Date: February 12th, 2013

Time: 9:30am-11:00am PST / 12:30pm-2:00pm EST

Home Performance from Scratch

Efficiency First’s vision is to make the delivery of quality energy efficiency services reliable, scalable, sustainable and profitable.

To realize this vision we will work to:

– Align industry standards

– Facilitate industry group collaboration

– Create customer centered programs

– Seek sustainable incentives that drive action

– Encourage standardization in a fragmented market

– Be profitable by doing the right thing

For a complete list visit: www.efficiencyfirst.org/member-benefits

Advocacy and Networking

• National, state & local networking opportunities with EF members and chapters

•Support for EF’s advocacy on industry growth initiatives at the national, state and local levels

Member Education •Free access to 15+ live HP success webinars/yr

•Access to the Efficiency First online Webinar Library

•BPI CEU opportunities from live webinars & webinar quizzes

•Home Performance Office Hours

•Business Development Tools

Member Benefits

Web Services:

•EnergyCircle PRO: $250 off setup fees

•Right Brian Branding: Free web review

•Warm Thoughts Communication: 10% off services for 12 mo.

Efficiency First:

•Efficiency First logo for your promotional materials

•Customizable HP marketing brochures and materials

•Hiring Toolkit to build your home performance team

And more new benefits added all the time!

For a complete list visit: www.efficiencyfirst.org/member-benefits

Direct Benefits & Discounts

Trainings and Conferences:

•ACI Conferences: Up to $150 off registration per attendee

•Energy Conservation Institute: 5% off tools, 10% off training

•TruTechTools: 3% discount, $75 of reward points/yr

Home Performance Software:

•iHEAT from Hancock Software: 5% off, 3 free jobs

•TREAT from PSD: 10% off TREAT software

Trade Allies and Publications:

•EGIA membership: $55 off first-year dues

•Home Energy Magazine: $20 discount

•Green Builder Magazine: 10% discount

Member Benefits

Upcoming Webinars

Inside the Envelope: Building an Effective Home Performance Office Team

April 2nd, 2013 @ 9:30am PST / 12: 30pm EST

BPI CEUs Pending

For registration and more information, visit:

http://www.efficiencyfirst.org/education/upcomingwebinars/

Must Attend ACI Events

2013 ACI National Conference and Leadership Summit

April 29 -- May 3, 2013 -- Denver, CO

Women on Board Webinar Series

February 21 / March 27 / April 24 / May 22

http://www.affordablecomfort.org/register-events

http://www.affordablecomfort.org/womenonboard

On this webinar, panelists will discuss:

• Case studies of successful recipes of home performance companies—what do you absolutely need and what can you do without

• Strategies to decide when you are ready to build your own home performance business or when you are ready to grow an existing business

• How to capitalize on existing personal and business skills to cultivate home performance success

SESSION OBJECTIVES

Dan Thomsen| President and Founder

Building Doctors •Building Performance Institute (BPI) certified Building Analyst and Envelope Specialist

•California Building Performance Contractor’s Association (CBPCA) trainer & verified contractor

•Efficiency First founding member, So Cal Chapter Chair and on the Board of Directors

•California Home Energy Ratings System (CHEERS) certified HERS Rater

•Home Performance with Energy Star program verified contractor

• Energy Upgrade California program verified contractor

•Build It Green certified green professional

The Road to Home Performance

•What did you do before HP?

I used to buy homes in Los Angeles remodel them and resell them until the bottom of the market fell out.

•Why HP?

Saw nobody was doing it here in Los Angeles as a one stop shop and jumped in with both feet

•What was the first thing you did when you decided to get into HP?

Took classes and got certified as a Building Analyst with BPI

General Contractor Model • Use Sub-contractors to install the upgrades

Pros - More independent, less overhead in payroll, tools, insurance, etc.

Cons - Most expensive model, quality concerns, scheduling headaches

One Stop Shop • All work done in house

Pros - More profitable, easier to control quality, much easier to schedule, client rapport

Cons - More overhead, requires training, need to keep crews busy, hard to hire

Hybrid

•In-house crews combined with Subcontracted work

Pros - Can scale up faster, more control of scheduling than with subs alone, client rapport

Cons - Scheduling challenges, less profit, can be confusing to the client

Three Business Models

Executive Summary • Written last, the executive summary is an outline of key points in your business plan.

More marketing-oriented than the basic plan, it's the tool you use to entice people to ask to see your full plan document.

Business Model Begin with an introduction to the industry and your mission statement.

