1. Business Program for Dental Hygienist’s business planning
Course one

2. Management comes first

3. In this section you will learn…
The importance of management and the management process
The impact of planning on a successful practice
Why you should write a business plan
The key elements of a solid business plan.

4. management This definition reflects four important concepts:
(1) the effective and efficient accomplishment of goals;
(2) the limitation of resources;
(3) the constantly changing environment, both internal and external to the organization itself; and
(4) the four basic management functions of planning, organizing, leading, and controlling.
Being effective means getting the job done—achieving your stated goal. Being efficient means using the fewest resources to accomplish that goal.

5. examples
For example, explaining a new procedure to each dental assistant one-on-one would be highly effective because you could ensure that each one fully understands it. However, it would not be very efficient because of the total amount of time you would spend.
In contrast, you could be very efficient and explain the new procedure in a group setting, but that might not be as effective as one-on-one because some people may be reluctant to ask for clarification.
Your job as a manager is to balance the two without having a negative impact on your operations.
The second concept, limited resources, recognizes that there is a finite amount of all resources. There are, for example, only 24 hours in a day, a finite number of dental hygiene chairs in your office, and only one of you. A constantly changing environment is a reality of life, both outside and inside your practice. The question is not whether things will change, but at what rate they will change.
Internally, hiring new employees brings new skills and new personalities to your staff. Your decision to implement a new administrative (office) procedure can be seen as positive or negative by different employees.

6. Are you the only employee?
In most cases opening up a dental hygiene practice you may feel it is more economical to have you as the only dental hygienist/receptionist working in your practice
Perhaps you will only accept appointments online so that you can work and then check your s/appointment booking software to see who may have booked an appointment
This may not be the best option long term though – eventually you should hire at least one receptionist to take calls while you are working and help with daily things with the office
At least one other dental hygienist or assistant is a great idea as well to help maintain sterilization, charting, etc. so you are not doing everything yourself

7. Managing others When you hire others you need to manage them –
Organize your thought process first, who do you want to hire, what personality type and how many people?
Determine pay rate (more on this later) and what you can afford. Keep in mind raises will need to be given over time but this should be easy when your office is making the big bucks 
Different people may not get along ALL the time, how will you handle this and correct situations?
What if an employee isn’t doing their job? How will you correct THIS?
More on this later but make a note of it for now…

8. What is a business plan?

9. Business plan is a road map to your dental hygiene practice
A business plan is a written document that describes and analyzes a proposed or current business and includes a marketing plan, a management plan, and a financial plan.
While there are no guarantees of success, a well-written plan offers business owners a greater probability of success simply because it requires them to think about virtually every aspect of their business.
A business plan is a roadmap for your dental hygiene practice. On the other hand, having a business plan, even one that is highly detailed, does not guarantee success.

10. Do I really need one? No… Just kidding, YES YOU DO 
The main purpose for writing a business plan should be to allow the entrepreneur the opportunity to gain an in-depth look at the potential for the business’s success and what it will take to achieve that success. In other words, your primary audience should be yourself.
However, many entrepreneurs write their business plan solely to obtain financing. Well-written business plans can help you answer many questions, including:
What specific products (goods and/or services) do you offer?
Is your target market large enough for the practice to be profitable, given the competition?
How many support personnel will you need, and at what cost?
Are the professional and support staff that are in the available labor pool qualified at the service level you desire/require?
What level of revenues is required for you to break even in an average month?

11. In other words
In other words, given your proposed location and the services you plan to offer, a business plan can help you determine whether or not your practice has the potential to be successful.
By putting together a thorough plan, you may discover that a change or changes might be warranted; for example, choosing a different location, offering different hours of operation, or partnering with another dental hygienist or dentist (a second or third dental hygienist or dentist in the same location only marginally increases the overhead costs).

12. A long or short business plan?
The main body of most plans should be no more than 25 to 30 pages.
Generally speaking, the higher the amount of financing you require, the more detailed the plan should be in order to justify the desired financing and to substantiate your ability to repay the lender/investor. Nor should you expect the first draft to be the final draft.
As with any important paper, you should do your research (using your business plan outline as a guideline) and then put together the first draft. Put it down for a day or two, and then read it as if you were the investor, making notes of possible changes. Then, rewrite it and put it down for a day or two before re-reading it.
Go through this process until you are satisfied it is complete—that it tells the whole story. Then, go back and make sure it is grammatically correct, especially your cover letter. Remember, people often write like they speak, but the rules for speaking are different than for writing. You do not want to lose a potential investor because of errors in your plan. That shows a lack of attention to detail that will not bode well for you as a manager (and a seeker of funding).
Another important point is to make sure that the end results—the numbers in your financial projections—are a result of your research, and not the other way around—that is, the “research” was developed to support the numbers that reflect a positive outcome. Making the numbers show a great cash flow and a large profit will often lead to difficulties later on. You might even be able to convince the banker that your plan is accurate, but you know the real story.

