Outline
Let’s be real—you’ve probably got a half-baked system in the truck, three service calls stacked after lunch, and someone’s grandma complaining her thermostat “sounds funny.” So yeah, I get it—retirement planning isn’t exactly top of mind.
But if you’re planning to just work until you drop… that’s not a plan. That’s a burnout strategy with a side of regret. Come on, you (and your dear family) deserve better!
Let’s walk through how to start setting yourself up for a future that doesn’t include 6 a.m. crawlspaces and peak-summer attic sweats until… you die on the truck!😯 And yet obviously you don’t want to be reduced to eating warmed-up dog food in retirement either! 😥
Again, you deserve better!! Let’s walk through four steps on how to get to a comfortable, happy and worry-free retirement from your HVAC business.
Step 1: Figure Out What You’ll Actually Need (Spoiler: It’s Way More Than You Think.)
Look, you wouldn’t walk into a job without checking the load calc, so why treat your future like a guessing game?
Asking yourself the Tough Questions is part of effective retirement planning. Dedicate some time and ask yourself these soul-searching (uncomfortable) questions. No judging here. Everyone has different needs. What are yours?
- “How much will I actually need every month if I’m not working?”
- “What’s healthcare gonna cost when I’m not on the company plan?”
- “Will I still want to do fun stuff—or am I planning to sit in a lawn chair and wait for my joints to give out?”
Bottom line: guessing won’t cut it. Take a seat, run the numbers, then run them again and again, including different “what ifs”. You are looking for reality, not good feelings . To get you started with your retirement planning, check out the importance of having regular HVAC cash flow.
Step 2: Don’t Just Run Your Service Business—Grow It Like You Plan to Sell It
Now let’s talk about “letting go”! Your HVAC business likely will become your biggest asset. Bigger than your house, your vehicles, and that garage full of tools you “might need someday.”
So here’s the play: if you want to cash out later, you’ve got to build it like you’re gonna sell it tomorrow—even though your “tomorrow” may be 30 or 40 years from now. This is a mental shift that must happen IF the sale of your HVAC company is part of your retirement strategy.
Sample strategies to boost the value of your HVAC company AND prepare the way for your exit:
- Streamline your systems (daily chaos doesn’t sell well!)
- Invest in your team (so the business isn’t just you)
- Offer more services or contracts (recurring revenue = buyer bait!)
Because when it’s time to retire, you don’t want to be stuck begging someone 😥 to take over your chaos.
🌟Read this if you want top dollar later: How to increase your HVAC business value.
Step 3: Start a Personal Retirement Savings Program. Like, Yesterday!
I know what you’re thinking: “I’ll save when things slow down.”
Listen closely here, little buddy, things never slow down. You know it and I know it. It’s always “I’m too busy” or “returns are too low” or “not the right time.” (I’ve heard ’em all from my consulting clients.)
Meanwhile? Time’s ticking and compound interest isn’t waiting for you! Don’t delay your retirement planning; the earlier you start, the better.
How to Get Started
Even a few hundred bucks a month REGULARLY invested into a SEP IRA or solo 401(k) will grow incredibly faster than you think. But you’ve got to actually start—not just “mean to” get around to retirement planning. 🙄
Here’s a focused guide with legitimate options: Choosing a Retirement Solution for Your Small Business.
Don’t Just Save—Make Your Money Work
Stashing cash in a savings account is about as effective as using duct tape to fix a cracked heat exchanger. Will it stand up to the pressure? You need that money to grow while you’re still out there grinding.
I’m no Financial Planner but please look into:
- Stocks (don’t panic, good help is out there)
- Real estate (may offer both cash flow and appreciation)
- Passive investments (because crawling under houses at 70 isn’t “the dream”)
Just don’t fall for the “get rich quick” traps. If it sounds too good to be true, it probably is. Diversify, get advice, and DO NOT PANIC. (Don’t ask me how I learned this way back in the 2020 “Covid Selloff”!) 😮
Step 4: Don’t Ghost Your Business—Plan the Hand-Off
You ever done a repair after the previous HVAC operation didn’t document their work? No labels, no notes, nothing? Please—don’t be that guy when you retire.
This is another one that deserves some careful time and reflection. Who are you building the business for?
Figure out who will be taking over. A family member, long-time tech, or an outside buyer? Then train them up, give them your written “Business Infrastructure” (step-by-step systems and procedures), and plan for a clean exit. 👍
Ultimately, retirement planning is about securing your peace of mind. You don’t want your legacy going down the drain because no one knew how to find simple customer files, create new load lists or who “Bill in Dispatch” even was. (HINT: Bill left 6 months ago!) Here’s how to make the transition without losing your mind: Succession planning for contractors.
Bottom Line: You’re Not a Machine—You Don’t Run Forever
You work hard. You show up. You fix things most people don’t even understand. Good for you!
But you’re not invincible. Your body has a “shelf life”. HINT: The HVAC business will chew you up and dramatically reduce your shelf life IF you don’t plan ahead.
Retirement planning isn’t about giving up. It’s about giving your future self a break—and honestly, you’ve more than earned it. 😁 So DO IT… NOW!