Venture Concept No. 1

Opportunity

I originally encountered this opportunity when looking through local news articles and finding out that people have trouble deciding whether to replace or repair their broken appliances. I realized that whenever I would find myself with a broken item, too much time was spent looking for someone who could help, then having them come to take a look at it, and then waiting a couple more days for them to get the materials to fix it. It also reminded me that with the current pandemic going around, people would benefit from a virtual type of repair that would eliminate some of the frustrating steps. I began to do research by interviewing people until I found the best group to target to. I found that my stereotypical customer would fit this demographical description: homeowners in their 30s who find themselves lost when deciding between repairing or replacing a broken appliance. I could even extend it and say a homeowner who wants a quick and reliable solution to deal with a broken appliance. Customers are currently satisfying this need by either asking a friend, googling for tutorial videos/how-to sites, or calling a handyman nearby. I believe that there isn’t too much loyalty associated with these solutions. This is a 5-billion-dollar industry (IBIS World), with approximately 40% of appliances breaking within their first 5 years of life. I would say it is a huge opportunity. The opportunity window is a lot bigger now due to COVID-19, but it will remain an opportunity regardless of what occurs on that front.

Innovation

The solution I have come up with is an app that aids in the process of repairing/replacing broken home appliances. This would include virtual visits as well as in-app technology that will allow users to send a picture to specialists and receive a prompt response on what needs to be done. If the repair can be done easily, then users will be given access to a tutorial video on how to fix their broken appliance. If the verdict is that it needs to be replaced, the best deals will be presented, and you will be able to order directly from the app. If it can be repaired, but needs special tools, users will be able to schedule visits by hand-selected professionals. With COVID-19, a special tool renting service will be provided where if the person does not want anyone in their house, the app will ship them what they need so they can do the repair themselves. Additionally, all repairs and replacements will be matched with current market prices so that customers know they are getting the best deals possible. The app will be free to download with a small 2% fee being charged for every transaction that takes place (repair or replacement). The payment structure will be similar to apps like Uber or Lyft, meaning handymen will be paid and contracted all through the app. This means that we will be a middle man that connect buyers and sellers together all in one market place.

Venture Concept

This app will put an end to the time-consuming process that is involved when dealing with a broken appliance. Customers will no longer have to contemplate between repairing or replacing an item, nor trying to figure out the quickest and most reliable way to fix the issue. Additionally, we will tailor to clients who do not want anyone in their homes due to COVID-19 or other reasons, by giving them access to a tool renting service as well as videos that guide them on how to fix the issue without the need of a physical repairman there. Moreover, this app will give customers quick responses that will take away the extra step of the handyman coming in to check out the problem just to have to leave again and come another time. This app will save its users a lot of time and money (its free to download), so I don’t think it will be hard to get people to switch from the other alternatives. That being said, I identified a few similar apps that offer a database of handymen available to help with a variety of home repairs. I noticed that it was positioned in a way that tailored more to construction rather than specifically appliances. I believe that all the features I provide, as well as the type of person I market to, will make it stand out from competitors and bring new customers to the mix. The app itself will have very strict guidelines and requirements for repairmen, ensuring that we get the best and most experienced people. Customer service will also be exceptional, with people on call 24/7, always ready to help. At the beginning we will need at least one employee in each of these categories: App Development, Marketing and Sales, Customer-Service, Finance, and Human Resources. As the business grows, more hiring will be done to handle the demands. The handymen will not be employees but independent contractors.

Secret Sauce

I believe that my most important resource is my experience starting a business before. This is something that will save me a lot of time and money because I am more knowledgeable of how business really works. It will prevent a lot of trial and error that usually breaks businesses and people.

What’s Next?

I will continue to develop and improve upon the original idea, tweaking as I see fit. Budgeting will play a huge role in what happens next. This idea will be more of a side hustle as I continue to study for my degree. I have a huge passion for Finance, so I will most likely pursue that as my main job. That being said, I could see myself growing this into a million-dollar business that I will later sell to an interested buyer.

Citations

Consumer Reports. “How Long Will Your Appliances Last?” Consumer Reports, www.consumerreports.org/appliances/how-long-will-your-appliances-last/.

“Industry Market Research, Reports, and Statistics.” IBISWorld, www.ibisworld.com/united-states/market-research-reports/appliance-repair-industry/.

Jameson, Marni. “MARNI JAMESON: Experts Answer Age-Old Question: Repair or Replace Broken Home Appliances?” The Palm Beach Post, The Palm Beach Post, 22 May 2020, www.palmbeachpost.com/news/20200522/marni-jameson-experts-answer-age-old-question-repair-or-replace-broken-home-appliances.