Python Notes for mca i year students osmania university.docx
Aoc63
1. Chicagoland West
The DIGITALLY DRIVEN Home Improvement Business
Business Overview for Investors
June 3, 2009
ANDY ONCALL Chicagoland West
3s071 Route 59, Unit 111
Warrenville, IL 60555
630.821.7777
2. Objective
• 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.
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3. ANDY ONCALL 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.*
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* ANDY ONCALL Franchising
4. National Long Term Outlook for
Homeowner Remodeling Activity*
• “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 $300 billion / yr.
• Homeowner spending to increase by 3.7% annually between
2005 and 2015.
* August, 2007 Report from Joint Center for Housing Studies, Harvard University
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5. Data from 2008 NAHB Study Confirms Positive
Industry Trend and Territory Demographics
2008 NAHB Study Forecasts 5% CGR in Home Improvements Share of Remodeling Spending by Income
and Maintenance ($B)
Improvements Maintenance
$79
320
$85
<$35k 12%
$90
$89
$80
$75
240
$70 $35-$49.9k 8%
$75
$58
$59
$65
$290
160
$270
$250
15%
$230
$50k-$75k
$220
$210
$190
$175
$170
$169
$165
80
$75k+ 65%
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 0% 10% 20% 30% 40% 50% 60% 70% 80%
Share of Remodeling Spending by Property Value Share of Remodeling Spending by Household Age
< 35 11%
<$150k 16%
35-54 48%
$150k-$250k 17%
55-64 23%
>$250k 67%
65+ 19%
0% 20% 40% 60% 80% 100% 0% 10% 20% 30% 40% 50% 60%
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6. An ANDY ONCALL Business is Resilient
Post-Recession Recovery in 2003 Portends 2009 Growth ($K)
2002 Recession 2001 2002 2003
Chattanooga $462 $452 $620
Marietta $616 $540 $726
TOTAL $1,078 $992 $1,346
-8% 36%
2008-09 Recession 2007 2008 2009
Chicagoland West $1,001 $914 $1,026
-9% 12%
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7. ANDY ONCALL 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
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* US Census Bureau and Foundations for Growth in the Remodeling Industry Harvard, 2008
8. ANDY ONCALL 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.
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9. Strategic Use of Email Converts Underutilized
Customer Database into a Lead-Generating Asset.
• 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
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10. Key Elements of web-based advertising
• 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.
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12. Website Enhancements Will Drive Increased
Business.
• 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.
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“Hello, Mr. Smith. It is time to change your furnace filter.”
13. Our Website is Attractive, but Requires Add'l
Investment to Maximize it's Value to the Business.
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14. Business to Business (B2B) Growth Will Help
Stabilize Revenue
• 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.
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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 15
16. Management Staff
Experience, Professionalism Is A Competitive Advantage
• 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
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17. The ANDY ONCALL Difference
“The Best Guarantee in the Business”
• 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.
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