Dental Business Plan Template
If you want to start a Dental business or expand your current Dental business, you need a business plan.
The following Dental Office business plan template gives you the key elements to include in a winning Dental business plan.
Dental Business Plan Example
I. Executive Summary
Business Overview
[Company Name], located at [insert location here] is a new dental clinic providing quality dental services to its patients. [Company Name] is headed by [Founder’s Name], an experienced dental services manager.
Products Served
[Company Name] will focus on providing dental services including cleanings, x-rays, fillings, crowns, root canals, extractions and implants. The founder, [Founder’s Name], will also develop proposals for dental services specific to the needs of the patient.
Customer Focus
[Company Name] will primarily serve the residents within a 5-mile radius of our location. The demographics of these customers are as follows:
- 29,897 residents
- Average income of $94,700
- 61% married
- 44% in Management/Professional occupations
- Median age: 36 years
In addition to this relatively wealthy adult demographic for a dental service business, there are five large apartment buildings in the area.
Management Team
[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. [First name] has been a dental services manager for the past 15 years.
[Company name] will also employ an experienced assistant to manage most operations. This will be an experienced operations manager who will be trained in dental clinic operations by [Founder’s Name]. The desired individual will have an undergraduate business degree or years of medical office assistant experience.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- [Company Name] will fill a specific market niche in the growing community we are entering. In addition, we have surveyed the local population and received extremely positive feedback saying that they explicitly are in need of a quality dental office in the area.
- Our location is in a high-wealth area where customers are in need of dental services.
- The management team has a track record of success in the dental services business.
- The local area is currently underserved and residents rely on independent and often illegal dentists.
Financial Highlights
[Company Name] is seeking a total funding of $292,000 of debt capital to open its dental service. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Dental clinic design/build: $146,000
- Working capital: $146,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Topline projections over the next five years are as follows:
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | |
|---|---|---|---|---|---|
| Revenue | $1,080,000 | $2,472,768 | $2,830,825 | $3,240,728 | $3,709,986 |
| Total Expenses | $962,000 | $1,539,107 | $1,719,742 | $1,901,321 | $2,112,641 |
| EBITDA | $118,000 | $933,661 | $1,111,082 | $1,339,407 | $1,597,344 |
| Depreciation | $25,600 | $25,600 | $25,600 | $25,600 | $25,600 |
| EBIT | $92,400 | $908,061 | $1,085,482 | $1,313,807 | $1,571,744 |
| Interest | $29,946 | $26,202 | $22,459 | $18,716 | $14,973 |
| Pre Tax Income | $62,455 | $881,858 | $1,063,023 | $1,295,091 | $1,556,772 |
| Income Tax Expense | $21,859 | $308,650 | $372,058 | $453,282 | $544,870 |
| Net Income | $40,595 | $573,208 | $690,965 | $841,809 | $1,011,902 |
| Number of locations | 1 | 1 | 1 | 1 | 1 |
| Average customers/day | 20 | 22 | 23 | 25 | 27 |
| Number of orders | 3,600 | 7,776 | 8,398 | 9,070 | 9,796 |
II. Company Overview
Who is [Company Name]?
[Company Name] is a pioneer in providing dental care for the people in the community. Our dentist office offers a suite of services that is sized to fit the whole family, including general, cosmetic, and restorative dental care. For more than [x] years, our family-owned dental business has rendered quality dental services focused on exceptional customer service.
[Company Name]’s History
[Company Name] was established in the year [xxx] founded by [Founder’s Name]. Our first location was in [Address]. The initial staff structure consisted of one dentist, one dental assistant, one receptionist, and one office orderly. During the course of the last few years in operation, the staff base has increased to include two more dentists, two more dental assistants, and a bookkeeper.
To date [Company Name] has three fully operational dental units with a number of dental specialists available for specialized dental care.
