You love what you do, but you can’t stand your employer. So you’ve decided to go solo and parlay your HVAC career into your own business. It shouldn’t be too hard, right? You have a few clients. All you need to do is hire a couple of techs, get your name in the Yellow Pages, find someone to answer the phones and pay bills, then watch the money roll in. Unfortunately, it’s not that easy.

Being a heating and air conditioning contractor is no easy task! Starting your own HVAC business is not for the faint of heart. It’s a stressful, 24-hour endeavor, and if you don’t have a solid HVAC business plan covering everything from creating your brand to how to balance your finances, then chances are things will not go as smoothly as you imagine. Lucky for you, we developed this handy list of tips that every contractor should master. Whether you are new to the industry or already established, it never hurts to look for ways to benefit your business.

HVAC Marketing Strategies

TIP #1. YOU NEED A MARKETING PLAN: 77% of contractors have no marketing plan, only 23% develop a plan, this is why it is so easy for new contractors to come on the scene. In his book Small Business Management (published by West Publishing Co.), Michael Ames gives several reasons for small business failure, including lack of experience, insufficient capital, poor inventory management, and personal use of business funds, among others. A report by the Joint Center for Housing Studies at Harvard University indicated that 22% of contractors with payrolls of less than $30,000 in 2003 were no longer operating in 2004, a failure rate almost ten times higher than those with payrolls of $350,000 or more. And according to BizMiner, between 2007 and 2009, 31.9 percent of contractors in the United States went under. Don’t let this happen to you! Here’s a revealing article in Air Conditioning, Heating & Refrigeration News about the top 10 pitfalls for contractor businesses, and how to avoid them.

• Why HVAC Contracting Businesses Fail

TIP #2. YELLOW PAGE ADS ALONE DON’T WORK: The majority of consumers in the U.S. does research online, and will not open a Yellow Pages directory. So, don’t overspend on Yellow Pages ads. The ROI is not worth it. Instead, consider social media marketing, email campaigns, mailers, etc.

Check out this Yellow Pages ROI info a Forbes article ‘Should Small Businesses Still Book Yellow Page Ads?‘:

• Cost of the campaign: $4,000
• Value of one new customer: $100
• Number of customers gained to break even: 40
• Number of leads needed to gain one new customer: 10
• Number of leads needed to break even: 400
• Number of leads needed to achieve 100% ROI: 800

In this case, if a Yellow Page contract is $4,000 for the year, you need to generate 400 real leads to break even. That is more than one call a day from your Yellow Page ad, in this example. Compare this to other marketing options you have, and calculate their relative break-evens

TIP #3. LOVE YOUR BRAND: Create the right branding and image for your business. (Websites like oDesk.com and Freelancer.com feature freelancers listed by category, such as web development, sales and marketing, design and multimedia. Posts include pictures, ratings, and hourly rates.) Everything from your logo (between $2,500 to $5,000 for startup or small businesses) to wrapped trucks (about $2,500 per truck) to call scripting (check out a sample HVAC script from Specialty) should be designed to draw the consumers’ attention and be easily memorable and recognizable. Did you know that the visual sense is the strongest in most human beings? A whopping 90% of an assessment for trying out a product is made solely based on color. Taken a bit further, this article by Sherwin-Williams describes how men and women respond differently to color. Here are the main points:

• Advertising to males?
• Top three favorite colors: blue, green, black
• Top three least favorite colors: brown, orange, purple
• Many men are color blind, so be aware of red/green visual problems and choose colors that are easier to distinguish.

• Advertising to females?
• Top three favorite colors: blue, purple, green
• Top three least favorite colors: orange, brown, gray
• Women tend to have a broader range of color preferences and they are more open to trying new colors.

• Advertising based on consumer age?
• Among the favorite colors, green decreases in preference as both genders age.
• Among the least favorite colors, orange is increasingly disliked as both genders age.

TIP #4. LEARN FROM YOUR MARKETING: Study your past marketing efforts and take account of successes and failures. What did you do last year that worked or didn’t work? How much money did you invest, and was there considerable ROI? Don’t repeat past marketing mistakes and reinvest in what failed before. Do market research to determine what people most need and what price points they feel are fair. You can use QuickBooks to track your marketing dollars spent and ROI:

• Using QuickBooks to Track Your Sources of Income

TIP #5. GET SOCIAL: Did you know that 32% of people recommend local businesses on Facebook? Social networking is the key to establishing a personal bond with customers. Think about sending out monthly email newsletters to your customers, or Tweeting helpful tips like “when was the last time you had your central air filter changed,” “don’t forget to remove window units before the winter season,” and other reminders that can benefit those who support your business. In every communication you have with customers, ask them to “like” your business on Facebook, Twitter, Pinterest, etc. Business owners often underestimate the power of social media. Listed below are a few key tips from the articles 18 Social Media Marketing Tips From the Pros and Social Media Important Tool for Small Business. If you’d like to read more, check out this article from Mashable that illustrates 10 basic and advanced suggestions for how small businesses can boost their marketing potential with social media.

• Learn how to use the various platforms, and ask yourself which sites would be best suited to your business. Don’t try to use all of them, as it will be difficult to keep them up-to-date.
• Aim for congruency across all of your webpages. They should have the same look and feel.
• Stay on top of what your competitors are doing. You may be posting information about the same subject, so retool your posts and approach the topic from a different angle.
• Research what your target market needs, and the problems they face. Then, gear your blog towards addressing those issues. Make sure the content is interesting and engaging.

TIP #6. PARTICIPATE LOCALLY: Take part in local events and get your name out to the community. Local brand recognition can come from little things like placing an ad in the church bulletin to sponsoring your city’s chapter of the Make A Wish Foundation, music or athletics boosters groups, or even donating a part of your proceeds for a particular month to a well-known organization like your local American Red Cross. This allows companies to be viewed as “good neighbors.” When you support your community socially and economically, it portrays your business as generous, and dedicated to those you serve. To research charities in your area, visit GuideStar.org, or Charity Navigator.org.

