dental service organization business plan

Private Equity Blog

• How to Scale Up a Profitable Dental Service Organization (DSO)
• June 4, 2024
• Craig Arends

Like any business rollup looking to benefit from cost-savings advantages of shared services, dental service organizations (DSO) are no exception and are becoming increasingly popular. The goal is to free up practitioners’ time for more patient care versus administrative paperwork.

What is a DSO?

A DSO is a legal entity separate and distinct from a group of dental practices providing administrative and management services for its members. Because of the corporate practice of dentistry doctrine, most states require that dental practices are owned and controlled by one or more licensed dentists. 

Setting up a DSO involves several key steps to improve regulatory compliance, provide efficient operations, and deliver quality dental services. What are the key steps?

Business plan

This roadmap organizes your DSO’s mission, goals, target market, services, and growth approach. It should include: 

• Financial projections
• Competitive analysis
• A detailed roadmap to develop a scalable organization
• Key value drivers and execution strategies
• How the DSO will service the practices
• Investments to create the DSO and the infrastructure required to deliver those services

Common centralized services include:  

• Executive leadership
• Information technology (IT)
• Human resources
• Procurement
• Revenue cycle management

In most instances, these functions existed in the practice but could benefit from professionalization due to new stakeholders and reporting requirements, made consistent across practices and then centralized to create efficiency and scale. The overall stakeholders and growth plans— as well as the projected scale of the DSO — are important in defining this business plan. Business plan alignment between the DSO and the practices as well as the timing of set-up and integration are essential to long term scalable success.

Legal structure and licensing

Next, decide the most appropriate legal structure for your DSO. LLC or corporation are the typical selections. Check your state, regional, and any local requirements for business licenses and permits to legally operate in your area.

Compliance with dental board regulations

Study up on dental board regulations in the states where you plan your DSO’s headquarters. Check into licensing requirements, scope of practice guidelines, and other regulations for dental care delivery.

Professional leadership

Because people are your most strategic asset, you’ll need a team of experienced professionals to lead your DSO. Normally, a DSO is acquiring existing practices of qualified dentists, hygienists, and customer-friendly administrative staff. The DSO itself will need people to provide executive leadership to all the practices as well as key individuals to provide the services the DSO defined in its business plan.

Clinical protocols and standards

Your brand and reputation depend on harmonized clinical protocols and quality standards for service delivery across all locations within your DSO. Consistency in clinical practices promotes a high level of patient care and helps build a reputable brand upon which high star ratings are earned.

IT Infrastructure and EHR systems

Next, you’ll need a roadmap for driving efficiencies with a cyber-secure and robust IT backbone for electronic health record (EHR) systems. Professionals with experience in DSOs can help you streamline patient data management, appointment scheduling, and billing. Be mindful of health care data protection regulations.

Facility setup and equipment

Havea clear capital improvement plan and approach for the DSO. State-of-the-art dental equipment contributes to a quality experience and can provide efficiencies. For expansions, choose secure locations for dental clinics, considering competitive density, accessibility and local demographics.

Insurance and billing processes

Certain administrative functions can be centralized to enhance efficiency. Use your top employees (and pay them well) to manage the profitability engine of your business: insurance, billing processes, and for timely reimbursements . Stay informed about dental coding standards and billing regulations to address compliance issues.

Marketing and branding

Reviews are your lifeline to drive patient traffic. Develop a strong brand identity for your DSO. Implement marketing strategies to attract patients, including online presence, community outreach, and partnerships with local businesses. Highlight your exceptional staff, care, and convenience.

Patient-centric approach

The DSO is created to support the practices and its patients. Map out the patient experience across all practices from the second they arrive near your building all the way through departure with a swag bag.  What can be improved? A patient-centric approach is key to earning a great reputation and referrals.   Ask:

• Is the environment welcoming?
• Are we proving patient education at every step?
• Do we have a culture of continuous improvement focused on customer experience and making changes on a regular basis?

How we can help

Remember — little details matter, especially when it comes to customer service.

Building a vision for your DSO? We’d love to help with that. Contact us .

Written by Mary-Jane Man-Jones , Jennifer Clement , and Amy Moore

, General | No Comments »

• 612-397-3180

Craig Arends is a principal at CLA and is the managing principal of CLA's private equity practice. Craig brings a concentration of experience in providing accounting and transaction structuring advice for leveraged recapitalizations, purchase accounting and SEC reporting, assessing quality of earnings, and GAAP accounting. He has far-reaching experience with critiquing financial models and reviewing target companies' financial performance to identify cost reductions and/or operating efficiencies Craig has more than 30 years of experience in public accounting serving public companies, private equity groups, and companies, including a term as principal in charge of a Big Four Capital Markets Group in Moscow, Russia. He has led financial accounting due diligence projects for private equity investor groups and venture capital funds, primarily in the technology, communications, and manufacturing industries, as well as assisting with Foreign Corrupt Practice Act matters ranging from investigation of payments made, validation of compliance with corporate policies, and review of proposed transactions to ensure compliance. When not working, Craig enjoys watching any sports, but his most favorite are baseball, football and soccer.

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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.

Dental Business Plan FAQs

What is the easiest way to complete my dental business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Dental Business Plan.

What is the Goal of a Business Plan's Executive Summary?

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Dental Office Business Plan

Start your own dental office business plan

The Tooth Fairy

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

The Tooth Fairy is the dentistry practice of Steve Extractor.  The Tooth Fairy will offer general and cosmetic dentistry to the citizens of Eugene, Oregon. Through a combination of industry benchmark customer service and flexibility, The Tooth Fairy will quickly gain market share.

Steve will leverage the years he spent in private practice to model his new business.  His past experience in conjunction with his forward-looking customer-centric business model will allow him to rapidly grow a large and loyal patient base.  Profitability will be reached by month 10, and sales will reach comfortable levels by the end of year two.

1.1 Objectives

The objectives for the first years of operation include:

• To create a start-up organization from an already existing practice whose primary goal is to exceed customer’s expectations.
• To increase the number of clients by 20% per year through superior performance and word-of-mouth referrals.
• To form a dentistry practice that is able to eventually survive off its own cash flow.

1.2 Mission

The Tooth Fairy’s mission is to provide the finest dental care.  We exist to attract and maintain customers.  When we adhere to this maxim, everything else will fall into place.  Our services will exceed the expectations of our customers.

1.3 Keys to Success

The key to success is to meet the market need and exceed customer’s expectations.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

The Tooth Fairy, to be located in Eugene, OR, will offer both general dentistry as well as cosmetic dentistry.  General dentistry consists of primarily of cleaning and fillings, while cosmetic dentistry consists of teeth whitening, veneers, and gap removal.  The Tooth Fairy is forecasted to reach profitability by month 10 and have respectable third year profits.

2.1 Company Ownership

The Tooth Fairy is an Oregon limited liability corporation owned by Steve Extractor.

2.2 Start-up Summary

The following are the required start-up costs:

The purchase of Dan Jokerdoc D.D.S.’ private practice.  The purchase includes the patient list, office space, front chair and desk, two dental chairs, two light systems, fully-equiped sterilization room, compression air system with a suction unit, x-ray unit, mirrors, and a phone system.  This practice has been valued by the following variables: equipment, office space already built for a dentist, goodwill, and future revenue streams.  The equipment has been valued at $30,000, $15,000 for tenant improvements on the office space, the patient list at $5,000 and $25,000 for future profitability.  The entire practice was sold for $65,000 because Dr. Jokerdoc was in need of quick cash. Statistical studies have shown that patients that are made comfortable are likely to stay with the new doctor when a practice is sold.  This will help with cash flow, minimizing the amount of start-up cash.  The bulk of the equipment needed will procured through the purchase of the practice, however, there is a lot of equipment that will be needed to be purchased separately. 

The following list details what else will be needed.

• Front desk equipment including a Xerox machine, fax machine, a computer terminal with Microsoft office, QuickBooks Pro, laser printer and a CD-RW.
• Disposables which include: assorted trays and explorers, x-ray film, filling material, paper products, and impression material.
• Placing instrument.
• Curing instrument.
• Ultrasonic scaler (for removal of prophylaxis).
• High- and low-speed drills (enough for two operators).

Please note that all items that are to be used for more than a year will be classified as long-term capital assets and will be depreciated using the G.A.A.P approved straight-line method of depreciation.

The Tooth Fairy provides both general improvements consisting primarily of cleaning and fillings, as well as cosmetics  improvements.  The cost for cleanings are around $100, not including x-rays.  The cost for fillings ranges significantly depending on the material used.   Dr. Extractor will be deriving the majority of revenue from cosmetics by the end of the year.

Cosmetics can be classified into three main areas:

• Teeth whitening . There are many different ways a tooth can be stained, common causes are age, antibiotics, excess fluoride, illness, and certain beverage consumption.  Teeth whitening removes the discoloration and restores the original whiteness.  Dr. Extractor is currently using a state-of-art home treatment.  The home treatment begins with a casting of the patient’s teeth made from an impression taken at the office.  A bleaching tray is made from this impression and the Dr. then provides the patient with all the necessary instructions and material to accomplish the whitening at home.  Costs are around $300.
• Veneers . These are porcelain shells that are bonded to the front of the teeth.  They reshape the tooth and make the tooth whiter in color.  The costs of veneers range from $600-800 per tooth.
• Gap removal . This procedure uses tooth-colored plastic that is bonded to places where there should be tooth material.  The removal of gaps makes a significant improvement to a smile.  The cost for gap removal ranges from $300-$1,000.

The Tooth Fairy will be billing customers at a per procedure rate.  Only a portion of the cosmetics will be billed to an insurance company, the bulk will be paid by the individual.

Market Analysis Summary how to do a market analysis for your business plan.">

 While people of all ages require a general dentist, Dr. Extractor will be concentrating his practice on cosmetic improvements.  There are two distinct groups of people who use cosmetic dentistry.  The first group is young adults, a group of people that are concerned with their appearance.  The second group is seniors, equally concerned with their appearance, but for reasons, typically economic, have not had the ability to get the work done before.

4.1 Market Segmentation

The Tooth Fairy has two distinct groups of customers:

• Adults . Younger adults, typically 27-39 who are concerned with their appearance. This group can be further defined as both male and female with individual incomes over $45,000 a year.  While some of the target group are professionals, a large segment of this target segment are-live-at-home spouses who do not have a full time job.  This group is more likely than not to consider cosmetic surgery as a method from improving their appearance.
• Seniors . This group sees dental work as a safe way to improve they way they look. They prefer cosmetic dentistry over plastic surgery, which is viewed as a risky cosmetic surgery that this group is less likely to use.  The seniors typically live off of more than $50,000 a year in retirement savings.  This group is almost entirely retired and their day is mainly composed of leisure time activities.

4.2 Target Market Segment Strategy

The Tooth Fairy will target two different segments with specific strategies in the marketing campaign.  While the Yellow Page advertisements will develop visibility among both groups, the seminars will be specifically directed toward the “seniors.”

4.3 Service Business Analysis

The dentist industry is following a trend away from general maintenance toward cosmetics. There is less rampant decay of teeth now relative to five to 10 years ago so dentists are concentrating on areas where there is increased demand.

Please note that The Tooth Fairly’s growth rate is higher than the industry average.  This can be explained by the fact that Steve is concentrating on an emerging niche, and as he is starting a practice from ground zero, so higher than average growth rates can be expected.

4.3.1 Competition and Buying Patterns

There are two forms of competitors:

• The generalist . This type of dentist has a practice centered around general maintenance and does not specialize.
• The specialist . This type of dentist will have a general practice, but in addition to the general practice, they have an area that they specialize in, such as cosmetics.

The buying patterns of patients are based on referrals and trust.  People will chose a dentist preferably based on a referral if that is possible. People new to an area may be unable to get a referral so they find a service provider based on advertising or the Yellow Pages and if they feel comfortable with the provider then they tend to form a long-term relationship with them.

Strategy and Implementation Summary

The marketing strategy will utilize three different methods to generate visibility for The Tooth Fairy’s practice. The sales strategy will be based on educating the consumer so that their decision is an informed one.  By educating the prospective patient, you are empowering them to make the decision rationally by themselves, making them feel comfortable with their choice.

5.1 Competitive Edge

The Tooth Fairy will leverage their two competitive edges to generate market share.

• Customer service . The Tooth Fairy’s entire practice is based on a customer centric service model.  This business model is particularly emphasized when Dr. Extractor is working with patients.  The Dr. believes that the patient must make an informed decision regarding their cosmetic needs.  The Dr. will take significant time detailing what occurs during the procedure, any side effects the patient may notice, as well as the success/failure rate.  Only after the patient has been educated regarding the procedure will the Dr. allow the patient to go forward with the procedure.
• Flexibility . The Dr. recognizes that his patients have busy schedules so he has tailored his practice around being flexible to meet the customers needs. This is an extension to their competitive advantage of customer service, however, the Dr.’s concentration on flexibility is worth noting separately.  The Dr. does not have set office hours in which to schedule appointments within.  He is willing to schedule an appointment at whatever time is needed, including nights or weekends.

5.2 Marketing Strategy

The marketing strategy will be based on developing visibility among prospective patients.  The first aspect of the marketing campaign is a large advertisement in the Yellow Pages which briefly lists the different procedures that the Dr. offers, as well as his flexibility. 

Another method to increase visibility will be free informational seminars that the Dr. will offer, typically through community organizations.  These seminars are an event where people can go and get more information concerning cosmetics as well as get a free individual consultation.  The seminars will be especially attractive to seniors who have more free time, as well as typically take advantage of free informational seminars. 

The third marketing strategy will employ networking through the various organizations that the Dr. is a member of including his church, the Lyons club, the Rotary club, as well as the country club.  As a visible, active member of these organizations, the Dr. will leverage his personal relationships to generate interest in his services.

5.3 Sales Strategy

The sales strategy is based on educating the consumer as much as possible so that they are asking for the service instead of the Dr. trying to convince them they should have the procedure done.  This method is quite effective because it allows the consumer to feel that they arrived at the decision themselves instead of them agreeing to a sales pitch.

When a patient comes in to see the doctor,  there is no charge for the initial consultation.  During this consultation, the Dr. will educate the customer on the different procedures and then analyze the patient’s particular needs.  The patient is then free to ask any questions they have.  After the customer is fully knowledgeable about all the different variables that will effect their procedure, they are then allowed to make a decision as to whether to have any work done.  This sales strategy is geared toward turning prospective customers into long-term customers who are then quite vocal to their friends about the pleasant experiences they had with The Tooth Fairy.

5.3.1 Sales Forecast

The first month will be used to get the new office in order, set up appointments and begin marketing activities.  Month two will see a few appointments, primarily from the prior practice.  Months five through seven will see a jump in cosmetic appointments.  After month seven, there should be a steady increase in sales activity.

5.4 Milestones

The Tooth Fairy will have several milestones early on:

• Business plan completion.
• Office set-up.
• The 20th cosmetic procedure.
• Profitability.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Steve Extractor got his undergraduate degree in biology from Case Western Reserve.  While at Case, Steve knew he wanted to practice health care but was unsure of exactly what. Toward the end of his years at Case, Steve discovered his interest in dentistry.

