Dental Business Plan Template
Written by Dave Lavinsky
Over the past 20+ years, we have helped over 2,000 dentists create business plans to start and grow their dental practices. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a dental business plan template step-by-step so you can create your plan today.
Download our Ultimate Business Plan Template here
What Is a Business Plan?
A business plan provides a snapshot of your dental business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.
Why Dentists Need a Business Plan
If you’re looking to start a dental practice or grow your existing dental business you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your dental business in order to improve your chances of success. Your dental business plan is a living document that should be updated annually as your company grows and changes.
Sources of Funding for Dental Practices
With regards to funding, the main sources of funding for a dental practice are credit cards, personal savings, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.
Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan.
Your business plan should include 10 sections as follows:
Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.
The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of dental practice you are operating and the status; for example, are you a startup, do you have a dental practice that you would like to grow, or are you operating a chain of dental offices.
Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the dental industry. Discuss the type of dental business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.
In your company analysis, you will detail the type of dental business you are operating.
For example, you might operate one of the following types:
- General Dentist : this type of dentist will stick mostly to restorative dentistry and hygiene care in their office. This includes, but is not limited to, initial and emergency exams, including oral cancer screenings, cleanings and periodic hygiene exams, gum treatments for gum disease, white fillings to repair decayed or broken teeth, porcelain crowns, bridges and veneers, implant porcelain crowns and teeth whitening.
- Periodontist : this type of dentist focuses on problems that patients have with their gums, bone and tissues which support the teeth.
- Endodontist : this type of dentist is also known as a root canal specialist.
- Orthodontist : this type of dentist does braces on kids and adults to straighten their teeth, as well as dentofacial orthopedics.
- Pedodontist or Pediatric Dentist : this type of dentist specializes in treating children.
In addition to explaining the type of dental business you operate, the Company Analysis section of your business plan needs to provide background on the business.
Include answers to question such as:
- When and why did you start the business?
- What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new clinic openings, etc.
- Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.
In your industry analysis, you need to provide an overview of the dental industry.
While this may seem unnecessary, it serves multiple purposes.
First, researching the dental industry educates you. It helps you understand the market in which you are operating.
Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards cosmetic dentistry, it would be helpful to ensure your plan calls for plenty of cosmetic procedure options.
The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.
The following questions should be answered in the industry analysis section of your dental business plan:
- How big is the dental industry (in dollars)?
- Is the market declining or increasing?
- Who are the key competitors in the market?
- Who are the key suppliers in the market?
- What trends are affecting the industry?
- What is the industry’s growth forecast over the next 5 – 10 years?
- What is the relevant market size? That is, how big is the potential market for your dental practice. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.
The customer analysis section of your dental business plan must detail the customers you serve and/or expect to serve.
The following are examples of customer segments: adults, children, teens, elderly, etc.
As you can imagine, the customer segment(s) you choose will have a great impact on the type of dental business you operate. Clearly adults would want a different atmosphere and product options, and would respond to different marketing promotions than teens.
Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most dental practices primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.
Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.
Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.
Direct competitors are other dental businesses.
Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes federal agencies who provide direct services to military personnel or disadvantaged populations, and nonprofit providers . You need to mention such competition to show you understand that not everyone who seeks dental services will choose a private dental practice.
With regards to direct competition, you want to detail the other dentists with which you compete. Most likely, your direct competitors will be dental practices located very close to your location.
For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:
- What types of patients do they serve?
- What products do they offer?
- What is their pricing (premium, low, etc.)?
- What are they good at?
- What are their weaknesses?
With regards to the last two questions, think about your answers from the customers’ perspective.
The final part of your competitive analysis section is to document your areas of competitive advantage. For example:
- Will you provide superior dental services?
- Will you provide dental services that your competitors don’t offer?
- Will you make it easier or faster for customers to make an appointment?
- Will you provide better customer service?
- Will you offer better pricing?
Think about ways you will outperform your competition and document them in this section of your plan.
Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a dental practice plan, your marketing plan should include the following:
Product : in the product section you should reiterate the type of dental practice that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to general dentistry, will you offer cosmetic procedures?
Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.
Place : Place refers to the location of your dental practice. Document your location and mention how the location will impact your success. For example, is your practice located in a medical office building, in a commercial area, etc. Discuss how your location might provide a steady stream of customers.
Promotions : the final part of your dental business marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:
- Advertising in local papers and magazines
- Reaching out to local bloggers and websites
- Social media advertising
- Local radio advertising
- Banner ads at local venues
While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.
Everyday short-term processes include all of the tasks involved in running your dental business such as serving patients, procuring supplies, keeping the office clean, etc.
Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 1,000th patient, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.
To demonstrate your dental practice’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.
Ideally you and/or your team members have direct experience in the dental business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.
If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in dental practices and/or successfully running small businesses.
Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.
Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.
In developing your income statement, you need to devise assumptions. For example, will you serve 20 patients per day or 50? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.
Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your dental office, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.
Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.
In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a dental business:
- Location build-out including design fees, construction, etc.
- Cost of equipment like radiographs, dental chairs, dental instruments, computers, software, etc.
- Cost of maintaining an adequate amount of supplies
- Payroll or salaries paid to staff
- Business insurance
- Taxes and permits
- Legal expenses
Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office design blueprint or location lease.
Dental Business Plan Summary
Putting together a business plan for your dental practice is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the dental business, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful dental practice.
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Dental Business Plan FAQs
What is the easiest way to complete my dental business plan.
Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Dental Business Plan.
What is the Goal of a Business Plan's Executive Summary?
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Dental Business Plans
Craft a successful dental practice with a well-structured Dental Business Plan. Navigate growth, secure funding, and make informed decisions.
What is a Dental Business Plan?
A Dental Business Plan is a roadmap that outlines goals, strategies, and financial projections for a dental practice. It helps practitioners and stakeholders understand the business's direction and potential outcomes.
Typically created by dentists, entrepreneurs, or dental professionals looking to start their practices or expand existing ones, a well-structured dental business plan covers a range of essential aspects:
- Executive Summary: A concise overview of the plan, highlighting key points such as the practice's mission, target market, competitive advantage, and financial projections.
- Practice Description : Detailed information about the services offered, the dental team's qualifications, and the unique value proposition that sets the practice apart from competitors.
- Market Analysis: An assessment of the local dental market, including demographics, competition analysis, and market trends, to identify opportunities and challenges.
- Marketing and Sales Strategies: Plans for attracting and retaining patients, outlining approaches for online and offline marketing, patient engagement, and referral programs.
- Operational Plan: Details about the practice's day-to-day operations, including staffing, office layout, equipment, technology integration, and appointment scheduling.
- Financial Projections : Forecasts of revenue, expenses, and profitability over a defined period, along with assessing startup costs and potential financing sources.
- Legal and Regulatory Considerations: Ensuring compliance with dental regulations, licensing, insurance, and other legal obligations.
- Risk Assessment: Identify potential risks and strategies to mitigate them, ensuring a proactive approach to possible challenges.
- Exit Strategy: Plans for the future, whether growing the practice, selling it, or passing it on to another practitioner.
Creating a dental business plan requires careful research, analysis, and strategic thinking. It provides clarity to stakeholders and potential investors about the practice's viability and long-term prospects. By following a well-crafted business plan structure, dental practitioners can optimize their chances of success in the competitive dental industry.
Printable Dental Business Plan
Download this Dental Business Plan to guide your practice toward success.
How does it work?
Download the form.
Access the Printable Dental Business Plan form from a reputable source or website .
Collect all necessary information and data required to complete the form, such as practice details, market analysis, financial projections, and operational strategies.
Carefully read the form's accompanying instructions or guidelines to understand its structure and requirements.
Provide a clear and concise overview of your dental practice, including its mission, services, and unique value proposition.
Analyze the local dental market, including demographics, competition, and trends, to identify your practice's target audience and opportunities.
Marketing and Sales Strategies
Describe your plans for attracting and retaining patients through marketing, advertising, patient engagement, and referral programs.
Outline your practice's day-to-day operations, staffing structure, office layout, technology integration, and appointment scheduling process.
Project your practice's expected revenue, expenses, and profitability over a specified period, including startup costs and potential funding sources.
Legal and Regulatory Considerations
Address any legal and regulatory obligations relevant to your dental practice, such as licensing, insurance, and compliance with dental regulations.
Identify potential risks your practice might face and detail strategies to mitigate them effectively.
Outline your plans for the future of the practice, whether it involves growth, selling, or transitioning to another practitioner.
Proofread and Review
Thoroughly review the completed form to ensure accuracy, coherence, and completeness of the provided information.
Seek Professional Advice
If needed, consult with legal, financial, or business experts to validate the accuracy and effectiveness of your dental business plan.
Print and Store
Print a physical copy of the completed dental business plan for your records and safekeeping.
A good dental business plan is vital for managing your practice, attracting investors, and achieving your goals in a competitive industry.
Dental Business Plans Example (sample)
An illustrative example of a Dental Business Plan can offer valuable insights into the strategic approach for a dental practice. In this context, a Dental Business Plans PDF showcases a hypothetical dental practice's blueprint. The example might encompass a succinct executive summary outlining the practice's mission, target demographics, and competitive edge. It would delve into comprehensive market analysis, assessing local competition, patient demographics, and emerging trends. The sample plan would also elucidate effective marketing strategies, detailing how the practice aims to attract and retain patients through online and offline channels.
Operational intricacies, including staffing, office layout, and technology integration, would be covered. Financial projections would project revenue, expenses, and potential profits, accompanied by a breakdown of startup costs. This hypothetical plan would address legal considerations and potential risks and propose an exit strategy. Such a sample offers practitioners a tangible template to structure their own Dental Business Plan, ensuring a clear path toward establishing and flourishing in the dental industry.
Download this Dental Business Plan Example:
When would you use this Form?
A Dental Business Plan is a pivotal resource for dental practitioners and entrepreneurs alike, serving as a roadmap to navigate the intricate landscape of the dental industry. Here's when this resource becomes indispensable:
- Starting a New Practice: For dentists embarking on launching their own practices, a Dental Business Plan is essential. It outlines the vision, objectives, and strategies for a successful launch, helping practitioners anticipate challenges and set a clear trajectory.
- Expanding an Existing Practice : Established dental practices seeking growth benefit immensely from a Dental Business Plan. It guides expansion efforts by assessing new opportunities, understanding market dynamics, and refining operational and marketing strategies.
- Securing Financing: When seeking financial support from investors, lenders, or banks, a well-structured Dental Business Plan is crucial. It instills confidence in potential backers by presenting a thorough analysis of the practice's potential, financial projections, and risk mitigation strategies.
- Strategic Decision-Making : Even for ongoing practices, a Dental Business Plan is valuable. It aids in making informed decisions about introducing new services, adopting advanced technologies, or revamping marketing efforts.
- Professional Collaboration: When collaborating with other dental professionals, such as specialists or associates, a Dental Business Plan aligns expectations and provides a common roadmap for shared goals.
- Succession Planning : Practitioners considering retirement or transitioning their practice need a Dental Business Plan. It outlines the strategy for passing on the practice while safeguarding its legacy.
- Navigating Challenges : During challenging times like economic downturns or shifts in the healthcare landscape, a Dental Business Plan helps practitioners recalibrate strategies to remain resilient.
- Legal Compliance: Dental Business Plans ensure adherence to regulatory requirements, licensing, and ethical standards, safeguarding the practice from legal complications.
- Benchmarking Progress : Regularly revisiting the Dental Business Plan enables practitioners to measure their progress against initial goals, fostering continuous improvement.
