A business plan can act as the foundation for building a strong business, setting it up for long-term growth that is sustainable into the foreseeable and unforeseeable future. A dental practice is no different. As a budding business, a dental practice should have a strong business plan in place for a number of reasons. Here’s why.
Why a Business Plan Is Essential for Your Dental Practice
Many dentists dream of owning their own dental practice. It is a dream often nurtured starting with a job prior to completing their education and training. You may have aced dental school, but starting a business is a whole other beast. It will serve you well, as it does other entrepreneurs, to put a solid plan in place that will act as your foundation and touchstone to guide you throughout the development of your practice.
So, why do you need a business plan for your dental practice? Well, for starters, it can be necessary to have a business plan in order to secure the money you need to open up your practice. You see, many lending agencies, including banks, require a business plan before they will offer you a business loan. Investors will also likely want to see a business plan before they give you their money. It makes sense, right? A business plan will set forth your financial plan as well as your business operating model. It can be a pulse check for lenders and investors to see how serious you are about setting up your practice for success instead of just winging it all while using their funds to do so.
As previously stated, your business plan can act as your touchstone, as your guidepost. This is true in many aspects of your dental practice, including your business finances. Financial management can be difficult under any circumstances and this can be especially true when you have the excitement and eagerness to kick your business off of the ground. Your business plan will give you financial blueprints. It will set parameters to keep your finances on track.
Setting forth your goals for your business in your business plan will also help you remain accountable. Have you lost sight of what you envisioned for your dental practice? Turn back to your business plan. Do you have goals for the growth and development of your dental practice? Tracking your progress through reviewing your dental practice can be very fulfilling, not to mention it means your business is growing and flourishing just as you envisioned.
Don’t know where to start to open your dental practice? Look at your business plan for your road map. In establishing your business plan, you can develop a framework for how your business will operate. You can go into as much detail as you want all the way down to what your office will look like. You can detail how you plan to generate income and any future income streams you may wish to later pursue.