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Executive Summary
Khan Smiles is a cosmetic dentistry practice owned by Pravesh Khan. The practice offers cosmetic dentistry to the residents of Nashville and surrounding areas. We also do general dentistry, but only if it is a prerequisite to a cosmetic procedure.
Pravesh has over ten years of experience in dentistry and has been managing Khan Smiles successfully for three years. Buying and remodeling an existing practice has been pivotal to our immediate success.
Our objectives for the business are:
- To further expand the practice’s existing client base by 10% through referrals and positive reviews of our service
- We aim to create a space where people can come to revise any dental work that they are unhappy with. Botched work is becoming more popular, and people struggle to find reputable dentists who can save their teeth. We will be that place.
Khan Smiles’ mission is to advocate for informed care. Too many people undergo cosmetic dentistry procedures that are not suitable for them. We also enforce a cooling period on all procedures, which means patients have to wait for a stipulated period before undergoing a procedure. This prevents cases of regret and avoids unnecessary revisions or irreparable work.
In the three years of Khan Smiles’ operation, we have established a culture of accountability in Nashville’s dentistry community. Our educational marketing and client-first approach have reduced the number of recklessly performed procedures. We pride ourselves on this and aim to continuously positively influence the industry.
Khan Smiles is seeking a $150,000 growth loan to fund equipment, working capital, marketing, and fees in the first 12 months.
Financial highlights:
| Metric | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Revenue | $1,486,250 | $1,621,380 | $1,748,900 |
| Gross margin | 54.2% | 54.4% | 55.6% |
| Net profit / (loss) | $87,624 | $126,383 | $181,543 |
Company Overview
Khan Smiles is a cosmetic dental practice in Nashville, Tennessee. Our services include teeth whitening, dental implants, and veneers.
Khan Smiles is owned by Pravesh Khan and is a professional corporation (PC). We have operated in the North Nashville area for three years now.
Pravesh had a partnership with a combined dentistry office in Portland. The office was split between general and cosmetic dentistry. However, the cosmetic department was not in enough demand to stay open.
Nashville had a cosmetic dentistry practice that was being sold because of retirement. Pravesh put in a bid, and the rest is history.
Cosmetic dentistry used to be inaccessible, but all cosmetic procedures are becoming more popular. With that, the quality of treatment has diminished to an extent. Our mission is to deliver services that consider our clients’ oral health and aesthetic wishes to ensure that they have long-lasting results.
Buying an existing practice cut our costs significantly. We are currently maintaining the equipment that came with the practice, which allows us more financial freedom.
Our objective is to maintain the practice's customer list and add to it by acquiring 10% more clients.
Legal structure: Professional Corporation (PC)
Mission: To deliver exceptional cosmetic dentistry to clients in Nashville, Tennessee, USA, building long-term relationships through quality, reliability, and deep expertise.
Objectives:
- Year 1: Grow the practice, reach revenue target of $1,486,250, and grow the client base by 10%
- Year 2: Expand service capacity, grow revenue to $1,621,380, and bring the new hygienist to a full patient list
- Year 3: Grow net profit to $181,543, strengthen market position, and evaluate expansion opportunities
Market & Customer Analysis
The cosmetic dentistry market is large and is projected to grow strongly worldwide over the next six years. North America accounts for a large share of global revenue and is expected to grow faster still.
The industry’s growth can be attributed to the recent technological advances in the industry and consumers’ increased disposable income globally. Dental tourism is a major contributor to the worldwide increase in market size.
Start-up costs are the primary barrier to entry for a dental practice. Dr. Khan wanted to open a practice but needed help to transition from being a partner at his previous practice to establishing a completely new practice in a new city. Buying the existing Peter’s Dentistry and inheriting its equipment and client base is a major factor in Khan Smiles’ current success.
Competitors in the dental industry typically structure their businesses in one of two ways.
Most dentists provide general dentistry services. Examples of such services are extractions, cleanings, root canals, and fillings. Others choose to specialize. Specialist dentists still treat oral issues, but their primary focus is enhancing teeth.
Khan Smiles specializes in cosmetic dentistry. Our clients come to us with the purpose of enhancing their teeth cosmetically. Our treatment plan consists of assessing their oral health and ensuring that it is good enough to perform their procedures and then performing them.
Customer analysis:
Everyone needs to go to the dentist, but who does? People of all ages use general dentistry, but the customer base is skewed towards people with more disposable income. Oral healthcare is important, but it is something people set aside in favor of more pressing needs such as food and rent.
The consumers of cosmetic dentistry have an even more distinct show of disposable income. Cosmetic dentistry is not seen as a necessity but a luxury, so usually, those with higher incomes are the ones partaking.
