EXECUTIVE SUMMARY

www.bidhub was created to make home builders, home improvement companies, and subcontracting companies more efficient, more productive, and more profitable.

 

 

·         Construction material prices are going up very quickly and builders cannot keep up. Small builders especially do not have the personnel or money to have someone help them find the best prices on these products.

·         The vast majority of home builders, home improvement companies, and subcontractors that perform the work, still operate like they did 50 years ago. It is very inefficient and time-consuming. Smaller builders and home improvement companies do not have the time or money to afford a purchasing manager position. They spend the vast majority of their time supervising or working at their job sites.  

·         Small subcontracting companies rarely have the expertise or personnel that have the time or ability to find projects, do the necessary take-offs, and then quote projects. It makes it very difficult for these companies to find more business and grow. In addition, access to capital is limited for smaller subcontractors.

·         Our target audience is all companies associated with the home building and home improvement industry, well over one million-plus companies, with a strong emphasis on finding and helping small and minority-owned businesses.

·         There are companies like Angie’s List and HomeAdvisor that focus on the home improvement industry, but they are very expensive and hard to afford for most smaller contractors. There are also companies that focus on commercial building, but there is no website that focuses on the residential home building market.  

 

Option 1-Builders

·         Our website allows anyone or any company needing to get pricing for any building or home improvement project to post their jobs on our site and get quotes from multiple subcontractors. Posting a job and specs takes less than 15 minutes. All for free!

·         Subcontractors will get an email when jobs become available to bid in their area. They can download plans and specs and then upload proposals to our website for builders to review. Very simple process.

 

Option 2-Builders

·         BidHub personnel will reach out to builders to find projects ready to start building within 90 days.

·         Any projects not ready to start within a 90-day period will be charged a $495 fee to provide our services. If a builder starts one of these projects and spends $10K with one of our subcontractors, the $495 fee will be refunded.

·         Our personnel will reach out to pre-selected contractors and suppliers to provide quotes on these projects

·         All subcontractor quotes are uploaded on our site for the builder to review

·         Builder will earn a 1% commission on all trades and supplies purchased from companies referred by BidHub. The builder simply uploads a copy of a paid invoice and BidHub will send a rebate check within 30 days.

·         No cost to Builders with shovel-ready projects! In addition, they get competitive quotes and can also earn rebates all for free!

·         We make it simple for our customers. We find the work, we find the subcontractors, and we bring them all to one site. Done on their own, this is a costly, time-consuming process.

 

 

Option 1-Subcontractors

•             Subcontractors pay a flat monthly fee of $99.95 per month to find jobs in our project room.  

•             Subcontractors will get an email when jobs become available to bid in their area and can download plans and specs and then upload proposals to our website for builders to review. Very simple process.

 

Option 2-Subcontractors

•             BidHub personnel will reach out to builders to find projects ready to start building within 90 days.

•             Subcontractors will be notified of a project to bid on. If interested, BidHub will email the plans and specs to the subcontractor.  

•             Subcontractor pays nothing for the initial lead. If the subcontractor is awarded the job, they will pay BidHub a 5% commission fee upon receiving payment from the builder.

•             All subcontractor quotes are uploaded on our site for the builder to review

•             Subcontractors paying a $99.95 monthly fee will always be offered the opportunity to quote new projects before non-paying subcontractors. 

•             This is a very efficient way for subcontractors to find more work with no upfront costs. They only pay when they have been awarded and paid for a project brought to them by BidHub.

 

 

 

In addition to our bidding platform, we have also created a directory of construction professionals. We will offer a free listing to any builder, home improvement contractor, subcontractor, or related business that agrees to receive emails from our site. All builders that post projects on a regular basis will receive a free color ad that rises to the top in their category in our directory. All subcontractors that pay for our Project Room will also get a free color ad for their particular trade or trades. We will also sell ads to those companies not wishing to use our project room, but wanting more exposure to their potential customers, such as manufacturers, material suppliers, insurance companies, banks, etc. In addition, we have created a section for our customers to post and sell their excess materials and equipment. Customers can post for free and pay an 8% commission when sold.

 

 

 

·         Initially, we need to build content for our potential customers. Post as many projects on the site as possible.

·         After building content, we will reach out through various methods including home builder associations, social media, and targeted phone calls and emailing campaigns to bring subcontractors on board.

·         We need a financial investment of approximately $750,000. An investment of that amount will allow us to grow at the pace to become profitable and be able to gain a foothold as the website of choice for our customers.

 

We have spent approximately $300,000 to date developing our current site. This includes multiple trials and errors as we have strived to get our site to work as we envisioned. We now have a working site ready to start taking more customers.

 

·         Based on our current projections, our goal is to sign up at least 2000 paying customers by month 12 and 3000 by month 16. Our goal by year three will be to have 10,000 plus paying customers. This still represents less than 1% of eligible customers. 

·         Positive income stream sometime between months 12 and 16. 

·         We would like to offer 30% equity for a $750,000 investment.

·         The opportunity for profitability grows exponentially as we bring on new customers. Potential investors will have an opportunity to share in the profits or benefit from a sale of the company. 

 

Contact Info

 

·       Bob Burgess  [email protected]

·       Cell 240-417-2783