Without proper maintenance, steam and hot-water boilers in hydronic heating systems corrode and become less efficient, leading to additional service calls and a shorter life span. Replacing a heating system can be very expensive, costing home and building owners thousands of dollars. To help prevent this, encourage your customers to spend a little money every Read more
Industry Blogs
Without proper maintenance, steam and hot-water boilers in hydronic heating systems corrode and become less efficient, leading to additional service calls and a shorter life span. Replacing a heating system can be very expensive, costing home and building owners thousands of dollars.
To help prevent this, encourage your customers to spend a little money every year on services to maximize the life of their heating systems and prolong a significant expenditure.
With that said, there are some best practices when it comes to servicing a boiler not firing up or flushing different types of hydronic heating systems. In such a system, water expands when it is heated and contracts when it is cooled; i.e., enlarges or reduces in volume. Known as thermal expansion, this is the tendency of matter to change its shape, area, volume, and density in response to a change in temperature.
To accommodate thermal expansion, storage is needed within a system. Two types of systems accommodate thermal expansion: a closed loop (sealed) system and an open loop (vented) system.
Before we dive into how and when to flush a heating system, let’s take a closer look at the difference between a closed loop system and an open loop system.
What is a Closed Loop System versus an Open Loop System?
Closed Loop
In short, a closed loop system is closed to the atmosphere. These systems integrate expansion tanks to accommodate the expansion and contraction of water. A closed system also has a built-in, dedicated return line to carry water back to the heating source (usually a boiler), preventing the possibility of warm or cold spots from mixing in the water supply, as happens in an open loop system.
Usually smaller than open loop systems, closed loop systems there take up less space, while assisting with cleanliness, improving water quality, and reducing the entry of oxygen into the system.
As already noted, a closed loop means less potential for water to enter the system, and that decreases the risk of corrosion.
Open Loop
An open loop system is open to the atmosphere and draws water directly from the hot or cold water lines to which it is connected. Open loop systems have an open expansion tank that accommodates expansion and contraction within the system. More evaporation happens with this type of system, leading to more water being introduced and possibly contaminating the system.
While closed loop systems aren’t as common, they are usually older heating systems and often cannot reach higher pressures. As mentioned, these units allow pollutants to enter the system water, so feed and expansion tanks require periodic cleaning. That enables oxygen to enter the system, contributing to corrosion.
The pipework run from the expansion tank location to the mechanical room where the boiler is located can be grueling and will need insulating to protect against freezing. (More on freezing temperatures later.)
When to Flush a System
Flushing A Hot Water System
Newer residential hydronic systems with hot-water boilers are closed-loop. We do not recommend opening and flushing a closed loop system unless you absolutely have to. Why? Because the enemy of such a system is actually oxygenated water.
However, like a car, closed loop hydronic heating systems must be regularly serviced to prevent problems and maintain efficiency. But unlike a car, they don’t cough, stutter, give off smoke or produce a foul odor when something goes wrong. The system just silently continues doing its job, slowly deteriorating in performance and failing much sooner than it should.
However, sometimes the system will provide some clues that it is acting up — like making a rumbling noise as minerals start to collect in the system. After all, a closed system still has a component that feeds water into it if it needs to.
Additionally, your customer might have a system leak that they weren’t aware of, adding oxygenated water to the system for years. That will cause many problems and change the pH level in the system.
For a closed-loop residential boiler to operate properly, the liquid it circulates must maintain the correct pH levels. To truly identify if you have a potential leak or sludge buildup, you must conduct a pH test to determine if the system should be flushed with a cleaner. We recommend conducting a pH test at least once a year.
Start with a visual reading by opening the drain valve and bleeding off some liquid. If it appears clear, proceed with a pH test. To run a pH test, you can buy test strips that provide a color-coded readout. If you need a more precise reading — say, for an aluminum system — use a digital pH meter.
The correct pH level depends on the composition of the heat exchanger. Systems with a cast iron, stainless steel, or copper exchanger are resilient and usually have a wide range of acceptable levels. Aluminum is more prone to corrosion and may require a specific pH number. Read the system’s installation and operating manual to determine the acceptable pH range. We recommend using a corrosion inhibitor to balance out the pH — a seamless fix. However, if the buildup or corrosion has been going on for several years, the system will probably not recover with this treatment. Instead, you’ll have to use a cleaner to flush the system to maximize boiler efficiency.
