How to open an air conditioning installation business

* The calculations use the average data for the World

Today, many entrepreneurs offer the population all kinds of services for the performance of certain works. One of these areas of business is the installation of air conditioners. This type of entrepreneurship is quite promising for a beginner, because it does not require too much financial cost, however, it is worth noting that quite often it is not practical to only install air conditioners. In this article, however, such a business will be considered with an indication of possible options for the development and expansion of its activities, but only work on the direct installation of air conditioners (as well as split systems and similar devices) will be covered in detail.

To get started, you must register as a business entity. It is easiest to take shape as an individual entrepreneur, because it will require a small investment of money, and it will also take up relatively little time and effort. However, if there is a need to register a legal entity, the preferred form is a limited liability company, because in this case, as in the case of individual entrepreneurship, a simplified taxation system will be available, which involves transferring to the state's benefit no more than 6 percent of income or 15 percent of operating profit as taxes. The activity itself falls within the definition (OKPD 2) 43.22 Installation of water supply, sewage, heating and air conditioning systems. And this is interesting, despite the fact that the installation of air conditioners is a relatively simple operation, it can be put on a par with services such as the installation of household appliances or repair work in the house, this activity is regulated by the Federal Law of the Federal Law of the Russian Federation of December 1, 2007 No. 315-F3 "On Self-Regulatory Organizations". That is, in essence, it is equated to construction and engineering work.

It should be noted that previously such activities were generally subject to licensing, but since 2010 the license has been canceled (this applies to all construction work in general), and now it is necessary to become a member of a self-regulatory organization that works in the field of construction or engineering surveys. This adds a considerable amount of complexity, because in order to join a self-regulatory organization, it is necessary to provide evidence that the entrepreneur is able to carry out the task assigned to him in a quality manner, while each SRO sets its own conditions, and it must be said that it is always necessary to pay the entry fee, which sometimes amounts to a considerable amount, which is critical primarily for small enterprises and individual entrepreneurs. The advantages of joining a self-regulatory organization are also there, but in this area of ​​business, such obligations are more likely to become an unnecessary problem and take extra time to bureaucratic red tape.

The next step in organizing your business can be called finding a room to host your office. It will become just a representative office in which negotiations are held with customers. Theoretically, you can work without renting premises, negotiating with customers either by telephone or in their or neutral territory. This is especially convenient for small organizations that want to save money at first. When choosing a room, you need to decide on the area of ​​your work, because in big cities it’s impractical to try to capture the market of the whole city, in this case you will have to compete with a very large number of organizations. In this regard, it is much easier to cover only a few quarters in order to offer their services only to residents of nearby houses. Of course, you shouldn’t refuse a consumer even from the other end of the city if he himself entered the company and became interested in its services, but it’s better to conduct an advertising campaign and look for consumers in a limited territory. It is most advisable to consider sleeping quarters first of all, especially well if new sleeping districts are under construction in the city, because then it will be possible to receive a very large number of orders from new residents, being accommodated on the territory of new buildings. The office space itself should not be large, because few people will work in it, and the equipment necessary for work cannot be called overall and takes up a lot of space. The cost of renting an office depends on many factors, which the location relates to in the first place, because in the central regions it will be an order of magnitude higher than on the outskirts; we must not forget that in large cities, rental property is an order of magnitude higher than in the provinces.

A few words should also be said about the level of competition in this business. Air conditioners and split systems have long ceased to be a luxury item, and today they are bought by a relatively large number of people, so there are already a huge number of companies on the market that offer their customers not only the installation of air conditioners, but also many other types of services. It’s best to try to find the city quarters in which no organization has worked yet, otherwise you will have to directly compete with an existing company, which can be very difficult. As already noted above, today a rare company is engaged exclusively in the installation of air conditioners, much more often it is a repair organization offering the help of all kinds of craftsmen to the client. This can be the repair of any household appliances, relocation services, electrical and plumbing, cleaning, maintenance, and the like. This is not to say that it is not possible to build your business solely on the installation of air conditioners, but you need to take into account the work of not only direct competitors who are also involved in the installation of air conditioning systems, but also of larger organizations that almost certainly have an established client base due to work with various consumers on various issues.

In general, it is worth considering the option of opening your own organization of this kind, which offers its customers a wide range of various services. The advantages of a multidisciplinary organization are obvious: work with a large number of consumers, which means faster dissemination of information about yourself (word of mouth has not been canceled); the formation of several sources of income, taking into account the fact that starting investments do not increase much; It is possible to offer our customers a more advanced service. Another important feature is that the business of installing air conditioners is more seasonal, and therefore you will have to rely on the fact that in certain months the number of orders will be minimal or absent, which certainly can adversely affect your business. Work in several profiles allows the entrepreneur to have a stable and constant income throughout the year, while his employees, who are specialists in the installation of air conditioners, can be trained to perform other types of work and therefore can always be busy at work.

