Term
| Document that explains how a business is envisioned & how it’s activities will be carried out |
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Definition
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Term
| What does a business plan start with? |
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Definition
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Term
| What are some things that a business plan describes? |
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Definition
| describes target market, marketing plan, operations, long- and short-term goals, financial projections, risk assessment, & schedule |
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Term
Reasons to Have a Business Plan:
-Create a ___ ___
-___ an existing practice
-___ a practice, ___ a practice, Seek ___
-Give ___ to others (accountant, family members)
-Find new businesses with which to do ___
-___ with employees
-Make ___ (hiring, space, etc)
-Deal with ___
-Determine specific ___ |
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Definition
| new business; Grow; Sell; Value; investors; information; business; Communicate; decisions; displacement; objectives |
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Term
| If something uses clinic time, nothing else can be done then. Have to prioritize projects. Do all hours generate revenue |
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Definition
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Term
| A roadmap that guides the business into the future |
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Definition
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Term
| Communicates the purpose of the practice & the long-term vision of the business; the "reason for being". Affirms what the business is, what it does, what it stands for, and why it exists |
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Definition
| Vision and Mission Statement |
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Term
| Consider goals, responsibilities, & deadlines to guide the practice from start-up through __-__ years. Ex: To develop referral base from primary care providers or to dd hearing conservation products/services |
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Definition
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Term
-Establish ___ (from start-up through 3-5 years)
-Once achieved, ___ action items, and/or identify new ___ |
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Definition
| milestones; update; milestones |
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Term
-Schedule times (at least ___ in the first 3 years) to monitor progress
-___ a year after 3 years in business |
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Definition
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Term
| What does a formal business plan have it in? |
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Definition
-Executive summary (no more than one page)
-Mission & Vision Statements
-Practice overview
-Market assessment
-Competition analysis
-Human resources
-Operational plan
-Financials |
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Term
| What is the most important part of a business plan? |
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Definition
| Executive summary (no more than one page) |
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Term
| This describes audiology and it's importance |
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Definition
| Practice overview (a couple of pages) |
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Term
Market Assessment:
-___ part of BP; Have to consider potential ___
-Markets can include not only persons who visit clinics, but everyone that lives _________________________. |
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Definition
| Essential; market; within driving distance of the practice |
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Term
Competition Analysis:
-Competition has ___ drastically
-Assess competition in defined ___ area
-Recent ___ of requirement for medical clearance
-Evolving ___ channels
-Mergers & ___
-Discuss possible upcoming ___
-___% of gross income comes from dispensing hearing aids
-___% from diagnostics or treatment services |
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Definition
| changed; market; retraction; distribution; acquisitions; changes; 80; 20 |
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Term
Human Resources:
-Write so reader understands the ___ for each position, required qualifications, expected work product
-Tie hiring to ___/___. Ex: hire a second audiologists when there are sufficient patients on a waiting list (out 2 weeks) over a consistent period |
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Definition
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Operational Plan:
-Describes how business will ___
-___ to write
-___ provided
-Immediate and long-term ___ needs
-Lease or purchase ___
-Physical ___(s)
-Inventory & ____
-Description of patient ____
-Can divide this section into “___” and “___” categories |
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Definition
| perform; Hardest; Services; equipment; equipment; location; suppliers; flow; Development; Production |
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Financials:
-Purposes: Need to seek ___ and helps owner predict future ___ success
-Need realistic ___ based facts
-Base revenue projections on anticipated ___ & self-referrals over a specific time period
-Consider marketing strategies to discuss incremental numbers of ___ ___
-There are __ steps |
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Definition
| funding; financial; projections; referrals; new patients; 6 |
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Term
| What are the 6 financial items? |
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Definition
1. Sales forecast
2. Expense budget
3. Cash-flow statement
4. Income projection
5. Assets & liabilities (that are not on a P&L statement); used to create a balance sheet
6. Breakeven analysis |
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Term
| Spreadsheet that projects sales over 3 years. Has different sections (e.g. hearing tests, hearing aids) & indicates revenue by month for Y1; quarterly for next 2 years |
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Definition
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Term
| What are these examples of? rent & payroll |
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Definition
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Term
| expendable materials like probe tips, electrodes, EM impression materials |
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Definition
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| Costs that are involved to make the sales forecasted |
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Definition
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Expense Budget:
-Yields idea of costs relative to the ___ ___; ___ fixed costs means less risk
-Includes an estimate of ___ & ___ |
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Definition
| gross margin; LOWER; interest; taxes |
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Term
| multiply estimated profits by a “best guess” tax percentage rate |
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Definition
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| multiply estimated debt balance by an estimated interest rate |
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Definition
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Term
| Shows dollars moving in & out of the business |
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Definition
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Cash-Flow Statement:
-Partly based on sales ___, ___ sheet, & other assumptions
- For a new practice: start by projecting cash-flow for ___ months
-Uses invoices paid in cash, out 30 days, 60 days, 90 days, etc |
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Definition
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Term
In come Projection Pro Forma Profit & Loss (P&L) Statement:
-Forecasts for __ years
-Uses numbers from the ___ forecast, expense projections, and ___ ___ statement |
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Definition
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Term
| sales minus cost of sales |
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Definition
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Term
| gross margin less expenses, interest, and taxes |
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Definition
| Net profit (aka net income) |
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Term
As sets & Liabilities Balance Sheet:
-Want to project net worth of the business at the end of the
year; so have to consider liabilities & assets that are not in the P&L statement to create a ___ ___
-Start with ___ (LEFT side of balance sheet): estimate ___
on hand month by month, accounts receivable, inventory, & assets such as equipment, building(s), land
-___ (RIGHT side of balance sheet): accounts payable
(current bills that have not been paid yet), debt owed for long- term loans |
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Definition
| balance sheet; assets; cash; Liabilities |
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Term
| when practice expenses match sales or service volume |
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Definition
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Term
Breakeven Analysis:
-Use the __-year income projection to do this analysis
-After a certain period of time, the overall revenue will ___ the overall expenses, including interest
-Investors want to know breakeven point to see if they invested in a practice that is ___ fast
-Breakeven points determined by # ___, ___ done, hearing aids dispensed over a specific timeline |
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Definition
| 3; exceed; growing; referrals; procedures |
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Term
| What's a good credit score? What's an excellent credit score? |
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Definition
| 700 or above; 800 or above |
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