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Aoc62 Aoc62 Presentation Transcript

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