Since incorporation, the Company has achieved the following milestones:
- Found office space and signed Letter of Intent to lease it
- Developed the company’s name, logo and website located at [website]
- Determined equipment and fixture requirements
- Began recruiting key employees
[Company Name]’s Products/Services
[Founder’s Name] will be able to provide clients with the following services:
- Oral Prophylaxis: This is a sophisticated dental service that effectively removes tartar and plaque build up from the teeth’s surfaces and those that are concealed in between the sensitive areas of your gums.
- Teeth Whitening: Lightens teeth and helps to remove stains and discoloration. Whitening is among the most popular cosmetic dental procedures because it can greatly improve how your teeth look.
- Dental Braces: Dental braces (also known as braces, orthodontic cases, or cases) are devices used in orthodontics that align and straighten teeth and help to position them with regard to a person’s bite, while also working to improve dental health.
- Dental Implant: Made to replace a tooth. Implants provide a strong foundation for fixed (permanent) or removable replacement teeth that are made to match your natural teeth
- Oral Surgery: It entails the diagnosis, adjudicative treatment of various oral diseases, injuries and defects which are in consonance with the functional and aesthetic aspects of a human’s mouth, face, teeth and jaws.
As [Founder’s Name] understands, the key to a successful dental service is being responsive to the particular needs of clients. [Founder’s Name] will have a full-time assistant who will, among other things, manage operations including scheduling, inventory, and bookkeeping. This will free up the time of [Founder’s Name] to work on important patient cases.
III. Industry Analysis
Over the last five years, the Dentists industry has benefited from advances in dental technology and improved access to care for older adults and low-income individuals. For most of the period, rising disposable income and a low unemployment rate have also supported the ability of individuals to afford out-of-pocket payments for care, which constitute the second-largest source of industry revenue. All things considered; industry revenue is estimated to increase an annualized 1.4% during the five-year period.
Demand for industry services will particularly come from older adults, who tend to need more serious and more frequent dental care as they age. In addition, the continued expansion of dental care through Medicaid will enable low-income adults to access the care they need. The average industry profit margin is anticipated to remain high, and membership to dental service organizations (DSOs) will likely continue to climb, particularly among younger practitioners who are graduating with high amounts of debt and prefer the ability to focus on patient care instead of practice administration.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the residents of [company location] and the immediately surrounding areas in a 10-mile radius. The area we serve is populated mostly by the middle and upper class and lead busy lifestyles; as a result, they have both the need for dental services and the means to pay for it.
The precise demographics of the town in which our location resides is as follows:
| Wilmette | Winnetka | |
|---|---|---|
| Total Population | 26,097 | 10,725 |
| Square Miles | 6.89 | 3.96 |
| Population Density | 3,789.20 | 2,710.80 |
| Population Male | 48.04% | 48.84% |
| Population Female | 51.96% | 51.16% |
| Target Population by Age Group | ||
| Age 18-24 | 3.68% | 3.52% |
| Age 25-34 | 5.22% | 4.50% |
| Age 35-44 | 13.80% | 13.91% |
| Age 45-54 | 18.09% | 18.22% |
| Target Population by Income | ||
| Income $50,000 to $74,999 | 11.16% | 6.00% |
| Income $75,000 to $99,999 | 10.91% | 4.41% |
| Income $100,000 to $124,999 | 9.07% | 6.40% |
| Income $125,000 to $149,999 | 9.95% | 8.02% |
| Income $150,000 to $199,999 | 12.20% | 11.11% |
| Income $200,000 and Over | 32.48% | 54.99% |
Customer Segmentation
The Company will primarily target the following three customer segments:
- Parents: The town has a large population of stay-at-home moms who are active in the community. These moms seek dental services on a regular basis. Winning the loyalty of a mother often includes winning the business of her children and husband as well. These women are well-connected to each other and as such are a prime source of referral business. [Company name] expects to regularly acquire new customers from referrals.
- Professionals: [Company name] is located along a well-traveled commute route. By offering convenient location and exceptional service to the customer, [Company name] will draw in working men and women who need to look professional for work.