Enhanced Clarity and Direction
Creating a Dental Business Plan provides practitioners with a clear roadmap for their practice's growth and success, outlining strategic goals and actionable steps.
The comprehensive analysis involved in crafting a Dental Business Plan ensures that decisions are well-informed, minimizing risks and increasing the likelihood of favorable outcomes.
When seeking investment or financing, a robust Dental Business Plan showcases the practice's potential, reassuring investors and lenders about the viability of the venture.
A Dental Business Plan aligns the entire dental team toward shared objectives, fostering a unified approach and promoting efficient teamwork.
By identifying potential challenges and outlining strategies to overcome them, a Dental Business Plan enhances the practice's preparedness to navigate uncertainties.
Implementing a Dental Business Plan lays the groundwork for sustainable growth, setting the stage for long-term success and profitability.
A Dental Business Plan is a pivotal resource that assists in planning and launching a dental practice and supports ongoing operations, expansion efforts, and strategic decision-making. Its structured approach empowers practitioners to proactively address challenges, leverage opportunities, and confidently steer their dental ventures toward success. Moreover, having access to free Dental Business Plans offers an economical way for practitioners to benefit from these advantages while efficiently planning for their practice's prosperous future.
Research & Evidence
The use of Dental Business Plans as a resource has evolved alongside the growth of the dental industry and the broader field of business management. Over time, dental practitioners and entrepreneurs recognized the need for a structured approach to strategically plan, manage, and grow dental practices. The history of Dental Business Plans can be traced back to the increasing complexity of the dental profession, the rising competition within the healthcare sector, and the demand for efficient practice management.
Research and evidence supporting the use of Dental Business Plans primarily stem from the realms of business management, entrepreneurship, and healthcare administration. Studies have consistently shown that businesses with well-defined plans are more likely to succeed and achieve their goals. Translating this principle into the dental field, practitioners began to understand that a comprehensive business plan provides a structured framework to articulate their practice's mission, objectives, market analysis, financial projections, and operational strategies.
Moreover, case studies and success stories of dental practices that utilized well-structured business plans further bolstered the evidence for their effectiveness. These stories often highlight how practitioners could secure financing, attract patients, streamline operations, and adapt to changing market conditions due to their proactive planning and strategic approach.
In recent years, advancements in technology have facilitated the creation and dissemination of Dental Business Plans. Online templates, software, and resources have made it easier for practitioners to access guides, samples, and tools to build their customized plans efficiently.
Commonly asked questions
Dental Business Plans help dental professionals start, manage, expand, or optimize their practices.
A solid business plan can help with starting or expanding a dental practice, seeking financing, making strategic decisions, and transitioning the practice plans for succession planning.
Dental business plans set clear goals, analyze the market, plan marketing strategies, detail operations, project finances, mitigate risks, secure financing, and monitor progress. They serve as essential roadmaps for dental practitioners, guiding them through practice management, growth, and decision-making.
Why use Carepatron as your Dental app?
Utilizing Carepatron as your dental app is a strategic choice that offers a comprehensive and streamlined solution for managing your dental business. Carepatron is the premier platform for dental professionals seeking efficient and effective management through a Dental Business app and Dental Business Software. Here's why Carepatron is the best place to fulfill these needs:
- Integrated Functionality: Carepatron offers an all-in-one solution, seamlessly combining various aspects of dental practice management into a single platform. From appointment scheduling and patient records to billing and treatment planning, it provides comprehensive functionality tailored to the specific needs of dental practices.
- Customized for Dentistry: Unlike generic business software, Carepatron is specifically designed for dental professionals. It understands the unique workflows, challenges, and requirements of dental practices, ensuring its features and tools align perfectly with your industry-specific needs.
- Efficient Patient Management: Carepatron's patient management capabilities empower you to maintain accurate and organized patient records, treatment histories, and appointment schedules. This enhances patient care, satisfaction, and loyalty while streamlining administrative tasks.
- Clinical Documentation: Carepatron's Dental Business Software strongly emphasizes clinical documentation, enabling you to maintain thorough and compliant patient records. This is vital not only for patient care but also for legal and regulatory purposes.
- Financial Management: Carepatron facilitates efficient financial management through features like automated billing, insurance claims processing, and financial reporting. It ensures that the financial aspects of your practice run smoothly, minimizing errors and maximizing revenue.
- User-Friendly Interface: Carepatron is known for its user-friendly interface, making it easy for dental professionals and their staff to navigate and use the software effectively. This reduces the learning curve and allows your team to leverage its capabilities quickly.
- Data Security: The platform prioritizes data security, offering robust encryption and compliance with industry standards. This ensures that your patient's sensitive information is well-protected.
- Babkins, J. (2022, August 16). Dentistry Business Plan sample. OGScapital . https://www.ogscapital.com/article/dental-office-business-plan-sample/
- Dental Office Business Plan - BPlans . (n.d.). Bplans: Free Business Planning Resources and Templates. https://www.bplans.com/dental-office-business-plan/
- Dentist Business Plan Template | Business-in-a-BoxTM . (n.d.). https://www.business-in-a-box.com/template/dentist-business-plan-D11957/
- FREE 3+ Dental Clinic Business Plan Samples in PDF | MS Word | Apple Pages | Google Docs . (n.d.). sampletemplates.com. https://www.sampletemplates.com/business-templates/plan-templates/dental-clinic-business-plan.html
- Lavinsky, D. (2023a). Dental Business Plan Template. Growthink . https://www.growthink.com/businessplan/help-center/dental-business-plan
- Lavinsky, D. (2023b). Dental Business Plan Template. PlanBuildr Business Plan Software . https://planbuildr.com/dental-business-plan-template/
- Lavinsky, D. (2023c). Dental Business Plan Template [Updated 2023]. BusinessPlanTemplate.com . https://www.businessplantemplate.com/dental-business-plan-template/
- Upmetrics. (2023, August 11). Dental Business Plan Template (2023) . https://upmetrics.co/template/dental-business-plan
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Dental Business Plans 101
Ready to create a business plan for your dental practice? The good news is that you can follow the same general guidelines as other small businesses.
Before you begin, ask yourself these key questions:
- Can you describe your potential dental practice in detail?
- Do you have an actionable marketing plan?
- Who is in the market? What are they doing right - or wrong?
- What pricing and payment policies are you considering?
- What’s your growth strategy?
Download Supporting Materials (Free for ADA members) Components of a Business Plan
Existing dental practices may also need to update their business plans, especially if they want to expand.
An updated plan needs:
- Your dental practice’s financial position
- Your current debt, if any
- Updated lender information and terms
- A recent financial comparison with similar businesses
- An analysis of your current costs and your “break-even” point
How to Write a Dental Practice Business Plan: Complete Guide
- January 22, 2023
👇 Check all our resources on dental practices 👇
Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your dental practice, first you will need to prepare a solid business plan.
In this article we go through, step-by-step, all the different sections you need in the business plan of your dental practice. Use this template to create a complete, clear and solid business plan that get you funded.
1. Dental Practice Executive Summary
The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and/or investors.
If the information you provide here is not concise, informative, and scannable, potential lenders and investors will lose interest.
Though the executive summary is the first and the most important section, it should normally be the last section you write because it will have the summary of different sections included in the entire plan.
Why do you need a business plan for a dental practice?
The purpose of a business plan is to secure funding through one of the following channels:
- Obtain bank financing or secure a loan from other lenders (such as a SBA loan )
- Obtain private investments from investment funds, angel investors, etc.
- Obtain a public or a private grant
How to write your dental practice’s executive summary?
Provide a precise and high-level summary of every section that you have included in the business plan of your dental practice. The information and the data you include in this segment should grab the attention of potential investors and lenders immediately.
Also make sure that the executive summary doesn’t exceed 2 pages in total: it’s supposed to be a summary for investors and lenders who don’t have time to scroll through 40-50 pages, so keep it short and brief.
The executive summary usually consists of 5 major sub-sections:
- Business overview : start by introducing your dental practice, where it is located, how big it is (space and number of dentists). Also mention the services and treatments you offer (if you have any specialty e.g. orthodontics for example), the average prices of treatments, whether they are typically reimbursed or not and to which extent. Finally, add the capacity of your clinic so investors and lenders get an idea of the size of your business before jumping in your financials later (the maximum number of clients you can receive in a day or a week).
- Market analysis : summarise the market where you will operate and provide a brief about the target audience (age, demographics), market size, competitors, etc. No need to provide granular data here, save it for the Market Overview section later on (or the appendix).
- People : hiring goes beyond the medical staff for a dental practice. Indeed, if you open a private practice, you may also need a receptionist, a cleaner, and other support staff members. And if you are partnering with other medical professionals, mention every individual’s role in the setup as well as their experience.
- Financial plan : how much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits? You can include here a chart depicting your key financials such as revenue, gross profits, and net profit
- Funding ask : what loan/investment/grant are you seeking? How much do you need? How long will this last?
Dental Practice Business Plan + Financial model
30+ slides Business plan template
5-year Excel Financial model
2. Dental Practice Business Overview
The business overview section is where you go into details about your dental practice. A few examples of questions you should answer here include:
- Why are you starting a dental practice in your area now?
- What’s the location, and why did you choose it?
- What dental services (or products) will you offer? Do you have any specialty (e.g. orthodontics)?
- What will be your operating hours? days?
- How many dentists will operate in your clinic? Any specialist(s)?
- What is your target market (youngsters, young professionals, retirees, etc.)?
- How many patients can you take care of at the same time (how many rooms are there)?
- What will be the legal structure of your dental practice?
Let’s look at different subsections that you must include:
a) History of the Project
Any business overview must start with explaining the history of the project. There are 2 components here:
- Passion & experience of the business owner
- Rationale behind starting a dental practice today
Passion & experience
You may or may not have prior experience working in the dental industry. So, make it clear in this section to help clients understand what to expect from your practice. Of course, prior experience gives you an edge over your competitors, showing the clients why they should choose your practice over the rest.
Most often, dentists working in clinics decide to start their own dental practices. Yet it isn’t always the case: if you have entrepreneurial experience and a background in the dental industry (but not necessarily a dentist), you may want to start a dental practice. If the latter though, you will likely start either a franchise or a large clinic (as you may struggle to cover you own salary with a small independent clinic instead).
What justifies your decision to open a dental practice in that location today? For example, if there’s a scarcity of dental practices offering cosmetic fillings in the area, you could jump into the opportunity to fill the gap.
b) Business Model
This section outlines the model you intend to adopt when running the business. It should answer the following questions;
- Will you start an independent dental practice or partner with an existing facility?
- Will you target the general population or a specific age group (children vs. adults)?
- Will you offer specialty treatments (e.g. orthodontics, surgery) or general dentistry consultations and treatments instead?
What are the different types of business models for dental practices?
Some of the most common dental practices include:
- Sole Proprietorship-Single Ownership
This is the simplest model of starting and operating a dental practice. In this form of ownership, you only need a single personal tax return, making it easy to operate and maintain your clinic. Dental practices established under sole proprietorship are typically independent and small clinics.
- Single Owner-Professional Corporation (PC)
Alternatively, you can incorporate your dental practice and enjoy the potential benefits like low tax rates and faster debt clearance. Remember, this model also suits associates willing to incorporate their businesses with other dentists acting as partners.
- Joint Ownership
In this practice model, two or more dentists collaborate to form a practice. Usually, this type of arrangement works between a small number of individuals working towards the same goal. This is the most common form of dental practice.
Joint ownership has a few advantages, like low startup costs and reduced administrative burden. Also, patients visiting the practice can be shared amongst the practicing dentists, with revenue divided proportionally amongst the partners.
