Short #74 – So You Wanna Start a Business Eh?
In this short podcast episode, Bryan explains what you need and the things you need to consider if you want to start a business in HVAC/R.
When you start a business, you need to have a healthy reserve of money already. Kalos started with $100,000, and that money went towards vans and tools needed for a GC and HVAC business. Even if you start a business with just one person and a truck, it's best to have at least $50,000 available at the start.
In the business world, you MUST care about money. Otherwise, you'll go out of business. Profit margin is important, but you must also have a healthy amount of cash readily available at all times. You must have enough cash on hand to weather a storm, and you would be wise to avoid credit card debt at all costs. At the same time, you must separate personal and business funds. You also need to have control of your pricing and know the difference between gross margin and markup.
Starting a business is also a commitment that will come with suffering. So, your spouse, kids, and mentors should be willing to help you every step of the way; a support system is extremely important. You may need to pay off the home and car debt, you may work late nights, and you may be frustrated with work at times, so the important people in your life need to be willing to support you.
Although hard independent work is necessary for HVAC work, having the right relationships is key. Knowing the right people is better than marketing in your business's early days. Be active in your community and provide excellent, friendly customer service.
Discipline, treating people well, hard work, and financial literacy are the keys to starting a business.
Learn more about Refrigeration Technologies HERE.