- Students: There are multiple high schools and middle schools located in the surrounding area. These students still live on their parents’ income and can therefore afford to pay for higher-quality services than discounters provide. In particular, [Company name] can expect to generate significant seasonal business based on the beauty needs of the local youth culture.
V. Competitive Analysis
Direct & Indirect Competitors
The following businesses are located within a 5-mile radius of [Company Name], thus providing either direct or indirect competition for customers:
Mountain Dental Center
Mountain Dental Center is a dental practice with three locations. The practice consists of four dentists. Dentistry services offered at Mountain Dental Center include exams and cleanings, bonding, bridges, crowns, dentures, extractions, fillings, fluoride treatments, implant restorations, mouth guards, night guards, root canals, sealants, and veneers. In addition, the practice also offers the following dental services: digital x-rays, intraoral camera usage during cleaning and exam visits, oral cancer screening, teeth whitening, snoring prevention, and sleep apnea. Furthermore, the practice offers dental implants, implant-supported dentures, sinus lift augmentation, and bone grafting. Service costs vary depending on needs of patient and treatment plan. The office uses CareCredit to offer payment plans for procedures that aren’t covered by insurance.
Dental Specialists
Established in 1982, Dental Specialists is a dentistry practice that specializes in implant restoration and prostheses as well as partial to full mouth reconstruction. Specific dentistry services offered at Dr. Madden’s office include dental exams and cleanings, digital x-rays, fluoride treatments, dental implants, bridges, crowns, onlay restorations, inlay restorations, amalgam fillings, dentures, composite fillings, root canals, lumineers, porcelain veneers, porcelain crowns, teeth whitening, and periodontal diagnosis and treatment. Dr. Surgi, the head of the practice graduated from the University of Washington Dental School in 1982 and following his degree he completed advanced clinical training at the University of Washington Affiliated Hospitals in the Hospital Residency Program.
Blake Dental
Established in 1979, Blake Dental is a dentistry practice that specializes in aesthetic and restorative dentistry. Services include implants, composite bonding, and crowns. Dr. Blake earned his Doctor of Dental Surgery from the University of Washington in 1976. His office is open Monday through Thursday from 8 am to 5 pm. The practice accepts all major dental insurance
Competitive Pricing
| Annual Exam | Fillings | |
|---|---|---|
| Mountain Dental Center | $150 | $350 |
| Dental Specialists | $140 | $325 |
| Blake Dental | $135 | $345 |
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Client-oriented service: [Company Name] will have a full-time sales manager to keep in contact with clients and answer their everyday questions. [Founder’s Name] realizes the importance of accessibility to his clients, and will further keep in touch with his clients through weekly newsletters about dental services.
- Management: [Founder’s Name] has been extremely successful working in the dental services business and will be able to use his previous experience to assure clients of the care that [Company Name] will take to do the job right. His unique qualifications will serve customers in a much more sophisticated manner than [Company Name’s] competitors.
- Relationships: Having lived in the community for 25 years, [Founder’s Name] knows many of the local leaders, newspapers and other influences. Furthermore, he will be able to draw from his ties to homeowners from his work at King’s Dental Clinic to develop an initial client base.
VI. Marketing Plan
The [Company Name] Brand
The [Company name] brand will focus on the Company’s unique value proposition:
- Client-focused home dental services, that treat each home individually and get the job done right the first time
- Service built on long-term relationships
- Proven track record of dental office experience in a small-firm environment
Promotions Strategy
Local Publications
[Company name] will announce its opening several weeks in advance through publicity pieces in multiple local newspapers and publications. Regular advertisements will run to maintain exposure to relevant markets. Community newspapers, school publications, youth sports programs, and similar channels will be a major promotion effort.
Major Publications
We will make careful use of advertising in selected larger publications. [Publication or newspaper name] has a circulation of xyz, and we can expect to reach a wider geographic region of customers on a limited basis. Advertisements with major publications will be used selectively, based on cost-effectiveness. These ads will include discount coupons so that response to the ads can be tracked.