13. Business plan format
While every business plan is unique and should be designed and written for a specific purpose, certain elements are universal.
Again, your business plan should be written to meet your needs.
There is no “perfect” business plan format.
We go over examples in the following slides
You may like this example and how to get started here:

14. Elements of a business plan

15. Cover page
The cover page identifies the name, address, and phone number of the business and the owner(s), as well as the date the plan was submitted.
If you are requesting funds from more than one source, also include a copy number.

16. Table of contents
The table of contents provides a concise overview of the plan’s contents and should list, as a minimum, each primary and secondary heading with its starting page number.
For example, a major heading would be “Mission,” and a secondary heading would be “Mission Statement.”

17. Executive summary
This introduction to your proposal must capture the attention of the reader with a convincing message to read the entire plan. It is a brief synopsis (not more than 2 pages) that addresses the essence of your proposed business.
Hence, even though it is the first thing read, it is the last thing written. While a lender might talk about having read, say, five hundred business plans, what the lender really read were five hundred executive summaries 
Only a small percentage of those executive summaries successfully led to the full plan being read, so these introductory comments are critical and foundational.

18. continued
Imagine that just you and a potential investor are in an elevator, and you have that person’s undivided attention for maybe 1 minute. What would you say to convince this person that your proposal would be a great investment opportunity?
The executive summary is simply a written version of an “elevator pitch” and should briefly describe the following:
The company and its founders: describe your service, what is special about it, and what the qualifications of the owner(s) are.
The market opportunity: describe the size and growth rate of your market and how it is currently being served.
The key financial highlights.
Summarize your sales and profit projections for at least the first year.
Clearly state the total capital needed from all sources (including personal resources), what use will be made of each source’s capital, and an anticipated repayment schedule.
While you may not know the exact terms of the loan (such as the interest rate and length of the loan), you should make a reasonable estimate. For example, suggesting that a loan of $5,000 can be obtained at a 2% interest rate to be repaid over 5 years would not be reasonable. Lastly, include when your business practice will financially break even.

19. mission
A company’s mission statement answers the question, why do I exist? It is a short statement (25 words or less) that tells employees, clients, and investors what you do and what you believe in.
In other words, it gives direction to your practice. It is like your elevator pitch—you need to be able to summarize your proposal in about 1 minute.
If you cannot summarize the essence of your business and what you stand for in no more than about 25 words, you probably do not have a handle on who you are and what you are all about.

20. Goals and objectives
While the mission statement provides the broad overview of your business, goals and objectives are actually what help you achieve your mission.
Goals are broad, long-range statements of what the practice would like to achieve.
An example might be “to be the premier general dentist in Anywhere, USA.” An objective is a very specific statement that is relatively short-term oriented and follows the basic formula “to do something, by a certain time, by some amount.” For example, “to increase my patient base by 300 within 6 months” or “to reduce uncollectible accounts receivable by 2% by the end of the fiscal year.”
These goals and objectives give you and your practice a sense of direction and should, obviously, relate to your basic mission statement.

21. Marketing (is key!!)
Having a well-designed marketing plan is crucial to your success in terms of both acquiring needed funding and having a viable practice.
Indeed, it is your marketing plan that forms the basis of your financial forecasts.
So, knowing your target market, defining your product, having an appropriate pricing strategy, selecting the right location, and developing a suitable promotion strategy are some of the most critical—and challenging—aspects of building your plan.

22. location
Location is key when it comes to marketing – first you need to find a suitable place for your dental hygiene practice
Are six other dental hygiene practices within a few blocks? Probably not the BEST location for you 
Is there a hospital near by? Hm..great location as this will lead to more patients (likely) and increased traffic in the area.

23. Another important concept
Another important marketing concept is how you see, or relate to, the marketplace.
Do you have a production orientation or a marketing orientation?
A production orientation suggests that you already have a product, so you must now find the target market(s). A marketing orientation suggests that you determine your target market(s) first, and then you determine what product(s) the people in your target market need or want.
In other words, the production concept says that you already have a product that, of course, you believe is the greatest thing since sliced bread, but you must now find a market that thinks the same way you do—not always the easiest thing to do. The marketing concept says that you have selected a market you wish to serve, and now you must find a product they need or want. Conventional wisdom says that having a product and trying to figure out how to convince potential customers they should buy it (the production orientation) is much more difficult than determining what someone wants or needs and then making it available to them (the marketing orientation). Knowing your orientation suggests which is most important to you: your product or your patient.
What do YOU think a dental hygiene practice falls under since this is relatively a ‘newer’ thing?

