Free Dental Laboratory Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
It should be noted that there is no special software required to use these
templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
- All plans are updated for 2013!
1.0 Executive Summary
The purpose of this business plan is to raise $100,000 for the development of a dental laboratory while showcasing the expected financials and operations over the next three years. The Dental Laboratory, Inc. (“the Company”) is a New York based corporation that will provide the production of dental appliances (as ordered by dental practitioners) in its targeted market. The Company was founded by John Doe.
1.1 Products and Services
As stated above, the Dental Laboratory will specialize in the outsourced production of crowns, moldings, dentures, retainers, and other dental appliances required for dental treatments. The Company anticipates that it will earn gross margins of 70% on each dollar of revenue generated through the sale of dental appliances. Prior to the onset of operations, Mr. Doe intends to aggressively develop ongoing referral relationships with dentists, orthodontist, endodontists, and prosthodontists that require ongoing production of dental appliances. The marketing strategies that the Dental Laboratory will use will be discussed in the seventh section of the business plan. The third section of the business plan will further describe the services offered by the Dental Laboratory.
1.2 The Financing
Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.
1.3 Mission Statement
Mr. Doe’s mission is to become recognized as an outstanding regional supplier of dental appliances to dental practitioners while complying with all laws regarding the production and distribution of dental products.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the dental lab technician industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively general dentists, endodontists, prosthodontists, and periodontists within the Company’s targeted market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Dental Laboratory, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Dental Laboratory requires $100,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Dental Laboratory, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Dental Laboratory. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Products and Services
Below is a description of the dental appliance production services offered by the Dental Laboratory.
3.1 Production of Dental Appliances
As discussed in the executive summary, the Company will produce a number of customized dental appliances as ordered by dental practitioners that are clients of the Dental Laboratory. These appliances include, but are not limited to: • Dentures • Retainers • Crowns • Moldings • Dental Veneers • Dental Implants Mr. Doe expects that the business will earn gross margins of 70% of each dollar of revenue generated from the sale of these appliances to dental practitioners. An additional 10% of revenue will come from the distribution fees charged for shipping and handing of the manufactured dental products, on which the Company will earn contribute margins of 20%.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the dental laboratory industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2010 t which point the economy will begin a prolonged recovery period. However, dental laboratories operate with a strong degree of economic immunity for two reasons. First, people will continue to require quality dental care regardless of the state of the general economy. Secondly, a substantial number of people have dental insurance which covers the cost of dental appliances (i.e. very low out of pocket costs for dental appliances). As such, the Dental Laboratory should have no issues with top line income despite the current downward economic trend.
4.2 Industry Analysis
Within the United States that are approximately 7,200 dental laboratories that produce dental appliances for dental practitioners. In each of the last five years, the industry has generated aggregate sales in excess of $3.3 billion while providing jobs to more than 50,000 people. Payrolls in each of the last five years have exceeded $1.5 billion. The industry is expected to grow at a rate that is faster than that of the general economy as more people of the “Baby Boomer” generation will require specialized dental treatments as they enter their more mature years. Additionally, the demand for cosmetic dentistry has been on the rise over the last ten years as the wealth of the average American has grown. As such, Dental Laboratory, Inc. is in a strong position to capitalize on this demand during the course of its business operations.
4.3 Customer Profile
The average client of the Dental Laboratory will be a general dentist, cosmetic dentists, orthodontist, periodontist, or prosthodontist that is seeking to have an outsourced firm produce the dental appliances used in conjunction with their dental treatments. The field of dentistry is a wide and varied field with more than 135,000 practitioners in the United States. As such, it is hard to categorize the “average client” of the business.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
The Dental Laboratory intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Dental Laboratory.
5.1 Marketing Objectives
• Develop word of mouth referrals once the Company begins operations.
• Establish strong ongoing purchase order relationships on a regional basis with general dentists, prosthodontists, orthodontists, periodontists, and cosmetic dentists that will use the Company’s dental lab services on a regular basis.
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
5.2 Marketing Strategies
Management intends on using a number of marketing strategies that will ensure that the business can develop ongoing relationships with dental professionals that will regularly call on the Dental Laboratory for the production of dental appliances on behalf of their patients. As discussed earlier, Mr. Doe intends to directly contact dentists and dental specialists to offer incentive discounts and better service arrangements so that the business can develop a roster of clients immediately. As Mr. Doe has been in the industry for some time, he will call on his list of current professional contacts to initially develop these client relationships. The Company will also develop a website that showcases the Dental Laboratory’s operations, relevant contact information, and how a dentist/dental specialist can become a client of the business. To a limited extent, the website will also showcasing basic pricing of dental appliances produced by the business. The Dental Laboratory will also maintain print advertisements in state based and national level newsletters and periodicals targeted at the 135,000 practicing dentists and specialists within the United States.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• The Dental Laboratory will have an annual revenue growth rate of 16% per year.
• The Owner will acquire $100,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
In the event of an economic downturn, Management does not expect a decline it its revenues. People will continue to require specialized dental treatments regardless of the overall economic climate. Additionally, many dental insurance companies cover the cost of dental treatments that require dental appliances, and the out of pocket costs for a dental patient in regards to their dental appliance needs are minimal.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis