The Tooth Fairy

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Dental Office Business Plan

Company Summary

The Tooth Fairy, to be located in Eugene, OR, will offer both general dentistry as well as cosmetic dentistry.  General dentistry consists of primarily of cleaning and fillings, while cosmetic dentistry consists of teeth whitening, veneers, and gap removal.  The Tooth Fairy is forecasted to reach profitability by month 10 and have respectable third year profits.

2.1 Company Ownership

The Tooth Fairy is an Oregon limited liability corporation owned by Steve Extractor.

2.2 Start-up Summary

The following are the required start-up costs:

The purchase of Dan Jokerdoc D.D.S.' private practice.  The purchase includes the patient list, office space, front chair and desk, two dental chairs, two light systems, fully-equiped sterilization room, compression air system with a suction unit, x-ray unit, mirrors, and a phone system.  This practice has been valued by the following variables: equipment, office space already built for a dentist, goodwill, and future revenue streams.  The equipment has been valued at $30,000, $15,000 for tenant improvements on the office space, the patient list at $5,000 and $25,000 for future profitability.  The entire practice was sold for $65,000 because Dr. Jokerdoc was in need of quick cash. Statistical studies have shown that patients that are made comfortable are likely to stay with the new doctor when a practice is sold.  This will help with cash flow, minimizing the amount of start-up cash.  The bulk of the equipment needed will procured through the purchase of the practice, however, there is a lot of equipment that will be needed to be purchased separately. 

The following list details what else will be needed.

  • Front desk equipment including a Xerox machine, fax machine, a computer terminal with Microsoft office, QuickBooks Pro, laser printer and a CD-RW.
  • Disposables which include: assorted trays and explorers, x-ray film, filling material, paper products, and impression material.
  • Placing instrument.
  • Curing instrument.
  • Ultrasonic scaler (for removal of prophylaxis).
  • High- and low-speed drills (enough for two operators).

Please note that all items that are to be used for more than a year will be classified as long-term capital assets and will be depreciated using the G.A.A.P approved straight-line method of depreciation.

Start-up Expenses
Legal $1,000
Stationery etc. $100
Existing Practice (the portion that is not a capital asset $20,000
Remodeling of office $10,000
Insurance $0
Rent $0
Research and Development $0
Expensed Equipment $0
Other $0
Total Start-up Expenses $31,100
Start-up Assets
Cash Required $68,100
Other Current Assets $0
Long-term Assets $51,800
Total Assets $119,900
Total Requirements $151,000
Start-up Funding
Start-up Expenses to Fund $31,100
Start-up Assets to Fund $119,900
Total Funding Required $151,000
Non-cash Assets from Start-up $51,800
Cash Requirements from Start-up $68,100
Additional Cash Raised $0
Cash Balance on Starting Date $68,100
Total Assets $119,900
Liabilities and Capital
Current Borrowing $0
Long-term Liabilities $100,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $100,000
Planned Investment
Steve $51,000
Other $0
Other $0
Additional Investment Requirement $0
Total Planned Investment $51,000
Loss at Start-up (Start-up Expenses) ($31,100)
Total Capital $19,900
Total Capital and Liabilities $119,900
Total Funding $151,000