Dental Financial Group

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Venture Plan · Draft v1 · CAD

Dental Financial Group

A one-stop insurance & wealth practice built for dental professionals — Alberta now, BC next. Warm distribution from your network, delivered by a licensed advisory practice.
Placeholder name. Illustrative and for discussion only — not legal, tax or financial advice. Commission figures are directional and must be validated with Jimmy’s carrier grids. Confirm structure with Alberta/BC counsel before papering.

The venture at a glance

Most dentists are high-earning, incorporated, and buy several overlapping financial products — yet they’re usually served by generalist advisors with no dental focus. Dental Financial Group pairs your dentist network and origination engine with Jimmy’s licensed advisory practice to become the default financial partner for dentists and their practices.

1,000–1,400
practising dentists in Alberta
~$230K
avg Alberta dentist income
8+
products per practice relationship
60 / 20 / 20
Jimmy / Dmitry / Slade per net $

What you bring

Warm introductions to Alberta dentists (and BC via Farooq), venues and hosting for education events, marketing, operations, finance and startup capital. Distribution is the scarce asset in insurance sales — you own it.

What Jimmy brings

The life & wealth licences, the Designated Representative role and compliance liability, carrier contracts, and the advisory work that converts and services clients. This is his new venture; his brother takes over his legacy book.

How it’s owned

Thirds each in a HoldCo; you and Slade hold two-thirds combined, so you control the business. Jimmy keeps sole authority over regulated decisions — a legal requirement, not a concession.

Strategic priority added: aggressively acquire students and new grads early — the cheapest, stickiest clients who become practice-owner clients for life. See the dedicated tab.

Why dentists are an unusually good niche

High income, incorporated

Alberta general dentists average roughly $200,000–$230,000 a year, and practice owners more. Most operate through a professional corporation, which opens tax-driven planning: corporate-owned life insurance, Individual Pension Plans, and retirement strategies a salaried client can’t use.

Overlapping, recurring needs

One dentist client can support disability, business-overhead, critical illness, life, group benefits for staff, and investment/retirement accounts. Several products per relationship, much of it recurring revenue that compounds.

They cluster and refer

Dentists belong to study clubs and associations and refer each other. One warm introduction leads to the next — the network compounds if you feed it with education and good service.

Underserved by generalists

A practice that genuinely understands practice economics, associate buy-ins, and practice purchases is differentiated from a generic advisor. That specialisation is the wedge.

The core advantage: in insurance, whoever controls qualified distribution captures most of the value. A captive, referring, high-income niche that you already have relationships with is exactly that.

Students & new grads — get them early Priority

The highest-leverage long-game move: capture dentists at dental school and in their first few years, before any other advisor does. They cost almost nothing to acquire, they’re loyal to whoever helped them first, and they mature into the six-figure-premium practice owners of the next decade.

Why it works

  • Cheapest acquisition. A campus lunch & learn reaches a whole cohort at once.
  • Stickiest clients. The advisor who set up their first disability policy usually keeps them for life.
  • Own-occ lock-in. Buying disability young locks low rates and future-purchase options — a real favour, easy to explain.
  • Lifetime value. Today’s new grad is tomorrow’s practice purchase, group plan, corp-owned life and IPP.

What we sell them now

  • Individual own-occupation disability (student/new-grad rates).
  • Starter term life, often tied to student-debt.
  • Critical illness at low young-age premiums.
  • Cash-flow & debt-paydown guidance; first RRSP/TFSA.

What they become

  • Practice-purchase financing & life insurance.
  • Business overhead expense + full disability.
  • Group benefits for their staff.
  • Corporate-owned life, IPP, wealth management.
Channels: partner with the dental school, student associations and new-grad study clubs; run CE-style sessions on debt, disability and incorporation; new-grad referral incentives; a simple “new dentist” onboarding package. Model this cohort explicitly on the Economics tab.

The offering

Core (launch)

Individual disability (own-occ)Business Overhead Expense Critical illnessTerm lifePermanent / corp-owned life Group benefits (staff)Practice-purchase & buy-sell

Wealth & adjacent (phase 2)

RRSP / TFSACorporate investment accountsIndividual Pension Plan (IPP) Group retirement / DPSPHealth Spending Account (HSA/PHSP) New-grad & associate packagesSuccession & estate planning

Illustrative economics per average full dentist client

Product lineAttachAvg premium / AUMFirst-yr commRecurring / yr
Total per average client

Illustrative CAD. Attach rates and commission levels are placeholders for Jimmy to validate against real carrier grids.

Go-to-market

The engine is warm distribution plus education. You open doors; Jimmy converts and services. Because leads arrive warm, acquisition cost is low and close rates are high versus cold prospecting.

Top of funnel

  • Lunch & learns and CE-style financial-education sessions at your offices and partner venues.
  • Campus & new-grad outreach (see Students & New Grads).
  • Warm introductions and referrals through your Alberta network; Farooq’s network in BC.

Conversion & service

  • Jimmy (and future advisors) run needs analysis, place coverage, and service the book.
  • Dental-specific playbooks: incorporation, associate buy-ins, practice purchase, staff benefits.
  • Annual reviews create natural cross-sell into wealth and group products.
Sequencing: go deep in Alberta first, prove the playbook, then replicate in BC once Jimmy is re-licensed and Farooq’s network is engaged.

Structure & ownership

Two entities keep the compliance line clean while letting you own and control the business.

