Dental Practice Business Plan Template & PDF Example
- September 4, 2024
Creating a comprehensive business plan is crucial for launching and running a successful dental practice. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your dental practice’s identity, navigate the competitive market, and secure funding for growth.
This article not only breaks down the critical components of a dental practice business plan, but also provides an example of a business plan to help you craft your own.
Whether you’re an experienced entrepreneur or new to the healthcare industry, this guide, complete with a business plan example, lays the groundwork for turning your dental practice concept into reality. Let’s dive in!
Our dental practice business plan is designed to be clear and comprehensive, covering all the essential aspects necessary for a detailed strategic outline. This plan elaborates on the practice’s operations, strategic direction, market positioning, competitive analysis , management structure, and financial projections, among other key components.
Here are the primary sections of our Dental Practice Business Plan:
- Executive Summary : A concise overview of your dental practice, showcasing the business concept, market positioning, leadership team, and a snapshot of financial plans.
- Practice & Location : Details about the practice’s environment, equipment, and special features.
- Treatments : Information on the range of dental services provided, including general dentistry, cosmetic procedures, and pricing models.
- Key Stats : Industry size , growth rates, and critical statistics relevant to the dental sector.
- Key Trends : Current trends influencing the dental industry, such as advances in dental technology or shifts in patient care standards.
- Key Competitors : Assessment of main competitors and how your practice stands out from them.
- SWOT : A detailed analysis of strengths, weaknesses, opportunities, and threats.
- Marketing Plan : Describes promotional tactics to attract new patients and retain existing ones, including digital marketing and community engagement.
- Timeline : Critical milestones and objectives from the opening phase to expansion, covering at least the first year.
- Management : Introduces the dental practice’s management team, emphasizing their roles, expertise, and how they drive the practice towards its goals.
- Financial Plan : Projects the practice’s financial performance over 5 years, detailing expected revenue, expenses, and outlines the funding strategy.
Dental Practice Business Plan Template (Download)
Fully editable 30+ slides Powerpoint presentation business plan template.
Download an expert-built 30+ slides Powerpoint business plan template
Executive Summary
The Executive Summary introduces your dental practice’s business plan, offering a concise overview of your clinic and its services. It should detail your market positioning, the range of dental care and treatments you provide, its location, size, and an outline of day-to-day operations.
This section should also explore how your dental practice will integrate into the local healthcare market, including the number of direct competitors within the area, identifying who they are, along with your practice’s unique selling points that differentiate it from these competitors.
Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the practice’s success. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your dental practice’s financial plan.
Dental Practice Business Plan Executive Summary Example
Business Overview
In the business overview , you should clearly define your dental practice’s characteristics, including the name, location, facility details, and range of dental services offered. Highlighting the unique aspects of your practice is crucial to set it apart in the dental market.
Example: “SmileBright Dental,” located in Downtown Metropolis near schools and shopping areas, offers a modern, 4,000 sq. ft. facility with advanced dental equipment. The practice provides a comprehensive range of services, from preventive care and restorative dentistry to cosmetic procedures and orthodontics, catering to a diverse patient base.
Market Overview
This section should analyze the dental market size , growth trends, consumer behavior, and the competitive landscape . It helps position your practice within the industry and showcases how it meets the current demands in dental care.
Example: SmileBright Dental enters a U.S. dental market worth $145 billion, growing at 6% annually. Despite competition from other local practices, SmileBright stands out with its focus on preventive care, adoption of tele-dentistry, and cosmetic services, aligning with current consumer trends and spending behaviors.
Management Team
Detailing the management team’s experience and roles is essential. This part of the summary should emphasize their expertise in dentistry and healthcare management, underscoring their ability to drive the practice’s success.
Example: Dr. Jane Doe, Chief Dental Officer and co-founder of SmileBright, brings years of experience in pediatric dentistry, while Dr. John Smith, co-founder and COO, has extensive experience in healthcare management. Their combined expertise ensures high-quality patient care and efficient practice operations.
Financial Plan
A clear presentation of financial goals and projections is key. This section should include targets for revenue, providing insight into the practice’s financial health and growth prospects.
Example: SmileBright Dental aims for $2.6 million in annual revenue by 2028. With a strategic focus on expanding service offerings and enhancing patient experience, the practice is poised for growth in a thriving dental market.
For a Dental Practice, the Business Overview section can be effectively divided into 2 main slides:
Practice & Location
Briefly describe the dental practice’s physical environment, focusing on its modern, clean, and inviting atmosphere that reassures and comforts patients. Mention the practice’s location, highlighting its accessibility and the convenience it offers to patients, such as proximity to residential areas, schools, or ease of parking. Explain why this location is strategically chosen to attract your target patient base.
