HVACR Business February 2020 by HVACR Business

This is a Technology Industry Pete Grasso 5

How to Deal with an Angry Employee Beverly Flaxington 11

Not All Air Cleaners are Safe Aaron Engel 13

Use PR to Grow Your Business Melanie Rembrandt 15

How Do You Sound? Tom Merriott 19

Educate Inheritors on Wealth Keven Prather 20

HVACRBUSINESS.COM FEBRUARY 2020 / VOL.15 / NO.2

STRATEGIES FOR RECRUITMENT Top contractors weigh in on the most successful ways to attract and retain new talent. Page 6

ALSO INSIDE » Ruth King The Rules of Wealth ….................................................. 18 Industry News ...........................................................22 Product Focus ...............................................................23 20 Questions with Ben Stark Managing Partner of Go Time Success Group ….. 26

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CONTENTS

FEBRUARY 2020 / VOL.15 / NO.2

F E AT U R E S

Strategies for Recruitment

D E PA R T M E N T S

Top contractors weigh in on the most successful ways to attract and retain new talent. By Pete Grasso

How to Deal with an Angry Employee

Not All Residential Air Cleaners are Safe

Editor’s Notebook

Sponsored Content: RunTru

Anger that isn’t noticed and addressed can turn into a dramatic case where someone ends up getting hurt. By Beverly Flaxington

At this year’s AHR Expo in Orlando, many manufacturers introduced new technology for the betterment of the industry. By Pete Grasso

Be sure to research what you sell to protect yourself from future product liability issues. By Aaron Engel

Industry News

Use Public Relations to Grow Your Business

Product Focus

You’ve probably heard of public relations, but you may not be using it to your advantage. By Melanie Rembrandt

C O LU M N

Wealth Rule 1: Pay Attention to Your Balance Sheet

20 Questions with Ben Stark CEO of Sunny Service and managing partner of Go Time Success Group

The longer you are profitable, the more opportunity you have to build wealth. By Ruth King

How Do You Sound?

Educate Inheritors About Wealth Planning and Managing Financial Assets

The only way to truly know how you’re interacting with customers is through recorded calls or live mystery calling. By Tom Merriott The people who inherit your assets need to know how to manage that wealth intelligently. By Keven Prather

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EDITOR’S NOTEBOOK

BY PETE GRASSO TERRY Tanker Publisher ttanker@hvacrbusiness.com PETE Grasso Editor pgrasso@hvacrbusiness.com MEGAN LaSalla Art Director mlasalla@hvacrbusiness.com BRUCE Sprague Circulation Manager bs200264@sbcglobal.net BARBARA Kerr Executive Assistant bkerr@hvacrbusiness.com

ADVERTISING STAFF EAST COAST/SOUTHEAST JIM Clifford Regional Sales Manager Tel 201-362-5561 Fax 201-334-9186 jclifford@hvacrbusiness.com MIDWEST ERIC Hagerman Regional Sales Manager Tel 216-409-3246 Fax 440-731-8750 ehagerman@hvacrbusiness.com WEST COAST TERRY Tanker Publisher Tel 440-731-8600 Fax 440-731-8750 ttanker@hvacrbusiness.com

HVACR Business, founded January 1981, is a monthly national trade magazine serving contractors, mechanical engineers, manufacturers, manufacturer representatives, wholesalers, distributors, trade associations, and others in the heating, ventilating, air conditioning and refrigeration (HVACR) industry primarily in the U.S. The editorial focus and mission of HVACR Business is to provide business owners and managers with the very best business management concepts available. Critical topics covered include leadership, management, strategy, finance, sales, marketing, training, education, staffing, operations, human resources, legal issues, customer service and more. We are dedicated to helping contractors master these key management skills and provide them with the resources necessary to build strong, profitable companies. Every effort is made to provide accurate information, however, the publisher assumes no responsibility for accuracy of submitted advertising and editorial information. Copyright©2020 by JFT Properties LLC. No part of this publication may be reproduced or retransmitted in any form or by any means, including, but not limited to, electronic, mechanical, photocopying, recording or any information storage retrieval system, without the prior written permission of the publisher. Unauthorized copying may subject violators to criminal penalties as well as liabilities for substantial monetary damages up to $100,000 per infringement, costs and attorneys’ fees. This publication should not be utilized as a substitute for professional advice in specific situations. If legal, medical, accounting, financial, consulting, coaching or other professional advice is required, the services of the appropriate professional should be sought. Neither the authors nor the publisher may be held liable in any way for any interpretation or use of the information in this publication. The authors will make recommendations for solutions for you to explore. Any recommendation is always based on the authors’ research and experience. The information contained herein is accurate to the best of the publisher’s and authors’ knowledge; however, the publisher and authors can accept no responsibility for the accuracy or completeness of such information or for loss or damage caused by any use thereof. Subscription Rates: Free and controlled circulation to qualified subscribers. Non-qualified persons may subscribe at the following rates: U.S. and possessions: 1 year $48; 2 years $75; 3 years $96; Canadian and foreign, 1-year $108 U.S. funds only. Single copies $8. Subscriptions are prepaid, and check or money orders only. Subscriber Services: To order a subscription or change your address, write to HVACR Business, 31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039 or call (440) 731-8600; or visit our Web site at www.hvacrbusiness.com. For questions regarding your subscription, please contact bkerr@hvacrbusiness.com. HVACR Business (ISSN 2153-2877) Copyright ©2020 is published monthly by JFT Properties LLC,31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039, Phone: 440731-8600. Periodicals postage is paid at North Ridgeville, OH and additional mailing offices. (USPS 025-431) POSTMASTER: Send address changes to HVACR Business, 31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039.

31674 Center Ridge Road, Suite 104 North Ridgeville, OH 44039 Tel: (440) 731-8600 Fax: (440) 731-8750 Web site: www.hvacrbusiness.com (ISSN: 2153-2877)

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This is a Technology Industry

t’s late in the evening as I sit in my hotel room in Orlando. I’ve spent the last two days walking up and down the aisles of the Orange County Convention center, home of this year’s AHR Expo. I’m tired, sure, and also dreading my flight the next day that will deliver me from warm and sunny Florida to cold and snowy Cleveland. That said, I can’t help but feel a tremendous sense of optimism and pride for this industry. At every booth I visited — and believe me, there were many (with still more to see tomorrow) — I witnessed a new level of technology and innovation being introduced. It seems every year at the AHR Expo, a common theme in the industry emerges. I remember when all anyone could talk about was the move to 13 SEER. For a while, it was the ductless revolution that dominated conversations with many exhibitors.

When I visited the Daikin Applied Americas booth, I saw the Rebel Applied, a highly configurable rooftop heating and cooling system, which is up to 37 percent shorter in length and 30 percent lighter than legacy rooftop units. “We believe that quality design needs quality construction to deliver ultimate value,” said Mike Schwartz, CEO of Daikin Applied Americas. “With advanced fabrication and automation technologies, we can tailor the build to meet specific customer needs, optimize production and deliver products that will perform at the highest levels.”

At this year’s AHR Expo in Orlando, many manufacturers introduced a new level of technology for the betterment of the industry.

Throughout the years, the equipment and controls in this industry have continued to grow more and more sophisticated — with no signs of slowing down. If I had to pick a theme for this year’s AHR Expo, I wouldn’t hesitate to sum it up with one word: technology. In his opening remarks at the LG Air Conditioning Technologies press conference, Kevin McNamara, senior vice president and general manager, said, “LG is a technology company.”

That statement really struck a chord with me, because as I sat there listening to him speak, I couldn’t help but make a mental list of all the technology I had already seen the day before, as well as what was in store for me the rest of the show. “LG is reinforcing our commitment to deliver the most advanced controls, smart connectivity solutions and innovative, powerful technologies,” McNamara said. One of LG’s key highlights at AHR was the official debut of its Coil Communication Kit, which allows for seamless connection of LG smart inverter condensing units to thirdparty coils. Designed for the replacement market, the Coil Communication Kit broadens access to the benefits of LG’s energy-efficient technologies by allowing connection to third party furnaces or air handling equipment for residential and light-commercial applications.

Johnson Controls also showcased a collection of its latest and most advanced products, aimed at simplifying building management, increasing efficiency and reducing operating costs.

“The HVACR industry is constantly evolving and Johnson Controls is well-positioned to meet changing consumer demand with more efficient, sustainable and smart-ready products,” said Jeff Williams, president, Global Products, Johnson Controls. Many manufacturers are building apps around the technology in their products as well, making connectivity even easier for contractors. For example, A.O. Smith launched the new iCOMM Connectivity Platform, breaking down old barriers surrounding remote monitoring and hot water management and placing control firmly in your hands. “This app is designed to empower commercial contractors who want to provide superior service and facility managers who value the peace of mind that comes with knowing their business is running smoothly because it has the hot water it needs,” said David Chisolm, vice president of marketing for A. O. Smith. Of course, these are merely a few examples and only the very tip of the iceberg when it comes to the innovative technology showcased in Orlando. Be sure to check out our Product Focus (pg. 23), as well as hvacrbusiness.com, for more. If this year’s AHR Expo is any indication, you can expect a multitude of cutting-edge solutions from manufacturers for a long time. Because, to paraphrase McNamara, this is a technology industry. u

HVACR BUSINESS

FEBRUARY 2020

STRATEGIES FOR RECRUITMENT Top contractors weigh in on the most successful ways to attract and retain new talent.