The ages of consumers are split between young adults and seniors. Both groups seek to improve their appearance, but their motivation differs.
Young adults often opt to remove healthy teeth in favor of veneers or implants to follow current trends. They also opt for quicker cosmetic services over long-term ones. An example of this would be getting veneers instead of braces or Invisalign.
The individuals in this segment typically earn more than $50,000 annually. Their occupations vary, with some working professionals and the majority stay-at-home spouses.
Seniors usually have signs of decay or other tooth damage when they come in. Implants are common in this segment. This group is usually retired, having waited until then to complete all their cosmetic procedures.
Khan Smiles will target both these demographics equally. Our marketing plan will detail how each group is reached.
Competitor analysis:
| Competitor | Strengths | Weaknesses |
|---|---|---|
| Aspen Dental | Established brand, wide reach | Higher price point, less personalised |
| Pacific Dental Services | Strong marketing, national presence | Generic offering, less specialist focus |
| SmileDirectClub | Competitive pricing | Standardised, less tailored service |
Khan Smiles’ competitive edge: Specialist expertise, personalised service, and a clear focus on the underserved segment of the market set us apart from the established players listed above.
SWOT analysis:
| Positive | Negative | |
|---|---|---|
| Internal | Strengths: Specialist expertise; experienced founder; strong client relationships; differentiated positioning | Weaknesses: Limited brand recognition as a new entrant; single location; reliance on founder capacity in early years |
| External | Opportunities: Growing market demand; underserved niche segments; digital marketing reach; referral network growth | Threats: Established competitors with greater resources; economic downturn reducing discretionary spend; regulatory changes |
Sales & Marketing Plan
Khan Smiles operates in the North Nashville area. There is no shortage of cosmetic dentists in Nashville, so we have to continue setting ourselves apart from the competition.
The rising interest in cosmetic dentistry has resulted in a slew of unethical behavior. Clients are allowed to undergo procedures they don’t qualify for or need. Khan Smiles believes that there is no one-size-fits-all treatment and that each patient should be informed about every aspect of the procedures they want done.
Our client relationship starts with a consultation. We will walk them through all the possible options that will give them their desired look. If what they want can be achieved with traditional dentistry or orthodontics, for example, someone who wants veneers when all they need is a correction on the alignment of their teeth, we will advise that they take that route.
Transparency is paramount to us. We want our client relationships to be built on trust. People refer service providers they trust; referrals are key to increasing sales.
Cosmetic dentistry is not the most accessible market for consumers. The cost of maintenance and services has been declared one of the main reasons people opt not to actualize their aesthetic dreams. Part of Khan Smiles’ sales strategy is to provide means for those people to get the care they need.
Our pricing model is inclusive. Our costs are still industry standard because there is a threshold for quality. However, our payment methods are where we shine. We offer laybys - a payment method where services are paid off in installments and completed at the end of the payment period.
Pricing strategy: Pricing is set to be competitive within the Nashville, Tennessee, USA market while reflecting the quality and specialist nature of the services delivered. All pricing is reviewed annually against market benchmarks.
Marketing channels:
- Digital presence (website + SEO) — professional website with content marketing to attract organic search traffic from clients searching for cosmetic dentistry in Nashville, Tennessee, USA
- Social media — active presence on relevant platforms to build brand awareness and engage prospective clients
- Referral programme — incentivised referral programme for existing clients; target 30% of new clients via referral by end of Year 2
- Local networking and partnerships — attendance at industry events and partnerships with complementary businesses in Nashville, Tennessee, USA
- Google Ads — targeted paid search campaigns for high-intent keywords when new treatment packages are introduced
Marketing budget Year 1: $75,300 (5% of projected revenue)
Additional marketing notes:
Khan Smiles wants to keep the ‘neighborhood dentist’ brand inherited from the previous practice. People in Nashville are big on community and have been coming to this office for generations.
So we want to keep that homely feel but update it a bit, like a family house going through renovations.
Our marketing will be a blend of what has worked historically and exploring new methods. Short-form social media content has attracted a lot of attention to businesses in our sector. Healthcare practices have gained a footing in social media, and the niche has become quite popular.
People can now relate to these healthcare professionals and feel less intimidated to approach their facilities. Using real-life examples of patients also helps people visualize themselves in the patient’s place. Reality TV shows about cosmetic procedures have been popular for a few years, and continuing that trend on social media is even more influential on customers.
Our traditional marketing methods include newspaper advertisements, radio advertisements, and seminars. These methods appeal to the senior segment of our target market. Most of our senior clients are retired. This knowledge inspired us to have advertisements in resorts and guesthouses around Nashville. This group spends a considerable amount of time on leisure activities, so taking our advertisement to these spaces will expose our business to them.