TIP #7. KEEP YOUR CUSTOMERS ENGAGED: When you send out email marketing blasts, make the language fun and engaging, and clearly outline specials you are running, discounts, etc. so that they stand out to the consumer. Be sure to use a nice mix of pictures and text. Some browsers will block emails that are all pictures, so it’s better to use pictures to accent or illustrate your promotions. Additionally, it might be a good idea to have all text and pictures link back to your landing page. This way, whether customers hover over the picture or the price, one click can bring them directly to your website. Email campaigns aren’t blind – meaning that you need to have lists prepared ahead of time. Typically, you will want to email to your current customer base. Here are three sites that can help you construct free email campaigns.

• Mail Chimp – If you have fewer than 2,000 subscribers, you can send up to 12,000 emails per month free of charge.
• Reach Mail – If you have fewer than 5,000 subscribers, you can send up to 15,000 emails per month free of charge.
• Target Hero – Free, unlimited sending for up to 5,000 subscribers.

TIP #8. STAY FRESH: Maintain a fresh approach. Regularly update your literature, website, blogs, advertisements, brochures, etc. Design trends change frequently, and sometimes seasonally, in this flooded marketplace. You need to keep up with the latest advertising concepts that look hip and will appeal to a mass audience. If you are using a Word Press site, making changes to your background and images is easy. Check out these posts from Forbes on recent marketing trends:

• 3 Major Web Design Trends for 2014
• 2014 Marketing Trends You Probably Haven’t Heard

HVAC Customer Service Strategies

TIP #1. TAKE ADVICE FROM YOUR CUSTOMERS: The primary goal of any company is to generate and retain customers long-term. That is why customer service and follow-up are critical. Follow up after every service call to ensure the technicians’ satisfactory performance, punctuality, courteousness, etc. Ask consumers what you can do to improve their experience. This can be accomplished via:

• A simple phone call
• An email survey
  • Survey Monkey – online surveys for campaigns, events, and projects, large and small; free Basic plan with 10 questions and 100 responses per survey
  • Speed Survey – all-in-one service for those who aren’t computer experts; free trial for surveys to under 25 people
• A mailer: Consult the United States Postal Service for information on Every Door Direct Mail campaigns and pricing. Here’s a tool from their website that you can use to give you a direct mail cost estimate. For example, as of this date, a 5,000-piece mailer to businesses and residents in zip code 19406 costs approximately $870.

TIP #2. STAY ORGANIZED: Following up isn’t just about the consumer’s experience. It’s also about keeping track of customers’ purchases and maintenance needs. Keep detailed records of what equipment is due for seasonal maintenance, filter changes, tune ups, etc. Contact them in advance to schedule an appointment rather than waiting for them to call you. Maintenance contracts are a key source of revenue for your business. So don’t drop the ball. Be proactive! Here are helpful links on setting up reminders in Microsoft Outlook and Gmail calendars:

• Microsoft – Set or Remove Reminders
• Google – Customize Your Notifications

TIP #3. HAND WRITTEN NOTES MAKE AN IMPRESSION: Thank you notes have gone by the wayside over the years, in favor of the email or text thank you. This impersonal way to show gratitude will not have a lasting positive impact on your business; however, taking the time to send a hand-written thank you note certainly will. For quick, premade thank you cards, look into options from Staples, Office Depot, or Vistaprint. A more polished appearance can be achieved using a freelancer to do the work for you. Here are two great articles on how personalized thank you notes can benefit your business, along with advice on thank you note etiquette:

• Using Handwritten Thank You Notes to Distinguish Your Business
• How to Send a Professional Thank You Note

In addition to the written word, sometimes a face-to-face thank you from the business owner is in order, especially on larger jobs like a newly installed HVAC system. Thanking customers in person not only shows your deep commitment to your customers’ satisfaction, but it can also open up a channel for new business. How many times have you heard, “While you’re here, would you mind looking at…”

TIP #4. YOUR CUSTOMERS ARE YOUR FAMILY: Treat customers like family. Consumers rely on you to improve their homes’ comfort, and the health and safety of their environments. So, when you are speaking with them or walking into their front door, make pretend you are helping a close friend or family member, and show them the same level of courtesy and care you would show to someone in your inner circle. Read these interesting articles on the importance of customer service, family style:

• How Businesses Can Treat Customers Like Family Members
• Treat Customers Like Your Boss’ Family
• Treat Your Customers Like Family and They’ll Never Go Away

TIP #5. YOUR CUSTOMERS ARE YOUR BEST ADVERTISERS: Taking the concept of impeccable customer service a bit further, you need to keep in mind that your customers are your best marketers. The better you treat them, the more likely they are to recommend your company. Offer referral kickbacks or service discounts when you sign on a new customer because of a referral. Leave a printout with this information attached to your invoice, and after you leave, follow up with a hand-written thank you asking your customer to recommend your business on Facebook, Twitter, or other social media outlets. Referrals can be key revenue builders.

TIP #6. MAKE THE BUYING EXPERIENCE PERSONAL: Keep in mind that your customers are allowing strangers to come into their homes. If it were you, wouldn’t you feel more comfortable knowing a little something about the technician taking care of your HVAC issue? With that being said, personalize your website. Include pictures and bios of your staff. Here’s a good example from Veterans Green Jobs of how to highlight your techs’ experience.

TIP #7. EVERYONE LOVES A GOOD DEAL: Offer customer incentives to encourage new and repeat business. Make sure incentives are advertised on your website and literature. These could be in the form of service discounts, equipment sales, delayed or extended no interest billing, or other options. Look at this article from the EPA on program incentives for clean energy.

• Customer Incentives for Energy Efficiency Through Program Offerings

Budgets & Financial Considerations

TIP #1. DON’T BUY NEW IF YOU CAN AVOID IT: If you are just starting out, consider leasing office space, leasing trucks, and leasing or purchasing equipment second hand. It’s a quick way to save money. Check out these bid sites for discounted or second-hand equipment.

