Wright’s Dental Laboratory, located in a custom designed, 8,000 square foot facility using the latest, state-of-the-art restoration production systems and computerized case tracking, is owned by Charles and David Wright. The company will operate as a general partnership with both Charles and David performing management functions.
Wright’s Dental Laboratory offers the following products:
Porcelain to metal | Brand A inlay/onlay | Brand B inlay |
Porcelain veneers | Brand A bond to metal | Brand B model 2 |
Product C | ||
Product D | ||
Product E | ||
Product F | ||
Product F model 2 | ||
Full dentures | Brand G | |
Partial dentures | Hard splint (night guard) | |
Night guards | Implant stent | |
Relines | Sports guard | |
Laser welded repairs | Surgical template | |
Soft liners | Bleaching fluoride trays | |
Brand H |
The LochJaw tri-county area has over 300 dentists. Next to salaries and benefits for associates, assistants and hygienists, dental laboratory fees are a dentist’s greatest expense.
Currently, there are seven dental labs in LochJaw. Of the seven, only four are full service. Most importantly, a new lab has not opened in the LochJaw area in the past six years. Over the past six years, the area’s population has grown tremendously. The current labs have not invested in the newest technology. Wright’s Dental Laboratory will set a new standard for products and services.
No where is this more important than in the dental care for children and seniors. The new materials and techniques creates more options for dentists to serve their young and senior patients. Wright’s Dental Laboratory is investing heavily in these new techniques and materials.
Wright’s Dental Laboratory will focus on dental professionals who work in the following three areas:
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
Dental Services for Children | 10% | 60 | 66 | 73 | 80 | 88 | 10.05% |
Dental Services for Seniors | 15% | 40 | 46 | 53 | 61 | 70 | 15.02% |
General Dental Services | 13% | 200 | 226 | 255 | 288 | 325 | 12.91% |
Total | 12.64% | 300 | 338 | 381 | 429 | 483 | 12.64% |
Wright’s Dental Laboratory will aggressively pursue dental professionals in the LochJaw area by offering discounted services to encourage them to try the new lab. Charles Wright will manage the marketing campaign to promote the business. He has extensive contacts in the dental community that will be critical to the building of the business.
The sales strategy will focus on offering dental professionals the new techniques and equipment that will assist them in serving their speciality populations (i.e., children and seniors).
For the first month there will be no sales, as the company will be establishing its operations. We anticipate that sales will grow quickly during the second and third month of operation.
The following is the sales forecast for three years.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Dental Products | $615,000 | $750,000 | $880,000 |
Other | $0 | $0 | $0 |
Total Sales | $615,000 | $750,000 | $880,000 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Dental Products | $221,000 | $269,250 | $315,920 |
Other | $0 | $0 | $0 |
Subtotal Direct Cost of Sales | $221,000 | $269,250 | $315,920 |
The management team for Wright’s Dental Laboratory will be Charles and David Wright. Charles will be responsible for marketing, sales, customer relations. David will be responsible for managing the dental lab operation.
The personnel plan for Wright’s Dental Laboratory is as follows:
Part way through the second year of operation it is estimated that the Lab will have to hire an additional customer service operator.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Marketing/Sales Mgr | $48,000 | $50,000 | $52,000 |
Lab Mgr | $48,000 | $50,000 | $52,000 |
4 Lab Techs | $144,000 | $152,000 | $160,000 |
Customer Service | $24,000 | $38,000 | $60,000 |
Total People | 7 | 7 | 7 |
Total Payroll | $264,000 | $290,000 | $324,000 |
The following is the financial plan for Wright’s Dental Laboratory.
Each of the two Wright’s, David and Charles, will invest in the venture. An additional long-term loan will be secured from the SBA, or local lenders, with an interest rate not more that 10%.
Start-up Funding | |
Start-up Expenses to Fund | $76,300 |
Start-up Assets to Fund | $173,700 |
Total Funding Required | $250,000 |
Assets | |
Non-cash Assets from Start-up | $102,000 |
Cash Requirements from Start-up | $71,700 |
Additional Cash Raised | $0 |
Cash Balance on Starting Date | $71,700 |
Total Assets | $173,700 |
Liabilities and Capital | |
Liabilities | |
Current Borrowing | $0 |
Long-term Liabilities | $100,000 |
Accounts Payable (Outstanding Bills) | $0 |
Other Current Liabilities (interest-free) | $0 |
Total Liabilities | $100,000 |
Capital | |
Planned Investment | |
Charles | $75,000 |
David | $75,000 |
Additional Investment Requirement | $0 |
Total Planned Investment | $150,000 |
Loss at Start-up (Start-up Expenses) | ($76,300) |
Total Capital | $73,700 |
Total Capital and Liabilities | $173,700 |
Total Funding | $250,000 |
The following table and chart display the monthly break-even point.
