Whatever your need our highly experienced; multi skilled tradesmen can deal with a wide range of tasks all in one visit if required. No job too big or too small we will remodel your home or change a light bulb. The price of the task will be reasonable and the work will be guaranteed and we will fix it if not done right.
Business Opportunity
Johns Handymans Service has identified two segments and they are the homeowners and also the property managers. These customers are the ones who will have repairs that need to be done that are too complicated for the customers but could be to small to contract the repair out to a contractor. The homeowner market that should be concentrated on is the elderly since they might not have the physical capability to perform the task. The idea for having a reliable home maintenance company on speed dial is that there are a ton of small jobs around any home that can arise and leave an elder feeling helpless (Bursack, n.d.).
Financial Projections
Johns Handyman Service will bill the customer at an hourly rate of 30 dollar a hour no matter what the service. This way the consumer is encouraged to use the service for multiple repairs on the same visit. The first year sales are projected to be at 19,000 dollars with 25 percent of the sales coming from plumbing and 20 percent in electrical. The second year total will be 56,000 dollar and the third year total be 75,000 dollar.
Industry Environment
Overview of the Industry
When homeowners or landlords dont have the knowledge to fix a problem they call a handyman to complete the task. These services have a wide range from plumbing, electrical, painting, and door repair to name a few. Home sales are on the rise and this will increase the industry workload because the seller will need repairs or improvements to sell the house, the buyer might want improvements to suite their eye and consumers will spend roughly one percent of their home value each year on maintenance (Goldberg, n.d.). Either handyman businesses or contractors perform the home repair industry. A handyman business usually performs small item repair where a contractor usually completes a more extensive project.
Projected Position for the Future Within one year develop the business into a full-time employment with six employees. Word of mouth referral should increase customers at a rate of 25 percent per year and to achieve this good referral is to ensure every customer has their expectations exceeded. To gain market share is to have reasonable hourly rates and a one-hour minimum.
Potential Customers
The average value of a house in Colorado Springs in 213,000 dollars and there are 180,000 houses in the Colorado Springs city limits in 2010 (US Census Bureau 2010). If the homeowner does not know what they are doing they will call someone to perform the repair for them. Over 70 percent of elderly families own their own home because they have psychological attachments to their homes (University of South California, n.d.). The elderly will need assistance to perform general repair of their home and this is why they should be a potential customers. Property manager if they have less than 20 units will hire someone to perform there repairs for them if they have more than 20 units they usually have an onsite maintenance person to perform these tasks. The cheapest and easiest way to build a handyman business is through existing customers who either hire you again or refer their neighbors to you (Truex, n.d.). . Direct Competitors
Johns Handyman Service HandyMan Stan Dan Handyman Sales $19,000 $25,324 $44,136 Net Profit (Loss)
Employees 1 1 1 Market Share 3.2% 4.95% 8.9%
Marketing
Business Opportunity
There is only five-listed handyman services listed in the Colorado Springs city limits but there are many other services that specialize in other areas such as plumbing, electrical and painting. The opportunity is have one place to call for any problem that comes up in the home with a friendly face that the customer knows and trust to do a good job at a fair price.
Company Impact
A few of the handyman services have a two hour minimum when it comes to a job and many customers feels the jobs they have done will take less than one hour and we will take advantage of these small repairs at a reasonable price. Word of mouth is the best form of advertisement and when it get around that we offer a great service for an affordable price the number of customers will increase.
Company Strategy
Johns Handymans Service will market a strategy that seeks to develop awareness regarding our expertise, high level of trust, one-hour minimum service and our low hourly rate no matter what the project is. Along with Facebook pages and posting adds in the local newspaper we will print flyers and post them at American Legions, Veterans of Foreign War, and places of worships to get the word out for those elderly that doesnt get on the internet.
Benefits Matrix
Customer Pain Points Benefits Emergency Repairs Available anytime and the rate remains the same More than one thing wrong Will fix as many items and will only charge by the hour and not the job Outdoor and Indoor problems Will fix any problems in or out of your house Dont know what is wrong Call and we will let you know what we think it is and how to fix it free of charge Dealing with different people from the same company Is only one person now but when more employers are added will send out the same person to do the repairs.
Operations
Organizational Structure
In the first year will only be one employee but when the company grows will hire a receptionist and additional handymen. The owner, John will be the boss and will be in charge of all employees.
Capital Requirements
There are no capital requirements needed to start up the business. The owner owns a tuck and has all of the various tools needed to run the business. These tools range from pluming, electrical, painting, pressure washer, and various power tools. The owner has a mobile phone and a laptop with a portable printer for invoice printing.
Core Operations
There will be some risk management when it comes to any job big or small from getting on a roof to working with electrical problems. We will adhere to all job codes and will have the proper licenses to perform the task at hand. The company will be insured as well in case there is a mishap it wont be against the customer.
Financial Projections
The sales forecast is a conservative projection and is based on the top reason what is wrong with a home.
Sales Year 1 Year 2 Year 3 Plumbing $4,250 $12,500 $16,500 Electrical $3,698 $10,875 $14,399 Fences $782 $2,875 $3,807 Windows $1,360 $4,000 $5,296 Paint $2,508 $7,375 $9,765 Misc $3,869 $11,375 $15,061 Total $19,410 $53,500 $70,834
The break even point would be $2,500 based on the maintenance and gas for the truck which would be 800 dollars, mobile bill 100 dollars, 400 for supplies, 500 dollars for insurance and 700 dollars for wages.
References
Bursack, C. n.d. Maintenance and Repair Services Let Seniors Keep Living at Home. Retrieved from http://www.agingcare.com/Articles/home-maintenance-repair- services-for-seniors-allow-independence-139091.htm
Goldberg, E. n.d. Home Supply Franchise Demands Decline As Handyman Franchises Boom. Retrieved from http://www.franchising.com/articles/home_supply_ franchise_demands_decline_as_handyman_franchises_boom.html
Truex, L. n.d. How to Make a Profit in a Handyman Business. Retrieved from http://smallbusiness.chron.com/make-profit-handyman-business-4782.html
University of Southern California. n.d. Housing Problems and Options for the Elderly. Retrieved from http://gero.usc.edu/AgeWorks/core_courses/gero500_core /housing_lect/
United States Census Bureau. 2010. State and County Quick Facts. Retrieved from http://quickfacts.census.gov/qfd/states/08/0816000.html