• Bid-On-Equipment – Online marketplace for dealers to list their Packaging and Processing Machinery
• eBay – Bid on heating, air conditioning, and refrigeration units.
• Greasy Machines – A wide range of reliable, affordable HVAC equipment. If the machine you need is not in stock, Greasy Machines will work to obtain it.

TIP #2. TRACK YOUR MARKETING: Keep track of your current marketing budget using a template like this one, or via a service such as Measureful (customizable, automated tracking with a 1-month free trial):

• When customers call in, ask customers where they saw your ad.
• Use a separate phone number for specific specials you are running, different mailers you send out, an ad you put in a local Clipper magazine, and so on. Specialty can give you multiple telephone numbers to attach to your account so that you can easily track sales.
• Consider using a web link for a particular deal or incentive, this way you will know exactly which ad your customers are responding to. To find out how many people clicked on your site via a specific link, you can use URL shorteners, such as:
  • https://goo.gl/ – Offers increased security over other providers.
  • https://bitly.com – Sign up for free and track performance with one click.
  • https://is.gd/ – Permanent shortened URLs, customizable from 5 to 30 characters.
• Using call-in codes on print, radio, or TV campaigns can also be beneficial for tracking interest (e.g. HVAC10 for 10% off your install or repair).

TIP #3. INSURANCE IS ESSENTIAL: Perhaps the largest expense associated with any business is insurance. Research the costs of property and liability insurance, workers’ compensation, health and disability, auto, and life insurance, and don’t forget to compare several different companies to ensure you are getting the best rate for the coverage you need. Factor these costs into your annual budget, and set aside additional funds to account for increases in insurance premiums. Listed below is a cost overview of employee health insurance from the National Association of Insurance Commissioners:

The average premium for small group health insurance was $311 per month ($3,730 per year) per employee and $814 per month ($9,770 annually) for family coverage, according to a survey conducted in 2006 by America’s Health Insurance Plans (AHIP). AHIP surveyed 21 of its member insurers that offer coverage to more than 650,000 small groups (defined as firms with 2-50 employees) that employ 4 million workers and their 3.2 million dependents. Average costs vary by state. To look up your state, go to www.ahip.org.

• Types of coverage:
• 57% of the small group coverage was for PPOs, while 39% had HMO coverage.
• Approximately 4 percent of enrollees had an HSA with a qualifying HDHP.

• Deductibles:
• For PPO plans, individual deductibles averaged $849 with annual out-of-pocket limits of $2,700 and co-payments of $21 for in-network physician visits.
• HSA plans had an average deductible of approximately $2,220 and average annual out-of-pocket limits of approximately $2,800.

TIP #4. YOUR WEBSITE IS IMPORTANT: Don’t cheap out on your website image. A good website converts more leads and it’s worth the cost. Set aside a budget of about $5,000 to $8,000 for web design. Remember to make it easy to navigate, accessible to mobile users, and update content frequently to remain on trend. It’s also important to spend a fair amount of time on SEO (search engine optimization). Here’s an informative blog with 58 resources to help you understand the basics of SEO and how to get started on making it work for your business.

• 58 Resources to Help You Learn and Master SEO

TIP #5. TAKE PAYMENT BEFORE AN EMERGENCY JOB: For emergency maintenance, take a percentage of pay upfront before dispatching a technician to a job site. Telephone answering services can usually process payments for a client. If you are handling the call yourself, services like Square Up or PayPal allow you to take payments without having a merchant account.

• Square Up – Pocket-sized credit card terminal attaches to your phone or mobile device, allowing you to accept payment, anytime, anywhere.
• PayPal – Acts as a gateway for you to accept credit card payments using a PayPal button on your website. Fully customizable for a professional, integrated solution.

TIP #6. KNOW YOUR TRAFFIC PATTERNS: The HVAC business is more cyclical than seasonal. It’s usually busy 7 months out of the year. Research your traffic. It’s important to know which months are your slow months, adjusting costs slightly to keep revenue steady and retain your employees year-round. You may want to bid for larger jobs off-season so that you will have more time to get things done without having to juggle myriad requests at peak time. During business downturns, advertise home energy upgrades such as attic and equipment insulation, duct repair/seal or replacement, heat pump replacement, general HVAC audits to find air leaks, central air and heat pump replacements to energy star models, tune ups, filter changes, programmable thermostats, etc. Train staff on energy conservation concepts, and go green. This applies to your office, too!

• Heating & Cooling from Energy.gov

TIP #7. MANAGE YOUR MONEY: Learn how to manage your money. Assess your available funds and write down what you require seasonally for equipment costs, vehicle maintenance, salary, insurance, office rental, uniforms, etc. Take inventory of what you needed/used last year, and stock your warehouse accordingly so that you don’t buy an excess of parts for any given season/year. Spend carefully and make sure you have a cash cushion to account for unexpected declines (like an unseasonably warm winter), taxes, etc. Ideally, you should have about six months of expenses stowed away, including costs such as office space rental, medical and liability insurance, salaries, supplies, etc.

• Does Your Small Business Have an Emergency Fund?
• 3 Reasons to Have a Cash Cushion

If necessary, look into lines of credit or small business loans to keep things going when the money isn’t coming in at a steady pace. Most major financial institutions, like Wells Fargo, PNC, and TD Bank offer credit lines.

• Applying for a Business Line of Credit
• Does Your Business Need a Line of Credit?

TIP #8. KNOW HOW TO BID JOBS: Don’t try to be the lowest bidder or the lowest-cost service. It will come back to bite you in the rear. If your overhead is more than your returns, then you will lose money. For example, if your prices are too low, you will not have the proper funds to pay your employees, and you will have fewer resources to help you do the best possible work. Understand your costs and plan for contingencies. The last the thing a customer wants is for you to send them a bill for “surprise” items you didn’t account for in your initial estimate. It makes you look bad, and it breaks trust. Comparative pricing to be the lowest bidder also raises suspicion as to why you are so low; in other words, are you sure you know what you’re doing? There are legitimate studies on the psychology of pricing. Here’s a post from KISSmetrics recounting five psychological studies on pricing that will make you rethink your price tier.

