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By Meg Flippin, Benzinga
Contractors play an important role in construction, but when it comes to scaling, many struggle to do more than $2 million in annual sales. A lack of technology is a big reason. Providing estimates, managing customers and handling billing manually can be time-consuming and cumbersome. High pricing is another problem. Finding good workers amid a shortage and solid leads can prove difficult and expensive. Furthermore, network-level collaboration has been largely absent in the contractor space so far.
Such factors can put contractors in the U.S. at a disadvantage, seeing the growing demand for their services. The construction market is big and growing, requiring contractors to get the work done. As of 2023, the global construction market size was $13.57 trillion. By 2032, it’s projected to reach $23.92 trillion, growing at a CAGR of 6.5% between now and 2032. To take advantage of that growth, contractors need an upgrade, and Contractor+ believes it can provide that through its AI-driven platform that enables contractors to control every aspect of their business from a mobile app.
Leveling The Playing Field For All ContractorsThe idea behind Contractor+, the brainchild of CEO Justin Smith and CTO Roshan Sethia, is to level the playing field for contractors who may lack technological know-how or have financial constraints — factors that could be preventing them from growing. The company supports growth by giving small and medium businesses access to the tools that can improve quality, automate processes, enhance efficiency and productivity and streamline the process from estimate to completion of the job. That in turn also frees up contractors to do more work and bring in more money. “Our platform is more than a tool; it's a bridge connecting contractors to the digital era, empowering them with technology that was once out of reach,” the company said in its pitch to investors. “The construction industry, historically slow to adopt technology and sensitive to high prices, finds a haven in Contractor+, where next-level efficiency meets affordability.”
At the heart of its platform is patent-pending AI that lets contractors transform hours of work into minutes using automation. The app comes with highly flexible and powerful estimation tools, collaboration tools so all parties involved in the project can see what stage it’s at, a website to generate leads and the ability to process payments through the app. On one dashboard, customers see the number of active jobs, estimates, invoices, leads, payments and expenses, as well as a list of current actionable items, the day’s schedule and gross revenue. No more sifting through paper-based invoices and notes jotted down to manage schedules, timelines and payments – it’s all done through one mobile app.
Click here to learn more about how Contractor+ is leveling the playing field for contractors.
Proof Is In The GrowthAround since January 2020, Contractor+ has been making a name for itself in the industry, boasting 75,000 home improvement projects successfully managed via its app, more than 800 paying businesses using the app and a fast-growing community of 5,500 monthly active users. This has translated into year-over-year topline growth of 122%, with the company pegging its total addressable market at $60 billion. Its monthly recurring revenue is targeted to hit $53,000 in 2024, $175,000 by the end of 2025 and $535,000 through 2028. Contractor+ is forecasting annual revenue to reach $22.2 million, gross margins to hit 75% and net margin to be at 33% by 2028.
But it’s not just subscriptions Contractor+ is relying on to drive sales and growth. It envisions creating a wide-reaching community in which it can sell, support and provide leads for everything from insurance to referrals. “Our vision extends beyond market capture; it's about market expansion through a collaborative marketplace that not only addresses current needs but also anticipates future demands,” says Contractor+.
Seize The MomentInvestors seem to agree so far. Since launching its capital fundraising campaign, Contractor+ has raised $255,000 from 129 investors, more than halfway to its goal of raising $430,000. It previously raised $90,000 from angel investors, including executives from Alphabet Inc.’s (NASDAQ: GOOG) Google, Meta Platforms Inc. (NASDAQ: META), Intel Corp. (NASDAQ: INTC), Amazon.com Inc. (NASDAQ: AMZN) and CACI International Inc. (NYSE: CACI). Hemdeep Dulthummon, a principal at Optiscale Ventures and lead syndicate on this fundraising round said he is confident in the startup’s ability to grow. Dulthummon believes that even capturing just a small share of the market can propel Contractor+ to a $100 million valuation. “Contractor+ offers compelling value propositions to its target customers. The platform's tools deliver significant benefits at a low cost, translating to high ROI and minimal barriers to entry,” says Dulthummon. Ideally, the company wants to raise a total of $1.5 million to supercharge its platform, potentially dominate the market and stand out from rivals servicing contractors.
The construction industry is late to the technology party, with countless contractors relying on manual, time-consuming processes to give estimates, manage projects and accept payments. Contractor+ is turning that on its head, leveling the playing field for even the smallest contractor.
Featured photo by Theme Photos on Unsplash.
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