Emmanuel Adewole

DIGITAL HEALTH USA BUSINESS PLAN Bringing the patient into his own smile design process Nathalia Andrade Lopes da Silva Table of Contents Executive Summary............................................................................................................. 3 Digital Dentistry .............................................................................................................. 3 Service Offering ............................................................................................................... 3 Unique Selling Proposition ............................................................................................. 4 Financial Forecast............................................................................................................ 4 Vision Statement ............................................................................................................. 4 Mission Statement ........................................................................................................... 5 Keys to Success ................................................................................................................ 5 Company Description .......................................................................................................... 6 Company Ownership ....................................................................................................... 6 Company Location ........................................................................................................... 6 Company Digital Address ................................................................................................ 6 Management .................................................................................................................... 7 Business Model ................................................................................................................ 7 Aims and Objectives ........................................................................................................ 7 Core Values ...................................................................................................................... 8 Industry & Competitors' Analysis ....................................................................................... 9 Global Dental Services Market ........................................................................................ 9 US Dental Market Overview ............................................................................................ 9 Digital Dentistry Market................................................................................................ 10 Market Drivers ................................................................................................................ 11 Market Restraints ........................................................................................................... 11 Target Market ................................................................................................................. 11 Competitor Analysis ...................................................................................................... 12 Competitive Edge........................................................................................................... 12 SWOT Analysis .................................................................................................................. 14 Strengths ........................................................................................................................ 14 Weaknesses .................................................................................................................... 14 Opportunities ................................................................................................................. 14 Threats ........................................................................................................................... 14 Tailored Marketing Plan ................................................................................................... 15 Marketing Strategy ........................................................................................................ 15 Sales Strategy ..................................................................................................................17 Sales Forecast .................................................................................................................17 Financial Forecast ............................................................................................................. 19 1 Important Assumptions ................................................................................................ 19 Financial Outline ........................................................................................................... 19 Projected Expenses ........................................................................................................ 19 Sales Forecast ................................................................................................................ 19 Profit and Loss ............................................................................................................... 