The Heat Pump Podcast

#39 Low Overhead and Infinite Scalability: Mike Townsend's Blueprint for the Next Generation of Heat Pump Contractors


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Most HVAC companies grow by adding people, overhead, and complexity. But what if you could grow faster, more profitably, and with fewer people? In this episode of the Heat Pump Podcast, HVAC entrepreneur Mike Townsend breaks down how he's rethinking the entire HVAC business model — ditching traditional back office roles, leaning into AI, and focusing 100% on high-efficiency heat pumps. With just 10 field staff and no dedicated office, his new venture, Veteran Heating, Cooling, Plumbing & Electric, hit $600K in sales in its first six weeks. This is a masterclass in lean, scalable business design for modern HVAC contractors.


Mike Townsend is a U.S. Army veteran and seasoned HVAC entrepreneur with 30 years of experience. After scaling his previous company to $15 million before selling to private equity, he’s now starting over—with a leaner, AI-driven business model that challenges industry norms. His deep operational insight and hard-earned lessons make him a must-listen for anyone in the trades.


Expect to Learn:

  • Why Mike eliminated roles like service managers and built a team of self-managed pros
  • How AI voice agents and outsourced operations reduce costs and improve responsiveness
  • The sales strategy behind an 80% close rate for high-efficiency heat pump installs
  • Why Mike refuses to offer good-better-best options and only sells one product
  • How geo-targeted recruiting and community-focused marketing give him a hiring edge


Timestamps:

[00:00] - Episode Teaser

[02:35] - Meet Mike Townsend: Army Veteran to HVAC Entrepreneur

[06:08] - Founding His First Company and Learning the Hard Lessons

[17:08] - The Corporate Stagnation That Sparked Innovation

[26:05] - Building the New Model: AI-driven, Fully Outsourced Operations

[41:20] - $600K in 6 Weeks: What’s Working and Why

[47:37] - Why Mike Only Sells Heat Pumps and How He Closes the Deal

[51:36] - Using AI & Amply for Precise System Design

[56:15] - Resource List: Tools, Vendors, and Hiring Secrets

[59:34] - Final Thoughts


The Resources and Vendors That Make It Work:

For contractors interested in Mike’s approach, here’s his go-to vendor stack:

  • Accounting: Out of the Box Technology
  • Web Design/SEO: CI Web Group (with proprietary AI for dynamic content optimization)
  • Google Ads: Mixing Group
  • Video/Social Media: Ascend Creative
  • AI Call Center: Onepath
  • Back Office Support: Work Hero
  • Rebate Financing: Eli Build (provides 95% of rebate via ACH overnight)
  • Dispatch: Philippine-based virtual assistants
  • AI Sales Coaching: Noso Labs


Follow Mike Townsend:

  • LinkedIn: https://www.linkedin.com/in/mike-townsend-0743a12a/
  • Facebook: https://www.facebook.com/R.Mike.Townsend/
  • Instagram: https://www.instagram.com/r.mike.townsend/


Follow Company: 

  • Website: https://www.servicebyveteran.com/
  • LinkedIn: https://www.linkedin.com/company/veteran-hcpe/


Follow the Hosts:

  • Ed Smith: https://www.linkedin.com/in/ed-smith-5aa8716
  • Eric Fitz: https://www.linkedin.com/in/ehfitz/
  • Amply Energy Website: https://www.amply.energy/
  • Amply Energy YouTube: https://www.youtube.com/@amplyenergy
  • Amply Energy Facebook: https://www.facebook.com/amplyenergy
  • Amply Energy Instagram: https://www.instagram.com/amply_energy/
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