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- Jul 26, 2007
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So, I'm finally here in the house in Las Vegas. For those of you who don't know, I bought a REO (Real Estate Owned) home. After about a week of moving into the home, I received a hand addressed letter in the mail; it didn't look like junk mail, so I opened it. Turns out it was a letter from a company that specializes in helping homeowners who buy foreclosures and who are then left with fixing EVERYTHING in the house (yes everything.) These REO homes often sit vacant for MORE than a year and have problems that the home inspections aren't finding.
Anyhow, so I got to thinking about this guy's business idea, and I just think it's so clever that I wanted to post it here--especially for newcomers who have less than a $1000 to put into a business.
Here's my guess as to the behind the scenes of his business plan:
1. Contact a variety of companies that a new homeowner with a trashed house will need: housekeepers, carpet cleaners, window treatment people, lighting, painters, cabinet installers, plumbers, AC repair, electricians, pool cleaners, yard maintainers/landscapers, fireplace repair, interior designers, carpet/tile/flooring people, etc.
2. Ask these people if they'd like to work with you on a referral basis. If you find them business you get x%. Perhaps it's 10%; perhaps it's more. Get your agreement in writing.
3. Contact a title company and get a list of REO homes that are set to close. Turn that list into your mailing list and start stuffing some envelopes.
4. Have the letter that goes out have your business name and number on it, along with a business card that lists the services you can help them with.
5. When a customer calls your store you gather their contact info and then pass it along to your service provider. Explain that someone will be contacting them within the next 24 hours, and that you will follow up with the to be sure someone has. Call your providers, give them the info--explain that you will be following up with them as well as with the customer.
6. Follow up with the customer and then bill the service provider. (Or perhaps split the billing in another way?)
Obviously, this is lead generation in mailbox form vs. internet, but as a new homeowner who may not have internet hooked up yet or may not know where to go in town to find reputable companies--or don't want to mess with anymore crazy people found on Craigslist (like I found), this could be a viable business idea. You could of course always take this idea and add an online component where potential custmers could search your pre-screened companies and you get paid for online leads that you generate as well.
Just some thoughts.
Anyhow, so I got to thinking about this guy's business idea, and I just think it's so clever that I wanted to post it here--especially for newcomers who have less than a $1000 to put into a business.
Here's my guess as to the behind the scenes of his business plan:
1. Contact a variety of companies that a new homeowner with a trashed house will need: housekeepers, carpet cleaners, window treatment people, lighting, painters, cabinet installers, plumbers, AC repair, electricians, pool cleaners, yard maintainers/landscapers, fireplace repair, interior designers, carpet/tile/flooring people, etc.
2. Ask these people if they'd like to work with you on a referral basis. If you find them business you get x%. Perhaps it's 10%; perhaps it's more. Get your agreement in writing.
3. Contact a title company and get a list of REO homes that are set to close. Turn that list into your mailing list and start stuffing some envelopes.
4. Have the letter that goes out have your business name and number on it, along with a business card that lists the services you can help them with.
5. When a customer calls your store you gather their contact info and then pass it along to your service provider. Explain that someone will be contacting them within the next 24 hours, and that you will follow up with the to be sure someone has. Call your providers, give them the info--explain that you will be following up with them as well as with the customer.
6. Follow up with the customer and then bill the service provider. (Or perhaps split the billing in another way?)
Obviously, this is lead generation in mailbox form vs. internet, but as a new homeowner who may not have internet hooked up yet or may not know where to go in town to find reputable companies--or don't want to mess with anymore crazy people found on Craigslist (like I found), this could be a viable business idea. You could of course always take this idea and add an online component where potential custmers could search your pre-screened companies and you get paid for online leads that you generate as well.
Just some thoughts.
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