Components of a Business Plan I. Introduction and Statement of Business Concept

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