Several years later Steve became a graduate of The Ohio State University College of Dentistry.  Steve knew that he did not want to live in Ohio for the rest of his life so he immediately upon graduating moved out to Oregon, a state that he was always fond of due to its natural beauty.  The first four months were difficult to make contacts and find a job, but Steve eventually landed a job in an eight person firm doing general dentistry.

At this point friction within the practice began to surface as the other Drs. began to feel threatened by Steve’s new skills and thought that his success would be at the expense of their profits.  It was then that Steve decided that his best career move would be to open up his own practice, allowing him the freedom to manage it himself.  He began by looking for already established practices which would allow him to open his practice quicker because all the equipment was set up and ready to go.  In order to save money when purchasing an existing practice, Steve decided to look for practices that did not have a large list of patients.  After several months of looking, Steve found a Dr. who was retiring with a small list of patients and went into negotiations for the practice.  After three weeks, the deal was sealed.

6.1 Personnel Plan

In addition to Steve, a hygienist, a dental assistant and a front desk person will be hired during month two.

Financial Plan investor-ready personnel plan .">

The following sections will outline important financial information.

7.1 Important Assumptions

The following table details important financial assumptions.

7.2 Break-even Analysis

The Break-even Analysis indicates what will be needed in monthly revenue to reach the break-even point.

7.3 Projected Profit and Loss

The following table will indicate projected profit and loss.

7.4 Projected Cash Flow

The following chart and table will indicate projected cash flow.

7.5 Projected Balance Sheet

The following table will indicate the projected balance sheet.

7.6 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 8021, Offices of Dentists, are shown for comparison.

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An Introductory Guide to Dental Service Organizations

I am frequently asked by clients (who have developed anywhere from a single practice location to a hundred practice locations) when is the right time to create a dental service organization (or DSO) and what are the considerations that go into the decision as to whether or not to create a DSO structure. The following provides a high-level analysis of the DSO structure and its advantages, the appropriate time to create a DSO, and other related considerations.

What is a DSO?

A DSO provides non-clinical administrative services to dental practices that are owned, operated, and controlled by licensed dentists. A DSO does not have a dental license and cannot practice dentistry, make clinical decisions, or interfere with patient care. However, a DSO can contract with a dental practice to provide non-clinical services that can increase the efficiency of the practice, lower overhead, and ultimately make the practice more profitable. A DSO may be owned by non-dentists and may be bought and sold by non-dentist investors.

What are the Advantages of a DSO?

A properly structured DSO has a number of advantages, including: (1) centralization of administrative support services; (2) achievement of operational efficiencies; (3) achievement of substantial cost savings through volume-based discounts and superior bargaining power; (4) permissible investment and ownership by non-dentist investors; (5) availability of additional lending and financing options; and (6) the ability to sell the DSO (and its contractual management relationships) for a substantially higher multiple than is typically achievable through the sale of individual practices.

When is the right Time to Create a DSO Structure?

Any dentist who intends to expand beyond a single dental office should strongly consider creating a DSO. For dentists with aspirations of expanding to multiple states and/or who wish to obtain private equity investors or other non-dentist investors, it is imperative that the DSO structure be put in place as soon as possible. It is relatively straightforward and cost effective to create a DSO structure at the early stages of a clinical organization. However, the more practices that are added to an organization without a DSO structure in place, the more difficult and expensive it will be to later convert to a DSO structure.

What Does the Typical DSO Structure look like?

A properly structured DSO separates clinical functions and operations from nonclinical functions and operations. On the one hand, you will typically have a 100% dentist-owned professional corporation that performs all clinical functions and employs all clinical employees that, in turn, contracts through a series of business agreements with a DSO that performs all non-clinical administrative functions and employs all non-clinical employees. Often the DSO will own the dental equipment and hold the leases for the office premises, which can then be subleased to the dental practices for a fee. The DSO will also generally own all intellectual property utilized by the dental practices (including trade names and proprietary systems), which can also be licensed to the practices for a fee.

What regulations Apply to DSOs?

The overwhelming majority of states prohibit the corporate practice of dentistry and prohibit fee splitting between dentists and non-dentists. Therefore, it is imperative that the contractual relationship between the DSO and its affiliated dental practices comply with these regulations. As such, it is critical that the agreements do not allow the DSO to improperly control the dental practices or interfere with the independent professional judgment of the dental practice owners. Both the structure of the DSO relationship and the business agreements between the DSO and the dental practices must comply with these regulations.

What is the First Step in Creating a DSO?

The first step in creating a DSO is to develop a business plan for the future growth of your clinical organization, including determining the number of practices you would like to add and the number of states you would like to conduct business. Once you have a clear idea as to your anticipated plan for clinical growth and expansion, you should sit down with competent dental regulatory counsel to develop a regulatory compliant DSO structure for your organization and to develop regulatory compliant business agreements. Once your organization has been structured in a regulatory compliant manner, it will be much easier to attract investors and realize an attractive return.

The DSO structure can be critical to your ability to grow and expand your organization. Any dentists who plan on expanding beyond a single practice location, in multiple states, and/or intend to seek non-dentist investors should strongly consider creating a regulatory compliant DSO structure.

Brian Colao is the Director of Dykema Cox Smith’s Dental Service Organizations Industry Group. He is widely regarded as one of the foremost authorities in the United States on the laws affecting dental service organizations. He can be reached at (214) 462-6409 or [email protected].

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Dental Business Plans

Craft a successful dental practice with a well-structured Dental Business Plan. Navigate growth, secure funding, and make informed decisions.

By Joshua Napilay on Jun 03, 2024.

Fact Checked by RJ Gumban.

What is a Dental Business Plan?

A is a roadmap that outlines a dental practice's goals, strategies, and financial projections. It helps practitioners and stakeholders understand the business's direction and potential outcomes.

Typically created by dentists, entrepreneurs, or dental professionals looking to start their practices or expand existing ones, a well-structured and solid business plan covers a range of essential aspects:

• Executive summary:  A concise plan overview highlighting key points such as the practice's mission, target market, competitive advantage, and financial projections.
• Practice description : Detailed information about the dental services offered, the dental team's qualifications, and the unique value proposition that sets the practice apart from competitors.
• Market analysis:  An assessment of the local dental market, including demographics, competition analysis, and market trends, to identify opportunities and challenges.
• Sales and marketing strategy:  Plans for attracting and retaining patients, outlining approaches for online and offline marketing, patient engagement, and referral programs.
• Operational plan:  Details about the practice's day-to-day operations, including staffing, office layout, equipment, technology integration, and appointment scheduling.
• Financial projections : Forecasts of revenue, expenses, and profitability over a defined period, along with assessing startup costs and potential financing sources.
• Legal and regulatory considerations:  Ensuring compliance with dental regulations, licensing, insurance, and other legal obligations.
• Risk assessment:  Identify potential risks and strategies to mitigate them, ensuring a proactive approach to possible challenges.
• Exit strategy:  Plans for the future, whether growing the practice, selling it, or passing it on to another practitioner.

Creating a dental practice business plan requires careful research, analysis, and strategic thinking. It provides clarity to stakeholders and potential investors about the practice's viability and long-term prospects. By following a well-crafted business structure, dental practitioners can optimize their chances of success in the competitive dental industry.

Printable Dental Business Plan

Download this Dental Business Plan to guide your practice toward success.

How does it work?

Step 1. download the form.

Access the Printable Dental Business Plan form from a reputable source or website.

Step 2. Gather information

Collect all necessary information and data to complete the form, including practice details, market analysis, financial projections, and operational strategies.

Step 3. Read instructions

Carefully read the form's accompanying instructions or guidelines to understand its structure and requirements.

Step 4. Practice description

Provide a clear and concise overview of your dental practice, including its mission, services, and unique value proposition.

Step 5. Market analysis

Analyze the local dental market, including demographics, competition, and trends, to identify your practice's target audience and opportunities.

Step 6. Marketing and sales strategies

Describe your plans for attracting and retaining patients through marketing, advertising, patient engagement, and referral programs.

Step 7. Operational plan

Outline your practice's day-to-day operations, staffing structure, office layout, technology integration, and appointment scheduling process.

Step 8. Financial projections

Project your practice's expected revenue, expenses, and profitability over a specified period, including startup costs and potential funding sources.

Step 9. Legal and regulatory considerations

Address any legal and regulatory obligations relevant to your dental practice, such as licensing, insurance, and compliance with dental regulations.

Step 10. Risk assessment

Identify potential risks your practice might face and detail strategies to mitigate them effectively.

Step 11. Exit strategy

Outline your plans for the practice's future, whether it involves growth, selling, or transitioning to another practitioner.

Step 12. Proofread and review

Thoroughly review the completed form to ensure the provided information's accuracy, coherence, and completeness.

Step 13. Seek professional advice

If needed, consult with legal, financial, or business experts to validate the accuracy and effectiveness of your dental business plan.

Step 14. Print and store

Print a physical copy of the completed dental business plan for your records and safekeeping.

A dental business plan is vital for managing your practice, attracting investors, and achieving your goals in a competitive industry.

Dental Practice Business Plan example (sample)

An illustrative example of a Dental Business Plan can offer valuable insights into the strategic approach for a dental practice. A Dental Business Plans PDF showcases a hypothetical dental practice's blueprint in this context. The example might encompass a brief executive summary outlining the practice's mission, target demographics, and competitive edge. It would delve into comprehensive market analysis, assessing local competition, patient demographics, and emerging trends. The sample plan would also elucidate effective marketing strategies, detailing how the practice aims to attract and retain patients online and offline.

Operational intricacies would be covered, including staffing, office layout, and technology integration. Financial projections would project revenue, expenses, and potential profits, accompanied by a breakdown of startup costs. This hypothetical plan would address legal considerations and potential risks and propose an exit strategy. Such a sample offers practitioners a tangible template to structure their Dental Business Plan, ensuring a clear path toward establishing and flourishing in the dental industry.

Download this Dental Business Plan Example:

When would you use this form?

A  Dental Business Plan  is a pivotal resource for dental practitioners and entrepreneurs alike, serving as a roadmap to navigate the intricate landscape of the dental industry. Here's when this resource becomes indispensable:

• Starting a new practice:  A Dental Business Plan is essential for dentists launching their practices. It outlines the vision, objectives, and strategies for a successful launch, helping practitioners anticipate challenges and set a clear trajectory.
• Expanding an existing practice : Established dental practices seeking growth benefit immensely from a Dental Business Plan. It guides expansion efforts by assessing new opportunities, understanding market dynamics, and refining operational and marketing strategies.
• Securing financing:  When seeking financial support from investors, lenders, or banks, a well-structured Dental Business Plan is crucial. It instills confidence in potential backers by thoroughly analyzing the practice's potential, financial projections, and risk mitigation strategies.
• Strategic decision-making : Even for ongoing practices, a Dental Business Plan is valuable. It aids in making informed decisions about introducing new services, adopting advanced technologies, or revamping marketing efforts.
• Professional collaboration:  When collaborating with other dental or medical professionals, such as specialists or associates, a Dental Business Plan aligns expectations and provides a joint roadmap for shared goals.
• Succession planning : Practitioners considering retirement or transitioning their practice need a Dental Business Plan. It outlines the strategy for passing on the practice while safeguarding its legacy.
• Navigating challenges : During challenging times like economic downturns or shifts in the healthcare landscape, a Dental Business Plan helps practitioners recalibrate strategies to remain resilient.
• Legal compliance:  Dental Business Plans ensure adherence to regulatory requirements, licensing, and ethical standards, safeguarding the practice from legal complications.
• Benchmarking progress : Regularly revisiting the Dental Business Plan enables practitioners to measure their progress against initial goals, fostering continuous improvement.

Enhanced clarity and direction  

Creating a Dental Business Plan provides practitioners with a clear roadmap for their practice's growth and success,  outlining strategic goals and actionable steps.

Informed decision-making 

The comprehensive analysis in crafting a Dental Business Plan ensures that decisions are well-informed, minimizing risks and increasing the likelihood of favorable outcomes.

Investor confidence 

When seeking investment or financing, a robust Dental Business Plan showcases the practice's potential, reassuring investors and lenders about the venture's viability.

Goal alignment 

A Dental Business Plan aligns the entire dental team toward shared objectives, fostering a unified approach and promoting efficient teamwork.

Risk mitigation 

A Dental Business Plan enhances the practice's preparedness to navigate uncertainties by identifying potential challenges and outlining strategies to overcome them.

Long-term viability 

Implementing a Dental Business Plan lays the groundwork for sustainable growth, setting the stage for long-term success and profitability.

A Dental Business Plan is a pivotal resource that assists in planning and launching a dental practice and supports ongoing operations, expansion efforts, and strategic decision-making. Its structured approach empowers practitioners to proactively address challenges, leverage opportunities, and confidently steer their dental ventures toward success.

Moreover, having access to free Dental Business Plans offers an economical way for practitioners to benefit from these advantages while efficiently planning for their practice's prosperous future.

Why use Carepatron as your dental app?

Utilizing Carepatron as your dental app is a strategic choice that offers a comprehensive and streamlined solution for managing your dental business. Carepatron is the premier platform for dental professionals seeking efficient and effective management through a Dental Business app and Dental Business Software. Here's why Carepatron is the best place to fulfill these needs:

• Integrated functionality:  Carepatron offers an all-in-one solution, seamlessly combining various aspects of dental practice management into a single platform. From appointment scheduling and patient records to billing and treatment planning, it provides comprehensive functionality tailored to the specific needs of dental practices.
• Customized for dentistry:  Unlike generic business software, Carepatron is specifically designed for dental professionals. It understands dental practices' unique workflows, challenges, and requirements, ensuring its features and tools align perfectly with your industry-specific needs.
• Efficient patient management:  Carepatron's capabilities empower you to maintain accurate and organized patient records, treatment histories, and appointment schedules. This enhances patient care, satisfaction, and loyalty while streamlining administrative tasks.
• Clinical documentation:  Carepatron's Dental Business Software strongly emphasizes clinical documentation, enabling you to maintain thorough and compliant patient records. This is vital not only for patient care but also for legal and regulatory purposes.
• Financial management:  Carepatron facilitates efficient financial management through features like automated billing, insurance claims processing, and financial reporting. It ensures that the financial aspects of your practice run smoothly, minimizing errors and maximizing revenue.
• User-friendly interface:  Carepatron is known for its user-friendly interface, making it easy for dental professionals and their staff to navigate and use the software effectively. This reduces the learning curve and allows your team to leverage its capabilities quickly.
• Data security:  The platform prioritizes data security, offering robust encryption and compliance with industry standards. This ensures that your patient's sensitive information is well-protected.

Babkins, J. (2022, August 16). Dentistry Business Plan sample. OGScapital. https://www.ogscapital.com/article/dental-office-business-plan-sample/

Dental Office Business Plan - BPlans. (n.d.). Bplans: Free Business Planning Resources and Templates. https://www.bplans.com/dental-office-business-plan/

Dentist Business Plan Template | Business-in-a-BoxTM. (n.d.). https://www.business-in-a-box.com/template/dentist-business-plan-D11957/

FREE 3+ Dental Clinic Business Plan Samples in PDF | MS Word | Apple Pages | Google Docs. (n.d.). sampletemplates.com. https://www.sampletemplates.com/business-templates/plan-templates/dental-clinic-business-plan.html

Lavinsky, D. (2023a). Dental Business Plan Template. Growthink. https://www.growthink.com/businessplan/help-center/dental-business-plan

Lavinsky, D. (2023b). Dental Business Plan Template. PlanBuildr Business Plan Software. https://planbuildr.com/dental-business-plan-template/

Lavinsky, D. (2023c). Dental Business Plan Template [Updated 2023]. BusinessPlanTemplate.com. https://www.businessplantemplate.com/dental-business-plan-template/

Upmetrics. (2023, August 11). Dental Business Plan Template (2023). https://upmetrics.co/template/dental-business-plan

Commonly asked questions

Dental Business Plans help dental professionals start, manage, expand, or optimize their practices.

A solid business plan can help with starting or expanding a dental practice, seeking financing, making strategic decisions, and transitioning the practice plans for succession planning.

Dental business plans set clear goals, analyze the market, plan marketing strategies, detail operations, project finances, mitigate risks, secure financing, and monitor progress. They serve as essential roadmaps for dental practitioners, guiding them through practice management, growth, and decision-making.

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• May 5, 2021

How to write a business plan for your dental practice

• Read Time: 7 min

The Floss / For Dentists / How to write a business plan for your dental practice

A business plan. Your practice simply has to have one. It’s going to lay out all the detailed information that helps you set your practice on the road to success. It’ll include market analysis, a marketing plan, competitive analysis, cash flow projections, and more. 

In essence, a business plan allows you to track, monitor, and evaluate the progress of your practice over a period of time. It allows you to gauge how your practice is progressing against your original projections for your business. This, in turn, will make it easier to make an objective evaluation of your practice’s progress. 

And it functions as an essential marketing document. It helps show stakeholders in your business that your practice is sustainable and worth investing in, whether that investment is monetary or time-based. 

Your business plan should be a living document. As you gain experience and achieve goals, the plan should be modified to reflect changing goals and knowledge you have gained during the time the practice has been in operation. 

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Business plans provide you with a detailed guideline on what steps you need to follow in order to ensure your practice is a success and that it achieves both your short-term and long-term goals. They are an invaluable strategic tool that every dental plan should carefully consider and craft before opening their business. 

Each individual business plan will be unique to you and your business. However, here are some guidelines you can follow to make the process of creating your business plan easier. Some basic elements any business plan should incorporate include:

Executive summary

The executive summary is perhaps one of the most essential parts of the plan. It’s a short section at the start of the plan that summarizes the plan as a whole. Typically, this section is one to two pages in length.

Some elements that should be summarized as part of the executive summary are:

• Legal structure : Key to establishing your practice, determine what type of business it will be. If you’re setting up a partnership, this section should also include percentage ownership of each partner. Other elements that you should mention include resources like attorneys and accountants who will be part of your support team.
• Services provided : Explain which dental services you will be providing in your practice. This section will also clarify what your practice’s unique value proposition will be — what sets it apart from those of your competitors and other  dentists near you .
• Goals : List the overall goals of your practice by priority. You should start with the mission statement and then list out the specific goals.
• Market analysis : An analysis of the dental landscape in your area and your practice’s ability to meet your identified needs.
• Marketing strategy : A quick summary of which strategies you will be employing. This section should be a response to the market analysis, and you should go into more detail in the marketing plan part of the business plan.
• Break-even point : This will also be part of the financial plan and analyses how viable your practice is at the current time.
• Operations plan summary : Summarize what systems you have in place in order to increase the growth of your practice. You will need to go into more detail in the operations plan section.
• Organizational / staffing structure : A summary of how many staff you have, their responsibilities and roles, and a forecast of personnel needs.

This section is key when you approach lenders for loans. It should be enticing to potential lenders and explain how you plan to make your practice a success. Therefore, it should be persuasive and compelling.

While this section goes at the start of your plan, you should write it last. This is because it is a summary of the rest of the plan, and you will need to have a detailed plan completed before you can write it.

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Description of products and services

In this section, you should elaborate on the types of services your practice will provide patients. Explain whether specialty services will be performed in-house or will be referred to outside practices and doctors.

If you’re acquiring an existing practice as opposed to opening a new one, clarify any changes you’ll be implementing to the products and services the practice is already offering. 

Operations plan 

This is where you detail the operational systems that will help you run your practice, meet your goals, and measure how effective you are at achieving your aims.

It will describe how you will procure the products needed to keep the business running, what personnel will be part of your business, and how you will manage your inventory. You’ll also detail factors like hours of operation, any licenses and permits you’ll require before opening, dental insurances that your practice will and will not accept, schedule for equipment maintenance, and so on.

One of the most important parts of your operations plan is detailing a one-year action plan. This will serve as a template for you to follow and help you detail what steps you need to take to ensure your plan is a success.

This section is the ‘nuts-and-bolts’ part of your plan and is likely to be the longest section of your business plan. Managing operations efficiently helps increase profitability and decrease stress. Without an efficient operations plan, you will find meeting objectives and goals a challenging task. 

Market analysis and marketing plan

This is where you’ll document data on how your competitors operate. Some parts of your competitors’ practices you may want to look at include their online presence, SEO rankings, how they manage their digital content, and any other marketing efforts you think is relevant.

Once you have conducted a market analysis of your competitors, you’ll also need to document your own marketing plan. Elements you should include as part of your plan include an overview of your intended market and the type of patients you plan to target, their income level, age, and lifestyle.

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You should also clearly set out how you plan to set your business apart from competitors and maintain your own customer base. For example, if you operate in close proximity to another dental practice, how will you ensure patients looking to  find a dentist  visit your practice over that of your competitor?

Make sure to conduct a SWOT analysis. This is an analysis of your practice’s strengths and weaknesses, as well as the market opportunities you can take advantage of and the threats that your practice faces. This will help you better personalize your marketing plan to your goals while also considering outside factors that could hinder those goals and detailing how you will overcome those issues. 

Your marketing strategy should focus on developing awareness of your practice amongst prospective patients. This will include the use of internal marketing (brochures, posters, newsletters, etc.), external marketing (direct mail, email, advertising, online marketing through websites and social media, etc.), and customer service to ensure your patients have a good experience and keep on returning to your practice.

One key element of the marketing plan for modern dental practices is to map out their website design. Having a well-designed website can help you stand out from competitors and can be hugely beneficial in attracting patients. For example, suppose patients are able to make a  dentist appointment  online quickly. In that case, they are more likely to choose your practice over a competitor that makes it difficult to schedule an appointment. 

If your marketing strategy is going to be significantly different from that of your competitors, you should also explain the rationale behind your choice as part of your strategy.

Financial plan

A financial plan is a key component of the marketing plan and will be the section that’s of most interest to potential lenders. If you’re approaching banks or other individuals for a loan, this section will help them make an informed decision over whether or not to lend to you. Due to its importance, this section should be carefully planned out and meticulously written.

For new practices, the financial plan will be based on 12 and 24-month financial projections, as you won’t already have an existing performance to base it off. Some key elements that you should include in your financial plan include:

• Income projections over a 12 and 24-month period
• Your personal financial statement 
• Collateral you’ll offer in exchange for a loan
• The total amount of funds that will be required by your practice for a 24-month period
• A plan for how the funds will be allocated
• Cash flow forecast
• Historical financial analysis looking into the viability of a dental practice
• Supporting documents that may be required by the lender, including a copy of your credit report, historical financial statements, five-year financial projections, and any other relevant document

Your financial plan should lay out a plan that accounts for the impact of outside financial influences that will affect your finances. These influences include competition, the economy, seasonal variations, and business cycles, as well as any other factors that will impact your practice’s financials. 

Business plan checklist

If you’re just getting started on creating your business plan, there are a variety of templates and checklists that are easily available online. One free downloadable and printable checklist that you can use is  this one .

Before you get started on making your business plan, the American Dental Association (ADA) you make sure to ask yourself some important questions, including: 

• Can you describe your potential dental practice in detail?
• Do you have an actionable marketing plan?
• Who is in the market? What are they doing right — or wrong?
• What pricing and payment policies are you considering?
• What’s your growth strategy?

These will help provide you with a guideline you can refer back to when writing your detailed plan.

The ADA also provides a business plan checklist that is tailored to dental practices. You can download the checklist  here .

FAQs about dental practice business plans

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How much does it cost to open a dental office?

While start-up costs will differ based on where your practice is located and the types of services you plan on offering, the estimated cost of starting a dental practice  can be  upwards of $450,000, with up to a third of that being equipment costs.

How profitable is a dental practice?

On average, dental practices can have  about a  25% profit margin. This profit margin can be more, depending on your specialty, location, and overhead costs. It is also possible to increase the profit margin of a dental practice in a variety of ways. For new practices, it your business plan allow you a profit margin of at least 40%.

How much does a dental office make a year?

The amount you earn is dependent on the type of services your practice offers, including whether or not you offer specialty services.  On average , general practices earn around $770,000 a year, while specialty practices can make around $1.1 million annually. 

How do I write a business plan for a mobile dental clinic?

If you’re planning a mobile dental clinic, the process for writing a business plan is similar to that of writing a plan for a traditional practice. The steps you need to follow will be the same, and any lenders will expect you to present the same information as part of your business plan.

Remember, the executive summary and the financial plan are two key aspects of your business plan when approaching lenders. A well thought-out and well-written business plan does not only make your practice more appealing to lenders but it also provides you with a blueprint to follow in order to achieve personal and business-related goals. So when you’re writing out your business plan, regardless of whether it is for a traditional practice or a mobile clinic, make sure to include all the relevant details.

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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

• Sample Business Plans
• Medical & Health Care

Dental Business Plan

Dentistry is one of the most rewarding and profitable entrepreneurial ventures for any dental professional.

You can easily start a dental business, but you need a detailed business plan when it comes to staying competitive in the market, raising funding, applying for loans, and scaling it like a pro!

Need help writing a business plan for your dental office? You’re at the right place. Our dental business plan template will help you get started.

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

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How to Write a Dental Business Plan?

Writing a dental business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your business:

• This section may include the name of your dental business, its location, when it was founded, the type of dental business (E.g., general dental practice, orthodontic practice, oral surgery practice.), etc.

Market opportunity:

Dental services:, marketing & sales strategies:, financial highlights:, call to action:.

Make sure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business description:

• Business name and type: Describe what type of dental clinic you run and the name of it. You may specialize in one of the following dental practices:
• Oral surgery practice
• Cosmetic dental practice
• General dental practice
• Mobile dental practice
• Pediatric dental practice
• Company structure: Describe the legal structure of your dental office, whether it is a sole proprietorship, partnership, or others.
• Location: Explain where your business is located and why you selected the place.

Mission statement:

Business history:, future goals:.

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The Market analysis section of your business plan should offer a thorough understanding of the dental care industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

• For instance, general dental clinics may target individuals and families seeking routine dental check-ups.

Market size and growth potential:

Competitive analysis:, market trends:.

• For instance, there is an increasing demand for cosmetic dental services such as teeth whitening and dental implants; explain how you plan to address the growth opportunity.

Regulatory environment:

Here are a few tips for writing the market analysis section of your dental clinic business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific dentistry services offered to patients. To write this section should include the following:

Dental treatment & services:

• Teeth whitening
• Tooth extraction
• Cosmetic fillings
• Root canal therapy
• Oral surgery, and more.

Describe each service:

• For instance, tooth extraction involves dental examination, anesthesia, tooth loosening, tooth removal, socket cleaning, post-extraction treatment, and follow-up appointments.

Insurance & Payment Options:

• In addition to these payment options, describe if your dentistry offers regular patients discounts or membership plans.

Additional service:

In short, this section of your dental office business plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

The sales and marketing strategies section describes how you will attract new patients and retain existing ones. Here are some key elements to include in your sales & marketing plan:

Unique selling proposition (USP):

• For example, advanced technology, specialized services, and emergency dental care could be some of the great USPs for a general dental clinic.

Pricing strategy:

Marketing strategies:, sales strategies:, patient retention:.

Overall, this section of your dental office business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your dental business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & training:

Operational process:, safety & infection control :.

• These protocols may include waste management, disinfection, sterilization, infection surveillance, etc.

Equipment & Technologies:

• In addition, provide details on the sourcing and maintenance of these instruments and equipment. Explain how these technologies benefit your patients and help you stand out as a dental service provider.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your dentistry effectively.

7. Management Team

The management team section provides an overview of your dental business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

• Founders/CEO: Mention the founders and CEO of your dental clinic, and describe their roles and responsibilities in successfully running the business.

Key managers:

• It should include, Dental director, department/division heads, committees, and other dentists involved in the operations, including their education, specialization, professional background, and years of experience in the dental care industry.

Organizational structure:

Compensation plan:, advisors/consultants:.

This section should describe the key personnel for your dental care services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

• This exercise will help you understand how much revenue you need to generate to sustain or be profitable.

Financing needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be up-to-date and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the dental care industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your dental business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample dental business plan will provide an idea for writing a successful dental clinic business plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our dental business plan pdf .

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Frequently asked questions, why do you need a dental business plan.

A business plan is an essential tool for anyone looking to start or run a successful dental business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your dental clinic.

How to get funding for your dental business?

There are several ways to get funding for your dental business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your dental business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your dental practice business plan and outline your vision as you have in your mind.

What is the easiest way to write your dental business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any dental clinic business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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How to Create a Business Plan for Your Dental Practice

Creating an effective business plan is essential for any business’s success—including dental practices. Business plans provide detailed information that helps businesses forge a path towards long-term growth and success. Such information may regard market analysis, marketing, cash flow projection, competitive analysis, and other relevant business information. By determining such information and crafting a plan, businesses can focus on the actionable steps necessary to turn their goals into a reality and achieve their short- and long-term objectives. As such, business plans are an invaluable strategic tool that all businesses should take the time to carefully craft. To learn how to create a business plan for your dental practice, continue reading.

Executive summary

The executive summary is an essential aspect of any business plan. It is a short section that summarizes the entirety of your business plan in a way that allows readers to quickly become acquainted with the key points and its main purpose. Typically, your executive summary should not exceed two pages.

This section is especially important when it comes to approaching lenders. It should entice the potential lender to help you receive the funding you need to get your practice up and running. Therefore, your executive summary should be written in a way that is persuasive and compelling. Let the lender know how you intend to make your business a success and express the vision of your practice.

While the executive summary will be included as the first section of your business plan, it should be the last area that you write. Because the executive summary is a compilation of all other areas of your business plan, you must have already flushed out such details before writing it.

Description of products and services

This section should provide information regarding the products and services that your dental practice offers. If you are acquiring an existing practice, make sure to detail any major changes that will be made to the products and services that were being offered by the previous practice owner. For example, if you are planning on offering additional services that the current owner is not offering, mention them here.