20 2 Executive Summary Digital Health USA (DHUSA) is healthcare technology company specializing in the sale of technology applications and software for the improvement of Dental analysis and door-to-door visitation of professional Dentists across the USA. We are a dental company seeking to present to the public a new face of dentistry that is more humanistic, emotional, artistic, and relatable to further enhance the dentistry profession and patient’s outcomes and dental procedures. Study reveals that nowadays, having a mouth free of biological and functional problems is not enough for many high and middle class patients. Patients now care more about personality development through beautiful smiles that are integrated with their physical characteristics but also in harmony with their emotional aspects. To satisfy the growing wants and needs of the market, the modern dentist needs to go beyond just being a good dentist. Dentists need to become Smile Designers! Our company has designed a technology whose concept aims to help dentists solve this current market problem with focus on improvement of the esthetic visualization of the patient's problems and provision of insights about possible solutions. Digital Dentistry Digital dentistry refers to the use of dental technologies or devices that incorporate digital or computer-controlled components to carry out dental procedures rather than using mechanical or electrical tools. The use of digital dentistry can make carrying out dental procedures more efficient than using mechanical tools, both for restorative as well as diagnostic purposes. It is also majorly used as a way to facilitate dental treatments and propose new ways to meet rising patient demands. The concept of digital dentistry has been spreading rapidly around the world mainly because of its simplicity and the non-requirement of any special equipment, software or major investments. Service Offering At DHUSA, we specialize in the provision of modern technology for the improvement of dental analysis, door-to-door visitation of professional dentists, smile pattern customization, DSD apps, and other dental related technology. We employ the use of latest visual technology to design and create different smile designs, each one with a 3 specific character. Our smile designs are created to harmonize with the morphopsychological aspects of patients. Unique Selling Proposition In today’s highly competitive industry, it is vital to differentiate ourselves from every other healthcare company and dental stations and services providers in the country. We have created our products with a special differentiation strategy that focuses on three major industry improvement points, namely: Better visual communication in daily treatment planning, better integration of the interdisciplinary team, and better interaction with the patient. Financial Forecast Digital Health USA’s financial projections are conservative yet very bright. We will consciously work to sign up customers, gain momentum to generate appreciable sales, and consciously build a good customer base with a robust marketing scheme to help launch all our digital platforms. Our digital platforms will help give us a solid financial footing, as it helps us in generating a vast customer base at a relatively low operating cost, which is a pointer to positive financial growth. Our sales revenue for year one is strategically and cautiously projected to be $71,000 and a net profit of $40,000, growing to $120,000 and $79,000 in the second year, $200,000 and $129,000 in the third year, $300,000 and $205,000 in the fourth year, and finally climbing to $450,000 and $303,000 in the fifth year. Our operating costs have been carefully kept on the low to allow for more profitability and company growth. Financial Projections- Year 1 year 2 year 3 Revenue Year 4 Year 5 Profit Vision Statement To become an industrial name in the global digital dental market. 4 Mission Statement The DHUSA’s mission is to provide the finest dental care tailored to meet the patient’s demanding esthetic expectations, as we attract and maintain a large user base, while striving to continuously exceed the expectations of our customers. Keys to Success There are many factors that are responsible for running a successful healthcare technology business in today’s US market. Over the years, business successes are being associated with more than just financial figures, but some key business decisions capable of driving business growth. DHUSA will adhere to the following keys that will be hugely instrumental to her success: Strict Financial Controls: We will create procedures, policies, and means to monitor and control the direction, allocation, and usage of our financial resources. This will be done through thorough budgeting, projection, timely updating, and overlap and anomaly detection. Top-notch products: We will continually promote top-notch dental technology products that are customer-focused, and meet with all health standards. Our products will be updated and improved continuously to ensure we serve our customers with the best digital dental products. Superlative Communication: We will keep our members current on all aspects of our products and business through monthly newsletters and website updates. We will also promote members feedback and input to ensure the development of super business processes. Excellent leadership and People Management: We will implement an excellent leadership trait in every of our business processes, making every member of the company understand their roles and importance through transparent and exemplary leadership, which will help improve our relationship with our customers and partners. Excellent Services and Fine reputation: We will promote goodwill of the company to achieve word-of-mouth advertising through consistent heartfelt services and competitive pricing. Excellent Marketing Program: We will constantly update our marketing efforts to get ahead of the ever competitive market, in order to possess a fair share of the end consumers in the dentistry business chain. 