Business Plan

Executive Summary

The purpose of this business plan is to demonstrate the strategic direction for Mollar Dent-all Clinic Dental Practice.The business owner, Dr Bekim Sali, has practiced for six years, and has owned thepractice since 2008.

It started within 50 m2 surface including 3 dental units , sterilization part and a small waiting room. In 2011 we had a huge reconstruction in organizing our everyday work and also enlarging our goals. Now, Mollar Dental Clinic is placed in 170 m2 surface and it’s equipment consists of Trophy X-Ray and Panoramic Device, Technician lab, three separate dental units for specialized services. Over past 2 years the practice has expanded with the creation of surgery, orthodontic and prosthetics separate units. This growth includes more working staff. The practice currently offers national health dentistry; dental restoration and preventive care as well as private dentistry. It is also a training practice, and has been training vocational trainees for some 2 years.

The focus for the last two years was as follows:

1) to improve staff performance by consolidating training and development, which hasbeen fully achieved

2) to increase customer satisfaction by focusing on continuous improvement; andexceeding customers increasing expectations in the service and treatment they receive,which has been partly achieved

3) To strategically market the service by identifying a brand for the business and using that brand to direct resources towards increasing the customer base and increasing customer loyalty, which has been partly achieved.

The focus of the next two years is as follows:1) Reduce costs2) Improve customer care3) Achieve of International Standardization Organizations Certificate3) Develop Dental Tourism strategy with travel agency4) Improve marketing5) Improve services

We know that our country is not well known, but we assure you that it would soon change. Macedonia has all the necessary conditions do become leader in dental tourism in Europe and wider.

Here are some facts to contribute to this statement.

Although a small country (with population of only 2 million people) and not yet a member of EU, still, Macedonia is situated in the center of Europe which makes it easily accessible from any other European country. Macedonian people are warm and hospitable, most of them well educated and almost all of them speaking at least one European language.

Dentistry is one of the medical branches that is developing rapidly and successfully in Macedonia.

Our team is consisted of experienced and respectful specialists covering all fields of dental medicine, many of whom have acquired their knowledge and training in some of the world’s most prestigious medical institutions.

We always follow the motto “We are not so rich to use cheap materials”, and our imperative is to use only the best materials and apply the latest methods in our work.

All our patients, prior to the intervention, are presented with the certificate for the materials that would be used and are given a warranty for each prosthetic intervention.

We are also aware that you might get doubtful when you see the price list. Why are the prices so much lower than the prices in your country for the same intervention? Is there some sort of scam?

We completely understand your doubtfulness, but you don’t have to worry, because the reason for such low prices is the low standard of living in Macedonia. The average monthly income in Macedonia is 250 – 300 €. We would really like to work for the same price as our colleagues from abroad, but due to the low standard of living, that is impossible and the prices for our services must be in accordance to the people’s financial abilities.

That may be our disadvantage, but it gives you an excellent opportunity to get European service, top quality materials and a gorgeous smile for a very low price.

Dental tourism is in it's initial phase now, but this will soon change. If you check, statistically, large numbers of patients are already coming to Macedonia from our neighboring country Greece on daily basis, but we would like to expand the trend to all European countries. We are sure that we will succeed in this because of the following reasons:

Not only will you receive first class dental service but, during your treatment, you will have an opportunity to have a nice holiday in our country.

Macedonia abounds with cultural and natural beauties. Here everyone can find something of interest. We have a team of guides that can take you to whichever destination you choose…

You want to taste delicious food, visit ancient sites and old mosques, eat traditional dishes or visit in one of the most beautiful lakes in the world…

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.

Mission

The Mollar Dental Clinic’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.

Company Summary

The Mollar Dental Clinic, is located in Skopje, Macedonia, 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, full ceramic crown and implantology.  The Mollar Dental Clinic is forecasted to reach profitability by month 10 and have respectable three year profits.

Company Ownership

The MOllar Dental Clinic is a private health organization owned by Dr. Bekim Sali.

Start-up Summary

The following are the required start-up costs:

The purchase includes a new software for our practice with detailed information, renew of front chair and desk, digitalization of both X-Ray devices for decreasing of x-ray exponation, Supply of dental technician lab, supply of devices for implantology like implant set, physiodispenser, surgery suction device and elementary surgery instruments.

The following list details what else will be needed.

Front desk renew means giving a new image of the front desk. A new software wich will give complete statistical information on everyday work and

monthly analysis for material and financial work. Also this will help in Pay Per Effective Work.

Digitalization of X-Ray units means low exponation of the staff on x-ray, short time of getting images at the working unit, more clear and easy to keep images, digitalization also minimizes service cost.

Dental technician lab supply include producing metal ceramic and full ceramic crowns (CAD CAM system) and bridges. MOllar Dental Clinic aims to work for other private clinics also.

Implantology service supply includes: additional education, physiodispenser, suction device, implantology set and start up implant set, also surgery instruments (piezon surgery).

Services

Mollar Dental Clinic provides both general improvements consisting primarily of cleaning and fillings, as well as cosmetics  improvements.  The cost for tartar cleanings are around $30, not including x-rays.  The cost for fillings ranges significantly depending on the material used from 10 – 25 $.   X-Ray cost is 15 $ per panoramic.

Cosmetic prices are metal ceramic crown per 70 $, full ceramic CAD CAM system 250-300 $, teeth whitening is 150 $.

Implant costs between 500 – 700 $. Apicotomy costs 100 $.