With joint ownership becoming less common, many dentists opt for cost-sharing models. Here, the partnering dentists maintain their independence while sharing some expenses. The nature and type of shared expenses vary but may include equipment purchases, administrative expenses, and rent.
c) Products & Services
The dental services you offer will depend on the size of your practice and the business model. You should highlight this clearly to give the investors a sneak peek of your establishment. Here are a few examples of the treatments you can offer to your patients:
- Cosmetic fillings
- Dental cleanings
- Root canal therapy
- Dental sealants
- Teeth extractions
- Teeth whitening
- Dental veneers
- Dental crowns
- Dental bonding
- Preventive care
d) Pricing Strategy
This section explains the pricing structure you will use in your dental practice. Indeed, the prices of dental services vary by type and complexity. Of course, your rates should reflect what other dental offices in the area offer.
For example, a fully-fledged dental practice charges anywhere between $600 and $4,500 on dental services in the US. So, you may want to use that as your benchmark.
We strongly recommend you use here (or in your appendix) a pricing table of all your services and treatments along with the prices.
Along with the prices, make it clear whether the treatments are reimbursed by Medicare/Medicaid, the largest health insurance providers and to what extent. This will give investors and lenders (who aren’t necessarily experts in dental treatments) a good idea whether these treatments are affordable (or not) for your patients.
Also, it will allow them to tie your prices into the financial projections later on (see more on that later).
e) Legal Structure
Finally, your business overview section should specify what type of business structure you want. Is this a corporation or a partnership (LLC)? Who are the investors? How much equity percentage do they own? Is there a Board of Directors? If so, whom? Do they have experience in the industry?
3. Dental Practice Market Overview
A thorough understanding of the market is just as important as the location. By understanding the target audience, you will know which services to offer, depending on the demands of the population.
At the very least, the market overview section of your dental practice business plan should address the following;
- Dental practice status quo : how big is the dental industry in your region? What is the growth rate? And what are the factors influencing its growth or decline in the region?
- Competition overview: how many dental practices are in the region? How do they compare to your setup? How can you outshine them?
- Customer analysis: who exactly is your target audience? What type of dental services do they need? How often do they need dental services? How much are they willing to spend on dental services on average?
a) Dental Practice Industry Status Quo
How big is the dental practice industry in the us.
The dental practice industry in the US is estimated to be $162 billion in 2022.
Also, according to the latest reports, there are approximately 191,497 dental offices in the US: that’s an average annual turnover of approximately $850,000 per dental practice.
The major driving force behind the rapid growth is the increased consumer expenditure on healthcare services.
How big is the dental practice industry in your area?
After getting a clear picture of the dental industry in the US as a whole, narrow down to your location. It’s very likely that you won’t find the number anywhere (at least not for free). In that case, you can use our guide to estimate the TAM, SAM, and SOM for your business. Here is an example of how to do it below:
For instance, let’s assume there are 50 dental practices in the city where you want to operate. Because each has an average annual revenue of $850,000, it’s safe to assume that the dental practice industry is worth $42,500,000 in your city.
How fast is the dental practice industry growing in your city?
As part of the market overview, you should also estimate the growth rate of the dental industry in your region. Here, you can rely on the number of practices if you can’t find this information online (which you likely won’t).
For example, if the area had 45 dental offices in 2020 and 50 in 2022, the average annual growth rate would be 5.4%.
b) Competition Overview
Understanding who are your competitors and their strengths and weaknesses is very important for you to succeed in this industry. For example, patients might be looking for treatments and services existing dental practices cannot offer: this is where you could have an edge.
Start by understanding the services offered by your competitors, their marketing strategies, and their pricing structure. If all dental practices offer the same services, then what are their marketing strategies and revenue potential?
Here, you should add a comparative table after doing your research to give the lenders and investors the best possible overview of your main competitors.
c) Customer Analysis
This is where you should describe your target audience. A few factors to consider when breaking down this section include:
- Demographic data (age and gender distribution)
- Frequency of visits to dental practices
- Average monthly income
- Average expenses on dental services per visit (or per year)
- Most common types of treatments
4. Sales & Marketing Strategy
Discuss your marketing strategy at this point. You will be good to go if you can answer the following questions:
- Which marketing strategies will you use to acquire new customers?
- How will you track the success of the chosen marketing strategies?
- What will be your marketing budget?
- What are your unique selling points (USPs)?
- Will you include any offers or promotions to attract new clients?
What marketing channels do dental practices use?
Like any new business, you will need to invest significantly in marketing in the first few months / years to attract new customers, including from your competitors.
A few typical marketing channels for dental practice are:
- Word of mouth, recommendations
- Online local listing (Google Reviews)
- Social media content & ads
- Search ads (Google Ads)
Note: Be careful when choosing a marketing channel for your dental practice. Besides being appropriate, the chosen strategy must be ethical: unlike other businesses, medical services have very stringent limitations when it comes to marketing, which can change state by state. Make sure you check with a lawyer before you go ahead.
What are Your Unique Selling Points (USPs)?
In other words, how do you differentiate yourself vs. competitors?
This is very important to point out to investors and/or lenders your USPs as you will very likely need to win customers from competitors. A few examples of USPs for dental practices are:
- Quality of services
- Affordable treatments
- Promotions and discounts (for example, discount on the first(s) consultation(s) when there are a series of checkups and treatments later on)
- Location: your dental practice may be located closer to your patients vs. competitors
5. Management & People
You must address 2 things here:
- The management team and their experience/track record
- The organizational structure : different team members and who reports to whom?
Small businesses often fail because of managerial weaknesses. Thus, having a strong management team is vital. Highlight the experience and education of the other dentists that you intend to hire to oversee your dental practice.
For the dentists and general partners, describe their duties, responsibilities, and roles. Also, highlight their previous experience and track record.
For the receptionists, personal assistants, office managers, dental assistants, etc. no need to go into a lot of detail, especially as it’s likely you won’t have hired them yet before you get the funding you need, which is the objective of this business plan.
b) Organization Structure
Even if you haven’t already hired anyone yet, you must provide here a chart of the organizational structure defining the hierarchy of reporting.
6. Financial Plan
The financial plan is perhaps, with the executive summary, the most important section of any business plan for a dental practice.
Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors, a solid financial plan will prove them your dental practice is an attractive investment.
There should be 2 sections to your financial plan section:
- The startup costs of your dental practice
- The 5-year financial projections
a) Startup Costs
Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your project. For a dental practice, startup costs are all the expenses you incur before you open your clinic and start treating patients. These expenses typically are: the lease for the space, the renovation costs, the equipment and furniture.
Logically, the startup costs vary depending on the size of your clinic, the treatments you will offer (and therefore the equipment you need), the quality of the equipment and furniture, whether you buy the real estate or rent a commercial space, etc.
On average, it costs $170,000 to $550,000 to open a general dental practice with 2 dentists in the US.
Note that these costs are for illustrative purposes and may not be fully relevant for your business. For more information on how much it costs to open and run a dental practice, read our article here .
b) Financial Projections
In addition to startup costs, you will now need to build a solid 5-year financial model for your dental practice business plan.
Your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts.
As usual, keep it concise here and save details (for example detailed financial statements, financial metrics, key assumptions used for the projections) for the appendix instead.
Your financial projections should answer at least the following questions:
- How much revenue do you expect to generate over the next 5 years?
- When do you expect to break even?
- How much cash will you burn until you get there?
- What’s the impact of a change in pricing (say 15%) on your margins?
- What is your average customer acquisition cost?
You should include here your 3 financial statements (income statement, balance sheet and cash flow statement). This means you must forecast:
- The number of patients over time ;
- Your expected revenue ;
- Operating costs to run the business ;
- Any other cash flow items (e.g. capex, debt repayment, etc.).
When projecting your revenue, make sure to sensitize pricing, cost of raw materials (medical supplies) and the number of patients you will care for. Indeed, a small change in these assumptions may have a significant impact on your revenues and profits.
7. Funding Ask
This is the last section of the business plan of your dental practice. Now that we have explained what your dental practice’s business model is, the treatments you offer, your marketing strategy, etc., this section must now answer the following questions:
- How much funding do you need?
- What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
- How long will this funding last?
- Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)
If you raise debt:
- What percentage of the total funding the loan represents?
- What is the corresponding Debt Service Coverage Ratio ?
If you raise equity
- What percentage ownership are you selling as part of this funding round?
- What is the corresponding valuation of your business?
Use of Funds
Any dental practice business plan should include a clear use of funds section. This is where you explain how the money will be spent.
Will you spend most of the loan / investment in paying your employees’ salaries? Or will it cover mostly the cost for the lease deposit and the renovation of the building?
Those are very important questions you should be able to answer in the blink of an eye. Don’t worry, this should come straight from your financial projections. If you’ve built solid projections like in our dental practice financial model template , you won’t have any issues answering these questions.
For the use of funds, we also recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.
Dental Business Plan Template
Dental business plan.
You’ve come to the right place to create your Dental business plan.
We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their dental businesses.
Below is a template to help you create each section of your Dental practice business plan.
Bright Family Dental is a startup dental clinic located in Milwaukee, Wisconsin that will be owned and operated by Dr. Ingrid Williams. Dr. Williams has worked with a team of dentists at another local family local dentistry for the past 18 years and has become one of the most requested dentists in the area and has now decided to open a dental clinic of her own. Milwaukee is a large metropolitan area where there is a shortage of dental offices that can serve the growing population. Dr. Williams plans on recruiting a team of dental assistants and hygienists from the local college.
Bright Family Dental will provide a comprehensive array of dental services to all individuals that include cleanings, restoration, and cosmetic dental care. The dental clinic will be located in a mid to higher income area in town that is surrounded by other ancillary medical offices as well as retail stores and restaurants.
The following are the services that Bright Family Dental will provide:
- Dental cleanings and examinations
- Dental implants
- Porcelain veneers
- Crowns and bridges
- Dentures and partials
- Tooth extraction
- Teeth whitening
- Emergency dental care
Bright Family Dental will target all households within a 5-mile radius. This will include families with children, teenagers, and young adults, seniors, and individuals who are insured and uninsured.
Bright Family Dental will be owned and operated by Dr. Ingrid Williams. She will recruit a team of highly qualified and trained dental assistants and hygienists. She will also hire a receptionist to answer phone calls and administer scheduling and rescheduling of patients. The clinic will also employ a full-time financial coordinator to handle all billing, insurance processing, and bill payments.
Bright Family Dental will be able to achieve success by offering the following competitive advantages:
- Clean, modern, and welcoming dental office with the latest dental technology
- Comprehensive menu of services that covers most dental procedures
- Is willing to take uninsured patients and offer flexible payment plans
- Bright Family Dental offers the best dental pricing in the area
Bright Family Dental is seeking $150,000 in debt financing to launch its dental business. The funding will be dedicated towards securing the dental clinic, purchasing dental equipment and supplies, and purchasing the office equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs for the opening of the new dental clinic. The breakout of the funding is below:
- Dental office space build-out: $20,000
- Dental equipment and supplies: $50,000
- Office equipment and supplies: $10,000
- Three months of overhead expenses (payroll, rent, utilities): $50,000
- Marketing costs: $10,000
- Working capital: $10,000
The following graph below outlines the pro forma financial projections for Bright Family Dental.
Who is bright family dental.
Bright Family Dental is a startup dental clinic located in Milwaukee, Wisconsin. The clinic is founded by Dr. Ingrid Williams, a certified dentist who received her dental certification in 2004. Dr. Williams has worked with a team of dentists at another local family local dentistry for the past 18 years where she served children, teenagers, adults, and seniors to maintain a healthy and beautiful smile. Dr. Williams has become one of the most requested dentists in the area and has now decided to open a dental clinic of her own. Milwaukee is a large metropolitan area where there is a shortage of dental offices that can serve the growing population. Dr. Williams plans on recruiting a team of dental assistants and hygienists from the local college.