Check out this blog that covers the impact of pH in hydronic heating systems and how to test and balance levels.
Flushing A Steam Heating System
Larger steam boilers are usually used in multifamily or commercial applications. Years ago, these large steam boilers held thousands of gallons of water. But, as time went by, steam boilers became more efficient. Today, more compact units are available.
As a steam boiler heats up, water turns into steam and eventually flows through the system. When that steam condensates, it all returns to the boiler. But newer, more compact boilers don’t have nearly the capacity of their older, larger counterparts, so the former run out of water quickly.
Over the years, the industry has developed components to sense when the boiler is low on or out of water. They will shut the boiler down, giving the system time to fill up. So these safety components essentially prevent the unit from firing if it’s low on or out of water.
Some components are electronic. Others involve a ball sitting inside the unit that floats up and down as the water level of the boiler changes.
Timers on these systems will indicate a shutoff for, say, one to three minutes, providing time for all the condensate and water to return to the boiler. Then, if the return water is not sufficient, electronic and solenoid valves will open to let more water in.
That, of course, permits corrosion-causing, oxygenated water into the system. Which is why these safety components must be flushed from time to time, because of the likelihood of mineral buildup.
Which is why steam boilers require regular maintenance and should be flushed with a cleaner or corrosion inhibitor at least twice a year — typically at the beginning and at the end of the heating season.
Preventative Maintenance and How to Flush a Heating System
Depending on how dirty the system is and if you don’t want to take it out of operation to completely flush it, we recommend using a cleaner like Hercules® Boiler and Heating System Cleaner. That’s because it can stay in the system and doesn’t require flushing the system.
Hercules Boiler and Heating System Cleaner is formulated to clean and condition all steam and hot-water boilers in hydronic heating systems. The cleaner contains silicone to protect pumps by lubricating seals, maximizing efficiency and preventing valve clogging and corrosion.
Still, be sure to check the pH levels in the system. If the first liquid sample in your visual pH reading contains a lot of rust or sludge, you must take a more aggressive approach by flushing the system with a system restorer. Sludge indicates corrosion in the heat exchanger, fittings or piping.
Here’s how to remove sludge:
- Drain off about a gallon of liquid and replace it with three quarts of water and one quart of a system restorer like Hercules® Sludgehammer™ System Restorer & Noise Reducer, which removes scaling and sludge deposits.
- Let the solution circulate for two hours.
- After 2 hours of cycling, dump the system. Leaving the chemical in for too long can damage metal pipes and fittings and ruin the heat exchanger.
- Refill the system with a blend of water and inhibited virgin propylene glycol to prevent corrosion and scale buildup inside the heat exchanger and piping system. Always reference the system manufacturer’s installation and operating manual to ensure you use the proper blend.
Watch this video to learn how to remove sludge and corrosion in hydronic heating systems with Sludgehammer.
While Flushing the System, add Antifreeze
Many contractors use only water in indoor hydronic heating systems. However, water freezes at 32° Fahrenheit; so if there is a power outage, pipes could freeze and burst. In addition, as we’ve learned, water also promotes corrosion and mineral buildup.
Adding an inhibited virgin propylene glycol antifreeze to a boiler corrects both of those problems. Installing inhibited virgin propylene glycol into hydronic heating systems is also a requirement to maintain warranty by leading boiler manufacturers.
The type of antifreeze you’ll need depends on the climate and the metal content of the system.
- For cast iron, stainless steel, or copper systems, choose an antifreeze solution like Hercules® CryoTek™ AG, -100, Original or Universal.
- For systems with aluminum heat exchangers, the best choice is an antifreeze that works with any type of metal, such as Hercules® Cryo-Tek™
- Depending on the level of freeze protection required to have an effective and efficient operating system, you can choose blends like Cryo-Tek™ AG or Universal and blend them with distilled water to arrive at the proper freeze protection. Or you can purchase pre-blended formulas like -100 or Original.
