How Startup HVAC Companies Should Allocate Marketing Dollars
If you’re running a startup HVAC company, deciding where to spend your limited marketing dollars can feel like an impossible puzzle. From social media ads to shiny new tools, the options are endless, but so are the opportunities to make expensive, low-ROI mistakes.
That’s where this guide comes in. We’ve put together a roadmap to help you maximize every marketing dollar. Here's what to expect:
- How to fix three "business basics" before spending any money on marketing
- How to calculate a healthy marketing budget based on your revenue
- The five most effective marketing channels for HVAC startups right now
The goal? Arm you with practical, profit-focused advice so you can build a stable foundation for long-term growth.
Stop the Leaks Before You Spend: Fix These 3 Business Basics First
Before you invest in any marketing tactics, it’s essential to address what Avram calls “leaky buckets.” Imagine spending thousands on lead generation only to lose prospects because calls go unanswered or invoices aren’t sent on time. Here are three fundamental areas to shore up first:
1. Fix Call Answering First
The number-one reason HVAC companies lose potential customers is missed calls. Leads won’t wait hours for a call-back when they can reach your competitors immediately. Aim to answer all calls within two to three rings.
You can also try the following solutions for answering calls:
- Dedicated in-house staff
- Outsourced answering services
- AI call answering software
Pro tip: Even if you’re unsure whether it’s a customer or spam, pick up the phone. Every unanswered call is likely money left on the table.
2. Get a Billing System in Place
Proper invoicing and billing systems do more than just get you paid faster; they also streamline your back office and improve the client experience.
Use tools like Jobber, ServiceTitan, or QuickBooks to:
- Generate professional invoices
- Collect payments online
- Sync transactions seamlessly with bookkeeping software
Integrated billing systems save you time and reduce errors, meaning fewer headaches and friction for you and your team.
3. Prioritize Bookkeeping From Day One
Poor or inconsistent bookkeeping is one of the fastest ways startups fail. Without clean books, you can’t confidently reinvest in marketing or assess profitability.
Quality bookkeeping help doesn’t have to break the bank. Affordable options are available, such as hiring a part-time bookkeeper for just $300–$600 per month.
“When your finances are taken care of, everything else flows more smoothly. And you can't do that without good bookkeeping.” – Avram Gonzales, Chief Strategist of Digital Harvest
Once these leaks are plugged, you’ll finally be ready to confidently allocate funds toward high-ROI marketing channels.
How Much Should a Startup HVAC Company Spend on Marketing?
Marketing budgets vary greatly depending on company size, growth stage, and goals. Here’s how to make an informed decision about your spending:
Understand the SBA Recommendation (and Why It’s Not Enough)
The Small Business Administration (SBA) recommends spending 3–8% of annual revenue on marketing. However, HVAC startups often need to reinvest a bit more aggressively due to their higher profit margins in the early stages.
Avram suggests aiming for 5–10% of total revenue to kickstart growth.
Set a Budget Based on Your Revenue Stage
Here are some example budgets:
- If your annual revenue is $500,000, allocate $50,000/year for marketing (~$4,000/month).
- For a smaller startup generating $250,000/year, start with around $25,000/year (~$2,000/month).
Keep in mind that these percentages may taper off as you scale and your overhead increases. At the startup stage, focus on lean, high-impact tactics.
The 5 Best Marketing Channels for HVAC Startups in 2025
Once your foundation is set and your budget is clear, it’s time to focus on marketing channels that consistently deliver results for HVAC startups.
1. Start with Google Local Service Ads (LSAs)
Google LSAs allow you to advertise at the top of search results when customers in your area look for HVAC services. Plus, the Google Guarantee Badge builds immediate trust.
The benefits include:
- Pay-per-click leads: Only pay when someone contacts you, ensuring cost-effective results.
- Flexible budgeting: Scale your spending up or down based on your needs
“You can get high-quality leads for $40–$85 by setting up Google Local Service Ads.” – Avram Gonzales
Allocate at least $1,000/month of your marketing budget to LSAs, especially in the early stages.
2. Skip SEO for Now
Search engine optimization (SEO) may be a long-term game-changer, but it’s not practical for startups with limited resources. Instead, focus on building a simple, functional website with:
- A homepage
- A list of services
- An About page
- A Contact form
Keep it basic and professional. You can revisit SEO once you’ve established a steady lead pipeline.
3. Get Serious About Google Reviews
Online reviews, especially on Google, are pivotal for building your business’s credibility. They also improve your visibility on Google LSAs and convert more leads into loyal customers.
Follow these tips for generating reviews:
- Use automated systems like NiceJob to request reviews after every job.
- Make leaving reviews simple by texting clients a direct link.
Reviews not only build trust but also boost word-of-mouth referrals. And the best part? They’re free to collect.
4. Use Angie’s List as a Temporary Lead Gen Tool
Angie’s List (now Angi) operates on a shared lead model, which might not be ideal long-term, but it can help fill your pipeline when you’re starting out.
- Limit spending to 25% of your marketing budget.
- Move away from reliance on shared lead platforms, as direct referrals and Google LSAs take over your lead generation.
5. Leverage Networking Groups Like BNI
Business Networking International (BNI) is a goldmine for startups looking to build trust and generate referrals locally. Groups often include real estate agents, property managers, and contractors who can connect you with leads.
The key to success is to:
- Target chapters with professionals whose clients are likely to need HVAC services.
- Consistently attend meetings and position yourself as reliable and trustworthy.
This approach requires time rather than money, but the payoff can be significant.
Be Strategic, Not Shiny: Avoid Common Budget Traps
Even with the best intentions, it’s easy to waste money on low-ROI activities. Here’s what to avoid:
Don’t Waste Money on Brand-Only Exposure
Activities like sponsoring events, wrapping vehicles, or running expensive school ads might feel good, but they don’t drive leads in the short term. Stick with marketing tactics that have trackable results.
Save Time with Set-and-Forget Systems
Streamline processes wherever possible:
- Automate review requests and lead follow-ups.
- Set a consistent budget for LSAs to avoid overthinking month-to-month spending.
Focus your energy on networking and building long-term referral pipelines instead.
Build Smart, Spend Smarter
Allocating your marketing dollars as a startup HVAC company doesn’t have to be overwhelming. Start by fixing the foundations, calculate a realistic budget, and invest time and money into strategies that yield measurable results.
Remember, you don’t have to do it all at once. Start with the basics, lean on predictable channels like Google LSAs, and focus on building relationships within your community for sustainable growth.
Looking for personalized advice? Connect with Avram Gonzales on LinkedIn or explore Digital Harvest for more tips on taking your HVAC business to the next level.