HVAC Training, Recognition, & Reward

TIP #1. YOUR EMPLOYEES REPRESENT YOUR COMPANY: Business owners should always model best practices and train employees to follow. For example, make time to go on new customer consultations with techs and display the type of behavior you want them to exhibit when they are on the job without you. The importance of having an employee handbook cannot be underestimated. This is a black and white way for employers to communicate with employees about policies and procedures related to their specific roles within the company. Visit this page for a good resource from the Small Business Association about what items to include in an employee handbook. Additionally, you’ll find a good example of an HVAC job description here.

TIP #2. KEEP YOUR EMPLOYEES HAPPY: Your employees are your best asset. Pay them well. Treat them well. Make them proud to work for you and be motivated to come to work every day. These three editorials talk about ways to maintain employee satisfaction and make more money in the process. Happy staff is dedicated staff!

• Make More Money by Making Your Employees Happy
• 7 Ways to Keep Your Employees Happy (and Working Really Hard)
• 5 Ways to Keep Employees Motivated

TIP #3. MAKE SURE EVERYONE KNOWS EVERYTHING: Cross-train your employees so that they can address any question with confidence. Staff can be trained on all aspects of the business including what your company offers and how your products and services can help consumers. Having adaptable employees can help maintain productivity in the event of an employee absence. This is especially important for small businesses so that you can accommodate customers’ needs even if your top furnace or solar panel guy is under the weather. Be sure that employees don’t lose sight of their primary responsibilities, and let them know that they aren’t responsible for pinch hitting on a daily basis – but rather only as the need presents itself. When it comes to employee education, try to envision every possible scenario, write out FAQs for your techs to review, and then test them on what they know. Having well-trained employees leads to satisfied customers and better overall company morale.

• How Cross-Training Can Benefit Your Team
• How (and Why) to Cross-Train Employees
• The Importance of Cross-Training in Improving Team Performance

TIP #4. SAFETY FIRST: Ensure proper safety training for your employees. Your staff will need a comprehensive understanding of workplace hazards, equipment or chemical hazards, what to do in the event of an emergency, etc. Just as we did when we were kids, run fire drills, earthquake drills, or whatever particular dangers may relate to your place of business. Large posters illustrating safety procedures should be posted by building exits, reminding employees of proper conduct each time they leave for a job site. You could even institute a bonus for the number of days your employees go without injury. The U.S. Department of Labor Occupational Safety and Health Administration is an essential training resource. In addition, consider requiring that all employees obtain certifications in First Aid, CPR (cardiopulmonary resuscitation), and the operation of an AED (automated external defibrillator), and make sure safety equipment is easily accessible to all staff members. The American Red Cross offers courses in your area, taken together for around $100.

Administrative Tasks & HVAC Scheduling Software Options

TIP #1. USE ON-DEMAND VIRTUAL ASSISTANTS: When things get busy, it’s easy to make mistakes. Ensure that your office is properly organized and that you have the appropriate staff for scheduling, accounts receivable, accounts payable, benefits, insurance, code enforcement, etc. Specialty offers live-operator shared outsourcing for scheduling, and has a dedicated agent program for organizations requiring service that is more comprehensive.

TIP #2. PREPARE, PREPARE, PREPARE: Work backwards. If you know January is your busiest winter month, then start preparing for what you will need several weeks in advance. Have your extra staff lined up, have parts ordered, vehicles serviced, etc. If you wait until the last minute, you may run the risk of not being able to get what you need in time (kind of like people who wait until the day of the snowstorm to buy rock salt), or have to pay an arm and a leg for it. Save yourself the stress that procrastination inevitably brings. Plan, plan, plan!

TIP #3. FOCUS ON SPEED & CUSTOMER SERVICE: The more time you spend at a job site, the fewer service calls you can attend to, and that means a decrease in daily revenue. So, focus on fast service. Before your staff heads to the next job, encourage them to map out a plan for what they need to accomplish, and budget time accordingly. Institute this as a part of new hire training. Have employees record their time at each location, then track and analyze that data each month. You can even offer incentives for completing work correctly and within a specific timeframe. Efficient employees can help you to reduce payroll costs and increase your profit margins, and most importantly, enhance customer satisfaction.

• 5 Simple Ways to Improve Employee Utilization & Productivity
• The Complete Guide to Improving Employee Productivity

TIP #4. USE CALL CENTERS FOR 24/7 REVENUE: Use a call center for 24/7 monitoring so that you will never miss an emergency call again. Call centers like Specialty can also provide calendar management and dispatching services, and you will receive schedule updates via phone, text, or email. Here are some ways in which HVAC companies have utilized our call center:

• Appointment Services – Appointment scheduling and reminder service using a shared Google Calendar.
• Lead Capture – Calls answered 24/7, and information provided to prospective customers based on your FAQs.
• Call Routing – No matter where you are, you’ll never miss a call. Calls can be patched to your office, on-call staff, or anywhere you wish.

Goal Setting & Collaboration

TIP #1. ESTABLISH REALISTIC GOALS: Have a specific list of benchmarks that you aim to meet each week, month, season, year, etc. Establish a profit margin to aim for, and keep track of your goal attainment using software such as QuickBooks, Excel (try this) or other means at your disposal. If you have never considered using benchmarks as a means to measure your business’ success, here’s a useful resource to help you get started:

• HVAC Performance Benchmarks

TIP #2. A NICHE SERVICE SELLS LOOKS MORE ATTRACTIVE: Find your niche. If you are a smaller business or just starting out, maybe it would be better to focus on either residential or commercial, but not both. Assess your strengths and decide on a plan of action. Have you done your share of networking in the corporate world? Do you live in an area that is business heavy? Or do you already have a strong following of local homeowners and referrals? Before you make a decision, do your homework. And if you have the volume of staff and experience to handle both commercial and residential bidding simultaneously, then go for it! Speaking of bidding, here are two sites where you can sign up to bid on projects in your area:

• FedBizOpps.gov – Search thousands of active federal opportunities.
• National Contractors – Free registration for product leads.

