Don’t quote us, but having access to an air conditioner isn’t a luxury anymore, this is why considering how to start an air conditioning installation business could be a fruitful business venture. You see them at homes, in companies, in malls, in cinemas—they are everywhere!
Installing an air conditioning system is a difficult process that usually (depending on the type of system) requires technical skills, but if you think you have the appropriate experience and plan to use this skillset to start an air conditioning business then this post is for you.
We will cover everything that you need to know about starting an air conditioning business—tips on a business plan, legalities and more. So read along…
What is an Air Conditioning Business?
Air Con Businesses provides air conditioning units as well as installation services for clients. This can be either providing new units or servicing old ones to ensure they work well.
Getting Started : The Pre-Planning Steps
So you’ve got a brilliant skillset that you want to leverage. But where do you even begin? just questioning; how to start an air conditioning installation business won’t cut it. Doing some effective research, even before you establish a business plan for your business’ air conditioning installation, will really help you set the foundations of the business.
That’s why we recommend a few important steps to consider—we call them the pre-planning steps!
Costs
Cost is a major factor particularly when setting up the business and hence having a working knowledge of spends—big and small is key. Think about:
- A vehicle that can carry your equipment, what will this cost?
- Tools required for the work such as a drill, tape measures, reciprocating saw, tin snips, pliers, screwdrivers and vacuum pumps.
- Safety equipment
- Supplies
- Insurance such as public liability insurance. Our partnership with BizCover cover you from property damage or personal injury suffered by somebody due to your work
Services and Rates
Once you have figured out the costs, it’s time to think of the various services and rates that you’ll offer to your customers. You should determine, for instance:
- What services your business will be offering – aside from installation, will you also be providing maintenance services?
- How far you (or your employees) will be willing to travel and when you will be offering your services – will you be working only during business hours or will you offer services outside of business hours if it’s urgent?
- What types of air conditioning systems you will provide services for
Then, you should consider how much you will charge for different services based on similar competitors.
Suppliers
It might be worth looking into potential suppliers around your location who can offer you referrals.
For instance, when a customer purchases an air conditioning system from a supplier, the supplier then forwards (or refers) your business’ details to the customer for installation services. This would normally involve offering a finder’s fee to suppliers.
Develop a Air Conditioning Business Plan
Excellent planning often leads to success. Using your research, you should develop a formal business plan to guide your business. This should include your:
- Business objectives and goals —how far you want to take your business, what will be the right goals for your business and how you will achieve them
- Target market—who is the ideal customer for your business?
- Competition- who is your competition
- Marketing strategy – how will you promote your business?
You can always seek assistance from a professional accountant or business lawyer to assist you with this, if you aren’t confident in developing a business plan yourself. It’s important to revisit and review your business plan regularly.
Find a Business Name
Now you need to decide on a business name. Once you decide on your name, you can check the availability of the business name you have chosen.
If the name is available, you can then register your business as a trademark to ensure that you have the exclusive rights to your business name throughout Australia.
Determining your Business Structure
You will need to decide on a business structure before you understand how to start an air conditioning installation business plan. Consider whether you will operate as one of the following.
- A sole trader is someone who owns and operates a business under their personal name.
- A partnership is when two or more people come together to form a business.
- A company is when you register your business as a separate entity from your personal affairs.
You should contemplate which structure will work best for your business goals. It is important to know what the legal ramifications are of each structure and how they can affect how you operate.
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Register your Air Conditioning Business
You need to register for a few things in order to make your business official. For instance:
- A business name
- An Australian Business Number (ABN) to help the Australian Tax Office (ATO) and customers identify your business.
- It would be good practice to also register your business as a company (ACN) so you can benefit from limited liability.
- Register your Tax requirements.
- Ensure that all relevant licences or permits are valid.
Marketing your Air Conditioning Business
To be competitive, you need to effectively promote your business. As a start, it would be helpful to:
- Set up and maintain a website which should contain key information about your business including your contact details. It is also important consider any website terms and conditions to ensure that your customers are safe;
- Set up and maintain a social media presence such as a Facebook and Instagram page;
- Use traditional physical marketing methods including newspaper advertisements and flyers; and
- Promote through suppliers who sell air conditioning equipment.
Having an online presence is important even for construction companies. Using websites like Shopify or GoDaddy can help you create a well-established business so that your customers can easily find you.
Considering the Law
If you are providing the air conditioning installation setup services yourself and not through employees, you need to be certified. Depending on the state, there are certain certifications and licences required to install air conditioning systems.
It’s important that you read about the heating, ventilation and air conditioning (HVAC) requirements for your particular state.
For example, in NSW, you need a specialty license from NSW Fair Trading to allow you to conduct work involving the installation, maintenance and service of an air conditioning system. This includes associated electrical wiring work that’s required during the installation process.
To get this license in NSW, you also need to have specific qualifications relating to air conditioning and refrigeration, as well as electrical qualifications. For the list of HVAC business requirements and the qualifications you need, visit the NSW Fair Trading website.
From here you need to file an application with Service NSW.
Legal Documents you will need
To get up and running, you should consider these legal documents so that you can protect your business. Some documents you should consider include:
- A Services Agreement can outline the service you provide so that your customer can know what to expect.
- A Employment Agreement can outline your employee’s responsibilities and their obligations to your business.
- A Sub-Contractor Agreement can be useful if you need to employ another business or sole-trader when operating your business.
Other Relevant Considerations
HVAC Trade Associations
There are a variety of trade associations that can provide you with more information on what you need when starting an air conditioning installation business. The Australian Institute of Refrigeration, Air Conditioning and Heating, Air Conditioning & Mechanical Contractors Association, and Refrigeration and Air Conditioning Contractors’ Association Australia are all great resources to use.
How Lawpath Can Help
At Lawpath, we can help guide you through starting your own air conditioning service business. One of our Experienced Lawyers can provide you with all the legal information and requirements necessary for your business to succeed.
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