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
Download the dental business plan template (including a customizable financial model) to your computer here <–
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:
- Dental cleanings and examinations
- Dental implants
- Porcelain veneers
- Crowns and bridges
- Dentures and partials
- Tooth extraction
- Teeth whitening
- Emergency dental care
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.
Download the dental business plan template (including a customizable financial model) to your computer here <–
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:
| Total | Percent | |
|---|---|---|
| Total population | 590,157 | 100% |
| Male | 284,873 | 48.30% |
| Female | 305,284 | 51.70% |
| Under 5 years | 41,749 | 7.10% |
| 5 to 9 years | 43,509 | 7.40% |
| 10 to 14 years | 41,324 | 7.00% |
| 15 to 19 years | 43,301 | 7.30% |
| 20 to 24 years | 48,119 | 8.20% |
| 25 to 34 years | 106,407 | 18.00% |
| 35 to 44 years | 73,788 | 12.50% |
| 45 to 54 years | 64,669 | 11.00% |
| 55 to 59 years | 35,109 | 5.90% |
| 60 to 64 years | 27,995 | 4.70% |
| 65 to 74 years | 39,539 | 6.70% |
| 75 to 84 years | 17,394 | 2.90% |
| 85 years and over | 7,254 | 1.20% |
| Total housing units | 260,024 | 100% |
Customer Segmentation
Bright Family Dental will primarily target the following customer profiles:
- Families with children
- Young adults
- Seniors
- 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.
Download the dental business plan template (including a customizable financial model) to your computer here <–
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:
Location
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.
Pricing
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
Download the dental business plan template (including a customizable financial model) to your computer here <–
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
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.
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
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
Download the dental business plan template (including a customizable financial model) to your computer here <–
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
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | ||||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
| CASH FLOW FROM INVESTMENTS | ||||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 | |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
| CASH FLOW FROM FINANCING | ||||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 | |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
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.