Business Plan for a Dental Clinic – GUIDE

We continue our series of articles on how to make a business plan for a dental clinic.

business plan. This time we will analyze how to create a business plan for a dental clinic.

The dental sector is expanding and is one of the most attractive options for entrepreneurship for both dental graduates and investors. Because it is a service of massive demand and presents high profitability.

However, it also offers challenges because it is a highly technical service and the increased competition experienced in recent years. Therefore, the planning and strategy that is reflected in the business plan will play an essential role in determining the success of the investment.

To help you in this process we have prepared this guide where we will show you the key aspects that you should take into account when creating a business plan to set up your dental clinic. In order to have a consulting for your dental clinic, search dentist Dothan AL

How to Create a Business Plan for Starting a Dental Clinic

Why start up a dental practice?

Before starting with the main content of the article, we are going to analyze the reasons why you should start your project with those of many others, as shown by the increase in the number of clinics in recent years.

I’m sure you have noticed that lately, you keep seeing new clinics opening in your city. This is due to the great attractiveness of this activity.

First of all, it is an essential medical service that is not covered by social security. Therefore, the potential clients of a clinic with a wide range of services are 100% of the population.

On the other hand, the population’s interest in oral health care has increased. The demand for both surgical and esthetic services has increased.

A study carried out by the company Dental Monitor shows that since 2003 the number of people who have gone to the dentist in the last year has increased by almost 50%. Going from 36.1% in 2003 to 50.3% in 2017.

Finally, and perhaps most importantly, it is a service that is currently able to maintain a price level that allows it to maintain very attractive profitability.

Challenges to take into account in the business plan of your dental clinic.

Before starting to draw up a business plan for your dental clinic, you should take into account all the challenges that the sector presents. In this way, you will be able to make realistic forecasts and be prepared to face the challenges that arise.

In this sector of dental clinics, it is worth mentioning the high level of competition. Due to the arrival of large national chains and the consolidation of clinics with many years of experience in the market.

Besides, taking into account the highly technical factor of the service, this makes this sector highly competitive. Where it is necessary to develop a business plan guided by an experienced professional to contemplate all the key aspects that will affect the business.

Business plan for a dental clinic

In the following points, we will analyze the sections that the business plan should have. Highlighting the factors to be taken into account in each of them.

Market analysis

The first step in your business plan will be to carry out a market analysis. In this research you should include the following points:

Internal analysis: in which you will detail all the internal factors that will help you to carry out your project. These could be the performance of the professionals that form it, the place where the facilities of your clinic will be located, the innovative business model, your funds, etc.

External analysis: where you should analyze your competitors and their differentiating characteristics. As well as the potential clients you will be targeting. Bearing in mind that most of them will be in the vicinity of your clinic since proximity is an important factor for clients in this sector.

SWOT: by putting together the data from your internal and external analysis, you should carry out SWOT analysis. In which you highlight the weaknesses, threats, strengths, and opportunities presented by a project.

With these three points, you will obtain a complete vision of your position in the market. You will be able to work on the following points of the business plan of your dental clinic to take advantage of market opportunities through your strengths and mitigating threats by reducing your weaknesses.


Dentistry as a business – good or bad?

Money, profit, and dentistry? Sometimes that combination sounds weird, ugly, or uncomfortable to deal with, but consider the following:

Dentistry is a wonderful and sacred profession because it addresses a very important aspect of human health, but at the same time, it involves business aspects that are usually put on the back burner but are actually extremely important to know about and implement.

If you engage in private dentistry as part of your activities, whether we like it or not, whether it sounds ugly or not, we are talking about an activity that has business overtones, so it is important not to neglect that aspect of your activity.

Considering that your activity as a dentist is basically a business does not make you a bad person or a bad professional?

On the contrary, considering it in this way will allow you to offer a better service to your valued patients.

Being a professional in any area of healthcare does not mean that you have to lead a life full of sacrifices and deprivation without being able to truly enjoy it.

At the same time, The dentist in Dothan AL does not mean that you have to become an evil health merchant who is only motivated by money and personal well-being.

There must be a fair balance where you professionally offer your knowledge, your effort, and your skills to improve other people’s lives, but at the same time, you get fair benefits and rewards that also allow you to improve your life and that of your family.

It’s a win-win situation, isn’t it?

I’m telling you, I grew up in a home of dentists (both my parents are dentists) and during my childhood, I experienced firsthand the great effort my parents put into their jobs, but still didn’t get enough benefits to allow them to truly enjoy life.

In my father’s dental practice there was little to do, not enough patients coming in, and sometimes when we were lucky and if there was a lot of work, the problem was that at the end of the month… there was very little real profit for him.