TIP #3. PARTNER WITH LOCAL CONTRACTORS: Consider a partnership with local construction firms or building contractors. If they use your company as their preferred HVAC vendor, that could lead to big bucks. Visit the Better Business Bureau to find accredited building contractors in your area, check out MacRae’s Blue Book, the Yellow Pages, or use your local Chamber of Commerce as a resource.

Demographics & HVAC Market Research

TIP #1. KNOW YOUR COMPETITION: Study your competition so that you can determine what advantages you can offer over their business. You can even place test calls to see how they are answering the phone (listen to a sample HVAC call from Specialty under “Resources”). Many contractors use answering services after hours, so you can compare how their offices answer calls during the day with how their services answer calls in the evenings. And if you want even more intel on your competition, try these three websites for information on how much they are spending per month on pay-per-click advertisements.

• www.SpyFu.com – search for domains, ad words, etc. over the last 6 years; free trial
• www.iSpionage.com – keyword and domain research, SEO and PPC keyword monitor; no free trial, but 30-day money back guarantee
• www.SEMrush.com – top-rated keyword research, business intelligence, and online competitor analysis software; offers limited free subscription and three recurring payment plans

TIP #2. KNOW WHO IS BUYING YOUR SERVICE: Know your target audience. For example, upper middle class customers have more disposable income. More women use and understand social media than men. Additionally, women are more likely to contact you to have their house retrofitted to maintain a comfortable home environment. Align your target audience with your marketing methods. The first resource below on market segmentation may be of interest, and the second article on the importance of age cohorts will give you a more in-depth look at why market segmentation is so important.

• Market Segmentation – A review of segmentation types and common mistakes.
• Market Segmentation: the Importance of Age Cohorts – Examines age cohorts as a specific segmentation variable used in marketing.

Also, consider targeting homes that were built between the 60s and 90s. They usually have the proper setup already in place, and will take less labor/hours to complete jobs. Smaller homes are less expensive to upgrade, and they have fewer surprises that could impede technicians’ work.

Credentialing & Continuing Education

TIP #1. STAY INVOLVED IN YOUR INDUSTRY: Know your industry. Go to trade shows, take part in manufacturer training for new equipment you will be purchasing or using, make continuing education mandatory for your employees so that you are all knowledgeable and on the same page. In many cases, this can be done off-season so that you can maximize revenue during peak times. Networking with other HVAC professionals is a good way to broaden your scope of work and get to know industry leaders’ tips and tricks. Check out these sites for more information on associations, conferences, and industry-specific education.

• ACCA Association, Inc.
• Air Conditioning, Heating & Refrigerating Exposition
• Plumbing, Heating, Cooling Contractors’ Association

TIP #2. MAKE SURE YOU ARE LEGAL: Ensure that both you and your staff are properly licensed, and that you have the necessary permits to operate a business. Visit this site for licensing information listed by state:

• National Contractors

A number of companies also offer certification preparation courses, such as:

• HVAC Training Solutions – 19 training modules, varying in course length, and ranging in price from $150 to $1,185.
• Education To Go – 320 hours of training for $3,095. Online training has 16 sections, with a subscription length of 60 days per section. Each section contains 6 modules, incorporating reading assignments, web site tours, applied exercises, quizzes, industry terminology definitions, video clips, animations, images, and printable handouts.
• American Trainco – Courses range in price from $495 to $1,980. Air conditioning and refrigeration course includes the certification test for EPA section 608 at no extra charge to HVAC students.

Once you have obtained the appropriate credentials, list them on your website, business cards, advertisements, etc. Contact the Better Business Bureau about becoming an accredited member. Join the ACCA. Professional licenses and certifications make your business a more trustworthy option for consumers.

TIP #3. CODES ARE ALWAYS CHANGING: Do your research. Stay up-to-date on the latest local and national codes/guidelines that govern your business. Being part of an association makes this easy, and you can consult the United States Environmental Protection Agency for additional information.

• Air & Radiation – info about pollutants, indoor air quality, regulations, statues and more
• Construction Sector – for establishments primarily engaged in the construction of buildings or engineering projects
• Health & Safety – info on the environmental hazards that can threaten our health in our everyday lives

TIP #4. INDUSTRY MAGAZINES ARE YOUR FRIENDS: The U.S. Department of Labor and Statistics expects a 34% increase in HVAC mechanics from 2010 to 2020, so you will grow if you have the right setup. Subscribe to industry magazines and resources, and stay informed about the latest consumer trends and statistics. Take a few minutes to look over these and other HVAC trade publications:

• HVACR Business – Free subscription, available in print or digital format.
• HVAC & Refrigeration Insider – Free subscription, quarterly national edition in print format.
• Air Conditioning, Heating & Refrigeration News – Subscriptions available in print and digital formats, 1 to 3 year terms. Starting at $15 for digital only.

After reading through this comprehensive list, it might be overwhelming to see just how many factors there are to consider as you get your business off the ground. It’s a lot to learn, and it will take considerable time and consistent dedication. While there is no secret formula to guarantee that your business will be successful, following these guidelines is about as close as you can come to ensuring profitability and continued growth. You know the saying – “Slow and steady wins the race.” It’s darn good advice, and it’s an important reminder that rushing through your business plan and cutting corners will put you on the fast track to disappointment. Another one of our favorites is, “Rome wasn’t built in a day,” and your business won’t be, either. So take your time. Success is a result of hard work and careful preparation. Be patient and trust the process. It works!

The post The ultimate HVAC business plan. [Updated] appeared first on Specialty Answering Service.