Break-even Analysis | |
Monthly Revenue Break-even | $49,013 |
Assumptions: | |
Average Percent Variable Cost | 36% |
Estimated Monthly Fixed Cost | $31,400 |
The following table and charts will highlight projected profit and loss for the next three years.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $615,000 | $750,000 | $880,000 |
Direct Cost of Sales | $221,000 | $269,250 | $315,920 |
Other Production Expenses | $0 | $0 | $0 |
Total Cost of Sales | $221,000 | $269,250 | $315,920 |
Gross Margin | $394,000 | $480,750 | $564,080 |
Gross Margin % | 64.07% | 64.10% | 64.10% |
Expenses | |||
Payroll | $264,000 | $290,000 | $324,000 |
Sales and Marketing and Other Expenses | $24,000 | $30,000 | $35,000 |
Depreciation | $12,000 | $12,000 | $12,000 |
Leased Equipment | $0 | $0 | $0 |
Utilities | $6,000 | $6,000 | $6,000 |
Insurance | $7,200 | $7,200 | $7,200 |
Rent | $24,000 | $24,000 | $24,000 |
Payroll Taxes | $39,600 | $43,500 | $48,600 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $376,800 | $412,700 | $456,800 |
Profit Before Interest and Taxes | $17,200 | $68,050 | $107,280 |
EBITDA | $29,200 | $80,050 | $119,280 |
Interest Expense | $12,463 | $12,520 | $11,777 |
Taxes Incurred | $1,421 | $16,659 | $28,651 |
Net Profit | $3,316 | $38,871 | $66,852 |
Net Profit/Sales | 0.54% | 5.18% | 7.60% |
The following table and chart highlight the projected cash flow for three years. It will be necessary for each Wright brother to loan the company additional funds mid-year.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $153,750 | $187,500 | $220,000 |
Cash from Receivables | $343,250 | $536,598 | $635,057 |
Subtotal Cash from Operations | $497,000 | $724,098 | $855,057 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $40,000 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $537,000 | $724,098 | $855,057 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $264,000 | $290,000 | $324,000 |
Bill Payments | $314,168 | $418,284 | $475,335 |
Subtotal Spent on Operations | $578,168 | $708,284 | $799,335 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $9,864 | $9,864 | $5,000 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $588,032 | $718,148 | $804,335 |
Net Cash Flow | ($51,032) | $5,950 | $50,722 |
Cash Balance | $20,668 | $26,618 | $77,340 |
The following table highlights the projected balance sheet for three years.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $20,668 | $26,618 | $77,340 |
Accounts Receivable | $118,000 | $143,902 | $168,846 |
Inventory | $30,800 | $31,307 | $35,377 |
Other Current Assets | $12,000 | $12,000 | $12,000 |
Total Current Assets | $181,468 | $213,827 | $293,562 |
Long-term Assets | |||
Long-term Assets | $80,000 | $80,000 | $80,000 |
Accumulated Depreciation | $12,000 | $24,000 | $36,000 |
Total Long-term Assets | $68,000 | $56,000 | $44,000 |
Total Assets | $249,468 | $269,827 | $337,562 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $42,317 | $33,669 | $39,552 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $42,317 | $33,669 | $39,552 |
Long-term Liabilities | $130,136 | $120,272 | $115,272 |
Total Liabilities | $172,453 | $153,941 | $154,824 |
Paid-in Capital | $150,000 | $150,000 | $150,000 |
Retained Earnings | ($76,300) | ($72,984) | ($34,114) |
Earnings | $3,316 | $38,871 | $66,852 |
Total Capital | $77,016 | $115,886 | $182,738 |
Total Liabilities and Capital | $249,468 | $269,827 | $337,562 |
Net Worth | $77,016 | $115,886 | $182,738 |
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 8072, Dental Laboratories, are shown for comparison.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | n.a. | 21.95% | 17.33% | 6.60% |
Percent of Total Assets | ||||
Accounts Receivable | 47.30% | 53.33% | 50.02% | 15.10% |
Inventory | 12.35% | 11.60% | 10.48% | 4.50% |
Other Current Assets | 4.81% | 4.45% | 3.55% | 56.00% |
Total Current Assets | 72.74% | 79.25% | 86.97% | 75.60% |
Long-term Assets | 27.26% | 20.75% | 13.03% | 24.40% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 16.96% | 12.48% | 11.72% | 34.20% |
Long-term Liabilities | 52.17% | 44.57% | 34.15% | 18.20% |
Total Liabilities | 69.13% | 57.05% | 45.87% | 52.40% |
Net Worth | 30.87% | 42.95% | 54.13% | 47.60% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 64.07% | 64.10% | 64.10% | 0.00% |
Selling, General & Administrative Expenses | 63.37% | 58.73% | 56.34% | 70.40% |
Advertising Expenses | 3.90% | 4.00% | 3.98% | 0.20% |
Profit Before Interest and Taxes | 2.80% | 9.07% | 12.19% | 10.10% |
Main Ratios | ||||
Current | 4.29 | 6.35 | 7.42 | 1.81 |
Quick | 3.56 | 5.42 | 6.53 | 1.25 |
Total Debt to Total Assets | 69.13% | 57.05% | 45.87% | 52.40% |
Pre-tax Return on Net Worth | 6.15% | 47.92% | 52.26% | 18.10% |
Pre-tax Return on Assets | 1.90% | 20.58% | 28.29% | 38.00% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 0.54% | 5.18% | 7.60% | n.a |
Return on Equity | 4.31% | 33.54% | 36.58% | n.a |
Activity Ratios | ||||
Accounts Receivable Turnover | 3.91 | 3.91 | 3.91 | n.a |
Collection Days | 56 | 85 | 86 | n.a |
Inventory Turnover | 10.48 | 8.67 | 9.48 | n.a |
Accounts Payable Turnover | 8.42 | 12.17 | 12.17 | n.a |
Payment Days | 28 | 34 | 28 | n.a |
Total Asset Turnover | 2.47 | 2.78 | 2.61 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 2.24 | 1.33 | 0.85 | n.a |
