Episode #222: Leaving Finance to Build a Legacy in HVAC

Release Date: July 11, 2025
Hosts: John Wilson & Jack Carr
Guest: Thomas BB, Certified Financial Planner and HVAC Business Owner

Introduction

In Episode #222 of Owned and Operated - A Plumbing, Electrical, and HVAC Business Growth Podcast, hosts John Wilson and Jack Carr delve into the inspiring journey of Thomas BB, a certified financial advisor who transitioned into owning and operating an HVAC business. This episode provides valuable insights into the challenges and triumphs of shifting industries, managing a business remotely, and strategies for growth and acquisition in the HVAC sector.

From Finance to HVAC: Thomas's Transition

Thomas BB shares his unconventional path from financial advising to HVAC entrepreneurship. Three years ago, prompted by his father's need to exit his struggling HVAC business, Thomas decided to purchase the company as what he believed would be a passive investment.

Thomas (00:44): "I was actually looking at it more as a passive investment. Like, hey, classic. The note gets paid off in five years, and then I'm maybe getting 50 to 100 grand a year, passively. Idiot."

Realizing the misconceptions of passive ownership, Thomas recounts the initial struggles he faced managing the business remotely from Austin, Texas, while the company operated in Blair, Nebraska.

Thomas (04:58): "I'm just financial advisor by day now, seemingly also an HVAC operator by day, I can't say by night because I spend a lot of time dealing with it by day and just trying to figure it out and grow something fun."

Navigating Remote Business Management

Managing an HVAC business from 800 miles away presented unique challenges for Thomas, especially during the unforeseen slow season. The lack of on-site presence necessitated the development of robust systems and remote management strategies.

Jack Carr (06:11): "How many people or trucks on the road essentially was how big was the business when you bought it?"

Thomas BB (06:23): "It was two guys, literally my dad and another employee. Yeah, when I bought it."

Thomas underscores the importance of building efficient systems to ensure the business runs smoothly without his constant physical oversight.

Thomas BB (07:31): "I wanted to create something more like that. Maybe work from Italy for a month or go travel around and still run this business. That's kind of what I want to create."

Achieving Growth and Scaling Operations

Over the first year, Thomas shifted from a passive to an active role in the business, implementing strategies that significantly boosted revenues. Starting with $400,000 in top-line revenue, he navigated through hiring and system improvements to achieve over $1 million in revenue within a year.

Thomas BB (09:38): "We ended up doing over a million last year... I think we could flirt with two this year."

Jack emphasizes the significance of incremental growth, highlighting that even a 20-30% increase is substantial in the industry.

Jack Carr (11:11): "A 20, 30% growth is a huge win by any metric."

Strategic Acquisitions and Market Expansion

The conversation shifts to acquisition strategies, with Thomas exploring the potential of expanding his HVAC business through regional acquisitions. He contemplates whether to stick within Nebraska and the Midwest or to consider other regions like Florida, balancing his familiarity with local markets against opportunities elsewhere.

Thomas BB (12:43): "I prefer Nebraska just because it's where I'm from and what I know... maybe have a shop to go to and try it out here."

Jack discusses the merits of regional plays in acquisitions, noting that building a regional footprint can lead to sustainable growth without the complications of managing disparate markets.

Jack Carr (16:28): "If you're able to manage them effectively from afar, you have no geographical bounds on where you can buy. And so there's so much more opportunity."

Hot or Not: Evaluating a Potential Purchase

In the "Hot or Not" segment, Jack presents a potential HVAC business acquisition for evaluation. The business in question has a top-line revenue of $2.1 million with a 5% net margin but lacks essential infrastructure like a CRM system and relies on outdated phone systems.

Thomas BB (23:39): "Sign me up. I'm in."

Despite initial enthusiasm, Jack highlights critical concerns, such as the owner's continued salary obligations and the absence of modern business systems.

Jack Carr (26:22): "You can't run that apart if they need to do a part. You can't meet the vendor... it has to be a Zoom call."

Thomas considers the investment, weighing the low purchase price against the operational mess and potential for recovery.

Thomas BB (30:16): "I probably still would because I'm sick like that. I'm a masochist."

Jack reveals the outcome of a similar past purchase, illustrating that with the right interventions—like raising prices and implementing CRM systems—a struggling HVAC business can experience significant turnaround.

Jack Carr (31:37): "He was able to convert the customer over. He made it a huge focus early on to like use what's in the shop."

Overcoming Challenges and Building a Real Business

Thomas reflects on his ongoing efforts to stabilize and grow the business, acknowledging the initial missteps and the progress made through active management and strategic adjustments.

Thomas BB (36:32): "I want maybe a full year of feeling like I'm doing things mostly right... holding techs accountable, holding sales guys accountable."

He shares his ambition to create a sustainable, profitable business that not only generates revenue but also fosters a positive work environment for his technicians.

Thomas BB (40:13): "How do I create this hybrid where it is a profitable business but it's a place that techs do want to come and stay."

Key Takeaways

• Active vs. Passive Ownership: Thomas's journey underscores the reality that owning a small HVAC business requires active management and strategic involvement, especially when operating remotely.

• System Implementation: Effective remote management hinges on establishing robust systems and hiring competent managers to ensure seamless operations.

• Growth Through Acquisitions: Strategic regional acquisitions can drive substantial growth, provided the new businesses are integrated with efficient systems and managed effectively.

• Learning from Challenges: Initial struggles and mistakes are integral to the learning process, enabling business owners to refine their approaches and achieve sustained growth.

Conclusion

Episode #222 offers a candid look into the challenges of transitioning from finance to HVAC ownership, managing a business remotely, and the intricacies of scaling and acquiring within the industry. Thomas BB's story serves as both a cautionary tale and an inspiring example of resilience and strategic thinking in the face of entrepreneurial challenges.

Jack Carr (39:46): "I mean, most of it's recoverable in a way, shape or form. If every business ran the same then we'd all be doing exactly the same playbook and top line and bottom line and everything."

Listeners are encouraged to subscribe and engage with the podcast for more insightful discussions on growing home service businesses.

For more information, visit www.ownedandoperated.com.