HVAC Business Plan (ClimateCraft Heating & Air, LLC)

Executive Summary

ClimateCraft Heating & Air, LLC is a local HVAC company in Nashville, Tennessee. We fix, replace, and maintain heating and cooling systems for homes and small businesses.

Jason and Erin Morales, a husband-and-wife team, run the business. Jason has more than 15 years of experience working with HVAC, and Erin takes care of the money, payroll, and getting customers. They both work hard to give quick, straight-up, and helpful service to people in Nashville.

Market Opportunity

Nashville keeps growing, and many older homes still have HVAC systems that are 11–15 years old, which means they’re nearing replacement age. That keeps demand strong for repairs and new installations. The HVAC business in Tennessee is worth about $3 billion in 2025 and keeps getting bigger. ClimateCraft works with homeowners who make decent money, small offices, and people who manage properties and want good service, clear prices, and someone who shows up fast.

Target Market

ClimateCraft mostly helps:

• Homeowners aged 30–65 making over $70,000 a year in Bellevue, Brentwood, and Franklin.
• Landlords and people managing small commercial buildings under 10,000 sq. ft.
• Real estate agents and home warranty companies are looking for HVAC people they can trust.

These customers want someone fast, upfront about costs, and local—that’s exactly what we do.

Ownership & Management

Jason Morales owns 70% of the business, and Erin Morales owns 30% of the business. Jason is a licensed HVAC tech with 15 years doing this work. He’s NATE-certified and has an EPA 608 license. Erin got her MBA from Belmont University and knows her way around money. She runs the everyday stuff, keeps the books, and handles getting customers.

Mission and Vision

• Mission: To give Nashville homeowners and small businesses heating and cooling services they can count on, backed by guys who know what they’re doing, the right tools, and really good customer service.
• Vision: To be one of Nashville’s most trusted HVAC companies, the kind of people think of when they want honest work and someone who cares.

Financial Outlook

ClimateCraft expects steady growth in the first three years:

We should stop losing money by the middle of Year 2, with good cash coming in from maintenance contracts and people who keep calling us back.

Funding Requirements

ClimateCraft needs a $375,000 SBA 7(a) loan from FirstBank Nashville and $90,000 from the owners. The money will buy service vans, tools, and equipment, get the office and computer stuff running, pay for ads, and cover workers and early bills. This money will help us start right, find customers quickly, and make a good name in the Nashville HVAC business.

Company Overview

ClimateCraft Heating & Air is based at 814 Ridgefield Drive, Suite 106, Bellevue, Nashville, TN 37221, and is set up as a Tennessee Limited Liability Company (LLC). The Bellevue area has a mix of single-family homes, new apartments, and small offices, making it perfect to serve both homes and small businesses with heating and cooling services.

The LLC structure provides liability protection for ownership, pass-through taxation, and operational flexibility suitable for a growing service business. The company has secured all required state and local licenses for mechanical contracting.

The company is owned by Jason Morales, who has 70% of the business. Jason is the founder and lead HVAC technician with over 15 years of experience in both residential and small commercial systems. He is NATE-certified and EPA 608 licensed, and is known for fast, honest service.

Jason has managed crews of up to eight technicians, achieving an average installation cycle time of 6.5 hours per system. His responsibilities include:

• Daily field operations and quality control
• Staff supervision and job-site training
• Inventory and vendor coordination
• Customer satisfaction audits
• Warranty and compliance documentation

Jason will also lead all major system installations during the company’s first year to ensure brand consistency and technician development.

The rest 30% is owned by Jason’s wife, Erin Morales. Erin holds an MBA in Business Management from Belmont University and has seven years of experience in business administration for service-sector companies. Before co-founding ClimateCraft, she worked at ServiceOne Home Solutions, where she managed financial reporting, payroll, and helped install a new CRM system used by over 50 employees.

Her expertise in financial forecasting, CRM implementation, and marketing analytics will drive ClimateCraft’s administrative efficiency. She is responsible for:

• Bookkeeping and SBA reporting through QuickBooks Online
• Payroll and benefits administration
• Vendor payments and inventory purchasing
• Customer communication systems and review management
• Marketing campaign coordination and budget allocation

Erin’s role also includes liaison responsibilities with FirstBank Nashville, providing quarterly financial updates and documentation as required by SBA loan compliance standards.

ClimateCraft’s internal culture is founded on four core principles that differentiate it from large chain competitors:

• Transparency: No hidden fees, clear communication at every service step.

• Responsiveness: Same-day dispatch model for all calls logged before 3 PM.

• Accountability: Performance tracking through technology, with job photos and completion logs for each customer.