5 Company Description DHUSA is healthcare technology company specializing in the sale of technology applications and software for the improvement of Dental analysis and door-to-door visitation of professional Dentists across the USA. We are a dental company seeking to present to the public a new face of dentistry that is more humanistic, emotional, artistic, and relatable to further enhance the dentistry profession and patient’s outcomes and dental procedures. Digital health USA will be a licensed, registered and insured dental technology company that will provide all sorts of tech-related applications that will aid dentists in their esthetic planning, patient monitoring, and improve their dental results. We will be a company known for the creation of specific smile designs that harmonizes with the morphopsychological aspects of the patient, as we aim to create a channel of communication between dentists and patients to facilitate these processes. Company Ownership The company was founded and fully owned by Nathalia Andrade Lopes da Silva. Company Location Digital Health USA will start its operations in Minnesota. Our major operations and digital platform management will be carried out at a strategic location that will help us easily drive awareness, sales, and market comprehension in Minnesota and the United States at large. The business will be based in Minnesota, however, our focus is on the entire United States’ dentistry market. Because we are a health-tech company, as we grow and expand into the national dentistry market, we will not need to spend much on acquiring operational bases and offices due to the nature of our business. Company Digital Address The company will have the following digital presence: Website: https://digitalhealthUSA.tech Facebook: https:// Twitter: https:// Instagram: https:// 6 Management The management team will be led by the founder, Nathalia Andrade Lopes da Silva. The team has gained adequate market and dental experience over the years. The team leader has developed a sound operational plan that will allow the management focus on building sales and wide customer base rather than just early profit, which is proven to generate higher revenue over the years. We have an extremely high degree of confidence that the systems and controls incorporated in our plan will yield desired results. Proven marketing techniques and operational systems will allow the management to be proactive rather than reactive to the conditions and obstacles associated with the starting processes of a new digital dental company. The management team will be supported and improved with the hiring of other staffs to fill up important roles as the company grows. As the company grows, our operational needs will increase, and we will meet them by hiring top-notch staffs who fit into the company’s working philosophy into the important vacant roles. We will hire receptionists, managers, accountants, marketers and sales reps, and collaborators. Business Model Revenue Model: At the early stage of the business, we will operate a single revenue model, ensuring we sign adequate customers at competitive pricing all over the United States. The company’s revenue and pricing model has been carefully structured to allow us gain adequate dentists as customers that will keep our business financially afloat while we develop other products for the market. We will charge US$400 annually every installed app. Customer Acquisition: Our target customers are dentists all over the United States who interact with patients directly. Our major business model for acquiring customers is offering our products to practicing dentists all over the US, who then introduces and prescribe the app to their customers. We will also employ the creative use of in-app marketing, email marketing, content marketing, Social media marketing and advertising, and Search engine optimization. Aims and Objectives We have identified several objectives for the company, which are highlighted below: Become a leading player in the digital dentistry industry in the United States. 7 Attain sustainable profitability in few years. Improve Esthetic planning and smile design procedures for all dentists all over the US. Improvement of communication between specialists involved Esthetic planning and smile design procedures. Increment in patient participation in the designing process of their own smile design. Motivating and educating Americans about the benefits of dental treatment and case acceptance. To create a start-up organization from an already existing practice whose primary goal is to exceed customer’s expectations To increase the number of clients by 20% per year through superior performance and word-of-mouth referrals. To form a digital dentistry practice that is able to eventually survive off its own cash flow. Exciting return on investments for stakeholders of the company. Core Values Customer Satisfaction: We are in business primarily for our customers’ satisfaction. This will be further propagated with our customer relation swiftness and friendliness. Innovation: We are in a competition with the industries and our yesterday’s standard daily; to keep giving customers the best experience. Top Expertise: Hiring and retaining quality staffs in every role for efficiency and effectiveness in pursuit of increased productivity with consideration for cost, quality, and user satisfaction. Speed: We understand that the business of the 21st century is speed based, and we will function accordingly. Attentiveness: We will be attentive to our customers and staffs to allow for maximum growth, expansion, and service satisfaction. 