Bright Family Dental will provide a comprehensive array of dental services to all individuals that include cleanings, restoration, and cosmetic dental care. Bright Family Dental will be the dental clinic of choice in Milwaukee as it will implement a clean, friendly space with the latest dental technology. The dental clinic will be located in a mid to higher income area in town that is surrounded by other ancillary medical offices as well as retail stores and restaurants.
Bright Family Dental History
Bright Family Dental is the first startup business for Dr. Ingrid Williams. As an established dentist in the community, Dr. Williams has gained a reputation for providing excellent dental care to her patients of all ages. She realized that a particular segment of Milwaukee was lacking a sufficient comprehensive dental clinic and decided to pursue the opportunity of opening up her own dental practice.
Since incorporation, Bright Family Dental has achieved the following milestones:
- Registered Bright Family Dental, LLC to transact business in the state of Wisconsin.
- Has located an office space that will be ideal for a dental practice and signed a Letter of Intent
- Began the branding process of developing the clinic name, logo, and website
- Began recruiting a staff of dental assistants and hygienists, receptionist, and financial coordinator
Bright Family Dental Services
The following will be the services Bright Family Dental will provide:
Over the past five years, the Dental industry experienced largely positive growth, as advances in dental technology and improved access to care for older adults resulted in greater gains. The industry benefited from rising disposable income and a relatively low unemployment rate, resulting in more consumers with healthcare coverage.
The average industry operator is expected to experience relatively high profit. The industry has historically experienced high margins, as a result, the industry is expected to continue expanding over the next five years, with more operators entering the field.
Industry revenue is projected to grow, increasing at an annualized rate of 2.3%. In particular, demand for industry services will come from older adults, who tend to need more serious and more frequent dental care as they age. In addition, the expansion of dental care through Medicaid will enable low-income adults to access the care they need. A relatively low unemployment rate will also support coverage and thus accessibility of industry services.
Demographic profile of target market.
Bright Family Dental will target all households within the immediate area. This will include families with children, teenagers, and young adults, seniors, and individuals who have insurance. Bright Family Dental will also take uninsured patients and offer payment plans if they need help with out-of-pocket dental expenses.
The precise demographics for Milwaukee, Wisconsin are:
Bright Family Dental will primarily target the following customer profiles:
- Families with children
- Young adults
- Uninsured adults
Direct and indirect competitors.
Bright Family Dental will face competition from other companies with similar business profiles. A description of each competitor company is below.
Holmgren Family Dental
Holmgren Family Dental is a local dental practice that operates with the leadership of Dr. Andrew Holmgren. The practice consists of a team of hygienists and assistants who offer exams and cleanings, fluoride treatments, fillings, crowns, bridges, root canals, implant restorations, mouth guards, dentures, sealants, and dental x-rays. His practice consists mainly of children and teenagers who are in need of braces. Dr. Holmgren provides the initial braces evaluation and exams and then refers his patients to the nearby orthodontist whose practice is next door. In addition, Dr. Holmgren also offers treatments for snore prevention, sinus lift augmentation, and bone grafting. Service costs vary depending on the needs of the patient and treatment plan. The office uses MedPay Credit to offer payment plans for procedures that aren’t covered by insurance.
The Dental Specialists of Milwaukee
The Dental Specialists of Milwaukee provides family dental care with a focus on children’s dentistry. The clinic is committed to reducing the need for future extensive dental work and providing preventative dental care for its patients. Their list of services include general dentistry, children’s dentistry, oral surgery, orthodontics and braces, and aligners. With five locations throughout Milwaukee, the practice has ten dentists and a team of assistants and hygienists who are able to service the large patient base. As the largest dental group in Milwaukee, The Dental Specialists of Milwaukee take patients of all ages and incomes and offer flexible payment plans. They take most insurance as well as Medicaid. The clinic also offers a dental discount payment plan that has low monthly payments, no interest, and no credit check required.
Riley Dental provides comprehensive oral health care while providing excellent customer service. The head dentist, Dr. Ana Riley, focuses on providing patient-focused comprehensive dentistry. As a general dentist, Dr. Riley has the experience and skill needed to offer the highest quality of care and services for her patients to maintain supreme oral health. Riley Dental offers dental cleanings and exams, crowns and bridges, dental fillings, emergency dentistry, dentures and partials, root canals, and extractions. The office also offers cosmetic treatments like veneers and teeth whitening. Dr. Riley also works extensively with geriatric patients to provide whatever is necessary for their unique needs. Riley Dental has invested in state-of-the-art technology and a digital x-ray machine. The clinic offers flexible payment plans for services that are not covered by insurance.
Bright Family Dental will be able to offer the following advantages over their competition:
- Friendly, knowledgeable, and highly qualified team of dental professionals who also offer excellent patient care
- Comprehensive menu of services that provides excellent dental care for all of its patients
- Will take uninsured payment plans and offer a flexible payment plan for dental services
- Bright Family Dental offers the best pricing in town. Their pricing structure is the most cost effective compared to the competition.
Brand & value proposition.
Bright Family Dental will offer the unique value proposition to its clientele:
- Clean, modern, and welcoming dental office that has implemented the latest dental technology
- Competitive pricing
- Does not over schedule patients. All patients will be seen at their scheduled time so that the family doesn’t spend hours of their time at the dentist office.
The promotions strategy for Bright Family Dental is as follows:
Bright Family Dental will be located in a highly populated area with heavy traffic flow. The location has prime visibility to new and existing patients.
Word of Mouth/Referrals
Dr. Williams has built up an extensive list of contacts over the years by providing exceptional dental service and expertise to her patients. The majority of her patient base will likely follow her to her new practice.
Bright Family Dental will invest in professionally designed print ads to display in the local newspapers or flyers and publications.
Bright Family Dental will hire an outside advertising firm to develop the company’s website. The website will be well organized, informative, and list all the services that Bright Family Dental is able to provide. The website will also list their contact information and location. The marketing director will also manage the company’s website presence with SEO marketing tactics so that anytime someone types in the Google or Bing search engine “Milwaukee family dentist” or “dentist near me”, Bright Family Dental will be listed at the top of the search results.
The pricing of Bright Family Dental will be moderate and on par with competitors so customers feel they receive value when purchasing their services.
The following will be the operations plan for Bright Family Dental.
- Ingrid Williams will be the head Dentist and Operator of the dental clinic. She will employ the following:
- Keith Murray – Dental Hygienist
- Sarah Evans – Dental Assistant
- Brenda Marshall – Financial Coordinator who will process all insurance claims, billing, and accounts payable and receivable
- Rita Johnson – Receptionist who will handle all calls, files, and scheduling of patients
Bright Family Dental will have the following milestones complete in the next six months.
8/1/202X – Finalize contract to lease office space
8/15/202X – Finalize personnel and staff employment contracts for the Bright Family Dental team
9/1/202X – Order office and dental practice equipment and supplies
15/15/202X – Begin marketing efforts
10/22/202X – Begin moving into Bright Family Dental office
11/1/202X – Bright Family Dental opens its office for business
Dr. Ingrid Williams is a graduate of the University of Wisconsin Dental School and has been a practicing dentist at a local dental office for 18 years. During her tenure at the clinic, Dr. Williams performed a variety of dental services to patients of all ages.
Key revenue & costs.
The revenue drivers for Bright Family Dental are the fees for dental services performed at the office.
The cost drivers will be the cost of supplies necessary to maintain the dental services. Other expenses will be the payroll cost, rent, utilities, and marketing materials.
Funding Requirements and Use of Funds
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.
- Number of Patients Per Month: 80
- Average Cost of Services: $2,000
- Office Lease per Year: $100,000
Income statement, balance sheet, cash flow statement, dental business plan faqs, what is a dental business plan.
A dental business plan is a plan to start and/or grow your dental business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your dental business plan using our Dental Business Plan Template here .
What are the Main Types of Dental Businesses?
There are a number of different kinds of dental businesses, some examples include: General Dentist, Periodontist, Endodontist, and Pedodontist or Pediatric Dentist.
How Do You Get Funding for Your Dental Business Plan?
Dental businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
What are the Steps To Start a Dental Business?
Starting a dental business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Dental Business Plan - The first step in starting a business is to create a detailed dental business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your dental business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your dental business is in compliance with local laws.
3. Register Your Dental Business - Once you have chosen a legal structure, the next step is to register your dental business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your dental business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Dental Equipment & Supplies - In order to start your dental business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your dental business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.
- Read Time: 7 mins
- May 5, 2021
How to write a business plan for your dental practice
- Read Time: 7 min
The Floss / For Dentists / How to write a business plan for your dental practice
A business plan. Your practice simply has to have one. It’s going to lay out all the detailed information that helps you set your practice on the road to success. It’ll include market analysis, a marketing plan, competitive analysis, cash flow projections, and more.
In essence, a business plan allows you to track, monitor, and evaluate the progress of your practice over a period of time. It allows you to gauge how your practice is progressing against your original projections for your business. This, in turn, will make it easier to make an objective evaluation of your practice’s progress.
And it functions as an essential marketing document. It helps show stakeholders in your business that your practice is sustainable and worth investing in, whether that investment is monetary or time-based.
Your business plan should be a living document. As you gain experience and achieve goals, the plan should be modified to reflect changing goals and knowledge you have gained during the time the practice has been in operation.
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Business plans provide you with a detailed guideline on what steps you need to follow in order to ensure your practice is a success and that it achieves both your short-term and long-term goals. They are an invaluable strategic tool that every dental plan should carefully consider and craft before opening their business.
Each individual business plan will be unique to you and your business. However, here are some guidelines you can follow to make the process of creating your business plan easier. Some basic elements any business plan should incorporate include:
The executive summary is perhaps one of the most essential parts of the plan. It’s a short section at the start of the plan that summarizes the plan as a whole. Typically, this section is one to two pages in length.
Some elements that should be summarized as part of the executive summary are:
- Legal structure : Key to establishing your practice, determine what type of business it will be. If you’re setting up a partnership, this section should also include percentage ownership of each partner. Other elements that you should mention include resources like attorneys and accountants who will be part of your support team.
- Services provided : Explain which dental services you will be providing in your practice. This section will also clarify what your practice’s unique value proposition will be — what sets it apart from those of your competitors and other dentists near you .
- Goals : List the overall goals of your practice by priority. You should start with the mission statement and then list out the specific goals.
- Market analysis : An analysis of the dental landscape in your area and your practice’s ability to meet your identified needs.
- Marketing strategy : A quick summary of which strategies you will be employing. This section should be a response to the market analysis, and you should go into more detail in the marketing plan part of the business plan.
- Break-even point : This will also be part of the financial plan and analyses how viable your practice is at the current time.
- Operations plan summary : Summarize what systems you have in place in order to increase the growth of your practice. You will need to go into more detail in the operations plan section.
- Organizational / staffing structure : A summary of how many staff you have, their responsibilities and roles, and a forecast of personnel needs.
This section is key when you approach lenders for loans. It should be enticing to potential lenders and explain how you plan to make your practice a success. Therefore, it should be persuasive and compelling.
While this section goes at the start of your plan, you should write it last. This is because it is a summary of the rest of the plan, and you will need to have a detailed plan completed before you can write it.
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Description of products and services
In this section, you should elaborate on the types of services your practice will provide patients. Explain whether specialty services will be performed in-house or will be referred to outside practices and doctors.
