Wispots Waiting Room Advertising
NO DEAL
EPISODE SUMMARY
đź•“ Air Date: August 9, 2009
Asking For:
$1,200,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
WiSpots provides patient interaction centers in doctor’s offices that allow patients to use wireless web pads to fill out forms, check emails, surf the web, and more, while providing revenue opportunities through advertising.
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Background Story
Kevin Flannery, the founder of WiSpots, hails from Cary, North Carolina, and brings with him a wealth of experience in wireless technology, spanning nearly two decades. A former Marine, Kevin’s commitment to excellence and discipline from his military background permeates his entrepreneurial journey. His decision to pursue WiSpots was driven by a desire to revolutionize the waiting room experience, inspired by his own personal struggles and observations.
Having spent countless hours waiting in doctor’s offices, Kevin recognized a glaring need for improved patient engagement. Frustrated by the lack of stimulating activities and the antiquated methods of passing time, he envisioned a solution that would not only enhance the waiting experience but also provide value to both patients and healthcare providers. Drawing upon his expertise in wireless technology, Kevin conceived the idea of WiSpots—a patient interaction center equipped with wireless web pads that offer a myriad of activities, from filling out forms to surfing the web.
Kevin’s journey with WiSpots is deeply intertwined with his personal sacrifices and unwavering determination. Despite facing financial challenges and risking his own stability by mortgaging his home and leveraging personal savings, Kevin remains steadfast in his mission to bring WiSpots to fruition. His dedication to his family, rooted in his own upbringing in foster care, fuels his drive to create a better future for his loved ones and for patients nationwide. Through WiSpots, Kevin not only aims to disrupt the traditional waiting room paradigm but also to leave a lasting impact on healthcare delivery and patient satisfaction.
The Product
WiSpots introduces a groundbreaking solution to the mundane waiting room experience with its patient interaction centers. At the core of WiSpots are wireless web pads strategically placed within doctor’s offices, offering patients a diverse array of activities and services. Upon arrival, patients can seamlessly check in, fill out surveys, sign up for clinical trials, request educational information, surf the web, check emails, and play games—all from the comfort of their seats.
The WiSpots system is designed for ease of use, with intuitive interfaces that cater to patients of all ages and technological proficiencies. Each wireless web pad is equipped with a touchscreen interface, ensuring a user-friendly experience. After use, patients simply return the web pads to charging cradles, ready for the next visitor.
Healthcare providers benefit from WiSpots through enhanced patient engagement, streamlined administrative processes, and additional revenue streams. WiSpots generates income through targeted advertising from pharmaceutical companies and media buyers, transforming the waiting room into a lucrative advertising space.
The WiSpots system is available for purchase by healthcare facilities, with installation and maintenance provided by the company. Pricing for the WiSpots setup is approximately $9,000 per patient interaction center, offering healthcare providers a cost-effective solution to improve patient satisfaction and generate supplementary revenue.
How It Went
The company’s position before Shark Tank
WiSpots, despite its innovative concept, faces challenges in establishing a stable footing in the market. At the time of the pitch, the company’s health and position are precarious, with significant financial strain and a heavy reliance on personal investments from founder Kevin Flannery. While WiSpots has secured contracts with some doctors, its revenue model hinges on generating ad sales, posing uncertainties about its long-term sustainability. Partnerships and collaborations are crucial for WiSpots’ growth trajectory. The company seeks alliances with healthcare providers to install its patient interaction centers in doctor’s offices. However, the lack of established partnerships with major healthcare institutions may hinder its scalability and market penetration.
As for wholesalers, WiSpots’ business model primarily revolves around direct sales to healthcare facilities rather than traditional wholesale distribution channels. This approach allows for personalized service and tailored solutions but may limit the company’s reach compared to partnerships with wholesalers. WiSpots’ customers include healthcare providers such as doctor’s offices, clinics, and medical centers seeking to enhance patient experiences and augment revenue streams. However, the company’s ability to attract and retain customers may be challenged by competition and skepticism about the effectiveness of its advertising-driven revenue model.
In terms of funding, WiSpots relies heavily on Kevin Flannery’s personal investments, totaling over $550,000, including mortgages on his home and other personal savings. This significant financial commitment underscores Kevin’s dedication to the company but also highlights the risks associated with its current financial structure. Profitability remains a concern for WiSpots, given its reliance on future ad sales to offset operational costs. Without a proven track record of generating sustainable revenue streams, the company’s profitability outlook is uncertain.
Available capital may be limited, with potential implications for the company’s ability to invest in research and development, marketing, and expansion efforts. As for the company’s structure, WiSpots is likely organized as a privately held corporation, with Kevin Flannery serving as the President and CEO. The company may have a small team of employees handling various aspects of operations, including sales, marketing, product development, and customer support. However, the company’s organizational structure may evolve as it navigates challenges and seeks to capitalize on growth opportunities in the healthcare technology sector.
The Negotiations:
During the negotiations on Shark Tank, Kevin Flannery sought $1.2 million for a 10% equity stake in WiSpots. The Sharks immediately expressed skepticism about the company’s valuation and business model. Kevin passionately pitched WiSpots, emphasizing its potential to revolutionize the waiting room experience and generate revenue through targeted advertising. However, the Sharks raised concerns about the practicality of the product, questioning the necessity of WiSpots in an era dominated by personal devices like smartphones.
Despite Kevin’s compelling personal story and significant personal investments, all Sharks ultimately declined to invest in WiSpots. They cited concerns about the company’s financial viability, its reliance on future ad sales to offset operational costs, and the risks associated with Kevin’s personal sacrifices. Some Sharks, like Kevin O’Leary, advised Kevin to prioritize his family’s financial stability over further investments in WiSpots.
Robert Herjavec expressed empathy for Kevin’s situation, acknowledging his own immigrant background and the importance of prioritizing family financial security. However, he ultimately advised Kevin against risking his family’s well-being for the uncertain prospects of WiSpots. While Kevin’s dedication and passion for WiSpots were evident, the Sharks ultimately viewed the company as too risky an investment. Despite Kevin’s willingness to make personal sacrifices for his entrepreneurial dream, the Sharks unanimously concluded that WiSpots was not a viable investment opportunity.