Current Liab. to Liab. | 0.25 | 0.22 | 0.26 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $139,152 | $180,158 | $254,010 | n.a |
Interest Coverage | 1.38 | 5.44 | 9.11 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.41 | 0.36 | 0.38 | n.a |
Current Debt/Total Assets | 17% | 12% | 12% | n.a |
Acid Test | 0.77 | 1.15 | 2.26 | n.a |
Sales/Net Worth | 7.99 | 6.47 | 4.82 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | |||||||||||||
Dental Products | 0% | $0 | $30,000 | $30,000 | $40,000 | $40,000 | $50,000 | $60,000 | $65,000 | $70,000 | $70,000 | $80,000 | $80,000 |
Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Sales | $0 | $30,000 | $30,000 | $40,000 | $40,000 | $50,000 | $60,000 | $65,000 | $70,000 | $70,000 | $80,000 | $80,000 | |
Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Dental Products | $0 | $12,000 | $12,000 | $15,000 | $15,000 | $18,000 | $21,000 | $22,000 | $25,000 | $25,000 | $28,000 | $28,000 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Direct Cost of Sales | $0 | $12,000 | $12,000 | $15,000 | $15,000 | $18,000 | $21,000 | $22,000 | $25,000 | $25,000 | $28,000 | $28,000 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Marketing/Sales Mgr | 0% | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 |
Lab Mgr | 0% | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 |
4 Lab Techs | 0% | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 |
Customer Service | 0% | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 |
Total People | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | |
Total Payroll | $22,000 | $22,000 | $22,000 | $22,000 | $22,000 | $22,000 | $22,000 | $22,000 | $22,000 | $22,000 | $22,000 | $22,000 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Tax Rate | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $0 | $30,000 | $30,000 | $40,000 | $40,000 | $50,000 | $60,000 | $65,000 | $70,000 | $70,000 | $80,000 | $80,000 | |
Direct Cost of Sales | $0 | $12,000 | $12,000 | $15,000 | $15,000 | $18,000 | $21,000 | $22,000 | $25,000 | $25,000 | $28,000 | $28,000 | |
Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $0 | $12,000 | $12,000 | $15,000 | $15,000 | $18,000 | $21,000 | $22,000 | $25,000 | $25,000 | $28,000 | $28,000 | |
Gross Margin | $0 | $18,000 | $18,000 | $25,000 | $25,000 | $32,000 | $39,000 | $43,000 | $45,000 | $45,000 | $52,000 | $52,000 | |
Gross Margin % | 0.00% | 60.00% | 60.00% | 62.50% | 62.50% | 64.00% | 65.00% | 66.15% | 64.29% | 64.29% | 65.00% | 65.00% | |
Expenses | |||||||||||||
Payroll | $22,000 | $22,000 | $22,000 | $22,000 | $22,000 | $22,000 | $22,000 | $22,000 | $22,000 | $22,000 | $22,000 | $22,000 | |
Sales and Marketing and Other Expenses | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | |
Depreciation | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | |
Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Utilities | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
Insurance | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | |
Rent | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | |
Payroll Taxes | 15% | $3,300 | $3,300 | $3,300 | $3,300 | $3,300 | $3,300 | $3,300 | $3,300 | $3,300 | $3,300 | $3,300 | $3,300 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $31,400 | $31,400 | $31,400 | $31,400 | $31,400 | $31,400 | $31,400 | $31,400 | $31,400 | $31,400 | $31,400 | $31,400 | |
Profit Before Interest and Taxes | ($31,400) | ($13,400) | ($13,400) | ($6,400) | ($6,400) | $600 | $7,600 | $11,600 | $13,600 | $13,600 | $20,600 | $20,600 | |
EBITDA | ($30,400) | ($12,400) | ($12,400) | ($5,400) | ($5,400) | $1,600 | $8,600 | $12,600 | $14,600 | $14,600 | $21,600 | $21,600 | |
Interest Expense | $833 | $833 | $833 | $1,000 | $1,156 | $1,146 | $1,136 | $1,126 | $1,115 | $1,105 | $1,095 | $1,084 | |
Taxes Incurred | ($9,670) | ($4,270) | ($4,270) | ($2,220) | ($2,267) | ($164) | $1,939 | $3,142 | $3,745 | $3,748 | $5,852 | $5,855 | |
Net Profit | ($22,563) | ($9,963) | ($9,963) | ($5,180) | ($5,289) | ($382) | $4,525 | $7,332 | $8,739 | $8,746 | $13,654 | $13,661 | |
Net Profit/Sales | 0.00% | -33.21% | -33.21% | -12.95% | -13.22% | -0.76% | 7.54% | 11.28% | 12.48% | 12.49% | 17.07% | 17.08% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $0 | $7,500 | $7,500 | $10,000 | $10,000 | $12,500 | $15,000 | $16,250 | $17,500 | $17,500 | $20,000 | $20,000 | |
Cash from Receivables | $0 | $0 | $750 | $22,500 | $22,750 | $30,000 | $30,250 | $37,750 | $45,125 | $48,875 | $52,500 | $52,750 | |
Subtotal Cash from Operations | $0 | $7,500 | $8,250 | $32,500 | $32,750 | $42,500 | $45,250 | $54,000 | $62,625 | $66,375 | $72,500 | $72,750 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $20,000 | $20,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $0 | $7,500 | $8,250 | $52,500 | $52,750 | $42,500 | $45,250 | $54,000 | $62,625 | $66,375 | $72,500 | $72,750 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $22,000 | $22,000 | $22,000 | $22,000 | $22,000 | $22,000 | $22,000 | $22,000 | $22,000 | $22,000 | $22,000 | $22,000 | |
Bill Payments | ($437) | $250 | $20,057 | $17,247 | $25,374 | $22,569 | $30,852 | $35,775 | $35,961 | $41,450 | $38,533 | $46,536 | |