If you’re acquiring an existing practice as opposed to opening a new one, clarify any changes you’ll be implementing to the products and services the practice is already offering.
This is where you detail the operational systems that will help you run your practice, meet your goals, and measure how effective you are at achieving your aims.
It will describe how you will procure the products needed to keep the business running, what personnel will be part of your business, and how you will manage your inventory. You’ll also detail factors like hours of operation, any licenses and permits you’ll require before opening, dental insurances that your practice will and will not accept, schedule for equipment maintenance, and so on.
One of the most important parts of your operations plan is detailing a one-year action plan. This will serve as a template for you to follow and help you detail what steps you need to take to ensure your plan is a success.
This section is the ‘nuts-and-bolts’ part of your plan and is likely to be the longest section of your business plan. Managing operations efficiently helps increase profitability and decrease stress. Without an efficient operations plan, you will find meeting objectives and goals a challenging task.
Market analysis and marketing plan
This is where you’ll document data on how your competitors operate. Some parts of your competitors’ practices you may want to look at include their online presence, SEO rankings, how they manage their digital content, and any other marketing efforts you think is relevant.
Once you have conducted a market analysis of your competitors, you’ll also need to document your own marketing plan. Elements you should include as part of your plan include an overview of your intended market and the type of patients you plan to target, their income level, age, and lifestyle.
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You should also clearly set out how you plan to set your business apart from competitors and maintain your own customer base. For example, if you operate in close proximity to another dental practice, how will you ensure patients looking to find a dentist visit your practice over that of your competitor?
Make sure to conduct a SWOT analysis. This is an analysis of your practice’s strengths and weaknesses, as well as the market opportunities you can take advantage of and the threats that your practice faces. This will help you better personalize your marketing plan to your goals while also considering outside factors that could hinder those goals and detailing how you will overcome those issues.
Your marketing strategy should focus on developing awareness of your practice amongst prospective patients. This will include the use of internal marketing (brochures, posters, newsletters, etc.), external marketing (direct mail, email, advertising, online marketing through websites and social media, etc.), and customer service to ensure your patients have a good experience and keep on returning to your practice.
One key element of the marketing plan for modern dental practices is to map out their website design. Having a well-designed website can help you stand out from competitors and can be hugely beneficial in attracting patients. For example, suppose patients are able to make a dentist appointment online quickly. In that case, they are more likely to choose your practice over a competitor that makes it difficult to schedule an appointment.
If your marketing strategy is going to be significantly different from that of your competitors, you should also explain the rationale behind your choice as part of your strategy.
A financial plan is a key component of the marketing plan and will be the section that’s of most interest to potential lenders. If you’re approaching banks or other individuals for a loan, this section will help them make an informed decision over whether or not to lend to you. Due to its importance, this section should be carefully planned out and meticulously written.
For new practices, the financial plan will be based on 12 and 24-month financial projections, as you won’t already have an existing performance to base it off. Some key elements that you should include in your financial plan include:
- Income projections over a 12 and 24-month period
- Your personal financial statement
- Collateral you’ll offer in exchange for a loan
- The total amount of funds that will be required by your practice for a 24-month period
- A plan for how the funds will be allocated
- Cash flow forecast
- Historical financial analysis looking into the viability of a dental practice
- Supporting documents that may be required by the lender, including a copy of your credit report, historical financial statements, five-year financial projections, and any other relevant document
Your financial plan should lay out a plan that accounts for the impact of outside financial influences that will affect your finances. These influences include competition, the economy, seasonal variations, and business cycles, as well as any other factors that will impact your practice’s financials.
Business plan checklist
If you’re just getting started on creating your business plan, there are a variety of templates and checklists that are easily available online. One free downloadable and printable checklist that you can use is this one .
Before you get started on making your business plan, the American Dental Association (ADA) you make sure to ask yourself some important questions, including:
- Can you describe your potential dental practice in detail?
- Do you have an actionable marketing plan?
- Who is in the market? What are they doing right — or wrong?
- What pricing and payment policies are you considering?
- What’s your growth strategy?
These will help provide you with a guideline you can refer back to when writing your detailed plan.
The ADA also provides a business plan checklist that is tailored to dental practices. You can download the checklist here .
FAQs about dental practice business plans
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How much does it cost to open a dental office?
While start-up costs will differ based on where your practice is located and the types of services you plan on offering, the estimated cost of starting a dental practice can be upwards of $450,000, with up to a third of that being equipment costs.
How profitable is a dental practice?
On average, dental practices can have about a 25% profit margin. This profit margin can be more, depending on your specialty, location, and overhead costs. It is also possible to increase the profit margin of a dental practice in a variety of ways. For new practices, it your business plan allow you a profit margin of at least 40%.
How much does a dental office make a year?
The amount you earn is dependent on the type of services your practice offers, including whether or not you offer specialty services. On average , general practices earn around $770,000 a year, while specialty practices can make around $1.1 million annually.
How do I write a business plan for a mobile dental clinic?
If you’re planning a mobile dental clinic, the process for writing a business plan is similar to that of writing a plan for a traditional practice. The steps you need to follow will be the same, and any lenders will expect you to present the same information as part of your business plan.
Remember, the executive summary and the financial plan are two key aspects of your business plan when approaching lenders. A well thought-out and well-written business plan does not only make your practice more appealing to lenders but it also provides you with a blueprint to follow in order to achieve personal and business-related goals. So when you’re writing out your business plan, regardless of whether it is for a traditional practice or a mobile clinic, make sure to include all the relevant details.
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How to Create a Business Plan for Your Dental Practice
Creating an effective business plan is essential for any business’s success—including dental practices. Business plans provide detailed information that helps businesses forge a path towards long-term growth and success. Such information may regard market analysis, marketing, cash flow projection, competitive analysis, and other relevant business information. By determining such information and crafting a plan, businesses can focus on the actionable steps necessary to turn their goals into a reality and achieve their short- and long-term objectives. As such, business plans are an invaluable strategic tool that all businesses should take the time to carefully craft. To learn how to create a business plan for your dental practice, continue reading.
The executive summary is an essential aspect of any business plan. It is a short section that summarizes the entirety of your business plan in a way that allows readers to quickly become acquainted with the key points and its main purpose. Typically, your executive summary should not exceed two pages.
This section is especially important when it comes to approaching lenders. It should entice the potential lender to help you receive the funding you need to get your practice up and running. Therefore, your executive summary should be written in a way that is persuasive and compelling. Let the lender know how you intend to make your business a success and express the vision of your practice.
While the executive summary will be included as the first section of your business plan, it should be the last area that you write. Because the executive summary is a compilation of all other areas of your business plan, you must have already flushed out such details before writing it.
Description of products and services
This section should provide information regarding the products and services that your dental practice offers. If you are acquiring an existing practice, make sure to detail any major changes that will be made to the products and services that were being offered by the previous practice owner. For example, if you are planning on offering additional services that the current owner is not offering, mention them here.
When creating a business plan for your dental practice, you should also include a section that details how it will be managed. In this section, detail information about the type of business structure your practice will have. For example, you should determine if your practice will be structured as a partnership, corporation, or sole proprietorship.
This section should also include a list of the management personnel and professional advisers that will comprise your team, such as financial partners, insurance agents, real estate advisors, attorneys, and business associates. In addition to compiling a list of key management professionals, you should provide further information on their job responsibilities. Such information will help prove to business lenders that you have a plan for how your office will function and that you have the necessary support system to be successful.
Competitive analysis and marketing strategy
In this section, you should include data on what your competition is doing regarding their online presence, digital content, SEO rankings, and other relevant data. Upon detailing the state of your competitor’s marketing efforts, you should then detail your own marketing plan.
Here, you should first provide an overview of your intended market and your target patient. Include information on their income level, age, and lifestyle. If you target patient is similar to that of a competing dental practice in the area, clearly state how you intend to set your practice apart from your competition and maintain a consistent customer base.
In addition, you should also detail a content map and provide information regarding your website design. If your practice will be taking a different approach from other competitors, note it in your strategy and clearly provide a rationale as to why.
One of the most important sections in your business plan is the financial plan. This section will be of chief interest to potential lenders, as it will help them make an informed business decision regarding whether they can approve your loan proposal. As such, it should be carefully planned and written in great detail. Here, you should list a variety of relevant financial information, such as the following:
- Projected income of your practice for the initial 12- through 24-month period
- Cash flow forecast
- Personal financial statement
- Information on how startup funds will be allocated
- Total funds required by your practice for the following two years
- Offered collateral
- Historical financial analysis
Supporting financial documents
In addition to the above information, you should also provide the necessary supporting documents that potential dental lenders can review when making their decision. If you are undergoing a dental practice acquisition , many of the necessary documents will be provided by the selling dentist. However, you will have to prepare some of them. Such financial documents to provide in this section may include:
- Present business financial statements
- Recent copy of your credit report
- Copy of current aging schedule
- Three years of historical financial statements, individual income tax returns, and business income tax returns
- Current personal financial statement
- Prospective financials for five years such as forecasts, cash flows, and projections
Such financial documents should be 90-days old or less to be considered current under lending guidelines.
In the financial section of your business plan, you should also provide information that displays you have accounted for the impact of financial influences. Such influences may include business cycles, competition, the economy, seasonal variations, and other events that may impact your practice’s finances. All other information included in your financial plan should account for such influences.
The operations section will likely be the last and longest section of your business plan. Here, you will get into the nitty-gritty details the day-to-day operations that occur at your practice. You should provide information regarding the following information to provide lenders with a clear picture of how your practice will function:
- Office hours
- Days of operation
- Necessary equipment and supplies
- Major suppliers you plan to source equipment from
- Equipment-maintenance schedules
- Ideal patient flow
- Dental insurances you do and do not accept
Henry Schein Professional Practice Transitions is the leader in dental practice sales and transitions. Whether you are purchasing or selling a practice, we can help you through every step of the process. Thanks to our extensive marketing resources, national network of dental transition consultants, and superior hands-on client services, your dental practice transition is sure to be as advantageous as possible. To get started on the transition process, schedule a free 30-minute phone consultation with Henry Schein Professional Practice Transitions today.
Starting a Practice: How to Write an Effective Dental Business Plan
Every business needs a dedicated business plan. Dental practices that are focused and prepared with a documented plan of action reach key milestones quicker, and can steer their business more effectively as it grows. Plus, without a dental practice business plan in place, you’ll find it hard to get funding.
Creating a thorough dentistry business plan isn’t as daunting as it may seem. Learn about all of the key considerations, best practices, and how to create your own dental business plan in our helpful guide.
Starting a Dental Practice Business Plan: Considerations
Writing a business plan for a dental practice is no different to compiling one for any other organization. However, the list of considerations varies depending on whether you are a new or existing practice.
Dental Business Plans for New Practices
Before you put pen to paper, work through the following questions to help you prepare:
- What will your new dental practice look like?
- Where is it located?
- What is your target market?
- What prices will you charge?
- How many competitors will you have?
- What are your competitors doing that you could do better?
- What is your growth strategy?
- Do you have a marketing plan prepared?
Dental Business Plans for Existing Practices
Updating a business plan for dental offices that are already up and running will require some additional details:
- Current financial position
- A list of debts owed, with updated lender details and payment terms
- An analysis of operational costs and your break-even point
- A financial comparison of your practice versus a competitor
Once you have all of this information, you can start compiling your dental business plan.
Dental Business Plan Template
Creating a dental office business plan may seem daunting, but it’s not as complicated as you might think. The beauty of a good dentistry business plan is that it’s a living document that can evolve as your practice grows and develops. It’s normal that some areas of your business grow faster than others. So as you progress you can even create separate dental business plan samples for each specialty split into general dentistry, orthodontics, periodontics, etc. Here is a breakdown of the sections you’ll need to cover in any thorough dental business plan.
