Value Engineering: 10X the Value of Your Clinic| Audiobook Part 12| Dr. Allen Nazeri DDS MBA

Value engineering strategies to 10x the value of your clinic and dominate the market Part 12 Chapter 11 and 12 strategizing like an MBA graduate hiring professional Help in this section, I would like to share some of the most common and my favorite business tools to ask my clients and students to evaluate their business and create the strategies for their growth. Regardless of your business's size, professional investors use the same tools for managing billions of dollars in assets. Business Plan A business plan is a roadmap for business to achieve its objectives. Most people think of a business plan as something lengthy and formal and thus they are discouraged when someone asks them for a business plan. Others think of a business plan as only a tool when presenting to investors or banks. Nothing is further from the truth. Business plans are dynamic in nature. As conditions of our businesses change all the time. I recommend updating a business plan at least every quarter. One of my favorite business plan model is a Lean Canvas model. It is one page canvas created by Ash Mora. On this canvas there are following blocks that make founders think about their business model and have a quick snapshot of all the essential elements of a business without writing a lengthy business plan that typically is skipped over by a reader. Block 1 customer segment in this block, you define your customers as whom the ideal and early adopter targeted patients are for your practice. Block Number two Problem in this block, you define the problem you're trying to solve and the alternative solution to patient problems that are currently in the market. Block Number three Revenue Stream in this block, you think about all of the methods to generate revenue for your business.

Solution in this block, you list all all of the solutions to solve the problems in block number 2. Block number 5 unique value proposition in this block, you focus on the message of what sets your business apart and why a patient should consider seeking your services over a competitor. Block Number six Channels in this block, you list all of the channels you would employ in attracting new patients to the practice. Block seven Key Metrics in this block, you determine how you would measure the success of your business. You make a list of key indicators and the targets to make sure your business model is responding and is on the right path. Block 8 cost structure in this block, you list your fixed and variable costs to get your project up and running.

Block Number nine Unfair Advantage in this block, you specify the competitive advantage that your business would have over a competitor that cannot easily be copied. An example of this would be a specific licensing or a partnership agreement or a particular patent on a treatment. I have spent over $50,000 in creating professional business plans that never end up being read in its entirety. The Canvas Business Model is a quick and inexpensive way for any business owner or management team to assess every decision on their business and and quickly change what may not be working for them. And I highly recommend it. You can access the interactive template by visiting www.leanstack.com that is L E A N S T A C A K.com.

SWOT Analysis SWOT is an acronym for Strength, Weaknesses, Opportunities and Threat. Using this framework allows the management teams to analyze the internal factors, strengths and weaknesses, and the external factors, threats and opportunities and come up with strategies to become more competitive in the marketplace. Strengths explain how your practice has a competitive advantage over other similar businesses in the area. For example, it could be that it may have been long established it has a large, loyal, active patient base, healthy cash flow and balance sheet, and it has a unique alliance with other strategic partners. The list of strengths allows an organization to leverage its further growth.

Identify the barriers to improvement and remaining competitive. It helps founders and managers focus on areas of improvement and transforming them into strengths. Example of this could be lack of skilled workers, low lead conversions, higher patient turnovers, limited working hours, outdated decor and equipment. Opportunities indicate an external factors company can exploit in growing a business. Examples could be reaching out to different markets, carrying out more educational seminars, tapping into medical tourism, creating a patient loyalty program, or a strategic partnership. Threats Threats are factors that can disrupt and cause a business to lose market share. These could be macroeconomic factors such as new healthcare regulations, political instability, economic conditions, or social trend changes. The knowledge of these trends will help you create defensive strategies to protect your practice. Examples could be new laws affecting licensing, infection control, currency fluctuations, or recession. I have included a copy of SWOT diagrams for reference. Get together with your team at least once every quarter and make a list.

The VRIO Framework is a business tool to assess the capabilities of available resources of a business by answering four questions. It allows management teams to figure out their competitive advantage over their rivals and use the information to better position themselves in the market. The questions that need answering are as follows. V stands for Is it valuable? Is what I think is a competitive advantage valuable? R stands for Is it rare? Is what I think is a competitive advantage rare? In other words, is it exclusive to my business only? I stands for Is it imitable? Is what I think is a competitive advantage imitable by competition? Can it easily be copied? O stands for has my organization exploited the resource? Has my company utilized the resources to the full extent?