Detail the range of dental treatments and services offered, from routine check-ups and cleanings to specialized procedures like orthodontics, implants, or cosmetic dentistry. Outline your pricing strategy , ensuring it reflects the quality of care provided and aligns with the market you’re targeting. Highlight any special offers, insurance partnerships, or membership plans that provide added value to your patients, encouraging long-term relationships and patient loyalty.
Industry size & growth
In the Market Overview of your dental practice business plan, start by examining the size of the dental care industry and its growth potential. This analysis is crucial for understanding the market’s scope and identifying expansion opportunities.
Key market trends
Proceed to discuss recent market trends , such as the increasing consumer interest in advanced dental technologies, preventive care, and cosmetic dental services.
For example, highlight the demand for services that cater to specific dental health needs, alongside the rising popularity of aesthetic dental treatments like veneers and teeth whitening. Also, consider the impact of digital dentistry advancements, such as 3D imaging and CAD/CAM systems, on patient experience and treatment outcomes.
Competitive Landscape
A competitive analysis is not just a tool for gauging the position of your dental practice in the market and its key competitors; it’s also a fundamental component of your business plan.
This analysis helps in identifying your dental practice’s unique selling points, essential for differentiating your business in a competitive market.
In addition, competitive analysis is integral in laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment.
Identifying Your Dental Care Competitors
Initiating a competitive analysis in the dental care sector begins with identifying key competitors in your locality. Map out dental practices within your vicinity, considering not only other dental clinics but also specialized services like orthodontics or cosmetic dentistry. Additionally, take into account corporate dental chains or multi-specialty clinics that may operate in your area, as they could pose competition.
Online platforms such as Google Maps, Yelp, or Healthgrades offer valuable insights. Reviews and ratings on these platforms provide a glimpse into the strengths and weaknesses of your competitors. For instance, positive reviews highlighting the efficient service and friendly staff at “SmileCare Dental” indicate a notable strength of your competitor in providing a positive patient experience.
Dental Practice Competitors’ Strategies
Analyzing the strategies of your dental care competitors encompasses various facets:
- Services Offered: Evaluate the spectrum of services provided by competitors. If a nearby clinic like “Bright Smiles Orthodontics” is gaining popularity for its innovative orthodontic treatments, it signals a market trend toward specialized orthodontic care.
- Technology and Equipment: Consider the technological advancements and equipment utilized. A clinic that focuses on state-of-the-art equipment for procedures may attract a different clientele compared to a practice that emphasizes traditional techniques.
- Pricing Models: Compare pricing structures. Are your service fees similar to those at “Affordable Dental Solutions” or do you align more with premium services like those offered at “Elite Dental Care”?
- Marketing Strategies : Evaluate marketing approaches. Do competitors rely on digital marketing, social media campaigns, or community engagement events to promote their services?
- Patient Experience: Assess the patient experience at rival clinics. A clinic like “Comfort Dental Haven” might stand out for its calming ambiance and personalized patient care.
- Operational Efficiency: Observe if competitors leverage technology for appointment scheduling, digital records, or teleconsultation, such as “Tech-Savvy Smiles” with its advanced online appointment system.
What’s Your Dental Clinic’s Unique Value Proposition?
Identifying your dental clinic’s unique value proposition is pivotal. Perhaps your clinic specializes in pediatric dentistry or offers cutting-edge cosmetic dental procedures that are in demand.
Pay attention to market gaps by gathering patient feedback and staying updated on industry trends. For example, an increasing emphasis on holistic dental care could represent an untapped market opportunity if competitors still need to address this demand.
Tailor your services to your location. A clinic in a family-centric suburb might focus on family dental care and a child-friendly environment, while a practice in a corporate hub might highlight convenient scheduling and fast service for busy professionals.
First, conduct a SWOT analysis for the dental practice, highlighting Strengths such as highly qualified dental professionals and comprehensive dental care services, Weaknesses like high operational costs and the complexities of insurance billing, Opportunities in the form of increasing awareness about oral health and potential for community outreach programs, and Threats from intense competition and potential economic downturns that may affect patients’ spending on dental services.
Marketing Plan
Next, develop a marketing strategy for the dental practice that details how to attract and retain patients. This strategy should include targeted advertising to reach potential patients actively searching for dental services, promotional discounts for first-time visitors or referrals, an engaging social media presence that highlights patient testimonials and educational content, and involvement in community events to build brand awareness and trust within the local area.
Marketing Channels
Utilize diverse marketing channels to engage with potential patients and increase brand visibility.
Digital Marketing
Leverage digital platforms effectively:
- Website and SEO : Your practice’s website serves as a digital storefront. Develop a user-friendly website that not only showcases your services but also educates visitors about oral health. Integrate patient testimonials and case studies to build credibility. Optimize the site for local SEO by including location-specific keywords, enabling potential patients to find you easily.