Community Events/Organizations
[Company name] will promote itself by distributing marketing materials and participating in local community events, such as school fairs, local festivals, homeowner associations, or sporting events. Since mothers are often heavily involved in such things, we will not only reach the lucrative audience of adult women but also potentially their families by extension.
Commute Advertising
We will drive attention toward [Company name] by hiring workers to hold signs alongside [route or highway]. Advertising on heavily traveled commute routes are an opportunity to alert large numbers of working individuals with disposable income of our opening.
Customer Loyalty Programs
[Company name] will create a winning customer loyalty program to keep its patients coming back again and again. When not actively providing services to customers in the store, our professionals and other employees will make periodic, regular phone calls to customers. These phone calls will (a) ensure that customers are satisfied with their treatments, and (b) remind customers after a certain period of time has passed that they might want a new facial or massage. Long-term customers will have the opportunity to participate in the loyalty program, and referrals will be rewarded as well.
Direct Mail
[Company Name] will blanket neighborhoods surrounding its locations with direct mail pieces. These pieces will provide general information on [Company Name], offer discounts and/or provide other inducements for people to visit the dental clinic.
Ongoing Customer Communications
[Company Name] will maintain a website and publish a monthly email newsletter to tell customers about new events, products and more.
Pre-Opening Events
Before opening the store, [Company Name] will organize pre-opening events designed for prospective customers, local merchants and press contacts. These events will create buzz and awareness for [Company Name] in the area.
Pricing Strategy
[Company Name]’s pricing will be competitive compared with their three top competitors. For regular, weekly patients, pricing will be based on the average labor needed for a job and a steady fee will be set. For one-time patient, or patients who are trying out the clinic’s services.
VII. Operations Plan
[Company Name] will carry out its sales operations through phone calls and consultations. Dental services will be scheduled within time ranges (i.e. 10 am – 4 pm Wednesday) rather than at exact times to allow leeway for appointments that may be longer or shorter than expected. After patients are served a number of times, appointments will be scheduled more tightly together based on the average service time for each visit.
Milestones
[Company Name]’s long term goal is to become the highest quality provider of consistent dental services in the [city] area. We seek to do this by ensuring patient satisfaction and developing a loyal and successful clientele.
The following are a series of steps that will lead to this long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Launch [Company Name] |
| [Date 5] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. [First name] has been a dental services manager for the past 15 years.
[Company name] will also employ an experienced assistant to manage most operations. This will be an experienced operations manager who will be trained in dental clinic operations by [Founder’s Name]. The desired individual will have an undergraduate business degree or years of medical office assistant experience.
Hiring Plan
In order to launch the business we will hire the following employees:
- Dental Staff: 9 full-time, experienced dentists. Must read and speak English in order to communicate with patients, as needed. Dental staff will be added consistently to fill the growing need for [Company Name] services.
- Administrative Assistant: Must be organized, with good phone skills, facility with numbers for bookkeeping, and good writing skills.
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come primarily from dental fees for bi-annual check-ups, extractions and fillings.
Key Cost Drivers
As with most services, labor expenses are the key cost drivers. Dental staff will earn a competitive salary, allowing [Company Name] to hire workers who previously operated independent businesses. Furthermore, the costs of supplies and travel to client sites are expected to be roughly 20% of revenue.
The major cost drivers for the company’s operation will consist of:
- Salaries
- Cost of Dental supplies
- Dental equipment maintenance
Capital Requirements and Use of Funds
[Company Name] is seeking a total funding of $292,000 of debt capital to open its dental services business. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Dental clinic design/build: $146,000
- Working capital: $146,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model.
| Number of patients per year | Per location |
|---|---|
| FY 1 | 375 |
| FY 2 | 500 |
| FY 3 | 625 |
| FY 4 | 750 |
| FY 5 | 875 |
| Average billing | $235 |
| Annual increase in order price | 6.00% |
| Annual Lease (per location) | $50,000 |
| Yearly Lease Increase % | 2.50% |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRE-TAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