Employees yearn to be acknowledged for their particular talents. Here are 7 tips on how to increase employee engagement by exposing their strengths.

1. Recognize that everyone is good at something. Reindeer fly. Elves build toys. Mrs. Claus bakes. Hermey makes a better dentist than an elf, and it’s a good thing, too, or the Abominable Snowman would have remained abominable.
2. Trust in your employees’ abilities. Santa didn’t tell the reindeer how to fly, and he didn’t tell the elves how to make Jack in the Boxes or Hobby Horses. He just asked them to, and trusted in their ability to do so. Give employees a bit of guidance, mentor them, and inspire them to achieve more than they thought possible. Then let them run with it.
3. Everyone wants validation and respect. Empower staff like Santa empowered Dasher, Dancer, Prancer, Vixen, Comet, Cupid, Donner, and Blitzen. When people, or in this case, livestock, know they are valued, they’ll work harder and be loyal for years to come.
4. Focus on strengths, not weaknesses. Instead of Santa saying, “You’re just too small for this job,” he took one look that homing beacon and asked, “Rudolph with your nose so bright, won’t you guide my sleight tonight?”
5. Be a strong leader. Part of strength is admitting weaknesses. Even if Santa was a North Pole NAS-SLEIGH championship driver, he knew he couldn’t navigate that nasty Christmas Eve weather. He would have thrown in the towel if not for Rudolph. So, be a confident leader for both your good and bad points. That way, employees will see how much they have to offer you.
6. Talk about it. Ask employees what they believe they are best at. Focus on departmental as well as individual goals. Motivate staff to put ideas into action, and cultivate an environment that breeds success. Elves who have a daily opportunity to do what they love and do best will be more productive.
7. Learn new things, but don’t try to “fix” everyone. Spending time concentrating on strengths is of greater benefit than spending the same amount of time trying to perfect something that isn’t your strong suit. To our knowledge, Santa has never held a workshop on how to make your nose glow.

Employees who are engaged and use their strengths the majority of the day report less worry, stress, anger and sadness, fewer sick days, and a lower rate of chronic disease, which means less health-related costs for employers!

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Agent management applications are frequently used in call centers as a means to improve call center metrics. By tracking agents’ performance, creating staffing models, and improving customer satisfaction, management software can increase overall productivity in your contact center while ensuring optimal customer care in every transaction. Monitoring call reporting, call recording, and screen capture allows supervisors to find out how many calls agents are taking, how long they spend on each call, how many minutes they are idle, etc. and can be used to check in on agents who work from home in virtual call centers.

Agent management software can keep you on track and even give you a head’s up on ways that you can improve performance. Want to know more? Dig deeper into workforce management software here!

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Sounds a bit extreme, doesn’t it? Well it’s not; a recent Forbes article stated that, “seventy percent of your employees hate their jobs.” What’s more, according to the University of Cambridge, work-related stress can lead to raised blood pressure and cardiovascular disease and may even contribute to substance abuse. That’s right. Not only do your employees hate their jobs, but it’s also killing them.

Sounds like employee morale could use a boost. Here’s a list of 15 ways to boost morale at work, keep attrition rates at a minimum, and keep your company’s success on an upswing 365 days a year.

#1. Look into employee discount programs.

Ever hear of Corporate Perks? It’s a national employee savings portal that allows small and medium-sized business to qualify for corporate rates and discounts. By leveraging the purchasing power of your employees, you can save on almost everything you want to buy. You might receive discounts on such things as travel, electronics, services, retailers, restaurants, mobile phones and more. A similar albeit smaller version is Great Work Perks, a Los Angeles-based free employee benefits program that offers local discounts on restaurants, spas, amusement parks, sports, etc. Find out what perks are available in your area.

#2. Team building exercises build strong teams.

Encourage peer-to-peer bonding, and help reduce conflict in the workplace. Think non-traditional team building events such as paintball, flag football, entering a corporate softball league, team bowling, group trivia night, obstacle course races like Warrior Dash and the Tough Mudder – you get the idea. You could even reward the winning team with a little convenience like being able to dress in casual attire for a week.

#3. Don’t underestimate the importance of a well-stocked break room.

A comfortable, clean break room or employee lounge with a well-stocked snack area will give your staff a place to unwind for a few minutes without having to leave the premises for that coffee shop down the road. Research has shown that on-site break environments make a difference in overall employee health and happiness and are key to boosting morale at work. Opt for healthy snacks, cushy furniture, and soft lighting, and watch employees flock to that area like moths to a flame.

#4. Break time should be mandatory.

Think break time isn’t that important? Think again. According to research from the University of Toronto, eating lunch at your desk without walking away from the workstation to recharge your batteries can have a significant impact on stress-related absenteeism, reduced productivity, and increased medical costs. So, make “coffee breaks” essential. Two 15-minute breaks a day will give your employees time to clear their minds and keep energy flowing. No room for a “nap pod” like Google has? Some companies might consider having a daily stretch around 2pm, just about the time that our evolutionary history tells our bodies to nap. Wake up those muscles, take some deep breaths, and catch your second wind.

#5. Celebrate employees’ achievements.

Your finance department has just completed a massive audit. Profits have steadily increased over the past several months. Sales exceeded their quota from last month. Find reasons to celebrate your employees, and show them how lucky you are to have them. Why not make mealtime on the company a regular occurrence, like catered breakfast the first Monday of every month, pizza party Fridays, or an impromptu afternoon dessert buffet or sundae bar. Food is fun! But if that’s not your thing, here’s a list from Johns Hopkins University’s human resources department of 101 Ways to Celebrate People.

#6. Comfort is key.

According to furniture manufacturer, Herman Miller, “…having some control over the workspace can improve comfort and the ability to get work done and reduce stress. This, in turn, can lead to greater productivity and better health.” Physical comfort can contribute to psychological comfort, affecting mood, cognitive function, and feelings of loyalty and commitment to one’s employer. In other words, pay attention to the comfort of the workspace you provide for employees. Is the paint color soothing? Are the chairs comfortable? Is there good natural light, office plants, and clean air? If you aren’t sure how to create comfort on your own, enlist the services of a design firm. It’ll do your business a world of good.