Subtotal Spent on Operations | $21,563 | $22,250 | $42,057 | $39,247 | $47,374 | $44,569 | $52,852 | $57,775 | $57,961 | $63,450 | $60,533 | $68,536 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $1,233 | $1,233 | $1,233 | $1,233 | $1,233 | $1,233 | $1,233 | $1,233 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $21,563 | $22,250 | $42,057 | $39,247 | $48,607 | $45,802 | $54,085 | $59,008 | $59,194 | $64,683 | $61,766 | $69,769 | |
Net Cash Flow | ($21,563) | ($14,750) | ($33,807) | $13,253 | $4,143 | ($3,302) | ($8,835) | ($5,008) | $3,431 | $1,692 | $10,734 | $2,981 | |
Cash Balance | $50,137 | $35,387 | $1,580 | $14,833 | $18,976 | $15,674 | $6,839 | $1,831 | $5,262 | $6,954 | $17,687 | $20,668 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $71,700 | $50,137 | $35,387 | $1,580 | $14,833 | $18,976 | $15,674 | $6,839 | $1,831 | $5,262 | $6,954 | $17,687 | $20,668 |
Accounts Receivable | $0 | $0 | $22,500 | $44,250 | $51,750 | $59,000 | $66,500 | $81,250 | $92,250 | $99,625 | $103,250 | $110,750 | $118,000 |
Inventory | $10,000 | $10,000 | $13,200 | $13,200 | $16,500 | $16,500 | $19,800 | $23,100 | $24,200 | $27,500 | $27,500 | $30,800 | $30,800 |
Other Current Assets | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 |
Total Current Assets | $93,700 | $72,137 | $83,087 | $71,030 | $95,083 | $106,476 | $113,974 | $123,189 | $130,281 | $144,387 | $149,704 | $171,237 | $181,468 |
Long-term Assets | |||||||||||||
Long-term Assets | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 |
Accumulated Depreciation | $0 | $1,000 | $2,000 | $3,000 | $4,000 | $5,000 | $6,000 | $7,000 | $8,000 | $9,000 | $10,000 | $11,000 | $12,000 |
Total Long-term Assets | $80,000 | $79,000 | $78,000 | $77,000 | $76,000 | $75,000 | $74,000 | $73,000 | $72,000 | $71,000 | $70,000 | $69,000 | $68,000 |
Total Assets | $173,700 | $151,137 | $161,087 | $148,030 | $171,083 | $181,476 | $187,974 | $196,189 | $202,281 | $215,387 | $219,704 | $240,237 | $249,468 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $0 | $0 | $19,913 | $16,820 | $25,053 | $21,969 | $30,082 | $35,005 | $34,998 | $40,597 | $37,401 | $45,514 | $42,317 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $0 | $0 | $19,913 | $16,820 | $25,053 | $21,969 | $30,082 | $35,005 | $34,998 | $40,597 | $37,401 | $45,514 | $42,317 |
Long-term Liabilities | $100,000 | $100,000 | $100,000 | $100,000 | $120,000 | $138,767 | $137,534 | $136,301 | $135,068 | $133,835 | $132,602 | $131,369 | $130,136 |
Total Liabilities | $100,000 | $100,000 | $119,913 | $116,820 | $145,053 | $160,736 | $167,616 | $171,306 | $170,066 | $174,432 | $170,003 | $176,883 | $172,453 |
Paid-in Capital | $150,000 | $150,000 | $150,000 | $150,000 | $150,000 | $150,000 | $150,000 | $150,000 | $150,000 | $150,000 | $150,000 | $150,000 | $150,000 |
Retained Earnings | ($76,300) | ($76,300) | ($76,300) | ($76,300) | ($76,300) | ($76,300) | ($76,300) | ($76,300) | ($76,300) | ($76,300) | ($76,300) | ($76,300) | ($76,300) |
Earnings | $0 | ($22,563) | ($32,527) | ($42,490) | ($47,670) | ($52,959) | ($53,342) | ($48,817) | ($41,485) | ($32,745) | ($23,999) | ($10,345) | $3,316 |
Total Capital | $73,700 | $51,137 | $41,173 | $31,210 | $26,030 | $20,741 | $20,358 | $24,883 | $32,215 | $40,955 | $49,701 | $63,355 | $77,016 |
Total Liabilities and Capital | $173,700 | $151,137 | $161,087 | $148,030 | $171,083 | $181,476 | $187,974 | $196,189 | $202,281 | $215,387 | $219,704 | $240,237 | $249,468 |
Net Worth | $73,700 | $51,137 | $41,173 | $31,210 | $26,030 | $20,741 | $20,358 | $24,883 | $32,215 | $40,955 | $49,701 | $63,355 | $77,016 |
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Published May.04, 2018
Updated Apr.22, 2024
By: Jakub Babkins
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Table of Content
Do you want to start a dental office business? If you are a dentist and want to earn lots of money while also serving the society, you should definitely start this business. But before you consider how to start a dentistry business , you must prepare a comprehensive business plan for it. The business plan will help you in acquiring the license for your business from the state and will also help you take important decisions for the startup. In case you don’t know how to write a dentistry business plan, you can take help from this sample business plan of a dentistry business startup named ‘Spear’s Dental Clinic’.
2.1 the dental business.
Spear’s Dental Clinic will be a licensed, registered and insured dental consultancy clinic which will provide all sorts of dental consultancy and treatment services to its customers. The business will be located at a 10 minutes’ drive from the center of Boston and the location is ideal to open dental office .
Spear’s Dental Clinic is a sole proprietorship owned by Dr. John Spear, an experienced dentist from Boston. The company’s main management framework comprises of sales executives, dentists, and nurses.
Our customers include people from all age groups such as children, teens, adults and senior citizens but children and teens will form the bulk of our customers since they are most likely to have dental problems.
Our business targets to be achieved within next three years are as follows:
3.1 company owner.
Spear’s Dental Clinic is a sole proprietorship owned by Dr. John Spear. Dr. Spear is a famous dentist who has been practicing in Boston for more than 6 years.
Dr. Spear decided for dentistry start up to make profits in this industry while also serving the community.
