Narrowed it down to two ideas

[SeanKelly]

So basically after struggling to sit still for a few days of long long hours and think of business ideas, I'm confident I've narrowed it down to two ideas. My thoughts on this... if they fail, I learned and will move on to the next one. I'm also not afraid to share my ideas.

Idea 1: A Facility Services company for residential customers: Think Fm Facility maintenance but for the average homeowner. We will build a large network of qualified professionals to service nearly all the needs of a typical homeowner (lawn, pool, home repair, exterminator, etc).

Benefit to the homeowner: One number to call for all needs, peace of mind with quality background checked companies, one bill for all services

Benefit to the vendor: Increased business without the hassle of billing and customer support

We will most likely make our money by either taking a percentage of the vendors bid or by tacking money on top of their bid. I'm big on quality control, but by having our own employees scalability would be significantly more difficult. With this model we could be relatively large quite quickly.


Idea 2: So I finally read "Addicted to Passive Income Deposits" (please dont flame me lol) and it was not only AMAZING, but it opened my eyes to the possibilities with a product based business. It excited me very much and I've begun reading a book on Importing/Exporting. Because the pet business is recession proof, I was thinking about importing dog products. I love my German Sheppard and the money spent on her monthly is stunning. I haven't narrowed down a particular product yet because Vigilante had recommended not just jumping in before learning the business a bit. However I have looked at safety based products as they serve a need and are not just another dog treat or toy. Some things I've looked at are GPS collars, harnesses, car seat covers, led collars, etc. Trying to stay away from products that could fail and be returned.


Please let me know your opinions/suggestions guys as I greatly value them. One of these businesses is getting launched guaranteed. I will start a progress thread once a decision is made.

 

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[dknise]

Idea 1: A Facility Services company for residential customers: Think Fm Facility maintenance but for the average homeowner. We will build a large network of qualified professionals to service nearly all the needs of a typical homeowner (lawn, pool, home repair, exterminator, etc).

Benefit to the homeowner: One number to call for all needs, peace of mind with quality background checked companies, one bill for all services

Benefit to the vendor: Increased business without the hassle of billing and customer support

We will most likely make our money by either taking a percentage of the vendors bid or by tacking money on top of their bid. I'm big on quality control, but by having our own employees scalability would be significantly more difficult. With this model we could be relatively large quite quickly.

I LOVE this idea.

1) Is there any pre-existing businesses or services that offer this? Are they online or offline?
2) Will the core user experience be online?

Check out the company MyClean (myclean.com). They have excellent execution and plan for expansion. I think you've got a similar model in line to them, but offering everything under the sun as a one stop shop. That's fantastic.

 

[SeanKelly]

Thank you David! I have quite a bit of research ahead of me

 

[Tom.V]

Sean, I'll leave number 2 to someone a bit more experienced.

As for #1:

Look at companies like HomeAdvisor(previously ServiceMagic), DoneRight, ServiceLive, and WhereIsMyContractor. Big money in the lead distribution business, but you need a fairly extensive infrastructure with a shit ton of manpower. Shoot me a PM.

 

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[JEdwards]

Easy Number 1 is the better choice.

 

[SeanKelly]

Easy Number 1 is the better choice.

I looked back at my post and it almost seemed as if I just threw #2 in there for the hell of it. #1 is where my interest lies

 

[exige]

Isn't #1 basically AngiesList?

 

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[Mike Kavanagh]

Isn't #1 basically AngiesList?

Yes. And No.

Look up FM Maintenance. They provide easy access to skilled labor that has been extensively vetted by them,in a warehouse setting.
Angie's List is a website that only provides customer approval or disapproval.

He is going to go the FM route.

 

[TopChef]

Number 1 easy. If this was near me I would jump at the chance to use your service.

I would look at Amazon Prime as a model in that Amazon is so generous with product returns and is so doggedly pro customer that it is a no brainer to order from Amazon. You should look to price in generous customer rebates when the lawn mower guy runs over the flowers or the AC guy keeps blowing appointments.

This may mean little to no profits while you are building your brand, but if done properly customers will use your service on autopilot and vendors will concede a lot to join your company.

 

[SeanKelly]

I would jump at the chance to use your service.

This really excites me and I greatly appreciate your suggestion. As you've said, building the brand is more important to me initially.

 

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[MJ DeMarco]

Idea 1: A Facility Services company for residential customers: Think Fm Facility maintenance but for the average homeowner. We will build a large network of qualified professionals to service nearly all the needs of a typical homeowner (lawn, pool, home repair, exterminator, etc).

