Venture Concept No. 2

My previous post regarding my "Venture Concept", received the following suggestions:

1. Charges for Venture should reflect payment options for the classes that my target customer base must attend.
2. Emphasis on the point that we actually help customers repair their credit and are actually assisting in completing the necessary documentation.
3. Build a network of individuals that are going through or have gone through the program with expertise in DIY projects such as replacing a faucet or garbage disposal, how to clean the dryer vent to keep costs low and extend life of dryer.The goal is to continuously educate about cost saving measures each family can take. It would also be useful to help these individuals with the expertise to build a client base of their own at a discounted rate because their familiarity of the program. 

This is the concept with the suggested changes.

My concept includes the unmet housing need for the lower income and middle income working family. The ideal customer is that customer who does not see owning a home as a reality and struggles to find a home that fits their family within their budgeted needs. These families barely make it from paycheck to paycheck, but continuously work because they were brought up to believe that their hard work will eventually pay off.

The Great Recession brought to light the problem that this country faced which was that families were qualified for homes they could not afford. In fact, housing prices were well above what they actually should have reflected.  The bubble burst and either one or more working individuals within the household experienced job loss due to the trickle effect of the housing market blowing up.

According to the Pew Research Center and their analysis of government data available in order to be considered middle income class in the state of Florida, your median income needs to be at least $46,036 and lower income is from $30,691 to $92,072. The unfortunate result of this research is that it does not take into account the living expenses needed to, well, live. There is the cost of utility, food, clothing, and taxes to name a few.

These working families are living with families, finding homes further from their jobs because they cannot afford the housing in the county in which they work.

Some get subsidized housing assistance and believe this is their only option. As news articles report, many of these subsidized housing options are below standards for anyone’s life.

As long as there are income disparities, there will be an opportunity for this business to be successful. These working families raise their children to do better than their parents are doing. These families struggle in the hopes their children will not. This business concept will actually reward these hard working families with a home and A.P.R they can afford for a real home.

The innovative thinking behind this concept is that my business will be service offering that has required courses in the home buying opportunity. Our classes will be offered at differing times to fit the lifestyle of the working family. There must be full participation of the family so there is a clear understanding of what is required of each member of the household to ensure successful long term ownership. We offer payment plan options for our families because we understand they are on a limited budget and we do not want to interfere with their opportunity to “live”. In fact, we have worked out agreements with our partner lenders where they contribute to the payment of the classes. This is a win-win situation for all parties.

We will have individuals in the organization familiar with credit reporting and the steps needed to correct or remove negative reporting. We will walk the family through this tedious process and ensure they are not just left with a “to do” list, but the assistance in writing necessary statements or making necessary payments to improve their overall credit score. We are here to help repair credit with a personal touch, not a list of things to do. We believe time is of the essence and because our customers are limited on time, we are here to take up that slack.

We will work with other programs such as Head Start to Home Ownership that offer financial assistance as well as Federal Housing Administration that will guarantee a portion of the home loan. This is a lot of work and time that goes into completing forms and requirements. A lot of time a two income family (or one income) does not have. We will be that helping hand. We will require the participation as far as the classes offered, but as far as the forms needing to be completed, we will assist in completing the forms and ensuring the checklist of items that we are very much familiar with required for our customer base to meet and qualify are met in its entirety. Time is money and in most businesses, they would not want to spend much time. In my business Trans-It-Home, time is how we ensure we make money. We give the time for each of our clients and get them to understand yes it is time consuming, but the cost of owning a home should be known in advance of making such a purchase, so time is needed to gain a complete understanding of this undertaking.

Structure of the business will have to include individuals with customer service experience as well as a financial background of some sort. Not necessarily a degree, but experience in the banking industry, or mortgage industry will be preferred. Individuals well versed and articulate in verbal and writing communication. The staff has to be patient and celebrates the successes of each of their working families when the key is handed over for their home. Here is an example of one of our top employees available to care for each client's need.

The one element that will be my venture’s “unfair advantage” will be my ability to always look outside the box, step back and look for opportunity to overcome and obstacle. I have the mindset that everyone has value and this mindset will part of our company mission statement. There is no judging of any individual families that walk through our doors. If they can show they have a working history and steady income from those singular or multiple jobs, then we can assist those families in qualifying and getting a home. Our business model will be “Trans-It-Home is working for those working for their families well-being”. There are a lot of steps involved in owning a home and this business will already know those steps and I will have a creative staff that will find ways in effectively completing these steps in the most cost-effective manner.

The next venture will be owning an apartment complex that accepts housing subsidies.  The families renting these apartments will have to go through our program and are still uneasy about moving to the next level and want the option to really test their knowledge in “real” life scenarios. This is a community of like-minded individuals lifting each other up and sharing their best practices with each other. Every success is celebrated, but the terms of the lease will not exceed two years. If our family is qualified and buys a home, there is no penalty for getting out of the lease early. We just want to ensure they are ready for the next step. It will be an opportunity for our families to save money for Energy Star appliances and other items necessary to keep their home in order such as a lawn mower if applicable. We will assist them in getting the best deals for the top of the line appliances they desire.

Our organization believes in the adage “it takes a village”, therefore, within our apartment community, we want to build a network of individuals that are going through or have gone through the program with expertise in DIY (do it yourself) projects that homeowners can find beneficial and useful. This can include how to change a faucet, to properly cleaning dryer vents to elongate the life of their appliances and save on energy. Not only can the network benefit each other this way, but it can assist our experts in building a client base of their own offering a discounted rate because of their familiarity of the Trans-It-Home Program.

It would be my hope this business will grow from state to state. I have not decided the best offering of expanding this offering, but I believe it can be a service that would be easily attainable. I would like to think this venture will help us get families off the street and into a home they cherish and are proud to call their own. The lower and middle income families work hard but also find it hard to see any option to invest. I believe owning a home will open their eyes to the possibility of investing in their own and their family’s future.