BY PETE GRASSO

or the past several years, the number one challenge in this industry has been finding and keeping quality talent. It doesn’t matter if the company is large or small, residential or commercial, recruitment is always a topic of conversation when we speak with contractors. While no one in this industry seems immune, there are a many contractors who have implemented strategies that work for them and are growing as a result of solid recruitment and retention practices. I’ve combed through the conversations I’ve had with dozens of contractors the past couple of years and have compiled their best practices in this special report on recruitment.

“We focus on trying to find young people that have good character. Then we train for skill.” — Benson Green This contractor panel includes: Larry Gemma, owner of GEM Plumbing & Heating in Lincoln, R.I.; Mark Geschke, owner of Bauer & Son One Hour Heating & Air Conditioning in Medina, Ohio; Benson Green, president of Benson’s Heating and Air Conditioning in Tallahassee, Fla.; Jason Hanson, president of Sierra Pacific Home & Comfort in Rancho Cordova, Calif.; Eric Knaak, vice president of operations for Isaac Heating & Air Conditioning in Rochester, N.Y.;

HVACR BUSINESS FEBRUARY 2020

Jeff Nusz, president of Reitmeier in Tualatin, Ore.; Rory Richardson, co-owner of Cardinal Heating & Air in Kirkland, Wash.; Darryl Robinson, owner of Robinson Air in Lawton, Okla.; Michael Rosenberg, president of Rosenberg Indoor Comfort in San Antonio; and Brian Stack, president of Stack Heating, Cooling & Electric in Avon, Ohio. Here’s what they had to say.

Larry Gemma “Within the last two years, we’ve put a benefits package together that I think is second to none. And it’s gotten much better as far as recruitment goes. Right now, we probably have close to maybe 450 employees. And through acquisitions, we’re probably going to double that number. “We hired a recruiting manager to make sure that we stay up on top of the benefits packages, and the pay, making sure our employees are well-compensated for everything they do, and that we have the best benefits in the marketplace. That certainly makes recruitment and retention easier. “The biggest challenge in recruiting today is the ages of the real talent for the

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employees. Most employees are 50 or older in the Northeast that have the licenses to do what they need to do, or that we need to get done. “With the younger generation, we want to make sure to focus on education and training. We have our own trainers and we’re partnered with all the local colleges and universities and trade schools to try and get the best talent out there. We’re bringing a lot more young talent in. I go to all the engineering schools and I tell the students one of the best things that they can do is to get involved in the industry at a lower level for four or five years and get a license, because nothing beats learning it from the bottom up. “We do have a lot of kids that did go to engineering school here and they do very well when they start from the bottom up. They end up doing very well in their careers.”

Mark Geschke “Recruitment is one of the toughest things we deal with on a daily basis. We’re fortunate enough to have an actual recruiter on staff in our office. He has been doing recruiting for a number of years. He’s also one of our dispatchers, but he’s recruiting for us and for a few locations throughout the country as well. “It can be difficult to find people because the good workers usually tend to stay where they are, and if they’re not, maybe there might be an issue that we don’t want them. “We are involved with Fortis College over in Cuyahoga Falls and the Joint Vocational School in Medina County — both have HVAC classes for adults and students. We go over there for their open houses, we take lunches over, go over and talk to the folks every once in a while. We’re looking, too, to recruit people out of these locations and train them to do things the way we do them. It’s a longer process that way, but that’s what we have to do.”

Benson Green “We focus on trying to find young people that have good character. Then we train for skill. We do most of our inhouse training and then after they grasp that, especially on the maintenance side and they are able to move up after they’ve associated themselves with customers and

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“It’s a viable trade and I’m paying for basically their college education and they have no college debt. That is what I’m selling for recruitment.” — Jeff Nusz equipment, we’ll send them to a technical school for a couple of weeks to learn diagnostics. Then they’ll work with an existing technician to learn what they can. We’ve been very successful with that probably over the last four to five years.”

Jason Hanson “Recruitment seems to be number one on the list in so many conversations that we have internally, as well as with other businesses that I know. Finding qualified technicians who you can trust to do a good job with your clients is just difficult. And really, what we’ve resorted to is focusing on building our own. “We use training resources from manufacturers or other trade schools, like Ultimate Technical Academy and things like HVAC Learning Solutions at Lennox and build them up and then send them through additional ongoing training and just build our own technicians to do things the way we want them done. “We start with our entry level positions and train them in the basics and things that they can do with that entry level training, and progress them through as they demonstrate the skill set and additional training courses and so forth to get them to more advanced positions.”

Eric Knaak “Isaac University, which is our training program, now has two full time instructors. We have a classroom and a 2,000-square-foot lab space. We had 119 employees signed up for training classes in the fall. And that’s a variety of classes offered, and it’s all for our employees. We’re big believers in training development on the technical side, as well as the professional and personal development side. “We have a bootcamp program we started back in 2015 where we actually bring people in with no experience and we put them through a 12-week paid training program with the promise that at the end of the program they’re guaranteed a

full-time position with Isaac. Since we first started it, we’ve got about 85 team members that have come on board through that program. “It definitely has helped us with recruitment. We still have openings, but like I said, we’ve got 85 people right now that wouldn’t be here if we didn’t have the boot camp program. For those that enter the program, we’re about a 69 percent graduation rate, and we’re a 75 percent retention rate of those that have graduated. “We’ve got so many young people now who are looking to try different things that they come and they go. And that’s one of the factors. And because we’re the only one in this region, as far as I know, that has a formalized training program, we end up with some technicians that are pretty darn good. “But you know what it comes down to? Are you better off to keep them and train them, or to lose them and not train them? We decided long ago that we need to train people to recruit people.”

Jeff Nusz “My next three- to five-year vision is how to get more minorities and women into our trade. We dig down on it. We break it down. Okay, let’s go to the Women in Trades Fair and let’s see if we set up a booth and see if we can get them interested. “Where are minorities and where can we find them to get them into this trade? Because these guys, when they get licensed, they are making 85, 90 grand a year without overtime. It’s a viable trade and I’m paying for basically their college education and they have no college debt. That is what I’m selling for recruitment and that’s what I’m looking forward to. “Retention is a tough thing, but it’s something we have figured out. We do a lot of fun things for our employees, such as an annual fishing trip. We also do a lot for their spouses and families.

“We do four events a year. I’ve got to capture the spouses and the kids and then that helps with retention of the rank and file as they go through their ups and downs every day. “We’ve worked really hard on this and we continue to work on it through education, through all kinds of things. I bring in financial planners, bank guys, 401K guys, to give them the other side because we’re blue collar. We’re educated, but we’re not highly educated or over educated. “I try to bring in people monthly who can add to their personal lives, that have nothing to do with HVACR because it’s not all about HVACR. That’s just part of it. It’s important to me that our employees succeed. “

Rory Richardson “Right now, there’s a program in Seattle which is a non-union apprenticeship program, so we’ve got two or three guys in each year. We’ve been, essentially, training our crew. Finding people outside ... good guys usually aren’t looking for jobs. Our niche is a little more challenging than most on the new construction side because we do a lot of geothermal, a lot of radiant. It’s not a typical heating company, so getting guys that are well-rounded, we’re finding is difficult. We’ve got to train them in-house, bring them up green. “The way we were brought up is you get out of your truck and you start working. What we’ve learned is this generation has a different type of work ethic. When they’re working, they’re great, but they tend to take breaks and look on their phone a lot. So, we’re trying to figure out how to manage that. But for the most part, if they’ve got good leadership they work hard. That’s been our focus … learning to lead this generation and giving them the training and opportunity for a great career path.”

Darryl Robinson “We try to hire people with good attitudes. We used to hire anybody that had a license. “You have a license? Great. Come on in. Get to work for us and we’ll just work it out.” But we’ve had so many issues with attitudes and with work ethic, so we switched gears. “Now, I’m trying to hire when they get out of high school. Really, I’ve done this continued on page 10

HVACR BUSINESS FEBRUARY 2020

BUSINESS INSIGHTS »

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resident satisfaction and high occupancy rates while keeping a close eye on the budget.

install. It’s subject to the full warranty term, and it stays with the unit or home versus the purchaser.

What about existing homeowners?

What is the warranty?

Trane realized there are customers who want dependable products and warranties without the premium price tag. That’s why they’ve introduced the RunTru brand. HVACR Business spoke with Scott Ewald, Brand Marketing Leader, Trane Residential HVAC & Supply, about RunTru by Trane, the new brand and portfolio of ducted heating and cooling equipment.

For most homeowners, the label on their heating or cooling unit isn’t as important as what it provides: a comfortable indoor environment, no matter what the weather’s like outside. Knowing there isn’t always a need for the premium bell and whistles, we are offering homeowners peace of mind with RunTru products that are tested and backed by Trane, America’s Most Trusted HVAC Brand.

It offers 20 years on the gas heat exchanger, and 10 years on the compressor and coil on the indoor and outdoor units, along with a five-year functional parts warranty. So there are three aspects of the warranty, and we find it is extremely competitive within the industry.

Why introduce a new brand?

What are you offering contractors?

Very little. RunTru products are smaller and easier to handle than traditional units. They provide simple refrigerants and electrical connections, which really do make installation quick and easy. Additionally, our indoor units, have the ability to be multi-positioned so they’re easily configured in the field for whatever airflow direction is needed for the application. This means fewer inventory concerns or units on a truck to meet different needs.

A large segment of customers are seeking simple, dependable solutions at an opening price point. The RunTru product line delivers a reliable product that is ideal for contractors with customers in this segment. With RunTru, customers can experience a great HVAC system without the extras of premium solutions. It’s a product that’s endorsed by Trane, which is recognized as America’s most trusted HVAC brand.

A product that is assembled and tested in the U.S., that’s dependable, easy to install and has a great no-registration warranty. So, whether they are replacing existing heating and cooling equipment or installing a new system, there’s a RunTru to fit their customer’s needs—and budget.

