lj investor presentation jan 2016.v2
TRANSCRIPT
LABORJUNCTIONcons t r uc t i on connec t i on
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The Story - How it all got started...
One day in the recent past, Labor Junction’s founder, Barry, was contacted directly by 20 of his “networked” trades people looking for work that day...
When he couldn’t get back to all of them quickly enough, he said,
“There has to be a better way!”
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The Reality - For Contractors Today
Labor Junction was born to provide a platform for all contractors to quickly connect with available jobs, from the independent contractor to the Service Provider with 20 or more employees. Many of the trades Service Providers want more business - both wholesale and retail - and often prefer working for contractors. Unfortunately, there is no current platform that connects these two groups effectively.
Right now, most hardware stores, trade stores and big box stores are still using some form of business card referral process. Labor Junction can do it better.
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The Reality - For Consumers Today
This page needs a bit more thinking...
Labor Junction was born from a need to connect contractors quickly to available jobs - we realized that while there are many ways for consumers to find a service provider:
• Is the service provider trustworthy? Licensed or Bonded?• Can I get free expert advice?• What if the service I use erases bad feedback on a contractor? How can I trust they will do a good job?• Can I keep track of the service done to my home, as well as get suggested updates for maintenence or seasonal tasks?• Can I schedule the services on-line? And be kept up-to-date with ETA’s?
Other Home Services can do some of these things.
Labor Junction can do them all. :)
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Market Need
Maintain a Historical Record of home maintenance and improvement, Alerts/Reminders for continued home maintenance
Dissatisfaction with current sites and review trustworthiness and accuracy 1Authentic and Focused Category Expertise in Home Improvement market2
Provide Scheduling Platform enabling projects to run more quickly and more efficiently3
Resourcing Needs for projects 4
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Provide a better Communication Platform between Service Providers and Service Providers to Customers5
Schedule Notification/Reminder eliminating missed appointments and wasted time waiting for appointment 6
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Multi-Market Solution & Technology Overview
HomeownerB2B
Simplify the management of the modern home.
Homes have never been more sophisticated: heating, cooling, “SMART” homes and
appliances, require specialized Service Providers.
By utilizing the project scheduler, our system will request confirmation and notify users if a
scheduled meeting is running late, reducing wasted time.
Exponential growth of things to manage: warranties, repairs, service contracts, scheduled
maintenance, upgrades, support, contact information, quotes, permits and receipts.
Service ProviderB2C
Enhancing customer service by improving communication and
efficiency while maximizing billable hours.
Greater competition for customers and the rising expectations of customers need for service.
Exponential growth in the options and sophistication of where to promote your
business and the consequences of a service “failure” far more public than
ever before (bad reviews).
Vendor / RetailerB2B App
Focused advertising based on customer projects and services.
Focused advertising based on filtered data, this will target
partners looking for additional website traffic.
Future direct Service Provider to Supplier purchasing
i.e. Home Depot, Lowes, Sherwin Williams, Valspar, Kohler, etc.
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U.S construction industry estimated $82B industry, with 5.8% growth year-over-year (2009-2014)
It is estimated that in the U.S. market, the construction industry spends $1.2B annually on advertising
10.3M construction workers servicing U.S. population of 320M which is growing at a rate of 5M per year
Currently 10M construction jobs in U.S.
Size of Opportunity - U.S.
10M
320M
$1.2B
$82B
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Size of Opportunity - Globally
Canada
$117 billion*
Europe
500 billion*
U.S.A
$567 billion *4% of gdp
•Canad-statcan.gc.ca, Europe-USP Marketing, Global-Arcadis Netherlands
Global Construction Market to Reach $15 Trillion by 2025.*
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Business Revenue
Category Relevant
Affiliates
$$
Direct and Indirect
Partner Advertising
$$$
2nd 3rd
Monthly Subscriptions for
Service Providers
$
1st
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Business Revenue - Service Providers
Free to Fee
Subscription Migration path to full features and benefits
membership of $ 19.99/month
A tiered approach will come on line in phase 2, perhaps a consumer with multiple needs-
monthly fee
Monthly Subscriptions for
Service ProvidersFee: $19.99/mo
Based on surveys of current users of Angie’s List, Home Advisors, Craig’s List and others, we believe that we cancapture 25% of their current market, with 50%
generating revenue.
= $48 Million/yr
We conservatively project that we can
achieve 200,000 monthly users within the first year.
$1st $48M
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Service Providers - Sustainable + Competitive Advantage
$1st
$48M
By offering a truly differentiated platform enhanced with category expert and effective tools, Labor Junction provides a better experience and frictionless, easy communication between the consumer and the service professional.