The active ingredient of antifreeze is propylene glycol. Avoid antifreeze products that contain “used” propylene glycol, which may introduce minerals and other foreign particles to the boiler. Look for a label that reads “inhibited virgin propylene glycol.”
Author’s biography: Sean Comerford is a Technical Applications Manager at Oatey Co. He is a third-generation tradesman with nearly 20 years of plumbing experience, including serving as the lead plumber for commercial/residential new-construction, service and fire protection jobs. He holds a State of Ohio Fire Protection License for Sprinkler and Standpipe.
By: Jason Abajian, North America Water Sales Manager at Resideo Many people have water-leak stories, now there is a solution Winter arrived a bit earlier than usual here in the Upper Midwest, and the moment I saw the projected cold snap, my mind immediately went to the maintenance involved in preparing my home for a long Read more
By: Jason Abajian, North America Water Sales Manager at Resideo
Many people have water-leak stories, now there is a solution
Winter arrived a bit earlier than usual here in the Upper Midwest, and the moment I saw the projected cold snap, my mind immediately went to the maintenance involved in preparing my home for a long winter in Traverse City, Mich., where our average snowfall is between 125 inches and 145 inches each year.
Questions like, ‘did I blow out my sprinkler lines so the water doesn’t freeze and crack the copper pipes and sprinkler heads?’ Or ‘is my boiler tuned up and ready for another heating season? I hate to leave my home unprotected.’ It’s my family’s sanctuary and a massive financial investment.
The force that can carve out the Grand Canyon can also carve out massive damage to your home. How can we protect our homes from this great force of nature? Knowledge and preparation are critical.
Water Leaks are on the Rise
Water makes up most of the human body and our earth, it’s more important than food to sustain life, and yet it is the largest menace for home insurance claims. Each year, about one in 60 homeowners files a water damage claim, accounting for 20% of all homeowner insurance claims.
I have inflated this statistic by having dealt with two water damage insurance claims myself. My first claim occurred in 2008. Four days after renting out our home after we struggled to sell it, the renter left a bathtub faucet running upstairs while they were at work and the loft next to the bathroom imploded into the living room below. If that was not bad enough, several years ago my friend’s four-year-old daughter flushed a towel down my current basement toilet and the towel then wrapped around my sewage sump pump and clogged it while the toilet continued to run. I came home late that night to 3 inches of water in the basement. The worst/best part happened when my plumber was replacing my sump pump. He offered me a water leak detector, so I’d be alerted if something like that happened again. The irony was that I already had a sample sitting in a box soaking wet – unused!
Beyond personal residences, think how vital water leak prevention devices can be in multi-family dwellings like condos and town homes, home rentals and even new construction. For example, if you were living in a condo and the property above yours had a pipe burst while your neighbor was away. Your neighbor’s nightmare is now yours, and the property below you and the building management company. Now the home insurance claim isn’t limited to your condo alone.
The same goes for any unoccupied home. Home rentals are notorious for large water damage claims due to faucets and fixtures being left open to run. I know from personal experience. Knowing your water supply line is protected, similar to a connected thermostat communicating your property is properly heating and cooling, is worth the price!
Stopping Water at the Source
The good news is that 93% of water leaks can be prevented. Utilizing well-placed water leak detectors that are connected to a water shutoff valve can help prevent catastrophic water damage. In 2021, Resideo Water Leak and Freeze detectors helped save 3 million gallons of water and helped prevent an estimated $1.9 million in insurance claims.
Today, I use Resideo’s new Braukmann L5 WiFi Water Shutoff Valve on my home’s water main and simply shutoff the water flow into my entire home while I travel via the Resideo app. I can also pair Resideo’s WiFi Water Leak & Freeze Detectors in high-risk places and use the actuator’s water sensor cable plugged directly into it – if any part of the cable gets wet, it will close off the actuator stopping water from entering our home. The water cables can be daisy chained up to 500 ft to protect a complete mechanical room. Pipes can leak and burst anywhere throughout the home, especially during the change of seasons, and this product offers me personal peace of mind.