What speciﬁc markets will RunTru target?

• Trane-backed engineering excellence that fills a need for a dependable solution at an affordable price in the low-cost HVAC market.

We believe there will be wide-spread applications for the product line. More specifically, contractors in the new construction market often work with builders who seek a price advantage yet want quality name brand products. We believe RunTru offers a dependable opening price point and a portfolio of products that is very competitive.

What other markets will RunTru compete in? Property managers also will find the RunTru portfolio attractive. This HVAC product line is easy to install, built to last and priced to be a better value solution for any property type—from single-family homes to large apartment and condominium complexes. We understand the importance of maintaining

HVACR BUSINESS

FEBRUARY 2020

My elevator pitch would be: • Easy-to-install, dependable products and solutions at competitive prices.

• A single-source solution for virtually every repair and replacement situation, with equipment and parts available through local Trane sales offices, distributors, and supply stores.

Would you share speciﬁcs about the Warranty? Of course, we’re really excited about the introduction of our unique no-registration warranty. The end user will receive the full benefits of the limited manufacturer’s parts warranty, without the need for them or their contractor to register the product. The coverage begins on the date of

What type of training will contractors need to install and service RunTru?

What will contractors need to know about parts and service? Most of the replacement parts needed for RunTru are interchangeable with existing Trane replacement parts, so those dealers who are familiar with Trane and our existing products will be ahead of the curve and much further along in understanding how easy it is to install the product. Anybody else can learn from available videos, tutorials, and more to help with the training process which should be minimal.

Where can contractors go to get more information about RunTru? RunTruHVAC.com. There they can learn more and engage directly with the brand, by simply clicking on the “Contact Us” tab. We’d be happy to provide them with all the support they need.

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continued from page 7

the last couple of hires that we’ve done, they spend their junior and senior year in high school at vo-tech, so they’re 18, sometimes even 17 years old. “We go to the schools and talk to the instructors. Who’s got the best attitude? Who do they think is capable of continuing that education, who really wants to work, who shows up on time? And we’re trying to get them at that point.

“With our apprenticeship program, if a couple of guys don’t make it here, hopefully they’re trained good enough to work with somebody else. I don’t have a problem with that at all. ” — Brian Stack

“They have to be on with us for two or three years before they can get a journeyman’s license, before we can send them out by themselves, but I’m trying to build our team with younger guys.

“I’m not really concerned about somebody knowing a lot about HVACR. I just want somebody that’s mechanically inclined, that likes people, that can get along not only with customers but also with their coworkers.”

Michael Rosenberg “We build relationships with trade schools and participate in their advisory boards, and they send us potential graduates. We interview them and put them through our Build-a-Tech program, which is a six- to 12-month training program. In that program, they’re doing a lot of ridealongs with our senior guys and they’re working in our training lab. “We have a lab here where they’re working with our senior technicians like our vice president and, really, that’s how we’ve been able to gain traction on the technical side. Our installers and technicians are being built from within. “It’s really challenging to bring in

“Even though we say there aren’t enough people out there to hire, we’ve still been able to grow, and other companies have been able to grow as well. There are people out there, I just don’t think that they’re given enough time to try and learn and grow the company. “When we were a smaller company it was hard to bring on one or two people that didn’t know what they were doing and put that time and money into that person to get them where they need to be. As we’ve grown it’s become easier because I can hire two or three apprentices and train them and put them with different guys and run them through the company and try and get them where they need to be without it really hurting the bottom line.

“We bring them in, we teach them our philosophy, our values and then, obviously, we get them more training. We send them off for a week to Build-A-Tech or another program like that, and that’s where we’re going to do our best work. But it’s going to take a while.

“But not necessarily just younger guys. We’ve got a military base here. It turns out military members, a lot of them have the right work ethic, the right attitude. But if we can get them before they’ve been in the business for a while, before they’ve been working for other contractors and maybe picked up some bad habits, we can get them young, we get them in, teach them our philosophy.

time, but you actually have a structured program where you can learn and develop your skills faster.

experienced service technicians and installers because there seems to be a shortage of it in our industry. A lot of these people that you bring in who do have experience, there’s a reason they’re looking for work and a lot of times it’s because they may have issues and it’s hard to keep those types of guys. I think we’ve had a difficult time holding onto some of these experienced guys that we hire and then they don’t work out. “But the ones who we bring in from trade schools and we build from within, those people have had really good success. I’d say probably 10 to 12 of our existing staff in the field, they’re all guys who we brought in and trained them and built them up. That’s been our recruiting philosophy — get them from the trade schools and build them up in the company. “Everyone has this bad taste in their mouth about millennials that they’re not hard workers and they’re high maintenance and such, and I think if you just know how to work with them and know what their motivations are, they can be really good workers. “They simply have different types of motivation than what we’re used to. They think differently than people in the other generations and you just have to know how to lead and manage them.”

HVACR BUSINESS FEBRUARY 2020

Brian Stack “We get a lot of resumes but they’re not qualified people that would be good in this field I don’t think. We kind of go through a two-interview process. We don’t do any testing right away, but they go out and ride with the guys in the field as part of the interview process. They’ll take a day and ride with them and test them out on some mechanical skills that way. “It’s been difficult for us, just like everybody else, because there’s not a lot of people out there from which to pick and choose. “Our goal with the apprenticeship this year is to be able to get three or four guys into it and put them through a class for free … they’ll take those classes during the day in the morning, go out in the field in the afternoon, rotate through the departments too so they get a taste of all the departments including the office. And then, hopefully, we can keep at least 75 percent of the students who come through there. Our goal is to double the size of the business in the next four to five years, so the training is going to be key to that. “Our training has helped with recruitment because our employees talk to other people and tell them what we have, tell them that we do offer training. You’re not just coming here and getting thrown out on the job to learn on the job all the

“When you talk with other guys out there that own companies and it’s hard for them to find people, it’s usually the smaller companies that are struggling with that because they need someone that’s experienced and they can’t afford to put the money into that training as easily. “With our apprenticeship program, if a couple of guys don’t make it here, hopefully they’re trained good enough to work with somebody else. I don’t have a problem with that at all. I have never looked at any of our competitors or our competition out there as a problem. There’s so much work out there. “I mean we’ve been able to grow over the last 10 years without a problem. We’re friends with all the guys who run all of the other companies around here. There’s plenty of work to go around and we help each other out when we need it. It’s more about the betterment of the industry. And that’s just going to help us all. The better companies will stick around. And there’s always going to be work. Everyone always needs heating and cooling and all of the trades. I don’t worry about anybody else that way.” u

Pete Grasso is editor of HVACR Business magazine. He can be reached at pgrasso@hvacrbusiness.com.

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HOW TO DEAL WITH AN ANGRY EMPLOYEE

Anger that isn’t noticed and addressed can turn into one of the dramatic cases where someone ends up getting hurt. BY BEVERLY FLAXINGTON

t takes all kinds to make a workplace function. Unfortunately, some of those kinds can be employees who are disgruntled, discouraged or overtly upset — either with you as the boss, or with the company. People who are upset act out in a variety of ways. Some might come into your office and yell and curse, others adopt a passiveaggressive stance and don’t admit they are upset but make sure they aren’t productive for you, and others can turn the anger or frustration internally and become depressed and lower-functioning. As a leader, it’s important both to recognize the signs of an angry employee and to know how to deal with them effectively. Telling someone who is yelling at you to “just calm down,” for example, isn’t going to work very often.

WHY DO EMPLOYEES GET ANGRY IN THE FIRST PLACE? Let’s first uncover some of the reasons behind this emotion. Sometimes employees look at others in the company and think they themselves are “better” or “more effective,” but perceive the other person to be treated in a more supportive fashion or rewarded more often. This perceived, or real, inequality leads

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regularly nasty or negative, there are a few things you want to do in order to deal with the person effectively.

As a leader, it’s important both to recognize the signs of an angry employee and to know how to deal with them effectively.

SEEK TO UNDERSTAND

to a lack of confidence in him- or herself, as well as in the management doling out the rewards.

that manifest into anger, particularly when the employee doesn’t feel they are being supported by their boss or the workplace.

Sometimes an employee gets upset because they are given tasks or a role in the company that they are ill-suited to fill. The introvert who gets stressed by interacting with people and who is asked to go sell for the HVACR company may go do it but could stew inside at being asked to step so far out of their natural comfort zone.

These upset, frustrated and angry employees can come across in different ways. As a leader, you want to watch your employees for signs of changes in behavior. Is someone appearing to sulk in meetings more often, are they giving short clipped answers when they were formerly a talkative person, are they responding to innocent questions with hostile answers?

Other employees may irritate a colleague. They may have annoying habits, or talk down to someone else, or provide incorrect information. In some cases, they may overtly try to sabotage another person. The employee who is on the receiving end of the subtle or overt behavior may become increasingly angry at being picked on or subjected to the behavior. In other cases, the employee is undergoing personal issues and dealing with something outside of the workplace that impacts their workplace attitude. Divorce, difficulty with children, an ill child or parent can all be sources of stress

Most employees shift their behavior in subtle ways at first, and then more noticeably if the behavior goes unchecked. As the leader, you want to be sure you are in touch with the behavior of your staff or encouraging your managers to know what’s happening with each of their people. Anger that isn’t noticed and addressed can turn into one of the dramatic cases where someone ends up getting hurt by the angry employee. Once you have identified the shift in behavior, or you decide to address an employee who is

The common desire is to squash the negative, angry behavior, but as outlined here, there are many reasons why your employee could be angry. Many people have never been taught to deal with uncomfortable or negative emotions. They don’t know how to manage themselves, and so they act out in ineffective ways. While you can’t condone the negative, angry behavior in your workplace, you can first approach the employee with compassion and an observation that something must be wrong. You can start by saying something like, “It’s just not like you to be so sullen in our Monday meetings, Hugh; is there anything going on that is impacting you negatively?” or “I’m a bit concerned. I’ve observed you speaking in a very angry tone to Stella, our receptionist, and she has mentioned being afraid to talk with you; has Stella done something? Is there a problem we need to address?” It’s important to get the dialogue going without being accusatory but rather by uncovering the source.

