The Truth About Growing an HVAC Business From $2M to $9.3M!

📅 March 23, 2026 ⏱️ 25:59 🎤 Lance, Tom, Karen, Bernie Ollila, Nikita Kometani

Chapters

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0:00

Rapid Growth & Margins

Lance challenges the idea of achieving rapid growth from $2M to $9.3M with high profit margins, explaining why it's often unrealistic due to reinvestment needs.
1:45

The Power of Branding

Tom and Karen share their experience investing $35,000 in rebranding and how wearing company apparel acts as a constant conversation starter and brand builder.
5:08

Revenue and Net Margins

Tom and Karen disclose their company's revenue of $9.3 million and a net margin between 5% and 7%, highlighting transparency in financial discussions.
7:34

Investing in Growth

The discussion covers how rapid growth necessitates significant reinvestment in assets like vans and equipment, making high profit margins challenging in the short term.
10:03

Transparency in Business

The hosts and guests discuss the reluctance of many business owners to be transparent about their numbers and the importance of being proud of any business size.
15:16

Value of Free Advice

Karen recounts an experience of giving free, valuable advice on ServiceTitan to another contractor, contrasting it with the internet's prevalence of paid advice.
17:10

Charging for Value

Lance explains why he started charging for his masterminds after a free one had poor attendance, emphasizing that people value what they pay for.
20:05

Overcoming Growth Struggles

Tom discusses the biggest challenge in their rapid growth was initially attracting employees in a competitive market, which improved with brand visibility and culture.
23:48

Competing in a PE Market

The conversation addresses the difficulty smaller shops face in competing with private equity-backed companies due to their massive marketing budgets and high lead costs.
26:35

AI in Home Services

Tom and Karen acknowledge their lack of AI implementation but express their intent to adopt it to improve efficiency, with Lance predicting a future where robots handle repairs.
31:30

Financing for Conversion

Tom and Karen discuss their financing options, Good Leap and GreenSky, and the high percentage of deals they finance, highlighting its impact on conversion rates.
32:49

Exit Strategy & Profit

Lance advises Tom and Karen, who plan to sell in 3-5 years, to continue reinvesting profits for growth, as every dollar taken out reduces their potential exit value.
36:07

Family Business Culture

Tom and Karen discuss their genuine family-like business culture, exemplified by Nikita, a former teacher who successfully transitioned to an operations management role.

Speakers

Lance

Host

Tom

Co-owner, HVAC, plumbing, and electrical business

Karen

Co-owner, HVAC, plumbing, and electrical business

Bernie Ollila

VP of sales at Titan Pro Technologies

Nikita Kometani

Operations Manager at Vector

Key Takeaways

✦

Invest significantly in your brand, including professional branding and consistent apparel, as it serves as a powerful conversation starter and builds company recognition.

✦

Prioritize operational efficiency over just marketing; fixing internal inefficiencies will yield greater returns and prepare your business for scalable growth.

✦

Embrace transparency about your company's financials; sharing real numbers fosters trust and provides valuable context for others in the industry.

✦

When planning an exit in the next 3-5 years, resist the urge to take out high profits; reinvesting every dollar back into the company maximizes growth and your ultimate sale price.

✦

Actively implement financing options like Good Leap, GreenSky, and even subprime solutions like FinTurf to increase conversion rates and make services accessible to a wider customer base.

✦

Cultivate a strong, family-like company culture; this not only helps attract and retain employees but also fosters loyalty and a positive public image, especially in competitive markets.

✦

Consider hiring talent from outside the industry, like former teachers, as they often bring fresh perspectives and are eager to learn, proving highly valuable in new roles.

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