#7. Acknowledge special occasions.

Which would you rather have: a workplace that feels as disconnected as a cell phone with no reception, or a workplace that functions like one big happy family? Connecting with staff outside of your professional roles brings people closer, and the closer and happier your employees, the stronger their work ethic. So make it a point to include birthdays, anniversaries, new employee welcome events, cakes, cards, plaques, etc. you’re your regular routine. Your staff will appreciate it, and you’ll appreciate how much harder they’ll work for you when they know you care.

#8. Encourage free-flowing ideas.

Want to know the fastest way to find out what your employees think of the workplace and how they would improve it? Ask them. Monthly brainstorming sessions will poll staff’s ideas on what works and what doesn’t, along with suggestions on how to bring in more business and improve the company’s overall performance. Who knows the company better than the people who are doing the nitty-gritty work? Giving them an opportunity to express their concerns and opinions shows them they are a trusted part of the organization, and allows them to have a direct impact on your company’s success while boosting employee morale. Be a willing listener, and make sure they know your door is wide open.

#9. Show them the money.

Nothing boosts employee morale better than a bonus check. While you may not be able to give sizable sums of money across the board, there’s always room in the budget for a little “thanks for all you do” gift. So next year when holiday time rolls around, instead of throwing a corporate party that many employees find tedious, give them some bucks to spend on whatever their heart desires, or save for next summer’s vacation. It may take a minor chunk out of your operating expenses, but the returns will be worth it.

#10. Get involved in charitable causes.

Doing good works for others is a great feeling. Ask your employees to choose a different cause or charity every year and then make it your mission to volunteer your time and raise funds with a company match. Think walk-a-thons, dance-a-thons, charity runs, proceeds from Alex’s Lemonade Stand, fundraising for a local children’s hospital, volunteering with the Special Olympics or Habitat for Humanity, etc. Then, reward your staff for participating. Everyone involved gets four extra hours of vacation time, movie passes, a gift card for lunch at a local eatery – just something simple to show appreciation for your employees’ making the world a better place.

#11. Build trust.

Sounds easy, right? Well apparently, it’s not. According to Psychology Today, there’s a trust deficit in the workplace. So how can leaders cultivate a strong sense of interpersonal trust? They can keep their word, speak positively about employees and the office in general, demonstrate a strong work ethic, see the bigger picture and put smaller crises into perspective, listen to their staff, and be passionate about the company’s mission. If management doesn’t present a positive, supportive, can-do attitude, employees won’t, either. Positivity begets positivity, and great leaders are honest, clear, and treat people well consistently.

#12. Say thank you.

If employees don’t feel that their contributions are valued, what motivation will they have to do their best? The Times of India says that, “Being thanked for doing good work makes it easier to do more good work, increases the employee’s likelihood of continuing to work for the organization, and serves as a catalyst for attracting additional employees to the company.” Be sure to say thank you for a job well done. Write personalized thank you cards. When one employee does something amazing for the department, reward the entire department to reinforce teamwork. Send out email newsletters recognizing a different employee each month. Everyone has strengths, so take note of the way your employees shine, and then shout it from the rooftops for all to hear.

#13. Prevent boredom on the job.

Consider this: people care if you take an interest in their future. They like to learn. They want to improve their skills, and maybe even have the opportunity to test the waters working for another department for a while. Stimulating your employees’ interest in their jobs and giving them opportunities for growth can keep them engaged and maintain a higher level of productivity. It may not be possible to promote everyone, but try rotating them through different roles that will accentuate their strengths and help them grow beyond their current positions, even if the move is only lateral. It will keep them interested in their jobs, and the boost in employee morale will contribute to employee retention in the long run.

#14. Have a ball.

Sure, some employees may find corporate functions tedious (see #9). But some employees love getting together with their colleagues! Throw a winter holiday extravaganza. Have a costume party at Halloween with prizes for the best dressed. Take the gang to your local sports teams’ season openers. Host a summer kickoff barbeque. Go to the museum. Bust out the projector, and have movies running on loop in the conference room all day so that employees can relax on break and chow down on some popcorn and candy. The possibilities are endless, and the fun might just be endless, too!

#15. Lunch and learn.

Employees may spend forty hours a week on the job, but at the end of the day, they’re regular people with lives and families outside of the workplace. They have interests, hobbies, areas where they excel, and areas where they could use a bit of assistance. Think about what subjects may be of interest to your employees outside of work. For that matter, think about what you’d like to learn if you had the time. Do you need information on financial planning, how to care for aging parents, college tuition/financial aid for your kids, computer skills training, an overview of the Twitterverse and the overwhelming world of social media? Ask your staff what they want to know, and bring in a new speaker every month or several times a year on topics that they’ll love. An hour or two that enables your employees to relax and take their minds off work for a little while is an hour or two well spent.

When you weren’t running the company, what kind of boss did you hope you’d have? What did your employer offer that made you want to come to work every day, and what things made you want to run screaming in the other direction? Be the kind of boss you always wished you had, and your employees will reward you with continuous hard work and dedication. There are innumerable ways to boost morale at work, and you’d be remiss if you didn’t take the time to research the things that will have your employees smiling day in and day out.

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My IT admin is a wonderful man. He’s a kind man, he’s a patient man, but most times I interact with this man, I am screaming. I like to tell myself, and later HR, that I am screaming at the situation and that it’s the situation that I’m frustrated with, but it’s getting harder to convince even myself of this.

You make the Internet go, you make it go NOW!

