Streamline Your Projects with Our HVAC Invoice Template for Planning

Hvac invoice template for Planning

hey if you're starting or expanding an hbac business and you maybe have gone to the bank for a loan to help with the startup cost or the expansion costs and the bank has asked you for a set of financial projections uh then you have come to the right place because we have created a financial projection template built specifically for heeding and Cooling and hbac uh businesses and I'm going to walk you through this template I'm show you how to fill it out how you can create a set of 5-year Financial projections uh for your business um I am also going to uh give you a discount if you make it to the end of the video I'm going to uh give you a discount code that you can access that you'll be able to purchase this template add a discount we've also put a link to this template in the description of the video below uh so with that let's go ahead and dive into the model okay so we are starting with the end in mind and we have our add a glance tab pulled up here uh which will show you what you'll get at the end of the process of creating your projections you're going to get some nice charts and graphs and tables um that you'll be able to pull into a business plan or a pitch deck or um just be able to present to your Banker or potential investor and you're also going to get a 5year income statement summary 5year cash flow summary 5year balance sheet summary and then your income statement cash flow and balance sheet all broken down by month for each of the five years so that's that's kind of the end of the process but we have a little bit of work to get there and so I'm going to show you how to fill this out in order to create a set of projections for heating and cooling company all right so I'm on the input assumptions Tab and what you'll be able to do here is uh put in your start month you can put in a personal investment now if you're trying to get a SBA loan or a bank loan and typically they're going to want some in the game so I'm down payment uh from you or from the owners coming into the business and so we've put a $50,000 personal investment um into the into the template here as an example uh now we also have accounts receivable terms and inventory beginning inventory um so this the account's receivable this is just saying that hey 80% of our customers are going to pay us when we provide the service 20% will pay us on 30-day terms so if you have uh commercial customers let's say um your commercial customers might pay you in 30 days um so let's say 80% of your business is residential 20% commercial then a 8020 split here probably makes a lot of sense on the inventory side um if you have a um some initial inventory that you're going to start with as you start up um you can put that in here all right you might also have some tools so maybe a truck or two uh and maybe a building to store um store some inventory store your truck store your tools that sort of thing and so that's what we've got input here 50,000 for tools 100,000 for trucks and 100,000 for a storage building and we put that all in month zero which means uh the beginning of the model so if you were to say hey we're going to start without a building but we want to buy we want to buy a small building in um six months you could put month six here uh to indicate that that purchase is going to be made in the future there all right so we have $250,000 worth of you know fixed asset startup cost here plus $15,000 of inventory um so we're going to need a loan because we've only put in $50,000 here so we're looking to borrow 250,000 here from an SBA loan on 10-year term at 8% if you have other loans you can add those in here as well now let's jump to our input Revenue tab so here is where we can uh we can project or forecast our revenue for both the residential business as well as the uh Commercial Business and so the way we've got this set up is that you can do add in an advertising spend so we're saying hey we're going to spend two $2,000 a month we think it's going to cost us $20 to get one um lead for a residential uh hbac business so we'll have 100 leads from Paid advertising we'll also have organic leads just word of mouth or people that are searching for Us online and uh find us organically so we have 120 leads a month we think we're going to convert 10% of those leads into customers so that gives us 12 new residential customers in in month one then we can break down here the different Services the installation and repair services that you provide so we have furnace for residential furnace and AC just an AC furnace repair AC repair um duct work Services you get the idea so you can input whatever Services you provide in this column you're going to want to put in what percentage of of these uh 12 new customers what percentage of those customers are going to purchase a furnace what percent a furnace an AC and break that down for us so um what you expect your kind of the breakdown of your services to be you can enter an average price point for each of those services and then a cost of materials and cost of Labor and so you probably are shooting for some gross profit on all your jobs you know maybe you're shooting for you want a 40% gross profit on all your jobs um but maybe you think you're going to average or you want to be conservative and so maybe you're going to average 30% gross profit so on this furnace for example what we've done here is we're saying that we've got a little calculation up here and it just says the average price point times 35 so 35% um cost of materials and then we did the same thing for cost of Labor so you add those two together that's about 70 or that is a 70% uh cost of goods sold giving you a 30% gross profit margin on the job and so whatever you think uh you expect based on your experience and the way you plan the price and that sort of thing um whatever you expect your cost of good sold to be you want to enter in those costs here now you have the ability to increase the the price uh the the price of those Services annually so you can just put in let's say we're going to increase our prices 5% annually and we think our cost of good sold is going to increase by 4% annually so hopefully we'll increase our margin a little bit each year is the idea now that was the uh residential installation and repair services but we may also have a program where we do a residential uh you know preventative