I'm going to echo the previous sentiments. This is a spectacular idea. The business can take care of air filters, pool cleaning, landscaping, and everything to keep the "facility" running, including on demand maintenance. (The toilet doesn't work!)

Talking about the potential makes me excited! (And holy F*ck, I'm NOT passionate about cleaning toilets or facility management in any capacity, but THIS excited me.)

First, I would use it. Every time something goes wrong at the house, I HATE having to sniff through service providers. Even if you belong to Angie's list, you still have to do this. If I could just CALL one number, every single time, (And I knew the price was competitive and honest) I would love it. I would target affluent homeowners.

Second, I love the idea because it is more of a traditional B&M business. I'm starting to see a lot MORE opportunties in traditional, offline space, than online. Why? Everyone (especially young people) only look for opportunities online, internet, mobile, because of its sparkly glamorous potential.

Your idea isn't glamorous and likely won't be attacked by ever would be entrepreneur because it is NOT a sparkly web concept with immediate scale.

I can easily see something like this becoming a $100M company with franchises, of course, properly executed.

It also is a business that has the potential for expansion loops-- satisfied customers will generate new business as they rave about your service. The loop exponentiates with your marketing efforts.

 

[SeanKelly]

I'm going to echo the previous sentiments. This is a spectacular idea. The business can take care of air filters, pool cleaning, landscaping, and everything to keep the "facility" running, including on demand maintenance. (The toilet doesn't work!)

Talking about the potential makes me excited! (And holy F*ck, I'm NOT passionate about cleaning toilets or facility management in any capacity, but THIS excited me.)

First, I would use it. Every time something goes wrong at the house, I HATE having to sniff through service providers. Even if you belong to Angie's list, you still have to do this. If I could just CALL one number, every single time, (And I knew the price was competitive and honest) I would love it. I would target affluent homeowners.

Second, I love the idea because it is more of a traditional B&M business. I'm starting to see a lot MORE opportunties in traditional, offline space, than online. Why? Everyone (especially young people) only look for opportunities online, internet, mobile, because of its sparkly glamorous potential.

Your idea isn't glamorous and likely won't be attacked by ever would be entrepreneur because it is NOT a sparkly web concept with immediate scale.

I can easily see something like this becoming a $100M company with franchises, of course, properly executed.

It also is a business that has the potential for expansion loops-- satisfied customers will generate new business as they rave about your service. The loop exponentiates with your marketing efforts.

WOW coming from you that is a big deal for me! I'm really excited because it not only serves a need, I actually have a passion for it. Might sound crazy, but I've always loved cleaning/fixing/renovating etc. I cannot wait to get this off the ground and start a progress thread. I appreciate your support big time!

 

[skylizard]

I think #1 has a ton of potential. Would it be similar to one of those home warranty programs that are sold to new home owners? I know it's not a warranty, but would it be similar in the sense that an owner pays x amount per month or year and to get a certain level of repairs/service?

 

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[ZDS]

I see a huge opportunity partnering with real estate agents... Many first time buyers would have no idea who to call / where to go for solving many problems. Much less know if its competitively priced. Call a real estate agent (They are always looking for new income streams) -- tell them you'll pay them X for every referral.

 

[skylizard]

I see a huge opportunity partnering with real estate agents... Many first time buyers would have no idea who to call / where to go for solving many problems. Much less know if its competitively priced. Call a real estate agent (They are always looking for new income streams) -- tell them you'll pay them X for every referral.

That's why I was asking my question. I bought my first home just a few years ago and our realtor offered us a product very similar to this, but they referred to it as a "home warranty". You basically paid a set amount each year for a certain level of service. For example, we paid $450 for a year for their basic service. If something went wrong in my home I would just call the one number for the warranty place. They'd take care of having someone scheduled and come over and they'd pay the bill. All I owed was a $75 deductible. I actually came out ahead over the two years that I used their service as I had some pretty costly ac repair bills that they covered. So whether it was my dishwasher leaking, my ac unit not cooling properly, or a leak in the bathroom, they'd be the one number I called.
I loved the convenience of only having to call one number when an issue arose, but I think that company actually lost money on having me as a client, lol.
Anyways, I'm just curioous as to whether SeanKelly would do it in a similar fashion. I also think that it would depend on what area he lives in. Areas with many HOAs might be a problem since a lot of the HOAs in my area are already offering a service very similar to this. Property Management companies are starting to build their own in house maintenance company so that their homeowners call them for any of their needs. And since they use their own maintenance men, they can offer it at a lower cost instead of being a third party. At the end of the month they just send the homeowner one bill. So just something to think about.