Labor Junction can attract a large portion of the current advertising market, as well as a large portion of the largely unhappy clientele from our competitors, with these features:
• Offering more features, for less money. $19.95/month, $240/year is less than the average cost of our competitors
• We believe that a large portion of the market has yet to engage in advertising and through our mobile application, we will attract a large number of “first time” advertisers (Service Providers)
• Our system offers a stagnant URL, allowing users to easily “link” their social media/website to us
• One button “update” allows users to change status/ update in one location thereby, saving time
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Service Providers - Sustainable + Competitive Advantage
JOB BOARD
We will attract a number of new Service Providers, creating an organic/referral growth.
The Job Board scheduler will help Service Providers and customers maintain contact/schedule.
The Job Board scheduler will encourage Service Providers to invite unregistered Service Providers to the site.
Finally, non-native English speaking communities are an untapped resource and through the use of tutrabajoweb.com and the mobile app along with regional recognition, this will become a valuable tool for ethnic communities who are well networked.
Service Providers - Sustainable + Competitive Advantage
$75M
$1st
$48M
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Business Revenue - Affiliates
$2nd $3.6M Category Relevant
Affiliates 100K users
If 500K users are shown a value proposition, we estimate we will
attract 20% to engage with LJ and connect to that particular retailer through a coupon or
a filter...
$30.00 spend
We keep 10% of the users average
$30.00 spend, each month is 300K/month
= $3.6 Million/yr
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Business Revenue - Partner Advertising
$3rd $$$$Direct and Indirect
Partner Advertising
Our partners will partner to share data so that we can drive traffic to the
brick and mortar stores
Based on select filters, our partners will vary from food to materials, including tools,
even real estate
= Limitless Millions
Through a multi-pronged filtering process, we can tailor ads to include an
infinite number of vendors.The revenue this will
create is incalculable.
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$3rd We will have the ability to drive revenues utilizing “geo marketing” to capture vendor revenue. For example, food vendors can be geographically and time generated to broadcast specials and coupons via link. By location: If the user has selected to be notified of “coupons or specials” the LJ system will automatically notify based on location. By time: Vendors appear at pre determined time, such as, 11:30am generates local Subway lunch special offer or coupon.
With our mobile application we can offer regional coupons.
Our Job Estimator, by job type, can generate special deals based on the job. i.e: Kitchen remodel where tile is required; a tile vendor is offering users a 10% off coupon.
Partner Advertising - Competitive Advantage
$$$$
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Competition
Founded 1995, Online presence since 1999
25% growth over last 4 years*$387M annual revenue
70% construction & growing
Charges $4/mo, $10/yr. consumer, $600 year for placed contractors
• source Marketwatch.com 25% is actually 600% growth in last 4 years
Founded in 1999, HomeAdvisor in 2012
30% growth in 2014*1
$205M annual sales in 2012*2
Charges $40/lead, sends 4 leads out
*1 Source aimgroup.com*2 Source denverpost.com
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Site Interface - Initial Concept UI + UX
The site will go live in March of 2016
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Strategic Marketing Plan
There are 3 key audiences by which to build loyalty and revenue. These audiences have different needs and wants. All of them will choose to join and remain active with Labor Junction for very different reasons. Therefore, we need to address each audience in it’s own way.
attract: this first step is creating awareness of the service and the particular features that would intrest or fulfill a need that audience has
engage: once you have the audience’s interest, you show them how the features will benefit them, solve a problem they have and ease friction in attaining that solution. They may or may not yet join Labor Junction, but getting them to do so is now a real consideration
connect: this step is where the audience take steps to join Labor Junction. When they do join, this step of connecting is one of continual maintenence by continuing to add features and value to their participation
attractengageconnect
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Strategic Messaging - Homeowner
Think of it as Carfax for your house (or like Facebook or Linked in for your house). It’s home management made easier and more complete than whats available currently, built with features that truly benefit a homeowner, offer a savings in time and money and ultimately can increase the home’s value. Who else can say all that?
