Practice by Numbers · B2B · software for dental practices
Add analytics on top of the software dentists already use, not replace it
Became the wedge for the later all-in-one platform
Workedintegrations-marketplacespositioning-niche
What they did
Instead of replacing the dental PMS, sit on top of it: pull data from the PMS (Dentrix, Open Dental etc.), QuickBooks, phones and Google Analytics into business/revenue analytics that existed in medical but not dental. Integrate only with the five dominant PMS vendors, which cover the 70-80K target offices, rather than long-tail systems.
What happened
Became the wedge for the later all-in-one platform
“Business analytics, the practice IQ portion of it, the revenue analytics, be able to mine the data. This exists very heavily in the medical space. It just didn't in the dental space.”
“You could go integrate with somebody who has like a thousand locations. that doesn't really move the needle.”
Related topics
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More from this episode
- Practice by Numbers: Grow on dentist referrals, great support and a few trade showsARR ~$2M -> $12.5M from 2021 to 2025
- Practice by Numbers: Stay bootstrapped and grow 35-40% a year instead of buying revenue$12.5M ARR, 22-24% EBITDA, ~$1.5M free cash flow in 2025
- Practice by Numbers: Grow one tool into an all-in-one suite sold as packages~$12-13K per location a year on average; up to ~$18-19K
- Practice by Numbers: Call existing customers to switch their card payments to you for a cut~$190M processed of ~$2B possible; profitable but switching is hard
- Practice by Numbers: Charge a percentage of the practice's revenue instead of per-feature fees
- Practice by Numbers: Answer a real business owner's data questions by hand before building