Where Do I Start When Restructuring My Business?

A Contractor University Member recently utilized the Ask-The-Expert Q&A feature within the member dashboard by submitting the following question and received the response below.

Contractor Question:

“I would like to restructure and grow my business. My question is, where do I start?”

Contractor University Expert Response:

“Start with an Honest Assessment.

Growth begins with understanding where you are now. I always start by evaluating the current state of the business — what’s working, what’s missing, and what needs improvement. Think of it as a gap analysis.

Before scaling a company, you need to develop yourself; company leadership starts with the individual. From there, your focus should move to building:

• A strong operating plan
• A solid financial structure
• An intentional sales and marketing strategy

Define Clear, Measurable Goals. Specific goals are the foundation for all decision-making. They help shape your business operating plan, including:

• A detailed budget (I highly recommend attending a budgeting and planning workshop for hands-on help)
• Departmental budgets that inform accurate pricing strategies

Establish your company vision and core values. As you grow and begin hiring, culture becomes critical. Your team must embody your values and carry the flag of customer experience. This is how you build people, train effectively, and create scalable systems for consistent delivery.

From My Experience in the HVAC Businesses, Here’s the Order That Works:

1. Departmentalize Your Financials – Break your P&L into clear business units (e.g., service, install, maintenance).

2. Set Proper Pricing – Pricing should reflect true overhead and margin requirements.

3. Use Gross Profit per Man-Day, Not Margin %, for Add-On/Replacement Pricing – This shift drives better decision-making and resource allocation.

4. Update Pay Plans – Move to performance-based compensation as soon as possible to drive productivity and morale.

5. Launch a Modern Marketing Plan – This includes:

• A high-converting website
• Google Business Profile management
• Local Service Ads + Google Ads
• Email campaigns
• Outbound marketing and PTU (preventive tune-up) outreach
• Real-time dashboards to track results

6. Recruit Strategically – Once your systems are in place, hire more techs and installers to support growth.

This framework isn’t theory — it’s the result of hands-on work in multiple HVAC businesses. Each step builds a stronger, more scalable foundation.”

Contractor University members can click here to log in to their member dashboard and submit a question through the Ask the Expert portal.