That was an obvious result because even though my father has always been a very dedicated professional, a very skilled dentist, and naturally with a great deal of knowledge and experience in dentistry, the problem was in his lack of knowledge about business management, marketing, advertising, and so on.

And that is a big problem that is repeated in a lot of dental practices…

Nowadays, if you want to survive in this competitive market, it is important to consider to a certain extent, a dental clinic or dental office as a business, as long as you don’t lack professional ethics, don’t advertise at extremely low prices that affect the profession and in general that you keep the quality of your services and your professionalism intact.

That will provide you and your family with enough benefits, but above all, and I think this is the most important thing: it will provide you with more freedom, more happiness, less stress and in general will allow you to help more people.

In my father’s case, it gave him a sense of personal and professional self-fulfillment as a dentist that he never imagined he would achieve.

Now his growth in profits has allowed him to offer higher quality services, in a much larger space and also allows him to finance projects of a social nature where services are provided at no cost to people of proven scarce resources.

Basically, with the change:

– The clinic won.
– My father won.
– The family won.
– The community won.
– We all won…

And that’s the first thing I want you to understand…

A dental professional can seek and achieve higher profits without the need to breach professional ethics or engage in anti-competitive practices.

More money allows you to do more… it gives you the possibility to offer better services to your patients, it allows you to grow personally, it gives you the possibility to improve the quality of life of your family and optionally if it is your desire, it also allows you to help those in need.

Have you come across those clinics or dental offices that advertise and denigrate the profession by offering exaggerated discounts, using low-quality materials, and generating price wars that only affect us all?

THAT is an example that reflects exactly the wrong way to consider a dental clinic as a business because such efforts only generate counterproductive effects for everyone.

If you want to consider your dental practice as a business and do it the right way, there is a path to follow.

It all starts with your preparation in business, marketing, advertising, and business ethics and then combining this new knowledge with what you have already acquired in dentistry in terms of ethics, the humanization of the profession, etc.



The business model for a dental clinic

You are a dentist. You are here. And for sure, when you finish reading this post you are going to be grateful. Let’s talk about strategic consulting for dental clinics and the business model for a dental clinic.

The Spanish Social Security covers a very small part of the needs we require in oral health, the large chains and insurers monopolize 80% of the market share and what remains is treated in an innumerable volume of private clinics whose competition is enormous.

Even so, if you are looking for the dentist Dothan AL, there is no need to be afraid, either because you are going to open your own center or because you have been practicing for many years, you can achieve success. The clinical-dental sector is very competitive and today dentists, like other professionals, need knowledge and training as managers of their business activity to ensure the continuity of their own business.

different business models for dental clinics

The business model for a dental clinic

The first step is to be clear about the objective. A business that is competitive implies satisfying an increasingly personalized demand from patients.

A business model -of excellence- is that which in the end fulfills all the initial expectations, and the clearer and more defined the beginning is, the more guarantees of success it has. Reflection, analysis, and data are of vital importance. Especially, knowing the competition.

Clarify whether your clinic is going to be a generalist, for orthodontics, low cost, or at the service of dental chains. Think it through judiciously, like molars. The main sections that make up the business model are three broadly speaking:
Cost structure. Analyzing the main activity, fixed and variable costs, key resources, and/or possible partners or alliances.
Value proposition. Have you ever asked yourself what your real value proposition is? That is, have you thought about what you can offer that is significantly different from your competition and whether your patients will really be able to appreciate it?
Source of revenue. The patients and the relationship with them, the market segment, and the commercial channels.

In short, it is a question of establishing, from the outset, an optimization system for the dental practice, without the imperative need to depend on third parties (insurance companies or large health care chains), with profitable quality criteria and guaranteeing the satisfaction of your patients. Whether it is a dental center with many employees, a local one in a neighborhood, or in a small town.

The management concept and its purpose, the business vision of the dental clinic as a service company, the figure, and functions of the manager, and the commercial and marketing approach are the basic pillars of the business model.

Design and validation of your clinic

The study of the competition, any type of innovative idea, the competitive advantages, and, above all, the market and patient segments are the parameters that must define your dental practice. Even before that, we recommend that you read this content where we explain how much it costs to open a clinic.

What differential value do you offer?

A value proposition is everything that makes you different from the competition and that, in addition, is what your client is willing to pay you for. Think about it: quality, service, or price?

The location of your business, the importance of details, comprehensive treatment or specialization, availability of hours, perfect communication with your patients and their treatments, etc., are values that differentiate you from the competition.

A good dental clinic business model secures patients. Do it.