8 Industry & Competitors' Analysis The dental services market consists of sales of dental services, dental software, and related goods by entities (organizations, sole traders and partnerships) that provide general dentistry, oral surgeries and orthodontics and prosthodontics services. This industry comprises establishments of licensed health practitioners having the degree of D.M.D. – Doctor of Dental Medicine, D.D.S. – Doctor of Dental Surgery, or D.D.Sc. – Doctor of Dental Science. Global Dental Services Market The global dental services market reached a value of nearly $436.2 billion in 2018, having grown at a compound annual growth rate (CAGR) of 7.4% since 2014, and is expected to grow at a CAGR of 9.6% to nearly $629.3 billion by 2022. Growth in the historic period resulted from favorable government initiatives, aging populations, and emerging markets growth. Factors that negatively affected growth in the historic period were unqualified man power, limited coverage for dental services, and weak wage growth in some countries. Going forward, rising demand for cosmetic dentistry, growing dental tourism, increasing popularity of franchise dentistry, and technological advances will drive growth. Factors that could hinder the growth of the dental services market in the future include increasing costs of dental procedures, rising interest rates, and stringent government regulations. US Dental Market Overview The US Dentist industry market size is measured to be $137.6billion in 2020. The market is estimated and calculated to have declined by 1.5% in 2020, though it has grown at 1.4% per year on average between 2015 and 2020. Market study shows that the market size of the dentist industry in the US increased faster than the economy overall. The industry currently employs about 1.03 million people, with an average of 189,000 operational businesses. 9 US Dental Market Size Over the last five years to 2025, operators in the Dentists industry will benefit largely from rising levels of consumer disposable income and dental insurance coverage. As per capita disposable income rises and unemployment is expected to begin declining, demand for dentists is expected to surge. Procedures and visits that were delayed due to the COVID-19 pandemic are expected to help boost demand early in the period as these deferred services are realized. Alongside this, continued growth in the number of adults aged 65 and older will also drive demand and revenue growth, since individuals tend to need dental care more frequently as they age. Continued improvements in dental care coverage under Medicaid will also support the industry. There are currently about 180,000 dental businesses in the country, and the number of businesses in the Dentists industry in the US has grown 0.9% per year on average over the last five years. Three states currently dominate the dentist market, with California, Texas, and New York leading the chart. The Dentists industry in the US has low market share concentration and there are no companies with more than 5% market share. Digital Dentistry Market Digital dentistry market is expected to gain market growth in the forecast period of 2020 to 2027. Data Bridge Market Research analyses the market to account to USD 1,101.10 million by 2027 growing at a CAGR of 9.50% in the above-mentioned forecast period. The digital dentistry market will be encouraged by the progressive transformation from conventional dental artificial replacements to those generated within advanced CAD and 10 CAM techniques. As costs have diminished, the advantages of adopting certain technology have converted more apparent growth for the market. Amidst the more distinguished levels of capability and enhanced affordability, doctors are more tending to fund in CAD/CAM operations and, consequently, the inevitable substances. Patients and practitioners are also growing more trained about the advantages of CAD/CAM, additionally strengthening market germination. The circumstance restraining the extension of the digital dentistry market is the appearance of comparatively low-priced products. Market Drivers Growing awareness about oral health Rising prevalence of dental diseases Growing geriatric population Growing number of small/private dental clinics Artificial intelligence and IoT in the Dental market Increased healthcare technology adoption Growing interest in personality development Growing private health insurance coverage. Escalating demand for cosmetic and elective dentistry. Market Restraints Global Covid-19 pandemic Limited dental coverage Competitive Pricing Pressure High price of selective dental procedures Target Market We operate a multi-dimensional target market that focuses on professional dentists (Customers) and patients (End-users). The dentistry market is highly lucrative and profitable, because it is related to one of the basic needs of humans – sound health. We will be primarily targeting dentists and dental clinics in Minnesota and its neighboring states during the early years of our operation. We will start off by offering our products to dentists in Minnesota, and strive towards extending our product offering and services to dentists all over the country. We will be targeting professional dentists, dental 11 stations and clinics, Etiquette and personality development organizations, health insurance payers, and luxury hospitals. Competitor Analysis We operate in a new and unsaturated market, and the competition in the industry is growing with the increase in technological advancement. Having carried out in-depth research about our major competitors, we have formulated and better-shaped our competitive advantage focusing on our unique product offering to ensure we command an appreciable market share. Highlighted below is a short profile on our major competitors in the industry: DDS GP: DDS GP is an app focused on patient education and demonstration, which allows dentists to illustrate the effects of dental conditions such as periodontal disease, decay, cracks, and other conditions over time. The tool currently features over 200 demonstrations and gives users the ability to draw directly on the screen with their fingers, save the edited drawings, add images to a photo library, and even create, send, and print individual treatment plans for their patients. It has a flat fee of $399 and it is available on iPhone, iPod touch, and iPad and in various languages. Lexi-Dental Complete: Lexi-Dental Complete is a resourceful dental resource with a resource dental library which includes drug information and effects, patient resources, laboratory and diagnostic procedure information, dental