24. Product description
You will be providing a service: dental hygiene cleanings, and also giving out ‘goods’ toothbrushes, floss, etc.
Other “product offerings” might include convenient hours, options for financing dental care, or the latest technology. Knowing exactly what your total product offerings are (and being able to describe them in terms the average layperson can understand) will govern many decisions.
For example, what skills will you seek in hiring new staff members (or in retaining current ones)? What promotional activities will your target market most likely respond to? How will you price your products? (Virtually every aspect of your product offerings has an associated cost, and you must ensure your pricing covers all of those costs.)
It is also important to clearly understand and describe how your product differs from your competition’s. That is, what is your distinctive competency— what sets you apart from your competitors—and how will that give you a competitive advantage? For example, as a general dentist offering orthodontic treatment, you might establish office hours so that your school-aged patients will not have to miss school.

25. Industry analysis
You must look at the industry in itself – what problems may you face?
Look at other dental hygiene practices and talk with them, what are the pros and cons of the business?

26. Market definition
Will you be servicing the entire city? The ‘area’? Certain cultures more then others? All of this will need to be determined depending on location
How many prospective patients do you expect to have? How many people live in the area? How many people seek dental work or DO NOT seek dental work?
Is it considered a ‘rich’ part of time or perhaps a ‘scary’ part of time where nobody wants to walk in?
What are your proposed sales and can it lead to a successful business?

27. competition Who wouldn’t look at their competition, this is a must! 
How many dental offices or hygiene offices are in the area?
Are you the youngest dental hygienist? How long have you been working?
Being a newer dental hygienist you can stress the important of the latest and greatest technology, whereas your competition may have more experience BUT you have the best technology and biggest children's playroom area 

28. The dental lab, will you use one?
The consideration is how you deliver your total product, both services and goods, to your customer. Do you plan to hire a dentist to work with you full time? Maybe he will be doing everything he is trained to do – crowns, bridges, fillings, etc. so you can better serve your patients all in one building…
So, unless you have your own lab and fabricate your own crowns, for example, you must also include other businesses in your business plan.
You may be able to choose from among several suppliers for various items.
Which one(s) will you use and why?
How will cost, financing arrangements, convenience, and quality play into your decision?
While your banker may not necessarily want to know these details, you do. Choosing a supplier whose quality is less than you desire or whose turnaround time is slow can have a definite impact on your bottom line through the loss of patients. Remember, your patient does not really care that someone else made the poor-fitting crown or could not deliver it in the time promised. Regarding the physical location, where exactly is it? What are its advantages and disadvantages, including, for example, age of the structure, available parking, room for expansion, proximity to clients? Are you going to rent or buy an existing structure, or will you build? What are the up-front and monthly costs?

29. pricing
Include marketing pricing – will you have a web site, advertise, Facebook branding? More on this later…
What are your fees?
What will your products cost?
What are your competitors fees?

30. promoting
It also includes personal selling, specialty advertising, and publicity.
How you and your staff interact with patients is also part of personal selling, in that you are constantly “promoting” superior service, which translates into satisfied customers who will remain loyal patients. The giveaway items with your name and logo on them such as pens and toothbrushes are called specialty advertising. Publicity, sometimes thought of as “free advertising,” is when your business (or you) is the subject of, or mentioned in, a story in the mass media such as a newspaper article.
These references could be positive or negative. For example, a reporter may choose to write a story about the opening of your new practice or include the fact that your office had 100% participation in a blood drive. On the other hand, the fact that you or a member of your staff was involved in a single-car accident and alcohol was cited as a contributing factor would probably be seen negatively. Including a reference to you in the article was the newspaper’s choice, not yours. And since you do not pay for publicity, you have no control over it.
Conversely, advertising is space you purchase, which means you control, to some degree, what is said and where it is placed; for example, ads in the newspaper, on TV, or in the yellow pages of the phone book.

31. Internally looking at management
Management plan
Internally looking at management

32. personal
Often the office manager and receptionist will not be the owner of the business. A small office many not need an office manager as you may be doing this yourself but as the office grows (and it will!) you may consider hiring both
List what each staff member will do, duties of each so there is never any confusion
Also it is a good idea to think about when your office reaches a certain number of patients or revenue, when you may need additional staff
Include wages, benefits, typical work day, etc. all as an organization structure for yourself and employees
Legal structure – will you pay for any association fees your staff may have?
Insurance – do you need it? YES
Policies – include written policies to avoid stress later on such as:
Smoking policy (can staff smoke on their breaks, where and when?)
Alcohol use
Coming to work late
Who deposits the cash and when
Etc,..more on staffing later

33. Financial plan
The financial plan details your revenues and your expenses.
It shows how they translate into a profit (or loss) and how (and when) the money flows into and out of the business. It also shows the practice’s assets and who “owns” them—you (owner’s equity) or someone else (a liability).
In business terms, what’s the “bottom line”? Virtually everything in your marketing and management plans must be quantified. What are your costs, when will you incur them, and when will you pay for them? For example, how many patients do you expect to see per month, and at what price (marketing plan—target market)? What are your advertising costs (marketing plan—promotion)? What are your legal, insurance, and personnel costs (management plan)?
The three financial statements that you should understand (not necessarily be able to create them, but understand them) are the cash flow statement (which includes turn-key costs for a start-up practice), the income statement (sometimes called a profit and loss statement, an operating statement, or a statement of earnings), and the balance sheet.

