Business Model Canvas and Executive Summary

The following is an executive summary I prepared  after using the Business Model Canvas tool to evaluate my own company. I hope you find it interesting. 

Click here to view my Business Model Canvas on Google Docs

Executive Summary Bellows Plumbing, Heating, & Air

Current Status: Bellows Plumbing, Heating, & Air (Bellows) was incorporated in 2005 and is currently in operation in Santa Clara, Santa Cruz, and Monterey County. The company has recently negotiated several contracts with OSH and Costco to sell through various retail location and is looking to expand and grow over the several years.

Summary of Business: Bellows provides a variety of pluming, HVAC and drain repairs and installations. The current focus for growth and expansion is in their recently added HVAC department. The company currently installs, repairs, and services residential furnace, air conditioners, and filtration equipment. 

Customer: The company targets to sell to the 725,000 homes and their associated homeowners that occupy the Santa Clara, Santa Cruz, and Monterey County. Most of their customers are individual residential property owners however a portion of these homes are managed by property managers who Bellows also caters to. 

Value Proposition: Bellows local reputation has helped the company grow to be one of the largest HVAC providers in its region. The recent partnership with Costco and OSH to sell Lennox brand equipment and repairs through these retailors provides Bellows with an expanded list of customers to sell to that trust the brand association. Additionally with new equipment offerings and a strong sales force Bellows can help to reduce homeowner energy costs, improve efficiency, and reliability of HVAC equipment. 

Products: Bellows provides install of Lennox and Bryant brand HVAC and air filtration products. Additional products such as smart and remote thermostats are also installed. The company provides repair service on all makes and model HVAC equipment. Maintenance services include duct cleaning, carbon monoxide testing, and filter change outs. 

Market Advantage: The primary advantage for Bellows is size and partnerships. The highest margin work comes from residential install and repair which is highly competitive. Bellows has been able to hire on a large staff of installers and service techs due to various contracts with the local utility companies and public works. These contracts give the company the ability to retain employees through slow periods, but respond quickly and gain new business when times get busy. In addition propriety in house sales training and technology gives the company an advantage over most contractors.  

Concerns & Issues: Competition from unlicensed plumbers and HVAC contractors can be an issue. Unlicensed contractors offer cheaper prices that sometime win customer contracts. 

Revenue Streams: The current revenue streams are new HVAC installation offering margins between 60 and 35%, repair and service revenue with margins between 50% and 25%, and maintenance services offering margins between 40% and 0%.  

Channels: The primary target customer is a residential home owner. This customer can be reached through various channels. A strong network and referral network are the primary source of new business. Sales are also set though the internet, sales people, and various home shows and kiosk booths. 

Strategic Partners: Costco, Pacific Gas & Electric, OSH, various property managers

Competitors: Key competitors are large franchise companies such as One Hour Air, Service Experts, and Benjamin Franklin. 

Company Metrics

Full Time Employees: 24
Part Time Employees: 5
Customers: 10,000+
2012 Installed HVAC Units: 2,650

Revenues & Profits: Through its strategic partners and established reputation and network Bellows can drive sales to approximately $14 million in revenue with a projected profit of $3.5 million. These figures are based on a 750,000 home market with a modest .5% new install rate, 1% repair service rate, and 2% maintenance service rate.