Although this is the first section of your dental office business plan, it should be the last part you write because it summarizes all of the other sections. It should cover no more than two pages and be written professionally in a way that is compelling to potential investors. Be sure to include a mission statement explaining the company’s purpose, why it exists, and the overall goal of operations.
State the location of the company, days and hours of operation, what services are offered, a breakdown of company ownership, and details about the following expenses and assets:
- Start-up expenses – Legal fees, stationery, deposit payments, office renovation costs, insurance, etc.
- Fixed assets – Dentistry equipment , furniture, computers, display cabinets, etc.
- Operating costs – Payroll, rent, utilities, equipment maintenance, practice management software, dental supplies, marketing costs, etc.
- Liabilities and capital – Current cash balance, borrowing agreements, outstanding bills, the balance on loans taken, etc.
A detailed breakdown of every service offered and the costs for each. For example, a dentistry business plan for an orthodontist may list information and prices for braces, palatal expanders, and retainers. In contrast, a cosmetic practice may provide details about teeth whitening, gap removal, and veneers.
A breakdown of your consumer market is a vital component of any business plan. Dental practices typically segment customers into three categories — children, adults, and seniors. Record how your current market split matches your intended target market, including details on income, lifestyle, and any other relevant factors. This will help improve your marketing plan.
Collect as much data about your competition as you can, including how they manage their online presence, what digital platforms they are active on, their website SEO rankings, and any other relevant information that will help you develop a plan to beat them.
This section maps out exactly how you intend to achieve your goals. To do that, you’ll need to consider and stipulate your:
- Unique selling points (USPs) – The tactics you will use to gain a competitive edge, like customer service, quality, affordability, etc.
- Marketing strategy – What dental social media marketing channels and techniques you will use to attract and retain patients.
- Sales strategy – How you’ll sell, upsell, and cross-sell your products and services, and what dental insurance policies you’ll accept.
- Milestone targets – Specific targets you wish to achieve within a designated time frame.
Every dental business plan template should explain how the practice will be managed. Include a complete list of personnel, their qualifications, and responsibilities. In addition to full-time employees, you can also list business associates like insurance agents, real estate advisors, and attorneys. Always add a personnel plan for staff that are still required if your team has current vacancies.
This is one of the most important sections of your business plan and should be presented in great detail. You should include:
- Historical financial analysis
- A projected income forecast for the following 12-24 months.
- A cash flow forecast
- Your personal financial statement
- The total funding required for the next 12-24 months.
- Offered collateral
- Details on how funds will be allocated
You’ll also need to include supporting financial documents, which should be a maximum of 90 days old to comply with current lending guidelines:
- Financial statements
- Copies of credit reports
- Individual income tax returns
- Business income tax returns.
- A copy of the aging schedule
We hope this business plan dental practice sample will help you develop a detailed and actionable plan for your clinic. As your patient base grows, you’ll need to partner with an efficient practice management system. Cloud 9 Software specializes in innovative orthodontic practice management software that helps businesses optimize for success by improving staff productivity, user efficiency, and workflow processes.
Get in touch today or book a demo to learn how our cloud-based solutions can help your business grow.
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Dentistry Business Plan Sample
Dentistry business plan for your own dental practice
Do you want to start a dental office business? If you are a dentist and want to earn lots of money while also serving the society, you should definitely start this business. But before you consider how to start a dentistry business , you must prepare a comprehensive business plan for it. The business plan will help you in acquiring the license for your business from the state and will also help you take important decisions for the startup. In case you don’t know how to write a dentistry business plan, you can take help from this sample business plan of a dentistry business startup named ‘Spear’s Dental Clinic’.
2.1 the dental business.
Spear’s Dental Clinic will be a licensed, registered and insured dental consultancy clinic which will provide all sorts of dental consultancy and treatment services to its customers. The business will be located at a 10 minutes’ drive from the center of Boston and the location is ideal to open dental office .
2.2 Management of Dental Office
Spear’s Dental Clinic is a sole proprietorship owned by Dr. John Spear, an experienced dentist from Boston. The company’s main management framework comprises of sales executives, dentists, and nurses.
2.3 Customers of Dental Office
Our customers include people from all age groups such as children, teens, adults and senior citizens but children and teens will form the bulk of our customers since they are most likely to have dental problems.
2.4 Target of the Dental Business
Our business targets to be achieved within next three years are as follows:
Dental Office Summary
3.1 company owner.
Spear’s Dental Clinic is a sole proprietorship owned by Dr. John Spear. Dr. Spear is a famous dentist who has been practicing in Boston for more than 6 years.
3.2 Why the Dental Business is being started
Dr. Spear decided for dentistry start up to make profits in this industry while also serving the community.
3.3 How the Dental Business will be started
Spear’s Dental Clinic will be started in a leased location in Boston which was previously used as a small restaurant. The facility requires a lot of work so that it can be converted into a dental office and the company has already hired William Sons Contractors for this job. In addition to the usual inventory, the procured equipment will include high- and low- speed drills, an ultrasonic scaler (for removing prophylaxis), curing and placing instrument, dental seats and lights, x-ray film, filling material and the front desk equipment. The financial experts have forecasted following costs for the startup:
The detailed startup requirements are given below:
Services for customers
An important part of any start up dentistry business plan is the services it will provide to its customers because the planning of nearly all subsequent things depend on the provided services. Spear’s Dental Clinic will be a licensed, registered and insured dental consultancy clinic which will provide following services to its customers:
- Dental diagnostics services
- Dental examinations & consultations services
- Dental restorative & preventive services
- Dental treatments including gap removal, tooth whitening, tooth removal and implants
Patients can make a reservation with us by either visiting our clinic or through our official website.
Marketing Analysis of dental business
The most important component of an effective dentistry business plan is its accurate marketing analysis and a good dental practice business plan can only be developed after this stage. If you are starting on a smaller scale, you can do marketing analysis yourself by taking help from this dentistry business plan template or other dentistry business plan examples available online. If you are starting on a larger scale, it is always best to seek the counsel of marketing experts for developing a good dentistry business plan . The success or failure of a business totally depends upon its marketing strategy for business plan which can only be developed on the basis of accurate marketing analysis.Therefore, it must be considered before you develop your dentistry startup business plan . Dr. Spear acquired the services of marketing experts to carry out the marketing analysis for his dentistry business plan . He also went through various dentistry business plans available online before developing his own dental clinic business plan .
5.1 Market Trends
For learning the market trends of the dental industry, you will have to carry out an in-depth research. You can also take help from this dentistry business plan sample . The dental industry is among those industries who have a high propensity for profit and a very low failure rate. According to the American Dental Association (ADA), dental clinics are the 3rd highest category of the startup businesses which are most likely to survive. Dentists are among the highest earning professionals in the United States and their average income lies in the United States’ highest 8 percent incomes. According to IBISWorld, the dentist industry contributes more than £134 billion in the revenue of the United States every year. As of March 2018, there are 187,437 registered dentist clinics in the United States which are responsible for employing around 1,000,000 people. The industry’s growth rate is estimated to be 2.6 percent. This increase is contributed to many factors, of which one is the increase in education and prosperity of the population. The second factor is the increasing trend of dental insurances, due to which, many people became able to afford the dental services. According to a recent report, around 40 percent of the population has private dental insurance. In short, dental industry has a lot of potential and a dental clinic can be immensely profitable provided that you provide quality services and plan as well as market your business successfully.
5.2 Marketing Segmentation
Our target market is the residential community-based in Boston. As of 2016, there are more than 673,000 people in Boston which belong to varying backgrounds and most of them are financially stable. Out of the 252,700 households in the city, 20.4% contain children with age below 18 years, 25.5% contain married couples, 16.3% contain a female householder without a husband, and 54.0% are non-families. As per the population distribution, around 21.9% of the population is below 19 years of age, 14.3% are from 20-24, 33.2% are from 25-44, 20.4% are from 45-64, and 10.1% are more than 65 years of age. Analyzing the demographics is important since it gives you an idea of the market segmentation of your future customers. A successful and efficient marketing strategy can only be developed after we completely know our potential customers hence it must be duly incorporated in any dentistry business plan. Our business consultants have identified the following type of target audience which can become our future consumers:
The detailed marketing segmentation of our target audience is as follows:
5.2.1 Children & Teens:
Our first target group will be the children and teens aged below 19 years. This group is most likely to have dental problems like incorrect or misaligned jaw position, jaw joint disorder, under-bite, overbite, missing teeth, extra teeth, and crowded or crooked teeth. Moreover, due to their unhealthy habits like smoking, excessive intake of sweeteners, oral piercings for wearing jewelry, they are also frequently affected by other dental problems. That’s why this group will be the biggest contributor to our revenue.
Our second target group comprises of adults aged above 19 years. This group contains people who are sensible and conscious of their dental health and, thus, seldom encounter a dental problem. That’s why they have the least contribution to our revenue.
5.2.3 Senior Citizens:
The third target group comprises of senior citizens. This group, due to its old age, is much likely to be affected by various dental problems like dental decay, gum disease, poor fitting dentures etc. and has, therefore, more contribution than the adults. The detailed market analysis of our potential customers is given in the following table:
5.3 Business Target
Our main business targets to be achieved as milestones over the course of next three years are as follows:
- To become the best dental service in Boston within next five years of launch by providing high-quality services
- To achieve the net profit margin of £10k per month by the end of the first year, £15k per month by the end of the second year, and £25k per month by the end of the third year
- To balance the initial cost of the startup with earned profits by the end of the second year
- To open another dental office in downtown by the end of the third year
5.4 Product Pricing
After considering the market demands and the competitive nature of this business, Dr. Spear has decided to price his services slightly less (10% less) as compared to that of his competitors. This pricing strategy has been carefully selected considering many factors, especially the competition provided by established dental clinics in the locality like Neo Dental Clinic. By setting our services in slightly lower range, we hope to target more customers during the initial period of our launch.
After you have identified the market demand, market trends, and the potential customers of the startup, you must now define an effective strategy for attracting those customers toward you.
Like marketing analysis, sales strategy is also an important component of a good dentistry business plan and it must be properly developed before thinking about how to open dental office .
High Quality Business Plan and Professional Support
It was amazing to work with OGS Capital for our business plan. They promptly responded our enquires and delivered document on time.The document was well organized high quality and content.We succeded with Alex and his team support. We thank you guys again for professional approach and easy communication.
6.1 Competitive Analysis
The dental industry is one of the most competitive industries since there are more than 187,000 registered dental clinics in the United States. Boston also houses hundreds of established dental clinics who are providing quality services, especially the Neo Dental Clinic which will be our main competitor in the locality. However, our economical services will be our biggest competitive advantage since our services will cost about 15% less than that of our competitors. Although the residential community in our vicinity is well-established, still, this factor will cause an increase in our revenue by specifically targeting those people who are not covered by any dental insurance. Our second competitive advantage will be our exceptional customer service which, we guarantee, will be the best in town.
6.2 Sales Strategy
After carrying out a detailed analysis, our experts came up with the following brilliant ideas to advertise and sell ourselves.
- We will ensure a strong web presence by using SEO/SEM tactics.
- We will advertise our dental clinic in health magazines, newspapers, TV stations, and social media.
- We will arrange seminars and informational sessions in all local schools and other institutions to increase dental awareness among students and other people. These efforts will also result in the promotion of our business.
6.3 Sales Monthly
6.4 sales yearly, 6.5 sales forecast, personnel plan.
