Sample Business Plan on Dental Business Plan
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EXECUTIVE SUMMARY
The Business Concept
XYZ Dental, LLC (XYZ Dental or the Company) provides a full array of dental services. The Company’s business is organized into three main profit points: a dental clinic, a mobile dental service and an in-house dental laboratory. The Company is located in Southfield, Michigan.
Although XYZ Dental was only recently organized (May of 2009), it has already achieved great success. The Company has signed over 260 contracts with nursing homes to provide services to the residents there. Currently, the Company is servicing 84 of these contracts and is adding an additional 20 per month. The requested funding in this plan will help XYZ Dental grow faster and service all of its contracts.
XYZ Dental also operates a dental clinic for general dentistry that specializes in cosmetics, specifically denture related services. The Company owns and operates its own dental laboratory that allows it to offer faster turn-around, better quality and the best pricing in the industry.
Excellent Market Opportunity
A recent study, “An Aging World: 2008”, sponsored by the National Institute on Aging (NIA) and produced by the U.S. Census Bureau, predicts that by 2040, the 65-plus population worldwide will more than double, from about 506 million to 1.3 billion. This growth in the elderly population means that the health care system needs to adapt to changing and increasing health care needs. Because more people in the US are not having children (estimated at close to 20%), this will mean that more elderly people will be without families to help take care of them resulting in a strong increase of people living in assisted nursing home facilities.
By both State and Federal law, nursing homes are required to offer dental services to their residents. Usually, nursing home staff would need to take the residents off-site to visit a dental facility and they would spend at least half a day transporting a resident to and from the dentist. XYZ Dental saves the nursing homes time and money by visiting resident’s onsite.
The Company has already demonstrated the huge market opportunity by the strong growth it has achieved and the hundreds of nursing home contracts it has acquired from competitors. XYZ Dental is the best in the business. Competitors take 4-6 months to deliver dentures while the Company does it in one week. XYZ Dental can perform all dentistry services onsite without referring to an outside dentist like its competitors. The Company is quicker, provides higher quality and is much less expensive than any competitor.
Profitable Growth
XYZ Dental expects to gain a profitable market share within a very short period of time. Determinations have been made for the size of the market, amounts of budgeted advertising and promotional dollars, the number and kinds of distribution channels and the competitive landscape.
Projections call for the Company to generate revenues of $1.5 million in its next twelve months. XYZ Dental will achieve strong growth over the next several years, reaching $9.7 million in revenues and more than $4.6 million of net income by the fifth year.
The Opportunity
The lack of professional dental care may be an important factor for the poor oral health of elderly nursing home residents, poor daily oral care provided by caregivers may be the most significant singular factor for poor oral health.1
The Market
In the United States, nearly 2 million older adults reside in 16,100 nursing homes. The majority of these elderly individuals require assistance with activities of daily living (ADL), and nursing assistants (NAs) are the predominant providers of this care. The National Institute of Dental and Craniofacial Research (NIDCR) recognizes these nursing home residents as a group with significant health disparities in the area of oral health.
The existence of acute and chronic diseases may create a negative spiral in which the diseases are worsened by the presence of poor oral health that deteriorates as their medical problems progress. The oral health status of nursing home residents has been described as “deplorable.”
There are emerging connections between poor oral health and poor systemic health. The number of residents retaining their natural teeth exacerbates the problem of poor oral care in nursing home.
In the early 1980’s, 54% of persons age 65 years or older had some natural teeth; by 2002, the percentage had increased to 70%. The purpose of this review is to describe the oral health of elderly nursing home residents, the effect of mouth care–resistive behaviors on the oral health of these residents, and specific interventions to reduce mouth care–resistive behavior. 2
General Description of the Nursing Home Population
The current nursing home population is frail and functionally dependent. Ninety-one percent of nursing home residents are 65 years of age or older, and 46% are 85 years of age or older. Eighty-three percent require assistance with three or more ADL.
The three most common ADL requiring assistance were bathing or showering (96%), dressing (87%), and eating (45%). Oral care was not specifically mentioned in any ADL category, but one could conservatively estimate that the 45% who required assistance with eating would most likely require assistance with mouth care. Self-care is further compromised by cognitive impairment; 70% of nursing home residents exhibit some form of cognitive impairment regardless of diagnoses.
Health Risks Due to Poor Dental Care
Poor oral health interferes with the ability to chew food and can place residents at risk for malnutrition. In a study of 187 nursing home residents, researchers noted associations between persons with highly compromised dentition (edentate, edentate with 1 full-denture plate, or 6 or fewer teeth) and weight loss. 3 In another study that examined relationships between oral health status and weight in persons newly admitted to a nursing home, researchers found an association between body mass indices below 22 and poor oral health.
More older adults are entering nursing homes with some or all of their teeth. Using data from the 1995 National Nursing Home Survey, Dye calculated that 52.3% of nursing home residents were dentate. From 1988 to 2004, edentulism (absence of or complete loss of all natural teeth) decreased from 34% of all adults over age 65 to 27%.4 For adults in the 65-74 years of age bracket, edentulism decreased from 28.6% to 23.9% during the same time; the reduction