posts
    4
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    If I am understanding you correctly you have 5 guys in the field working and little profit? Or do you have 5 guys total?

  9. #9
    Join Date
    Mar 2015
    Location
    Medford, N.Y.
    Posts
    6,624
    Post Likes
    Quote Originally Posted by pecmsg View Post
    All your doing is generating cash flow, as soon as one check doesn't clear or doesn't come in you'll be out of business.

    my business partner is the one who understands the minutia of the actual work involved

    You'd better get a handle on this real quick.

    What does it cost per hour per employee to operate?
    Just 1 goofy ass check for $1,000.00 can topple the Kingdom.

  10. #10
    Join Date
    Jan 2020
    Posts
    10
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    Thread Starter
    Hi,

    I am trying to catch up on the actual HVAC details but obviously its gonna take some time.

    In terms of how much it costs to operate I believe we are currently averaging around $22/hour

  11. #11
    Join Date
    Jan 2020
    Posts
    10
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    Thread Starter
    You are correct. Because we are a sub of a sub to a degree our margins are not high. We are also sometime plagued by revisions or mess-ups that our guys do where we have to come back and redo some portion of the work further thinning the margins. Because of this, I am trying to get us to the residential market which in a limited sample showed tremendous margins (50-100%)

  12. #12
    Join Date
    Jan 2020
    Posts
    10
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    Thread Starter
    We have 5 guys in the field. We do not have a back office .

  13. #13
    Join Date
    Jan 2020
    Posts
    10
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    Thread Starter
    100%. We are constantly pressured with payroll which essentially means we have to be on top of the big HVAC contractor to pay us out on the work performed. I am trying to avoid taking on debt and instead going to private investors to raise capital for the money through an equity buy-in.

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