When creating a business plan for your dental practice, you should also include a section that details how it will be managed. In this section, detail information about the type of business structure your practice will have. For example, you should determine if your practice will be structured as a partnership, corporation, or sole proprietorship.

This section should also include a list of the management personnel and professional advisers that will comprise your team, such as financial partners, insurance agents, real estate advisors, attorneys, and business associates. In addition to compiling a list of key management professionals, you should provide further information on their job responsibilities. Such information will help prove to business lenders that you have a plan for how your office will function and that you have the necessary support system to be successful.

Competitive analysis and marketing strategy

In this section, you should include data on what your competition is doing regarding their online presence, digital content, SEO rankings, and other relevant data. Upon detailing the state of your competitor’s marketing efforts, you should then detail your own marketing plan.

Here, you should first provide an overview of your intended market and your target patient. Include information on their income level, age, and lifestyle. If you target patient is similar to that of a competing dental practice in the area, clearly state how you intend to set your practice apart from your competition and maintain a consistent customer base.

In addition, you should also detail a content map and provide information regarding your website design. If your practice will be taking a different approach from other competitors, note it in your strategy and clearly provide a rationale as to why.

Financial plan

One of the most important sections in your business plan is the financial plan. This section will be of chief interest to potential lenders, as it will help them make an informed business decision regarding whether they can approve your loan proposal. As such, it should be carefully planned and written in great detail. Here, you should list a variety of relevant financial information, such as the following:

• Projected income of your practice for the initial 12- through 24-month period
• Cash flow forecast
• Personal financial statement
• Information on how startup funds will be allocated
• Total funds required by your practice for the following two years
• Offered collateral
• Historical financial analysis

Supporting financial documents

In addition to the above information, you should also provide the necessary supporting documents that potential dental lenders can review when making their decision. If you are undergoing a dental practice acquisition , many of the necessary documents will be provided by the selling dentist. However, you will have to prepare some of them. Such financial documents to provide in this section may include:

• Present business financial statements
• Recent copy of your credit report
• Copy of current aging schedule
• Three years of historical financial statements, individual income tax returns, and business income tax returns
• Current personal financial statement
• Prospective financials for five years such as forecasts, cash flows, and projections

Such financial documents should be 90-days old or less to be considered current under lending guidelines.

Financial influences

In the financial section of your business plan, you should also provide information that displays you have accounted for the impact of financial influences. Such influences may include business cycles, competition, the economy, seasonal variations, and other events that may impact your practice’s finances. All other information included in your financial plan should account for such influences.

The operations section will likely be the last and longest section of your business plan. Here, you will get into the nitty-gritty details the day-to-day operations that occur at your practice. You should provide information regarding the following information to provide lenders with a clear picture of how your practice will function:

• Office hours
• Days of operation
• Necessary equipment and supplies
• Major suppliers you plan to source equipment from
• Equipment-maintenance schedules
• Ideal patient flow
• Dental insurances you do and do not accept

Henry Schein Professional Practice Transitions is the leader in dental practice sales and transitions. Whether you are purchasing or selling a practice, we can help you through every step of the process. Thanks to our extensive marketing resources, national network of dental transition consultants, and superior hands-on client services, your dental practice transition is sure to be as advantageous as possible. To get started on the transition process, schedule a free 30-minute phone consultation with Henry Schein Professional Practice Transitions today.

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.

• Branding , Business , Dental , Healthcare

Dental Business Plan for Your Dental Practice

• May 5, 2021

Although being in the business of perfecting smiles is more exciting than most occupations, it’s still essential to develop a business plan that is detailed and well thought out so you can maximize your success. A dental business plan should include the necessary steps to help your business find a path to long-term success and growth. The best way to get your practice where you want it to be is to figure out where you are now. In the same way you create treatment plans for patients, you will make adjustments based on your needs to lead you to your desired results. 

As you begin drafting this plan, you should consider including details such as market analysis, cash flow projections, general marketing, competitive analysis, and more. By determining what factors impact the continued success of your practice and building a marketing strategy based on these factors, you can focus on taking the following steps to turn your goals into reality. 

Read a Sample Business Plan

Executive Summary for Your Dental P ractice

Every dental business plan should begin with an executive summary to provide the lender with an overview of the topics discussed within the document. This summary should be clear and concise so that your reader can easily interpret your plan and figure out the next steps. On average, this section will be about two pages long. 

The executive summary is a critical component of your business plan and serves a bigger purpose than providing an outline for your audience. While it should briefly explain your dental practice, it needs to go beyond utility and grab your reader’s attention and engage their interest, so they are inclined to read the plan all the way through. Make sure this section is well written and contains essential information that the lender needs to know.  

Not only should the executive summary be comprehensive and engaging, but it should also be easy to read. If the writing style is choppy, it will take longer for the reader to comprehend, and your message may be lost on them. 

Essentially, it should feature all of the important details in your plan that will be relevant to the lender. The details included in the executive summary can vary, depending on the needs and goals of your practice. However, every executive summary must include the following elements:

• How you will go about implementing your business plan
• How many employees you will hire
• Budget and funding allocation for operations
• Competitive market analysis
• Services and products offered
• What your target market is
• The objective

Writing an Executive Summary

It’s critical that your executive summary is customized to your practice and the goals of your dental plan. Avoid using generic summaries you’ve seen online because they will come across as vague and not provide the necessary background information needed to understand the specifics of your practice. 

Because this section should only be two pages long, it can be difficult to sum up the most important aspects of your plan. To combat this, many professionals recommend writing the entire business plan and saving the executive summary for last so you can take note of all the details you want to highlight in the summary. 

An Engaging Introduction is Crucial

To capture your reader’s attention, make sure that you have an engaging introduction that is relevant to the dental field. As you begin your executive summary, you should state the objective of your dental business plan clearly and include high-priority information. In each section, include any statistics and relevant details that will back your plan and build credibility between your practice and the lender.

Edit the Document

Editing your dental business plan is an essential step in the writing process that will influence the success of your delivery. You wouldn’t go over a treatment plan with patients that has errors, unclear messaging, or other overlooked mistakes. If your thoughts seem scattered and your text is littered with poor editing, typos, and wrong punctuation, this will undermine your credibility and won’t inspire lenders to believe in the success of your business. To inspire trust in your reader, make sure you fact-check statistics, remove the passive language, and filter out any repetitiveness. 

Getting Help

Effective writing doesn’t always come naturally, and it can be a smart business decision to hire outside help, such as an editor or a professional content writer. These experts can also go over work you’ve already written to make it flow better and rid it of errors. Ensuring that your dental business plan is well written will give you extra confidence as you present it to lenders. 

Company Description

The company description should directly follow the executive summary and will outline what makes your practice unique, such as what you hope to achieve, what services you offer, how large your practice is, and more. This portion of the dental business plan will serve as a roadmap for your direction and vision for the practice so that a lender can establish a personal connection and gain a deeper understanding of you and your staff. 

Provide Basic Information 

• Start by including the official name of your practice.
• List the type of business structure
• Include the names of all of the important people behind the practice, such as other dentists
• List the exact location of the practice
• Include your mission statement. This statement should clearly and accurately represent the purpose of your practice.
• Add the target market and services, providing an overview of the services and products you will offer.
• A vision statement will explain your vision for the future of your practice, such as expansion, offering higher-end services, etc.

How to Write a Company Description

Once you’ve gathered all the information you need to include in your company description, make sure you present it in a way that is interesting to the reader. Begin by telling vital details about your dental practice and give an overview of your practice goals. 

Your entire dental plan will be centered around your office and vision, so some of the information you give in this section will be repeated throughout the document. The company description will give an overview of these practice details for readers to refer back to for clarification. 

In this section, you can capture the personal interest of a lender by demonstrating your passion for dentistry through clear and meaningful writing. Explain why you felt the desire to start a dental practice and what you hope to accomplish through your work. 

Detailing the Dental Services Your Practice Will Offer 

Once you have included the previous information, you should detail the products and services your dental practice offers. If you’re purchasing an established practice, make sure you list any changes you plan on making to the services offered by the previous owner. 

Instead of a bullet point list of your services and products, make sure this section highlights the benefits and quality of your offerings and how these will propel your dental practice into becoming an authority in your area and in your field. 

You can use this section to explain how your practice will compete with other dental practices in the area that offer similar services and how your practice is a unique business that will enrich the community. 

When writing up this section, be sure to include:

• A complete description of the services you’re planning to offer
• How the services and any products will be priced
• A comparison of the services offered by competing dental practices
• Any type of literature you will use, such as information pertaining to how your website will play in your efforts to obtain new patients.
• Include any needs your practice will have, such as desktop computers that will be used to store and update patient records
• Any future services you plan to offer

Be Brief, Yet Engaging 

While this section may not be as exciting, it can still be engaging. After all, the services you offer are the tools you use to give people the smile of their dreams. This is your passion, so you should explain the services you offer and why prospective patients need your dental practice to live a higher quality of life and enjoy better oral health. 

Use this portion of your dental business plan to highlight the services that set you apart from your competitors. For variation, include the levels of services you offer or your price points for each treatment. Our goal is to make the reader feel well informed on what makes your practice unique by consistently engaging with the content. However, we advise that you avoid overwhelming this section with too much detail. Instead, try to keep your descriptions concise so you can clearly communicate your services and why your team is the most qualified to provide them. 

As a master of your field, you are knowledgeable about every aspect of dentistry and how to use your skills to help your community. However, your reader may not share the same background knowledge. Make sure you refrain from using too much medical jargon and focus on describing your services in layman’s terms. 

Dental Office Management & Daily Operations 

Behind every great practice is a great management plan. Include in your business plan a section that details how the practice will be managed and the structure of your business. A detail worth including is whether your practice will be structured as a corporation, sole proprietorship, or a partnership. This section is also a great place to include a list of your employees and professional advisors that will help lead your team to long-term success. 

Market Analysis

In the next section of your dental business plan, examine the market around you and include data about your competitors, such as their SEO ranking, digital content, online presence, and other relevant information. The more you study the marketing data of those around you, the better informed you will be as you craft your own marketing efforts. 

Where to Start 

You should begin this section by providing an overview of your intended dental marketing plan and your target patient base. Be sure to include information on their income level, age, and lifestyle. If a competitor in your area has a similar target patient, specify in your plan how you will customize your marketing plan to set your practice apart as an authority to attract a consistent and loyal patient base. 

This portion of your dental business plan is the perfect place to include a wireframe design and a sitemap regarding the plans for your website. If you decide to make vastly different design and content choices from your competitors, explain why your strategy will be more successful in communicating your message. 

Many dentists find this section to be challenging because it requires them to investigate and analyze their competitors. However, you are most likely already aware of your competition or can find them by doing a simple search online. 

Learn Everything You Can About the Competition

When you’re investigating your competition, you want to know:

• What market segments the competition serves
• What benefits they offer
• Cost of sales
• Assets to sales
• Percent of sales
• Why patients go to them

During your research, learn as much as you can about their promotions, sales, costs, services, pricing, and any products they sell. By doing this in-depth analysis, you will demonstrate to lenders that you’ve taken all the necessary steps to make your business a success and an asset to the community. 

Analyzing the Information

After you’ve completed your market analysis, you can use this background information about your competitors to create a plan that details how your practice will compete with them. Good information to include in this portion would be services you offer that they don’t or if they have higher prices than your practice for similar services. We want you to stand out from the crowd so prospective patients can see that you’re the clear choice for their treatment. In pursuit of this goal, it’s necessary to analyze this market information and identify what you have to offer that differs from the competition. 

Writing Format

To make your information easier for the lender to understand and follow, organize this section purposefully for your readers. In the first paragraph, outline who your competitors are and what portion of the market they attract. Your next paragraph will detail your dental practice’s advantage over the competition and how your office will achieve success. 

The goal of this section is to persuade the lender reading your business plan that you not only understand your competition but have also created an expert plan that will allow you to compete with other dentists in the area. 

Include Financial Planning in Your Business Plan

At the core of every effective business plan is a thorough financial plan. This section will be the most important to lenders and investors as they decide whether or not they can approve your loan proposals. As you write your financial portion, be sure to include great detail that will reassure your audience that you have the knowledge and skill it takes to craft a successful practice. 

Relevant financial and funding information that should be detailed include: 

• A personal financial statement that details your current cash flow 
• Marketing and other expenses 
• Total funds required by your dental practice for two years
• Projected income for the first one to two years.
• Offered collateral
• Historical financial analysis
• How funds for your start-up will be allocated.
• Any financial documents that can support your projections. 

As you complete the financial section of the document, include a paragraph that demonstrates that you’ve accounted for the impact of various financial influences. This may include seasonal variations, the economy, the competition, and other events that may impact your dental practice’s finances. You have taken the time to plan out every detail to bring your dream to life, and now it’s time to put this plan to paper and give lenders the answers to any questions they have. 

Dental Operations

The final section of your dental business plan should be the operations section. This section should be your longest and will include all of the details related to the day-to-day operations of your practice. 

You should provide the following information to lenders and investors with a clear picture of how your dental practice will function:

• Days of operation
• Hours of operation
• Major supplies you need to source equipment from
• Ideal patient flow
• Maintenance schedules for equipment
• Necessary equipment and supplies and suppliers
• Dental insurances that will and will not be accepted
• If you offer certain services, or if you’re a specialist in your field.  

While creating this section, envision what the main takeaways are of the information you’re providing. This will help you avoid adding unnecessary information in favor of using concise but informative language. 

Essentially, this section is designed as an outline that will include expense and capital requirements for your dental practice that you will need to operate daily. Take the opportunity to go into detail about your dental practice’s procedures, goals, and objectives, 

This section of the plan will outline each step you will take to accomplish your dental practice’s mission and should include answers to the following questions:

• The cost amount that every department will require to complete their jobs
• Deadlines for when goals and tasks will be completed
• Information concerning where the daily operations will take place
• A description for each department
• Departments or people who will be in charge of completing tasks

Objectives and Goals

In your writing, you must include a clear goal and objective that everyone on your team will be focused on completing. When you state your dental practice’s operational objective, you give your team a standard to work toward, and you give lenders a benchmark to measure. 

Do You Need to Hire a Business Plan Consultant?

For your dental business plan to be effective, it has to be detailed and professionally written. Many dentists find that while they know everything about their practice, it can be difficult to produce written content like this on such a high level. For this reason, many dentists choose to hire a consultant to help them plan and write their dentist business plan.

A professional consultant would help guide you every step of the way, whether you are purchasing or selling a dental practice. Consultants with a focus on business planning have extensive marketing resources and networks of dental consultants that can help you develop a well-written plan for your dental practice. With this skill set, these consultants can also help you create an efficient marketing strategy for you to include in your business plan. 

When you work with a consultant on your business plan, you can have the reassurance that every section of the document is covered. A business plan that is written and developed by a professional can give you more confidence in your content as you give it to lenders for review. 

Know When to Get Help

If you are struggling to create an engaging business plan, then it may be time to call in the help of a professional. There are different experts to help you along the process, depending on which aspects of the document are proving to be challenging. 

If you are confident in your writing skills but would like guidance on what information to include in your plan, then you can hire a consultant who will go through and revise your work. However, if you are finding the actual writing of the plan to be your biggest roadblock, you can hire a consultant to take over the writing portion and help you communicate what your practice’s objectives and goals are to a lender. 

While consultants can be helpful in creating a professional business plan, no one knows your practice and its goals better than you. If you do decide to outsource work for the document, make sure you remain available while they work so you can understand the process and make recommendations for each section .

Tips from the American Dental Association 

According to the American Dental Association, your dental practice can follow the same basic guidelines as small businesses do to create an effective plan that aids your growth and reaches your audience. 

The ADA goes on to explain a few staples of creating an effective business plan, which includes:

• Creating a growth strategy
• Creating a payment policy and pricing
• Knowing your market-do your research
• Describe the dental practice in detail, including services, target customers, and products

If you’re purchasing an established dental practice, their business plan may need to be updated. 

An updated dental business plan should include:

• A current cost analysis
• Dental practice sales
• Recent financial comparisons with other dental facilities in the area
• Current lender terms and information
• Financial statements
• The financial position of the established dental practice

With this in mind, you can create a plan that incorporates all the fine details that a lender will look for in a well-rounded business plan.

Review Your Plan 

Writing a dental business plan may seem like a daunting task, but with a few simple tips, it can be an enjoyable process that leads to producing the document that will kickstart your dream practice. 

Know Your Audience

Something we’ve learned through our work is if you try to create a message that reaches everyone, you won’t be able to reach anyone. Instead, you may need to create a series of business plans that are adjusted to reach your target audience best. For example, if you are trying to secure funding, then you would need to provide the reader with proof that you will be able to make the loan payments. 

Thorough Research

A lender appreciates business plans that show the prospective borrower has extensive market knowledge. To demonstrate this, include market research in your document that is detailed and thorough . Be aware of your own strengths and weaknesses, and show lenders that you understand your limitations and see them as opportunities for growth. 

Know Who Your Competitors Are

As you enter a market, it’s important to understand who your competition is so you can adjust your business plan to set yourself apart. In your writing, describe your strategy to a lender that will explain how you plan to rise to the challenge. 

Be Very Detail Oriented

Your business plan should be concise and engaging, but make sure you don’t leave out any details your reader needs to understand your business. You need your audience to take note of your professionalism and begin to believe in your ability to run a practice. 

Include Key Facts

A well-written business plan should describe your strategy, goals, financials, your management team, competitors, target audience, services, and operations. Without these key factors, your plan may not seem as complete to lenders, and they will be less likely to understand your vision and goals for your dental practice. 

Accurate Financials

It’s essential that you provide your readers with accurate information so you can build credibility. This is especially true of any financial information given in the document. In your dental business plan, you will need to include both sales and costs. We know that it can be difficult to predict sales, so we suggest you hire an accountant to go over your financials if you run into an issue with projections. Don’t let a few numbers stand in the way of you securing important financing. Take the extra step and save yourself the hassle. 

Devote the Most Time to Your Executive Summary

The executive summary is considered among professionals to be the most important section of your plan. An experienced lender will head to this section first to learn about the important facts and figures included in the remainder of your business plan. While these details may seem dull, they actually paint the story of your passion for dentistry and how you plan to put this plan into action. Make sure you keep this in mind as you write, so your content feels engaging and encourages them to read through the rest of the document. 

Speak with a Business Adviser

To make sure your document is as effective as possible, hire a business advisor to review your rough draft and give you constructive criticism. A review of your rough draft will help you determine which sections need to be revised, cut, or added to in order to make your final product stronger.

Properly Implement Your Plan

It’s important that you view this document as a guide for your strategy that informs how your business will develop. Your dental business plan will include responsibilities and goals that are frequently updated as your business grows. By following a solid plan, you can ensure your practice stays on track and in pursuit of future goals. 

How a Dentist can Increase Their Chances of Getting Approved for a Loan

Your business plan is a great tool when trying to improve your chances of qualifying for a loan, but there are additional steps you can take to ensure success. For instance, we know that lenders want to see that a loan applicant has saved up a minimum of five percent of the loan amount and is not prone to living above their means. This will demonstrate your credibility and strengthen their trust in your practice. Many lenders will provide all of the financing for a start-up, but it’s important to them that they are taking a safe risk on a borrower who makes responsible decisions. 

Know What Your Loan Approval Will Be Before You Apply

Before you try to purchase a start-up dental office or established practice, you will need to get prequalified for a loan. While prequalification isn’t the same as loan approval, it can give you a better understanding of what your borrowing capacity will be. We know that starting your practice is an exciting yet stressful time, and we want you to have as few surprises as possible as you work toward your goals. 

Getting prequalified for a loan will give you an advantage as you begin bringing the dream of your practice to life. There are some landlords who won’t speak to a dentist concerning a lease if they haven’t been pre-approved for financing. Additionally, you will have more negotiating power when you speak to different parties so that you don’t feel cornered by circumstances into accepting deals that aren’t in your best interest. To ensure that this process progresses with ease, it’s important to know whether you qualify for a loan before you make any offers. While there is no guarantee you will be approved for a loan, it’s always better to know your options and limitations sooner rather than later. 

When to Speak to a Lender About Your Dental Practice 

The first step to take as you consider purchasing an existing dental practice or founding a start-up is to speak to a lender who can help finance your vision. Lenders can act as expert advisors that provide invaluable insight and help dentists get in touch with the right professionals to make their dreams a reality. The advice given by bankers is free, so you should take advantage of this resource as you move forward. 

We suggest that you contact a lender prior to negotiations for an existing practice and even before you begin drafting a business plan. During this time, a lender can pre-approve you for a specific amount. If you begin the process without speaking to a lender, you may find yourself overwhelmed and over budget. If you consult with this finance expert before you make financial decisions, you will better understand what you can afford with a new practice, and you will have more flexibility during negotiations. 

Final Thoughts 

Your dental practice is a unique business that has lots of specific services and functions that allow you to rise above the competition. One of the best ways to set yourself up for success is to draft a thorough and descriptive dental business plan that showcases the best aspects of your practice. A dental business plan is a management tool that will help you track and evaluate the progress of your dental practice. This document is a roadmap that will keep you on track to reach your goals and help you gauge your progress based on your initial projections. 

In addition to helping you track your progress, a business plan is a marketing document that you will use to secure financing for your practice from lenders. This dental business plan will help you easily convince lenders that you’re a good risk for their financial backing. If you produce a document that is well-written and properly formatted, you will be able to demonstrate that your dental progress will thrive and join the ranks of other successful businesses. The best part of this document is that it serves as the written version of your dream. You aren’t just selling lenders on facts and figures but also the practice you’ve envisioned where you will use your skillset to craft life-changing smiles in your community. 

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How to Build a DSO

What is a DSO and why should your dental practice be concerned about them? Could your practice benefit from partnering with an area DSO? How could building your own DSO be a profitable and desirable venture? A DSO, or dental service organization , provides contract support services for dental practices. These include:

• Human Resources
• Marketing & Branding
• Capital & Financing
• Tax Services
• Risk Management
• Practice Support

DSOs provide their partner dental practices with advanced technology, career growth opportunities, compliance monitoring assistance, and more vital support that spares each dental practice from the necessity if investing in all these technologies and areas. If you are interested in partnering with a DSO or creating your own thriving DSO, we can help with advice, support, and practical steps.

How Could a DSO Benefit Me?

Are you a dentist or owner of a dental practice? What are some practical benefits of partnering with a DSO? Choose any of the areas listed above and imagine how skilled and talented support in this area could improve your patient care, billing, customer support, or other areas. For example, let’s examine your administrative responsibilities.

The chores of hiring, payroll, and dealing with insurance companies requires experienced and knowledgeable team members. How easy are they to find? When you partner with a DSO, providing these skilled people is the responsibility of the organization and not you, the dentist. Consider how this can improve your balance at work, and allow for more personal time with your family.

Plus, this personnel brings with them the necessary knowledge and setup for using the latest technology, software, and other components that you may not have been able to afford. The DSO provides these resources; they are able to take advantage of bulk purchasing agreements that save money and provide many services for all their partner dental practices. Even simple items like dental floss can be obtained through bulk purchase agreements.

If you are a new dentist, working at a DSO could be a good option when starting your own office right out of school is not. Paying off school debt could be your priority, while also gaining the needed experience and knowledge to open your open practice. You also get the opportunity to learn the latest technologies and practices and see many different dental practices in operation. You can use this knowledge and experience when the time comes to design and open your own dental practice.

What Does it Take to Build a Successful DSO?

Remember that a dental service organization is a support organization that provides a primary resource – people. Your successful DSO must be a people business that focuses on building strong relationships, both with your employees and your partner dental practices. Keeping this fact at the forefront of all your decision-making will keep you focused on the main thing even as you build different aspects of your DSO. What does that look like in practice? Here are four principles for keeping people as your primary focus.

Be a Leader

Lead with passion. Enforce your organization’s purpose, mission, and values on your team. Be a role model for your values. If your aim is to serve others, serve others passionately and respectfully. And expect these values of your team. It is important to have open communication and effectively communicate your expectations to your employees across the board. Maintain a positive attitude about your company and its goals and expect this attitude from others with whom you work. Enforce a “team player” attitude.

Being a good leader also means ensuring your team is adequately trained and has the tools needed for their jobs. An open-door policy is essential to ensuring your team knows that their needs can be voiced. Let others know that you can appreciate constructive criticism and can use it to the company’s advantage. Invest in your team because they will help get you to the top.

Ensure Financial Stability

What kind of financing or investors do you have in the works for your DSO plans? Your financial plan is a staple in your DSO journey. Often, dental loans provide up-front financing for new DSOs. But this may limit you when your business begins to grow and thrive. The right investor could be an option. Consider contacting a financial adviser with your goals and plan prior to starting your organization to ensure safe and reliable financing that will not inhibit your company’s growth.

This feeds into how you are able to provide for your team members. Those professionals who work for you that will go out to serve your partner dental practices must be adequately compensated. When planning your DSO, you need to pay close attention to the pay scales for the different professionals in all the regions you plan to serve. Plan appropriately to support your team and offer good benefits to help build loyalty and professionalism from the beginning.

Invest in Your Team

Your people are your profit. Strategies and processes are important, but if you do not have top-notch people working with you, your business will suffer and partner dental practices will vanish. You need experts in every area of your organization – not just excellent dentists. This includes your hygienists and clerical staff.

Hire well but also train well. Webinars or training sessions are a start. Consider using a third-party company to help train your team for excellence. Select carefully who you want serving in management positions. The right leadership can make or break your business. Remember, investment equals growth.

Create a Culture of Excellence

Make it a goal to standardize that culture of excellence at every location. Patients should be the top priority at every partner dental practice. The morals and high standards of care should be the same at every place of business. Try standardizing your processes as well, not just the way you treat your patients.

For example, the way the staff greets patients, the way the phones are answered and the theme of patient-centered care should all be the same within the organization. That way, patients will recognize excellence and this trickles back through the dental practice to your DSO. Patients are your biggest marketer. Make your DSO stand out by creating a culture of excellence.

Could a dental service organization considerably raise the quality of your dental practice while alleviating many of your headaches? Contact Strategic Practice Solutions, LLC for more information about what we offer to help your dental practice become even more successful.

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Home | Blog | What is a DSO (Dental Service Organization) and How Does it Work?

• Timothy G. Giroux, D.D.S.
• January 11, 2024

What is a DSO (Dental Service Organization) and How Does it Work?

The dental industry, like many other sectors, has evolved to adapt to changing times and technology. One significant development in recent years has been the rise of Dental Service Organizations (DSOs).

It’s important to note, however, that DSOs may not be the best option for everyone. While DSOs can take on some of the difficulties with dental practice management, they often severely limit how much control an owner has over the business.

In this blog, we will discuss the topic of DSOs, explain what they are, how they work, their benefits, downsides, and their potential role in the future of dentistry.

What is a DSO?

Before we explore how DSOs work, let’s begin with the basics: what exactly is a DSO?

A Dental Service Organization, or DSO, is a business model in the dental industry that provides comprehensive support and services to dental practices. These organizations are responsible for managing the non-clinical aspects of a dental practice, allowing dentists to focus on patient care while the DSO handles administrative and business operations.

How DSOs Have Evolved

DSOs have a relatively recent history but have quickly gained prominence. The idea of centralized business support for dental practices began to gain traction in the 1990s, and since then, the concept has grown exponentially.

Key Features and Characteristics of DSOs

DSOs are typically characterized by their ability to offer economies of scale, centralized business functions, and support in areas such as staffing, marketing, billing, and technology. They vary in size and scope, from small regional organizations to large national chains.

Types of DSOs

DSOs come in various forms, each with their unique focus and approach.

• Corporate DSOs
• Emerging DSOs
• Specialty-Focused DSOs

In the current dental industry, the prevalence of these types of DSOs continues to grow. Corporate DSOs have established themselves as major players, while emerging DSOs are on the rise, offering a competitive alternative for dental practices looking for support. Specialty-focused DSOs are also becoming more common as they cater to the specific needs of various dental specialties. The dental service organization model is evolving and diversifying.

How DSOs Operate

Understanding the inner workings of DSOs is crucial for dentists considering partnerships.

Ownership and Management Structure

DSOs may be owned by dentists, non-dentists, private equity firms, or other investors. They often have a leadership team responsible for overseeing the operations of multiple affiliated dental practices.

Providing Administrative and Business Support

DSOs offer a wide range of services, including assistance with hiring and training staff, implementing technology solutions, handling marketing and patient acquisition, and managing billing and insurance claims.

Scalability and Growth Strategies

DSOs often have strategies for expanding their network of practices, which may include acquiring existing dental practices or partnering with dentists looking to sell their practices .

Downsides of DSOs

• Patient Care and Quality Concerns: There are concerns that DSO-affiliated practices may focus more on productivity and profitability, potentially compromising the quality of patient care. Ensuring high standards of care remains a challenge for some DSOs.
• Impact on Solo and Small Group Practices: As DSOs grow, some worry that they may threaten the viability of small, independent dental practices, potentially reducing competition and choice for patients.
• Loss of Autonomy and Lack of Transparency: When you work with a DSO, you are an employee. This means you may not have a say in the business direction and may have less control over clinical decisions.
• Lifetime Earnings: over the course of a career, the difference between owning your own dental practice and working for a DSO can amount to millions of dollars left on the table.

Benefits of DSOs

• Administrative Support
• Access to Advanced Technology and Resources
• Increased Buying Power
• Professional Development Opportunities for Dentists

The Future of DSOs

The future of DSOs is a topic of significant interest and debate in the dental industry. DSOs are likely to play a crucial role in shaping the future of dental care, influencing how services are delivered and how practices operate.

Trends and Growth Projections: DSOs are expected to grow in the coming years , with more dentists exploring partnership opportunities.