Personnel plan is also an important component of a good dentistry business plan template so make sure to duly consider it before thinking about how to open a dental office . The personnel plan of our company is as follows.
7.1 Dental Office Staff
Dr. Spear will act as the General Manager of the company and will initially hire following people:
- 1 Accountant for maintaining financial and other records
- 2 Sales Executives responsible for marketing and discovering new ventures
- 3 Dentists for dental treatments and checkups
- 5 Nurses for assisting the Dentists and undertaking day-to-day tasks
- 1 Technical Assistant for managing the company’s official website and social media pages
- 2 Customer Representatives for interacting with customers
- 6 Cleaners for maintaining a clean and hygienic environment in the clinic
All the employees will be hired by following strict testing procedures and will also be trained before onboarding.
7.2 Average Salary of Employees
The following table shows the forecasted data about the salaries of the employees for the next three years:
After you have prepared the dental office marketing plan and the personnel plan, it is time for you to prepare a detailed financial plan. The financial plan should craft a detailed map of all the expenses needed for the startup and how these expenses will be met by the earned profits. It is recommended that you hire a financial expert for guiding you through all financial aspects needed to open a dental office .
8.1 Important Assumptions
8.2 brake-even analysis, 8.3 projected profit and loss, 8.3.1 profit monthly, 8.3.2 profit yearly, 8.3.3 gross margin monthly, 8.3.4 gross margin yearly, 8.4 projected cash flow, 8.5 projected balance sheet, 8.6 business ratios.
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Dental Clinic Business Plan [Sample Template]
By: Author Tony Martins Ajaero
Home » Business ideas » Healthcare and Medical » Dental Clinic
Are you about starting a dental clinic? If YES, here is a complete sample dental office business plan template & feasibility study you can use for FREE .
If you are a dentist and are interested in starting a business in the healthcare industry, one of the most preferred options is to open a dental clinic. With minimal startup capital you can successfully launch your own dental clinic. Before choosing a location for your dental clinic, ensure that you carry out thorough market survey and feasibility studies.
It will pay you to locate your dental clinic in a location where you will attract people that can pay for your services. Starting a dental clinic is one of those businesses that requires you to first look at the existing laws in the country or the State you reside, before going all out to start the business.
This is so because there is hardly any country that does not pay serious attention on their health sector. The health industry is usually highly regulated so as to guide against the infiltration of quacks or substandard hospital, clinics or health facilities. Here is a sample dental clinic business plan that is capable of leading you all the way;
A Sample Dental Clinic Business Plan Template
1. industry overview.
No doubt, the healthcare cum medical industry of which dental clinic is a subset of is perhaps one of the fastest growing and largest industries in the world; this is so because the wealth of any nation depends on the health of the nation.
Obviously there is hardly any country where the healthcare industry is not handled with all seriousness. As a matter of fact, the healthcare industry is known to gulp well over 10 percent of gross domestic product (GDP) of most developed countries.
The dentists industry includes practitioners with Doctor of Dental Medicine (DDM), Doctor of Dental Surgery (DDS) or Doctor of Dental Science (DDSc) degrees. Businesses that operate in this industry are primarily involved in the independent practice of general or specialized dentistry or dental surgery.
Dentists are known to either operate private or group practices in their own offices (e.g. centers or clinics et al). There is indeed a very large market for healthcare service providers in the united states and of course in most parts of the world.
For instance, the World Health Organization (W.H.O) estimated that there are about 9.2 million physicians, 19.4 million nurses and midwives, 1.9 million dentists and other dentistry personnel, 2.6 million pharmacists and other pharmaceutical personnel, and over 1.3 million community health workers worldwide. This goes to show that the healthcare industry is indeed one of the largest segments of the workforce of any nation.
It is on record that in 2011, healthcare costs paid to hospitals, dental clinics, physicians, nursing homes , diagnostic laboratories, pharmacies, medical device manufacturers and other players in the healthcare system business value chain, consumed an estimated value of 17.9 percent of the Gross Domestic Product (GDP) of the United States.
This is indeed the largest of any country in the world. As a matter of fact, experts projected that the healthcare share of the GDP of the United States will continue to grow, reaching 19.6 percent of GDP by 2016. The Dentists industry is indeed a very massive industry in the U.S. Recent statistics has it that The Dentists industry in the United States of America, is worth over $129bn, with an estimated growth rate of 3.4 percent.
There are about 182,784 dental clinics in the United States and they are responsible for employing about 955,958 people that comprises of dentist, dental surgeons, nurses and other health and non – health workers. It is important to state that there are no dental clinics with a lion share of the available market in the United States.
If you are considering starting your own dental clinic in the United States, then you should try and work around the industry barriers. The truth is that, the barriers to entry in the dental clinic line of business are high and this is due to the significant regulatory requirements and the experience and strength of incumbents. For example, medical licensure creates a barrier to entry in the healthcare sector.
As a matter of fact, it is absolutely compulsory for any investor who is looking towards starting a dental clinic to meet extensive federal, state and local laws and regulations. These regulations relate to the adequacy of medical care, equipment, personnel, operating policies and procedures.
Regulations also involve maintaining adequate records, preventing fires, setting rates and complying with building codes and environmental protection laws. These regulations make it difficult and costly for aspiring entrepreneurs to enter the industry.
Over and above, if you are determined and ready to go all the way, you will surely succeed in establishing your own dental clinic in the United States of America and you will be glad you did because it is indeed a profitable line of business.
2. Executive Summary
Benny Blanco® Dental Clinic, LCC is a standard, licensed and certified dental clinic that will be located in the heart of Long Beach, California – United States of America. We have been able to acquire a standard facility that is highly suitable for the kind of dental clinic business we want to operate.
Benny Blanco® Dental Clinic, LCC is in the healthcare cum dentist industry to provide dental care services such as dental consultations and diagnostic services, preventative services, restorative dental services, prosthodontics (fixed and removable), orthodontics, surgical oral and maxillofacial services, nonsurgical endodontic services, independent general dental practicing, independent specialized dental practicing, dental surgery, dental examinations, and dental treatments et al. We are well trained and equipped to service the market segments that require dental care services.
We are in the dental care business to deliver excellent dental care services to all those who will patronize our services. We will also ensure that in the line of carrying out our duty, we comply with the laws and health regulations in California and The United States of America. Our employees are well trained and qualified to handle the wide range of dental care services.
Benny Blanco® Dental Clinic, LCC will operate a 24 hours 7 days a week dental service; our dental clinic facility will be opened round the clock to attend to clients (patients). We have a standard medical call center that is manned by trained health workers. Our workforce is going to be well trained to operate within the framework of our organization’s corporate culture and also to meet the needs of all our customers.
Benny Blanco® Dental Clinic, LCC will ensure that all our patients cum customers are given first class treatment whenever they visit our dental clinic. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large the numbers of our customers’ base grows.
Benny Blanco® Dental Clinic, LCC is a family business that is owned and managed by Dr. Benny Blanco Doctor of Dental Surgery (DDS) and his wife Johannes Blanco (Nurse). Dr. Benny Blanco is going to be the Medical Director (Chief Executive Officer) of the dental clinic;
He is a qualified and well trained Doctor of Dental Surgery (DDS) with well over 15 years of experience working as a dental surgeon and dentistry researcher with the United States’ government. He will be ably supported by his wife Johannes Blanco who has grown in her career to become one of the most respected senior nurses in Long Beach – California.
3. Our Products and Services
Benny Blanco® Dental Clinic, LCC is in the business of ensuring that our patient / clients are well treated and taken care of and our services will be carried out by highly trained professional in the dentists industry who know what it takes to give our highly esteemed customers (patients) value for their money.
These are the dental care services that Benny Blanco® Dental Clinic, LCC will be offering;
- Independent general dental practicing
- Independent specialized dental practicing
- Dental surgery
- Dental examinations
- Dental treatments
- Dental consultations and diagnostic services
- Preventative services
- Restorative dental services
- Prosthodontics (fixed and removable)
- Surgical oral and maxillofacial services
- Nonsurgical endodontic services
4. Our Mission and Vision Statement
- Our vision is to become the number one choice when it comes to dental care service delivery in the whole of Long Beach, California and also to be amongst the top 20 dental care service providers in the United States of America within the next 10 years.
- Benny Blanco® Dental Clinic, LCC is in business is to establish a first class dental clinic that will take care of both highly placed clients and lowly placed clients as long as they can afford our services.
- We want to become one of the leaders in the dentists industry in California, and in The United States of America.
Our Business Structure
Benny Blanco® Dental Clinic, LCC is a business that will be built on a concrete foundation. From the outset, we have decided to recruit only qualified professionals in the dentists industry to man various job positions in our organization.
We are quite aware of the rules and regulations governing the dentists industry which is why we decided to recruit only well experienced and qualified employees as foundational staff of the organization. We hope to leverage on their expertise to build our dental clinic brand to be well accepted in Long Beach California and the whole of the United States.
When hiring, we will look out for applicants that are not just qualified and experienced, but honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of five years or more. These are the positions that will be available at Benny Blanco® Dental Clinic, LCC;
- Chief Medical Director / Chief Executive Officer
- Dentist / Doctor of Dental Surgery (DDS)
Nurses / Nurse’s Aides
- Admin and Human Resources Manager
- Sales and Marketing Executive
- Accountant / Cashier
- Customer Care Executive
5. Job Roles and Responsibilities
Chief Medical Director / Chief Executive Officer:
- Responsible for providing direction for the business
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Attends to high profile clients and severe dental surgery cases
- Responsible for fixing prices and signing business deals
- Responsible for recruitment
- Responsible for payment of salaries
- Responsible for signing checks and documents on behalf of the organization
- Evaluates the success of the organization
Dentists / Doctor of Dental Surgery (DDS)
- Handles independent general dental practicing
- Responsible for dental surgery
- Handles dental examinations
- Handles dental treatments
- Handles dental consultations and diagnostic services
- Responsible for preventative services
- Handles restorative dental services
- Handles prosthodontics (fixed and removable)
- Responsible for orthodontics
- Handles surgical oral and maxillofacial services
- Handles nonsurgical endodontic services
- Responsible for managing the daily activities in the dental clinic (dispensary store)
- providing advice about health issues, symptoms and medications in response to customer enquiries
- Responsible for recruiting, training and managing staff
- Responsible for processing prescriptions and dispensing medication
- Responsible for ordering, selling and controlling medicines and other stock
- Responsible for meeting medical representatives
- Responsible for managing the organizations’ budgets
- Responsible for keeping statistical and financial records
- Responsible for preparing publicity materials and displays
- Handles marketing services
- Interfaces with third – party providers (vendors)
- Handles any other duty as assigned by the Medical Director.
- Responsible for managing our patients
- Handles dental and oral injury case management
- Responsible for offering medication management services
- Assists the dentists and dental surgeon in treating patients and during dental surgery
Sales and Marketing Manager
- Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Models demographic information and analyze the volumes of transactional data generated by customer
- Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, executes and evaluates new plans for expanding increase sales
- Creates new markets cum businesses for the organization
- Empowers and motivates the sales team to meet and surpass agreed targets
Accountant / Cashier:
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for Benny Blanco® Dental Clinic, LCC
- Serves as internal auditor for Benny Blanco® Dental Clinic, LCC.
Client Service Executive
- Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the chief executive officer in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
- Responsible for cleaning the dental clinic facility at all times
- Ensure that toiletries and supplies don’t run out of stock
- Cleans both the interior and exterior of the dental clinic facility
- Handle any other duty as assigned by the admin and HR manager.