• Community focus: Prioritizing local hiring, bilingual service support, and partnerships with schools and nonprofit organizations for HVAC training initiatives.

These values shape hiring, service standards, and customer retention strategies, supporting a strong reputation and long-term lender confidence.

ClimateCraft’s business goals include:

• Finish 700 residential service calls and 20 system installs in Year 1.
• Work with 3 property management companies by Year 2.
• Launch a maintenance plan program with 400+ recurring members by Year 3.
• Reach profitability of $80,000 by Year 2.

We’ve also set a timeline of key milestones to help ClimateCraft grow and stay on track with our goals, like service calls, maintenance programs, and local partnerships:

Market Research

The heating and cooling business is growing fast everywhere. People want homes and offices that stay comfortable all year and don’t waste energy. That simple need keeps the HVAC industry busy, from big cities overseas to small towns in Tennessee.

In 2024, the global HVAC market was worth about $241.52 billion. By 2033, it’s expected to reach about $445.73 billion.

Many homes and offices need new heating and cooling systems because old ones wear out. People want units that save energy, lower bills, and keep the air clean. Smart thermostats and efficient systems are becoming the normal choice.

United States Market

In the U.S., the HVAC service market is solid and keeps growing. It’s valued at about $28.2 billion in 2025 and may reach $38.8 billion by 2030.

Every year, more homes are built, and older systems need repairs. New energy rules and higher awareness about air quality also add to the demand. HVAC work is steady because people need heating in the winter and cooling in the summer. It never stops.

Tennessee Market

Here in Tennessee, the HVAC business is worth about $3 billion in 2025, as mentioned earlier. The state’s hot, humid summers and cool winters make HVAC service a year-round need.

As new neighborhoods go up and more people move in, local companies see strong growth. The ones that focus on good service and fair prices do especially well.

Nashville Market

The Nashville–Davidson–Murfreesboro–Franklin area has a population of 2,150,553. It’s one of the fastest-growing regions in the Southeast.

The average household income in Nashville is around $75,197, so most families can afford proper HVAC care.

Market Trends

1. Smart HVAC integration

Consumer demand for app-based comfort control is rising sharply. Many HVAC replacements in Tennessee now include smart thermostat integration. ClimateCraft’s team is fully certified in Nest Pro, Ecobee, and Trane digital thermostat systems, capturing this high-margin segment.

2. Preventive maintenance shift

Homeowners are transitioning from reactive repair to proactive maintenance. Subscription-based maintenance plans are growing nationwide. ClimateCraft’s $25/month membership plan mirrors this shift, generating predictable cash flow.

3. Sustainability & energy efficiency

Federal incentives through the Inflation Reduction Act (IRA) and Tennessee Valley Authority (TVA) rebates are increasing the adoption of high-efficiency HVAC systems. Rebates of up to $2,000 per household encourage upgrades, supporting ClimateCraft’s installation revenue line.

4. Labor-constrained industry

With technician shortages nationwide, companies emphasizing training and technology outperform peers. ClimateCraft leverages automation (FieldEdge CRM) and technician efficiency tracking to offset labor constraints while maintaining superior service levels.

Target Market Segments

We serve different types of customers to make sure everyone gets the right HVAC service. Here’s a simple breakdown:

This segmentation strategy allows ClimateCraft to diversify revenue beyond reactive service calls and develop recurring income streams from contract-based customers.

Key Competitors

ClimateCraft operates in a competitive Nashville HVAC market. Here’s a list of the major players:

(A) Hiller Plumbing, Heating, Cooling & Electrical

Hiller is a large regional company that does a lot of home HVAC installs and repairs. They hold about 30% of the local market. They are well-known but often have long wait times and less personal service because of their size.

(B) Donelson Air Service Experts

This is a national HVAC company that operates in many cities, including Nashville. They cover around 20% of the market. They offer a full range of services, but sometimes have unclear pricing and less local focus.

(C) Temp Control LLC

Temp Control is a local company with about 15 technicians, handling mid-size residential jobs. They have roughly 10% of the market. They provide friendly local service but don’t offer 24/7 support or bilingual help.

Together, these three companies hold around 60% of the market.

Competitive Advantages

ClimateCraft Heating & Air enters the market as an owner-led company with seven technicians. Our advantages include:

• Real-time transparency: MeasureQuick diagnostics provide customers with digital health reports for every system serviced.
• Owner-led credibility: Jason Morales personally oversees quality and installation standards.
• Faster response: Smaller team = flexible scheduling; 24/7 coverage ensures same-day dispatch.
• Localized focus: Bilingual customer support and neighborhood-based marketing outperform regional competitors’ generic service models.
• Flat-rate pricing: Eliminates confusion and builds trust among homeowners.

