Rapidly growing HVAC business in Houston. Needs to refinance expensive debt to thrive.
We provide the high-quality service and honesty of a small business with the scale and expertise of a much larger business. We are growing at over 60% year over year because our customers are recommending us to their friends. We see no end to the growth potential for the next 10+ years. We have invested heavily in technology and processes that scale as our business grows. Although revenues have grown by over 60% per year, expenses have grown by only 6%.
Once the expensive debt can be refinanced, we can employ the following measures to drive growth and profitability:
1. Place more focus on the highest margin / highest growth segments of Residential and Commercial Service and Replacement Business
- Build on the growth trend through Management Focus, Sales Incentives, Customer Reviews, and Technology Improvements
- Additional incentives and recognition of referrals
2. Continue to drive improvements in recurring revenue:
- Build and continue on the current growth trend (~30% YOY)
- Continue discounts and sales incentives to sign up for maintenance plans
- Commercial and Residential maintenance agreements create recurring revenue and customer loyalty. We have achieved 30% YOY growth in this area and expect to accelerate it in the future
- Our success in the lucrative replacement markets is directly driven by our success in selling customers maintenance agreements.
3. Educate customers on the value of reducing energy consumption:
- We are the trusted advisor to our core customers
- Properly maintained systems will use up to 40% less energy vs. a system that is not professionally maintained.
- Historically, we have only recommended a system replacement at the end of the expected life or equipment failure.
- Replacement for the sake of energy savings has a significant upside and will drive growth in Residential and Commercial replacements.
Additional growth opportunities
1. Acquire additional HVAC service providers. Now that we have achieved scale, we have the ability to acquire smaller HVAC service providers and fold their business into Maxx A/C. We have a simple earn-out model that will enable the owner of a small company to earn money on the business that successfully transitions to us.
2. Acquire Electrical and Home Automation companies. One of our strongest assets is our affluent customer base. These customers are always asking for referrals in Electrical and Home Automation especially. Bringing these services in-house will enable us to capture more wallet-share from our best customers and increase the likelihood and frequency of referrals.
Ready to Ask For Funding for your company?
Post a Funding Request