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Hey guys,
It's been a while since I last posted about my Home Maintenance company (https://www.thefastlaneforum.com/community/threads/narrowed-it-down-to-two-ideas.48041/) but I would like to update everyone on the status of that. I'd also like input on three ideas I've had for a while.
So here's why I believe the business never took off:
On the contractor side of things...
1. The contractors wanted EVERYTHING on their terms which caused much hassle for me as the middle man between them and the clients.
2. Contractors love to not show up on time or at all which leads to scheduling issues and lost revenue.
3. For the most part, contractors own their own job rather than business and so it was hard for them to find time to complete the requests I was receiving on top of their own.
4. I was seeking out the "best of the best" without realizing (until after the fact) that the "best of the best" were already busy and highly sought after.
On the client side of things...
1. People did not see the value in using my service over others such as angies list, yelp, etc
2. People typically would use my vendors for the first service and then eliminate my company from the equation.
There were more, but those were the most prevalent.
I FULLY understand that with enhanced procedures I could have worked to eliminate some of these problems, but with the model I set up I was burning cash fast. I have since decided to refocus on something else that I think will prove to be more fast lane in the long run.
So on to the new fresh ideas that I am excited about starting. I will be choosing one this weekend and starting it this upcoming Monday.
Idea 1:
Refocus the Home Maintenance (everything from landscaping to roofing) to more of a minor repair business. Instead of focusing on large diversified projects, I'd send guys out for smaller, more manageable jobs similar to the typical handyman service.
Pros - Already have a few contractors signed on
Cons - Still have to deal with contracts, payment terms, etc instead of simply selling leads like HomeAdvisor.com
Idea 2:
Similar to idea 1, but solely concentrated in one particular industry. For example, due to my experience I was thinking about launching a similar service for lawn maintenance. We would find customers across the country, sign on reputable maintenance companies, and then take a $5.00 cut from each lawn service. 4 service a month * $5.00 * 5000 lawns = $100,000 a month. Even if we're only in a few cities 5000 lawn accounts would not be difficult to get with decent advertising. There are also other services (landscaping, leaf cleanup, etc) that we could potentially take a cut of.
Pros - I have experience in the industry. Scalability is good
Cons - Keeping track of all customers and independent contractors will be difficult. Seasonal
Idea 3:
Non-medical senior care. Was originally going to do in house with employees, but already foresee scalability issues with the cost of employees. If I decided to pursue it, I would use a model similar to Jack's INSIDERS's call in order to receive and then sell leads.
Pros - Baby boomer market is growing rapidly. Highly needed service in that particular demographic
Cons - Difficult to get leads. Lots of red tape and licensing requirements. Service is extremely personal and also long term which places more liability on my company
I'd really like your input on these ideas guys. One of these will be launching Monday. I've learned a lot from my failure, but I'd like to make my next venture a success.
My main goal here is to scale quickly by taking Jack's approach of serving as the marketing department for the existing service providers and taking a cut of each job.
Thanks guys! Please ask any questions you may have and also share your input!
Sean
It's been a while since I last posted about my Home Maintenance company (https://www.thefastlaneforum.com/community/threads/narrowed-it-down-to-two-ideas.48041/) but I would like to update everyone on the status of that. I'd also like input on three ideas I've had for a while.
So here's why I believe the business never took off:
On the contractor side of things...
1. The contractors wanted EVERYTHING on their terms which caused much hassle for me as the middle man between them and the clients.
2. Contractors love to not show up on time or at all which leads to scheduling issues and lost revenue.
3. For the most part, contractors own their own job rather than business and so it was hard for them to find time to complete the requests I was receiving on top of their own.
4. I was seeking out the "best of the best" without realizing (until after the fact) that the "best of the best" were already busy and highly sought after.
On the client side of things...
1. People did not see the value in using my service over others such as angies list, yelp, etc
2. People typically would use my vendors for the first service and then eliminate my company from the equation.
There were more, but those were the most prevalent.
I FULLY understand that with enhanced procedures I could have worked to eliminate some of these problems, but with the model I set up I was burning cash fast. I have since decided to refocus on something else that I think will prove to be more fast lane in the long run.
So on to the new fresh ideas that I am excited about starting. I will be choosing one this weekend and starting it this upcoming Monday.
Idea 1:
Refocus the Home Maintenance (everything from landscaping to roofing) to more of a minor repair business. Instead of focusing on large diversified projects, I'd send guys out for smaller, more manageable jobs similar to the typical handyman service.
Pros - Already have a few contractors signed on
Cons - Still have to deal with contracts, payment terms, etc instead of simply selling leads like HomeAdvisor.com
Idea 2:
Similar to idea 1, but solely concentrated in one particular industry. For example, due to my experience I was thinking about launching a similar service for lawn maintenance. We would find customers across the country, sign on reputable maintenance companies, and then take a $5.00 cut from each lawn service. 4 service a month * $5.00 * 5000 lawns = $100,000 a month. Even if we're only in a few cities 5000 lawn accounts would not be difficult to get with decent advertising. There are also other services (landscaping, leaf cleanup, etc) that we could potentially take a cut of.
Pros - I have experience in the industry. Scalability is good
Cons - Keeping track of all customers and independent contractors will be difficult. Seasonal
Idea 3:
Non-medical senior care. Was originally going to do in house with employees, but already foresee scalability issues with the cost of employees. If I decided to pursue it, I would use a model similar to Jack's INSIDERS's call in order to receive and then sell leads.
Pros - Baby boomer market is growing rapidly. Highly needed service in that particular demographic
Cons - Difficult to get leads. Lots of red tape and licensing requirements. Service is extremely personal and also long term which places more liability on my company
I'd really like your input on these ideas guys. One of these will be launching Monday. I've learned a lot from my failure, but I'd like to make my next venture a success.
My main goal here is to scale quickly by taking Jack's approach of serving as the marketing department for the existing service providers and taking a cut of each job.
Thanks guys! Please ask any questions you may have and also share your input!
Sean
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