6. SWOT Analysis
Benny Blanco® Dental Clinic, LCC is set to become one of the leading dental clinics in Long Beach, California which is why we are willing to take our time to cross every ‘Ts’ and dot every ‘Is’ as it relates to our business. We want our dental clinic to be the number one choice of all residence and corporate organizations in Long Beach – California.
We know that if we are going to achieve the goals that we have set for our business, then we must ensure that we build our business on a solid foundation. We must ensure that we follow due process in setting up the business.
Even though our Chief Medical Director (owner) has a robust experience in dentists industry, we still went ahead to hire the services of business consultants that are specialized in setting up new businesses to help our organization conduct detailed SWOT analysis and to also provide professional support in helping us structure our business to indeed become a leader in the dentists / dental care industry.
This is the summary of the SWOT analysis that was conducted for Benny Blanco® Dental Clinic, LCC;
Our strength lies in the fact that we have a team of well qualified professionals manning various job positions in our dental clinic.
As a matter of fact, they are some of the best hands in the whole of Long Beach – California. Our location, the Business model we will be operating on, opening 24 hours daily and 7 days in a week, multiple payment options, well equipped medical call center and our excellent customer service culture will definitely count as a strong strength for us.
Our perceived weakness lies in the point that we are just starting out and we may not have the required finance to sustain the kind of publicity that we intend giving the business and also the finance needed for the acquiring some of the latest medical and dental surgical equipment et al.
The opportunities that are available to dental care services providers are unlimited and we are going to position our dental clinic to make the best out of the opportunities that will be available to us in Long Beach – California.
Just like any other business, one of the major threats that we are likely going to face is economic downturn and unfavorable government policies (healthcare reform). It is a fact that economic downturn affects purchasing power. Another threat that may likely confront us is the arrival of a new and bigger / well established hospital or dental clinic brand in same location where our dental clinic is located.
7. MARKET ANALYSIS
- Market Trends
The Dentists cum dental care industry has benefited from favorable government policies, favorable demographic trends, technological advances and of course continuous awareness of oral hygiene. Nevertheless, better dental preventive care has slightly suppressed the revenue generated in the industry.
So also, limited patient access to dental care, due to nearly one-half of states in the United States only covering emergency dental care for Medicaid patients, has caused some dental clinics to lower prices and cut into profitability.
The dentist cum dental care industry has recently begun consolidating, largely due to the pressures of healthcare reform. The truth is that, the demand for dental care services has steadily grown over the last five years, as dental care reform legislation broadened insurance coverage and the plummeting unemployment rate increased disposable income.
As an investor in the dentists cum dental care industry, in order to maintain an advantaged position in this competitive industry, you should source for the most skilled and specialized dental care professionals.
One thing about this industry is that labor costs are on the high side. However, hospitals have also faced nurse and dentist shortages and have struggled to recruit qualified personnel. Industry profitability has generally risen over the past five years due to increases in service prices. No doubt the dentists cum dental care industry will continue to grow and become more profitable because of the increasing awareness of oral hygiene.
8. Our Target Market
Benny Blanco® Dental Clinic, LCC is in business to service a wide range of but corporate and individual customers in Long Beach – California. We will ensure that we target but self – pay customers (who do not have health insurance cover), and those who have health insurance cover.
Generally, every living person, whether old or young will at one point or the order need to visit a dental clinic due to dental or oral health challenge. The fact that we are going to open our doors to a wide range of customers does not in any way stop us from abiding by the rules and regulations governing the dentists cum dental care industry in the United States.
Our staff is well – trained to effectively service our customers and give them value for their monies. Our customers can be categorized into the following;
- The whole residents within the area where our dental clinic is located
- Corporate organizations such as banks, insurance companies, manufacturing companies, oil and gas companies et al
- Health Management Organizations (HMOs)
Our Competitive Advantage
Aside from the competition that exists amongst various dental clinics, they also compete against other healthcare services providers such as hospitals, health centers and community clinics et al. that provide dental care services.
To be highly competitive in the dentists cum dental care industry means that you should be able to deliver consistent quality dental treatment and dental care service and should be able to meet the expectations of your patients at all time; they should experience improvement in their health when they patronize your dental clinic.
Benny Blanco® Dental Clinic, LCC is coming into the market well prepared to favorably compete in the industry. Our dental clinic facility is well positioned (centrally positioned) and visible, we have enough parking space with good security.
Our staff is well groomed in all aspect of dental care service delivery and all our employees are trained to provide customized customer service to all our clients (patients). Our services will be carried out by highly trained professionals who know what it takes to give our highly esteemed customers value for their money.
We are going to be one of the few dental clinics in the whole of Long Beach – California that will run a standard medical call center for 24 hours a day and 7 days a week. We have enough trained dental health workers that are ready to run a shift system.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups dental care service providers in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Benny Blanco® Dental Clinic, LCC will ensure that we do all we can to maximize the business by generating income from every legal means within the scope of our industry. Below are the sources we intend exploring to generate income for Benny Blanco® Dental Clinic, LCC;
10. Sales Forecast
It is important to state that our sales forecast is based on the data gathered during our feasibility studies, market survey and also some of the assumptions readily available on the field. We have been able to critically examine the dental care market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.
The sales projection is based on information gathered on the field and some assumptions that are peculiar to similar startups in Long Beach – California. Below is the sales projection for Benny Blanco® Dental Clinic, LCC it is based on the location of our hospital and of course the wide range of our services and target market;
- First Fiscal Year-: $50,000 ( From Self – Pay Clients / Patients ): $100,000 ( From Health Insurance Companies )
- Second Fiscal Year-: $100,000 ( From Self – Pay Clients / Patients ): $150,000 ( From Health Insurance Companies )
- Third Year-: $150,000 ( From Self – Pay Clients / Patients ): $300,000 ( From Health Insurance Companies )
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
The marketing and sales strategy of Benny Blanco® Dental Clinic, LCC will be based on generating long-term personalized relationships with customers. In order to achieve that, we will ensure that we offer top notch all – round dental care services at affordable prices compare to what is obtainable in Long Beach – California.
All our employees will be well trained and equipped to provide excellent and knowledgeable dental care services and customer service. We know that if we are consistent with offering high quality dental care service delivery and excellent customer service, we will increase the number of our customers by more than 25 percent for the first fiscal year and then more than 40 percent subsequently.
Before choosing a location for our dental clinic, we conducted a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residence and corporate organizations in Long Beach – California. We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time.
We hired experts who have good understanding of the dentists cum dental care industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Long Beach – California.
In summary, Benny Blanco® Dental Clinic, LCC will adopt the following sales and marketing approach to win customers over;
- Introduce our business by sending introductory letters to residence, business owners and corporate organizations in and around Long Beach – California
- Advertise our dental clinic in community based newspapers, local TV and local radio stations
- List our dental clinic on yellow pages ads (local directories)
- Leverage on the internet to promote our dental clinic
- Engage in direct marketing
- Leverage on word of mouth marketing (referrals)
- Enter into business partnership with health management organizations, government agencies and health insurance companies.
- Attend healthcare related exhibitions / expos.
11. Publicity and Advertising Strategy
We are in the dental care line of business to become one of the market leaders and also to maximize profits hence we are going to explore all available conventional and non – conventional means to promote our dental clinic. Benny Blanco® Dental Clinic, LCC has a long term plan of opening our dental clinic in key cities around California which is why we will deliberately build our brand to be well accepted in Long Beach before venturing out.
As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand to the general public. Here are the platforms we intend leveraging on to promote and advertise Benny Blanco® Dental Clinic, LCC;
- Place adverts on both print (community based newspapers and magazines) and electronic media platforms
- Sponsor relevant community health programs
- Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our brand
- Install our Bill Boards on strategic locations all around Long Beach – California.
- Engage in road show from time to time in target communities
- Distribute our fliers and handbills in target areas
- Ensure that all our workers wear our branded shirts and all our vehicles are well branded with our dental clinic’s logo et al.
12. Our Pricing Strategy
Benny Blanco® Dental Clinic, LCC will work towards ensuring that all our services are offered at highly competitive prices compare to what is obtainable in The United States of America.
On the average, dental clinics, hospitals and healthcare service providers usually leverage on the fact that a good number of their clients do not pay the service charge from their pockets; private insurance companies, Medicare and Medicaid are responsible for the payment. In view of that, it is easier for dental clinics, hospitals and healthcare service providers to bill their clients based in their discretions.
However, in some cases dental clinics, hospitals and healthcare service providers also adopt the hourly billing cum per visit billing method. For example, it is easier and preferable for dental clinics, hospitals and healthcare services providers to bill oral injury case management services by the hour as against a fixed price.
- Payment Options
At Benny Blanco® Dental Clinic, LCC, our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our outlets;
- Payment by cash
- Payment via Point of Sale (POS) Machine
- Payment via online bank transfer (online payment portal)
- Payment via Mobile money
- Check (only from loyal customers)
In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any itches.
13. Startup Expenditure (Budget)
If you are looking towards starting a standard dental clinic, then you should be ready to go all out to ensure that you raise enough capital to cover some of the basic expenditure that you are going to incur. The truth is that starting this type of business does not come cheap.
You would need money to secure a standard dental clinic facility, you will need money to acquire medical equipment and supply and you would need money to pay your workforce and pay bills for a while until the revenue you generate from the business becomes enough to pay them.
The items listed below are the basics that we would need when starting our dental clinic in the United States, although costs might vary slightly;
- The Total Fee for Registering the Business in the United States – $750.
- Legal expenses for obtaining licenses and permits – $1,500.
- Marketing promotion expenses for the grand opening of Benny Blanco® Dental Clinic, LCC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
- Cost for hiring Business Consultant – $2,500.
- Cost for Computer Software ( Accounting Software , Payroll Software, CRM Software, Microsoft Office, QuickBooks Pro, drug interaction software, Physician Desk Reference software) – $7,000
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $3,400.
- Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600.
- Cost for dental clinic remodeling (construction of racks and shelves) – $20,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $300,000
- The cost for Start-up inventory (stocking with a wide range of pharmaceutical items) – $150,000
- Storage hardware (bins, rack, shelves,) – $3,720
- Cost for Nurse and Drugs Supplies (Injections, Bandages, Scissors, et al)- $3,000
- Cost for dental / medical equipment – $100,000
- The cost for the purchase of furniture and gadgets (Computers, Printers , Telephone, TVs, tables and chairs et al): $4,000.
- The cost of Launching a Website: $700
- Miscellaneous: $10,000
We would need an estimate of $700,000 to successfully set up our dental clinic in Long Beach – California. Please note that this amount includes the salaries of all the staff for the first month of operation.
Generating Funding / Startup Capital for Benny Blanco® Dental Clinic, LCC
Benny Blanco® Dental Clinic, LCC is a private business that is solely owned and financed by Dr. Benny Blanco and his wife Johannes Blanco (Nurse). They do not intend to welcome any external business partners, which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.
These are the areas Benny Blanco® Dental Clinic, LCC intends to generate our start – up capital;
- Generate part of the start – up capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from my Bank
N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $500,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.
One of our major goals of starting Benny Blanco® Dental Clinic, LCC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to offer our dental care services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Benny Blanco® Dental Clinic, LCC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our organizations’ corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List / Milestone
- Business Name Availability Check:>Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of facility and remodeling the facility to suit the design of our dental clinic: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of Dental / Medical Equipment et al: In Progress
- Purchase of the Needed furniture, racks, shelves, computers , electronic appliances, office appliances and CCTV: In Progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party / launching party planning: In Progress
- Compilation of our list of products that will be available in our pharmacy store: Completed
- Establishing business relationship with vendors (wholesale pharmaceutical companies): In Progress
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