Entrepreneurs in the HVACR industry know the inherent challenges of balancing technical skills with business acumen. As businesses grow and mature, the road is often fraught with pitfalls and hard-learned lessons. Here, I share some common "fails" I see that can paradoxically help pave the way to business success.

Chasing Down Work vs. Developing Business Goals

Southern Home Services serves as the parent company to dozens of local HVACR, plumbing, and electrical business units across the Southern and Eastern regions of the United States. When we evaluate companies to acquire and operate as a business unit, I often observe a common misjudgment that technicians-turned-owners make in the industry. Someone decides they no longer want a boss telling them what to do, so they branch out on their own, only to realize they haven't built a sustainable business but rather an unforgiving job for themselves. 

While chasing down work is an important part of launching a successful business, being shortsighted about the future of the company comes at a cost. 

Entrepreneurs should ask themselves this very important question, and answer honestly. 

Did I start the business to build equity down the road, or am I in it for the paycheck? 

The answer to this question is pivotal. It can influence every strategic move made once reaching the conclusion. 

Those who want to create enduring value and equity should approach their business with a long-term vision. This requires taking a break from turning wrenches and consistently setting aside time to look at the business from a strategic perspective. 

Ask and answer the next set of questions:
•    What has been successful? 
•    What didn’t work?
•    Where do we go next?
•    How do we get there?

Asking and answering these questions will help set your business up for future success. 

Master of All vs. Master of Niche

In the initial stages of entrepreneurship, there's an understandable temptation to grab every opportunity that comes your way. The allure of accommodating every customer with a plethora of services, products, and flexible pricing can seem like the fast track to success. But herein lies the risk of overextension.

Overextension, in relation to business, is like a rubber band stretched too far. Not only is there a risk of snapping, but it loses its inherent strength and functionality. For a budding business, overextending equates to diluted brand identity, reduced service quality, and a strain on resources. Juggling too many offerings often leads to subpar performance across the board.

Trying to be everything to everyone is a surefire strategy for mediocrity. This is especially true in specialized fields like HVACR, where expertise and focus make or break a company. Instead of becoming a master of all trades (and possibly a master of none), business owners should concentrate on the services that guarantee a healthy profit margin and consistent demand.

For HVACR entrepreneurs, the goal should be to identify and hone in on the services that not only are in demand but also yield substantial returns. By anchoring their business model around these core services, they can then gradually branch out, ensuring that each new service addition aligns with their brand's strength and the market's needs. This strategic approach allows businesses to grow sustainably, ensuring longevity and success in a competitive market.

Customer Concentration vs. Customer Diversification

Customer diversification, while necessary for long-term growth, can often be difficult for a new entrepreneur. Most business owners start focused on a specific customer segment, limiting their customer base from the start. While this approach is not recommended long-term, it could yield early benefits for the company. 


I saw this tactic play out personally. My father worked for ARA Services for many years before starting his own business that competed with them. He had two great business relationships – 80% of his business was these two customers – but the problem is that if you get sideways with one, your business disappears overnight. Anchoring most of your business to one customer segment is risky. 

While steeping yourself deeply within a customer segment may lead to early wins, diversification is crucial to ensure long-term sustainability.

Brand Building vs. Demand Generation


Navigating the marketing landscape as a new entrepreneur can be challenging, especially for owners who focused solely on operations before opening their business. A natural inclination is to focus on building a well-known brand via brand recognition and loyalty. Setting up billboards, wrapping your fleet, and sending out postcards are often marketing tactics we see new businesses rely upon early on. This is an excellent first step. But you must also adopt a solid marketing strategy. 

Utilizing direct marketing strategies is crucial, especially for startups with tight budgets. Begin with generating immediate demand. Investing in digital advertising and email marketing to drive leads should be the highest marketing priority for new business owners. Successful demand-generation strategies can be scaled up to amplify results, leading to revenue success. While name recognition is a solid long-term marketing effort, demand generation takes precedence as you start your entrepreneurial journey. 

The smart move for new entrepreneurs is to first establish a foothold with demand generation tactics. Once the revenue stream stabilizes, then begin building brand recognition in the market to craft a lasting brand legacy.

Friends vs. Foundations


The last significant insight I’ll share touches on processes. Small businesses often romanticize a 'family atmosphere.' While it can foster a positive environment and help to build a great culture, it can also blur professional boundaries, leading to inefficiencies.

Entrepreneurs must learn to strike a balance. When you get too close to your staff, it can make things difficult. Decisions made with the heart are commendable, but they don't always align with what's right for the business. The antidote? Processes. 

Ensure that you have created and are setting repeatable routines, or processes, that are consistent - day in and day out. Even if they're not meticulously documented, consistent processes keep chaos at bay and help businesses scale smoothly. Otherwise, as you grow, you’re not going to be able to keep up with the chaos.

Fail vs. Flourish

In the narrative of business, it's the mistakes we make that often shape the path toward success. Understanding the nuances of the HVACR industry, from pricing to process, can mean the difference between fleeting success and building a legacy. As with any journey, the road to business success is filled with learning, failing, evolving, and consistently aiming for excellence. If your HVACR company is ready to flourish, consider contacting Southern Home Services to discuss a future of success.

Bryan Banek is the CEO of Southern Home Services, he has displayed exceptional skills in enhancing revenue, and EBITDA, and overseeing successful mergers and acquisitions. His tenure at companies such as Terminix, American Residential Services (ARS), and Service Experts is marked by transformative leadership, where he improved profits, increased revenues, and played a crucial role in the turnaround and growth of these organizations. www.southernhomeservices.com ph.: 407-519-3265