34. Cash flow statment
What is the cash flowing in and out of the business?
Say, for example, you provide a service on May 5 for which you charge $100, but you do not receive payment for it until June 10. Your profit and loss statement could show a $100 “sale” in May, but your cash flow statement will show the receipt of that $100 in June, not May.
Similarly, if you order $100 of supplies in May, but pay for them in June, your profit and loss statement could show an expense of $100 in May, but your cash flow statement will show a $100 payment in June. In other words, the cash flow statement is like your check book.
It is a month-to-month accounting of your actual deposits and your actual withdrawals. A cash flow statement should not be confused with a “statement of cash flows” or a “sources and uses of funds” statement, which are often produced by accountants. Basically, if your practice cannot maintain a positive cash flow, you will not need to worry about an income statement or a balance sheet because you will not be in business. Your business plan should include monthly pro forma cash flow statements for the first 12 to 24 months.

35. Income statment
The income statement shows sales, expenses, and the resulting profit (or loss) for a specified period of time such as monthly, quarterly, or annually. Income statements can be on an accrual basis (when the sale or expense is incurred) or on a cash basis (when the money is received or expense is paid).
As a minimum, your plan should include monthly pro forma income statements for the first year and an annual summary for year 2.

36. Balance sheet
The balance sheet shows the total assets of the business and who “owns” them—either you (owner’s equity) or someone else (liability). Because all assets are owned by someone, total assets must equal total liability plus owner’s equity.
The balance sheet is a reflection of a single point in time; for example, the end of your fiscal year. Your business plan should include pro forma (projected) balance sheets for opening day and the end of years 1 and 2.

37. Breaking even
An important question to answer is, what level of sales must I have to cover total costs for an average month? Knowing your break-even point is particularly critical when there is a gap between the date of the sale and the receipt of payment.
You should also be aware of when during an average month you expect to reach that point—that is, when do you anticipate actually receiving payments to cover your costs?
For example, say your break-even point is projected to be the 20th of the month. It is now the 15th, and your receipts are only half that amount. Knowing the situation, you are in a better position to plan what you will do before you come face-to-face with the “end of the month crunch.”

38. Proposed capitalization
Finally, itemize your total proposed capitalization from all sources, equity and debt.
Equity financing is money that comes from the owner(s) and does not have to be repaid. It is called “risk capital” because the money could be lost if the business fails. Debt financing, on the other hand, is money that you borrow and must repay with interest.
Indicate how the money from each funding source will be used, what security/collateral, if any, will be used, and your proposed terms of repayment. Financing your practice is covered in the next course 

39. Resources to help formulate your business plan
And there are many!

40. Business consultants
Business consultants are people who offer advice to others about how to better run a business.
Some consultants specialize in a particular industry, and some are generalists.
Check the yellow pages in your phone book for “business consultants.” You might talk to your business attorney or accountant.
It is not unusual for them to assist in putting together business plans. Some may even have “how-to” booklets for business plans. There is also the Academy of Dental Management Consultants. This academy has experience-based requirements for member-consultants (

41. Federal government
The Small Business Administration (SBA) is the federal government’s agency specifically designed to assist small business people in finding financial assistance. More to the purpose of this chapter, however, is the management assistance they provide small business people through the Service Corps of Retired Executives (SCORE) and through a network of Small Business Development Centers (SBDCs)

42. score
SCORE is an organized group of retired business executives with a wide variety of backgrounds who provide free consulting to any small business owner.
Not all industries are represented in each chapter, so be sure to ask for someone whose background is compatible with your needs. To find the SCORE chapter nearest you, check their website at

43. sbdc
The SBDC program is a cooperative effort of the private sector, the educational community, and federal, state, and local governments. Assisting with the development of feasibility studies (business plans for start-up businesses) is only one of the many services the program provides to anyone interested in starting a small business or improving or expanding an existing one.
For more information on their services or to locate the office nearest to you, go to and click on Local Resources.

44. resources
- an online dental magazine that could help you on a variety of topics such as insurance and business aspects
- how to select an insurance broker, areas and resources
- a great dental practice web site, tips/tricks, learning exercises and simulations.
- dental economics
** - small business registration, steps for starting a business (U.S)