DC Strategy case study/franchising

Mobi Access Careers

Life Resolutions
2 Oct 2006

Article PDF ( 122KB)

Mary Magalotti, a registered psychologist, founded Life Resolutions in Melbourne during 2001. The practice offered a wide range of services to both individuals and couples, specialising in counselling. Within a few short months of opening, Mary hired a second psychologist to help with the increasing demand of clients. A second and third location quickly followed.

Realising the need to add business management skills to the company, Mary joined forces with Jodie Brenton. With a strong background in marketing, media, business development and management, Jodie added to the existing skill set to complete the foundation for Life Resolutions’ growth strategy.

The owners now aspire to raise the profile of counselling and psychology from its cottage industry image into a position of understanding and professionalism in the eyes of Australian’s, as well as expanding the business based on Life Resolutions’ style of counselling.

The Challenge

The value offering by Life Resolutions was successfully demonstrated by the growth in demand for their type of psychology services. In 5 years Life Resolutions has grown from a single practice into a multi-practice network. This presented significant opportunities and the objective of the owners is to expand the company to a level beyond the current cottage industry position. In taking on this objective they are faced with a number of challenges. These are to:

Develop the right business systems
Establish an appropriate corporate structure
Continue to maintain the quality and standard of service
Gain support from relevant industry bodies for the expansion plans
Develop the network growth strategy

Raising the profile of a cottage industry by injecting a level of professionalism

and business sophistication involves a series of challenges

The Solution

Life Resolutions engaged DC Strategy, a specialist at developing networks, to review the current position and determine the most suitable business format for expanding Life Resolutions nationally.

The project first focused on identifying the issues that would prevent the expansion of the business. Recommendations were then developed to address those issues, which included developing the business systems and structure, thereby supporting the growth plans of Life Resolutions.

A Business Associate’s Program was developed based on a full format franchise, to complement the existing company-owned practices, as part of Life Resolutions’ growth strategy. The program included developing the economics of the strategy, commercial policies, recruitment and operational processes, and the understanding of how to build a national network.

Business Associates Program: Provides the practicing psychologist with

a business system to support their growth

The Outcomes

Life Resolutions is now well positioned to leverage their existing skill set, business systems, and administrative processes to expand the network. The company can now consistently offer the level of quality service through a Business Associate’s Program specifically developed within the Life Resolutions business. Practicing psychologists joining the network, as a Business Associate, will have the support of a comprehensive business system allowing them to concentrate on providing quality services as part of the Life Resolutions network.

Life Resolutions is now growing a network by leveraging its strong reputation for professionalism, and the strong foundation of the business.

Challenging The Norm: Systemising a relationship based business without losing

the quality and level of service set by Life Resolutions