Starting a Practice: How to Write an Effective Dental Business Plan

Dental Business Plans for Existing Practices

Updating a business plan for dental offices that are already up and running will require some additional details:

• Current financial position
• A list of debts owed, with updated lender details and payment terms
• An analysis of operational costs and your break-even point
• A financial comparison of your practice versus a competitor

Once you have all of this information, you can start compiling your dental business plan.

Executive Summary

Although this is the first section of your dental office business plan, it should be the last part you write because it summarizes all of the other sections. It should cover no more than two pages and be written professionally in a way that is compelling to potential investors. Be sure to include a mission statement explaining the company’s purpose, why it exists, and the overall goal of operations.

Company Summary

State the location of the company, days and hours of operation, what services are offered, a breakdown of company ownership, and details about the following expenses and assets:

• Start-up expenses – Legal fees, stationery, deposit payments, office renovation costs, insurance, etc.
• Fixed assets – Dentistry equipment, furniture, computers, display cabinets, etc.
• Operating costs – Payroll, rent, utilities, equipment maintenance, practice management software, dental supplies, marketing costs, etc.
• Liabilities and capital – Current cash balance, borrowing agreements, outstanding bills, the balance on loans taken, etc.

Services

A detailed breakdown of every service offered and the costs for each. For example, a dentistry business plan for an orthodontist may list information and prices for braces, palatal expanders, and retainers. In contrast, a cosmetic practice may provide details about teeth whitening, gap removal, and veneers.

Competitor Analysis

Collect as much data about your competition as you can, including how they manage their online presence, what digital platforms they are active on, their website SEO rankings, and any other relevant information that will help you develop a plan to beat them.

Strategy

This section maps out exactly how you intend to achieve your goals. To do that, you’ll need to consider and stipulate your:

• Unique selling points (USPs) – The tactics you will use to gain a competitive edge, like customer service, quality, affordability, etc.
• Marketing strategy – What dental social media marketing channels and techniques you will use to attract and retain patients.
• Sales strategy – How you’ll sell, upsell, and cross-sell your products and services, and what dental insurance policies you’ll accept.
• Milestone targets – Specific targets you wish to achieve within a designated time frame.

Management

Every dental business plan template should explain how the practice will be managed. Include a complete list of personnel, their qualifications, and responsibilities. In addition to full-time employees, you can also list business associates like insurance agents, real estate advisors, and attorneys. Always add a personnel plan for staff that are still required if your team has current vacancies.

Financial Plan

This is one of the most important sections of your business plan and should be presented in great detail. You should include:

• Historical financial analysis
• A projected income forecast for the following 12-24 months.
• A cash flow forecast
• Your personal financial statement
• The total funding required for the next 12-24 months.
• Offered collateral
• Details on how funds will be allocated

You’ll also need to include supporting financial documents, which should be a maximum of 90 days old to comply with current lending guidelines:

• Financial statements
• Copies of credit reports
• Individual income tax returns
• Business income tax returns.
• A copy of the aging schedule