Spear’s Dental Clinic will be started in a leased location in Boston which was previously used as a small restaurant. The facility requires a lot of work so that it can be converted into a dental office and the company has already hired William Sons Contractors for this job. In addition to the usual inventory, the procured equipment will include high- and low- speed drills, an ultrasonic scaler (for removing prophylaxis), curing and placing instrument, dental seats and lights, x-ray film, filling material and the front desk equipment. The financial experts have forecasted following costs for the startup:
The detailed startup requirements are given below:
Legal | $55,300 | |
Consultants | $0 | |
Insurance | $32,750 | |
Rent | $32,500 | |
Research and Development | $32,750 | |
Expensed Equipment | $32,750 | |
Signs | $1,250 | |
TOTAL START-UP EXPENSES | $187,300 | |
Start-up Assets | $220,875 | |
Cash Required | $332,500 | |
Start-up Inventory | $32,625 | |
Other Current Assets | $232,500 | |
Long-term Assets | $235,000 | |
TOTAL ASSETS | $121,875 | |
Total Requirements | $245,000 | |
START-UP FUNDING | $273,125 | |
Start-up Expenses to Fund | $151,875 | |
Start-up Assets to Fund | $123,000 | |
TOTAL FUNDING REQUIRED | $0 | |
Assets | $23,125 | |
Non-cash Assets from Start-up | $18,750 | |
Cash Requirements from Start-up | $0 | |
Additional Cash Raised | $18,750 | |
Cash Balance on Starting Date | $21,875 | |
TOTAL ASSETS | $373,125 | |
Liabilities and Capital | $0 | |
Liabilities | $0 | |
Current Borrowing | $0 | |
Long-term Liabilities | $0 | |
Accounts Payable (Outstanding Bills) | $0 | |
Other Current Liabilities (interest-free) | $0 | |
TOTAL LIABILITIES | $0 | |
Capital | $620,125 | |
Planned Investment | $620,125 | |
Investor 1 | $0 | |
Investor 2 | $0 | |
Other | $0 | |
Additional Investment Requirement | $0 | |
TOTAL PLANNED INVESTMENT | $620,125 | |
Loss at Start-up (Start-up Expenses) | $313,125 | |
TOTAL CAPITAL | $251,875 | |
TOTAL CAPITAL AND LIABILITIES | $251,875 | |
Total Funding | $255,000 |
An important part of any start up dentistry business plan is the services it will provide to its customers because the planning of nearly all subsequent things depend on the provided services. Spear’s Dental Clinic will be a licensed, registered and insured dental consultancy clinic which will provide following services to its customers:
Patients can make a reservation with us by either visiting our clinic or through our official website.
The most important component of an effective dentistry business plan is its accurate marketing analysis and a good dental practice business plan can only be developed after this stage. If you are starting on a smaller scale, you can do marketing analysis yourself by taking help from this dentistry business plan template or other dentistry business plan examples available online. If you are starting on a larger scale, it is always best to seek the counsel of marketing experts for developing a good dentistry business plan . The success or failure of a business totally depends upon its marketing strategy for business plan which can only be developed on the basis of accurate marketing analysis.Therefore, it must be considered before you develop your dentistry startup business plan . Dr. Spear acquired the services of marketing experts to carry out the marketing analysis for his dentistry business plan . He also went through various dentistry business plans available online before developing his own dental clinic business plan .
For learning the market trends of the dental industry, you will have to carry out an in-depth research. You can also take help from this dentistry business plan sample . The dental industry is among those industries who have a high propensity for profit and a very low failure rate. According to the American Dental Association (ADA), dental clinics are the 3rd highest category of the startup businesses which are most likely to survive. Dentists are among the highest earning professionals in the United States and their average income lies in the United States’ highest 8 percent incomes. According to IBISWorld, the dentist industry contributes more than $134 billion in the revenue of the United States every year. As of March 2018, there are 187,437 registered dentist clinics in the United States which are responsible for employing around 1,000,000 people. The industry’s growth rate is estimated to be 2.6 percent. This increase is contributed to many factors, of which one is the increase in education and prosperity of the population. The second factor is the increasing trend of dental insurances, due to which, many people became able to afford the dental services. According to a recent report, around 40 percent of the population has private dental insurance. In short, dental industry has a lot of potential and a dental clinic can be immensely profitable provided that you provide quality services and plan as well as market your business successfully.
Our target market is the residential community-based in Boston. As of 2016, there are more than 673,000 people in Boston which belong to varying backgrounds and most of them are financially stable. Out of the 252,700 households in the city, 20.4% contain children with age below 18 years, 25.5% contain married couples, 16.3% contain a female householder without a husband, and 54.0% are non-families. As per the population distribution, around 21.9% of the population is below 19 years of age, 14.3% are from 20-24, 33.2% are from 25-44, 20.4% are from 45-64, and 10.1% are more than 65 years of age. Analyzing the demographics is important since it gives you an idea of the market segmentation of your future customers. A successful and efficient marketing strategy can only be developed after we completely know our potential customers hence it must be duly incorporated in any dentistry business plan. Our business consultants have identified the following type of target audience which can become our future consumers:
The detailed marketing segmentation of our target audience is as follows:
Our first target group will be the children and teens aged below 19 years. This group is most likely to have dental problems like incorrect or misaligned jaw position, jaw joint disorder, under-bite, overbite, missing teeth, extra teeth, and crowded or crooked teeth. Moreover, due to their unhealthy habits like smoking, excessive intake of sweeteners, oral piercings for wearing jewelry, they are also frequently affected by other dental problems. That’s why this group will be the biggest contributor to our revenue.
5.2.2 adults:.
Our second target group comprises of adults aged above 19 years. This group contains people who are sensible and conscious of their dental health and, thus, seldom encounter a dental problem. That’s why they have the least contribution to our revenue.