LEAD SOURCES (your moat) Dmitry & Slade networkAlberta dentists — intros Farooq networkBC dentists (once BC-licensed) Students & new gradsCampus / CE funnel DENTIST CLIENTSAB now, BC next — warm leads LICENSED AGENCY (OpCo)Corporate Life & A&S agencyAIC (Alberta) + Insurance Council of BCDesignated Representative: JimmyOnly licensed advisors sell · E&O in agency name Carriers / MGAPay commissions to agency Wealth / securitiesRegistered dealer (RRSP/IPP)Referral capped 25% / ≤36 mo HOLDCO (ownership)Owns the agency & the bookJimmy 1/3 · Dmitry 1/3 · Slade 1/3Dmitry + Slade = 2/3 control commissions owns / controls
Why two entities: commissions must flow to the licensed agency and be paid to licensed persons for regulated work. Ownership, control and profit sit at the HoldCo level, where unlicensed owners are permitted. In Alberta, the agency’s Designated Representative (Jimmy) supervises; you and Slade own and control without needing a licence — you just can’t perform or be paid for regulated activity directly.

Compensation — two pools

Separate pay for work from ownership of the business. Each commission dollar splits into producer pay and the balance.

Gross commission100% Producer comp — 40%Jimmy / advisors, for the work(market rate to advise/sell) Balance — 60%less agency opex, then splitthree ways (1/3 each) Jimmy total ≈ 60%40% producer + 1/3 of balance Dmitry ≈ 20%1/3 of the balance Slade ≈ 20%1/3 of the balance
Where opex comes out (decided): agency operating costs come out of the 60% balance before the 3-way split, so all three absorb them pro-rata and Jimmy’s 40% producer pay stays intact. Because of that, his effective share sits slightly above 60% until volume grows and fixed costs shrink as a share of revenue.

Economics — live model

Adjust the levers; every number and chart updates. Full dentist clients and the new-grad cohort are modelled separately, then combined. Recurring revenue begins the year after a client is signed and stacks across cohorts.

Jimmy · Year 5
producer + 1/3 net
Dmitry · Year 5
1/3 of net
Slade · Year 5
1/3 of net
Gross commissions vs. agency net profit, Years 1–5.
CADYear 1Year 2Year 3Year 4Year 5

Illustrative only. Wealth AUM held flat and some renewal-servicing economics excluded, so the recurring side is conservative. Replace per-client assumptions with Jimmy’s real carrier grids before relying on outputs.

Term sheet Draft · non-binding

Ownership

HoldCo split one-third each: Jimmy, Dmitry, Slade. Dmitry + Slade = 66.6% combined control of ordinary business matters.

Control & governance

You and Slade control ordinary-course decisions. Reserved matters (sale, new equity, debt, changing the split, wind-up) need all three. Jimmy holds sole authority over regulated/compliance decisions as Designated Representative — you can’t outvote him on compliance.

Compensation

Pool A: 40% producer comp to the advisor doing the work. Pool B: 60% balance to OpCo, less opex, distributed 1/3 each. Net effect ≈ Jimmy 60% / Dmitry 20% / Slade 20% per dollar.

Vesting

Dmitry & Slade equity vests against origination delivered (leads / doors / events) over 24–36 months. Jimmy reverse-vests over ~4 years of service. Protects against front-loaded contribution.

The book

Clients and the book belong to OpCo/HoldCo, not individuals. Non-solicit / non-compete on exit; Jimmy’s is the most important given he holds the licence. New advisors hired by OpCo, paid from Pool A.

Exit & buy-sell

Right of first refusal among partners. Valuation on an agreed formula (multiple of trailing recurring income + AUM value). Drag/tag along. Key-person insurance on Jimmy owned by the business.

Open items to resolve

  • Farooq’s role — pure referrer (compliant referral fee), equity in a BC sub-entity, or full partner? Define before BC launch.
  • Jimmy’s brother — inside this venture, or only the legacy Sun Life book? Confirm no conflict / non-compete overlap.
  • Startup capital — amount, who funds it, debt or equity.
  • Conditions precedent — AIC corporate licence & DR appointment, E&O, carrier contracts, NI 31-103-compliant referral for wealth, and legal/tax/accounting sign-off.

Non-binding; records current intent as a basis for definitive agreements drafted by counsel. Not legal advice.

Risks & roadmap

Key risks & mitigations

RiskMitigation
Key-person (Jimmy) — licence & relationships run through him.Reverse-vesting; key-person insurance owned by the business; hire additional licensed advisors; book owned at entity level.
Front-loaded origination — lead flow could stop after launch.Vesting tied to origination delivered; origination credits that decay over time.
Regulatory — commission-sharing & referral rules are strict.Keep all regulated activity inside the licensed agency; counsel confirms structure in AB & BC before launch.
Conflicts — brother’s legacy book; Farooq’s undefined role.Define both in writing up front; non-compete / scope boundaries.
Partner alignment — three-way splits fail on unclear control/exit.Governance, buy-sell, and non-solicit terms agreed on day one.

Roadmap

Phase 1 · 0–6 mo

Legal/compliance sign-off; AIC corporate licence & DR appointment; carrier/MGA contracts; brand; first lunch & learns and campus outreach; core insurance live in Alberta.

Phase 2 · 6–18 mo

Add wealth/IPP via a registered dealer; deepen Alberta; land the student/new-grad pipeline; Jimmy re-licenses in BC and Farooq’s network engaged.

Phase 3 · 18–36 mo

Hire additional licensed advisors; scale recurring revenue; formalise BC operations; first cohort of new grads maturing into practice-owner clients.