featuresseamless + intuitive 360 communication platform + project helper
sourcing professional help + advice • ability to find help for free • obtain bids online to approved Service Providers i.e. take photo of bedroom, send it out for bids • scheduling appointments and managing the work through the site • self populated with new developer
chronological history of all home related work i.e. repairs, improvements etc. by service providers and homeowner (upload work performed by self) along with: • appliance model/warranty information • storage of insurance, mortgage information for comparable local data • store photos of desired upgrades and repairs or insurance in case of fire or flood loss • track expenses and costs to reduce offset capital gains taxes • duplicate all of the above if you have multiple homes or rental units
alerts + reminders • routine maintenance of appliances (fridge water filter), lawn and garden machines water softener, smoke detector batteries, Lint trap, furnace filter, Roof inspection, shingles, pointing •system prompts to remind homeowners of what is not uploaded •managed aged parents house from anywhere
use as a sales tool when selling your property • all of the functions are switchable on/off so the home owner can utilize what they like site • all ads can “hide” contact information if they so choose
benefits • enhance experience of management of your smart home
• eliminate anxiety of management of your smart home
• 1st in line for expert help/suggestions
• serve pro Insurance has mobile adjuster
• property management literacy/ understanding
• ease and comfort of managing parents, or second home, vacation property
• increase sale price of house, easier to sell
• insurance savings
• reduce overall cost of home ownership
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Strategic Media - Homeowner
mediawe will attract homeowners with a variety of media, telling various messages as best suits the media.ongoing added features and benefits will dictate where and when we reach out to exisitng customers or attract niche market customers.
social media • we will make appearances on partner sites and social media • we will continually create value added dialogue, tips, stategies as well as feature new site additions testimonials and word-of-mouth • we will offer discounts and benefits to existing customers to share with friends and family advertising + marketing • in key markets, we will consider traditional print and outdoor to create awareness • utilize search engine optimization • deploy an inbound marketing strategy with new and exisitng customers • attend home improvement conventions, entice subscriptions with discounts and member benefits
public relations • we will release stories to the press, on our launch, and as the site gains in subscriptions and features/benefits • we will appear via radio and press conversations by being listed as experts in the catgory via the Asssociated Press
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Strategic Messaging - Contractor + Service Provider
If LJ is like CarFax for your house for the consumer, then LJ is like a virtual business operations manager for the service provider. LJ will help service providers become a better provider, better efficiency, more profit, and appearance of a bigger company for the little guy, by enhancing customer service and maximizing billable hours. Greater competition for customers and the rising expectations of customers need for service. Exponential growth in the options and sophistication of where to promote your business and the consequences of a service “failure” far more public than ever before (bad reviews).
featuresseamless + intuitive + mobile 360 communication platform for better business planning and customer service.
• improve communication/efficiency between service providers, spa’s and homeowners
• access a database for selections/punch list information
• receive notification if a scheduled s.p.a. is not going to make schedule
• confirm appointments for service providers and homeowners
• maximize ROI on marketing and advertising spend by utilizing social media i.e. allow for a one button “update” to all social media accounts
•reach out to all clients with the push of a button for sales e.g. “offering spring special”
•allow sp to be found by only service providers or homeowners or both (some service providers won’t work directly for homeowners)
• enhance the frequency and accuracy of client communication
• bid from the site, reducing wasted bidding time and increasing efficiency
benefits • enhance experience of management of your smart home
• eliminate anxiety of management of your smart home
• 1st in line for expert help/suggestions
• serve pro Insurance has mobile adjuster
• property management literacy/ understanding
• ease and comfort of managing parents, or second home, vacation property
• increase sale price of house, easier to sell
• insurance savings
• reduce overall cost of home ownership
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Strategic Media - Contractor + Service Provider
mediawe will attract contractors and service providers with a variety of media, speaking to ongoing added features and benefits, the constancy and depth of message will dictate where and when we reach out to existing service providers or new service providers.
social media • we will make appearances on partner sites and social media • we will continually create value added dialogue concerning customer acquistion via the website, customer service tips, etc testimonials and word-of-mouth • intially we will depend a great deal upon industry connections for awereness and subscritions. we will offer discounts and benefits to industry connections who sign up their colleagues advertising + marketing • in key markets, we will consider traditional print and outdoor to create awareness • attend industry conventions, entice subscriptions with discounts, premeire member benefits
public relations • we will release stories to the press, on our launch, and as the site gains in subscriptions and features/benefits • we will appear via radio and press conversations by being listed as experts in the catgory via the Asssociated Press
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Strategic Marketing to Affliates and Retail Partners
features + benefits + mediaour appraoch to this market is very different than our other target markets, our business strategy for this market differs in scope and business need.
pitch kits + presentations + sales • we will create pitch kits that contain the features and benefits of the LJ brand and how it is a benefit to home owners and to service providers • subscription levels, number of current subscribers and projections for customers to be acquired will be important to retailers and other businesses wanting to advertise on our site • we will continually update our pitch kit as business grows to create more alliances with big and small retailers
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Financial Goal
The Labor Junction platform will help Homeowners easily manage the complexity of home maintanence and improvement.
The Labor Junction platform will help Service Providers become better at what they do, facilitate their ability to become major players in their industry and ensure faster and easier customer service and communication.
Launch: March 2016
AchieveExit Value
2018Exit Value:
100 X’s start up investment=
$200,000,000.00
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Investor - Frequently Asked Questions.
