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  1. 1. Chicagoland West The DIGITALLY DRIVEN Home Improvement Business May 29, 2009 ANDY O N C ALL Chicagoland West 3s071 Route 59, Unit 111 Warrenville, IL 60555 630.821.7777
  2. 2. <ul><li>Raise $90,000 of growth capital for fast-growing home improvement franchise located in Chicago's affluent Western suburbs. </li></ul><ul><ul><li>ANDY ONCALL Chicagoland West (AOCCW) is the highest grossing business in ANDY ONCALL Network of 50 nationwide businesses. </li></ul></ul><ul><ul><li>A strong local brand and sound business plan focused on using technology to drive down cost of lead acquisition has the business well prepared for impressive profits. </li></ul></ul><ul><li>See the ABOUT INVESTING page on my website for detailed information about rates of return and terms of the investment. </li></ul>Objective
  3. 3. ANDY O N C ALL Franchising Chattanooga, TN, Established 1999 Estimated 2007 Revenue: $19 Million 50 businesses in 21 states <ul><li>Targets the growing home improvement market </li></ul><ul><ul><li>Harvard and NAHB studies confirm market stability and growth. </li></ul></ul><ul><ul><li>Primarily focuses on the “smaller project” segment where competition is scattered one-man handyman businesses. </li></ul></ul><ul><li>The Business Model: </li></ul><ul><ul><li>Target higher income customers with excellent customer service, guaranteed quality and reliability as differentiators. </li></ul></ul><ul><ul><li>Use established direct mail advertising (Valpak) to acquire leads. </li></ul></ul><ul><ul><li>Franchise owner receives 50% of revenue from each job. </li></ul></ul><ul><ul><li>No A/R or Inventory. </li></ul></ul><ul><ul><li>Scalable structure using subcontractors flexes with demand. </li></ul></ul><ul><ul><li>Large, exclusive territories prevents destructive competition. </li></ul></ul><ul><ul><li>In mature business, owner's profit share should be 20% of sales.* </li></ul></ul><ul><li>* ANDY ONCALL Franchising </li></ul>
  4. 4. <ul><li>“ Across all age groups, successive generations are continuing to outspend their predecessors, leading to record-level spending and solid growth in the coming decade.” </li></ul><ul><li>Spending approaching $300 billion / yr. </li></ul><ul><li>Homeowner spending to increase by 3.7% annually between 2005 and 2015. </li></ul><ul><li>* August, 2007 Report from Joint Center for Housing Studies, Harvard University </li></ul>National Long Term Outlook for Homeowner Remodeling Activity*
  5. 5. Data from 2008 NAHB Study Confirms Positive Industry Trend and Territory Demographics
  6. 6. An ANDY O N C ALL Business is Resilient Post-Recession Recovery in 2003 Portends 2009 Growth ($K)‏
  7. 7. ANDY O N C ALL Chicagoland West Territory Profile and Historical Sales Performance <ul><li>The Exclusive Territory </li></ul><ul><ul><li>Highest income zip codes in DuPage County and The Fox Valley, located in the Western suburbs of Chicago. </li></ul></ul><ul><ul><li>Population of over 1.1 million; avg household income of $88k. </li></ul></ul><ul><ul><li>Income ranks territory among the top 5 of US counties . </li></ul></ul><ul><ul><li>Annual Market: $600 Million* in home improvement spending. </li></ul></ul><ul><li>Sales Performance </li></ul><ul><ul><li>First to achieve $500k in less than one full year of business. </li></ul></ul><ul><ul><li>Doubled sales to $1 million in second year. </li></ul></ul><ul><ul><li>9% contraction in year 3 (2008) compares to avg of 16% at the top ten grossing ANDY ONCALL businesses. </li></ul></ul><ul><ul><li>2008 Recurring Revenue: 39% of Sales </li></ul></ul><ul><ul><ul><li>26% in 2006, 37% in 2007 </li></ul></ul></ul>* US Census Bureau and Foundations for Growth in the Remodeling Industry Harvard, 2008
  8. 8. ANDY O N C ALL Chicagoland West Key Elements of DIGITALLY DRIVEN Initiative <ul><li>Leverage Email to obtain significant benefits at a very low cost </li></ul><ul><ul><li>Over 85% of AOC customers are happy to provide Email addresses </li></ul></ul><ul><ul><li>This is a “mega trend” in the advertising industry. </li></ul></ul><ul><li>Web-based Advertising </li></ul><ul><ul><li>Using savvy business partners to maximize the visibility of our website to customers searching for services we provide. </li></ul></ul><ul><ul><li>We reach customers who are looking for help instead of trying trigger demand via traditional advertising (TV, Radio, Direct Mail, etc)‏ </li></ul></ul><ul><li>Enhanced Website Presence </li></ul><ul><ul><li>Our website is the “digital storefront” for our business. It must be easily accessible, and provide superior service for visitors. </li></ul></ul>
  9. 9. <ul><li>Transactional Emails: Quick Response and Professionalism </li></ul><ul><ul><li>Welcome Notes, Appointment Confirmations, Thank-you notes </li></ul></ul><ul><ul><li>Post job Quality Survey allows us to quickly address formerly hidden issues. </li></ul></ul><ul><ul><ul><li>In 2009, our quality score is 98%! </li></ul></ul></ul><ul><ul><li>Using Email to follow up on “cold leads” increases close rate </li></ul></ul><ul><ul><li>Conflicts are more easily resolved when both parties have time to think before communicating. Customer satisfaction improves. </li></ul></ul><ul><li>Email Marketing via Monthly Newsletters: Brand Reinforcement </li></ul><ul><ul><li>Soft-sell; focused on preventative maintenance information </li></ul></ul><ul><ul><li>Call to action for seasonal repairs and maintenance. </li></ul></ul><ul><ul><li>Keeping ANDY ONCALL visible increases recurring revenue. </li></ul></ul><ul><li>Referral Program: Rewards Happy Customers, attracts new business. </li></ul><ul><li>Alert Emails: Sent on Eve of Storms, Weather Emergencies </li></ul>Strategic Use of Email Converts Underutilized Customer Database into a Lead-Generating Asset.