1."Company Description:" include all the pertinent facts, such as your incorporation or other legal business status, licenses, trademarks and patents.

2. "Business Model:" describe your services, how you intend to make money and why the business is relevant.

3. "Management:" if you have a team in mind, list them and their job duties.

Business Plans

Marketing Model • "Target Market" is the section in which you describe the demographics, psychographics

and buying habits of your target market and why your service will appeal to it.

• "Marketing Plan" is a detailed description of your marketing strategy and tactical methods of attracting business.

• Finish with your "Competition" section, in which you list your competitors, with a realistic appraisal of their strengths, how your company compares and your strategic and tactical plans for developing and maintaining market share in your competitive niche.

Build Out Model • Outline the steps to launching your company, if you're pitching a startup. It's

appropriate to include benchmarks and a timeline. Investors also appreciate a discussion of how your costs of development and operations fit into the timeline and when revenues enter the equation. For a business plan dealing with expansion, this section should detail the road map to your final goal. In an operational business plan, human resources, contract development, corporate change and administrative reorganization can be mapped.

Business Plans

Contingency Plan • It's always a good idea to include a section on what you'll do if your plans don't

seem to be working out as expected -- particularly if you're planning a startup.

• This is the place to insert a SWOT analysis - a discussion of the strengths,

weaknesses, opportunities and threats facing your business goals.

• It's also another appropriate spot to discuss costs and how you plan to cover them or cut them if revenues or investments don't materialize as hoped.

Financial Projections • The final section contains financial projection spreadsheets. Standard are sales

projections, a personnel plan, a profit and loss statement, a cash flow statement and a balance sheet. If your company is already in operation, include current financials along with the pro forma financials.

Business Plans

On the Job Training

• Both Subs and your own crews will need to be trained in home performance

• Having your workers understand and be interested in Building Science is a key to improved quality work and a happy crew.

Quality Control

• Develop your companies standards for a variety of different measures, and then verify the work in the field. BPI or better!

A serious challenge in home performance contracting is the lack of experienced

crews available at all levels. This means you will be training people how to do the work

Extras

Extras (continued)

Attitude Is Everything • You need versatile employees who are willing to learn and understand

customer service.

Company Culture

• Your crew will be the face of your company.

How do you want to be represented?

Are you a casual, friendly, personal company?

Do you prefer a more corporate professional

appearance? Dress, hair styles, manors,

are all important considerations.

The Rearview Mirror

•What are you still working on?

Working on our systems

•What would you have done differently?

Remained smaller first then grown.

Also learn when to say no and not take on a customer.

Jeremy Begley| Owner/President

Cincinnati Energy Solutions LLC •BPI- Building Analyst /Envelope Professional/ Residential Building Envelope Whole House Air Leakage Control Installer and Energy Auditor pilot program participant

•RESNET- HERS RATER

•Founding Member, Chapter Chair and Board of Directors of Greater Cincinnati Chapter of Efficiency First

•Home Performance with Energy Star Contractor

•Greater Cincinnati Energy Alliance Contractor

Before Home Performance

20082008

Bartending

Studying Environmental Engineering and

Renewable Energy Technology

AND

Then, in 2009…

Training and Certifications

• BPI Building Analyst Certification/Envelope Professional

• RESNET HERS Rater

• (cost -$1200-$3000)

• Additional training from experienced field techs

Training and certification are not synonymous

Act AS IF

• Act As If (warning graphic language)

Build a Brand

• Logo ( Professionally Designed ) $200-$400

• Tag Line ( “ Creating Savings and Increasing Comfort While Reducing Your Carbon Footprint”)

• Website optimized for home performance $2500- Website Optimization -$2500

Social Media, Social Media, Social Media!!!

• Facebook

• Twitter

• Google +

• Linkedin

• Pintrest, Instagram, You Tube

• Peter Troast Energy Circle PRO

– http://www.energycircle.com/pro

Start Up Equipment List: Energy Auditor

• Blower Door set with extra manometer- $3800

• Combustion Analyzer- $800 • Gas Leak Detector $500 • Duct Pans( and optional duct

blaster)- $3800.00 • Little Giant Ladder- $80.00 • IR Camera- $2500.00 • Digital Measurer- $100.00 • Klien 11 in 1 Screwdriver-