Here are a few additional scenarios that could warrant a water management system and/or leak detection device:
- Air handler in the attic. Using water leak detection devices in or around a condensation pan would be a good idea so as to identify any water damage threat in an unconditioned space.
- Dehumidifier in a crawl space. The average dehumidifier captures 30-70 pints of water per day and this moisture needs to go somewhere. A water leak detector delivers peace of mind when the unit is out of sight.
- Laundry on the second floor. Water damage from a second story can heavily increase the liability of a water damage claims above one’s insurance deductible. A water leak detector will quickly alert you to an issue.
- Tankless water heater installed. If a homeowner has one of these, it’s likely they are resource conscious and may be more interested in reducing the amount of water lost to leaks.
- Sump pump pit. These devices are critical for providing protection to one’s home from ground water. Knowing there is a problem allows you to act before three inches of water fills the entire basement.
- Recent leak damage. Just as my plumber offered me when I had a water damage to my basement – there is no better time to offer water protection than after a customer has felt the sting of a water insurance claim.
What is peace of mind worth to you and your customers? The cost of water is rising like other utilities and so are monthly insurance premiums. Knowing that I do not need to worry about a pipe burst destroying my home and savings account while I visit the in-laws this Christmas will save some of my sanity, and you can’t put a price on that.
A wet basement is a scenario that no homeowner wants to experience, but it is a relatively common occurrence. As it rains, water seeps down and raises the water table. As that water reaches the foundation, it creates what’s known as hydrostatic pressure, placing great amounts of stress on the concrete. That pressure can cause Read more
A wet basement is a scenario that no homeowner wants to experience, but it is a relatively common occurrence. As it rains, water seeps down and raises the water table. As that water reaches the foundation, it creates what’s known as hydrostatic pressure, placing great amounts of stress on the concrete. That pressure can cause various problems ranging from water seeping through the basement cove joint to cracks appearing in your concrete. Only through the addressing of hydrostatic pressure can these problems be stopped.
But not every basement waterproofing system is made the same. Even with an interior basement waterproofing system in place, if the components are not properly installed or well-designed, the system can fail. This means that all that money you spent to fix your basement must be spent again.
This is called tear or rip out, where the original system must be torn out and replaced with a new one.
To keep your basement protected from the effects of intrusive groundwater and moisture, it is crucial to have it waterproofed with quality products and methods that will perform even under serious conditions such as heavy rainstorms.
Components in a Basement Waterproofing System
Even if there aren’t cracks in your floor slab or basement wall, water can still seep through the cold joints because of this water pressure (hydrostatic pressure). By targeting this hydrostatic pressure, you can keep the water out of your home. This requires what’s known as an interior basement waterproofing system.
The components for an interior basement waterproofing system typically include:
- Drainage channels, also known as drain tile and sometimes French drains
- A sump pit and a sump pump
Depending on your situation, there may be other components required such as vapor barriers and dehumidifiers. But the main drivers for your basement waterproofing system’s performance are the drainage channels and the sump pump—without these two, there’s no ability to capture and remove incoming groundwater when it rains.
Let’s take a closer look into how to make sure that your drainage channels and sump pump are prepared for any rainy day…
Drainage Channels
Drainage channels can come in different forms and sizes. This is important to know because these channels can affect the performance and longevity of your basement waterproofing system’s drainage ability.
The Most Common Drainage Channels
Commonly used drainage channels tend to come in the form of perforated corrugated channels. The reason corrugated pipe is the most common product is that it’s the cheapest for the contractor to buy.
Corrugated pipe comes in a giant roll, like a garden hose, but it’s wider, from three to four inches wide. But it’s wiggly and difficult to install straight.
There are a number of disadvantages to using corrugated channels including:
The coiled shape of the corrugations creates grooves that trap debris and water, leading to sitting water, debris build-up, and eventually clogged drainage channels.
Corrugated drains are hard to install flat—they tend to bend, rise and dip, leading to an uneven path for water. The potential to trap water rather than flow it towards the sump pit is commonplace.
These drainage channels tend to have small perforations, which means less water is able to enter at any one time, and it can be prone to get clogged by debris.
Even non-corrugated drainage channels may have trouble transporting water fast enough. A round drainage channel can lead to debris settlement, slowing down water flow and eventually clogging.