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the lousy attitude lately, Mark?”

IDENTIFY

Your definition of “lousy attitude” may be different from Mark’s. Sometimes people know exactly what they are doing, but many times they don’t.

Specifically, identify what the employee is doing. Don’t just say, “What’s up with

Be clear and specific: “I detect a negative undertone to a lot of your comments lately. For example, in today’s meeting you said ...” or “The customer from the north end called and said you were behaving in an

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angry manner. She said you threw down your tools when you couldn’t get the unit to work. Is that true? What happened?” The more specific and exacting you can be, the better the employee can understand what they’ve done.

BE DIRECT Deal directly with the employee, not with their colleagues, to find out what’s going on. Too many times a manager or business owner will ask around to try and learn information about the employee in question. They may seek input from a friend or colleague of the person — something like, “Hey, do you notice anything strange about Ed lately? What’s going on?” It can seem innocent, as if you are just trying to validate your interpretation by asking others, but it is very disruptive and hurtful to the employee you are querying about. If you want to know what’s going on, go right to the source.

BE A MODEL Model the behavior you want to see. Many times, those in charge don’t realize the messages they are sending by the behavior they favor. If you tend to outbursts in meetings, speak harshly to employees when they do something wrong, or “stew” when you are upset about things going on in your company, your employees will get the message that this type of behavior is okay.

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They might even interpret it as the favored approach. Watch yourself and see what employees see. Most people don’t learn well how to handle their emotions, especially negative ones. It’s very likely that at some point you will be faced with an employee whose behavior you reject. Try using one or more of these approaches and see if you can’t turn their negative behavior into something more positive. u

Beverly Flaxington is a certified professional behavioral analyst (CPBA) who specializes in helping managers and employees deal with difficult workplace relationships, performance issues and goal achievement. Learn more at the-collaborative.com.

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NOT ALL RESIDENTIAL AIR CLEANERS ARE SAFE

Be sure to research what you sell to protect yourself from future product liability issues.

BY AARON ENGEL

he HVACR market has been inundated with dozens of air cleaning technologies and equipment over the last decade. Contractors have discovered this growing niche to be a lucrative market for promoting indoor air quality to consumers. The emergence of many research reports on the dangers of ozone, a gas that is a byproduct of some cleaning methods, however, should prompt contractors to research what methodologies are the safest or they could be opening themselves up to future product liabilities issues. Arm yourself with knowledge on how air cleaners work and determine whether they produce harmful byproducts, such as ozone, to not only provide your customers the safest possible IAQ, but to protect your business from possible liability issues.

OZONE DANGERS Ultraviolet germicidal irradiation (UVGI) technology isn’t new and has been used to disinfect air for decades and water for more than a century. There’s no doubt UV lamp systems effectively disinfect biological contaminants especially those that pass two UVGI effectiveness test standards: ANSI/ASHRAE Standard 185.1 for UVGI lamps in induct airstream irradiation; and ANCI/ ASHRAE Standard 185.2 for UVGI lamps for in-duct surface irradiation. Besides ductwork and plenum air supply disinfection, UV lamps also prevent mold

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Arm yourself with knowledge on how air cleaners work and determine whether they produce harmful byproducts, such as ozone, to not only provide your customers the safest possible IAQ. and other biological growth on evaporator coils and air handler interiors. Unfortunately, some UV technology for HVACR systems generate ozone, which multiple studies within the last several years have proven harmful to human respiratory systems. While ozone is sometimes an unintended byproduct, some UV lamp systems may also intentionally produce ozone by design. For example, some manufacturers purposefully use specific UV wavelengths that create ozone to produce the distinct, clean-smelling ozone odor. Whether or not a UV lamp generates ozone is dependent upon its wavelength. UV is produced in various forms: UV-A used for blacklights (320 to 400 nanometers (nm)); UV-B used in tanning beds (280 to 320-nm); and the most lethal germicidal wavelength, UV-C (254-nm) is ideal for disinfection. UV-C deactivates microorganism reproduction by altering their DNA structure. While UV-C is the most lethal for microorganisms, UV lamps using the UV-V wavelength at 185nm produce ozone.

UVC lamps at or above 254-nm do not generate ozone, whereas UV lamps at the 185-nm generate ozone through photolysis of oxygen and further reaction, according to the Environmental Protection Agency’s (EPA) “Residential Air Cleaners.” This new 75-page, comprehensive document outlines the strategies, advantages and disadvantages of all residential air cleaner methodologies. It states that ozone-generating models are detrimental to homeowners’ respiratory tracts, lungs and general health. Prior to the EPA document’s release, the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) had already taken a similar position on ozone-generating air cleaners and their detriment to occupant health. ASHRAE’s 2015 publication “Position Document on Filtration and Air Cleaning states in Section 2.6: “Ozone is harmful for health and exposure to ozone creates risk for a variety of symptoms and diseases associated with the respiratory tract; Ozone emission is thus undesirable.” Section 3.2

of the document further states: “devices that use the reactivity of ozone for the purpose of cleaning the air should not be used in occupied spaces because of negative health effects that arise from exposure to ozone and its reaction products.” Still, other organizations have also carved out regulatory ozone requirements for consumers. For example, the U.S. Food and Drug Administration (FDA) was the first to set an ozone emissions limit of 0.05 ppm (50 ppb) for all medical devices. In 2008, the California Air Resources Board (CARB) targeted ozone emissions with a state-wide regulation requiring certification of all electronic air cleaners under UL 867’s test standard of 0.05 ppm (50 ppb) limit. CARB is expected to soon publish an update on ozone dangers of some air cleaners.

OTHER TECHNOLOGIES HAVE OZONE POTENTIAL Besides some types of UV lamps, the EPA has also stated electrostatic precipitators (ESP) and ionizers, which are air cleaning devices positioned in the airstream of HVACR systems, are also potential ozone contributors. Both methodologies use a powered electrostatic process to charge particles, that in turn, become attracted to oppositely-charged plates or other indoor surfaces to remove airborne particulates.

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According to the EPA report, “And because ESPs and ionizers use high voltage to generate ionized fields, they may produce ozone either as a byproduct or by design. Ozone is a lung irritant that poses risks to health.” The report also states that “some makes and models of ESPs and ionizers can increase indoor ozone concentrations that can even exceed public health standards.” ESPs that use low voltage to generate ionized fields are less likely to produce ozone.

Specifying a zero-ozone device may be the difference between winning and losing bids, especially when facility design teams recognize their importance. Many air cleaner manufacturers with designs including purposeful ozone generation began substituting their suspect methodologies with marketing terms that omit ozone descriptions. For example, fairly popular terms 10 years ago were ozone generator and ozonator, however those terms are rarely used in air cleaner

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marketing materials in light of current ozone findings. This misguided marketing creates expectant and quite undesirable marketplace confusion regarding the amount of ozone generation and off-gassing emissions by several IAQ technologies, products, and brands. Consequently, consumers and even HVACR contractors, who wanted to install the safest products, had nowhere to turn for zero ozone emission confirmation. Consequently, Underwriters Laboratories (UL), Northbrook, Ill., recently took on the task of creating the desperately needed validation for zero ozone air cleaning devices. UL 2998 is a long-awaited environmental claim procedure with validation. Contractors and consumers can now visit UL SPOT (ul. com/spot), which lists all types of sustainable products worldwide. The UL SPOT’s “HVACR Air Cleaners” section lists validated zero ozone products that emit less than the maximum ozone concentration limit of 0.005 ppm (5 ppb), which is below a quantifiable level for ozone testing. This is 10-fold less than permitted under the aforementioned test standard UL 867. Approved products also receive a validation badge that can be displayed on marketing materials and product labels. Although the EPA report targets residential systems, contractors should be aware that commercial air cleaning devices can also come under scrutiny. Consequently, specifying a zero-ozone device may be the difference between winning and losing bids, especially when facility design teams recognize their importance. Zero ozone air treatment device specifications may also someday be required by green building design projects.

CONTRACTORS MARKETING IAQ Rick Henson, president, Summer Breeze Comfort Systems, Morgantown, W.Va., formed an IAQ division for his 18-year-old HVACR contracting and service firm in 2012. Now it’s commanding more than a 30-percent share of sales and few competitors have ventured into the niche to compete against him.