$20.00 • 3 Kilowatt watt meter -

$40/each • Digital thermometer -$25 • Klein Tools Non-Contact

Voltage Tester -$25.00

• Siding Tool$15.00 • Boriscope$150.00 • 25 Ft hand tape measure-

$18.00 • Digital Camera(Or Phone with

8megapixel or better camera) • Drill and small bit set $150.00 • Gas Leak soap test$20.00 • Caulk Gun and high temp

caulk$30.00 • Headlight-$15.00 • Respirator $30.00 • Tablet style computer- $800.00 • Medium Tool Box$50.00 • Audit software of some sort

Start Up Equipment List: Retrofit Crew

• Intec Force II insulation blower with dense pack kit- $7500.00

• DowDow Froth-Pak Refill Systems for Two Part Foam $10,000 •2 each Everstar 1,500-Watt Portable Heater and Fan - $20/each

• 5 each workforce 60 : 25 caulk gun- $6/each

• 5 Sharpshooter-D can foam guns- $40/gun

• 1 each 28”, 39” barrel and bottom load Sharpshooter can foam gun dispensers- $100/gun

• 2 Ryobi starter combo kits- $100/set

• Rigid 16 gallon wet dry vac- $80.00

• DEWALT DW368 15 Amp 7-1/4 in. Circular Saw - $100.00

• DEWALT DW304PK 10 Amp Reciprocating Saw- $100.00

• DEWALT 7 in. Large Angle Grinder D28474W- $150.00

• RIDGID 2-1/2 in. 16-Gauge Straight Finish Nailer - $139.00

• Porter-Cable C2005 6-Gallon Portable Electric Air Compressor -$100.00

• Milwaukee 10 Amp 1-1/4 in. Drill with No. 3 Morse Taper 2404-1-$593.00

• Campbell Hausfeld Maxus 50 ft. x 1/4 in. Contractor Hose - $20.00

• 2 each RIDGID 100 ft. 10/3 Extension Cord -$133.00/each

• 2 each Rigid 50 ft 10/3 Extension Cord-$70/each

• 2each RIGID 25 ft Extension Cord- $39.00/each

• 4 each Commercial Electric Double-Brite Pro Grade 26-Watt Fluorescent Work Light - $30/each

• 4 each Rayovac Indestructible 3AAA 100 Lumen Headlight - $13.00/each

• 2 each Empire 48 in. Magnetic I-Beam Level - $60/each

• 2 each Workforce 16 Oz. Steel Claw Hammer - $7.00/each

• 2 each Dasco Pro 3 Piece Pry Bar Set - $10/each

• Husky 123-Piece Multi-Purpose Tool Set- $70

• Husky D-Grip Handle Aluminum Scoop - $33/each

• Rubbermaid 16 in. Street Broom - $32.00

• Rubbermaid 10-1/2 in. Angle Broom -$10.00

• Werner6 ft. Fiberglass Step Ladder300 Lbs. Load Capacity( Type IA Duty Rating ) $100.00

• Werner24 ft Fiberglass Ext. Ladder300 Lbs.Load Capacity(Type IA Duty Rating) $260.00

• Werner 16 ft Aluminum Ext. Ladder 225 Lbs. Load Capacity (Type II Duty Rating )$135.00

• Mis PPE including tyvex coveralls, respirator’s, Air machine, gloves,knee pads, ect.- $600

Other Costs to Consider

• Legal Start Up Cost-$1000-$5000

• Office \ Warehouse space $2-$4/sqft +utilities

• Employer Taxes

• Accounting cost

Really Learn Home Performance

• Building Science

• Air Sealing Techniques

• Types of Insulation- uses, best uses, cost going rate

• HVAC – know how to price systems at dealer cost even if you don’t handle installs in house

• Know the best system for the situation

• Be up on cutting edge home performance tech

Links to Be Familiar With

• RESNET BPI - Energy Audit and Home Performance Group

http://www.linkedin.com/groups?gid=1110797&trk=myg_ugrp_ovr

• Building Science Corporation

http://www.buildingscience.com/

• Energy Vanguard Blog

http://www.energyvanguard.com/blog-building-science-hers-bpi/

Donna Sanders | Energy Auditor & Thermographer

106 Greenway

•Founder, Co-Owner, 106 Greenway

•Founder & Past Chapter President of Kansas City Chapter of Efficiency First

•Building Analyst, BPI

•Certified Green Professional, NAHB

•Certified Thermographer

•Healthy Home Specialist, NEHA

•Certified Energy Auditor, AEE

The Road to Home Performance

Before Home Performance: •Home Rehabs •Owner of Tutoring Company-Leatherwood Tutors •Studied Solar from California to Wisconsin

Why Home Performance: •I like helping people •No day is the same •It’s fun

Value Proposition Solution

106 Greenway is an energy management firm. As a result of our safety, environmental, and

efficiency testing, we help increase environmental efficiencies safety, comfort, and

durability in buildings of environmentally responsible owners.