Specially Designed Drainage Channels for Interior Waterproofing
There are two significant design differences in interior drainage channels.
- On-the-footer design
- Beside-the-footer design
These differences make all the difference to draining water from your basement.
- On-the-footer systems are designed to be installed faster and easier but drain less water.
- Beside-the-footer systems require more labor but provide for a larger capacity and faster discharge of water.
The price difference? Negligible.
The Differences in Basement Drainage Channels: On-the-footer vs. Beside-the-footer
- On-the-footer systems are installed on the concrete footer of the home. The footer is built to be perfectly level. This is so that the rest of the structure that sits on the footer has a level starting point. Putting a drainage channel on top of the footer means that the channel is level as well and water in the channel doesn’t drain away until there is a buildup. This slow build-up causes these systems to leak when water enters them quickly – such as during heavier rain storms.
- Beside-the-footer systems are installed deeper and are positioned beside the footer. This allows for pitching or slanting these channels toward the sump pit. Pitching allows for faster drainage. Pitching also allows for all the water to drain, not sit stagnant.
Homeowners may want to note: Contractors that favor the on-the-footer method may argue that the beside-the-footer system places the drainage channels into a “Mud Zone” that leads to fast clogging. But this kind of statement isn’t true and doesn’t contribute to developing an effective solution that meets the needs of homeowners.
Read the next section to see why on-the-footer systems don’t perform as well and why a beside-the-footer system can provide better outcomes.
What to Look for in a Drainage Channel
Your basement waterproofing system needs a drainage channel that fulfils at least these requirements to ensure efficient and long-lasting waterproofing…
- Non-corrugated, smooth, and flat surface to prevent standing water and debris from clogging it.
- High capacity: most of the drainage channels in the market have a capacity of around 1 gallon per foot of channel. This isn’t enough, especially in heavy rain conditions. Check to see that your drainage channel has a higher capacity than 1 gallon per foot.
- Perforations: The drainage channel should have large perforations that can take in more water. But not large enough to let drainage stone in. This is crucial, especially during heavy rain. Perforations should also be situated on two opposite sides to account for water coming through the cold joints as well as water that rises up to meet the foundation.
- On-the-footer systems only allow for water to enter from a single side.
- Deeper is better as the system can start draining water earlier. A beside-the-footer system allows for this.
- As discussed above, ensure the channel can be pitched toward the sump pit. Laying a channel flat, such as with on-the-footer systems, is asking for trouble.
Sump Pumps: The Beating Heart of a Waterproofing System
When the water reaches the sump pit, it is the sump pump that finishes the job by pumping the water out of the basement or crawlspace. By pushing water out of the sump pit and through a discharge pipe, the sump pump moves the water out of your home and to a location away from your foundation. But there are challenges that your sump pump can encounter, especially during a storm…
- Sump pumps can shut down in the event of a power outage.
- Sump pumps can fail at any time due to clogging, faulty or jammed float switches, or other mechanical failures – you won’t know until your system isn’t working.
- The pump gets overwhelmed with too much water and can’t pump it out fast enough. This causes the entire system to back up with water and floods the basement.
- Different sump pumps offer different levels of power. Many systems come standard with a ¼ horsepower pump.
Solutions
To address the first two concerns, consider getting a basement sump pump system with a battery backup pump. A battery backup pump provides a second line of defense in the event that the power goes out or the first pump fails for any reason.
Two things can prevent the system from becoming overwhelmed. A larger standard sump pump and a redundant pumping system will deploy both the main pump and the battery backup pump simultaneously to pump out as much water as the drainage channels can throw at it.
Sump pumps typically provide ¼ horsepower—but there are options that offer higher levels of power.
High-Capacity Protection Against Rainy Days
There are many waterproofing solutions out there, but your home deserves the best. The more prepared your waterproofing system is for heavy rain and other unexpected situations (like power outages), the better protected your home will be. From high-capacity drainage channels to high-powered sump pumps with battery backups, make sure to keep your home safe from all those rainy days with the proper components for quality basement waterproofing!