Operating Plan
Key tasks:
- Becky Lynch (Sales) — engage clients about the new maintenance package and increase sales by 10%. Deadline: end of Q2.
- Ross Brown (Finance) — restructure expenditures to free up 5% of revenue for profit. Deadline: before Q1 starts.
- Pravesh Khan (HR) — hire and train a dental hygienist. Deadline: end of Q2.
Staffing plan:
| Role | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Dr. Pravesh Khan (Owner / Director) | Full-time | Full-time | Full-time |
| Operations / Senior Staff | Full-time | Full-time | Full-time |
| Support / Junior Staff | Full-time | Full-time | Full-time |
Legal & compliance:
- All required licences and permits for cosmetic dentistry operations in Nashville, Tennessee, USA
- Professional liability and general liability insurance
- Data protection compliance in accordance with applicable laws
- Health & safety policies and risk assessments in place and reviewed annually
Management Team
Dr. Pravesh Khan, Founder and CEO: Pravesh has known he wanted to be in healthcare since middle school. He completed his studies and started working with a mentor in Portland, Oregon. His mentor specialized in cosmetic dentistry, and Pravesh took over his department when he retired. After building cosmetic experience for ten years, five of which he was the head of the department, he decided to venture to a different city. He purchased the practice that became Khan Smiles and set to work. Mary Johnson, Chief Financial Officer (CFO): Mary is a financial consultant who manages the books of healthcare practices. A single practice rarely earns enough to employ a full-time CFO, but Mary saw a way through that. Instead of only working with one healthcare office, she takes multiple on as clients. She worked with Pravesh’s old practice and followed him upon his request when Khan Smiles opened. Her experience in healthcare makes her the perfect candidate to strategize Khan Smiles’ financial success. Chrystal Stone, Human Resources Business Partner: Chrystal has two degrees in Human Resources. She spent 10 years as an HR Generalist in a large medical corporate firm and was ready for growth. Khan Smiles is the perfect opportunity for her to hold a more senior position and contribute to a firm. Rhiannon Campbell, Director of Operations: Rhiannon oversees everything that does not fall under the other management team members’ responsibilities. She and her capable team handle procurement, sales, marketing, and customer service.
Advisory support: The business will engage an experienced accountant and a business mentor through the local enterprise support network to provide financial oversight and strategic guidance over the next three years.
Financial Plan
Projected Profit or Loss Statement (in USD):
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Sales | $1,486,250 | $1,621,380 | $1,748,900 |
| Direct Cost of Sales | $282,400 | $306,500 | $329,700 |
| Production Payroll | $398,000 | $432,600 | $446,500 |
| Total Cost of Sales | $680,400 | $739,100 | $776,200 |
| Gross Margin | $805,850 | $882,280 | $972,700 |
| Gross Margin % | 54.2% | 54.4% | 55.6% |
| Operating Expenses | |||
| Sales and Marketing Expenses | |||
| Sales and Marketing Payroll | $58,000 | $59,700 | $61,500 |
| Advertising/Promotion | $66,900 | $71,300 | $76,400 |
| Other Sales and Marketing Expenses | $8,400 | $8,800 | $9,200 |
| Total Sales and Marketing Expenses | $133,300 | $139,800 | $147,100 |
| General and Administrative Expenses | |||
| General and Administrative Payroll | $194,000 | $199,800 | $205,800 |
| Depreciation | $64,914 | $68,143 | $73,257 |
| Dues and Subscriptions | $5,900 | $6,100 | $6,300 |
| Professional Fees | $41,600 | $42,900 | $44,200 |
| Rent | $83,200 | $85,700 | $88,300 |
| Software Purchases | $18,400 | $19,100 | $19,800 |
| Insurance | $21,800 | $23,200 | $24,600 |
| Telephone and Internet Access | $4,800 | $5,000 | $5,200 |
| Utilities | $14,600 | $15,200 | $15,800 |
| Miscellaneous | $12,700 | $13,400 | $14,100 |
| Payroll Taxes | $58,500 | $62,289 | $64,242 |
| Total General and Administrative Expenses | $520,414 | $540,832 | $561,599 |
| Total Operating Expenses | $653,714 | $680,632 | $708,699 |
| Profit Before Interest and Taxes | $152,136 | $201,648 | $264,001 |
| EBITDA | $217,050 | $269,791 | $337,258 |
