Venture concept
The Opportunity:
Construction is a huge industry in America today, and its only growing. With this growth comes stress on the market for specialized services, these companies that offer the specialized services needed for construction are all over booked and focus mostly on large projects with their pre existing customers. Those smaller projects, or new customers are pretty much out of luck when it comes to finding these specialized services. the service that i am focusing on is the site development sector. site development is what must happen to a new construction site before it is ever even considered a construction site. a crew comes in and clears the land, levels the land, puts in access roads, parking areas, etc. Many of the companies that offer these services are so booked that they dont even have the option of taking on new projects. Even if these companies had openings they would focus mostly on large and easy projects that make them the most money as fast as possible, leaving small projects or more intricate projects high and dry. This creates a huge need for a company that will focus mostly on small to medium sized projects and the projects that are too difficult for large companies to attempt. The customers that have this need are smaller construction firms as well as land owners. neither of these groups have connections or work history with these larger companies or have since cut ties with these companies. this need will almost always exist among this market of customers as long as the construction industry stays busy. These customers that have been identified tend to be very loyal to the business ties that they create, as long as the company continues to provide a quality service.
The Innovation:
The innovation that i have come up with to fulfill this need presented in the last section is a fairly simple innovation, a company that provides quality site development services to those small to medium projects as well as the more complex and custom jobs. Another innovative concept of this company is that we will deal directly with landowners if they wish to have land cleared for personal use such as recreation, farming, livestock, etc. The company will, being small, will be able to provide high quality customer service and a family owned business vibe. This company will be rather small in size allowing the company to keep low overhead costs which in turn allow us to provide our service at prices that are below those of our competitors. Our pricing will vary greatly based upon the size and complexity of the project but it will almost always be cheaper than the large competitors.
The Venture Concept:
I think that the customers will be happy to use our service because they currently have very few other options when it comes to having their small to medium sized sites developed. also because of the family owned atmosphere and customer satisfaction based service, the customers will feel that they are more than just another project for us and that will form quality business connections and hopefully repeat customers as well as recommendations to their friends. Our price point may also be a large factor in what sets us apart from our competition, having a lower price for a higher quality service will definitely be a big draw for the customers. Currently I would need only 5 employees, enough to make up one crew, but hopefully in the future we could grow to have multiple crews working multiple job sites while still providing the quality service expected from us. Also down the road i hope to enter the erosion control division of construction which are the crews who put in the silt fence and other things that help to contain the construction site. This is another largely under-served sector of the construction industry. Once this venture takes off and is successful enough to almost run itself i plan to purchase large pieces of land and provide high quality hunting and fishing guide services with top notch lodges to sportsman across America. The site development venture will help to fund this guide service venture because buying land and building lodges can be extremely expensive.
Construction is a huge industry in America today, and its only growing. With this growth comes stress on the market for specialized services, these companies that offer the specialized services needed for construction are all over booked and focus mostly on large projects with their pre existing customers. Those smaller projects, or new customers are pretty much out of luck when it comes to finding these specialized services. the service that i am focusing on is the site development sector. site development is what must happen to a new construction site before it is ever even considered a construction site. a crew comes in and clears the land, levels the land, puts in access roads, parking areas, etc. Many of the companies that offer these services are so booked that they dont even have the option of taking on new projects. Even if these companies had openings they would focus mostly on large and easy projects that make them the most money as fast as possible, leaving small projects or more intricate projects high and dry. This creates a huge need for a company that will focus mostly on small to medium sized projects and the projects that are too difficult for large companies to attempt. The customers that have this need are smaller construction firms as well as land owners. neither of these groups have connections or work history with these larger companies or have since cut ties with these companies. this need will almost always exist among this market of customers as long as the construction industry stays busy. These customers that have been identified tend to be very loyal to the business ties that they create, as long as the company continues to provide a quality service.
The Innovation:
The innovation that i have come up with to fulfill this need presented in the last section is a fairly simple innovation, a company that provides quality site development services to those small to medium projects as well as the more complex and custom jobs. Another innovative concept of this company is that we will deal directly with landowners if they wish to have land cleared for personal use such as recreation, farming, livestock, etc. The company will, being small, will be able to provide high quality customer service and a family owned business vibe. This company will be rather small in size allowing the company to keep low overhead costs which in turn allow us to provide our service at prices that are below those of our competitors. Our pricing will vary greatly based upon the size and complexity of the project but it will almost always be cheaper than the large competitors.
The Venture Concept:
I think that the customers will be happy to use our service because they currently have very few other options when it comes to having their small to medium sized sites developed. also because of the family owned atmosphere and customer satisfaction based service, the customers will feel that they are more than just another project for us and that will form quality business connections and hopefully repeat customers as well as recommendations to their friends. Our price point may also be a large factor in what sets us apart from our competition, having a lower price for a higher quality service will definitely be a big draw for the customers. Currently I would need only 5 employees, enough to make up one crew, but hopefully in the future we could grow to have multiple crews working multiple job sites while still providing the quality service expected from us. Also down the road i hope to enter the erosion control division of construction which are the crews who put in the silt fence and other things that help to contain the construction site. This is another largely under-served sector of the construction industry. Once this venture takes off and is successful enough to almost run itself i plan to purchase large pieces of land and provide high quality hunting and fishing guide services with top notch lodges to sportsman across America. The site development venture will help to fund this guide service venture because buying land and building lodges can be extremely expensive.
Hi Andrew,
ReplyDeleteThank you for writing in depth about your venture. I believe that you are very aware of your market and have a clear vision of how you want to fulfill their needs. I strongly agree with you about how customer satisfaction is tied in with the form quality of the business connections. As entrepreneurs and 'underdogs' of the industry, this is a strength because we are able to make more intimate and stronger ties with our customers. Similar to you, I also hope that my venture can be successful to the point where it can run itself! Great post!