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 why you shouldn’t fear focusing on one area of expertise as well as how to sell or acquire a new business. 

Don’t Fear Niching Down

Customers want expertise. They want to know the broker knows about their needs and knows about serving them. Many business owners in the broker world fear losing out on opportunities if they create a more specific selling point. However, niching down gives you the ability to make more money, become more valuable, and enjoy your work more.

“The biggest thing is educating yourself because you know the more value you deliver to the customer, and that’s whether you own a heating and air company or a plumbing company or an electrical company or you’re selling them… the more people seek you out.”

The more you learn about your specific niche, the more information you will then be able to provide your client with. Immerse yourself in whatever area of expertise you are wanting to go in. Patrick says that success leaves clues—find those people and listen as much as you can.

Successfully Selling Your Business

Laying the groundwork for a successful transition when selling your business can help you receive the full value that your company is worth, without any hiccups. Selling requires careful planning. 

Patrick says that by following these four simple steps, you will remain on the offensive:

1. Keep clean books and records. Stop treating your business like your personal bank account. Pay your taxes, receive the correct income and you will benefit later down the track.

“The least amount of personal expenses you have in there [books], the better off you’re going to be.”

2. Take yourself out of the truck. Don’t be the only person doing the hard work and “turning the wrenches.” People do not want to purchase that kind of business and your exit strategy will be far more complicated.

3. Focus on service. Service should be placed above new construction. Buyers are fearful of new construction. The more service you focus on, the better your business is going to be.

4. Deepen those customer relationships. Get into customer homes more often, deliver a better maintenance agreement and this will lead to long-term profitability.

How To Find a Suitable Business To Purchase

If you have a problem in your business, having more leads come in is not going to fix your issues. Patrick’s advice for anyone searching for a business to acquire is to first look at what is happening within your own company. Once you have the right systems in place in your own company then you are better prepared to purchase someone else’s.

“Don’t buy anything until your ducks are in a row in your own business. Many people think, and I’m sure you see it on the marketing side, they’ve got all these other problems, and they think that if we have more leads coming in that will fix the problems. That’s not the fix… Make sure your house is in order first, and that you’ve got systems in place in your own business before you go taking on somebody else’s. That’s the first step.”

Determine how and where you want to grow. Look at the location of the companies you are thinking about purchasing and decide whether these fit within your expansion. Patrick also explains the importance of checking in on the size and affordability of the business you are considering.

Understand what your business and clients need and go from there. 

For more information on his business and services, visit Business Modification Group.