Todd Prosan is the President and Co-owner of 58 Foundations, a company that provides quality basement waterproofing, crawlspace encapsulation, foundation repair, and mold remediation solutions for homes and commercial properties. For over 30 years Todd has been a leader in the home repair and improvement industry focused on training, product design, best installation methods, business development, and a forefront thinker in the basement, crawlspace, and foundation repair industries.
Prior to 58 Foundations, Todd was the director of contractor and business development for Grate Products LLC. Todd has also been the president & COO for B-Dry, LLC and as the president and VP of operations for BDS Management Group following a merger of the two brands. During Todd’s tenure, annual revenue increased, operating efficiency improved, and operational and growth strategies were implemented for 11 company-owned markets and 33 franchised locations across the US. Todd coached, trained, and lead ten regional managers and 150+ employees. Todd has also held the positions of VP of Operations for Highway Markings Inc., VP of Operations for Lovell Farms & Envirosafe Laboratories, and Business Development Manager for Professional Manufacturers Representatives.
Let’s face it: no one can work forever. After years of building and managing your HVAC business, you will have to pass the baton to a successor at some point. As the baby boomers generation ages, it’s a cold hard fact that many contractors can no longer keep up with the ever-changing demands of the Read more
Let’s face it: no one can work forever. After years of building and managing your HVAC business, you will have to pass the baton to a successor at some point.
As the baby boomers generation ages, it’s a cold hard fact that many contractors can no longer keep up with the ever-changing demands of the heating and cooling industry. Today, owners of HVAC and other contracting businesses are retiring in droves to move on to the next chapter of their lives. Couple that with record-breaking levels of merger and acquisition (“M&A”) activity in the HVAC sector, and owners have many considerations and opportunities to consider when succession planning.
How prepared are you for that big day in your future?
In today’s dynamic business environment, managing risks associated with planned and unplanned departures is a business imperative that contractors can no longer afford to ignore. Decades-old, highly successful and well-established HVAC businesses, in particular, need proactive succession planning to ensure continued business growth.
Succession planning, however, can be a complex undertaking. It involves identifying and training your successor to ensure your retirement does not disrupt operations. Additionally, it requires creating a robust strategy to maximize the business’s economic value during the ownership transition and manage any taxation and compliance implications. Succession planning also includes considering M&A options for your business.
Throughout the years, we’ve seen how the lack of a well-thought-out succession plan has led to severe financial damages for many HVAC companies. With this in mind, businesses must develop long-term strategies to mitigate risks and ensure a successful transition.
The Importance of Succession Planning for Your HVAC Business
Whether you have no plans of retiring anytime soon, the future is unpredictable. Having a solid, documented succession plan is crucial to your business’s health and fate.
Succession planning allows you to:
- Ensure your management team is aligned with your plans and goals for the company’s future.
- Stay focused on a long-term, bigger-picture vision for the business.
- Protect the business in the event of a sudden major life-changing event.
- Assess parts of your business that may need special attention for your succession plan to be effective.
No matter the size or structure of your contracting business, having a defined succession plan is critical to selecting and developing the best leaders. Extending tenures may prevent the impending headwind, but there is no substitute for a viable long-term succession strategy. After all, business leaders, irrespective of their stature, would inevitably need to make way for the younger generation.
3 Insightful and Actionable Succession Planning Steps
Every business situation requires a different exit strategy. Some existing business owners may want to step out of their position for good. While some would prefer to stay minimally involved to ensure the company’s future success.
Whether you plan to pass your company on to one of your children or trusted employees or sell it to an outside party, succession planning is paramount.
Here are three important things to consider as you plan for your HVAC business succession:
-
Decide Who Will Take Over
Identify who will take the reins when you retire, and give them the opportunity to develop their skills and experience to successfully replace you in the future. Every aspect of business operations should be clearly defined, including detailed role definitions for key decision-makers at various levels. This is especially true for family-owned businesses.
With any luck, you’ve had capable family members or employees who have established themselves in the specific roles they will eventually assume.
If your business is family-owned and operated, it is important to talk to your family members before making succession choices. Ask them if they are interested in taking over the business, and determine if they have the capability to effectively run the company.