maintenance and we try to convert some percentage of our new customers that um to sign up for ongoing kind of Maintenance and monitoring service and so um we've got total we're saying 20% of our new customers are sending up for the ongoing maintenance program so we've got two new customers a month and we think hey um 3% of our customers that are signed up for this program are going to cancel each month so there's going to be some percentage that will cancel and then this will forecast um how many active ongoing customers you have signed up for this U maintenance and monitoring program and let's say it's 49 bucks a month for a residential and so we what this will do is multiply the number of active customers you have for that times the price point to give you your monthly Revenue there and so we're just going to assume on the cost of good sold here a 33% cost of good sold as a percentage of that mean some monitoring Revenue um you are probably going to have to send a tech out once a year to do that preventive maintenance so that would be your cost and maybe your your shooting for that 33% range so this will calculate that residential maintenance cost to so and now we basically go through and do the exact same process for the commercial side of the business the main difference we have here is that um hey we think the cost per lead for a commercial customer is going to be much higher so we're going to have less leads um but but the leads that we do have hopefully we're going to convert a higher percentage so we've got a 20% conversion right here and then all the Commercial Services you know are just going to be higher price points right U maybe lower margins for commercial work possibly because they're bigger jobs maybe more competitive um so perhaps lower margins but uh larger dollar amounts that we're working with same thing you can increase the uh growth rate in prices for Commercial Services and cost of goods sold and then you could have the same thing commercial maintenance uh services that you provide as well again probably just higher price points maybe different conversion rates that you might expect for that now as we move down we can see sales commission so you might have the ability to provide sales commissions to your to your sales team and maybe it's going to be a different percentage commission for residential services compared to uh Commercial Services so you have the ability to enter in those different uh sales commission percentages you know residential maybe there's a little bit more margin you can afford to to do that 7% maybe on the commercial work it's more competitive it's tighter margins and so you've got maybe 5% Commission on that and then this will project your total revenue and your total cost of good sold now we can move over to our input other expense tab now these first three rows these are blacked out here because they're actually calculated already on the revenue tab so the advertising for residential commercial and the sales commission we've already gone through we've already added those assumptions in but we've just got a slot here for them um for the financial statements now we've got uh some other operating expenses here we have credit card fees and uh credit card fees are typically going to be based on a percentage of Revenue because uh every time you collect payment via credit card credit card compan is going to charge a percentage of what you collect and so what we've said here is that hey .02 or 2% that's how you'd enter in 2% of our total revenue is going to go towards credit card fees could have insurance accounting rent uh I also have equipment rental so there may be specialized equipment that you're just renting or or vehicles that you're renting and so that is set at a 05 or 5% of total revenue um you can also select to make that as a percentage of any of these expenses you can say well this is just going to be a percentage of the rent residential um installation service revenue or a percentage of the residential maintenance Revenue so you can kind of break down um break that down however you'd like all right so now on the input salaries and owner draw tab we have the ability to add you know a receptionist with a starting month right away month one you're going to have a receptionist in office taking calls from customers and maybe a manager but then as you grow uh you are going to have have uh maybe site supervisors here and so you can see that you start them in month 13 maybe we start another one in month 25 another one in month 37 so each year we add another site supervisor now one thing to keep in mind is that your technicians their cost um their wages is already taken into consideration here with the cost of Labor so you don't need to double enter U you know if you have a technician they're already getting paid through that cost of Labor calculation these salary positions are kind of the overhead for the company not tied to specific jobs so be aware of that so that you're not double counting and with that're we are done we're back to our add a glance tab here and so what you'll want to do is just make sure that once you've entered in all your assumptions take a look at your net income and your gross profit percentages and just make sure that those seem to align with uh industry expectations so if you get done and you have a net income percentage of 50% um you you're probably off something something's probably wrong um you know net income percentages for an hbac uh business are probably going to be in the single digigit uh range so you're probably not looking at 40 50% net income profit margins here so keep that in mind as you go all right so that's it um thank you for making it to the end of the video as I promised uh we will give you a discount code so there is going to be a link down in the description of the video below uh to a form where you can put your email address in and then it will email you our most upto-date coupon code so you can use that at checkout and when you check out and and there'll be a link to this template to actually purchase the template as well so there'll be two different links in the bottom of the video description um grab that coupon code go ahead and purchase a template use that discount code on us and hey while you're down there if you thought the video was helpful um give us a like and And subscribe to our channel so we can help more uh business owners get started and grow their business thanks