 

It’s no wonder, then, that a recent study published by GFI Software and Opinion Matters shows 79 percent of IT administrators want to quit their jobs due to work-related stress. This is a 22 percent increase from the 2013 survey, where 57 percent of IT admin reported wanting to leave their jobs. Here are the important takeaways:

• 38% of IT staff missed social functions due to work
• 35% report missing out on family time due to work demands on their personal life
• 25% of respondents said they’ve had a relationship ruined due to their job
• 23% of respondents say they work between 8 and 12 hours of unpaid overtime each week
• 30% of respondents say they regularly lose sleep because of work pressures
• 25% have suffered stress-related illnesses
• 17% have poor physical health due to work.

There’s nothing like having your entire tech team want to burn the building down.

So, this is bad, mmmmkay. As a small business owner, you know how integral your IT staff is to the effective management of your company. Information technology in business management is an already huge and ever growing concern. If these people want to quit their job, they have no loyalty to you, they have no loyalty to their co-workers, and they have no loyalty to your customers. Everybody loses, and everybody is unhappy.

This has to change, and it has to change fast. The very life of your small business depends on it. So how do you do it?

Realistic staffing and budgeting.

IT is important. Don’t skimp on it. If you’re expecting to have one person manage all of the technology issues of your business, then make sure that one person is realistically capable of it. Talk to experts; ask them what kind of staff you need to keep information technology costs low and make sure your business is up and running. If you overwork too few people, you can expect a poor quality of work.

Remember, it’s better to make an investment in the future of your company, then to spend time and money fixing problems that could have been avoided. A larger staff means more support and better relationships for all of your employees, not just your IT admins.

• Building the Team: Determine how many IT staffers you need to effectively run your company. Information technology staffing ratios are usually about 1:50;  a good general starting point but that varies widely based on software used, technical abilities of the staff, demands of each department, etc.
• Investing in Human Capital: Invest in an IT team early; it saves money in the long term. An expert can implement policies in proportion to the projected growth of the company. Way better than temporary IT staffing with no future forecast.
• Bigger is Better: More IT members means more support for your entire company. And who doesn’t like support!

Automated services and outsourcing.

It’s true that your IT staff is of tremendous value to your organization, so free them up for the big stuff by automating or outsourcing mundane tasks. When you need to deploy new software, or help a client with a basic work-around, consider asking your IT team to make a checklist of support items that other customer service representatives can take care of. Outsource the work to an answering service that provides technological support.

Consider automating services like Wi-Fi fixes and mobile device network functionality. Again, asking your IT team to make a program once is a much more efficient use of their time (and yours) than having them take care of issues that arise over and over again.

• Check Marks the Spot: Create a checklist for basic IT support that customer service can handle. Ask your IT staff to help create and participate in a training program.
• Let it Go: Distribute the workload to an IT helpdesk outsourcing call center or a similar BPO type service.
• Auto-Mation is Auto-Mazing: Automate basic fixes so your IT team can focus on bigger issues. Test out self service help desk portals and figure out ways to have people try to solve their own problems.
• Use Forums: Forums are a great way to encourage self service. Take a look at Google Product Forums to see how forums perform.

Moving forward.

Your IT team is important. Love them and they will love you back. Give them a realistic workload, and outsource or automate their more mundane tasks. No small business is going to succeed where 79 percent of their staff wants to quit. Make a change today that can better the lives of your employees and better the prospects of your business.

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I don’t know what they want from me. It’s like the more money we come across, the more problems we see.

Biggie Smalls Mo Money, Mo Problems

As it turns out, the legendary rapper was also a font of business management knowledge. The idea is certainly counter-intuitive, but Biggy was onto something when he suggested that money is not always the answer.

Imagine this situation: your boss has just promoted you, given you a raise, and increased your responsibilities. Things are looking up; however, as soon as you get back to your desk, there’s an email from him. He wants to see every draft of the proposal you are working on. Nonetheless, he hasn’t given you any guidelines for what he’d like to see. Within twenty minutes, he’s at your desk, pestering you to see if you’ve made any progress. When you get a second to breathe, you forward him your latest draft. It’s returned within minutes. It’s been edited so extensively, you can barely recognize it as your own work. Is this kind of micromanagement really justified by an increase in pay?

To put it simply, no it’s not. Scientists have recently conducted a slew of social experiments that show people actually perform worse on complex tasks when their performance is incentivized.

So, if money’s not the answer, and neither is the risk of punishment, then how do we get our employees to be more creative, more productive, and more eager to come to work? Fortunately, those same scientists who discovered the problems in our current management system also seem to have found a solution. It’s all about two factors: Autonomy and Mastery.

Autonomy

The first step to improving employee performance is to turn over the reins. Has there ever been a time in your life when you wish your boss would just trust you a little more? A time where you wish your boss would just try one of your suggestions? When you tell your employees what to do, and you micro-manage them every step of the way, you are limiting their creativity and their productivity. Even more importantly, you’re stressing them out.

Listen to your employees’ suggestions. Let them design their own system for getting the job done. Give them some free time to work on whatever they want to, as long as it betters the business in some way. When you trust your employees, they trust you. They will be more excited about walking in that door every day, and they will be more willing to do what you ask of them on those occasions when you do need to be more direct.

Mastery

Think about the number of your employees who like to do something thought provoking in their off hours. Maybe they play a musical instrument, run marathons, or fix up old cars. Why would they spend their discretionary time doing something that is difficult? The answer to this question reveals one of our fundamental desires as human beings: we like to be challenged, and we like to measure our progress against these challenges.

In the workplace, this means giving your employees stimulating tasks (maybe even a task that you’re not sure they are capable of completing) and offering valuable feedback on their performance. It’s not enough to simply give someone who works for you a difficult job; you have to let them know how they did on that job so they can improve on the next go-round.

Just like your Mage in World of Warcraft, your employees will keep trying to earn that valuable XP so they can level up in the RL.

In summary, employees only respond to incentives for the most menial of tasks. If you want their performance to increase in more dynamic ways, you need to increase their autonomy and give them a way to measure their mastery. When you do this, your entire company will benefit and your profits will increase. Then, you’ll really be able to pay them the big bucks for their outstanding work.

TL;DR – More autonomy and challenges = improved performance in the work place.

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