Seed Home 2 Enterprise Track

Summary

The initial idea was that the Enterpise Track would consist of individuals who deliver the Seed Home 2 to the 2000 customers. The Entrepreneurs learn all the OSE principles of collaborative design/build - and then guide customers in their house build.

We are assuming that the house building package will be an irresistable offer - by virtue of ease of build (speed), cost, and quality, breaking the Iron Triangle.

After examining the house delivery, we have observed that we can deliver houses more easily than we thought. The process revolves around - 1. adaptation of package to customer; 2. land acquisition and permits; and the 3. actual build.

The Build Package of Building Package Submission to local officials, as well as drop ship of materials, can be largely automated. FreeCAD automation of the Generic Bills of Materials can be created as part of the Hackathon. The creation of a purchase order involves making an order from a local big box store - with links to specific parts from the Generic Bill of Materials. OSE's value proposition is further to reduce materials cost of the drop ship via bulk pricing. It can be foreseeable that OSE Campuses also serve as warehouse space for materials, supplying local microfactories.

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A lot of the fulfillment of the Seed Home 2 can be automated, and a good support network can be created as in the graphic, so Owner-Builders can succeed.

However, the only problem is that most people will not want to build their own house. Apparently, 7% of all homes were owner-built, and the vast majority is houses built for sale. The 7% are more specifically Armchair Builders - as found on a website of the same name [1] - simply people who serve as their own contractors. 17% were built by contractors - meaning 'owner hires contractor'.

Custom Homes and Spec Homes

The vast majority (74%) are spec homes - speculation homes. Investment homes are homes bought for investment purposes - for rental or resale or both. There is another category than speculation homes: custom homes. [2]. These are 25% of market share. In this model, the 'custom home' appears to be the owner built and contractor built for people who already have land - the 7 and 14 % from the last section. Custom homes tend to be on the high side - not $100-200 as spec homes, but more in the $200-$500/sf. [3].

25% is a significant share - and this is the market that the OSE model is aiming to address.

OSE/OBI is offering a breakthrough here. With people securing a $5k parcel of land that can be had just about anywhere USA, and teh $50k home package - it is clear that a large opportunity exists for custom homes at the production cost of $50/sf range.

Revenue Models

There is a whole range of tiers that we are developing:

1. Download plans, build with your labor, and get a house atarting at $45k - about $40k in materials, $5k land. Permits and sewer may add up more.
2. Take our support package and drop ship - you get a house starting at $40k materials, $10k service fee, $5k land, + utilities hookup in cities. In rural areas, cost for septic fertigation system is minimal.
3. Take our course, collaborate. $50k package with support and community, so you don't have to do it alone.
4. Hire someone to build for you. We can drop ship materials at $40k and up. You pay someone $10k to build from our detailed plans. You don't even need to take our course - just work from our detailed build instructions. You still need a Building Permit Package (Adaptation of Designs to your site) - which you can get from us at low cost of about $1-2k.

Revenue Streams

1. Training
2. Drop ship from optimized supply chain
3. Drop ship - PV system
4. Open Source Architecture Training
5. Trade School training
6. Build training - for builders
7. Enterprise training
8. OSE Fellow Training - remote, 1 year half time or full time. $7500 for half time, $10k for full time.
9. Coffee Table Book