Efficiency First Experience

• Founder Local Chapter, Kansas City

• Founded EF Chapter June 2011

• Benefits of EF Membership--Networking, Partners, Member Discounts, Webinars

Revenue Drivers

• Founder Local Chapter, Kansas City

• Founded EF Chapter June 2011

• Benefits of EF Membership--Networking, Partners, Member Discounts, Webinars

Commercial MARKET Size

• Energy Cost $6.5Billion

• 500,000 buildings

• 3.0 billion sqft building space

Home Performance from Scratch?

• Training & Certifications (BPI-RESNET-AEE)

• Back-end Must haves (Marketing-Accounting)

• Cash Reserves

• Local Business Awareness (Orgs-Associations)

Trainings & Certifications

Which certifications help me the the most?

BPI BA-BS because they help you learn about how buildings work and give you a good foundation

Most helpful non-certification?

HVAC classes taken @ community college

•The certification course don’t cover HVAC…But it is something that is good to have since it provides a working knowledge for better testing results and better customer interactions

Motivations

•Job Rotation & Customer contact: In the office-In the field-Speaking to groups

•High Expectations: We expect to do well from initial energy audit reports to final post audit test out of performed energy upgrades

•Treating people well: Our team helps each other in-out of the office…We encourage everyone to lend a hand where needed-when needed

•Encourage Participation: Monthly team lunch..Sometimes have a partner business speak. Discuss the good- bad-ugly from everyone’s perspective

•Feedback: Internally we do this fairly well. Externally (with customers) we are just developing a consistent plan

Entry Strategy

Talks

Business Mixers

Market Entry

Leverage Socio-economic Designations

http://www.106greenway.com/events

Most helpful for us? Initially: Community Talks •Gives your team confidence •Necessary to think things through Now: Business mixers •Leverage socio-economic designations as we are trying to diversify our service offerings (deconstruction-green consulting-energy management services)

Diversify Your Team (Women)

A diverse team reacts faster, offers more solutions, and identifies with more customers

Quality Control

Performance Problems

Our biggest problem and best solution?

BIGGEST PROBEM

•Process ---Scaling to size…increasing/decreasing size when needed

BEST SOLUTION

•Use Efficiency First-Home Performance with Energy Star colleagues as partners…Ask them to sub-contract with you..someone is bound to be able to help when your need them

Energy Energy efficiency is a efficiency is a

no brainer.no brainer.

The Rearview Mirror

What am I still working on?

•A complete business plan with actionable benchmarks

What would I have done differently?

•Focus not only on the SERVICE, but the business side as well

•Business---Speed-Accuracy-Staffing-Marketing-Sales Planning

Questions

This webinar will be available to download within 48 hrs at:

http://www.efficiencyfirst.org/webinars/

Contact Information

Dan Thomsen dan@buildingdoctors.com

Facebook: thebuildingdoctors Twitter: @thebuildingdocs 323-646-(BLDG) 2534

Jeremy Begley jbegley@cincienergy.com

Facebook: Cincinnati Energy Solutions Twitter: @cincienergy 513-389-8192

Donna Sanders donna@106greenway.com

Twitter @106greenway 816-842-7546

Interested in Efficiency First Membership?

Become an Efficiency First member in the next 30 days and receive a full refund on any registration fees paid to Efficiency First for this webinar.

NOTE: Membership in Efficiency First is by company, and provides complimentary access to our webinar series for everyone in the office.

http://www.efficiencyfirst.org/join/

Leaders & Heavy Lifters Needed!

Efficiency First Committees & Task Groups

• Codes & Standards

• Manufacturers & Suppliers Council

• Multi-Family & Commercial

• Low-Income & Weatherization

• Contractor Qualifications & Standards

• Program Design & EM&V

• Sales & Marketing

• Education & Contractor Capacity Building

• Financing & Capital Markets Subcommittee

• State & Local Government Subcommittee

• Federal Regulatory Subcommittee

• Congressional Liaison Subcommittee

Interested? Contact: Jay Murdoch, jay.murdoch@EfficiencyFirst.org

THANK YOU TO OUR PANELISTS!

Dan Thomsen Jeremy Begley Donna Sanders