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August 24, 2000

Ten Fast Facts: TotalLivingChoices

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TotalLivingChoices

WHO:
A Web site founded last year by Ted Tanase.

WHAT:
Provides a data base and rating system for senior citizens seeking housing options.

WHERE:
Seattle.

Fast Fact #1: TLChoices soon will feature detailed information about thousands of facilities in 36 states.

Comment: The company initially covered only Washington facilities, but this summer it hired college faculty and students to collect facts and figures from other regions. Ultimately, TLChoices plans to serve the entire country, says Tanase, CEO.

Fast Fact #2: One of Tanase's first moves was to acquire another company.

Comment: SeniorCommunities.com of Black Diamond sold data on senior living facilities to developers. "I wasn't all that interested in their market, but I was interested in the fact they had information on 36,000 facilities," says Tanase. Using the SeniorCommunities list as a foundation, TLChoices is building a rich data base that enables users to conduct online searches for facilities that match their specific priorities such as price, medical care, diet and pets.

Fast Fact #3: Tanase is the former president of the Lanoga. Corp.

Comment: That company owns various building supply companies, including Lumbermen's. Tanase now chairs Lanoga's parent company Laird Norton. His interest in senior living options began when his sister suffered a stroke. The hospital said she could remain there, "but after three days it's $20,000 a month not covered by insurance," recalls Tanase. Needing to find a nursing home fast, Tanase scoured the Internet, but was frustrated by how fragmented  the information was. So he decided to create his own online resource to help others faced with his dilemma.  His board of advisors includes experts such as Dr. Christine Himes, director of geriatrics and long-term care at Group Health, and Nancy Hooyman, dean of the School of Social Work at the University of Washington. 

Fast Fact #4: TLChoices is free to users.

Comment: Senior living facilities are the company's main revenue source. Although TLChoices lists and rates each facility at no cost, facilities can request that TLChoices also host a Web page for them at $99 a month. For that price, facilities also get a toll-free telephone number plus access to marketing data TLChoices collects from users.

Fast Fact #5: Senior living facilities spend $18 billion a year on marketing.

Comment: Tanase believes TLChoices offers an effective and affordable way to help facilities "put heads on beds." So far, says Tanase, his company is running well ahead of revenue projections. What's more, Yahoo's weekly ratings recently listed TLChoices as the top Internet destination for people seeking help finding senior housing. "I'm really pumped up about this," says Tanase. "It feels really good to be doing this and I also know it's a good business proposition."

Fast Fact #6: TLChoices uses a five-star system to rate facilities.

Comment: The company does not actually inspect the institutions. Instead, the rating system relies on public records and on information submitted by the facilities themselves to measure overall quality, breadth of service and amenities.

Fast Fact #7: Look for an updated Web site in November.

Comment: The site will include a bulletin board where people can exchange comments about facilities. Tanase says TLChoices has rejected requests by facilities to screen the bulletin board. Likewise, TLChoices won't change a facility's rating just because it buys a Web page. However, it will happily tell a facility what it must do to raise its rating. "What we'll be able to do with the rating system is improve the quality of the industry itself," says Tanase.

Fast Fact #8: TLChoices also helps seniors who want to remain in their homes.

Comment: The Web site provides links to chore services, meals on wheels, home nurses and the like. TLChoices charges the businesses and organizations providing the services or products a fee for every sale they gain from the link. Since most people prefer to live at home as long as possible, Tanase suspects this eventually may account for the lion's share of his company's revenues.

Fast Fact #9: Tanase hopes to add a business-to business component within a year.

Comments: It's not his idea, but he likes it. Tanase says senior living facilities, especially small independents, have suggested TLChoices become their purchasing arm, leveraging their combined buying power to extract discounts from suppliers on everything from mattresses to medicine.

Fast Fact #10: TLChoices is in the process of raising $2 million.

Comment: With invitations to appear before two groups of angel investors, Tanase is optimistic. Tanase and his wife used their own money to launch the company last fall before securing $1.3 million from individual investors in February. After the current round of funding, Tanase intends to seek another $5 million in venture capital next spring, setting the stage for a possible IPO.



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