How will you make the audience aware?
Attract. Engage. Connect. Each audience: home owner, retailer, contractor, will have their own message and media that best suits them.Attract. Engage. Connect. In this order. Is the new marketing strategy standard that seeks to find new customers, interest them enough to make an impression, resulting in a meaningful interaction with the brand.
When do you go live?
We go live in March 2016.
How much money do I have to invest?
Minimum investment is $20K.
What is my risk?
Like ANY investment in a startup, there is no guarantee that you will make money or that you will get your money back.
What do I get and when will I get it?
Continual updates and communication of our progress.We have projections for revenue and timing. Upon reaching these goals, there is an opportunity for a payout. This payout is contingent upon the amount intially invested and the type of shares purchased.
How will it make money?
Through the 3 audiences we have identified: Homeowner, Retailer and Contractor.There are a series of revenue strategies and they are fundmentally differnt by audience. There is a subscription model, a percentage of retail partner offers to be collected and advertsing space to be sold to category relevant businesses.
How much will it make?
Revenue projections will vary by audience, however, we have authorized $2 million shares to be sold at $1.00. First round goal is $500k. This growth strategy projects a valuation of $200 million.
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Barry RohwederFounder
•Steve Meyer
Chief Technology Officer•
Graham RileyChief Operations Officer
•Heather Thornswood
Chief Marketing + Experience Officer
Executive Team + Advisory Board
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Funding Requirements
$2 MillionWe are seeking $2M in investment, in exchange for class “A and B” shares
of the corporation.
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RESUME APPENDIX
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BARRY ROHWEDERFOUNDER
HALLSON CONSTRUCTION, LLC, Minneapolis, MNDesign and Estimating of Construction
PURLIEUS PROPERTIES, INC., Minneapolis, MNConstruction & Coordination In Home Rehabbing & Flipping Business
ADVANCED RESTORATION SERVICE, Minneapolis, MNPresident
SELF-EMPLOYED SUB-CONTRACTORJob Sales of $2.5 Million
Appendix - Resumes
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STEPHEN MEYER CTO
Results-driven business, operations, and technology consultant with demonstrated ability to collaborate and build internal and external relationships; plan, coordinate and execute projects; solve problems; improve processes; develop business plans and budgets; manage operational and business risks; control costs; lead/mentor teams; and communicate effectively at multiple levels. Experience leading administration, operations, and technology functions and projects supporting firms’ strategic business objectives.
INDEPENDENT CONSULTANTProgram Leader for Midwest Broker-Dealer
DST TASS, Minneapolis, MNDirector of Technology
US BANKCORP ASSET MANAGEMENT, Minneapolis, MNSenior Systems ArchitectVP, Technology Manager
Appendix - Resumes
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GRAHAM K RILEY COO
Senior level business leader with exemplary track record in leading Professional Services Organizations and geographically-dispersed business development teams supporting National and International Accounts. Excels in strategic business development, C-suite negotiations, executive level sales, strategy,contract management, P&L management, turnaround situations and multi-office branch management. Highly-respected international public speaker & conference presenter on topics related to the application of technology and the improvement of business processes for driving significant cost-savings and revenue growth. Known for creating programs to obtain the best possible business development and operational improvement opportunities. Positions strategies and tactics with customers, employees and business partners to ensure profitable revenue growth.
SOCIAL BUSINESS STRATEGIES & CTBUSA LLC, Minneapolis MNSVP, Sales & Marketing
IRON MOUNTAIN, Minneapolis, MNDirector, Client Relations
AQUENT, Minneapolis MNArea Vice President/Managing Director
COMPUWARE (Professional Services), Minneapolis MNManaging Director
Appendix - Resumes
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HEATHER THORNSWOOD CMO
Chief Creative Officer | Omni-Experience Retail | Integrated Creative Customer Experience Innovation | Flawless Execution
VIBRANT LABS, Los Angeles + New YorkExecutive Creative Director
LANE BRYANT, Columbus, OhioVP Creative Director, Integrated Marketing and Brand Presentation
RADIANT RETAIL BRANDING, New York, NY / Columbus, OH President /Managing Partner /Executive Creative Director EXPRESS, Columbus, OH VP Creative Director
TARGET / MARSHALL FIELD’S / MACY’S, Minneapolis, MNExecutive Group Creative Director
AVEDA/ESTEE LAUDER, Minneapolis, MN / New York, NYCreative Director/Art Director
RAPP COLLINS WORLD WIDE, Minneapolis, MN / New York, NYCreative Director/Art Director
MCCANN ERICKSON WORLDWIDE, Atlanta, GACreative Director/Art Director
Appendix - Resumes