6 Processes HVAC Companies Must Have Documented Before Selling

Documenting an HVAC company’s procedures is essential when selling it to inspire confidence in buyers and show that the business has tangible value outside of ‘the seller’s head’. In this article, we’ll discuss six that are vital.

Documenting every procedure in an HVAC company encourages interested parties to buy or invest in the business. Documenting dispatch schedules, training, and customer complaints procedures shows that the business is transparent and reinforces its value. 

Transparency is essential when you want to sell an HVAC company, and buyers put a lot of value on well-documented procedures. Documented procedures provide a complete picture of a business’s efficiency and potential, and here are a few you must have in place.

Several factors influence the value and sale of an HVAC company, including the documentation of its procedures, and here are a few to ensure that the company is running smoothly to encourage buyers:

Documenting Parts and Equipment Inventory

HVAC companies rely on several aspects to run optimally, but none is as essential as their parts and equipment inventory. Potential buyers expect a smooth handover, which includes a well-documented record of all the parts and equipment.

For example, HVAC service providers use contractor-owned or company vehicles to perform maintenance and installations. The vehicle must have all the necessary parts and stock for the technician to do the job quickly and professionally. A poorly stocked vehicle will result in unprofessional service, time delays, and a costly outcome for the company. 

A parts and equipment inventory helps the company keep track while ensuring everything runs efficiently. Potential buyers will look for documentation and procedures like:

  • Inventory management system — An inventory management system tracks equipment, materials, and supplies via inventory software, a spreadsheet, or a manual list.
  • Supply template — A supply template works alongside the inventory management system and provides every vehicle with the minimum stock necessary to complete the job.
  • Standard inventory operating procedure — A standard inventory operating procedure reduces time spent stocking the vehicle and ensures that the technician never loses track of equipment and supplies. 

Maintaining an accurate listing of the parts and equipment an HVAC company uses will boost output and give the company more confidence when it comes time to sell.

Documenting Schedule & Dispatch

When selling an HVAC company, it is vital to show how it keeps track of every dispatch, and a schedule ensures that the technician gets to the customer in the fastest time possible. 

For example, a schedule helps the technician arrive when the customer is ready and available, avoid unnecessary waiting due to locked gates, etc. A well-documented schedule and dispatch procedure will inspire confidence when selling an HVAC business. 

It also inspires confidence in customers and technicians to reduce stress and helps your company provide quality service. Dispatch is a vital part, and here is why:

  • Track jobs and performance — HVAC companies use schedules to improve customer service and track technicians’ performance.
  • Customer information — A schedule with all the necessary customer information makes it easy for the technician to know when and where to go, who to see, and what the customer requires.
  • Prioritizing — Prioritizing is essential, and a schedule helps dispatch a technician to urgent jobs and avoid customer complaints.
  • Customer expansion — Growing HVAC companies rely on dispatch schedules as their customer base grows. Schedules help limit traveling costs and improve efficiency without sacrificing customer service. 

Thoroughly documenting an HVAC company’s schedule and dispatch will improve productivity and provide confidence when selling the company.

Documenting The Installation Process 

Documenting installations is an essential aspect of an HVAC company and provides vital information to buyers, such as the business’s site assessment, planning and compliance procedures, etc. Installations have several aspects that must be documented, including:

  • Installation checklist, which must include equipment, materials, and tools
  • System selection and procurement, including delivery timelines, prices, and agreements
  • Modifications (How and if it affects the system or warranty)
  • Equipment installation and connection procedure
  • System test 
  • Compliance and assurance test 
  • Client orientation and handover 

Documenting the installation is extremely important because it details the work and product quality, the client’s experience, and overall approval. 

Documenting Complaints (Callbacks)

An important factor when selling an HVAC company is how it handles customer complaints. Documenting complaints and callbacks is vital to buyers to shed light on customer relationships and to HVAC businesses that want to grow and improve. Callbacks and customer complaints often lead to unnecessary spending and documenting them will save the company a lot of money.

 For example, documenting a poor service quality complaint will help the company address the issue and identify whether it was a personnel or product-related service complaint. Documenting also helps show whether it is an isolated or ongoing problem and rectify it before it happens again. 

When selling an HVAC company, buyers attach a lot of value to how the business resolves complaints, and here are some ideas to improve:

  • Response time — Responding quickly in addressing the complaint will avoid an angry client.
  • Gather information — Listening carefully to the client and obtaining as much information as possible will help you handle a problem quickly and prevent it from happening again.  
  • Stay cautious — Being polite says a lot about your company’s professionalism, and it is essential to stay cautious no matter who is at fault.
  • Image — Maintaining a professional image during a complaint may encourage them from using or referring you. 

A record of the complaints and callbacks received will boost efficiency and give confidence when selling the company.

Documented Payroll

Documenting your HVAC business’s payroll is essential if you want to sell because buyers value accurate records, well-managed taxes, and implementation of local labor laws. Accurately documenting the payroll also provides necessary detail about the company’s productivity. 

For example, the business can identify and address the cause if the payroll documents show excessive overtime spending. 

When selling an HVAC company, a buyer would look at the payroll documents to see if the company implemented the following: 

  • Accurate record keeping
  • Labor law compliance
  • Overtime management
  • Payroll software quality
  • Regular payroll audits
  • Proper HR personnel training
  • Payroll retention periods

Payroll documentation will increase a company’s performance and give it more confidence in selling.

Employee Training

HVAC companies rely on qualified and adequately trained personnel to complete the job quickly, effectively, and accurately. Documenting all the training is essential if you sell, as it will give the buyer confidence in the workers’ ability to do the job. 

For example, suppose the HVAC business introduces a new system or service to its product list. In that case, the person handling that system or service is expected to have undergone adequate training and can provide documentation to prove it.

Many HVAC businesses use OJT (On-the-job Training), making it difficult to inspire confidence when selling. Most buyers prefer some form of recognized training or a NATE (North American Technician Excellence) certification.

Numerous training procedures in an HVAC business must be documented, including:

  • Product and services training
  • Customer service training
  • Time management training
  • Safety training
  • Leadership training
  • Workplace relationship training

Training is vital to any HVAC company’s productivity, and documenting it will improve business performance and provide confidence when selling it. 

Conclusion

Procedure documentation must be in place before selling an HVAC company to provide confidence to the buyer. Documenting the installation process, staff training, and customer complaints, to name a few, are all necessary to showcase the business’s transparency and efficiency. 

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