The Tooth Fairy
The Tooth Fairy is the dentistry practice of Steve Extractor. The Tooth Fairy will offer general and cosmetic dentistry to the citizens of Eugene, Oregon. Through a combination of industry benchmark customer service and flexibility, The Tooth Fairy will quickly gain market share. Steve will leverage the years he spent in private practice to model his new business. His past experience in conjunction with his forward-looking customer-centric business model will allow him to rapidly grow a large and loyal patient base. Profitability will be reached by month 10, and sales will reach comfortable levels by the end of year two. 1.1 Objectives
The objectives for the first years of operation include:
•To create a start-up organization from an already existing practice whose primary goal is to exceed customer's expectations. •To increase the number of clients by 20% per year through superior performance and word-of-mouth referrals. •To form a dentistry practice that is able to eventually survive off its own cash flow. 1.2 Mission
The Tooth Fairy's mission is to provide the finest dental care. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers. 1.3 Keys to Success
The key to success is to meet the market need and exceed customer's expectations.
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.
•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.
Existing Practice (the portion that is not a capital asset$20,000 Remodeling of office$10,000