The third target group comprises of senior citizens. This group, due to its old age, is much likely to be affected by various dental problems like dental decay, gum disease, poor fitting dentures etc. and has, therefore, more contribution than the adults. The detailed market analysis of our potential customers is given in the following table:
Potential Customers | Growth | ||||||
Adults | 20% | 11,433 | 13,344 | 16,553 | 18,745 | 20,545 | 13.43% |
Children & Teens | 45% | 22,334 | 32,344 | 43,665 | 52,544 | 66,432 | 10.00% |
Senior Citizens | 35% | 12,867 | 14,433 | 15,999 | 17,565 | 19,131 | 15.32% |
Total | 100% | 46,634 | 60,121 | 76,217 | 88,854 | 106,108 | 9.54% |
Our main business targets to be achieved as milestones over the course of next three years are as follows:
After considering the market demands and the competitive nature of this business, Dr. Spear has decided to price his services slightly less (10% less) as compared to that of his competitors. This pricing strategy has been carefully selected considering many factors, especially the competition provided by established dental clinics in the locality like Neo Dental Clinic. By setting our services in slightly lower range, we hope to target more customers during the initial period of our launch.
After you have identified the market demand, market trends, and the potential customers of the startup, you must now define an effective strategy for attracting those customers toward you.
Like marketing analysis, sales strategy is also an important component of a good dentistry business plan and it must be properly developed before thinking about how to open dental office .
It was amazing to work with OGS Capital for our business plan. They promptly responded our enquires and delivered document on time.The document was well organized high quality and content.We succeded with Alex and his team support. We thank you guys again for professional approach and easy communication.
The dental industry is one of the most competitive industries since there are more than 187,000 registered dental clinics in the United States. Boston also houses hundreds of established dental clinics who are providing quality services, especially the Neo Dental Clinic which will be our main competitor in the locality. However, our economical services will be our biggest competitive advantage since our services will cost about 15% less than that of our competitors. Although the residential community in our vicinity is well-established, still, this factor will cause an increase in our revenue by specifically targeting those people who are not covered by any dental insurance. Our second competitive advantage will be our exceptional customer service which, we guarantee, will be the best in town.
After carrying out a detailed analysis, our experts came up with the following brilliant ideas to advertise and sell ourselves.
Unit Sales | |||
Dental treatments | 1,887,030 | 2,680,320 | 2,588,240 |
Dental restorative & preventive services | 802,370 | 815,430 | 823,540 |
Dental examinations & consultations services | 539,320 | 770230 | 1,002,310 |
Dental diagnostics services | 265,450 | 322,390 | 393,320 |
TOTAL UNIT SALES | |||
Unit Prices | Year 1 | Year 2 | Year 3 |
Dental treatments | $140.00 | $150.00 | $160.00 |
Dental restorative & preventive services | $600.00 | $800.00 | $1,000.00 |
Dental examinations & consultations services | $700.00 | $800.00 | $900.00 |
Dental diagnostics services | $650.00 | $750.00 | $850.00 |
Sales | |||
Dental treatments | $2,149,800 | $2,784,000 | $3,383,200 |
Dental restorative & preventive services | $120,050 | $194,500 | $268,500 |
Dental examinations & consultations services | $50,110 | $71,600 | $93,000 |
Dental diagnostics services | $139,350 | $194,600 | $249,850 |
TOTAL SALES | |||
Direct Unit Costs | Year 1 | Year 2 | Year 3 |
Dental treatments | $0.70 | $0.80 | $0.90 |
Dental restorative & preventive services | $0.40 | $0.45 | $0.50 |
Dental examinations & consultations services | $0.30 | $0.35 | $0.40 |
Dental diagnostics services | $3.00 | $3.50 | $4.00 |
Direct Cost of Sales | |||
Dental treatments | $989,300 | $1,839,000 | $2,679,700 |
Dental restorative & preventive services | $66,600 | $119,900 | $173,200 |
Dental examinations & consultations services | $17,900 | $35,000 | $52,100 |
Dental diagnostics services | $19,400 | $67,600 | $115,800 |
Subtotal Direct Cost of Sales | $1,294,100 | $1,699,400 | $2,104,700 |
Personnel plan is also an important component of a good dentistry business plan template so make sure to duly consider it before thinking about how to open a dental office . The personnel plan of our company is as follows.
Dr. Spear will act as the General Manager of the company and will initially hire following people:
All the employees will be hired by following strict testing procedures and will also be trained before onboarding.
The following table shows the forecasted data about the salaries of the employees for the next three years:
Accountant | $85,000 | $95,000 | $105,000 |
Sales Executives | $45,000 | $50,000 | $55,000 |
Dentists | $410,000 | $440,000 | $480,000 |
Nurses | $173,000 | $180,000 | $187,000 |
Technical Assistant | $87,000 | $94,000 | $101,000 |
Customer Representatives | $80,000 | $85,000 | $90,000 |
Cleaners | $220,000 | $250,000 | $280,000 |
Total Salaries | $583,000 | $620,000 | $667,000 |
After you have prepared the dental office marketing plan and the personnel plan, it is time for you to prepare a detailed financial plan. The financial plan should craft a detailed map of all the expenses needed for the startup and how these expenses will be met by the earned profits. It is recommended that you hire a financial expert for guiding you through all financial aspects needed to open a dental office .
