Patrick Lange is an experienced HVAC business broker heading up The Business Modification Group. Coming from a unique background in financial planning and owning an HVAC business himself, Patrick shares how to run a successful services business, so that when it comes time to sell it, people are lining up to purchase. 

Selling Versus Running A Business

If you don’t enjoy your work, make a change. Find a career that you can take pleasure in, like selling products that you are knowledgeable and passionate about. Patrick shares that although he started out in the finance industry, he knew it was not the space for him. He decided to pivot, pursuing a career as an HVAC business broker instead.

Patrick emphasizes that success leaves clues. Finding your way in a new career path is not always easy. His advice is to: 

1. Try new things.
2. Learn from successful business owners.
3. Improve on what you learn.

“I get to steal a lot of ideas from successful companies that I see every day. I love successful businesses. So, for me it’s kind of neat to kind of peel back the layers and see what works… seeing what’s successful and what’s not successful and there is a fine line that separates the two, that’s extremely exciting to me.”

Making A Business Sellable

Buyers love simplicity and ease. When selling a business, it is important that you have clean records and great relationships with your clients. Patrick says these are the first things that buyers look for when considering a purchase.

“Separation of service, clean books and records, repetitive income and a business built on service. Those four things if they build their heating and air company, and plumbing company and electrical company that way, they’ll be able to cash a bigger check.”

Be aware of what the general rate for a business of your size is going for and try not to oversell or undersell yourself. People will not always be truthful with what they can truly afford, so you have to have to make a judgement call and understand how to communicate your desires.

Becoming A Buyer

Great customer service is an essential quality you should look for when buying a business. Patrick knows a lot about what is needed when acquiring a new company. Aside from assessing the right pricing and the paperwork, you have to ensure you have a good understanding of how the business was run previously. If the company you are considering purchasing has a bad reputation for inconsistency or bad customer service, those issues will now fall on you.

The Opportunities Of The Trade

You can be incredibly successful in the trades. These jobs are always going to be needed, and Patrick believes this industry will continue to grow.

“I can tell you I know more people in the heating and air business that make more money than the people I knew in the financial planning business... It’s not all about income and I am not trying to make it like it is, but the opportunities that the trades offer that I didn’t realize existed, I get to see that on a daily basis and that’s incredible to me.”

For more information on Patrick’s business and services, visit Business Modification Group.