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Henson made a commitment to the category with a dedicated van thermal-wrapped in photos depicting his IAQ equipment’s advantages. The van is virtually a mobile billboard for his IAQ niche. He implemented the typical direct mailing and brochures that other contractors create, but he took marketing a step further with a walkway kiosk at a local enclosed mall where all his zero-ozone IAQ equipment is on display. There, he can interest new clients how UV disinfects airborne microbes and carbon media air purification neutralizes volatile organic compounds. Another HVACR contractor, Florida Energy Water & Air (FEWA), Orlando trains and incentivizes its service crews to sell IAQ equipment, such as combination zero-ozone UV and activated carbon media catalyst air treatment products. Service techs leave IAQ brochures with the homeowner during service calls and answer questions afterward. Currently, the new trend is on-demand IAQ, which uses Internet of Things (IoT) equipment such as air quality monitors that send a signal to the thermostat via Wi-Fi to activate the home’s air handlers, which has an air cleaning device that rectifies the air quality event. HVACR contractors can be assured ozone discussions will inevitably arise from customers that read the many reports that are surfacing in the media on the dangers of ozone emissions. It would be prudent for contractors to prepare their service people with the factual answers based on the research and refer customers to sources such as the UL SPOT, where they will find a list of validated air cleaning devices that provide air purification with zero ozone emissions. u

Aaron Engel is vice president of business development at Fresh-Aire UV, North America’s largest manufacturer of residential, commercial, agriculture and medical UV disinfection and carbon/titanium /PCO-based air purification systems. Fresh-Aire UV’s APCO air treatment system recently earned UL 2998 validation for emitting zero ozone. Engel can be reached via email at aaron@freshaireuv. com or call 800-741-1195. For additional information, visit freshaireuv.com.

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Use Public Relations to Grow Your Business You’ve probably heard of public relations, but you may not be using it to your advantage.

BY MELANIE REMBRANDT

ou sit down to enjoy your morning bagel and cup of coffee, open your favorite trade publication, and there it is ... a feature story about your competitor. Ugh. It talks all about their leadership, services and fantastic growth over the years with large photos and a link to their website.

This is not how you wanted to start your day! How did they get this, anyway? Welcome to the world of public relations or PR. While you’ve probably heard of it, you may not be using it to your advantage.

WHAT EXACTLY IS PR? Many people think that “PR” stands for press release. But it’s much more than that. Public relations is, “the business of inducing the public to have understanding for and goodwill toward a person, firm or institution.” Basically, PR refers to all of the communications you have with your internal and external customers, online and off. This is because the information you distribute affects the image people have of your business in some way, and this relates directly to sales, customer acquisition, employee productivity and so much more.

THE BENEFITS OF PR PR focuses on sending the right message to the right audience at the right time to get specific results, and it can offer your business many advantages. Obtain third-party credibility: The main benefit of public relations is that it can give you third-party credibility you can’t get any other way. As mentioned above, when a well-known media source publishes a story about you, the people who read, watch or listen to it, give your business some attention and credibility. This is because it’s not paid advertising.

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When a well-known media source publishes a story about you, the people who read, watch or listen to it, give your business some attention and credibility. It’s a reputable, outside source talking about your products and services.

publication, do you think they will call you or your competitors first?

Boost positive awareness: A media story about your business can reach a worldwide audience within minutes of going live on the internet. If the mention offers valuable and unique information, people will share it with others and include comments, photos, videos, and more.

Win top-level new hires: Public relations can also help you win great new hires over the competition. After all, skilled and talented people job seekers want to work with exciting, growing businesses that are credible and newsworthy.

Also, if an online story includes the right keywords, search engines will add it to the top of their rankings relative to current news about that particular topic. This news listing is usually online permanently so it can continue to help build awareness for your business for months, and even years, in the future. Save money: As a story spreads online and via word-of-mouth, you basically get free advertising for your business. If you pitch your ideas to media members and your discussion results in a published article, television or radio interview, blog, or something else, you can enjoy coverage worth thousands of dollars without paying a cent. Public relations doesn’t need to cost anything except time and effort! Gain a competitive edge: Not only does public relations help you save money that you can use on marketing, sales and other activities, it can also make your competition temporarily obsolete. For example, let’s say a potential customer is looking for a new partner to supply air conditioning systems to a large hotel chain in the area. After they read the impressive article about your business in their favorite

They pay attention to top media venues in the industry as they search for potential opportunities. A single story about your business in one of these venues can put you in front of the best candidates, and above other competitors, without your knowledge. Plus, you can post your media clippings (published articles) on your website, print copies and put them in your reception area, hang them on your wall, and more. This will help you make a good first impression when top talent walks in your door for their interview. Increase productivity: When a media story goes live, be sure to share it with your team members. They will get excited to see your business (and maybe even themselves!) in the news. This can open up internal communications where you discuss monthly goals, events, charitable activities, training, sales processes, and more to build more positive buzz about your business – inside and out. Remember, the conversations you have with your employees also falls into the area of public relations. When you convey the right messages at the right time to them, you can create a more positive work environment, improve loyalty and confidence

in the company, see productivity increase, and much more!

WHAT DOES ALL OF THIS MEAN? PR can help you boost sales quickly and cost-effectively! With third-party credibility your competitors can’t touch, you get more positive attention from current and potential customers and reach top job candidates. Specifically, “third-party credibility is based on the human tendency to value the opinion/expertise of someone outside their circle of influence more than someone within (i.e. an outsider must know something we don’t),” states Bob Burg, international speaker and best-selling co- author of “The Go-Giver.” Why not take advantage of this using public relations in your day-to-day operations? Also, regular news coverage and the right internal communications can inspire your team members to share a positive brand image with others and be more productive because they want to be a part of your growing and newsworthy business! Public relations is no longer this “mysterious” activity you hear about on a regular basis. Now, you can make it an essential part of your action plan and experience significant growth in your HVACR business this year! u

Melanie Rembrandt is one of the country’s top small business, public relations’ experts and the founder of Rembrandt Communications and The Small Business PR Academy. She is an experienced SEO content strategist, an award-winning writer and author. For additional information, visit rembrandtwrites.com.

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FINANCE

BY RUTH KING

Wealth Rule 1: Pay Attention to Your Balance Sheet

ast year I wrote about the rules of Profit. This year I will write about the rules of Wealth. All rules are in my upcoming book, “Profit or Wealth?: Simple Rules for Sustainable Business Growth,” which will be released this October.

The longer you are profitable, the more opportunity you have to build wealth.

Unfortunately, most contractors don’t pay attention to their balance sheet. They live only by what their P&L is telling them. A contractor can go out of business just paying attention to his P&L. You’ll discover why over the next few months. Your balance sheet is where you build wealth. This financial document tells you true profitability. The longer you are profitable, the more opportunity you have to build wealth. This doesn’t mean that you will build wealth. You must take the steps to actually build it. Your balance sheet shows you how healthy your business is. It started the day that your company started or the day you bought it. It ends the day you close the doors or sell it. Your balance sheet gives you warning signs. It tells you: • If profitability (i.e. long-term profits) is increasing • If you can pay your bills • If debt levels are getting too high • If inventory levels are getting too high • If you’re heading toward a collection problem. Your balance sheet must be accurate. Here are five common balance sheet mistakes.

NEGATIVE CASH You cannot have negative cash on your balance sheet. This means there is a negative cash balance in your checking account. Often when I see a negative cash balance, the company’s bookkeeper has

company money. If so, the bookkeeper has made an error in the payment calculations.

NET INCOME DOESN’T MATCH Net income on your P&L must match retained earnings. The net income from the profit and loss statement is transferred to the balance sheet. The amounts shown must exactly match! If they don’t, then make sure that both the profit and loss statement and balance sheet show the same date (i.e. both are reported as of January 31st) Then make sure both are shown on an accrual basis. If the year to date net profit and year’s retained earnings aren’t consistent, then someone is probably embezzling from your company.

REPORTS DON’T MATCH written the checks for all of the bills due in a month. They are sitting in the bookkeeper’s drawer until enough cash comes in to pay those bills. At the end of the month, if enough cash has not come in to cover the bills, the balance sheet shows a negative cash balance. Even worse, it shows a smaller amount of accounts payable due. You think you owe less than you actually do. Your bookkeeper should only write checks when there is cash to cover those checks. Otherwise, you’re fooling yourself about the health of your business.

TRACK YOUR INVENTORY

when you buy a part or piece of equipment that you can sell it at a later date. Make sure you make good bets.

NEGATIVE LOAN BALANCE A negative loan balance means that the bank owes your company money for a loan. The company owes the bank the loan amount; the bank doesn’t owe the company. Generally, when I see this, it is close to the end of the loan payments. As the bookkeeper is making the monthly payments, the bookkeeper has entered the entire monthly loan payment as a decrease of the loan liability.

Or, no inventory at all. There is less than a one in one million chance that your inventory is exactly $20,000 or $3,500. Or, the inventory value is the same every month. When I see this, I know that inventory is not being properly tracked and that material cost is usually not accurate either.

This is incorrect. Part of the monthly loan payment is principal reduction of the loan amount and part is interest the bank is charging your company for the privilege of having the loan. The interest is an expense to your business and is shown on your profit and loss statement. The loan principal reduction is shown on your company’s balance sheet.

Inventory is a bet (See Profit Rule No. 9, HVACR Business Sept. 2019, pg. 17). You’ve bet your hard-earned dollars that

Like negative loan balances, it is unlikely that the Internal Revenue Service or your state revenue department owes your

HVACR BUSINESS FEBRUARY 2020

Accounts receivable and accounts payable on the balance sheet should match the accounts receivable and accounts payable balances shown on the aging reports. Print out report showing the list of accounts receivable and accounts payable each month. The total balance on the accounts receivable and accounts payable aging reports should match the values printed on the balance sheet. If they don’t match, someone has usually put entries in through journal entries rather than through your accounts receivable and accounts payable systems. Checking for these five errors takes less than five minutes. Correcting them may take longer. u

Ruth King has more than 25 years of experience in the HVACR industry and has worked with contractors, distributors and manufacturers to help grow their companies and become more profitable. Contact Ruth at ruthking@hvacchannel.tv or call 770-729-0258.

