From Zero to $650K

Why am I sharing our revenue numbers publicly?

Because nobody shared theirs with me when I was starting out. When Mariafernanda Jacobo and I launched Frosty's HVAC in January 2018, I had no idea what a realistic revenue target looked like for a small residential HVAC company. No one would tell me. Contractors act like revenue is a state secret. So I was flying blind, not knowing if a $5,000 month was terrible or amazing.

I want to change that for the next person. If you're thinking about starting an HVAC business — or any home services business — here's what our growth actually looked like. No exaggeration. No rounding up. The real trajectory.

What did year one look like financially?

Year one was survival. We started in January 2018 with Mariafernanda Jacobo's TACLA license (TACLA126718E), a truck, tools, and essentially no savings. January through April was painfully slow. Heating calls trickled in, but not enough to cover our truck payment, insurance, and basic operating costs.

May through September was a different story. Texas summer hit and the phone started ringing. AC repairs, emergency calls, a few small installations. Those five months carried the entire year. We'd have $8,000-$10,000 months during peak summer, then drop back to $2,000-$3,000 in the shoulder seasons.

Total revenue year one: roughly break-even with our costs. We didn't lose money, but we didn't really make money either. Every dollar that came in went right back out to keep the business alive. There were months when I made less than I would have earned working for someone else. The difference was that this was ours. That mattered more to me than a paycheck.

When did the business start making real money?

Year two, 2019, was when things shifted. The biggest change was repeat customers. People I'd serviced in 2018 were calling back. Their AC needed maintenance. A different unit had a problem. They referred their neighbor. That repeat and referral business was the foundation of real, consistent revenue.

By mid-2019, we were consistently doing $12,000-$15,000 months during summer and $5,000-$7,000 during winter. Our Google reviews were growing. Customers searching for HVAC service in Farmers Branch, Coppell, or Irving were finding us and seeing 20+ five-star reviews. That social proof made the phone ring without us spending a dollar on advertising.

Year two was also when I learned to price correctly. In year one, I was undercharging because I was scared of losing customers. By year two, I realized that fair pricing — not cheap, not expensive, but fair — actually builds more trust. Customers are suspicious of the lowest bidder. They respect a clear, honest quote that reflects quality work.

What changed between $200K and $400K?

The jump from $200K to $400K came from installations. In the early years, most of our revenue came from repairs — individual service calls averaging $200-$800 each. Repairs are steady income but they don't move the needle fast. Installations are $5,000-$15,000 per job. Landing more installations is what accelerated our growth.

What got us more installations was our repair reputation. We'd service someone's AC, they'd see the quality of our work, and when their system finally needed replacing, they didn't get three quotes — they called us. Our repair customers became our installation customers. That pipeline wasn't something we engineered. It happened naturally because we did good repair work.

We also expanded our service area during this phase. We started in Farmers Branch and Irving, then grew to all 6 cities: Farmers Branch, Coppell, Irving, Flower Mound, Lewisville, Grapevine. Each new city brought new customers and new referral networks.

How did we get from $400K to $650K?

Consistency and compounding. By this point, we had 70+ five-star Google reviews, repeat customers across 6cities, and a referral network that generated business without advertising. The growth from $400K to $650K wasn't driven by any single strategy. It was the compound effect of years of honest work building on itself.

We also got smarter about efficiency. I could diagnose problems faster. I carried more parts in the truck so I could fix more issues on the first visit instead of coming back. Mariafernanda Jacobo streamlined our scheduling so I spent less time driving between jobs and more time working. Small operational improvements that added up to more jobs per day, more revenue per month.

The other factor was our average ticket size increasing naturally. As our reputation grew, we attracted more installation work and fewer “can you just look at it” calls. Customers who find us through 96 five-star reviews tend to already trust us enough to proceed with significant work.

What were the hardest financial moments?

The absolute hardest was the first winter. October 2018 through February 2019. The summer money was gone. The phone was quiet. We had a truck payment, insurance, licensing fees, and a family to support. There were weeks where I considered going back to work for someone else just to have a steady paycheck.

Mariafernanda Jacoboheld the line. She showed me the numbers and said: “Look at what we did in summer. Now imagine next summer with all the customers we've already built.” She was right. That second summer was bigger than the first. But surviving that first winter took faith that the math would work out over a full year, not just the good months.

The other hard moment was our first major equipment purchase on credit. We needed a more reliable truck and better tools. Signing for that debt when the business was barely a year old was terrifying. But it was necessary. You can't grow a service business with unreliable equipment. That investment paid for itself within six months through more efficient service delivery.

What advice would I give someone starting at zero?

Three things. First: survive the first year. Don't measure success by monthly revenue. Measure it by whether you're still in business in December. Everything compounds from year two if you can just make it through year one.

Second: your first customers are your most important asset. Not because of the revenue they bring today, but because of the reviews, referrals, and repeat business they bring for years. Treat every $200 repair like it's a $20,000 installation, because the customer who trusts you with the repair will call you for the installation later.

Third: don't try to look bigger than you are. We didn't pretend to be a fleet operation when it was just me and a truck. Customers in DFW actually prefer the owner showing up at their door. They want to know the person who's working in their home. Being small is an advantage, not a limitation. Lean into it. You can read how we started in the Frosty's origin story, and for the full picture of who I am, visit my about page.