The purpose of this report is to summarise the development of the preferred business model identified for Build4Life by reporting of the key activities of the customer discovery phase of Build4Life.
The proposed business model is for Build4Life to act as a platform to connect renovators with service and product suppliers with an overarching mission to help deliverable sustainable renovations across Australia.
This would be achieved through the provision of an online resource that provides quality content, a connected community, and peer to peer support via local Build4Life facilitators for everyone interested in renovating their home to achieve a safe, healthy, and economical home. The local Build4Life facilitators would convene local networks of people who are planning and undertaking their own renovations and connect them with local trades, Build4Life online resources, and advice to achieve sustainability outcomes. Commissions would be paid by local trades and suppliers for referrals with a percentage to be paid to the local Build4Life facilitators.
The analysis indicates that the value of the home renovation market is estimated to be $33Billion in 2017 with a strong forward pipeline of renovation activity for the next 10 years due to historical new home building patterns resulting in homes in the key renovation 30-40 year age range growing by 14%.
The unique selling proposition of the proposed business model is the local Build4Life facilitator who convenes a local renovators club to share knowledge referrals and create social connections for its members with others in their local area. The analysis identifies that this approach differentiates Build4Life from core competitors and establishes this offering as unique in the market.
Key customer segment are identified for the proposed business model. For the renovators customer segment the analysis identifies two core market segments. Couples with children between 35 and 54 years of age and coupe without children in the same age category who collectively represent 77% of the market.
For the trades customer segment the analysis has identified small companies with less than 5 employees represent 77% of the suppliers.
A competitor analysis is undertaken and identifies that established online content brands such as Houzz and HGTV dominate the online content and advertising space highlighting the risk of a content only business model. However, Build4Lifes unique selling proposition of having local Build4Life facilitator convening and establishing local social networks puts this business model in a high potential sector with low competition.
The report then addresses the validation of the proposed business model through the establishment of a Renovators Club pilot group in the Newcastle area NSW.
At the point of writing this report the Build4Life project was progressing with the build of the online platform after establishing an increased level of confidence that the proposed business model fits a true market need.