Key Takeaways
- Income Potential: Transitioning from technician to CEO can increase owner benefit from $93,600 to $260,000+ annually with just 5 technicians
- Business Value: “One guy and a truck” operations have no resale value, while properly structured businesses become sellable assets
- Growth Strategy: Success requires grooming replacements, delegating technical work, and focusing on leadership and business development
- Mindset Shift: Accept that others can do quality work with proper training – perfectionism keeps you stuck in the field
The Technician’s Dilemma: Why Your Income Is Capped
Most HVAC businesses start with an ambitious and talented technician who dared to take the leap and open their own shop. Somewhere along the way, they hit a frustrating wall and realize their income is capped by the hours in the day. One person working for an hourly rate can only bill so much. The more lucrative route is to lead the business and other technicians by becoming a true CEO.
Understand that time is finite and despite your best efforts, you can’t do it all. When you absorb all the roles in your company (salesperson, technician, bookkeeper, and procurement), you’re spread too thin and likely not doing any of these tasks well.
Instead, set a goal to get out of the truck and train others in your way of doing business. If building a business and making more money is your goal, consider this simple math example:
The Financial Reality Check
When you are in the field doing technician work:
- $45 net per hour × 2,080 work hours per year = $93,600 owner benefit
When you have 5 technicians working for you while you manage as the owner:
- $25 net per hour × 5 technicians × 2,080 work hours per year = $260,000 owner benefit
This dramatic difference in earning potential is just the beginning. There’s another crucial benefit that many technicians-turned-owners overlook: your business becomes sellable.
Building a Sellable Asset vs. Having a High-Paying Job
Patrick Lange, Business broker with Business Modification Group, delivers a harsh truth about the “one guy and a truck” business model: it’s nearly impossible to sell.
“The reality is, if you only make money when you are billable, you don’t have a business, you have a high-paying job,” says Lange. He’s quick to point out that’s okay if that’s what the business owner wants. However, understand that when you go on your last service call someday at the end of your career, that’s it. “There’s no payday at the end,” he warns.
Buyers are scared off from businesses like this for two key reasons:
- They’re never big enough to attract substantial interest
- Customer relationships are in danger of evaporating if the previous owner isn’t servicing them post-sale
Check Out This Related Resource
For more insights on building a skilled trades business the right way, listen to this episode of the HVAC Know It All Podcast featuring Daniel Guest:
How to Make the Transition from Truck to Office
“Transitioning from the service truck to the front office is among the most difficult things to do for a growing business,” says Michael Scirocco, owner of Moving Mountains HVAC consulting.
“Almost always the owner feels like they are the best technician, with the best customer service skills, and nobody can do it as well as they can. And they’re probably right,” he acknowledges. However, thinking like an owner is fundamentally different than making decisions as an employee. You must move beyond this mentality and understand that there are plenty of other capable people who can do the job just fine. The key is to train them in your shadow and follow through on your company’s promise to customers.
Have Faith and Let Go
Being the sole breadwinner for your company can be exhausting when others are counting on you. Eventually, you will burn out because it’s not a challenge anymore. By not growing beyond “a guy in a truck,” you’re limiting your personal and financial potential. Be willing to get out of your own way.
This transition requires the same strategic thinking you’d apply to scheduling commercial HVAC maintenance – planning ahead prevents crisis management later.
Groom Your Replacement
Growing your talent is essential. Find someone interested in the industry who may have some formal training and become their mentor. Go on calls together and focus on passing your expertise and philosophy to them. Over time, you’ll gain more confidence in their abilities and they can run their own truck.
Hiring junior people allows you to afford them while avoiding the bad habits learned at another company. When training HVAC apprentices, you’re not just teaching technical skills – you’re building the foundation of your future business.
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Set Designated Time to Be in the Field
Most HVAC owners got started in the business because being outside and working with their hands was fun and rewarding. The thought of being chained to a desk makes them cringe. But being a good CEO doesn’t mean you have to be a slave to your laptop.
Both Lange and Scirocco agree that setting designated times during the week for site visits, providing leadership on complex jobs, and interacting with key customers is a good use of time and what effective HVAC leaders do. Consider scheduling these field visits strategically, similar to how you’d plan residential HVAC maintenance scheduling to maximize efficiency.
However, avoid the temptation of getting sucked back into turning wrenches. Firmly stick to your blocked-off field times.
The Path Forward: Embracing Growth Despite Challenges
Growing a business is extraordinarily difficult, and the reality is most fail. But having bigger goals and scaling beyond yourself can bring peace of mind, flexibility, and generational wealth. Along the way, there will be mistakes made by others that never would have happened if you were the technician doing the job. Try to look at every hiccup as an opportunity to fine-tune your processes and train your team.
Lange concludes with these words of wisdom: “You’ll make some mistakes, just try not to make the same one twice. Over time, you’ll have a wonderful business that someday can be sold for much more than you ever could make working for someone else.”
The transition from technician to CEO isn’t just about making more money – it’s about building something lasting that provides value to your community, opportunities for your employees, and a legacy you can be proud of. Whether you’re currently turning wrenches daily or already starting to delegate, remember that every successful HVAC business owner once faced the same challenging transition you’re contemplating today.