Think Twice Before Partnering with a DSO

Dental Service Organizations are an evolving part of the dental industry. Understanding what DSOs are, how they operate, and their potential benefits and challenges is crucial for dentists, patients, and anyone interested in the future of dental care. DSOs offer administrative support, opportunities for professional development, and increased buying power, but they also face concerns about patient care quality and regulatory oversight.

Are you considering a DSO? Reach out to a WPS dental broker for consulting on if it would be the right fit for you.

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How the DSO Dental Model Impacts the Dental Industry

Perspective is everything. This is especially true as you navigate the conversation surrounding the DSO dental model.

The narrative is important because for you it might define or clarify how you perceive your future in dentistry. And frankly, the discussion doesn’t appear to be slowing down anytime soon.

In essence, it’s a conversation about your alternatives for providing excellent patient care while running an efficient dental practice. The good news is that you’re no longer locked into one way of doing dentistry or how you approach the business of dentistry.

Now’s the perfect time to sharpen your perspective and clearly understand your options as relates to corporate dentistry.

First things first. Let’s answer the obvious question you might be asking or seeking clarity about.

What is the DSO Dental Model?

Dental support organizations (DSOs) have appeal to a broad swath of the dental industry. You probably recognize that this approach to dentistry is a topic of conversation among those about other top dental trends .

”According to their industry trade group, the Association of Dental Support Organizations, DSOs contract with dental practices to provide critical business management and support including non-clinical operations. The creation of DSOs, also commonly referred to as dental service organizations, have allowed dentists to maximize their practice from a clinical perspective while relying on the DSO to handle the “business side” of their operations through professional office management. ”

DSOs are structured to provide oversight and accountability within a dental practice relative to their overall operations. Choosing to affiliate with a dental support organization expands your ability to focus on patient care and less on administrative tasks.

The percentage of solo private practices and group practices affiliated with the DSO dental model has steadily increased.

”The American Dental Association Health Policy Institute indicates that 7.4 percent of all practicing US dentists are affiliated with DSOs.”

Being more specific – you might be exiting dental school with a burden of debt to contend with. Or maybe you’re a veteran dentist strapped with a consistent human resources challenge while trying to stay focused on dental care for your growing patient base.

DSOs are equipped to provide relief for those common scenarios. They provide a solution for dentists at every career level or for those seeking specific support to more effectively run their practice.

How Does the DSO Model Work?

As you know, your dental practice has a number of “moving parts.” As a solo practice you have the day-to-day realities associated with providing dental care. Then there’s the business of dentistry that you must handle as well.

That necessary balance of business management and dentistry is common for the American dental practice.

Dental service organizations deliver welcome relief to the business side of running a solo private practice or a private group practice. The DSO model provides essential advantages.

• The administrative advantage includes HR, marketing, team recruitment and training, billing and payroll.
• The compensation advantage delivers consistent pay, salary growth incentives, and in some instances, a signing bonus.
• The insurance advantage can provide more coverage options for your patients as DSOs have access to more providers and related negotiation power.
• The networking advantage provides you increased access to colleagues, specialists, and CE.
• The technology advantage allows you to upgrade your equipment and connected services without incurring the overhead.

A survey and extensive data produced by the Oral Health Workforce Research Center (OHWRC) reveals the various ways DSOs define their function. For example…

• 100% of DSOs “provided similar business and management services.”
• Dentists affiliated with DSOs were categorized as “associates (66.7%), owners (66.7%), and employees (53.7%).”
• “DSOs’ affiliate practices were mainly staffed by general dentists. Approximately 90% of survey respondents indicated that between 61% and 100% of dentists in the organization were general dentists.”

Think of the DSO model as the necessary structure that supports your dental practice. Your affiliation with a dental service organization gives you added assurance of staying focused on dental care while the business of dentistry functions uninterrupted in the background.

How Does It Impact the Dental Industry?

Bottom line: the DSO model allows dentists to stay focused. You can focus on patients and make the necessary clinical decisions confident that non-clinical operations are professionally covered.

Bill Neumann, CEO of Group Dentistry Now/Join DSO confirms,

”Worrying about the business side of running a dental office can be very time-consuming and distracting… The support organization takes care of the business so the dentist can focus on what they went to school for – dentistry.”

In essence this is the perceived value of dental service organizations to the dental industry. It’s why dentists throughout the United States are making the move…and perhaps why your perspective is being clarified as a result.

The solo private dental practice has been the norm for decades. And it’s still the default model for new and veteran dentists.

That being said, many are pivoting and perceiving the longterm scalability of the DSO model as a better career move.

” DSOs are having a significant impact on the dental industry in a number of ways. By taking the business side off of the plates of traditional dentist/owners, those dentists who want to focus solely on clinical excellence have a means of pursuing such an arrangement.”

The common ground of each dental service organization is consistent support. Joining a DSO gives you breathing room and for many that outpaces the perceived and real challenges of how to run a successful dental practice .   

Is the DSO Model Necessary for Dental Practices?

Perception is reality. And if your reality is being overtaken by business management as a practice owner (at the expense of clinical operations)- you can see the appeal of being a DSO dental practice.

Dental groups (and the solo private practice) require a business model that answers the basic question about how to get more dental patients into your office. Alongside that is managing the day-to-day routines common for all brick-and-mortar businesses.

A fair perception about the DSO model and its relevance to your practice is best determined by your longterm ability to balance patient acquisition and care with business efficiency.

The big question that hangs-in-the-air for you is…

What’s the Best Step I Should Take for My Dental Practice?

Your answer could be based on your perception about DSOs in general. Or it could have much to do with the systems you have in place to manage the daily clinical and operational tasks.

One thing is certain whether you choose solo, private practice dentistry, private, group practice dentistry, or the DSO model of dentistry. You can standardize, centralize, and grow your practice with the Planet DDS Denticon Dental Practice Management Software .

Curious how it works? See the Denticon Dental Dashboard in action…

Contact us for more information about how Denticon can streamline your patient care systems including the tasks associated with a DSO affiliated practice.

Dental Business Plan Template [Updated 2024]

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.

You can download our Dental Practice Business Plan Template (including a full, customizable financial model) to your computer here.

Below are links to each of the key sections of a dental practice business plan example:

Dental Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

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DSO Industry

Dental Support Organizations (DSOs) contract with dental practices to provide critical business management and support including non-clinical operations.

Dental Support Organizations

Enables dentists to focus on the patient while delivering excellent dental care.

What is a DSO?

Dental practices contract with DSOs to provide critical business management and support including non-clinical operations. The creation of DSOs have allowed dentists to maximize their practice with the support of professional office management. The DSO model enables dentists to focus on the patient while delivering excellent dental care.

Dental Support Services for Dentists

Centralized practice support DSOs provide an array of non-clinical services to dentists, making it easier for them to run their dental practice. These services include facility maintenance, supply procurement, human resources, compliance, accounting and marketing services.

Advanced technology Thanks to purchasing leverage, available capital and continuous R&D, DSOs enable dentists to utilize state-of-the-art tools and products, such as digital X-rays, electronic health records and CAD/CAM systems.

Professional education & training Many DSOs offer robust continuing education provided by experienced professional dental mentors so dentists can stay abreast of new protocols, equipment, practice management tools and techniques.

Economies of scale Greater buying power and the ability to negotiate with vendors helps DSOs lower dentists’ supply costs. DSOs also help provide access to the capital dentists need for the most modern equipment, and to help support their practices.

The Benefits for Patients

More face time with the dentist By helping to reduce the time that dentists have to devote to the administrative aspects of running their practices, DSOs enable dental professionals to devote more of their time to patient care.

More fl­exible scheduling DSO-supported dental practices are able to offer longer office hours and more appointments, including nights and weekends, to accommodate patients’ work and life schedules.

Access to state-of-the-art care DSO-supported dentists have access to advanced technologies, such as digital X-ray systems and same-day restorations—all of which add up to high quality care and a better overall consumer experience.

Affordable care The purchasing power of DSOs enables dentists to accept more types of insurance plans and provide high quality services that patients value and can afford.

DSO Values & Commitment to Excellence

The values of the Association of Dental Support Organization (ADSO) reflect the standards set by our members. Membership in the ADSO requires adherence to a comprehensive Code of Ethics. Members demonstrate professionalism, share best practices and apply the Code of Ethics in everyday activities.

The ADSO is committed to excellence.We operate with transparency and integrity through significant investments in communities where member-supported dentists practice. Community involvement, innovative services and the highest standards for proven methods are the shared hallmarks of our industry.

The ADSO serves a dynamic and growing industry. Our member companies operate around the world and support thousands of dentists who provide the highest quality of care.

DSOs Provide Critical Business Support

Human resources, marketing & branding, capital & financing, tax services, risk management, practice support, dispelling dso myths.

• About the ADSO

ADSO member organizations support a practice environment where dentists have the ability to choose the administrative services which best allows them to focus on patients, expand access to quality dental care and improve the oral health of their communities.

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How To Start A Business In 11 Steps (2024 Guide)

Updated: Apr 7, 2024, 1:44pm

Table of Contents

Before you begin: get in the right mindset, 1. determine your business concept, 2. research your competitors and market, 3. create your business plan, 4. choose your business structure, 5. register your business and get licenses, 6. get your finances in order, 7. fund your business, 8. apply for business insurance, 9. get the right business tools, 10. market your business, 11. scale your business, what are the best states to start a business, bottom line, frequently asked questions (faqs).

Starting a business is one of the most exciting and rewarding experiences you can have. But where do you begin? There are several ways to approach creating a business, along with many important considerations. To help take the guesswork out of the process and improve your chances of success, follow our comprehensive guide on how to start a business. We’ll walk you through each step of the process, from defining your business idea to registering, launching and growing your business .

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The public often hears about overnight successes because they make for a great headline. However, it’s rarely that simple—they don’t see the years of dreaming, building and positioning before a big public launch. For this reason, remember to focus on your business journey and don’t measure your success against someone else’s.

Consistency Is Key

New business owners tend to feed off their motivation initially but get frustrated when that motivation wanes. This is why it’s essential to create habits and follow routines that power you through when motivation goes away.

Take the Next Step

Some business owners dive in headfirst without looking and make things up as they go along. Then, there are business owners who stay stuck in analysis paralysis and never start. Perhaps you’re a mixture of the two—and that’s right where you need to be. The best way to accomplish any business or personal goal is to write out every possible step it takes to achieve the goal. Then, order those steps by what needs to happen first. Some steps may take minutes while others take a long time. The point is to always take the next step.

Most business advice tells you to monetize what you love, but it misses two other very important elements: it needs to be profitable and something you’re good at. For example, you may love music, but how viable is your business idea if you’re not a great singer or songwriter? Maybe you love making soap and want to open a soap shop in your small town that already has three close by—it won’t be easy to corner the market when you’re creating the same product as other nearby stores.

If you don’t have a firm idea of what your business will entail, ask yourself the following questions:

• What do you love to do?
• What do you hate to do?
• Can you think of something that would make those things easier?
• What are you good at?
• What do others come to you for advice about?
• If you were given ten minutes to give a five-minute speech on any topic, what would it be?
• What’s something you’ve always wanted to do, but lacked resources for?

These questions can lead you to an idea for your business. If you already have an idea, they might help you expand it. Once you have your idea, measure it against whether you’re good at it and if it’s profitable.

Your business idea also doesn’t have to be the next Scrub Daddy or Squatty Potty. Instead, you can take an existing product and improve upon it. You can also sell a digital product so there’s little overhead.

What Kind of Business Should You Start?

Before you choose the type of business to start, there are some key things to consider:

• What type of funding do you have?
• How much time do you have to invest in your business?
• Do you prefer to work from home or at an office or workshop?
• What interests and passions do you have?
• Can you sell information (such as a course), rather than a product?
• What skills or expertise do you have?
• How fast do you need to scale your business?
• What kind of support do you have to start your business?
• Are you partnering with someone else?
• Does the franchise model make more sense to you?

Consider Popular Business Ideas

Not sure what business to start? Consider one of these popular business ideas:

• Start a Franchise
• Start a Blog
• Start an Online Store
• Start a Dropshipping Business
• Start a Cleaning Business
• Start a Bookkeeping Business
• Start a Clothing Business
• Start a Landscaping Business
• Start a Consulting Business
• Start a Photography Business
• Start a Vending Machine Business

Most entrepreneurs spend more time on their products than they do getting to know the competition. If you ever apply for outside funding, the potential lender or partner wants to know: what sets you (or your business idea) apart? If market analysis indicates your product or service is saturated in your area, see if you can think of a different approach. Take housekeeping, for example—rather than general cleaning services, you might specialize in homes with pets or focus on garage cleanups.

Primary Research

The first stage of any competition study is primary research, which entails obtaining data directly from potential customers rather than basing your conclusions on past data. You can use questionnaires, surveys and interviews to learn what consumers want. Surveying friends and family isn’t recommended unless they’re your target market. People who say they’d buy something and people who do are very different. The last thing you want is to take so much stock in what they say, create the product and flop when you try to sell it because all of the people who said they’d buy it don’t because the product isn’t something they’d buy.

Secondary Research

Utilize existing sources of information, such as census data, to gather information when you do secondary research. The current data may be studied, compiled and analyzed in various ways that are appropriate for your needs but it may not be as detailed as primary research.

Conduct a SWOT Analysis

SWOT stands for strengths, weaknesses, opportunities and threats. Conducting a SWOT analysis allows you to look at the facts about how your product or idea might perform if taken to market, and it can also help you make decisions about the direction of your idea. Your business idea might have some weaknesses that you hadn’t considered or there may be some opportunities to improve on a competitor’s product.

Asking pertinent questions during a SWOT analysis can help you identify and address weaknesses before they tank your new business.

A business plan is a dynamic document that serves as a roadmap for establishing a new business. This document makes it simple for potential investors, financial institutions and company management to understand and absorb. Even if you intend to self-finance, a business plan can help you flesh out your idea and spot potential problems. When writing a well-rounded business plan, include the following sections:

• Executive summary: The executive summary should be the first item in the business plan, but it should be written last. It describes the proposed new business and highlights the goals of the company and the methods to achieve them.
• Company description: The company description covers what problems your product or service solves and why your business or idea is best. For example, maybe your background is in molecular engineering, and you’ve used that background to create a new type of athletic wear—you have the proper credentials to make the best material.
• Market analysis: This section of the business plan analyzes how well a company is positioned against its competitors. The market analysis should include target market, segmentation analysis, market size, growth rate, trends and a competitive environment assessment.
• Organization and structure: Write about the type of business organization you expect, what risk management strategies you propose and who will staff the management team. What are their qualifications? Will your business be a single-member limited liability company (LLC) or a corporation ?
• Mission and goals: This section should contain a brief mission statement and detail what the business wishes to accomplish and the steps to get there. These goals should be SMART (specific, measurable, action-orientated, realistic and time-bound).
• Products or services: This section describes how your business will operate. It includes what products you’ll offer to consumers at the beginning of the business, how they compare to existing competitors, how much your products cost, who will be responsible for creating the products, how you’ll source materials and how much they cost to make.
• Background summary: This portion of the business plan is the most time-consuming to write. Compile and summarize any data, articles and research studies on trends that could positively and negatively affect your business or industry.
• Marketing plan: The marketing plan identifies the characteristics of your product or service, summarizes the SWOT analysis and analyzes competitors. It also discusses how you’ll promote your business, how much money will be spent on marketing and how long the campaign is expected to last.
• Financial plan: The financial plan is perhaps the core of the business plan because, without money, the business will not move forward. Include a proposed budget in your financial plan along with projected financial statements, such as an income statement, a balance sheet and a statement of cash flows. Usually, five years of projected financial statements are acceptable. This section is also where you should include your funding request if you’re looking for outside funding.