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 10.00% | 11.00% | 12.00% |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% |
Tax Rate | 26.42% | 27.76% | 28.12% |
Other | 0 | 0 | 0 |
Monthly Units Break-even | 5530 |
Monthly Revenue Break-even | $159,740 |
Assumptions: | |
Average Per-Unit Revenue | $260.87 |
Average Per-Unit Variable Cost | $0.89 |
Estimated Monthly Fixed Cost | $196,410 |
Sales | $309,069 | $385,934 | $462,799 |
Direct Cost of Sales | $15,100 | $19,153 | $23,206 |
Other | $0 | $0 | $0 |
TOTAL COST OF SALES | |||
Gross Margin | $293,969 | $366,781 | $439,593 |
Gross Margin % | 94.98% | 94.72% | 94.46% |
Expenses | |||
Payroll | $138,036 | $162,898 | $187,760 |
Sales and Marketing and Other Expenses | $1,850 | $2,000 | $2,150 |
Depreciation | $2,070 | $2,070 | $2,070 |
Leased Equipment | $0 | $0 | $0 |
Utilities | $4,000 | $4,250 | $4,500 |
Insurance | $1,800 | $1,800 | $1,800 |
Rent | $6,500 | $7,000 | $7,500 |
Payroll Taxes | $34,510 | $40,726 | $46,942 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $188,766 | $220,744 | $252,722 |
Profit Before Interest and Taxes | $105,205 | $146,040 | $186,875 |
EBITDA | $107,275 | $148,110 | $188,945 |
Interest Expense | $0 | $0 | $0 |
Taxes Incurred | $26,838 | $37,315 | $47,792 |
Net Profit | $78,367 | $108,725 | $139,083 |
Net Profit/Sales | 30.00% | 39.32% | 48.64% |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $40,124 | $45,046 | $50,068 |
Cash from Receivables | $7,023 | $8,610 | $9,297 |
SUBTOTAL CASH FROM OPERATIONS | |||
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
SUBTOTAL CASH RECEIVED | |||
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $21,647 | $24,204 | $26,951 |
Bill Payments | $13,539 | $15,385 | $170,631 |
SUBTOTAL SPENT ON OPERATIONS | |||
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
SUBTOTAL CASH SPENT | |||
Net Cash Flow | $11,551 | $13,167 | $15,683 |
Cash Balance | $21,823 | $22,381 | $28,239 |
Assets | |||
Current Assets | |||
Cash | $184,666 | $218,525 | $252,384 |
Accounts Receivable | $12,613 | $14,493 | $16,373 |
Inventory | $2,980 | $3,450 | $3,920 |
Other Current Assets | $1,000 | $1,000 | $1,000 |
TOTAL CURRENT ASSETS | |||
Long-term Assets | |||
Long-term Assets | $10,000 | $10,000 | $10,000 |
Accumulated Depreciation | $12,420 | $14,490 | $16,560 |
TOTAL LONG-TERM ASSETS | |||
TOTAL ASSETS | |||
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $9,482 | $10,792 | $12,102 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
SUBTOTAL CURRENT LIABILITIES | |||
Long-term Liabilities | $0 | $0 | $0 |
TOTAL LIABILITIES | |||
Paid-in Capital | $30,000 | $30,000 | $30,000 |
Retained Earnings | $48,651 | $72,636 | $96,621 |
Earnings | $100,709 | $119,555 | $138,401 |
TOTAL CAPITAL | |||
TOTAL LIABILITIES AND CAPITAL | |||
Net Worth | $182,060 | $226,240 | $270,420 |
Sales Growth | 4.35% | 30.82% | 63.29% | 4.00% |
Percent of Total Assets | ||||
Accounts Receivable | 5.61% | 4.71% | 3.81% | 9.70% |
Inventory | 1.85% | 1.82% | 1.79% | 9.80% |
Other Current Assets | 1.75% | 2.02% | 2.29% | 27.40% |
Total Current Assets | 138.53% | 150.99% | 163.45% | 54.60% |
Long-term Assets | -9.47% | -21.01% | -32.55% | 58.40% |
TOTAL ASSETS | ||||
Current Liabilities | 4.68% | 3.04% | 2.76% | 27.30% |
Long-term Liabilities | 0.00% | 0.00% | 0.00% | 25.80% |
Total Liabilities | 4.68% | 3.04% | 2.76% | 54.10% |
NET WORTH | ||||
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 94.18% | 93.85% | 93.52% | 0.00% |
Selling, General & Administrative Expenses | 74.29% | 71.83% | 69.37% | 65.20% |
Advertising Expenses | 2.06% | 1.11% | 0.28% | 1.40% |
Profit Before Interest and Taxes | 26.47% | 29.30% | 32.13% | 2.86% |
Main Ratios | ||||
Current | 25.86 | 29.39 | 32.92 | 1.63 |
Quick | 25.4 | 28.88 | 32.36 | 0.84 |
Total Debt to Total Assets | 2.68% | 1.04% | 0.76% | 67.10% |
Pre-tax Return on Net Worth | 66.83% | 71.26% | 75.69% | 4.40% |
Pre-tax Return on Assets | 64.88% | 69.75% | 74.62% | 9.00% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 19.20% | 21.16% | 23.12% | N.A. |
Return on Equity | 47.79% | 50.53% | 53.27% | N.A. |
Activity Ratios | ||||
Accounts Receivable Turnover | 4.56 | 4.56 | 4.56 | N.A. |
Collection Days | 92 | 99 | 106 | N.A. |
Inventory Turnover | 19.7 | 22.55 | 25.4 | N.A. |
Accounts Payable Turnover | 14.17 | 14.67 | 15.17 | N.A. |
Payment Days | 27 | 27 | 27 | N.A. |
Total Asset Turnover | 1.84 | 1.55 | 1.26 | N.A. |
Debt Ratios | ||||
Debt to Net Worth | 0 | -0.02 | -0.04 | N.A. |
Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
Liquidity Ratios | ||||
Net Working Capital | $120,943 | $140,664 | $160,385 | N.A. |
Interest Coverage | 0 | 0 | 0 | N.A. |
Additional Ratios | ||||
Assets to Sales | 0.45 | 0.48 | 0.51 | N.A. |
Current Debt/Total Assets | 4% | 3% | 2% | N.A. |
Acid Test | 23.66 | 27.01 | 30.36 | N.A. |
Sales/Net Worth | 1.68 | 1.29 | 0.9 | N.A. |
Dividend Payout | 0 | 0 | 0 | N.A. |
Download Dental Office Business Plan Sample in pdf
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Step 1. Download the form. Access the Printable Dental Business Plan form from a reputable source or website. Step 2. Gather information. Collect all necessary information and data to complete the form, including practice details, market analysis, financial projections, and operational strategies. Step 3. Read instructions.