As for specialists, this issue needs to be approached very seriously, because if you hire people who poorly perform their duties, you can get difficult consumer dissatisfaction with the subsequent loss of reputation, but even litigation, because the system is not installed correctly air conditioning can damage the devices. At the same time, the self-regulatory organization also imposes requirements on employees of companies that have membership in it. However, it should be noted that some particularly progressive self-regulatory organizations offer their members training services and staff development. However, it is best to initially look for qualified specialists who have considerable experience in this field and can guarantee that the work will be done efficiently, and subsequently there will be no problems. Specialists should have the skills to install and maintain air conditioners and split systems, while being able to work not only with common models, but also with rather outdated units and, conversely, the most modern machines. It should be borne in mind that the company will work not only with private individuals, but also with organizations that will need to install more complex air conditioning systems.

But even when working with individuals, some difficulties may arise for an unprepared person, because in addition to common types, there are monoblock air conditioners, multi-split systems and systems with variable refrigerant consumption, and each of these types of devices has its own installation features. Installation specialists should also have practical skills in industrial mountaineering and, to some extent, in repair and construction works, because sometimes installation can be fraught with some difficulties. Next, you will need to find people who will be involved in organizational and administrative matters, while the entrepreneur himself can take a leadership position if he himself does not have sufficient skills and knowledge or simply does not want to install air conditioners on his own.

At the same time, it should be noted that all business processes that are not related to profit-making by the organization are best outsourced, because this will significantly save due to the lack of the need to keep additional staff in your staff. In general, it can be said that such a business rarely requires a staff of more than 10 people, however, if you have to work with a large number of consumers and have a considerable number of orders, it may be necessary to form several teams that are engaged in simultaneously executing orders at the request of different consumers. Therefore, in large companies, the staff usually consists of a fairly large number of people.

The next step in organizing your business will be the purchase of equipment that will allow you to most efficiently and quickly complete tasks. To install simple air conditioners and split systems, you will need to buy tools and equipment such as a wall chaser with a set of diamond disks, a special industrial vacuum cleaner, a professional puncher, a pipe cutter, a lever and crossbow type pipe bender, a propane-oxygen burner, and also rolling and scrapping. The cost of each instrument lies in a rather wide price range, however, the average price of such a kit is rarely less than 100 thousand rubles.

Some entrepreneurs try to save money by buying used equipment, but in this case, the residual risk is that it will be too worn out and in the near future will fail. An example is the operation of a chaser. If you use cheap diamond discs for this tool, it will break very quickly. In this regard, a person who bought low-quality diamond blades after a certain period of operation will try to get rid of the old chipper, trying to pass it off as a new machine. It should be noted that for the installation of air conditioners, you can use cheaper equipment, that is, purchase obsolete technical analogues of the above tools. Here, already every entrepreneur decides for himself what level of quality service he wants to offer to his client. We must not forget that for the installation of air conditioning systems you will have to purchase a considerable amount of consumables, the cost of which can be up to a third of the price of work that the customer pays. If there is a need for the formation of several teams, then each of them needs to purchase its own set of equipment.

Finally, it is worth resolving the issue related to the transportation of people and equipment to the place of fulfillment of the order. To do this, you can buy an inexpensive micro-van or even a simple car, although some entrepreneurs agree with their employees that they go to the place of work and at the same time transport the equipment in personal vehicles. If a businessman has decided to buy a car for organization purposes, then he should count on a minimum of 200 thousand rubles, and for this money you can only buy a used car of domestic production, which is distinguished by its corresponding quality and reliability.

In his work, he will also have to carry out large-scale advertising campaigns to one degree or another. Word of mouth is still most effective, but at first it’s impossible to count on it anyway, so you should take care of posting information about yourself in the local media, which can include radio, television, the press, as well as thematic portals in the internet. With a sufficient budget, you can create your own website where potential customers can get answers to their questions. However, you need to independently look for your customers, for which some companies even hire sales specialists and sales representatives. These people specialize mainly in finding corporate customers, that is, they turn to companies and organizations with a proposal for the installation of complex air conditioning systems.

The cost of air conditioning installation services is based on several factors. For example, the power of the device plays an important role, because a productive engine involves an increase in the size of the air conditioner itself. The minimum cost for installing one air conditioner starts with about three thousand rubles, although you can find offers from companies on the market that promise to do the job for a slightly lower amount, but in most cases it is a company that cannot guarantee the quality of their work. In addition to the installation itself, it is worthwhile to deal with the subsequent maintenance of air conditioning systems, diagnostics and repairs if necessary. You can also try to conclude an agreement with any store selling household appliances and air conditioners in particular. Large equipment hypermarkets, of course, have their own staff of specialists and offer installation services for equipment purchased from them, but small stores almost always do not have the ability to provide this kind of service. Therefore, having established cooperation with the store, you can count on receiving a relatively large number of orders, because many buyers of split systems and air conditioners need their subsequent installation. Working with the store, you can also offer potential customers all the same services for repair and maintenance of air conditioning systems through it.

To summarize, we can say that this is a fairly profitable and somewhat simple undertaking, but it is best to combine it with other types of businesses that are close to each other. Then it will be possible to get good income from the installation of air conditioners in the warm season, that is, in the season, and in other months doing mainly other types of business.

Matthias Laudanum

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08/18/2019


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