Services & Pricing Model

ClimateCraft Heating & Air delivers a full spectrum of residential and light-commercial HVAC services, structured to generate both one-time installation revenue and recurring maintenance income. Our goal is simple: provide fast, trustworthy service with clear, flat-rate pricing. No confusing estimates, no hidden fees—just honest work at competitive rates.

We base our prices on local Nashville averages from Ferguson, Trane distributors, and HomeAdvisor (2025), so customers get fair rates without sacrificing quality.

Core Services

ClimateCare Membership Program

ClimateCraft’s membership plan is the foundation of its predictable cash flow strategy.

Plan name: ClimateCare Maintenance Program

Price: $25/month/system ($300/year).

Includes:

• Two annual tune-ups (spring + fall).
• Priority scheduling for emergencies.
• 10% discount on all repairs and installs.
• Free smart thermostat recalibration and filter delivery.

This subscription model ensures stable income during winter months, offsetting HVAC seasonality while increasing customer retention and average lifetime value (LTV).

Light Commercial Service Contracts

In addition to residential services, ClimateCraft will manage preventive maintenance contracts for small commercial clients such as restaurants, medical clinics, and retail spaces under 10,000 sq. ft.

Average contract value: $2,000–$3,500 annually per site

Commercial plans include:

• Quarterly filter changes and coil cleaning.
• 4-hour response guarantee during business hours.
• Annual system performance reports for compliance.

Seasonal Promotions

ClimateCraft offers seasonal specials to help customers save money and stay comfortable all year.

In spring, our “Spring Start-Up Special” AC tune-up costs just $99 (April–May).

In fall and winter, the “Winter Ready” furnace tune-up plus filter bundle is $169 (October–December), and we run the “Fall Furnace Safety Check” campaign.

For smart-home fans, the “Smart Home Starter” promotion gives a free Nest thermostat with a full system replacement.

We also reward referrals: both the referrer and the new customer get a $50 service credit. These deals keep customers happy and encourage loyalty.

Vendors, Brands & Warranties

ClimateCraft partners with trusted HVAC brands like Trane, Lennox, Carrier, and Rheem, and installs smart thermostats from Ecobee and Nest.

Our suppliers:

• Ferguson HVAC Supply (Nashville)
• Trane Distributor (Hermitage, TN)
• Johnstone Supply (tools, coils, motors)

We offer reliable warranties:

• Standard: 10-year parts / 1-year labor
• Extended (optional): 10-year parts / 5-year labor—additional $600 per system (20% margin).

The company’s partnership with Ferguson ensures reliable component supply with 30-day vendor credit, improving working capital management.

Pricing Strategy

ClimateCraft’s pricing strategy is built on accessibility + clarity + trust. We use flat-rate pricing, so every service is pre-quoted from a published rate book—no surprises, no hidden fees.

Customers always know exactly what they’ll pay before work begins. This straightforward approach makes HVAC services easy to understand and gives homeowners and small businesses confidence in choosing ClimateCraft for all their heating and cooling needs.

Marketing & Sales Strategy

ClimateCraft’s marketing is designed to generate a steady flow of service calls, build a trusted neighborhood brand, and convert first-time customers into long-term maintenance members.

Marketing Channels

HVAC is one of the most searched home services on Google. More than 75% of homeowners check online before hiring a contractor. Searches with “near me” have grown over 500% in five years, and HVAC repair is one of the fastest-growing.

This is why ClimateCraft focuses on both digital and local marketing channels:

Along with this, ClimateCraft will also share short, helpful videos and posts about air quality, energy saving, and HVAC care on YouTube and social media. This will help people learn and trust the brand.

Customer Acquisition Plan

ClimateCraft has a simple plan to grow its customers.

• In Year 1, we aim for 700 residential service calls and 20 full system installs.
• By Year 2, we want to partner with 3 property management firms.
• In Year 3, we plan to launch our maintenance program with 400+ recurring members.

This helps us build long-term relationships with both homeowners and small businesses.

Promotions

To attract new customers, ClimateCraft offers a free smart thermostat with any full system install for the first 50 customers. We also give a $50 referral bonus to both the person who refers and the new customer. These promotions make it easy to try our services and encourage repeat business.

Metrics & Monitoring

ClimateCraft will closely track all marketing results to make sure every dollar spent brings real value. Marketing performance will be reviewed each month by Erin Morales, using FieldEdge analytics and Google Ads Manager.

Regular tracking helps us understand what’s working, where to improve, and how to keep customer growth steady.

