Masters of Scale - Rebuilding a broken industry from scratch (Modern Animal's Steven Eidelman) | Masters of Scale
Modern Animal, co-founded by Steven Idleman, is transforming the veterinary industry by addressing the inefficiencies and challenges faced by both veterinarians and pet owners. The company employs a membership model, charging an annual fee that eliminates exam fees, encouraging more frequent visits and early disease detection. This model is supported by a robust technology infrastructure, including a mobile app that provides 24/7 virtual care, access to medical records, and streamlined communication. The approach aims to reduce friction in accessing veterinary care, improve transparency, and enhance the overall experience for pet owners. Additionally, Modern Animal builds its own clinics, ensuring a consistent and high-quality environment for both staff and clients. The company also leverages AI to optimize operations and improve service delivery. This innovative approach has led to rapid growth, with Modern Animal expanding to multiple locations and employing hundreds of staff.
Key Points:
- Modern Animal uses a membership model to eliminate exam fees, encouraging more frequent vet visits and early disease detection.
- The company integrates technology, offering a mobile app for 24/7 virtual care, access to medical records, and appointment scheduling.
- Modern Animal builds its own clinics to maintain a consistent and high-quality environment, enhancing the experience for both staff and clients.
- AI is utilized to streamline operations, automate tasks, and improve service delivery, contributing to the company's efficiency.
- The approach addresses industry inefficiencies, aiming to improve transparency and reduce friction in accessing veterinary care.
Details:
1. 🔍 The Entrepreneurial Drive for Change
1.1. Inevitability of Demand
1.2. Introduction to Modern Animal
1.3. Need for Change in Veterinary Care
1.4. Core Issues in Veterinary Care
1.5. Entrepreneurial Motivation
1.6. Modern Animal's Growth
1.7. Lessons and Inspiration
2. 👨👦 From Family Business to Consulting Insights
- Steven witnessed his father's struggles as an immigrant entrepreneur, which initially led him to choose a stable consulting career over entrepreneurship.
- Consulting provided a broad perspective but lacked the specific passion that Steven later found essential for entrepreneurial success.
- The turning point in Steven's career came when he identified the pet care industry as a significant, underexplored market.
- Millennials' emotional and financial investment in pets, treating them as family, highlighted the industry's potential for growth.
- Steven and his co-founder leveraged personal experiences and market trends to innovate in the pet health sector.
- A pivotal moment was in 2012 when Steven saw an opportunity to integrate health tracking devices for pets, inspired by advancements in human health technologies.
- This entrepreneurial venture aimed to combine emerging trends in pet care and health technology, meeting the new demand for advanced pet health solutions.
3. 🐾 The Birth of Whistle and Market Insights
- Whistle was developed to connect pet owners with veterinarians, aiming to restore the veterinarian's role as the most trusted resource by capturing valuable data through wearable devices for pets.
- The device was intended to provide veterinarians with vital information to help diagnose pets, creating a direct link between veterinarians and pet owners while at home.
- The company faced challenges as providing more data did not necessarily aid veterinarians due to their already demanding workloads and diverse responsibilities, including medical care for multiple species.
- Veterinarians typically face a heavy workload, performing tasks ranging from wellness care to surgery, often negotiating care decisions with pet owners due to the high cost of veterinary services.
- Veterinary care costs are high because pet owners pay the full price, unlike human healthcare where costs are often shared with insurers or government programs, leading to negotiation challenges between veterinarians and pet owners.
- There is a lack of transparency in pricing, causing distrust between pet owners and veterinarians, as pet owners often find cheaper alternatives elsewhere.
4. 🤝 Transition to Mars and Revealing Industry Challenges
4.1. Initial Product Development and Strategic Pivot
4.2. Integration with Mars and Industry Insight
5. 🔧 Addressing Core Problems in Veterinary Care
- The veterinary care system is experiencing significant challenges, affecting both veterinarians and pet owners.
- Industry consolidation is occurring as private equity firms acquire small clinics, viewing veterinary care as a profitable venture due to 100% cash payments and emotional spending.
- Private equity firms often lack a deep understanding of veterinary care, which can lead to exploitation of the industry and its stakeholders.
- Integrating technology into veterinary care is challenging due to the industry's scale, hindering modernization efforts.
- Consolidation models promise to preserve legacy but primarily focus on economic optimization, often at the expense of quality care.
- The current state of veterinary care mirrors broader healthcare trends, with veterinary services lagging but following similar patterns.
6. 🚀 Envisioning Modern Animal's Innovative Model
- In 2018, Modern Animal recognized the need to update traditional veterinarian-owned practices, aiming to improve the veterinarian-client relationship through technology.
- The strategy involves creating a trusted brand from scratch, focusing on streamlining veterinary work to improve ease and consistency.
- Key initiatives include using technology to enhance transparency and accessibility for pet owners, making the veterinary process more user-friendly.
- The long-term vision requires substantial capital and resilience, backed by a former SpaceX engineer turned venture capitalist, showing confidence in the innovative approach.
- Specific examples of technology implementation include digital communication tools for better client interaction and data management systems to optimize operations.
7. 💡 Building a Trust-Centric Veterinary System
- The veterinary system is designed to bring humanity back to veterinary medicine by focusing on trust and strong relationships between pet owners and veterinarians, emphasizing transparency and communication.
- A key feature is the provision of 24/7 access to pet medical records and virtual care, enhancing pet owner engagement and continuity of care.
- The traditional model, where veterinarians own practices, is becoming less feasible due to high costs and private equity pressures, limiting opportunities for new veterinarians.
- Modern Animal's membership-based model, with a $200 annual fee that removes exam fees, increases visit frequency and encourages early disease detection, leading to better pet health outcomes.
- Members are observed to visit twice as often as non-members, which facilitates earlier disease detection and improved health outcomes.
- Clinics and technology systems are built from scratch, including electronic medical records and booking systems, to improve efficiency and streamline operations.
- AI is utilized to automate and summarize complex medical histories, assisting veterinarians in making quicker, more informed decisions.
- The network operates under a unified mission and values, promoting continuous improvement and the removal of outdated industry practices.
8. 📈 Scaling with Control and Consistency
8.1. Scaling Operations Effectively
8.2. Fostering Innovation and Adaptability
9. 📚 Wisdom and Insights for Entrepreneurs
- The most impactful book for the entrepreneur was Alan Watts' 'The Wisdom of Insecurity', which helped him during a low point while transitioning from a stable career to entrepreneurship.
- The book highlights that anxiety stems from the uncertainty of moving from point A to point B, and that rigid plans often fail, emphasizing the importance of embracing the journey and uncertainties.
- Entrepreneurs should learn to appreciate the journey, even when it involves pain and challenges, as these experiences lead to personal growth.
- The entrepreneur advises against seeking direct answers from others, advocating for gathering wisdom and making accountable decisions independently.
- The mantra 'seek wisdom, not advice' is emphasized as a guiding principle for making informed and responsible choices.