conditions, natural product information, a dental emergency handbook, Stedman’s medical dictionary, and other useful resources. This app can be downloaded for free on a 3-day trial. It has a flat fee of $285 yearly and $570 for 2 years. It is available for iPhone, iPad touch, iPad, Androidpowered devices, and BlackBerry Handheld. iRomexis: iRomexis is a full-fledged 2-D and 3-D mobile image-viewer application built for the iPad. It’s designed to display all images created by Planmeca X-ray units, including Planmeca ProMax 3-D and ProFace 3D photos. Images can be used for patient education and consultation with colleagues in a convenient medium. Image resolution quality is excellent. The application organizes and categorizes patient images very well, and is also perfectly compatible with Romexis desktop software, allowing for imagesharing with mobile devices anywhere. Dental Expert: Dental Expert was designed specifically to educate patients about a dental practice — all the work that dentists do and why. When patients are better informed about their dental health and all of the options at their disposal (without having to engage in a lengthy consultation), they’ll be more inclined to visit the office for routine checkups and operations, which benefits both patients and dentists alike. It only runs on iPhone, iPod touch, and IPad. Competitive Edge The Digital Health USA will leverage its three major competitive advantage to earn us a significant market share. We can create different smile designs, each one with a specific character that is harmonized with the morphopsychological aspects of the patient. We 12 will stand out from the competition by focusing on our three major unique selling proposition, which are: Better visual communication in daily treatment planning Better integration of the interdisciplinary team Better interaction with the patient 13 SWOT Analysis Strengths High barriers to entry Highly experienced owner-operator Limited competition in the Minnesota area Very high gross margins Ability to sell products online Limited startup risk High digital presence visibility Advanced Visual technology User-friendly interface Weaknesses Limited startup cost Limited flexibility in pricing Opportunities Continued expansion for online sales Increasing adoption of healthcare technology tools by professionals Ability to develop additional complementing and stand-alone apps Development of proprietary products Growing private health insurance coverage. Rising prevalence of dental diseases. Growing interest in personality development Threats Competitors can offer similar products quickly Changes in government regulations Effect of global pandemic Rapid changes in dental technology 14 Tailored Marketing Plan The marketing strategy will utilize two different methods to generate visibility and lead conversion for the Digital Health USA’s practice. The sales strategy will be based on enlightening customers and building partnerships to ensure they make informed decision working with us to promote our usage growth. By educating the dentists, we are empowering them to make the decision rationally by themselves, making them feel comfortable with their choice and develop the desire to recommend and prescribe for their patients. Marketing Strategy Our marketing strategy will be based on developing visibility among prospective dentists, while focusing on converting them as customers. Our marketing efforts are divided into two major phase, which includes digital marketing and traditional marketing. Highlighted below are the following marketing strategies we will employ for market penetration and acquisition of appreciable market share: Social Media Marketing and Ads: We believe that the available social media platforms are a great way to get ourselves out there and interacting with potential customers. It can help us build a community around our product offering and improve customer acquisition and retention. We will create highly optimized social media pages with interactive contents. There are currently hundreds of social media groups, pages and channels of dentists, dental clinics and stations, and dental associations, that will serve as a good landing page for our lead generation and conversion. Engaging and Demonstrative Videos: Study proves that 45 percent of social media users watch an hour of videos on social media platforms per week. In other words, we will strategically incorporate video marketing as an integral part of our digital marketing. We will create engaging and demonstrative videos that highlights how our products can be used, its benefits for dentists and patients, and educative video content on oral health and smile designs. Enhancement of Paid search Campaigns: Google's starting to introduce a new feature called "Responsive Text Ads." These ads allow you to include up to 15 headlines and 4 descriptions. Google rotates and matches these elements to reveal the most relevant results to the search term. We will employ the use of paid search campaigns to promote our products in their early stages. 