The Business Plan:
Your Road Map to Success Developing and following a solid business plan can help your practice thrive. By Renee Knight, Editor This is it: You’re finally ready to open your own dental practice. You’ve dreamed of this for years, and have plenty of ideas about how you’d like your new practice to look and feel. The problem is, you have too many ideas, and aren’t sure how to organize and then execute your thoughts so they translate into success. That’s where a solid business plan comes in. Many young dentists don’t think they need a business plan, so they opt to skip this vital step in developing their practice. These dentists tend to struggle, because they have no clear vision or mission to guide them. A business plan serves as a road map to success, outlining every practice detail, from the type of services you plan to provide, to financing requirements, to hiring practices. “Probably the most important phase of your path to ownership is the development of a business plan. This is where
you bring your professional goals into clear view,” said Gavin Shea, National Director, Healthcare, for Wells Fargo Practice Finance. “It provides a clear statement of your mission and values, outlines who you are as a dentist, and defines how you plan to run your business. It challenges you to think through all of the details required to be a successful business owner and set benchmarks so you know when you are on the right track or if you should make adjustments.”
ELEMENTS TO INCLUDE IN EVERY BUSINESS PLAN Typically, business plans start with an executive summary that gives a brief overview of the entire plan, and then moves on to business, market and financial overviews, said Jeff Cormell, Vice President Regional Business Development Officer for Bank of America-Practice Solutions. They also provide a detailed explanation of the products or services the business offers, short- and long-range objectives, a discussion of the industry, the business model, the competition, marketing strategies, the management team and the capital required. Plans should address clinical as well as business issues, said Nick Spanakis, who heads PNC Business Banking’s medical practice area, and include how you’re going to attract new patients and get them to accept treatment you recommend. Most plans, Cormell said, are broken down like this: Executive Summary Business Overview • Mission Statement • Type of Business • Products and Services Offered • Management Team • Staffing • Personal and Business Goals • Outline of Owners’ Professional Team Market Overview • Competitive Analysis • Market Opportunities and Risks • Competitive Advantages of the Business • Detailed Marketing Plan
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