Answers to the above questions will unlock your practice's potential in the marketplace and allow you to formulate a market strategy based on the differentiators giving you a competitive advantage. For example, if your center is open 24 hours, and that is something rare among your rivals, this differentiation can become your marketing focus. The VRIO Framework evaluates a company's internal resources related to the strengths and weaknesses listed on SWOT Analysis. I have included a copy of the VRIO Framework for your reference.

Pest Analysis this is a business tool used to evaluate opportunities and threats. Further on SWOT analysis, it helps to consider the macroeconomic factors before mapping out a corporate strategy. The PEST is an acronym for political, economic, social and technological factors. There are other variations referred to as Pestel, which considers additional factors such as environmental and legal. Pest Analysis is especially useful in evaluating new market entries. The more negative the factors, the more challenging it is to enter a market and thus to make a profit. I have included a copy of Pestle Worksheet for your reference. I encourage all my clients to apply these MBA tools before any strategic planning. They will help make management teams more focused and aware of potential risks and areas requiring improvement.

This is the end of chapter 11, chapter 12 hiring professional help.

Throughout this book I have outlined a roadmap that founders can follow to achieve exponential growth in their business while increasing its valuation. I often see business owners who try to do everything on their own end up with mediocre results. Yet those founders who assemble a team of experts usually end up maximizing their potential beyond their wildest dreams. I like to use an example of a developer who builds houses by hiring the best teams of architects and designers. He or she is often rewarded well for their efforts rather than having all of the work done by their internal team. Increasing the valuation of a practice is not any different. If you are serious about getting results, I recommend working with my group or any other group with similar experience as mine to help you grow to the next level. The choice is yours, but my message is for you to find professional help from those who have holistic approach to valuation and guide you through the next milestone. In my company, I offer two coaching programs to clients. Option number one DIY or known as do it Yourself. This program is for businesses where they are not in a hurry and need a professional coach's guidance to achieve desired results. The program is 24 to 30 months in duration and includes a weekly training and monitoring session about four hours in length. Option number 2 Diwy, also known as do it with you. This coaching program is an accelerated format and is for those companies that are looking to exit within the next 12 to 18 months. Because it is an accelerated program, my team supports the in the background, reducing the time required by an internal team and working as part of your company's external team, helping you with various tasks outlined in this book. Whether you decide to enroll in a DIY or DIWY coaching program, you can count on my experience and knowledge as an entrepreneur, a consultant, angel investor, and an investment banker with vast understanding of what professional investors look for in bidding for your company. As I mentioned earlier in the book, these are unprecedented at times with so much capital pouring into the healthcare. With the right coaching and mentorship, you too can benefit from this generational opportunity to cash out partially or fully.

This is the end of chapter 12. About the author Dr. Alan Nazeri, DDS, MBA, is a serial entrepreneur, an angel investor and an investment banker, helping company founders to develop, scale and exit from their businesses. He has been working with the clinic founders to transform their businesses from family business to a professionally operated company.

Enterprises are becoming leaders in the market while increasing their valuation in the eyes of professional investors. Dr. Allen has a doctorate from Creighton University School of Dentistry, an MBA in Investment Banking and Private Equity from University of Bedfordshire in Luton, United Kingdom. Dr. Allen is an international speaker in practice management, growth strategies and capital raising. He's the CEO of Dr. Allen Consulting Advisory Group, based in Las Vegas and Bangkok.

So what is the next step? 1. You can set up a consultation with me by requesting an appointment via email info info drallannazeri.com that is D R A L L E N N A z e r I.com 2. I would like you to subscribe to my channels on YouTube, Instagram and Facebook. 3. I really appreciate it if you can review this book on Amazon and four Just go for it. My contact information are as follows. You can connect with me at any time via WhatsApp on my Asia telephone number at area code 666-5782, 6542 or on my North America number. It's 1-702-605-0555. I'd like to thank you for your attention and I wish you the very best luck in 10xing the valuation of your company.