 

[Mrs. BRKb]

By investigating the existing industry (these are franchises) you may be able to stream past the potholes that have caught your competitors.
Handyman Connection
Mr. Handyman
Andy OnCall
Mr. Handyman Intl.
House Doctors
HandyPro Handyman Services

 

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[EvanOkanagan]

Are you thinking something similar to Task Rabbit?

 

[SeanKelly]

I think #1 has a ton of potential. Would it be similar to one of those home warranty programs that are sold to new home owners? I know it's not a warranty, but would it be similar in the sense that an owner pays x amount per month or year and to get a certain level of repairs/service?

Not exactly. The repairs and services will be billed at a standard rate but the total cost will vary from home to home. I don't want to get beat when larger repairs are necessary. Just to cut the grass each week will total over $1,000 per season.

I see a huge opportunity partnering with real estate agents... Many first time buyers would have no idea who to call / where to go for solving many problems. Much less know if its competitively priced. Call a real estate agent (They are always looking for new income streams) -- tell them you'll pay them X for every referral.

Luckily I am friends with a number of realtors. I utilized their leads when I had my landscaping business and plan to do the same thing again. Thanks for your suggestion!

By investigating the existing industry (these are franchises) you may be able to stream past the potholes that have caught your competitors.
Handyman Connection
Mr. Handyman
Andy OnCall
Mr. Handyman Intl.
House Doctors
HandyPro Handyman Services

Thank you so much for providing this information! Speed+

Are you thinking something similar to Task Rabbit?

No this is more contract based, predictable work from large, reputable companies. We will simplify the home maintenance/repair process by providing insane value in the customer service area. Plenty of individuals/companies can do a great job labor wise, but their customer service usually sucks. Then as a homeowner try locating, hiring, scheduling, and paying several companies for various work. It's just too tedious (even when the job goes as planned)

 

[Steve37]

Pretty interesting concept. It will certainly come with it's own set of challenges with so many moving parts, but there is certainly a lot of value there. I would definitely pay for this service and would be ecstatic if it had a robust online presence that allowed me to schedule services / submit requests / get quotes / make payments, etc. Almost everyone in home services is a$$ backwards when it comes to any use of technology to make anyone's life easier.

This would also be a nice service for vacation homes / 2nd homes / etc.

 

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[million$$$smile]

Also, I could see possibly contracting with insurance companies regarding flood, hail, smoke, even fire damage. I know that there are already companies ie. Paul Davis Restoration that specialize in that market, but perhaps 'light' damage, ie fence, window, lawn/landscaping damage etc. would be an added asset.

Just a thought...

 

[JEdwards]

I'm starting to see a lot MORE opportunities in traditional, offline space, than online. Why? Everyone (especially young people) only look for opportunities online, internet, mobile, because of its sparkly glamorous potential.

.

I have been saying this for quite a while, kids now a days are thinking about how to make the next "How to pick up chicks site" But reality is there is a ton more money in a taco stand.

 

[Mike Kavanagh]

ton more money in a taco stand.

God aint that the truth. I frequent a pit beef barbeque stand about once a week. It's ten bucks for a pulled pork sandwich that you can hardly finish. They pay about $1-2 per sandwich and upsell soda and water. Best pulled pork sandwich I've ever had though!

 

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[Vigilante]

Traveling from the Pacific islands over the next day or so back to the mainland. Will check in on this thread next week and see how you are doing.

It was quite a chore to qualify installers for a single industry (consumer electronics installation) as each state had varied requirements for licensing. So, what you are thinking about is not impossible, but spanning multiple industries would be a Herculean effort.

First tip? Have each one of your service providers add your company as an additional insured on their insurance company policy. That way, if they screw anything up and the customer sues them and you, their insurance covers you. Keep this up to date. I had one paralegal doing this part time. If the servicer doesn't have insurance and a valid certificate with you on file and current, they don't get the work.

Good luck. I will watch your progress, and when you are a month or so beyond an idea and taking action, we can have a quick phone call to discuss any barriers you are finding and how to overcome them.

Cool idea.

There are some similar national competitors. Find them, study them, copy them. What do they do well? Where do they fail? Repeat what they do well, and fix or eliminate all together where they fail.

When we started our installation company, there were 15 year established titans in the field. We beat them all by using Sam Walton's model of copying best practices, and not repeating their worst practices.

Good luck.

 

[Tom.V]

There are some similar national competitors. Find them, study them, copy them. What do they do well? Where do they fail? Repeat what they do well, and fix or eliminate all together where they fail.

When we started our installation company, there were 15 year established titans in the field. We beat them all by using Sam Walton's model of copying best practices, and not repeating their worst practices.

Yep, yep, yep! It's all about cherry picking. Can I speed+ lightspeed? What's next, time travel?