Starting your succession plan sooner rather than later gives you more time to hone the knowledge and skills they will need to take over.
On the other hand, if you’ve been anticipating that one of your employees will buy out your business, make sure they have the financial capacity to give you market value for your business along with the skills to sustain its success. Internal transfers are often structured where the owners are paid over time through the profits of the business, so it is important to really assess if your successor has the skills to run the company profitably without you going forward. Otherwise, you’re giving your business to someone who can put your long-term financial security at risk if they cannot execute successfully. This is why many business owners look to third-party M&A to transition their business.
As retirement looms, you must also train them to do the jobs well to ensure that a steady hand will lead from the top down.
-
Determine When the Transition Will Happen
You can’t just flip a switch and hand over the job to your successor with little notice. Think long-term and set a date for your last day in the company. The ownership transition should begin before your last day to give your successor enough time to get accustomed to their new role.
As the existing business owner, you must also invest in the professional development of your succession choice to help them gain valuable experience and boost their soft skills. Let them assume different responsibilities to assess where they might need some additional training and development.
If you’re in a position where you don’t have a qualified candidate to take over, then you need to craft a broader succession plan that enlists a third party to purchase the business. Make sure to find a buyer who values your business the way you do, has the ability to demonstrate consistent earnings and will continue its legacy when you are no longer there.
-
Consider a merger and acquisition (M&A)
When one entity buys another entity and folds it into their organization, that is referred to as an acquisition. In a merger, two equal companies join to form another entity or co-branded company. The timing has never been more perfect for HVAC businesses to consider M&A. More investors are looking for lower-middle-market organizations for M&A activity, and the benefits to you, as a small business owner, are immense.
Rewarding financial returns are one of the reasons business owners turn to M&A. During an M&A, you’ll be able to enhance the price you receive for your company, allowing you to cash in on your hard-earned success and retire with ease. There are also opportunities to create generational wealth by selling portions of your business to a private equity firm. In this scenario, you are able to continue investing, you stay involved in running your company, and you work with the majority owner to generate increased value for your business. Eventually, you’ll be able to liquidate your equity at a larger amount in this second sale of the business.
If you are interested in M&A, it’s never too early to start planning. Price isn’t the only thing to focus on. From determining timing, better understanding your customer relationships and determining what to do with your team, there are seven things to consider when selling your company.
Ignite A Big-Picture Mindset
Changes in the HVAC business happen fast. But through effective succession planning and considering M&A options, you can ensure business continuity. Don’t forget to call in the experts for help with your company’s succession planning. Look for a team with many years of experience, diverse business background and a proven track record in the M&A industry.
Need help with your company’s succession planning? The experts at Align BA are happy to advise you on the best way to create a strong leadership pipeline.
About the Author: Dena Jalbert is at the forefront of executive leadership within the M&A industry. She is also an award-winning entrepreneur, a mother and a philanthropist. Dena is an outgoing, high-performing, and deeply analytical leader who is passionate about driving business growth through financial discipline, innovation and creativity. Dena is a proven leader whose distinction interlaces a wider-view of business needs to connect the dots between data and business growth strategy. It is this unique strength that has led to repeated successes throughout her career, enabling a different and fresh perspective in building and leading organizations — utilizing innovative strategies to deliver transformations in operations and business results. As a mother of two young girls, Dena is determined to do what she can to advance the opportunities of young girls and women throughout Central Florida.
Small business owners recognize the value of a powerful Customer Relationship Management (CRM) tool. Storing and tracking customer communication history, job data, maintenance agreements, equipment history, and more, the right CRM can help a business grow its customer base and increase revenue. Many of us are most familiar with CRM software and its benefits as Read more
Small business owners recognize the value of a powerful Customer Relationship Management (CRM) tool. Storing and tracking customer communication history, job data, maintenance agreements, equipment history, and more, the right CRM can help a business grow its customer base and increase revenue.
Many of us are most familiar with CRM software and its benefits as it relates to our sales teams. After all, they tend to be the primary users on a daily basis, capturing a wealth of useful customer information. But that same CRM data is a hidden gem for the marketing department as well.