15 Pursue 5-start online reviews: The importance of positive online reviews isn't new. But reviews will become increasingly critical in 2020 and the years to come, as more and more people rely on them to make business decisions. Research shows that 91 percent of people read online reviews, and 84 percent trust online reviews as much as they'd trust a personal recommendation. High online reviews will help us rank high in search engines as against our competitors, and will also help many end-users trust and download our applications. Website Optimization: Beautiful website design has been a dental marketing services staple since the beginning of the Internet. But website design is way more than a beauty contest. We will develop good aesthetics for our website, while focusing on mobile-responsiveness. We will ensure our visitors don’t labor through long blocks of text, as we will provide them with needed information at a glance. We will constantly and consistently optimize our website for customers and patient’s conversion. Our website will be structured in a manner that takes potential customers and end-users down a digital journey that leads them to a positive real-world experience. Influence build-up: We will improve our E.A.T (Expertise, Authoritativeness, and Trustworthiness) game. We will strive in the early stage of our product development and sale to ensure we sign up professional dentists that are trustworthy and of high reputation in the industry. We will build a network of influence that will help our products gain professional recognition and acceptance easily. Automated Email Campaign: Email automation will allow us to send time-or action triggered campaigns to our potential customers. We will automate monthly newsletters focused on education and lead conversion, as well as surveys that can help dentists in their profession. This will help us to project our brand as a friendly entity that cares about the dentists’ profession and business. Excellent content marketing: We believe that content is king. We will make use of excellent and updated content marketing strategies to promote our products and brand. Good website contents will help demonstrate our knowledge and expertise to our potential customers and end-users. It will help us with search engine optimization, and lead generation and conversion. We will employ the services of a good content developer and manager to constantly improve our content game in the dental industry. 16 Dental Association Memberships: We will join some key dental associations as members and some as partners and sponsors. This will grant us direct access to registered and practicing dentists in any targeted location. Dental Event Sponsorships: We will partner with some major dental event program planners to sponsor their programs in one way or the other to increase our brand visibility. This will also give us room to advertise our products directly to interested customers. Dental Clinic Visitations: We will visit prominent dental clinics and stations from time to advertise and inform them about our products and its benefits. We will employ the services of a creative sales development rep and sales representatives to meet up with reputable dental organizations and clinics to offer them our products. Sales Strategy Our sales strategy will be based on enlightening customers and building partnerships to ensure they make informed decision working with us to promote our usage growth. By educating the dentists, we are empowering them to make the decision rationally by themselves, making them feel comfortable with their choice and develop the desire to recommend and prescribe for their patients. This sales strategy is geared toward turning prospective customers into long-term customers who are then quite vocal to their patients about our top-notch product. Sales Forecast We have highlighted below a table and a chart showing our projected sales and revenue generation for the next five years from our DSD apps and future innovations. Sales Year 1 Year 2 Year 3 Year 4 Year 5 DSD App 71,000 110,000 180,000 250,000 380,000 Future Revenue Model 0 0 20,000 50,000 70,000 TOTAL 71,000 120,000 200,000 300,000 450,000 17 Sales Forecast- Year 1 Year 2 DSD Apps Year 3 Year 4 Year 5 Future products 18 Financial Forecast Important Assumptions Our financial plan depends on some key assumptions. The key underlying assumptions are: Growth will be moderate, cash flows steady. Revenue will increase steadily for the next five years as sales rate keeps improving Slow-growth economy, without major recession. No unforeseen changes in the popularity of business model Access to loan and financing sufficient to fulfil campaigns and expansion plans. Financial Outline The following sections outline our financial summary and projections: Projected Expenses Sales Forecast Profit and Loss Projected Expenses We assume a slightly average gross margin than industry standards for dental technology industry in the United States, because of our unique selling propositions and business model. Because we're new to this business, we've adjusted the profitability into normal range by adding a relatively large amount of additional un-itemized expenses. That gives us a buffer for the additional unforeseen expenses that we expect will come up. If they don't, then we'll be more profitable than projected. Expenses Year 1 Year 2 Year 3 Year 4 Year 5 Payroll 0 5,000 15,000 30,000 55,000 Marketing Expenses 15,000 15,000 25,000 25,000 35,000 Depreciation 0 0 0 0 0 Utilities 1,000 1,000 1,000 2,000 2,000 Travelling 12,000 15,000 20,000 20,000 30,000 Miscellaneous 3,000 5,000 10,000 18,000 25,000 Total Expenses 31,000 41,000 71,000 95,000 147,000 Sales Forecast Highlighted below is our projected sales forecast showing a steady revenue growth over the years: 19 Sales Year 1 Year 2 Year 3 Year 4 Year 5 DSD App 71,000 110,000 180,000 250,000 380,000 Future Revenue Model 0 0 20,000 50,000 70,000 TOTAL 71,000 120,000 200,000 300,000 450,000 Profit and Loss The profit and loss demonstrate modest increases in revenues over the three expected years with adjustments for inflation. Profit and Loss Income Sales Subtotal Cash received Investor Relations Total Revenue Total cost of sales Gross Margin Expenses Total General Expenses Office Rental Loan Repayment Total Expenses Net Profit Year 1 Year 2 Year 3 Year 4 Year 5 71,000 71,000 110,000 110,000 200,000 200,000 300,000 300,000 450,000 450,000 0 71,000 0 71,000 0 120,000 1,000 119,000 0 200,000 2,000 198,000 0 300,000 2,000 298,000 0 450,000 5,000 445,000 31,000 41,000 71,000 95,000 147,000 0 0 31,000 40,000 0 0 41,000 79,000 0 0 71,000 129,000 0 0 95,000 205,000 0 0 147,000 303,000 Profit and Loss- Year 1 year 2 Year 3 Year4 Year 5 Profit and Loss 20