- Social Media: Social media platforms offer a space for interaction and community building. Regularly share valuable content—educational posts, engaging videos, patient success stories, and behind-the-scenes glimpses—to humanize your practice.
- Email Marketing: Building an email list allows you to nurture relationships with both existing and potential patients. Develop segmented email campaigns that offer value—whether it’s oral care tips, exclusive promotions, or updates about new services.
Local Promotion and Community Engagement
Actively participate in the local community:
- Local Events: Host or sponsor community health fairs, school dental check-ups, or seminars. Provide free dental check-ups or educational sessions at local community centers.
- Partnerships : Collaborate with local schools, health clinics, or businesses for joint health awareness campaigns or referral programs.
Promotional Activities
Entice potential patients with attractive offers:
- Special Promotions : Design promotional offers or seasonal packages that entice first-time visitors. Consider offering discounts on specific treatments or bundled services, encouraging new patients to experience the quality of care your practice provides.
- Loyalty Programs: Rewarding patient loyalty encourages repeat visits. Implement a structured loyalty program where patients earn points for each visit or referral, which they can redeem for discounts or complimentary services. This not only incentivizes loyalty but also enhances patient retention.
- Referral Bonuses: Encourage existing patients to become advocates for your practice by offering referral incentives. Provide discounts, free treatments, or other incentives for every successful referral they make, amplifying your reach through word-of-mouth.
Sales Channels
Deploy effective sales strategies to ensure a seamless patient experience and satisfaction.
In-Practice Upselling
Maximize opportunities during patient visits:
- Service Upgrades: During appointments, suggest additional treatments like teeth whitening or cosmetic dental procedures based on patient preferences and needs.
- Retail Products: Display dental care products or oral hygiene items prominently within the practice and educate patients about their benefits.
- Treatment Packages: Offer comprehensive dental care packages that bundle multiple treatments or family packages at discounted rates.
Online Booking and Sales
Leverage technology for efficient service delivery:
- Online Booking: Implement an easy-to-use online appointment booking system through your website or mobile app, offering convenience to patients.
- E-commerce: Sell dental products, oral care kits, or dental health supplements directly through your website, expanding patient access and revenue opportunities.
- Virtual Consultations: Offer online video consultations for initial assessments or post-treatment follow-ups, providing personalized care recommendations.
Membership and Loyalty Programs
Encourage patient loyalty and repeat visits:
- Membership Benefits: Develop structured membership plans that offer regular check-ups, preventive care, or discounted treatments for a fixed monthly or annual fee. These plans ensure consistent patient engagement while providing them with cost-effective access to essential dental care.
- Loyalty Rewards: Implementing a digital rewards system enables patients to earn points for each visit or referral. These accumulated points can be redeemed for free services, discounts, or exclusive offers, fostering a sense of appreciation and strengthening patient loyalty.
Strategy Timeline
Finally, create a detailed timeline for the dental practice that outlines key milestones such as the official opening date, the roll-out of marketing campaigns, the expected growth of the patient base, and plans for expanding services or facilities. This timeline should provide a clear framework for the practice’s development, ensuring every step is taken with purpose and direction towards achieving long-term success.
The Management section focuses on the dental practice’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the practice towards its financial and operational goals.
For your dental practice business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.
The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your dental practice’s approach to securing funding, managing cash flow, and achieving breakeven.
This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.
For your dental practice business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).
Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds
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Dental Business Plan Template
Written by Dave Lavinsky
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.
Executive Summary
Business overview.
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.
Product Offering
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
Customer Focus
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.
Management Team
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.
Success Factors
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
Financial Highlights
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.
Company Overview
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:
Industry Analysis
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.
Customer Analysis
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:
Customer Segmentation
Bright Family Dental will primarily target the following customer profiles:
- Families with children
- Young adults
- Uninsured adults
Competitive Analysis
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
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.
Competitive Advantage
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.
Marketing Plan
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.
Promotions Strategy
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.
Print Advertising
Bright Family Dental will invest in professionally designed print ads to display in the local newspapers or flyers and publications.
Website/SEO Marketing
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.
Operations Plan
The following will be the operations plan for Bright Family Dental.
Operation Functions:
- 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
Milestones:
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.
Financial Plan
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
Key assumptions.
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
Financial Projections
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.
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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
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 Dental 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 You Need a Business Plan for a Dentist Office
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.
Finish Your Business Plan Today!
Your business plan should include 10 sections as follows:
Executive Summary
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.
Company Analysis
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.
Industry Analysis
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.
Customer Analysis
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.
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Competitive Analysis
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 dental 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.
Marketing 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
Operations Plan
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.
Management Team
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.
Financial Plan
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.
Example 5 Year Annual Income Statement
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.
Example 5 Year Annual Balance Sheet
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
Example 5 Year Annual Cash Flow Statement
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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