Tom Howard never planned on making a career in HVAC.
At 15 years old, his first brush with the trades came when a contractor fixing his mom’s refrigerator offered him a part-time job sweeping floors and cleaning tools at Lee’s Air in Fresno, California.
Back then, it was just a way to earn pocket money after school. When he left for college at BYU on a scholarship, he had one clear goal: “Get a business degree so I never had to work in HVAC again.”
But life has a funny way of bringing you full circle. After college, Tom entered the finance industry. Yet when the opportunity came to return to Lee’s Air—this time as General Manager—he took it. That decision changed everything.
The Conflict: Low Revenue, Tight Margins, and No Clear Plan
When Tom took over as GM, Lee’s Air was doing about $1.6M in annual revenue. In his first year, he nearly doubled it to $3M. But he quickly realized revenue wasn’t the whole picture.
Profitability was razor-thin.
The HVAC industry average for net profit hovered around 1–2%. Even with strong sales, Lee’s wasn’t keeping much of the money.
Like many small business owners, Tom was:
- Operating without a budget
- Reacting month-to-month
- Lacking a long-term plan
He describes it as: “Driving a car with no gauges and a blanket over the windshield.”
The Turning Point: Forecasting, Fast Execution, and Raising the Bar
Tom’s breakthrough came when he stopped running the company like a job and started running it like a real business.
He built a simple yet powerful forecasting model:
- Look at revenue from the past three years
- Identify seasonal trends
- Forecast monthly revenue and profit targets
This allowed him to plan ahead, hire technicians early, and avoid panicking during slow months.
He also made a game-changing move: switching to ServiceTitan, a platform that helped him track KPIs, monitor performance, and make data-driven decisions.
The Results: From Apprentice Wages to a $450M Valuation
The transformation was staggering.
- By 2019, Lee’s Air had grown to $15M in revenue.
- In 2024, they surpassed $100M across all operations.
- By 2025, their parent company’s valuation hit $450M.
- The company’s average HVAC install ticket jumped from $7,000 to $26,000.
- Apprentices at Lee’s now earn $120K USD (₱180K AUD)—and some top techs make over $1.2M/year.
In Tom’s words: “If you can’t pay the highest wages in your area, that’s not your team’s fault—it’s yours. Build a company that allows it to happen.”
This mindset shift allowed him to attract and retain top talent while creating life-changing opportunities for hundreds of families.
Business Lessons from Tom’s Journey
Here are some key takeaways for business owners:
- Set Bigger Goals. Tom once thought $3M would be his lifetime ceiling. He was wrong.
- Pay People What They’re Worth. There’s no labor shortage—just a shortage of companies willing to pay for great talent.
- Plan for Seasonality. Use historical data to forecast, hire ahead of demand, and avoid cash flow panic.
- Track Your KPIs Religiously. Without the numbers, you’re flying blind.
- Create Career Paths. Show your team how they can grow—and they won’t leave for $5/hour more.
- Raise Prices, Raise Service. You can’t pay your people well if you’re undercharging customers.
- Execute Fast. Don’t overthink. Solve problems quickly and keep moving.
Final Thoughts
Tom Howard’s journey—from a teenager sweeping floors to leading a $450M HVAC empire—is proof that massive growth doesn’t come from luck or perfect timing.
It comes from mindset shifts, uncomfortable decisions, and taking action faster than you think you’re ready for.
As Tom puts it: “Real entrepreneurs don’t care about the money. The money is just the scoreboard. What excites us is building, growing, and making an impact.”
Whether you’re stuck at a revenue plateau or looking for your next breakthrough, remember this: You’re only a few key decisions away from changing everything.
Inspired by Tom’s story?
If you’re serious about scaling your service business—whether that’s getting more leads, ranking higher on Google, or running offers that actually fill your calendar—we’re here to help.
Or drop a comment: What part of Tom’s journey resonated with you most?
We’d love to hear your story.