Learn more: Download our free simple business plan template .

Come Up With an Exit Strategy

An exit strategy is important for any business that is seeking funding because it outlines how you’ll sell the company or transfer ownership if you decide to retire or move on to other projects. An exit strategy also allows you to get the most value out of your business when it’s time to sell. There are a few different options for exiting a business, and the best option for you depends on your goals and circumstances.

The most common exit strategies are:

• Selling the business to another party
• Passing the business down to family members
• Liquidating the business assets
• Closing the doors and walking away

Develop a Scalable Business Model

As your small business grows, it’s important to have a scalable business model so that you can accommodate additional customers without incurring additional costs. A scalable business model is one that can be replicated easily to serve more customers without a significant increase in expenses.

Some common scalable business models are:

• Subscription-based businesses
• Businesses that sell digital products
• Franchise businesses
• Network marketing businesses

Start Planning for Taxes

One of the most important things to do when starting a small business is to start planning for taxes. Taxes can be complex, and there are several different types of taxes you may be liable for, including income tax, self-employment tax, sales tax and property tax. Depending on the type of business you’re operating, you may also be required to pay other taxes, such as payroll tax or unemployment tax.

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When structuring your business, it’s essential to consider how each structure impacts the amount of taxes you owe, daily operations and whether your personal assets are at risk.

An LLC limits your personal liability for business debts. LLCs can be owned by one or more people or companies and must include a registered agent . These owners are referred to as members.

• LLCs offer liability protection for the owners
• They’re one of the easiest business entities to set up
• You can have a single-member LLC
• You may be required to file additional paperwork with your state on a regular basis
• LLCs can’t issue stock
• You’ll need to pay annual filing fees to your state

Limited Liability Partnership (LLP)

An LLP is similar to an LLC but is typically used for licensed business professionals such as an attorney or accountant. These arrangements require a partnership agreement.

• Partners have limited liability for the debts and actions of the LLP
• LLPs are easy to form and don’t require much paperwork
• There’s no limit to the number of partners in an LLP
• Partners are required to actively take part in the business
• LLPs can’t issue stock
• All partners are personally liable for any malpractice claims against the business

Sole Proprietorship

If you start a solo business, you might consider a sole proprietorship . The company and the owner, for legal and tax purposes, are considered the same. The business owner assumes liability for the business. So, if the business fails, the owner is personally and financially responsible for all business debts.

• Sole proprietorships are easy to form
• There’s no need to file additional paperwork with your state
• You’re in complete control of the business
• You’re personally liable for all business debts
• It can be difficult to raise money for a sole proprietorship
• The business may have a limited lifespan

Corporation

A corporation limits your personal liability for business debts just as an LLC does. A corporation can be taxed as a C corporation (C-corp) or an S corporation (S-corp). S-corp status offers pass-through taxation to small corporations that meet certain IRS requirements. Larger companies and startups hoping to attract venture capital are usually taxed as C-corps.

• Corporations offer liability protection for the owners
• The life span of a corporation is not limited
• A corporation can have an unlimited number of shareholders
• Corporations are subject to double taxation
• They’re more expensive and complicated to set up than other business structures
• The shareholders may have limited liability

Before you decide on a business structure, discuss your situation with a small business accountant and possibly an attorney, as each business type has different tax treatments that could affect your bottom line.

Helpful Resources

• How To Set Up an LLC in 7 Steps
• How To Start a Sole Proprietorship
• How To Start a Corporation
• How To Start a Nonprofit
• How To Start a 501(c)(3)

There are several legal issues to address when starting a business after choosing the business structure. The following is a good checklist of items to consider when establishing your business:

Choose Your Business Name

Make it memorable but not too difficult. Choose the same domain name, if available, to establish your internet presence. A business name cannot be the same as another registered company in your state, nor can it infringe on another trademark or service mark that is already registered with the United States Patent and Trademark Office (USPTO).

Business Name vs. DBA

There are business names, and then there are fictitious business names known as “Doing Business As” or DBA. You may need to file a DBA if you’re operating under a name that’s different from the legal name of your business. For example, “Mike’s Bike Shop” is doing business as “Mike’s Bikes.” The legal name of the business is “Mike’s Bike Shop,” and “Mike’s Bikes” is the DBA.

You may need to file a DBA with your state, county or city government offices. The benefits of a DBA include:

• It can help you open a business bank account under your business name
• A DBA can be used as a “trade name” to brand your products or services
• A DBA can be used to get a business license

Register Your Business and Obtain an EIN

You’ll officially create a corporation, LLC or other business entity by filing forms with your state’s business agency―usually the Secretary of State. As part of this process, you’ll need to choose a registered agent to accept legal documents on behalf of your business. You’ll also pay a filing fee. The state will send you a certificate that you can use to apply for licenses, a tax identification number (TIN) and business bank accounts.

Next, apply for an employer identification number (EIN) . All businesses, other than sole proprietorships with no employees, must have a federal employer identification number. Submit your application to the IRS and you’ll typically receive your number in minutes.

Get Appropriate Licenses and Permits

Legal requirements are determined by your industry and jurisdiction. Most businesses need a mixture of local, state and federal licenses to operate. Check with your local government office (and even an attorney) for licensing information tailored to your area.

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Open a Business Bank Account

Keep your business and personal finances separate. Here’s how to choose a business checking account —and why separate business accounts are essential. When you open a business bank account, you’ll need to provide your business name and your business tax identification number (EIN). This business bank account can be used for your business transactions, such as paying suppliers or invoicing customers. Most times, a bank will require a separate business bank account to issue a business loan or line of credit.

Hire a Bookkeeper or Get Accounting Software

If you sell a product, you need an inventory function in your accounting software to manage and track inventory. The software should have ledger and journal entries and the ability to generate financial statements.

Some software programs double as bookkeeping tools. These often include features such as check writing and managing receivables and payables. You can also use this software to track your income and expenses, generate invoices, run reports and calculate taxes.

There are many bookkeeping services available that can do all of this for you, and more. These services can be accessed online from any computer or mobile device and often include features such as bank reconciliation and invoicing. Check out the best accounting software for small business, or see if you want to handle the bookkeeping yourself.

Determine Your Break-Even Point

Before you fund your business, you must get an idea of your startup costs. To determine these, make a list of all the physical supplies you need, estimate the cost of any professional services you will require, determine the price of any licenses or permits required to operate and calculate the cost of office space or other real estate. Add in the costs of payroll and benefits, if applicable.

Businesses can take years to turn a profit, so it’s better to overestimate the startup costs and have too much money than too little. Many experts recommend having enough cash on hand to cover six months of operating expenses.

When you know how much you need to get started with your business, you need to know the point at which your business makes money. This figure is your break-even point.

In contrast, the contribution margin = total sales revenue – cost to make product

For example, let’s say you’re starting a small business that sells miniature birdhouses for fairy gardens. You have determined that it will cost you $500 in startup costs. Your variable costs are $0.40 per birdhouse produced, and you sell them for $1.50 each.

Let’s write these out so it’s easy to follow:

This means that you need to sell at least 456 units just to cover your costs. If you can sell more than 456 units in your first month, you will make a profit.

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There are many different ways to fund your business—some require considerable effort, while others are easier to obtain. Two categories of funding exist: internal and external.

Internal funding includes:

• Personal savings
• Credit cards
• Funds from friends and family

If you finance the business with your own funds or with credit cards, you have to pay the debt on the credit cards and you’ve lost a chunk of your wealth if the business fails. By allowing your family members or friends to invest in your business, you are risking hard feelings and strained relationships if the company goes under. Business owners who want to minimize these risks may consider external funding.

External funding includes:

• Small business loans
• Small business grants
• Angel investors
• Venture capital
• Crowdfunding

Small businesses may have to use a combination of several sources of capital. Consider how much money is needed, how long it will take before the company can repay it and how risk-tolerant you are. No matter which source you use, plan for profit. It’s far better to take home six figures than make seven figures and only keep $80,000 of it.

Funding ideas include:

• Invoice factoring: With invoice factoring , you can sell your unpaid invoices to a third party at a discount.
• Business lines of credit: Apply for a business line of credit , which is similar to a personal line of credit. The credit limit and interest rate will be based on your business’s revenue, credit score and financial history.
• Equipment financing: If you need to purchase expensive equipment for your business, you can finance it with a loan or lease.
• Small Business Administration (SBA) microloans: Microloans are up to $50,000 loans that can be used for working capital, inventory or supplies and machinery or equipment.
• Grants: The federal government offers grants for businesses that promote innovation, export growth or are located in historically disadvantaged areas. You can also find grants through local and regional organizations.
• Crowdfunding: With crowdfunding , you can raise money from a large group of people by soliciting donations or selling equity in your company.

Choose the right funding source for your business by considering the amount of money you need, the time frame for repayment and your tolerance for risk.

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You need to have insurance for your business , even if it’s a home-based business or you don’t have any employees. The type of insurance you need depends on your business model and what risks you face. You might need more than one type of policy, and you might need additional coverage as your business grows. In most states, workers’ compensation insurance is required by law if you have employees.

Work With an Agent To Get Insured

An insurance agent can help determine what coverages are appropriate for your business and find policies from insurers that offer the best rates. An independent insurance agent represents several different insurers, so they can shop around for the best rates and coverage options.

Basic Types of Business Insurance Coverage

• Liability insurance protects your business against third-party claims of bodily injury, property damage and personal injury such as defamation or false advertising.
• Property insurance covers the physical assets of your business, including your office space, equipment and inventory.
• Business interruption insurance pays for the loss of income if your business is forced to close temporarily due to a covered event such as a natural disaster.
• Product liability insurance protects against claims that your products caused bodily injury or property damage.
• Employee practices liability insurance covers claims from employees alleging discrimination, sexual harassment or other wrongful termination.
• Workers’ compensation insurance covers medical expenses and income replacement for employees who are injured on the job.
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Business tools can help make your life easier and make your business run more smoothly. The right tools can help you save time, automate tasks and make better decisions.

Consider the following tools in your arsenal:

• Accounting software : Track your business income and expenses, prepare financial statements and file taxes. Examples include QuickBooks and FreshBooks.
• Customer relationship management (CRM) software : This will help you manage your customer relationships, track sales and marketing data and automate tasks like customer service and follow-ups. Examples include Zoho CRM and monday.com.
• Project management software : Plan, execute and track projects. It can also be used to manage employee tasks and allocate resources. Examples include Airtable and ClickUp.
• Credit card processor : This will allow you to accept credit card payments from customers. Examples include Stripe and PayPal.
• Point of sale (POS) : A system that allows you to process customer payments. Some accounting software and CRM software have POS features built-in. Examples include Clover and Lightspeed.
• Virtual private network (VPN) : Provides a secure, private connection between your computer and the internet. This is important for businesses that handle sensitive data. Examples include NordVPN and ExpressVPN.
• Merchant services : When customers make a purchase, the money is deposited into your business account. You can also use merchant services to set up recurring billing or subscription payments. Examples include Square and Stripe.
• Email hosting : This allows you to create a professional email address with your own domain name. Examples include G Suite and Microsoft Office 365.

Many business owners spend so much money creating their products that there isn’t a marketing budget by the time they’ve launched. Alternatively, they’ve spent so much time developing the product that marketing is an afterthought.

Create a Website

Even if you’re a brick-and-mortar business, a web presence is essential. Creating a website doesn’t take long, either—you can have one done in as little as a weekend. You can make a standard informational website or an e-commerce site where you sell products online. If you sell products or services offline, include a page on your site where customers can find your locations and hours. Other pages to add include an “About Us” page, product or service pages, frequently asked questions (FAQs), a blog and contact information.

Optimize Your Site for SEO

After getting a website or e-commerce store, focus on optimizing it for search engines (SEO). This way, when a potential customer searches for specific keywords for your products, the search engine can point them to your site. SEO is a long-term strategy, so don’t expect a ton of traffic from search engines initially—even if you’re using all the right keywords.

Create Relevant Content

Provide quality digital content on your site that makes it easy for customers to find the correct answers to their questions. Content marketing ideas include videos, customer testimonials, blog posts and demos. Consider content marketing one of the most critical tasks on your daily to-do list. This is used in conjunction with posting on social media.

Get Listed in Online Directories

Customers use online directories like Yelp, Google My Business and Facebook to find local businesses. Some city halls and chambers of commerce have business directories too. Include your business in as many relevant directories as possible. You can also create listings for your business on specific directories that focus on your industry.

Develop a Social Media Strategy

Your potential customers are using social media every day—you need to be there too. Post content that’s interesting and relevant to your audience. Use social media to drive traffic back to your website where customers can learn more about what you do and buy your products or services.

You don’t necessarily need to be on every social media platform available. However, you should have a presence on Facebook and Instagram because they offer e-commerce features that allow you to sell directly from your social media accounts. Both of these platforms have free ad training to help you market your business.

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To scale your business, you need to grow your customer base and revenue. This can be done by expanding your marketing efforts, improving your product or service, collaborating with other creators or adding new products or services that complement what you already offer.

Think about ways you can automate or outsource certain tasks so you can focus on scaling the business. For example, if social media marketing is taking up too much of your time, consider using a platform such as Hootsuite to help you manage your accounts more efficiently. You can also consider outsourcing the time-consumer completely.

You can also use technology to automate certain business processes, including accounting, email marketing and lead generation. Doing this will give you more time to focus on other aspects of your business.

When scaling your business, it’s important to keep an eye on your finances and make sure you’re still profitable. If you’re not making enough money to cover your costs, you need to either reduce your expenses or find ways to increase your revenue.

Build a Team

As your business grows, you’ll need to delegate tasks and put together a team of people who can help you run the day-to-day operations. This might include hiring additional staff, contractors or freelancers.

Resources for building a team include:

• Hiring platforms: To find the right candidates, hiring platforms, such as Indeed and Glassdoor, can help you post job descriptions, screen résumés and conduct video interviews.
• Job boards: Job boards such as Craigslist and Indeed allow you to post open positions for free.
• Social media: You can also use social media platforms such as LinkedIn and Facebook to find potential employees.
• Freelance platforms: Using Upwork, Freelancer and Fiverr can help you find talented freelancers for one-time or short-term projects. You can also outsource certain tasks, such as customer service, social media marketing or bookkeeping.

You might also consider partnering with other businesses in your industry. For example, if you’re a wedding planner, you could partner with a florist, photographer, catering company or venue. This way, you can offer your customers a one-stop shop for all their wedding needs. Another example is an e-commerce store that partners with a fulfillment center. This type of partnership can help you save money on shipping and storage costs, and it can also help you get your products to your customers faster.