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TRAINING

BY TOM MERRIOT

How Do You Sound?

f you’re a general manager or an owner, it’s your responsibility to know how your company sounds 24 hours a day. This is shocking news to some, but knowing how you sound is vital to the continued success of your organization. And before you stop reading this article because you walk through your call center “all the time” and “everyone sounds great,” I need you to realize that drive-by, one-sided listening is unacceptable. The only way to truly know how you are interacting with your customer base is through recorded calls or live mystery calling. First, let’s talk about recorded calls. I need you to make sure that you’re listening from a customer’s perspective, not that of a manager or owner. This will be tough, because your instinct will be to focus on the things that your people should be doing and not how the consumer is reacting. Listening from the customer’s perspective will take your focus away from the “procedural aspect” of the call and allow you to hear those things that matter to the people who pay for your services. Take note of the little things, like if your people are listening to what the customer is saying, rather than “half-hearing” while they wait to fill in another line in your software. Maybe while your team member is giving half his ear, the customer disclosed something recent that happened at their home that’s turned their world upside down. The customer is scared because they have no idea if the problem can be fixed, how soon it can be fixed, and — most frightening of all — how much it will cost to fix. You might hear the anxiety in their voice as they discuss this terrible turn of events, but then the response they hear back on your company’s end is, “Could I get your address to see if you’re in our system?”

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today to develop a more empathetic and customer-centric company voice. u

The only way to truly know how you are interacting with your customer base is through recorded calls or live mystery calling. This exact scenario is the reason why you need to pay special attention to the voice and tone of your call center staff. Regular listening from a customer’s perspective will help you pick up on things like a lack of empathy from your people and will make you better at discovering coaching opportunities for the team. A quick word of caution about any recorded or mystery call interactions with your team: resist the urge to overreact. You may find this to be hard to do, especially if you haven’t done it before.

You should repeat this process throughout the day. You should even try calling in the middle of the night to see how your company sounds under the command of those who don’t think anyone is paying attention. I cannot overstate the importance of how your company sounds. Take action

Tom Merriott is a Customer Experience Coach with Nexstar Network and has managed call centers in the plumbing, heating, cooling, and electrical industries for more than 15 years. He’s passionate about raising the level of call center training and customer service expertise for home service providers. For additional information, visit nexstarnetwork.com, email membership@nexstarnetwork.com or call 888-240-7827.

My best advice is to give yourself a day to cool off before you address any issues. This can be quite the challenge for most entrepreneurs. Mystery calls are best done from a number not associated with you or your business. I always use my wife’s phone, or borrow one from a friend if my system populates caller ID. Before you make the call, you should have an address and a scenario ready to go. You need to shift your mindset to that of someone with a problem who needs an expert to make things right. Again, take yourself out of the role of the boss and try to listen for those things that make you feel good when you call other services in your life. Was your staff friendly? Did it seem like they genuinely enjoyed working for your company? Did they make you feel like you would be a part of something special? If you answer no to any of these questions, then make some coaching notes and ask yourself if you have been clear with your expectations.

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HVACR BUSINESS FEBRUARY 2020

ESTATE TAXES

PROVIDED BY KEVEN PRATHER, CFBS

Educate Inheritors About Wealth Planning & Managing Financial Assets

he heads of many of the wealthiest families are concerned about their heirs’ ability to smartly deal with the money and business assets they will one day inherit. This is especially true among the first-generation wealthy.

• The people who inherit your assets need to know how to manage that wealth intelligently.

Their fears are warranted: A full 70 percent of wealthy families lose their wealth by the second generation, and a stunning 90 percent by the third, according to the Williams Group wealth consultancy.1

• Wealthy heirs’ top priority is to identify and work with top financial talent to guide them.

For that reason, wealthy business owners often take steps to prepare heirs to take the reins of the company. Typically, that involves the heir or heirs getting hands-on involvement in the business and learning from the ground up (or sometimes from the second floor up). Additionally, there are many organizations and professionals— from business schools to life coaches, and from consultants to trusted advisors—that can provide instructional services to inheritors of family businesses. But what about inheritors who won’t have managerial roles—passive owners? Likewise, what about heirs who may receive investment assets only—such as a sizable portfolio of liquid securities like stocks, bonds and mutual funds? These heirs also need to know how to manage their assets intelligently and effectively so that wealth grows and is not eroded. That said, it’s important to help heirs in ways that they’ll respond to and act on— otherwise, educational efforts can become nothing more than wasted time.

HELPING INHERITORS GET HELP Based on considerable research into wealthy (and extremely wealthy) inheritors, we find that the great majority are not interested in learning even the fundamentals of money management and wealth planning. They want to turn to professionals

• They also want to know what their wealth can accomplish.

to invest their assets and help them deal with the range of planning issues they can face—from tax matters to protecting their fortunes from legal challenges.

exceptionally wealthy use to find professionals to help guide them in managing wealth are:

Wealthy heirs—the second, third and fourth generations—as well as others who may inherit significant wealth (such as spouses) tend to share two overarching goals:

• Referrals from other professionals. High-end professionals regularly know other types of high-end professionals. Finding a wealth planner or money manager this way is a very astute risk-reduction approach.

GOAL #1: FIND AND WORK WITH TALENTED INVESTMENT PROFESSIONALS AND HIGHEND WEALTH PLANNERS

• Referrals from peers. This approach is much more common among heirs than among the older generation, as many of them have crossed paths at colleges and private enclaves.

Very few Super Rich—or even “just” wealthy—inheritors are going to personally manage their substantial inheritances. Most will turn over the day-to-day responsibilities to (hopefully) qualified professionals. Even when an heir takes an active role—such as in making direct investments in private companies—professional advisors are often part of the effort. The most effective way to find high-caliber experts—and avoid those who lack needed capabilities—is to take a page from the playbook of the family patriarchs and matriarchs. The three main avenues the

HVACR BUSINESS FEBRUARY 2020

• Prominence in the private wealth industry. Some professionals have a powerful and influential brand that draws the rich, the Super Rich and other leading authorities to them. Stature in the field also is important in getting other professionals or peers to recommend them. In addition, four core criteria are central in selecting high-caliber investment advisors and wealth planners: 1. Proven integrity. By being meticulously attentive to making sure you choose

a professional of the highest integrity, you’re avoiding the problems and wealth destruction that can occur if you work with predatory advisors who seek to exploit you. 2. A sense of purpose and a deep concern for clients. Elite professionals generally are driven and see their ability to deliver their expertise to their clients as a calling. Moreover, they are truly committed to making the lives of their clients meaningfully better in accord with the clients’ wishes and requirements. 3. Operational transparency. It’s essential that a professional be completely open and forthright with you. This takes a number of forms, including being very clear about the right to obtain second opinions, third opinions—whatever you want in order to verify the viability of the solutions proposed. Another aspect of operational transparency is fee clarity— knowing exactly what you will be charged for specific products or services. 4. Extensive technical expertise. It is usually necessary to consider numerous factors in order to effectively evaluate the technical competence of a money manager or wealth planner, including track record, professional experience, and recognition from peers in the financial and legal communities.

GOAL #2: UNDERSTAND WHAT CAN BE ACCOMPLISHED Although they may not care to learn how legal strategies and investment products work at an in-depth level, inheritors tell us they do want to have a big-picture understanding of what they can accomplish with their wealth. Therefore, they can benefit from getting help developing wealth agendas that their assets can be positioned (by a professional) to support. Getting this type of high-level guidance and vision-creation often means working with an elite

www.hvacrbusiness.com

wealth manager* who focuses upfront on helping clients define their financial values and goals.

DEEPER DIVES Of course, some inheritors do want to learn and be involved in the technical aspects of investment management and wealth planning. Many organizations provide programs for teaching the mechanics of investment management to the next generation. Example: A variety of wealth management firms (from private banks to multi-family offices) have developed instructional programs explaining how the markets and specific investments work. These programs address a wide array of issues, from the very basic (such as the difference between a stock and a bond) to more advanced investment management concepts (such as asset allocation, rebalancing and investment selection techniques). When it comes to wealth planning, the focus is usually on an overview of the different types of planning services. Sometimes, the basics of the tools and techniques, such as trusts, partnerships and life insurance, are explained.

Keven Prather specializes in serving the complex needs of business owners through Financial Planning and Business Transition/ Exit Planning. Using a Total Wealth Planning approach, Keven’s objective is to turn complex problems into actionable, understandable and manageable steps, by collaborating with business owners, their family, and strategic partners.” Keven can be reached at (216) 592-7314 or kprather@financialguide.com. www.TransitioNextAdvisors.com.

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Important: While the wealthiest families, simply because they have the most wealth, may be especially concerned about how their children will shepherd the wealth they have created, getting educated on the basics of personal financial management and how to seek out high-quality expert guidance is a vital step for just about everyone.

WEALTH PLANNING OVERVIEW

You don’t need to be a member of the top 1 percent or even the top 50 percent of Americans in terms of wealth to benefit from learning how to better manage your own wealth, get the help you need and avoid professionals who don’t have your best interests at heart.

• Estate planning involves using legal strategies and financial products to determine the future disposition of current and projected assets.

Indeed, taking the right steps to become informed about managing wealth and access the expert guidance you may need could be just what helps catapult you to the highest levels of personal and professional success. Action step: Contact your financial or legal professional about helping your heirs become better-informed about managing wealth and planning for their financial future. This can also be a good time to discuss any other financial concerns you may have.

Securities and investment advisory services offered through qualified registered representatives of MML Investors Services, LLC. Member SIPC. www.SIPC.org. TransitioNext AdvisorsTM is not a subsidiary or affiliate of MML Investors Services, LLC, or its affiliated companies. Supervisory Office: 2012 West 25th Street, Suite 900 Cleveland, OH 44113. 216.621.5680. This report is intended to be used for

Wealth planning is an umbrella term for various planning specialties. The following are the commonly cited planning specialties: • Income tax planning focuses on proper timing and control over your taxable income and cash flow.