We’ll also share quarterly reports with FirstBank Nashville to show clear results and responsible use of funds.

Key performance indicators:

Operations & Staffing

ClimateCraft Heating & Air is a field-service company focused on efficiency and quality. We work efficiently so our technicians can help more customers without rushing.

We use FieldEdge CRM to handle scheduling, dispatch, invoicing, and payroll, and MeasureQuick helps track system performance and technician work in real time.

Our main office and warehouse are at 814 Ridgefield Drive, Nashville, and we serve customers within a 35-mile radius covering Davidson, Williamson, and Rutherford Counties.

Facilities & Logistics

The 1,800 sq. ft. leased facility includes:

• 1,000 sq. ft. warehouse with secure tool cages and shelving.
• 400 sq. ft. office and dispatch space.
• 400 sq. ft. technician training area and break zone.

The facility is zoned for light commercial operations and HVAC storage per Nashville Metro standards.

Hours of Operation

• Regular: Monday to Saturday, 7:00 AM – 8:00 PM
• Emergency: 24/7 response with a rotating on-call system

Staffing Plan

To ensure smooth operations and high-quality service, ClimateCraft starts with a small, skilled team in its first year. Each role is designed to cover key areas of service, administration, and marketing while keeping the team efficient and responsive.

Shift Structure

ClimateCraft arranges its team to give quick and reliable service.

• Day crew: 3 technicians and 1 dispatcher handle normal service and installations.
• After-hours on-call: 1 technician is on rotation for emergencies, so help is available 24/7.

This system lets us respond fast, stay on schedule, and give customers peace of mind.

Fleet & Software

ClimateCraft uses reliable vans and simple software to keep work running smoothly. ClimateCraft has 3 leased Ford Transit vans at $750 each per month, so technicians can reach jobs on time. For scheduling, dispatch, and tracking work, we use FieldEdge at $1,200 per month, and QuickBooks handles invoicing and accounting for $90 per month. These tools help us stay organized, work efficiently, and give fast, dependable service to our customers.

Compliance & Licensing

ClimateCraft follows all rules to keep customers and staff safe.

• Tennessee HVAC License (CMC-C): Lets us install, repair, and maintain HVAC systems legally.
• EPA 608 Certification: Technicians handle refrigerants safely and follow federal rules.
• OSHA 10 Safety Training: All field technicians complete safety training to prevent accidents.
• Local Mechanical Permits: We get the required permits from Davidson County for installations and major repairs.
• Insurance ($14,500/year): We carry liability and workers’ compensation coverage to protect customers and our team.

This makes sure every job is done safely, legally, and with peace of mind for homeowners and businesses.

Workflow & Field Operations

At ClimateCraft, every job has a simple process to keep work smooth.

When a customer requests service, the job is entered into FieldEdge CRM with details like type, location, and priority. The dispatcher sends the nearest technician using GPS to save travel time.

On-site, the technician checks the digital work order, confirms the price, and runs a diagnostic with MeasureQuick. After the job, a report is made, and the invoice is sent through QuickBooks. Customers can pay on-site by card or Automated Clearing House (ACH).

Within 24 hours, a follow-up message asks for a review. Weekly meetings track job time, profit, first-time fixes, and review responses.

This process helps ClimateCraft work efficiently, reduce mistakes, finish jobs on schedule, and keep customers happy and confident in our service.

Quality Assurance System

ClimateCraft operates under a five-point QA checklist for every completed job:

All QA data is stored in FieldEdge for review by owners and available for SBA post-loan monitoring if requested.

Financial Plan

The financial plan for ClimateCraft Heating & Air outlines the startup investment, revenue projections, and financial outlook for the first three years of operation. The plan demonstrates steady revenue growth, stable margins, and a clear path to profitability by mid-Year 2.

Startup Costs

The business will require about $260,000 to start operations. This includes:

Important Assumptions

Revenue Forecasts

Monthly Projections (Year 1)

Projected Profit & Loss Statement (3 Years)

Projected Balance Sheet (3 Years)

Projected Cash Flow (3 Years)

Break-Even Analysis

Business Ratios

Funding Requirements

Scenario type: SBA 7(a) Loan

Target institution: FirstBank – Nashville Branch

ClimateCraft Heating & Air, LLC requests $375,000 in funding through an SBA 7(a) loan, supported by $90,000 in owner equity from personal savings and prior contracting proceeds. This combined capitalization of $465,000 will fully fund business launch and early operations.

Risk & Mitigation

Like any service business, ClimateCraft faces a few common risks, but each one has a solid plan in place to manage it. Our goal is to stay prepared, stable, and dependable year-round, no matter what the market brings.