Components of a Business Plan I. Introduction and Statement of Business Concept a. General statement of purpose and objectives b. Historical background i. Date of organization ii. Present legal structure (solo, partnership, corporation) iii. Major changes in business purpose, objectives, or strategies c. Brief description of the market d. Brief description of product(s)/service(s) II. External Environment and Industry Analysis a. Size and nature of the market i. Description of total market ii. Industry trends iii. Target market iv. Competition v. Factors influencing demand 1. Income of target population 2. Seasonal and cyclical influences 3. Price and customer sensitivity to price change 4. Influence of advertising 5. Customer profile b. Relationship with other professional practices c. Laws pertaining to the practice of dentistry d. Competition i. Nature of direct competition ii. Indirect competition iii. Nature of competitive practices (price, quality, advertising, services, other competitive forces) 1. Number and size of practices 2. Location of practices in relationship to the proposed iv. Nature of cooperative influences (other dental offices which offer encouragement) ©2005, 2009 American Dental Association Components of a Business Plan III. Product(s)/Service(s) Offered and to be Offered a. Detailed description of the product(s)/service(s) b. Assessment of the competitive advantages and disadvantages i. Technological position ii. Services offered iii. Location iv. Cost and pricing policy v. Payment policy IV. Growth Strategy a. Approach to entry in proposed market area b. Approach to growth and maintenance of market share c. V. Five year revenue forecast Marketing a. Geographical coverage of market area b. Marketing plan i. Internal marketing plan ii. External marketing plan c. VI. Estimate costs Operations a. Location b. Required facilities c. Required equipment d. Inventory and inventory controls e. Organization and personnel i. Type, expertise, and availability of personnel ii. Compensation VII. Management a. Form of business b. Ownership breakdown c. Organizational chart d. Resumes of key personnel e. Staffing plan ©2005, 2009 American Dental Association Components of a Business Plan f. Facilities plan/planned capital improvements g. Operating plan h. Copies of licenses, certifications, insurance coverage (for all staff, if already chosen) VIII. Financial Analysis a. Summary of company’s financial position i. Prior capital contributions ii. Major current stockholders iii. Current debt, lenders and terms iv. Use of prior capital b. Historical and pro forma (three to five years) income and balance sheets c. Historical and pro forma (three to five years) cash flow d. Required investment e. Return on investment f. Financial comparison with similar firms g. Schedule of disbursements h. Performance mileposts IX. Risk Analysis a. Statement of major areas of risk b. Quantitative risk analysis i. Break-even point 1. Fixed costs 2. Variable costs 3. Semivariable costs ii. Payback period iii. Probabilistic forecast c. X. Disaster plan Plan Update a. How, When and Who ©2005, 2009 American Dental Association