Transforming Consumer Financing

In this episode, CJ interviews Philip Brenckle, CFO of West Shore Home, a company that's revolutionizing the way that people are remodeling their homes. Phil shares insights on the home remodeling market, an unconsolidated industry with a total addressable market (TAM) of $500 billion. He explains how West Shore Home is growing its TAM by meeting customers where they are, before shedding light on the company’s model and its direct-to-consumer component. Phil dives into the role of credit in home remodels and West Shore Home’s financing module. He also breaks down the average split between labor and materials, why the company chooses to work with W2 employees over subcontractors, and how they determine pricing. Additionally, Phil talks about how M&A is part of their strategy, the types of acquisition deals West Shore Home does, and why you should only work with great advisors, before giving tips on how to effectively build relationships with banking partners. 

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SPONSORS:

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Leapfin is accounting automation software that automatically prepares and posts reliable journal entries. High-growth businesses like Reddit, Canva, and Seat Geek choose Leapfin to eliminate manual tasks, accelerate month-end close, and enable accounting leaders to provide faster insights to help their companies grow. To automatically standardize your revenue data with measurable business impact, check out leapfin.com today. 

Planful is a financial performance management platform designed to streamline financial tasks for businesses. It helps with budgeting, closing the books, and financial reporting, all on a cloud-based platform. By improving the efficiency and accuracy of these processes, Planful allows businesses to make better financial decisions. Find out more at www.planful.com/metrics.

Mercury is the fintech ambitious companies use for banking and all their financial workflows. With a powerful bank account at the center of their operations, companies can make better financial decisions and ensure that every dollar spent aligns with company priorities. That's why over 100K startups choose Mercury to confidently run all their financial operations with the precision, control, and focus they need to operate at their best. Learn more at mercury.com.

Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust®; Members FDIC.

NetSuite provides financial software for all your business needs. More than 38,000 thousand companies have already upgraded to NetSuite, gaining visibility and control over their financials, inventory, HR, eCommerce, and more. If you're looking for an ERP platform ✅ NetSuite: https://netsuite.com/metrics and get a customized KPI checklist. 

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TIMESTAMPS:(00:00) Preview and Intro(02:50) Sponsor - Maxio | Leapfin(05:59) West Shore Home’s TAM(09:07) Growing the TAM(12:52) The D2C Nature of West Shore Home(16:24) Home Remodels and Credit Financing(18:53) Sponsor - Planful | Mercury | NetSuite(21:22) How Credit Works at West Shore Home(23:45) The Cost of a Financing Module(28:56) W2 Employees Versus Subcontractors(31:01) The Split Between Labor and Materials(34:31) Determining Pricing(37:31) M&A and Consolidation in the Home Remodeling Industry(42:29) Structures West Shore Home Uses for M&A Deals(45:29) Why You Shouldn’t Cut Corners on Great Advisors(48:58) Tips for Working With Bankers(52:10) Long-Ass Lightning Round: Extreme Ownership(55:08) Finance Software Stack(56:29) Craziest Expense Story(57:55) Closing Statistics on the Home Remodeling TAM