HVAC Masters of the Hustle - Episode #300: Derek Cormier, Owner of Climate Experts

Release Date: February 10, 2025

Introduction

In the milestone 300th episode of HVAC Masters of the Hustle, host JDubMoneyMaker welcomes Derek Cormier, the owner of Climate Experts, to discuss his journey, challenges, and strategies for building a successful HVAC business. This episode delves deep into the essentials of entrepreneurship within the HVAC industry, emphasizing the importance of mentorship, team culture, effective processes, and continuous personal development.

Derek Cormier’s Background

Derek begins by sharing his personal and professional background, highlighting his transition from a police officer to an HVAC business owner.

Derek Cormier [01:45]: "I started this business back in 2016, just one truck. My background is similar to yours. I started out in the police force... I decided I missed the trades though, so I moved back home in Melbourne."

Having grown up with a general contractor father, Derek had early exposure to construction and trades, which later influenced his decision to focus on HVAC—a sector known for consistent work opportunities.

Starting the Business: Challenges and Obstacles

Derek reflects on the initial years of his business, emphasizing the difficulties of transitioning from a technician and salesperson to a business owner without formal business training.

Derek Cormier [03:57]: "I really could only rely on the experience that I had. I was a tech, I was a sales guy, I wasn't a business owner."

He discusses the common pitfall of skilled technicians lacking business acumen, leading to overreliance on personal effort and unsustainable work hours.

The Importance of Mentorship and Best Practice Groups

Recognizing his limitations, Derek sought mentorship and joined best practice groups, which significantly transformed his business trajectory.

Derek Cormier [06:24]: "I joined NextStar in 2019. They gave me the business processes. I learned how to read a profit and loss, gross profit... our trajectory just started changing."

He underscores the value of learning from experienced mentors like Greg D'Attilli and John and Jackie Pink Rats, who fostered a collaborative rather than competitive mindset within the industry.

Hiring the Right People and Building a Strong Company Culture

As his business grew, Derek prioritized hiring individuals who complemented his skill set and contributed to a positive company culture.

Derek Cormier [10:03]: "My first employee was actually an office manager... She’s amazing now in an inside sales role."

He highlights the transition from a single-truck operation to a structured organization with specialized roles, ensuring efficiency and support for work-life balance.

Implementing Effective Processes and Accountability

Derek emphasizes the significance of structured onboarding, training, and accountability to maintain high standards and low turnover rates.

Derek Cormier [15:51]: "We use a software called Trainual... our turnover rates less than 3% and our retention rate is close to 100."

His comprehensive onboarding process includes mission statements, core values, and rigorous training, ensuring every team member aligns with the company's vision and standards.

Marketing Strategies and Leveraging Testimonials

Building a strong reputation through exceptional service and strategic marketing has been pivotal in Climate Experts' growth.

Derek Cormier [17:40]: "We had a reputation management system that automatically sends a text to invite reviews... we built it into the culture."

He describes an innovative incentive program that rewards employees for securing high-rated reviews, fostering a culture of excellence and customer satisfaction.

Harnessing Social Media and Team Engagement

Derek shares his journey into social media, underscoring the importance of leading by example to encourage team participation.

Derek Cormier [20:08]: "I believe in leading by example, not forcing your people to do things. If they saw me doing it and having fun, they wanted to become a part of it."

By involving his team in content creation and encouraging their ideas, Derek cultivated an enthusiastic and engaged workforce that actively promotes the brand.

Superior Installations: Quality and Differentiation

Derek discusses the meticulous standards his team adheres to during installations, setting Climate Experts apart from competitors.

Derek Cormier [21:43]: "I created a 180-point installation checklist... we use an insulating foam that gives off no VOCs... every single duct connection is insulated and sealed."

He emphasizes the importance of proper ductwork design and installation over merely focusing on high-efficiency equipment, ensuring long-term functionality and customer satisfaction.

Growth Metrics and Financial Management

From a single-truck operation in 2016 to a multi-million-dollar business, Derek outlines the financial growth and strategies that have fueled Climate Experts' expansion.

Derek Cormier [12:30]: "Revenue was pretty stagnant the first three years... last year we did about 6.5 million, this year we're budgeted to do 10.5 million."

He explains the implementation of daily huddles and meticulous financial tracking as key components that have supported consistent revenue doubling each year.

Networking and Personal Development

Derek values continuous learning and personal growth, attending various events and retreats to stay grounded and enhance his leadership skills.

Derek Cormier [31:43]: "I go to leadership events... meditation retreats... to make sure that I'm on a personal level in a really good place."

By involving his team in these experiences, he ensures that the entire organization benefits from shared knowledge and enthusiasm.

Future Goals and Vision

Looking ahead, Derek shares his vision for Climate Experts, focusing on sustainable growth, expansion, and fostering ownership among employees.

Derek Cormier [34:00]: "My goal is to open up five locations in five years... help some employees become owners and have some ownership in the branches."

He aspires to redefine the trades industry by prioritizing work-life balance, employee empowerment, and maintaining a positive company culture.

Key Takeaways for Listeners

Derek imparts valuable advice to aspiring HVAC business owners, emphasizing self-awareness and intentional goal-setting.

Derek Cormier [37:30]: "Know what you want... ask yourself, what do I want? Because maybe it's not just money... the money's gonna get you freedom... Keep asking yourself, why?"

His insights encourage listeners to deeply understand their motivations and make informed decisions to achieve their personal and professional aspirations.

Conclusion

Episode #300 of HVAC Masters of the Hustle offers a comprehensive look into Derek Cormier's successful journey in the HVAC industry. His experiences underscore the importance of mentorship, strategic hiring, robust processes, and personal growth in building a thriving business. Derek's commitment to quality, team culture, and continuous improvement serves as an inspiring blueprint for professionals aiming to ascend to the top 1% in the HVAC field.

Notable Quotes:

• JDubMoneyMaker [00:07]: "This episode is going to be absolute fire."
• Derek Cormier [03:57]: "I was a tech, I was a sales guy, I wasn't a business owner."
• Derek Cormier [06:24]: "After I joined NextStar, our trajectory just started changing."
• Derek Cormier [15:51]: "Our turnover rates less than 3% and our retention rate is close to 100."
• Derek Cormier [20:08]: "I believe in leading by example, not forcing your people to do things."
• Derek Cormier [34:00]: "My goal is to open up five locations in five years."
• Derek Cormier [37:30]: "Know what you want... keep asking yourself, why?"

Thank you for tuning into HVAC Masters of the Hustle. Stay inspired and keep striving for excellence in your HVAC endeavors!