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White Paper: Reaching the HVAC Business Promised Land! By Ruth King

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In the Beginning… Below $600,000 in revenue. In this early stage, the owner can manage the business "in their head," handling all phases of their operation with minimal help in the office or in the field. Once the company grows above $600,000, however, DIY business management becomes much more difficult. To make things even scarier, as the company approaches and breaks through the top revenues in this stage, the owner may begin to realize they are not making as much money as they did when the business was smaller. This is when a business owner may long for the "good old days." However, it's important to remain focused on growth, because the Promised Land still lies ahead! Escape from No Man's Land Above $800,000 in revenue. This is the part of the growth cycle I call "No Man's Land" – In which the overhead and people necessary to operate the business cannot be justified because they put such a large strain on profits. This can be a real "gut check" time for the business owner. The days of running the business alone are in the distant past. He needs sales people, senior service technicians, dispatchers, inventory control, and others to help handle day-to-day operations. Making the Choice to Grow Above $1,000,000 in revenue. There's only one way to get out of No Man's Land – you have to grow your way out. Once revenue begins to exceed $1,000,000, the company will start making more profits again. That's because, at this level, overhead remains about the same while the sales volume increases 50% to 75%. There are a lot of issues to deal with at this stage, but they are mainly focused on getting and keeping customers and employees. Most importantly, the owner has to learn to manage and operate a business rather than just fix things. He has to learn to use his head as well as his hands to be profitable. Continued > Reaching the HVAC Business Promised Land! The road to a large, profitable business passes through many stages. Each stage presents both advantages and pitfalls. In this eBook, licensed contractor Ruth King offers insights to help HVAC/R business owners prepare for, and navigate through, revenue plateaus and succeed one stage at a time. Revenue levels are based on Ruth's experience and may vary based on geography, type of business, products/services offered and more. Also, for convenience and simplicity, business owners are referred to as "he", however Ruth (of all people) is well aware that many successful HVAC/R contractors are women. Your roadmap to a multi-million dollar company By Ruth King The HVAC business is forecasted to grow at a rate of 6.62% a year through 2021.¹

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