Periodontist operate in a unique capacity given that they provide a highly specialized dental service to the general public. When we develop a periodontist business plan, one of the primary focuses of the document is the highly specialized nature of the service is rendered as there are typically a limited number of periodontists that operate in any given market. We also discussed the immense need to develop ongoing referral relationships with general dental practitioners within the target market in order to receive ongoing referrals. One of the other key focuses that we discuss is the substantial economic stability that is enjoyed by periodontists given that they are able to treat a wide range of gum diseases while also providing dental implants.
We always begin the development of the periodontist business plan by addressing the target market area. This includes a deep examination of the number of people living in the market, their median household income, availability of dental insurance, median home value to determine regional wealth, as well as population density. This analysis also includes a discussion regarding competition among other periodontist operating within the target market radius. We apply the national level statistics regarding the ongoing demand for periodontal care to the total size of the population. We then create a service addressable market analysis to determine how many people will use a periodontist in any given year.
Based on this deep market analysis, we then developed the financial model. When we create the periodontist business plan, we include a five-year profit and loss statement, common size income statement, balance sheet, breakeven analysis, and business ratios that showcase the performance of the practice as compared to national statistics. We also develop a DSCR analysis to showcase at the business is able to meet its financial obligations on a monthly basis.
Marketing is also an extremely important part of the periodontist business plan. As noted above, we discussed the use of referrals from general dental practitioners in order to receive patients from the onset of operations. We also discuss the use of numerous online marketing strategies, including regional, focused search engine optimization so that when people do searches for periodontists, the practice’s website appears frequently within the body of the search results. This also includes a discussion of how social media can be used in order to provide social signaling, which ultimately boost the efficacy of all other online marketing strategies. An overview regarding the breakdown of marketing channels is included within this section of the business plan. As it relates to marketing messages, we typically focus on the experience of the periodontal practitioner as well as the ability to provide affordable care for a wide range of gum-related issues.
We then move into the periodontist operations plan, which outlines the scope of services offered, human resources matters, the specialized requirements among personnel to operate in a periodontal capacity, hours of operation, and contingency related issues. This discussion also includes it an overview of the anticipated pricing as well as the expected reimbursement from insurance.
The SWOT analysis is part of the appendixes of the periodontist business plan. Here we outline these strengths, weaknesses, opportunities, and threats that are faced by periodontist practices. As relates to strengths, we hone in very heavily on the economic viability of these businesses as well as the limited competition in any given market. For weaknesses, these businesses do have relatively high payroll costs given the specialized personnel that are required to render services. In regards to opportunities, these businesses will often hire associate periodontists in order to increase year-on-year revenues. For threats, liabilities relate to malpractice are always an issue for any dental enterprise.
We also include a full risk analysis that discusses the issues that can occur during the development phase of the practice, as well as through the life of its operations. These businesses typically maintain a low risk profile given that they remain in demand at all times.
Finally, we turned to the periodontist executive summary. Here we provide a full overview of the practice and how it intends to launch its operations. This includes an overview of the practitioner that will operate the business on a day-to-day basis. A snapshot regarding the anticipated financial results is included in this part of the analysis.