Free Dental Practice 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!
1.0 Executive Summary
The purpose of this business plan is to raise $165,000 for the development of a dental practice while showcasing the expected financials and operations over the next three years. The Dental Practice, Inc. (“the Company”) is a New York based corporation that will provide general and cosmetic dentistry to customers in its targeted market. The Company was founded in 2009 by Dr. John Doe.
1.1 Products and Services
Dr. Doe, through his practice will provide general and cosmetic dental services to patients within the targeted market. The Owner is a highly experienced dentist that can render a number of different general dental, endodontic, orthodontic, and cosmetic dental procedures for clients. The practice will receive insurance payments for a substantial portion of the services rendered by Dr. Doe. The Company will also recognize revenues from the sale of dental appliances prescribed by Dr. Doe. The third section of the business plan will further describe the services offered by the Dental Practice.
1.2 The Financing
Dr. Doe is seeking to raise $165,000 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
Dr. Doe’s mission is to become the recognized leader in its targeted market for general and cosmetic dental services.
1.4 Mangement Team
The Company was founded by Dr. John Doe. Dr. Doe has more than 10 years of experience as a practicing dentist. 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
Dr. 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. Dr. Doe intends to implement marketing campaigns that will effectively target individuals and families within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Dental Practice, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Dental Practice requires $165,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Dr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
Dr. John Doe owns 100% of the Dental Practice, Inc.
2.5 Exit Strategy
If the business is very successful, Dr. Doe may seek to sell the practice 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 Practice. Based on historical numbers, the business could fetch a sales premium of up to 2 to 3 times earnings.
3.0 Products and Services
Below is a description of the dental services offered by the Dental Practice.
3.1 Dental Services
The primary source of revenue for the business will be the dental services provided by Dr. Doe and his dental hygienist staff. These services will include general and cosmetic services such as root canals, general checkups, dental implants, filling cavities, and other services that are normally performed by general dentists. The practice will receive a bulk of its payments from co-pays and reimbursements from dental insurance companies.
3.2 Dental Appliances
The Company will also generate secondary revenues from the sale of dental appliances, dentures, retainers, and other orthodontic pieces prescribed by Dr. Doe to his patients. This is a very important revenue center for the business as the Company will generate substantial gross margins from each product sold. Large parts of this revenue stream may be directly provided by dental insurance companies.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the dental 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-2009, at which point the economy will begin a prolonged recovery period. However, Dental Practice operate with great economic stability as people will continue to require dental car despite deleterious changes in the general economy.
4.2 Industry Analysis
The US Economic Census indicates that there are approximately 135,000 dentists practicing in a private practice setting, with aggregate annual billing exceeding $55 billion dollars for each of the last five years. The growth of this industry has been higher than that of medical practices and the general economy as advances in cosmetic dentistry have allowed people to have “quick fixes” to their smiles. Gross receipts generated by the industry at large are expected to grow at an annual rate of four to five percent per year. The industry is expected to grow faster than that of the general economy as many baby boomers will require a greater level of dental care over the next ten to twenty years. Additionally, continued advances in dental care, orthodontic sciences, and cosmetic dental procedures will continue to drive more patients to dentists for cosmetic and elective dental procedures. Finally, finance companies have now begun engaging dentists to provide onsite financing for elective dental procedures, which substantially increases patients’ ability to afford cosmetic dental work.
4.3 Customer Profile
In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.
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 Practice 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 Practice.
5.1 Marketing Objectives
• Establish relationships with other dentists within the targeted market.
• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth.
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
5.2 Marketing Strategies
Dr. Doe intends on using a number of marketing strategies that will allow the Dental Practice to easily target men, women, and families within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public. The Dental Practice will also use an internet based strategy. This is very important as many people seeking local services, such as dentists, now the Internet to conduct their preliminary searches. Dr. Doe will register the Practice with online portals so that potential customers can easily reach the Practice business. The Company will also develop its own online website. The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the general and cosmetic that the Company is selling.
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 Practice will have an annual revenue growth rate of 16% per year.
• The Owner will acquire $165,000 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, the Company will not see a major decline in revenues. Dental services are in demand regardless of the general economic climate as they are an essential service for health. However, the practice may see a slight decline in cosmetic procedures, which are not covered by dental insurance.
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