3. Market & Strategy

Overview

Healthcare doesn't fail from lack of access — it fails from lack of daily follow-through. Local LifeCare fills this universal execution gap by ensuring people actually take medications, order meals, check vitals, and maintain the routines that keep them stable. This isn't a senior care problem; it's a human problem affecting every demographic, positioning us to capture a $125B market through employer benefits and population health platforms at software margins.

The Daily Execution Gap

People struggle with the simple, essential actions that support stability and wellbeing:

Medication Follow-Through

• Forgetting doses
• Falling out of routine
• Not noticing declining consistency
• Losing track of what was taken and when

Vital Awareness

• Forgetting to check basic vitals
• Missing early changes or signs
• Inconsistency with simple self-monitoring
• Not recognizing when shifts matter

Meal & Grocery Ordering

• Forgetting to order groceries
• Eating irregularly
• Skipping meals during busy weeks
• Defaulting to convenience food
• Lacking consistent nutrition routines

Routine Daily Support

• Losing track of recurring tasks
• Forgetting important reminders
• Difficulty staying organized
• Overwhelm and disorganization

Maintaining Structure & Healthy Routines

• Struggling to build stability
• Drifting out of routines
• Inconsistent daily habits
• Difficulty sustaining organization

Acting on Basic Recommendations

• Forgetting simple instructions
• Delaying preventive actions
• Losing follow-through between visits

Key Insight

These problems aren't clinical — they're behavioral and logistical.
No existing benefit, app, or care model solves them consistently at scale.
Local LifeCare provides the daily support system people have always needed.

Ideal Customer Profile (ICP)

Employer Groups

Employer Groups need low-cost, high-value benefits that improve population stability without adding operational burden.

Why they buy:

• $0.65 PEPM (Per Employee Per Month) fits any benefits budget
• Zero operational lift
• Immediate differentiation in employer RFP cycles
• Reduces downstream risks and volatility

Direct Primary Care (DPC) Networks

DPC clinics need members who arrive organized and consistent, not overwhelmed and unstable.

Why they buy:

• $0.65–$1.00 PMPM (Per Member Per Month) pricing fits their economics
• Members follow through
• Visits become more productive
• Reduces unnecessary follow-ups
• No staff or workflow burden

Market Size

Local LifeCare addresses preventable "between-visit" execution gaps that cost the U.S. healthcare system over $1.25 trillion annually:

• Non-optimized & non-adherent medication use: $528B
• Missed visits: $150B
• Illness-related productivity loss: $575B

This positions Local LifeCare in one of healthcare's largest addressable markets — the execution gap between clinical recommendations and daily follow-through.

Market Segment	Size	Description
TAM (Total Addressable Market)	$1.25T	Total cost of preventable execution gaps: medication non-adherence ($528B) + missed visits ($150B) + productivity loss ($575B)
SAM (Serviceable Addressable Market)	$125B	Health management, care-management solutions, medication-adherence tools and remote patient monitoring platforms that directly manage care between visits
SOM (Serviceable Obtainable Market)	$300M–$400M	Realistic 5-year capture: 10-15M reachable lives via established Employer Group/DPC partnerships at blended $2.30/life/month
Year 5 Revenue Target	$165.6M	~50% penetration of SOM: 6M lives under management through partner channels

Market Opportunity

Local LifeCare is positioned to scale to millions of covered lives within 5 years.

Five-Year Market Penetration

Aligned to our financial model, showing clear path to scale:

Year	Covered Lives	ARR	Key Drivers
Year 1	150,000	$1.2M	2-3 Employer Groups, 20-40 DPC clinics
Year 2	650,000	$8.3M	5-7 Employer Groups, 75-100 DPC clinics
Year 3	1.8M	$31.9M	National broker programs, early premium tier
Year 4	3.6M	$81.5M	Rapid national expansion via Employer Groups and benefit platforms
Year 5	6M	$165.6M	Category-standard benefit, mature premium tier (1% conversion)

Distribution Power

A single Employer Group can unlock 50,000–500,000 members.
Five to seven Employer Groups unlock millions.

Competitive Landscape

Local LifeCare is not competing with clinical services, RPM, eldercare, care management, telehealth, or hardware solutions.

Our actual competitors are fragmented wellness or reminder apps that:

• Do not integrate with employer benefits
• Have low engagement
• Have no human oversight
• Cannot scale to millions of members
• Only solve a narrow slice of daily support
• Lack distribution channels entirely

Why Local LifeCare Wins

Category	Others	Local LifeCare
Distribution	Direct-to-consumer apps	Zero-CAC Employer Group & DPC channels
Value Scope	Narrow tools	Full daily execution layer
Margins	Mixed	90% base tier
Engagement	Low	High (daily touchpoints)
Scalability	Limited	Population-scale
Category	App	Life Care Platform

Our Moat

Our moat is the ability to deliver daily stability, adherence, and awareness at population scale with software-level margins.

Go-to-Market Strategy

Phase 1 — Employer Group & DPC Distribution (0–24 Months)

Objective: Build a massive foundation of covered lives at $0.65 PEPM.

Channels:

• Regional and national Employer Groups
• DPC networks
• Employer consultants
• Benefits aggregators

Why it works:

• Zero CAC (Customer Acquisition Cost)
• Fast contracting
• No clinical workflows
• Low-friction benefit
• Category creation with immediate perceived value

Phase 2 — Premium Enhanced Support ($165/mo) (18–60 Months)

For members needing more structure, awareness, and guided follow-through.

Still:

• Automation-first
• Light human oversight
• Non-clinical
• Fully scalable

Conversion strategy:

• Target 1% of covered population for premium upgrade
• Natural progression from base tier when members need more support
• $165/month pricing captures high-value segment without clinical complexity

Financial impact:

• 9,000 premium subscribers by Year 3 (0.5% of 1.8M lives)
• 60,000+ by Year 5 (1% of 6M lives = $118.8M premium ARR)
• Premium revenue becomes majority contributor by Year 5

Strategic Positioning

We provide universal, everyday support that fills the most fundamental gap in the healthcare and benefits ecosystem:

The gap between intention and action.

Local LifeCare is built to scale to millions of people with:

• Software-level margins (90%)
• Zero-CAC distribution
• A premium layer that monetizes naturally over time

Key Takeaways

Strategic Advantages

✅ Universal Problem: The execution gap affects everyone, not just seniors
✅ Massive Market: $1.25T TAM from preventable execution gaps
✅ Zero-CAC Distribution: Employer Groups and DPCs provide instant access to millions
✅ Software Economics: 90% gross margins at population scale
✅ Clear Path to Scale: 150k → 6M lives in 5 years

Next Milestone: Sign first 2-3 Employer Groups and establish DPC network foundation to reach 150,000 covered lives and $1.2M ARR in Year 1. Local LifeCare has 200k lives under contract queued, employer PEPM Q1-Q2 cohort with progressive roll-out.