• Marital and related relations planning entails planning for disruptions in the relationships between spouses or other partners. • Business succession planning principal -ly deals with tax-efficiently transitioning the business to others, whether they are family members or not. • Asset protection planning entails employing legally accepted concepts and strategies to ensure a person’s wealth is not unjustly taken from him or her. • Charitable tax planning addresses ways to be philanthropic in the most taxefficient manner.

informational purposes only. Neither MML Investors Services nor any of its employees or agents are authorized to give legal or tax advice. Consult your own personal attorney legal or tax counsel for advice on specific legal and tax matters. CEG Worldwide, LLC. is not a subsidiary or affiliates of MML Investors Services, LLC or its affiliated companies. VFO Inner Circle Special Report By Russ Alan Prince and John J. Bowen Jr.

• Cross-border and inbound planning is for individuals who have issues because they are operating businesses in different countries or are moving to different countries. In practice, there are considerable overlap and synergistic possibilities among planning specialties. For example, an irrevocable trust with the primary purpose of transferring wealth to heirs (estate planning) may also have asset protection characteristics.

http ://time.com/money/3925308/ rich-families-lose-wealth/ 1

*Disclosure: We define elite wealth managers as financial advisors with at least five years of experience who offer one or more of the following services along with investment management: tax mitigation, business planning, wealth transfer, asset protection and charitable giving. Typically, elite wealth managers deliver these services in conjunction with one or more specialists in a given area.

©Copyright 2018 by AES Nation, LLC. All rights reserved. This report is reprinted with permission from VFO Inner Circle. Unless otherwise noted, the source for all data cited regarding financial advisors in this report is CEG Worldwide, LLC. The source for all data cited regarding business owners and other professionals is AES Nation, LLC.

HVACR BUSINESS FEBRUARY 2020

INDUSTRY NEWS » Honeywell Launches New Non-Flammable Refrigerant ORLANDO — Honeywell announced the launch of Solstice N15 (R-515B), a new, A1 nonflammable and low-global-warming potential (LGWP) refrigerant replacement for R-134a for use in chillers and heat pumps. With a GWP of 299 (AR5), Solstice N15 is an environmentally preferable, energyefficient and safe alternative to higher global warming potential solutions that do not fully address long-term efficiency and GWP requirements. The new refrigerant, which will be commercially available this year, was unveiled at the Air Conditioning, Heating and Refrigeration (AHR) Expo in Orlando. Solstice N15 has been adopted by leading compressor manufacturer Danfoss for use in its new Turbocor TGS490 compressor, which can be used in air or water-cooled chiller applications for air conditioning. The Turbocor TGS490 received the AHR Expo 2020 Innovation Award in the “Green Building” category. “The nonflammability of Solstice N15, combined with the refrigerant’s low global warming potential, made this solution a natural choice for our Turbocor TG Series compressors,” said Frank Ford, director of product management at Danfoss Turbocor. “The new Turbocor TGS490 compressor has been fully optimized for both 1234ze and R-515B refrigerants, which means customers can benefit from improved system efficiency but also match the cooling capacity of R-134a thanks to lower pressure characteristics of the new compressor.” As a non-flammable R-134A replacement, Solstice N15 can be used immediately by chiller and heat pump manufacturers where safety standards and buildings codes limit the use of A2L and A3 refrigerants. Its similar product design to 1234ze will provide original equipment manufacturers (OEMs) with a long-term solution that is flexible for both A1 and A2L refrigerants. >> honeywell.com

Chemours Installs Opteon Refrigerant at Pepsi Center WILMINGTON, Del. – The Chemours Company (Chemours) announced today the successful installation of Opteon refrigerant at Pepsi Center, home of the Colorado Avalanche. Opteon, the official refrigerant solution of the NHL, is a sustainable, reliable and cost-effective refrigerant offering for ice refrigeration chiller systems. Trane, one of the world’s leading heating, ventilation, air conditioning and cooling (HVAC) equipment manufacturers, provided the turn-key chiller solution for the arena’s rink operators. Opteon refrigerants provide an optimal balance of performance, safety, and cost efficiency compared to other alternatives, while providing sustainable solutions for ice rinks. Opteon XP10 (R-513A) refrigerant is a non-ozone depleting potential, low global warming potential (GWP) refrigerant for new equipment and retrofit of existing systems. As demonstrated by the successful chiller conversion at Pepsi Center, Opteon XP10 offers an excellent cooling capacity and energy efficiency match for R-134a that is easily serviced and environmentally sustainable. “KSE and Pepsi Center are committed to creating a superb gameday experience for players and fans, alike,” said, Doug Ackerman, senior vice president, Venues at Kroenke Sports Enterprises. “From puck movement to the traction of skate blades, ice quality can have a significant impact on the quality of play, and I am pleased that the recent transition of Pepsi Center to an Opteon based refrigerant system has met that challenge and demonstrated top quality ice production.” As part of the Montreal Protocol, production of broadly-used HCFC refrigerants has been phased out. HFCs are expected to be phased down over the next several years due to proposed state and federal regulation of high GWP refrigerants. As many of the rinks in North America, particularly in the USA, currently use these refrigerants, the NHL and Chemours are committed to working with ice rinks owners and operators across North America to help them navigate the refrigerant landscape and identify costeffective, safe, environmentally-preferable alternatives that make sense for them. >> chemours.com

HVACR BUSINESS FEBRUARY 2020

HARDI Distributors Report 7.4 Percent Revenue Growth in December COLUMBUS, Ohio — Heating, Air-conditioning & Refrigeration Distributors International (HARDI) released its monthly TRENDS report, showing the average sales performance by HARDI distributors was an increase of 7.4 percent percent during December 2019. The average annual sales growth for the 12 months through December 2019 is 5.3 percent. “Sales growth for the month was helped by an extra billing day and it needed it because heating degree days were well below normal in five of our seven regions,” said HARDI Market Research & Benchmarking Analyst Brian Loftus. “The dollar weighted annual growth was also near 5 percent, so that looks like a fair assessment of the year versus the unusually strong 2018.” The Days Sales Outstanding (DSO), a measure of how quickly customers pay their bills, is near 50 days. “The DSO was a bit higher than the recent Decembers,” Loftus said. “This is the second consecutive month that the DSO has been about a day or more higher than the prior year.” “The economy has been growing in the 2 percent area. The consensus expectation even before the coronavirus disruption, was for some modest easing of that pace in the new year,” Loftus said. The latest HARDInomics quarterly indicates only a few states are experiencing a noticeably slower pace. The lack of excesses in the economy despite the duration of the expansion supports the soft-landing consensus expectation. HARDI members do not receive financial compensation in exchange for their monthly sales data and can discontinue their participation without prior notice or penalty. Participation is voluntary, and the depth of market coverage varies from region to region. An independent entity collects and compiles the data that can include products not directly associated with the HVACR industry. >> hardinet.org

Friedrich Introduces Wi-Fi Technology for Ductless Split Systems SAN ANTONIO – Marking a first for the U.S. air conditioning market, Friedrich Air Conditioning Company unveiled built-in Wi-Fi capabilities for its Floating Air Series ductless split systems. Available in March for the company’s Premier and Pro wallmounted and Pro ceiling cassette models, Friedrich showcased its latest Wi-Fi-enabled ductless products at the AHR Expo 2020 held in Orlando. Friedrich’s latest efforts to pioneer integrated Wi-Fi capabilities will help drive even greater demand for ductless among U.S. residential and commercial customers looking for the ultimate in air conditioning convenience and control. With Friedrich Wi-Fienabled Floating Air Series models, users can control their system from anywhere anytime using the FriedrichGo app to easily adjust settings or power their units off and on using their smartphone or other connected device. FriedrichGo also is compatible with Amazon Alexa or Google Home for voice-controlled convenience. “In many circumstances, ductless is simply the wisest choice and now we’ve just made it that much smarter,” said TJ Wheeler, Friedrich vice president of marketing and product management. “Friedrich’s integrated Wi-Fi technology takes the convenience, efficiency and control that customers already love about ductless to a whole new level.” Built-in Wi-Fi capability is just the latest ductless system innovation spearheaded by Friedrich. Last year, the company unveiled a number of advancements benefiting the HVAC trade, including introducing FastPro technology designed to make ductless system installation, cleaning and servicing up to 50 percent faster, easier and more convenient for its Floating Air Pro and Premier Series. >> friedrich.com

www.hvacrbusiness.com

PRODUCT FOCUS »

A.O. SMITH

CLIMATEMASTER

EMERSON

A.O. Smith’s Cyclone LV design is the latest advancement for the Cyclone family of condensing gas water heaters. A.O. Smith’s new modulating process adjusts the burner’s firing rate to a specific demand, which further increases energy efficiency and dramatically lowers operating costs. These units create a larger footprint and increase efficiency, allowing contractors to spec two Cyclone LV units for every four Cyclone Mxi.

The ClimateMaster family of packaged air-cooled rooftop units (RTUs) for light commercial HVAC applications are part of the manufacturer’s current market expansion strategy which includes several new integrated product lines including smart thermostats.

The Emerson Integrated Furnace Control provides control of the gas valve, ignitor, flame sensing circuit and controls the furnace blower in both air conditioning and heating modes as well as provides diagnostics. It is designed for Single Stage, HSI systems with ECMx blower motors.