| Interest Expense | $41,220 | $41,670 | $34,200 |
| Taxes Incurred | $23,292 | $33,595 | $48,258 |
| Net Profit | $87,624 | $126,383 | $181,543 |
| Net Profit/Sales | 5.9% | 7.8% | 10.4% |
Projected Cash Flow Statement (in USD):
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Cash Received | |||
| Cash from Operations | |||
| Cash Sales | $1,040,375 | $1,134,966 | $1,224,230 |
| Cash from Receivables | $440,994 | $480,333 | $518,932 |
| Subtotal Cash from Operations | $1,481,369 | $1,615,299 | $1,743,162 |
| Additional Cash Received | |||
| New Long-term Liabilities | $150,000 | $0 | $0 |
| Subtotal Cash Received | $1,631,369 | $1,615,299 | $1,743,162 |
| Expenditures | |||
| Expenditures from Operations | |||
| Cash Spending | $708,500 | $754,389 | $778,042 |
| Bill Payments | $616,170 | $670,275 | $713,874 |
| Subtotal Spent on Operations | $1,324,670 | $1,424,664 | $1,491,916 |
| Additional Cash Spent | |||
| Long-term Liabilities Principal Repayment | $58,000 | $82,000 | $84,000 |
| Purchase Other Current Assets | $2,800 | $1,800 | $1,700 |
| Purchase Long-term Assets | $68,400 | $22,600 | $35,800 |
| Dividends | $0 | $60,000 | $80,000 |
| Subtotal Cash Spent | $1,453,870 | $1,591,064 | $1,693,416 |
| Net Cash Flow | $177,499 | $24,235 | $49,746 |
| Cash Balance | $295,499 | $319,734 | $369,480 |
Projected Balance Sheet (in USD):
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Assets | |||
| Current Assets | |||
| Cash | $295,499 | $319,734 | $369,480 |
| Accounts Receivable | $66,881 | $72,962 | $78,700 |
| Inventory and Other Current Assets | $21,300 | $23,100 | $24,800 |
| Total Current Assets | $383,680 | $415,796 | $472,980 |
| Long-term Assets | |||
| Long-term Assets | $454,400 | $477,000 | $512,800 |
| Accumulated Depreciation | ($206,914) | ($275,057) | ($348,314) |
| Total Long-term Assets | $247,486 | $201,943 | $164,486 |
| Total Assets | $631,166 | $617,739 | $637,466 |
| Liabilities and Capital | |||
| Current Liabilities | |||
| Accounts Payable | $33,642 | $35,832 | $38,016 |
| Subtotal Current Liabilities | $33,642 | $35,832 | $38,016 |
| Long-term Liabilities | $504,000 | $422,000 | $338,000 |
| Total Liabilities | $537,642 | $457,832 | $376,016 |
| Paid-in Capital | $150,000 | $150,000 | $150,000 |
| Retained Earnings | ($144,100) | ($116,476) | ($70,093) |
| Earnings | $87,624 | $126,383 | $181,543 |
| Total Capital | $93,524 | $159,907 | $261,450 |
| Total Liabilities and Capital | $631,166 | $617,739 | $637,466 |
| Net Worth | $93,524 | $159,907 | $261,450 |
3-year profit & loss projection:
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $1,486,250 | $1,621,380 | $1,748,900 |
| Clinical supplies and direct labour | $680,400 | $739,100 | $776,200 |
| Gross profit | $805,850 | $882,280 | $972,700 |
| Gross margin | 54.2% | 54.4% | 55.6% |
| Salaries and wages | $252,000 | $259,500 | $267,300 |
| Marketing and advertising | $75,300 | $80,100 | $85,600 |
| Rent and utilities | $97,800 | $100,900 | $104,100 |
| Other operating costs | $228,614 | $240,132 | $251,699 |
| Total operating expenses | $653,714 | $680,632 | $708,699 |
| Interest and income tax | $64,512 | $75,265 | $82,458 |
| Net profit / (loss) | $87,624 | $126,383 | $181,543 |
Break-even analysis:
- Estimated fixed monthly costs: $54,500
- To cover fixed costs, Khan Smiles needs to generate approximately $100,500 in monthly revenue
- Projected Year 1 revenue of about $123,900 a month is above this level
Key financial assumptions:
- Revenue growth of 9.1% in Year 2 and 7.9% in Year 3 based on planned capacity expansion and marketing investment
- Clinical supplies and direct labour estimated at 44-46% of revenue throughout the forecast period, consistent with industry benchmarks
- Staffing costs, including the dentist's salary, set at 41-44% of revenue, with a hygienist added in Year 1
- Marketing budget fixed at about 5% of revenue; reviewed quarterly and adjusted based on channel performance
- No bad debt assumed; payment terms enforced from day one
Funding requirements:
Khan Smiles is seeking $150,000 to fund the following:
| Use of funds | Amount |
|---|---|
| Equipment and fit-out | $60,000 |
| Working capital | $52,500 |
| Marketing campaigns | $22,500 |
| Legal, licences, and professional fees | $15,000 |
| Total | $150,000 |
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