Interview: Airconic

Matthew started Airconic over 15 years ago and since then, his commercial heating, cooling and ventilation company has grown in leaps and bounds. He chatted to us about learning the hard way that revenue doesn’t always mean a profitable business and that building strong, long-term relationships is what can lead to success. 

There’s a lot to learn from Matthew’s experience – read on! 

Tell us about Airconic?

Airconic is a commercial heating, cooling and ventilation company based in Melbourne. We specialise in delivering mechanical services for commercial construction projects, working closely with builders and developers from the early stages of a project right through to installation, commissioning and handover.

We’ve built Airconic around being reliable, easy to deal with and delivering what we say we’re going to deliver. Over the years the business has grown significantly, but we’ve always tried to maintain the same level of service and personal involvement that we had when we were smaller.

What led to starting Airconic?

I always wanted to build something of my own and have control over the direction I was heading.

When I started Airconic, the goal wasn’t necessarily to build a large company overnight. It was really about doing good work, building strong relationships and creating a reputation that would lead to more opportunities.

As the business grew, my goals grew with it. It became about building a strong team, creating a business that could take on larger commercial projects and creating something that had real long-term value.

What are some mistakes made or challenges you’ve come across that others could learn from?

One of the biggest lessons has been understanding that turnover doesn’t necessarily mean profit.

When you’re growing a business, it’s very easy to focus on winning more work and increasing revenue. But as the business gets bigger, so do the overheads, staffing requirements, cash-flow demands and risks.

We’ve learnt to be more selective about the projects we take on, the builders we work with and the margins we need to make the risk worthwhile.

Another big lesson has been learning to delegate. In the early years you tend to do everything yourself because that’s what you’re used to. Eventually you realise that if you want the business to grow, you need good people around you and you need to trust them to do their jobs.

What are some of the things you got right and/or that you’re particularly proud of as a business?

I’m probably most proud of the reputation we’ve built and the team we’ve created.

A lot of our work comes from long-standing relationships and repeat clients, which I think says a lot about how we operate. In construction, your reputation is extremely important, and we’ve always to look after the builders and clients we work with.

I’m also proud of how Airconic has grown. We’ve gone from a small business to a company capable of delivering significant commercial HVAC projects, with a great team of people behind it.

We’ve certainly made mistakes along the way, but we’ve continued to improve, reinvest in the business and surround ourselves with good people.

How has Future helped you along the way?

Future Advisory has been a big part of the journey.

I’ve been with them for more than 15 years, so they’ve seen the business through virtually every stage of its growth.

What I’ve always valued is that the relationship goes beyond simply preparing accounts or lodging tax returns. They’ve taken the time to understand me, the business and where we’re trying to go.

As Airconic has grown, the decisions have become bigger and more complicated, and having people you trust around you becomes increasingly important. Future has always been available when I’ve needed advice whether it’s around tax, business structures, planning, investments or just talking through an important business decision.

The service has consistently been excellent. They’re responsive, approachable and explain things in a way that’s easy to understand.

After more than 15 years together, there’s also a level of trust that’s hard to replace. I know I can pick up the phone, talk through something with them and get advice from people who genuinely understand our history and our business.

I consider Future much more than our accountant. They’re a trusted adviser to both me and the business, and they’ve played an important role in helping Airconic get to where it is today.

Any advice for someone thinking about starting a business?

I’d say back yourself, but don’t expect it to be easy.

You don’t need to have everything figured out before you start. A lot of what I’ve learnt about business has come from actually doing it, making mistakes and working things out along the way.

Look after your customers, protect your reputation and understand your numbers. Don’t chase turnover just for the sake of being bigger, make sure the work you’re doing is actually profitable.

Build a good team around you and get good advisers early. Having an accountant and other advisers you trust can save you from making some very expensive mistakes.

Most importantly, keep going. There will always be difficult periods in business, but if you keep improving, make good decisions and surround yourself with the right people, the opportunities tend to follow.

If you’d like to learn more about Airconic, visit their website here. If you’d like to chat about our accounting and advisory services, we’d love to hear from you.