February 26, 2024. Business Plan. Creating a comprehensive business plan is crucial for launching and running a successful dental practice. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your dental practice's identity, navigate the competitive market, and secure funding ...
The breakout of the funding is below: Dental office space build-out: $20,000. Dental equipment and supplies: $50,000. Office equipment and supplies: $10,000. Three months of overhead expenses (payroll, rent, utilities): $50,000. Marketing costs: $10,000. Easily complete your Dental business plan! Download the dental business plan template ...
This sample dental business plan will provide an idea for writing a successful dental clinic business plan, including all the essential components of your business. After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our dental business plan pdf.
An updated plan needs: Your dental practice's financial position. Your current debt, if any. Updated lender information and terms. A recent financial comparison with similar businesses. An analysis of your current costs and your "break-even" point. A review of the components of a dental business plan to effectively manage a dental practice.
ents of a busines. plan:1. Executive summaryThe executive summary describes what makes the practice unique and the plans in place to ensure practice vi. bility and sustainabil-ity. It includes summaries and/ or components of the fo. ow. ng comprehensi. plans:2. Financial plandetailed set of financials, cost. d.
Dental Business Plan Template. Over the past 20+ years, we have helped over 2,000 dentists create business plans to start and grow their dental practices. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a dental business plan template step-by-step so ...
As you might be aware, a meticulously developed business plan is crucial for any aspiring entrepreneur. It serves as a roadmap, outlining your vision, objectives, and strategies for your clinic. To craft a robust plan with ease and precision, feel free to utilize our dental clinic business plan template. Additionally, our team of experts is ...
n.Call 1-888-937-2321 or email [email protected] workbook is for general information only, and does not constitute, nor is it intended as a sub. titute for legal, tax, financial, or other professional advice. Any dentist interested in starting a practice should consult their personal atto.
Download this free dental office business plan template, with pre-filled examples, to create your own plan. Download Now Or plan with professional support in LivePlan. Save 50% today ... Download as PDF Finish your business plan with confidence. Step-by-step guidance and world-class support from the #1 business planning software. Get 50% off ...
Learn the key components of a business plan for your dental practice, such as executive summary, products and services, management, marketing, financial plan, and operations. Find out how to get funding and support from Henry Schein Professional Practice Transitions.
A detailed competitive analysis positions your dental business for long-term success.. Services And Operational Planning. Every dental clinic needs a solid business plan. It helps guide success. The services you offer and how your clinic operates are central to your plan.
5.1 Competitive Edge. The Tooth Fairy will leverage their two competitive edges to generate market share. Customer service. The Tooth Fairy's entire practice is based on a customer centric service model. This business model is particularly emphasized when Dr. Extractor is working with patients.
The dental practice's total start-up costs of $700,000 will be funded through Bank of. America for $600,000 (86% source of fund) and $100,000 (14% source of fund) will. be invested by the owner. It will be a 15-year business loan at a 6% interest with a 5-.
In this article we go through, step-by-step, all the different sections you need in the business plan of your dental practice. Use this template to create a complete, clear and solid business plan that get you funded. 1. Dental Practice Executive Summary. The executive summary of a business plan gives a sneak peek of the information about your ...
What Is a Dental Clinic Business Plan? Any business, whether big or small needs a business plan to help owners manage their business. This will serve as a guide and roadmap on how to structure, run, and grow your business. If you decide to open up your own dental practice, then part of starting up is creating a solid dental clinic business plan.
Make this exercise hassle-free by using our financial plan for a dental clinic practice. This article provides an example of a solid business plan for a dental clinic, outlining key points such as market positioning, services offered, budgeting, and marketing strategies. Get the information you need to create a successful business plan for your ...
Step 1: Gather Information and Necessary Documents. First and foremost, a dental practice must start the annual plan-ning process by gathering all the necessary information and docu-ments. Having all this information at hand will make the process go smoothly and assure that the plan is based on reliable data.
Embarking on a journey to open a dental practice ignites a future of bright smiles. It begins with a dream and flourishes into a professional plan to provide exceptional oral healthcare. A solid business plan is crucial. A dental office startup business plan PDF turns dreams into reality. Identifying The Need For A New Dental Office
dental business plan - Free download as PDF File (.pdf), Text File (.txt) or read online for free. A dental business plan is a strategic document outlining the operations, financial forecasts, and marketing strategies for a dental practice. It covers market analysis, services, staffing, and guides the successful establishment and growth of the business in the competitive healthcare industry.
Within this section of your dental business plan, you want to outline when the business started, how it came to be started and who was involved in its direc- tion. For example, you have decided to purchase Dr. Smith's Dental Practice who has been located at 123 W. Main Street, Anytown, USA for the last 30 years.
Wright's Dental Laboratory, located in a custom designed, 8,000 square foot facility using the latest, state-of-the-art restoration production systems and computerized case tracking, is owned by Charles and David Wright. The company will operate as a general partnership with both Charles and David performing management functions.
2.1 The Dental Business. Spear's Dental Clinic will be a licensed, registered and insured dental consultancy clinic which will provide all sorts of dental consultancy and treatment services to its customers. The business will be located at a 10 minutes' drive from the center of Boston and the location is ideal to open dental office.
A complete dental business plan PDF template. This fill-in-the-blanks template includes every section of your business plan, including Executive Summary, Objectives, SWOT Analysis, Marketing Analysis and Strategy, Operations Plan, Financial Projections and more (a similar template is sold elsewhere for $69.95). All this and much much more.