Mollar Dental Clinic will be billing customers at a per procedure rate.  Our goal is to sign agreements with insurance companies from abroad.

Market Analysis Summary

 While people of all ages require a general dentist, Mollar Dental Clinic will be concentrating his practice on cosmetic improvements, surgical implantology service and child education.  There are two distinct groups of people who use cosmetic dentistry.  The first group is young adults, a group of people that are concerned with their appearance.  The second group is seniors, equally concerned with their appearance, but for reasons, typically economic, have not had the ability to

get the work done before. Restaurative dentistry is now completed with implantology wich delivers a much more successful results.

Child, as new generation hope is targeted by education for prevention in our clinic and at school by special programs in coordination with preventive cosmetic product sale companies.

Market Segmentation

Mollar Dental Clinic has two distinct groups of customers:

Adults. Younger adults, typically 27-39 who are concerned with their appearance. This group can be further defined as both male and female with individual incomes over $ 10,000 a year.  While some of the target group are professionals, a large segment of this target segment are-live-at-home spouses who do not have a full time job.  This group is more likely than not to consider cosmetic surgery as a method from improving their appearance.

Seniors. This group sees dental work as a safe way to improve the way they look. They prefer cosmetic dentistry over plastic surgery, which is viewed as a risky cosmetic surgery that this group is less likely to use.  The seniors typically live off of more than $20,000 a year in retirement savings.  This group is almost entirely retired and their day is mainly composed of leisure time activities.

Target Market Segment Strategy

Mollar Dental Clinic will target two different segments with specific strategies in the marketing campaign.  While the Yellow Page advertisements , both printed and online, will develop visibility among both groups, the mouth-to-mouth will be specifically directed toward the "seniors."

Service Business Analysis

The dentist industry is following a trend away from general maintenance toward cosmetics. There is less rampant decay of teeth now relative to five to 10 years ago so dentists are concentrating on areas where there is increased demand.

Competition and Buying Patterns

There are two forms of competitors:

The generalist. This type of dentist has a practice centered around general maintenance and does not specialize.

The specialist. This type of dentist will have a general practice, but in addition to the general practice, they have an area that they specialize in, such as cosmetics.

The buying patterns of patients are based on referrals and trust.  People will chose a dentist preferably based on a referral if that is possible. People new to an area may be unable to get a referral so they find a service provider based on advertising or the Yellow Pages and if they feel comfortable with the provider then they tend to form a long-term relationship with them.

Mollar Dental Clinic aims full service institution so patient gets everything in one place.

Strategy and Implementation Summary

The marketing strategy will utilize three different methods to generate visibility for MOllar Dental Clinic’s practice. The sales strategy will be based on educating the consumer so that their decision is an informed one.  By educating the prospective patient, you are empowering them to make the decision rationally by themselves, making them feel comfortable with their choice.

Competitive Edge

The Tooth Fairy will leverage their two competitive edges to generate market share.

Customer service. Mollar Dental Clinic entire practice is based on a customer centric service model.  This business model is particularly emphasized when Dr. Bekim is working with patients.  The Dr. believes that the patient must make an informed decision regarding their cosmetic needs.  The Dr. will take significant time detailing what occurs during the procedure, any side effects the patient may notice, as well as the success/failure rate.  Only after the patient has been educated regarding the procedure will the Dr. allow the patient to go forward with the procedure.

Flexibility. The Dr. recognizes that his patients have busy schedules so he has tailored his practice around being flexible to meet the customers needs. This is an extension to their competitive advantage of customer service, however, the Dr.'s concentration on flexibility is worth noting separately.  The Dr. does not have set office hours in which to schedule appointments within.  He is willing to schedule an appointment at whatever time is needed, including nights or weekends. MOllar Dental Clinic works 7 days a week, including holidays.

Marketing Strategy

The marketing strategy will be based on developing visibility among prospective patients.  The first aspect of the marketing campaign is a large advertisement in the Yellow Pages which briefly lists the different procedures that the Dr. offers, as well as his flexibility. 

Another method to increase visibility will be free informational seminars that the Dr. will offer, typically through community organizations.  These seminars are an event where people can go and get more information concerning cosmetics as well as get a free individual consultation.  The seminars will be especially attractive to seniors who have more free time, as well as typically take advantage of free informational seminars. 

Sales Strategy

The sales strategy is based on educating the consumer as much as possible so that they are asking for the service instead of the Dr. trying to convince them they should have the procedure done.  This method is quite effective because it allows the consumer to feel that they arrived at the decision themselves instead of them agreeing to a sales pitch.

When a patient comes in to see the doctor, there is no charge for the initial consultation.  During this consultation, the Dr. will educate the customer on the different procedures and then analyze

the patient's particular needs.  The patient is then free to ask any questions they have.  After the customer is fully knowledgeable about all the different variables that will effect their procedure, they are then allowed to make a decision as to whether to have any work done.  This sales strategy is geared toward turning prospective customers into long-term customers who are then quite vocal to their friends about the pleasant experiences they had with Mollar Dental Clinic.

Budget Plan

Front desk renew 5.000$ A new software and hardware equipment

10.000$

Digitalization of X-Ray units 20.000$

Dental technician lab supply include producing metal ceramic and full ceramic crowns (CAD CAM system) and bridges.

110.000$

Implantology service supply includes: additional education, physiodispenser, suction device, implantology set and start up implant set, also surgery instruments (piezon surgery).

35.000$

Business promotion strategy needs

(TV, yellow pages, brochures, building web site etc.)

10.000$

TOTAL 190.000$