 

[Mike Kavanagh]

We beat them all by using Sam Walton's model of copying best practices, and not repeating their worst practices.

Also a concept in Blue Ocean Strategy. I'm reading it now myself.

 

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[SeanKelly]

I Cannot thank you enough Vigilante. I'm way too pumped about this opportunity to become scared of the obstacles, but i do agree that maybe I should limit services/service areas initially and build it out as we go. I'm going to work out the legalities early on so that i will have an easier time scaling later on. FM facility also does the additional insured method as its a great idea. So far I've been studying a few companies and have printed out all of their vendor contract forms, guidelines, and other valuable information by making fake accounts so that I can study their practices even more. Overall, thank you for your insight and I can't wait to update you on my progress. I love a good challenge

 

[SeanKelly]

I have been saying this for quite a while, kids now a days are thinking about how to make the next "How to pick up chicks site" But reality is there is a ton more money in a taco stand.

I disagree... I really think my dating app is going to blow up soon

 

[DeletedUser2]

#1

for long term Fastlane. THIS

why?

because you can "make it local" see what FM did. 2 you can execute on small scale 1st and roll out FAST to other areas
3 you can use the craiglist model, (the only started in SF and branched out from there, over time) but grew HUGE.

you can target your customers very directly (IE. house values, those above the 500K mark are more likely to use this kind of service.) this means you can have extremely targeted advertising, for best leverage.

you can piggy back off some other services (ADT alarm, is in alot of houses, and they could probably do a Rev share based on their database.)

I would like to see how you map it out, and focus on the customer experience. if you do that, then you can seriously show where you need to focus to scale.

it lends itself to a zappos type customer experience, allowing for people to do word of mouth recommendation fast.

your customer database becomes extremely valuable source of revenue in the future when you market to home owners.

Provide your "providers" with a app. that allows for super fast interactions, super fast payment of the contractors, Control of the money flow, geo targeted serviceability, instant in app photo proof of work completed, and historical database for the next contractor to see what was done to that HVAC unit.


this, with the right play, could be huge.

As you know. its all about execution. do it with pen/paper and in your local area first.
THEN build out the cool stuff later.

1. get the contractors. interview them. get good ones.
2. go door to door in a nicer neighborhood with a simple flyer, We interviewed only the best contractors, and have them on speed dial for you. call us if you need any help with any of the following.
1. house cleaners, HVAC, Pool, Lawn, roofing. leaks, Plumbers, electrical, remodels, upgrades, ANY home Improvement, you want to do, with out lifting a hammer.

3. we will guarantee their work. if you don't like you don't pay. (get contractors to offer this also.) and test it. see if its a good upsell or not.
4. lay out the benefits of YOU interviewing the people to remove Scumbags, Idiots, and non insured people. Only "true get it done workers"
5. go out with the first couple. meet the people, shake their hands, tell them you are here to save them money and time. and you appreciate the work.

put flyers out for 3 weeks, every day.
have a follow up "survey" get the customer data into a spread sheet.

at the end of a month or 2 you now have enough info to know what to build into a website, a system, a database, and app. and you have some money.

then you run like hell to scale this up



Good luck, Ill be looking for the "success article" in business weekly.

Z

 

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[Chitown]

Go get 'em, SeanKelly!:eusa_clap:

 

[DeletedUser2]

BTW

here is an example of a wide network play,

20 Great Ideas To Steal In 2013 -- InformationWeek

read about dish network


Dish Network
Dish Network Service (DNS) is responsible for all of Dish Network's home appointments. With 15,000 field technicians responding to 23,000 customer home satellite installation and repair appointments per day, DNS requires a lot of coordination. In 2012, DNS replaced expensive three-year-old Windows tablet PCs, push-to-talk phones and in-vehicle GPS devices with a program it calls SmartMobility. SmartMobility consists of mobile device management and an Android device -- the Samsung Galaxy Note "phablet." The program's key benefits include the use of a more modern hardware/OS/apps package through Android and Samsung; less training for technicians already familiar with the consumer-friendly OS; the elimination of third-party GPS devices and $1,800 Windows tablet PCs; and low replacement costs when devices get old.
Savings from SmartMobility over the past year came in at several million dollars from consolidating to one consumer-grade device, using pooled voice minutes and a single data plan, and eliminating tablet PC repair costs. Replacing a Windows-based machine with an Android smartphone has decreased reboots, increased battery life and reduced time spent in-vehicle because technicians can always carry the devices with them.


Poof. Your Resi App already exists, now you just need to prove the market, deploy it, customize it and scale like a bad a$$!



Z