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Dental Business Plan Business Plan

Executive Summary 2:30 Dental is a new dental office in Miami, FL, and will be started by a young dentist out of school, who will purchase an existing dental practice from a retiring dentist. This purchase will essentially allow the practice to have an existing customer base. Some investment may be needed to bring the equipment, and the medical records, up to date with modern standards. The dentist will target a variety of high-margin and value-added markets in order to attract high lifetime value clientele. Many dentists seeks these customers, but Miami has a higher-than-average growth rate in population and is a strong market for many high-margin services. As such, it is expected that the clinic can be profitable quickly. The operational structure will be similar to that of most dental practices.

Company Description

2:30 Dental is a dental office located in Miami, FL. The office will perform a variety of services. The core service will be basic dental – cleanings, fillings, etc. It will refer specialty dentistry to other offices. 2:30 Dental will also perform value-added services that leverage the skills of the staff, such as Botox injections (Harnois, 2017), as these services can be a valuable source of additional income. There will also be a focus on higher-margin procedures such as porcelain veneers, implants and endodontics (Kesner, 2017). Furthermore, the dentist loves children, and wants to place some marketing emphasis on that market in particular.

Market Analysis

At the macro-level,...

IBIS World reports the total market size to be $129bn with a compound annual growth rate of 2.1%. That group feels that industry revenue will continue to increase in the coming years because of "increased access to dental care and greater disposable income" (IBIS World, 2017). The Bureau of Labor Statistics records that there are 105,620 dentists in the US today, with a growth rate of jobs at 1.9%, which is larger than the population growth rate of 0.81% (CIA World Factbook, 2017), supporting IBIS' assessment that there is some market growth owing to more than just population growth.
However, dentistry markets are localized, which means that a new office is best set up in an area with a growing population, or where there is a favorable dentists-per-capita ratio, in particular if disposable income rates are high. Population growth in Miami-Dade County is generally higher than the national average, meaning that there is new demand for dentistry even without spending growth (Rabin, 2016).

Strategy Formulation

There are high fixed costs associated with running a dental office. Systems for maintaining electronic health records alone can run into the tens of thousands. Entering the market without a customer base typically requires a dentist to take losses – for years sometimes – in order to build a book of business. 2:30 will enter the market by purchasing an established practice from a retiring dentist. Buying an existing business allows for some…

Sources used in this document:

References



BLS.gov (2017). Occupational employment and wages: Dentists. Bureau of Labor Statistics. Retrieved August 5, 2017 from https://www.bls.gov/oes/current/oes291021.htm



CIA World Factbook (2017). United States. Central Intelligence Agency. Retrieved August 5, 2017 from https://www.cia.gov/library/publications/the-world-factbook/geos/us.html



Harnois, P. (2017) The journey into total facial esthetics with Botox. Dental Economics. Retrieved August 5, 2017 from http://www.dentaleconomics.com/articles/print/volume-100/issue-11/features/the-journey-into-total-facial-esthetics-with-botox.html



IBIS World (2017). Dentists in the US: Market research report. IBISWorld. Retrieved August 5, 2017 from https://www.ibisworld.com/industry-trends/market-research-reports/healthcare-social-assistance/ambulatory-health-care-services/dentists.html

Kesner, M. (2017) Four ways to increase revenue. Dental Economics. Retrieved August 5, 2017 from http://www.dentaleconomics.com/articles/print/volume-103/issue-7/personal-enrichment/four-ways-to-increase-revenue.html

Rabin, C. (2016) South Florida population hits 6 million for first time. Miami Herald. Retrieved August 5, 2017 from http://www.miamiherald.com/news/local/article68048512.html

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