... Thoughts from Industry Leaders
Today's featured advice comes from the hearts of Industry Leaders Josh Collins and John Sears. Learn how two entrepreneurs created a $3.5 Million Business. It didn't happen overnight but instead it happened with much perseverance and patience mixed with hard work. Collins and Sears share 3 Simple Strategies they followed that brought them proven success.
Josh Collins, President & Owner of PresPro
John Sears, CEO & Owner of PresPro
How Did Two Entrepreneurs Create a $3.5 Million Dollar Business? It all started with 3 simple strategies behind two brilliant men. With over 15 years of experience in Real Estate, Josh Collins and John Sears used their knowledge to innovate new strategies in the foreclosure business. In order to maximize resale value, they knew that banks needed to renovate most foreclosed properties they acquired as well as neither the banks nor the real-estate agents understood much about construction or renovations. In 2009, they decided to bridge the gap and create a company called PresPro.com. PresPro is a construction company that is not only recognized as a renovation specialist and a premier custom home builder but also a contracting company that handles foreclosure projects for banks and other investors.
So, just how did PresPro become nationwide from the start? How did PresPro increase sales from $167,623 in 2010 to $3.5 million in 2013? It started with these three simple strategies:
1. Go Big From Day One:
The vision was to launch nationwide from the start. Just like any start-up company, to be successful and profitable, they would need volume and lots of it. "We wanted to work for the guy with 10,000 properties," says Collins. Thus the websearching began for contractors and the endless calls for property agents and insurance brokers for referrals. The pitch that sold PresPro: "Those who become preferred contractors could get jobs without the cost and hassle of advertising and billing." This resulted in 4,400 vendors throughout the country.
2. Be Methodical:
Collins and Sears knew that quality control was important for continued success. They invested their own money and time into providing online training for contractors and educated vendors on why they should agree to fixed prices. Collins created an algorithm which internally rates contractors based on their performance so that only the best contractors are chosen for future jobs as well as an online project-management system to track job status to completion. "The key was persuading people that this business model worked," says Collins.
3. Test-Drive Your Strategy:
As eager and ambitious as Collins and Sears were, they knew they had to test-drive their strategy first. PMH Financial, a Denver asset-management company, agreed to a three-month pilot program. "...2010 proved PresPro could do projects in disparate locations, in half the time that local companies took, and for 30 to 40 percent less money. That's thanks to its fixed-rate schedule and automated software for getting estimates, tracking jobs, and invoices. That test gave us credibility," says Collins.
Read Full Article by Jennifer Alsever: How Two Entrepreneurs Turned Foreclosure Flipping into a $3.5 Million Business