The Dental Franchise

Jo BeekmanShervin LimbertNeenu SohiJenny Warburton

Agenda

• Introduction Dental franchise

• Competitor analysis

• Strategic group map

• Market Study

• Initial results

• Next steps

The Dental Franchise

•The Dental Franchise provides outsourcing services for dental practices. •The Franchise will enable dentists to operate dental offices based on a proven trademark and formula of doing business, while maintaining control over their practice.•The Franchise will offer patients a consistent and professional dental service.

Value proposition

Identified Market Needs

Dentists • Business Administration can be a nightmare• Balancing family and professional life is a challenge• The focus on dental and patient care is overshadowed by the operational challenges of running a dental practice

Patients•Alleviate anxiety with new dentist / practice

Identified Services

• Review of the current state of the office and goals identification for both short and long term. Specific recommendations on areas in need of improvement.

HR Support• Help with hiring dental assistants, hygienists, dentists and front office staff. • Help with training employees in best practices, office software and hardware• Manage best practices for employee evaluation. Help with building retention programs• Benefits Management

Business Operations Management• Managing the process to pay bills and collect bills• Install/Maintain software and hardware systems• Establish and build better pricing methods with local labs• Install better workflows to manage/order the supplies

Marketing• Brand recognition • Regional and National Advertising via Broadcast, online or direct mail channels depending on the markets• Patient Acquisition and retention programs. Patient Lifetime Management programs

Consulting

Competitor analysis

• Industry analysis revealed 4 competitors:– BrightNow!, DentalOne, Vital Dent and 6-Day

Dental – The differences in size, dispersion and control

(over the practice) has been summarized in the strategic group map.

• From the competitor analysis we confirmed the white space available to the Dental Franchise.

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Low

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Level of Control over Practice

DentalFranchise

BrightNow!

6-DayDental

Dental-One

Strategic Group Map for the Dental Franchise/Group

Vital Dent

Market study

• A marketing survey is posted on a national website for general dentists.

• A conjoint study is included in the survey to assess the outsourcing needs.

• The survey also asked for demographic information.

• And the survey was used to help in segmenting the market.

Initial results

• The survey confirmed the market segments that were identified:– Starters (new graduates), life-work balancers,

practices looking for administrative support.

• Dental practice franchises are still a niche market– Existing franchises have a small market share

and show a slow growth rate– The survey feedback also points towards a

niche market.

Next steps

• Verify value proposition– Slow diffusion strategy– Build up franchise model in stages

• Verify financial model– Include options and milestones in the model

Back up slides

The Dental Franchise

The Dental Franchise will enable dentists to open dental offices based on a proven trademark and formula of doing business, and it will offer patients a consistent and professional dental service.

Description

Market Needs

•Optimized and trademarked scheduling algorithms for efficient office operation •Efficient Operational Structures

• negotiated rates with labs• supplies management• tried and tested IT solutions (internet, phone, fax, software, hardware)

•Investment in the Human Capital• Staff training, hiring and retention tools• Benefits management• Payroll services

• Unified marketing programs• online• direct mail• possibly radio/TV

• Patient Acquisition and Retention Programs• Automatic enrollment in insurance programs• Fee schedules

Franchise Addresses the Market Needs

Dentists •Business Administration can be a nightmare• Flexibility to balance family and professional life• Ability to focus on dental and patient care

Patients• Consistent and professional service• Build relationship with a dentist•Alleviate anxiety with new dentist / practice

– Total Number of Dentists : 128,000

Market Size Y1 – Pick a high population density area (e.g.

Philadelphia) and open 1 practiceY2 – 2 practices in same areaY3 – 2 more practices in this area and 1

practice in a new cityY4 – Expand to total 10 practices in 2 areasY5 – Expand to total 15 practices in possibly 3

areas.

Revenue Model (TBD)

5 Year Revenue Projection Model

78%

14%8% Private

Practice

Partnership

Other

Addressable Market• Current Private Practice Owners – 5%• New Graduates – 20%

The Dental Franchise