  10. 10. <ul><li>Search Engine Optimization (SEO) Generates “Organic” growth </li></ul><ul><ul><li>SEO experts make our website more attractive to people searching for our services by moving our name to the top of search listings. </li></ul></ul><ul><li>Pay Per Click Ads Position Site on First Pg of Major Search Engines </li></ul><ul><ul><li>Keyword analysis partners analyze date from major search engines and focus advertising spending on most productive search terms. </li></ul></ul><ul><ul><li>By continually reviewing search activity, advertising spending is optimizing, lowering cost per lead. </li></ul></ul><ul><li>Banner Advertising Drives Brand Awareness and Increases Website traffic. </li></ul><ul><ul><li>“ Re-targeting” will place ANDY ONCALL banner ads on the screens of customers how have shown prior interest in our Website. </li></ul></ul>Key Elements of web-based advertising
  11. 11. Keyword Advertising Drives AOCCW to the Top of Internet Searches
  12. 12. <ul><li>Multiple Landing Pages </li></ul><ul><ul><li>Highlights our deep expertise in multiple trades. </li></ul></ul><ul><ul><li>We currently have 13 different landing pages for our website. </li></ul></ul><ul><ul><li>Each landing pages can be converted to a cut-sheet for customer visits. </li></ul></ul><ul><li>Testimonials greatly increase credibility. </li></ul><ul><ul><li>Customer photos, names, city and types of work performed provide an impressive endorsement for the business. </li></ul></ul><ul><ul><li>Direct links to portfolio of work performed further enhances credibility. </li></ul></ul><ul><ul><li>Video testimonials provide the ultimate endorsement experience. </li></ul></ul><ul><li>“ Push to talk” functionality lets customers receive a phone call from us seconds after clicking button on website. </li></ul><ul><li>Custom Maintenance Reminders make ANDY ONCALL indispensable. </li></ul><ul><ul><li>Customers request customized home maintenance reminders via Email. </li></ul></ul><ul><ul><li>“ Hello, Mr. Smith. It is time to change your furnace filter.” </li></ul></ul>Website Enhancements Will Drive Increased Business.
  13. 13. Our Website is Attractive, but Requires Add'l Investment to Maximize it's Value to the Business.
  14. 14. <ul><li>Homeowner associations and commercial property managers consistently spend funds on professional repair and maintenance services. </li></ul><ul><ul><li>In 2008, AOCCW generated $48k of revenue in this segment </li></ul></ul><ul><li>A relationship-driven business, and needs to be treated differently from the core homeowner business. </li></ul><ul><ul><li>Customer Service Manager serves as the point person </li></ul></ul><ul><li>Once the relationship has been established, this becomes a recurring revenue stream. </li></ul><ul><li>Funds are needed to establish regular mail-based contact with B2B customers with a focus on testimonials, professionalism and creative pricing. </li></ul>Business to Business (B2B) Growth Will Help Stabilize Revenue
  15. 15. DIGITALLY DRIVEN Marketing an enhanced B2B Focus Reduces Costs and Revenue Volatility Recurring Revenue in 2006 = 26% of sales; in 2007 = 37% of sales
  16. 16. <ul><li>Bob Steinmetz (55), Owner </li></ul><ul><ul><li>29 years of corporate experience </li></ul></ul><ul><ul><li>BSME: Notre Dame; MBA: Carnegie-Mellon </li></ul></ul><ul><ul><li>Business development, financial management </li></ul></ul><ul><li>Brian Ruments (37), Field Service Manager </li></ul><ul><ul><li>10 years construction / supervisory experience </li></ul></ul><ul><ul><li>BS: Business Management; US Navy Veteran </li></ul></ul><ul><ul><li>Field Support, Commercial Customer Contact, - On-Call 13 hrs / day </li></ul></ul><ul><li>Maribel Barron (36), Office Manager </li></ul><ul><ul><li>11 years corporate experience </li></ul></ul><ul><ul><li>BA: Business Translation and Communications </li></ul></ul><ul><ul><li>Customer Service, Scheduling, Bookkeeping </li></ul></ul>Management Staff Experience, Professionalism Is A Competitive Advantage
  17. 17. <ul><li>We believe in people! When you call us, no complicated computerized voice mail system greets you. We have people who answer the phone. </li></ul><ul><li>No fear for one year! We will fix any workmanship issues free of charge for one year. </li></ul><ul><li>What we say is what you pay! We honor our quoted labor price unless the scope of work changes. </li></ul><ul><li>We clean up! When the job is complete, the work area will be clean and all debris will be removed. </li></ul><ul><li>We step up! We inspect our work with you. If any accidental damage occurs as a result of the work, we make sure it is repaired at our cost. </li></ul><ul><li>We play by the rules. We abide by the State of Illinois Home Repair and Remodeling Act. </li></ul>The ANDY O N C ALL Difference “The Best Guarantee in the Business”
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