To find potential partnerships, search for businesses in your industry that complement what you do. For example, if you’re a web designer, you could partner with a digital marketing agency.

You can also search for businesses that serve the same target market as you but offer different products or services. For example, if you sell women’s clothing, you could partner with a jewelry store or a hair salon.

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To rank the best states to start a business in 2024, Forbes Advisor analyzed 18 key metrics across five categories to determine which states are the best and worst to start a business in. Our ranking takes into consideration factors that impact businesses and their ability to succeed, such as business costs, business climate, economy, workforce and financial accessibility in each state. Check out the full report .

Starting a small business takes time, effort and perseverance. But if you’re willing to put in the work, it can be a great way to achieve your dreams and goals. Be sure to do your research, create a solid business plan and pivot along the way. Once you’re operational, don’t forget to stay focused and organized so you can continue to grow your business.

How do I start a small business with no money?

There are several funding sources for brand-new businesses and most require a business plan to secure it. These include the SBA , private grants, angel investors, crowdfunding and venture capital.

What is the best business structure?

The best business structure for your business will depend entirely on what kind of company you form, your industry and what you want to accomplish. But any successful business structure will be one that will help your company set realistic goals and follow through on set tasks.

Do I need a business credit card?

You don’t need one, but a business credit card can be helpful for new small businesses. It allows you to start building business credit, which can help you down the road when you need to take out a loan or line of credit. Additionally, business credit cards often come with rewards and perks that can save you money on business expenses.

Do I need a special license or permit to start a small business?

The answer to this question will depend on the type of business you want to start and where you’re located. Some businesses, such as restaurants, will require a special permit or license to operate. Others, such as home daycare providers, may need to register with the state.

How much does it cost to create a business?

The cost of starting a business will vary depending on the size and type of company you want to create. For example, a home-based business will be less expensive to start than a brick-and-mortar store. Additionally, the cost of starting a business will increase if you need to rent or buy commercial space, hire employees or purchase inventory. You could potentially get started for free by dropshipping or selling digital goods.

How do I get a loan for a new business?

The best way to get a loan for a new business is to approach banks or other financial institutions and provide them with a business plan and your financial history. You can also look into government-backed loans, such as those offered by the SBA. Startups may also be able to get loans from alternative lenders, including online platforms such as Kiva.

Do I need a business degree to start a business?

No, you don’t need a business degree to start a business. However, acquiring a degree in business or a related field can provide you with the understanding and ability to run an effective company. Additionally, you may want to consider taking some business courses if you don’t have a degree to learn more about starting and running a business. You can find these online and at your local Small Business Administration office.

What are some easy businesses to start?

One of the easiest businesses to start also has the lowest overhead: selling digital goods. This can include items such as e-books, online courses, audio files or software. If you have expertise in a particular area or niche, this is a great option for you. Dropshipping is also a great option because you don’t have to keep inventory. You could also buy wholesale products or create your own. Once you create your product, you can sell it through your own website or third-party platforms such as Amazon or Etsy.

What is the most profitable type of business?

There is no one answer to this question because the most profitable type of business will vary depending on a number of factors, such as your industry, location, target market and business model. However, some businesses tend to be more profitable than others, such as luxury goods, high-end services, business-to-business companies and subscription-based businesses. If you’re not sure what type of business to start, consider your strengths and interests, as well as the needs of your target market, to help you choose a profitable business idea.

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Katherine Haan is a small business owner with nearly two decades of experience helping other business owners increase their incomes.

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Dental Plan Basics: Understanding Your Employee Benefits

Written by Salary.com Staff

February 19, 2024

Dental care is essential, but it can be quite expensive. Fortunately, some companies offer dental plans as part of their employee benefits . If you have dental benefits at work, it is important to understand your plan to make the most of it. Knowing the ins and outs of dental plans helps you budget for out-of-pocket costs. Learn the basics of your dental plan to maximize your employee benefits and keep both your smile and wallet happy.

Overview of Dental Plan Benefits

Most dental plans offer basic coverage for general dental exams, cleanings, fillings, and other routine care.

• Typically, plans cover two dental checkups and yearly cleanings at low or no cost to you.
• Basic fillings, root canals, and tooth extractions are usually covered, at least in part.
• Coverage for crowns, bridges, and dentures varies but often requires a copay.

While a dental plan helps reduce out-of-pocket costs, you will still likely pay a monthly premium and copays for certain services. But even with copays, dental plan benefits provide significant savings. Without it, routine dental care and procedures can cost thousands of dollars per year.

Dental plan benefits also encourage good dental health by making it more affordable to visit your dentist regularly. Preventive care like exams, x-rays, and cleanings helps detect problems early and avoid more complex treatments in the future. By taking advantage of your dental plan’s benefits, you will keep your smile bright and your teeth and gums healthy for life.

What Are the Different Types of Dental Plans?

Dental plans differ from each other, but most will cover stuff like checkups, cleanings, x-rays, and fluoride treatments. There are three main types of dental plans, each with different levels of flexibility and cost control.

• Dental Health Maintenance Organization (DHMO)

This type of dental plan has cheaper premiums, but you will have fewer options when it comes to choosing a dentist. The in-network dentists will care for most of your dental needs, but if you need to see a specialist, your dentist will have to refer you. DHMO plans also have lower out-of-pocket costs for the services you get from in-network dentists.

• Preferred Provider Organization (PPO)

Preferred Provider Organizations, or PPO plans, offer a wider choice of dentists but usually have higher premiums. You can visit any licensed dentist but pay less by choosing a dentist in their network. PPOs allow you to change dentists at any time without notifying the insurance company .

• Exclusive Provider Organization (EPO)

EPO plans are kind of like PPOs, but they only cover out-of-network services in emergencies. You have to stick with the network dentists to get coverage, but EPO plans give you a mix of cost savings and PPO flexibility.

When you're picking a plan, think about what you need, which dentists you like, and how much you can spend. Aside from that, make sure to look at things like deductibles, co-pays, waiting periods, and covered procedures.

What Procedures and Services Are Typically Covered by Dental Plans?

Dental plans typically cover basic and preventive dental services to help you maintain good oral health. The specific procedures and services covered will depend on your plan, but most include:

• Preventive Services

The dental plan benefits include yearly dental exams to check for any oral health issues and prevent dental disease. During these exams, dentists conduct professional dental cleanings, known as prophylaxis, to remove built-up plaque and tartar.

• Basic Services

Dental plans usually cover fillings to restore teeth affected by cavities and provide coverage for necessary tooth extractions. Dental plants typically cover X-rays, which can detect tooth decay, gum disease, or other problems that may not be visible to the naked eye. Dental plans also cover bitewing X-rays during routine checkups, and they usually cover full-mouth X-rays every few years.

• Major Services

Dental plans often cover crowns to restore and protect damaged or decayed teeth and bridges for replacing missing teeth. Dental plans also cover partial or full dentures for individuals with missing teeth. Additionally, the plans include treatment for infections or damage to the tooth pulp through root canals. Insurance plans may limit coverage or reduce the percentage covered for complex procedures such as root canals, oral surgery, or orthodontics.

Check with your dental plan provider to understand your specific plan's coverage details and limits. Note that most standard dental plans do not cover cosmetic dentistry, but some plans may offer discounts or financing options for certain cosmetic services. Make sure to check with your insurance provider before getting any treatment to see how much they will cover and if you will need to pay anything out of your own pocket.

How Much Will a Dental Plan Cost You? Factors That Affect Premiums

The amount you pay in premiums for your dental plan depends on several factors. While specific factors may vary among insurance providers, common elements that typically affect dental plan premiums include:

• Coverage Levels

The specific coverage details, deductibles, copays, and out-of-pocket maximums you choose also affect your premium rates. More comprehensive plans with lower deductibles and out-of-pocket costs mean higher monthly premiums. Basic plans typically have lower premiums but less coverage and higher out-of-pocket expenses.

• Type of Plan

The type of dental plan chosen, such as DHMO, PPO, or indemnity plans, can affect premiums. DHMO plans, which usually have a more limited network, may be less expensive than PPO plans, which offer more flexibility in choosing dentists.

The location or region you live in can influence rates as well. Insurance companies sometimes change the price based on where you reside because dental care costs more in some places.

• Age of Insured Individuals

Your age, family size, and health history all play a part, too. Plans that cover your family usually cost more than ones that only cover you. If you have a lot of dental problems or have had expensive treatments in the past, your rates may be a bit higher. But the good news is that insurance companies can't refuse to cover you or charge you a lot more just because you have pre-existing conditions.

Talk to your employer’s benefits administrator to better understand the dental plan options available and how the costs break down. Review the details of each plan closely so you can determine what level of coverage fits your needs and budget. With some comparison shopping, you can find an affordable dental plan that provides good value.

Tips for Maximizing Dental Plan Benefits

Maximizing dental plan benefits involves making the most of available coverage to maintain oral health and manage costs effectively. To get the most from your dental plan benefits, keep these tips in mind:

• Choose in-network dentists whenever possible.

Seeking care from dentists in your insurance company’s network can save you money since they offer negotiated, discounted rates. Out-of-network dentists can charge more, leaving you with higher out-of-pocket costs.

• Schedule preventive care visits .

Most dental plans cover preventive services like routine cleanings, exams, and X-rays at low or no cost. Take advantage of these benefits to detect any issues early and avoid costly treatments in the future.

• Ask about covered alternatives.

If your dentist recommends a procedure not covered by your dental plan, ask if there are any other options that achieve similar results at a lower cost. There may be alternatives that you’re unaware of that your plan covers.

• Brush up on your dental plan details.

Review your dental plan booklet to understand exactly the coverage, any limits that apply, and your share of costs. Know how much you’re responsible for before receiving treatment, so there are no surprises.

• Use your full annual maximum.

If you don’t use all of your dental plan’s allowed benefits in a year, you lose them. Schedule dental work you’ve been putting off before your year ends or the amount replenishes. But only do what your dentist recommends to care for your teeth properly.

Following these helpful tips will ensure you take full advantage of the dental benefits offered by your plan. With a little effort, you can keep your smile bright and your out-of-pocket costs low.

It's important to make the most of your dental benefits by staying on top of your oral health. Don't let those benefits go unused! Your plan fully covers preventive care services like regular cleanings and checkups, so make sure to take advantage of them in order to save money in the long run. If you require more extensive procedures, such as a crown or root canal, your insurance can help with the costs.

If you have any questions about what's covered or how your plan works, don't hesitate to reach out to your benefits administrator for assistance. Prioritize your dental health and make the most of your coverage.

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At CHAS Health, we offer comprehensive dental services for patients of all ages. From the first tooth to adulthood, we are here for you through all phases of life. Our experienced dentists, hygienists, and support staff work closely together and also coordinate with our medical and pharmacy teams to ensure your visit is timely, efficient, and pleasant.

Dental Care for Kids & Adults

Our preventative services include exams, cleanings, fluoride, and sealants for children and adults. We also provide repair and emergency treatment, including root canal therapy, fillings, crowns, and extractions.

Call to schedule your dental visit. Established patients can schedule online!

Some of our services include:.

• Extractions
• Nitrous oxide sedation
• Oral cancer screenings
• Orthodontic referrals
• Root canal therapy
• Urgent dental needs

Clean & Healthy

Maintaining clean, healthy teeth and gums is as important as eating a balanced diet and regular exercise to prevent health problems. Good oral health means daily care at home and regular dental visits. You should schedule dental visits every 6 months.

Daily Care for Teeth and Gums

• Brush at least twice a day
• Use toothpaste with fluoride
• Floss once every day
• Avoid tobacco products and limit the use of alcohol
• Drink water

Pregnancy and Dental Care

Oral health during pregnancy is important and safe for both you and your baby.

• Changes during pregnancy can cause gingivitis and gum disease. Both of these can cause gum irritation, redness, and swelling, leading to tooth loss.
• Untreated gum disease in pregnant women can harm their overall health and may be linked to low birth weight or preterm births.
• Using x-rays, prescribed pain medication, antibiotics, and local anesthesia is safe throughout pregnancy and while breastfeeding.
• Children are more than three times as likely to have tooth decay if their mothers have high levels of untreated tooth decay.

Dental services are offered at the following locations:

Cheney Health Center

1720 2nd St. Cheney, WA 99004 509.444.8200

Denny Murphy Clinic

1001 W. 2nd Ave. Spokane, WA 99201 509.444.8200

East Central Dental

2211 E. Hartson Ave. Spokane, WA 99202 509.444.8200

East Mission Dental Clinic

1502 N. Vercler Rd. Spokane, WA 99216 509.444.8200

Family Dental

203 E. Dalke Ave. Spokane, WA 99208 509.444.8200

Latah Community Health

803 S. Main St. Suite 120 Moscow, ID 83843 208.848.8300

Lewis & Clark Dental Clinic

844 6th St. Clarkston, WA 99403 208.848.8300

Maple Street Clinic

3919 N. Maple St. Spokane, WA 99205 509.444.8200

North County Clinic

401 S. Main St. Deer Park, WA 99006 509.444.8200

Insurance & Payment

We accept various private insurances and Medicaid and serve those who are uninsured.  For uninsured patients, a sliding fee scale is offered for those who qualify.  Our Patient Resources Coordinators are eager to explain how we can assist you!  Just give us a call!

Find A Dentist In Your Area

In this section

• Schedule A Visit
• Getting Connected
• Telehealth & Telemedicine
• Spokane Urgent Care
• Video Visits Support
• After Hours Care
• Vaccine Info
• Women’s Health
• First Steps
• Group Prenatal Care
• HIV & AIDS
• Hepatitis C Program
• Specialty Pharmacy
• Pharmacy Drop Boxes
• Behavioral Health
• Homeless Outreach
• Student Health

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• AUTHOR'S GUIDELINES

Planning a New Business: Typical Mistakes of a Business Plan in the Service Sector

• Evgeniya E. JUKOVA Russian State Social University, Russian Federation
• Irina Y. ILINA Russian State Social University, Russian Federation
• Mikhail V. GUNDARIN Russian State Social University, Russian Federation
• Elena V. POTEKHINA Russian State Social University, Russian Federation
• Irina N. MISANOVA Russian University of Transport, Russian Federation
• Alexandra I. ZOTOVA Russian State Social University, Russian Federation

According to the statistics, only five percent of the beginning entrepreneurs achieve success and stay afloat. Anyone who has the money can establish a business, but far from everyone can take advantage of opportunities and not become discouraged because of difficulties. Startups start working in the chosen area and do not take into account the business peculiarities of the service sector (or do not know about them), and later pay with their own failure. Thus, analysis of typical mistakes and the development of recommendations are interesting and promising. The article shows the main mistakes of business planning in the service sphere that are the most frequent ones in practice. Their causes and consequences are considered. Recommendations to eliminate these mistakes are made. The article will be useful to a wide range of readers: both beginning entrepreneurs who are only thinking about starting their own business and TOP managers who want to expand their business.

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Copyright© 2023 The Author(s). Published by ASERS Publishing 2023. This is an open access article distributed under the terms of CC-BY 4.0 license.

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