ClimateMaster’s new packaged commercial RTUs range in size from 3 to 25 tons with the choice of gas heat, electric heat, or heat pump and multiple efficiency levels to meet specific project needs. All models include micro-channel coils and scroll compressors.

It is a Universal control which replaces 35 existing OEM, competitive and White-Rodgers models.

LG’s Multi V S is a compact, efficient, heat pump outdoor unit that supports up to nine individual indoor units with a two-pipe refrigeration circuit and allows individual control of room temperatures while offering overall increased flexibility and efficiency for commercial installations.

Additionally, the Cyclone LV features advanced electronic control with builtin diagnostics, iCOMM is a compatible network, ready for remote monitoring.

>> climatemaster.com

>> hotwater.com

The key benefits of universal service controls are the reduced stocking inventory throughout the channel, and the time savings associated with fewer trips for contractors to chase down needed parts. >> climate.emerson.com

The Multi V S only requires single-phase power rather than the traditional threephase required for most VRF systems and can provide heat down to an outside temperature of -4F. The system requires little to no ductwork, resulting in smaller space requirements for piping, further increasing flexibility and cost savings. >> lghvac.com

RECTORSEAL

RIDGID

SPECTROLINE

VIEGA

RectorSeal’s Quick Connect is the new generation of refrigeration pipefitting designed for ductless mini-split and ducted unitary, single-family residential air conditioning systems. It’s the HVACR industry’s only major refrigerant fitting system that doesn’t require flaring, brazing or expensive crimping connection tools.

The new RIDGID StrutSlayr Strut Shear Head creates clean, square strut cuts free from chips and burrs with a single pull of the trigger — and in five seconds or less. Plus, it easily attaches to equipment many pros already have in their arsenal: the RIDGID RP 340 Press Tool.

The 2-in-1 benefit of Spectroline’s GLO SEAL Flourescent dye with Sealant seals and finds leaks –adding years to older, out-of-warranty AC&R systems. The concentrated dye ensures all leaks are found while the sealant repairs hidden micro-leaks and stops deterioration from the inside.

Viega’s new MegaPressG fittings for 2½-, 3- and 4-inch pipe join the current MegaPressG offerings of ½- to 2-inch fittings to create a comprehensive lineup of fittings approved for use in gas and fuel oil applications. It’s the only system on the market that allows secure press connections on gas lines 2½- to 4-inch in 16 seconds or less.

After cutting, deburring and marking for proper depth, the refrigerant line installation requires just a few seconds to push into the fitting until the depth marking appears in the sight glass. >> rectorseal.com

The only mobile dedicated strut tool on the market, StrutSlayr is field-ready and designed for efficient operation. It’s also easy to use with its built-in measuring guide and 13/16-inch, 1-5/8-inch or combo quick-change dies. It’s also TRISTAND mountable. >> ridgid.com

Compatible with all popular refrigerant types, treats up to 2.5 tons and meets ASHRAE 97 standard for chemical stability. Use GLO SEAL for 24/7 leak detection and HVAC preventative maintenance. >> spectroline.com/product/glo-seal/

Constructed of carbon steel with a corrosion-resistant zinc nickel coating and first-of-its-kind graphite separator ring in larger sizes, MegaPressG is suitable for use with ASTM Schedule 5 to Schedule 40 carbon steel pipe. >> viega.us

www.hvacrbusiness.com

HVACR BUSINESS

FEBRUARY 2020

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20QUESTIONS >>

with BEN STARK

We sat down with Ben Stark, CEO of Sunny Service in Hurst, Texas and managing partner of Go Time Success Group. Stark discussed learning to be a business owner, the importance of training and how to find answers to problems. 1. How did you get started?

I’ve been in the industry since 1979. I started as a do-all type of guy and worked in the field until 1986. That’s when I started my first business. By 1990, I was scratching my head if I should stay in the industry or not because it wasn’t very profitable.

2. How did you turn it around?

I invested in a couple of things that made the difference. First, I learned about the home performance industry. The second thing I did was join Service Nation Alliance, where I learned how to be a good businessman. Ever since then, my business has taken off.

3. What was it like in the beginning?

I struggled for about four or five years because marketing didn’t seem to be working. It was difficult to acquire employees at that stage because you’re so young and just kind of in the field. The biggest challenge is earning the trust and building the relationships that you need to build the company and figure out ways to be successful at what you’re doing.

4. How did you learn to be an owner?

The transformation of becoming a student of the industry, it was just so many different phases of it. It takes what seems like a long time in each phase, because you have the technical side and then you have the communication sales side. Then you have the business side and it just takes a long time to master each one of those levels.

5. When did you sell your ﬁrst company?

I sold my first company in 1997 to a consolidator and worked for them for about three years, managing more than 100 people in the Dallas/Fort Worth area. After that, I broke away and started my second company, Stark Air. Through acquisitions and a lot of other factors, I grew rapidly until about 2012. We were quite profitable the last five or six years of business. I had an opportunity to sell again when private equity groups sought purchasing my company and we finally worked a deal out. I sold that company in 2012.

6. What did you do after that sale?

I’d been doing consulting work since 2005. I continued to do that through my non-compete after selling Stark Air. In 2017 I started my third company, Sunny Service, and I’ve been growing it since then and we’re pretty successful. It’s so much easier the third time around, I’ll tell you that much for sure.

7. Are acquisitions a big part of growth? Over the years we’ve acquired about 13 companies and rolled them in and sold two or three. I saw two of the acquisitions that I purchased back off, ran them as satellites and then sold them and I sold the two big companies. Actually, we just pulled the trigger on selling our third company and we’ve worked our way through a deal with that in December.

HVACR BUSINESS

FEBRUARY 2020

8. What’s your role with Sunny Service? I’m still employed by the company, but I’m more of a manager. I help guide other managers. We’ve built a really good team that has developed.

9. How did you learn to lead?

I’m an advocate of reading good books. One of the best books I ever read was “The E Myth.” It teaches you a business strategy rather than giving people answers. You’ve got to ask people questions and drag the answers out of them so it’s their idea, and it makes them much more inclined to use their own decisions rather than wait for direction. That’s how we develop managers here and we work on best practices.

10. What’s your training philosophy?

When I started Sunny Service, we built a lab and started a training center at the same time we started our business. Now that we’re three or four years into it, we’re actually bringing people in, training and developing them, so we’ve got a pretty good core of people. I couldn’t imagine what it’s like to have to just depend upon other people’s bad habits coming to work for me.

11. What’s your secret to recruiting?

You’ve got to be attuned to your surroundings. Many of the people we’ve hired were attracted to us because of what we do in our company. People see our guys coming in in nice clean trucks, uniforms, good attitude, talking positive about our company, and they want to come work for us. We’ve had people walk across the street, come over to our building and apply for a job. We put them through training classes and develop them.

12. How do you build company culture?

I think there are a lot of companies that develop bad habits. The only way you can build your company culture like you want it is to bring new blood into your company and teach them from the ground up and develop those people. That’s what our process is now.

13. What’s your company culture like?

We develop people who are smart and are prepared for life. We’re big into mentorship here too. If a guy takes somebody under his wings and helps them along and makes them become a better performer, we want to figure out a way to reward those guys in doing that as well.

14. What’s the biggest misconception about the current workforce?

A lot of people think the younger generation is simply a bunch of whiny babies who need to be patted on the back and everything’s due them. I don’t think that’s really the case at all. With our programs and training, they either decide this is not really the place to work or they start changing and becoming a vital part of what we do. You either change the people or the people change you.

15. Where do you see growth?

I see growth by taking technicians and getting them better at doing what they do. That is, rather than fix the problem, you have them diagnose the whole system. Then if there’s a major problem with the system, you teach them how to communicate and educate customers.

16. How’s your consulting business?

Right now, I’m primarily in the training industry with the Go Time Success Group, where I’m partners with Chris Hunter from Hunter Super Techs in Ardmore, Okla. We provide all types of training to contractors, both virtual reality and online training, as well as classroom training for technicians. I spend most of my time gathering information. We focus on teaching contractors how to be better business owners.

17. What do you ﬁnd most rewarding?

Everywhere I go I learn something. I’ve been in the industry for a long time and I’ve been going to industry conventions for more than 30 years. Everywhere I go, I make it a point to learn. Along with learning, there’s that education factor where you’re giving back to the industry. When I was very young, I knew for me to be a good businessman I had to learn how to absorb, test and take action upon things, and the learning process is just that.

18. What is a struggle for contractors?

I’ve coached all over the world and it’s the same everywhere — knowing how to find answers to their problems. Many times, the answer they’re looking for is sitting on their shelf, so we teach them how to open up that book, identify the problem, find a process that solves that problem and apply it and find out several solutions.

19. What challenges do you see?

Many contractors get caught up in the day to day. In the book, “The E Myth,” it talks about there’s three different personalities in every company. There’s the technician, which is the guy out there producing. Then you have the managers, who are action takers that push decisions and take the detail and make sure people are getting better. Then there there’s the owner who’s the visionary.

20. What is the job of ‘visionary?’

If the owner is not working as a visionary in the company, most of the time the company doesn’t have focus. That visionary needs to work on acquiring good people, establishing best practices and marketing. The owner looks at the company from a 10,000-foot level. www.hvacrbusiness.com

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HVACR Business February 2020

Articles inside

Industry News

20 Questions with Ben Stark

Product Focus

Educate Inheritors About Wealth Planning and Managing Financial Assets

Sponsored Content: RunTru

Strategies for Recruitment

How to Deal with an Angry Employee

Use Public Relations to Grow Your Business

Editor’s Notebook

How Do You Sound?

Not All Residential Air Cleaners are Safe

Wealth Rule 1: Pay Attention to Your Balance Sheet