Marketers have their work cut out for them these days. As attentions are scattered across more and more communication platforms, it has become necessary to increase marketing frequency. In fact, a potential customer usually requires about eight touches from a business or brand before a sale happens. Whether a business is looking to develop effective email marketing content, implement automation to assist with hands-free outreach or determine ROI on a campaign, CRM has tools available to help.
Just remember: it’s imperative to obtain the proper permissions from both current and potential customers before adding them to a marketing list. Once that step is taken care of, it’s time to start brainstorming your next marketing campaign and the messages you want to convey to these two different audiences.
For prospective customers, messaging is typically geared towards communicating why you are the best company and why they should want to do business with you. This is the time to separate your business from the competition, making a memorable impression that will stick with them when they go to book their next service appointment.
Since current customers are already familiar with your company and its services, the marketing message usually revolves around offering them special promotions or maintenance service agreements. Businesses may also want to provide them with helpful tips and advice that further position the company as the provider of choice in the industry and market.
CRM Tool #1 – Segment contacts for email marketing
Email newsletters can be a cost-effective marketing campaign solution to convey these different messages to both prospective and current customers. Email can help build relationships with customers and keep them coming back, and they are fairly easy to start. Even better, segmenting contacts into potential customers and current customers is generally accomplished easily within CRM systems.
For prospective customers, a newsletter is a place to feature your company’s products and services, as well as the expertise of your team. You can also include the ever-popular coupons or discounts, which typically attract new customers. They are also a great way to help increase awareness of services your company offers that people may not know about. If there is a type of job you offer but rarely have any customers who book appointments for it, offer a discount and see if it helps with awareness. Discounts are also effective for current customers who may be looking for a deal when it’s time to book an appointment.
Email newsletters also allow marketers to monitor the engagement they are achieving with these important contacts. By tracking open rates and click-through rates, a business can see what content is resonating. Sales can even use that information to follow up with a customer who may have clicked on an offer or link in the email but have not yet booked an appointment or service.
Establishing a routine cadence of email newsletter communication means your list of contacts will be seeing your brand’s name on a regular basis. Your company will be top-of-mind the next time they need a service you offer.
CRM Tool #2 – Automation
CRMs can help with automating outreach such as service reminders for upcoming appointments, maintenance agreement expirations/renewals, or reminders to schedule upcoming maintenance agreement visits. Some CRMs have the ability to create automated email sequences that potential customers will receive at predetermined intervals.
Consider automating a thank you email once a service is complete and including a link to review your business. Remind your customers that the best way to say thanks is by leaving a positive review. If they have easy access to leave a review, customers will be more likely to do so. Establishing a reputation for providing excellent service will go a long way in attracting new customers.
CRM Tool #3 – Track ROI and Lifetime Value
Over time, CRM systems will provide data that helps track the lifetime value of customers and marketing campaigns. Knowing where a customer came from, whether it was a form, website, social media, ad, etc., results in several things.
First, it allows a business to track where it gets the most leads and customer inquiries. Ads may be running on multiple channels, such as social media or local broadcast outlets. Compiling the information on where the leads are coming from helps determine where it’s worth investing more money. If an ad is not performing as well and not resulting in many customer inquiries, you may want to consider stopping the ad and putting that money towards a platform where you see a return.
Businesses can also begin to track the lifetime value of a customer based on jobs they have completed or any maintenance agreements they have. Seeing how much revenue and profit that customer has driven over time and tracking that back to the lead source helps a business determine the lifetime value of its marketing campaigns and lead sources.
These are just some of the ways CRM software can be used to develop effective marketing plans and create new marketing tools that will help recruit and retain customers. Don’t let the sales team have all the fun with CRM; encourage your marketing team to start accessing all of that valuable customer information today.
Chris O’Grady has been in sales for 30 years, focusing on software sales for the last 20. Chris has been leading and growing sales teams for most of his career, with his most recent positions at FinancialForce and CBORD, where he led high-performing sales teams and was able to help drive tremendous growth for each company. In April 2022, Chris joined Successware as the Chief Sales Officer. He brought with him a proven history of business growth and increased sales performance. In his current role, Chris leads sales, sales operations, and customer success and is responsible for driving sales strategy.