Are you about starting a dental laboratory? If YES, here is a complete sample dental laboratory business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a dental laboratory. We also took it further by analyzing and drafting a sample dental laboratory marketing plan template backed up by actionable guerrilla marketing ideas for dental laboratories. So let’s proceed to the business planning section.
One of the businesses that you won’t find loads of people involved in is a business that requires detailed technical skills and one of such businesses is a dental laboratory business. The fact that loads of people are not involved in this type of business does not mean that it is not profitable.
The truth is that if your office is located in an area with loads of medical facilities, has good vehicular traffic and you have competent and highly qualified technicians under your payroll, you may not have to struggle to get people to patronize your services.
If you are sure this type of business is what you truly want to do after you must have conducted your feasibility studies and market research, then the next step to follow is to write a good business plan; a detailed blue print of how you intend raising your seed capital, setting up the business, managing the flow of the business, sorting out tax and marketing your services.
The truth is that it is one thing to have a fantastic idea cum business plan, and it is another thing for the business plan to translate to profits that is why it is important to assemble a team of dedicated workers to work with if you want to be successful with your dental laboratory business. Here is a sample dental laboratory business plan that is capable of leading you all the way.
A Sample Dental Laboratory Business Plan Template
1. Industry Overview
Players in the dental laboratories industry are known to manufacture dentures, crowns, bridges and orthodontic products customized for individual application as prescribed by licensed dentists.
Technological changes in the Dental Laboratories industry, specifically computer-aided design and computer-aided manufacturing (CAD/CAM) systems, improved the overall quality of products and services offered by industry operators over the five years to 2018.
New and innovative technologies improved efficiency and provided flexibility to industry operators, however, a transforming competitive landscape presented new challenges.
Dental clinics generally attract customers with customizable products. Also, as healthcare reform expands coverage for pediatric individuals, out-of-pocket dental costs will likely decline for these patients, bolstering the number of dental visits and spurring demand for dental laboratories.
The Dental Laboratories industry is indeed a very massive industry in the united states of America. Recent statistics has it that the industry in the United States of America is worth over $5billion, with an estimated growth rate of -1.0 percent between 2013 and 2018.
There are about 50,936 dental laboratories spread across different regions in the United States and they are responsible for employing about 12,830 people that comprises of dentist, dental surgeons, nurses and other health and non – health workers.
It is important to state that there is no dental laboratory that can boast of having a lion share of the available market in the United States.
No doubt, there are several barriers that dissuade entry to this industry. Some of them include heavy regulation, moderate investment costs, a high level of competition and a fast rate of technological change. The industry is capital intensive.
In addition to acquiring, maintaining and updating specialized technical equipment, companies must have access to competitively priced raw materials like nonferrous materials. At the same time, companies entering the industry require a workforce that is specialized in dental equipment production.
While utilizing automation and technology has slightly mitigated the industry’s shortage of dental technicians, with computer imaging experience and medical device expertise, industry operators will still vie for access to a skilled, yet creative workforce.
If you are considering starting your own dental laboratory in the United States, then you should try and work around the industry barriers. The truth is that the barriers to entry in the dental clinic line of business are high due to the significant regulatory requirements and the experience and strength of incumbents.
It is absolutely compulsory for any investor who is looking towards starting a dental laboratory to meet extensive federal, state and local laws and regulations. These regulations relate to the adequacy of medical care, equipment, personnel, operating policies and procedures.
Regulations also involve maintaining adequate records, preventing fires, setting rates and complying with building codes and environmental protection laws. These regulations make it difficult and costly for aspiring entrepreneurs to enter the industry.
2. Executive Summary
Duke Jefferson® Dental Laboratory, LLC is a standard, licensed and certified dental laboratory that will be located in the heart of Westchester County, New York – United States of America. Our laboratory facility is adjacent one of the biggest dental clinics in the whole of New York.
Duke Jefferson® Dental Laboratory, LLC is in the industry to manufacture dentures, crowns, bridges and orthodontic products such as Implants, Inlays, onlays and veneers customized for individual application as prescribed by licensed dentists and also to provide support services for dental clinics. We are well trained and equipped to service the market segments that require our services.
We will ensure that in the line of carrying out our duty, we comply with the laws and health regulations in New York and the United States of America. Our employees are well trained and qualified to handle the wide range of dental services.
Our dental laboratory facility will be opened round the clock to attend to clients (patients). Our workforce will be well trained to operate within the framework of our organization’s corporate culture and also to meet the needs of all our customers.
Duke Jefferson® Dental Laboratory, LLC will ensure that all our patients cum customers are given first class treatment whenever they visit our dental laboratory. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large they grow to.
Duke Jefferson® Dental Laboratory, LLC is a family business that is owned and managed by Dr. Duke Jefferson. He has a Degree in Laboratory Science.
A native of Poughkeepsie, New York, Dr. Duke a notable lab scientist also ran track at Penn State. He started his career at one of the leading dental clinics in New York as a lab technologist. Subsequent roles at the company included Head dental lab, and lead researcher of lab scientists.
3. Our Products and Services
Duke Jefferson® Dental Laboratory, LLC is in the dental laboratory line of business to service a wide range of clients and of course to make profits, which is why we will ensure we go all the way to ensure that we hire competent dental lab technicians. We will be involved in;
- Manufacturing customized dentures
- Manufacturing customized crowns
- Manufacturing customized bridges
- Manufacturing customized orthodontic products such as Implants, Inlays, onlays and veneers
4. Our Mission and Vision Statement
- Our vision is to become one of the leading brands in the dental laboratory line of business in New York and to establish a one stop dental laboratory in Westchester County – New York and in other key cities in the United States of America.
- Our mission is to establish a world – class dental laboratory business that will be involved in the manufacturing of quality dentures, crowns, bridges and orthodontic products such as Implants, Inlays, onlays and veneers customized for individual application as prescribed by licensed dentists at affordable prices.
Our Business Structure
Our intention of starting a dental laboratory business is to build a standard dental laboratory in Westchester County – New York. We will ensure that we put the right structures in place that will support the kind of growth that we have in mind while setting up the business.
We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Lead Dental Lab Scientists (Manager)
- Accountant/Cashier
- Marketing and Sales Executive
- Client Service Executive
- Dental Laboratory Technologists and Scientist
5. Job Roles and Responsibilities
Lead Dental Lab Scientist (Manager):
- Responsible for providing direction for the business
- Responsible for fixing prices and signing business deals and payment of salaries
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Accountable for managing the daily activities in the organization
- Ensures that the facility is in tip top shape and conducive enough to welcome customers
- Prepares budget and reports for the organization
- Defines job positions for recruitment and managing interviewing process
- Carries out staff induction for new team members
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Regularly holds meetings with key stakeholders (clients and member of the board) to review the effectiveness of the business Policies, Procedures and Processes
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Carries out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Oversees the smooth running of the daily activities of organization.
Dental Laboratory Technicians
- Responsible for the design and manufacturing of customized dentures, customized crowns, customized bridges and orthodontic products such as Implants, Inlays, onlays and veneers customized for individual application as prescribed by licensed dentists.
- Handles any other duty as assigned by the manager.
Marketing and Sales Executive
- Identifies, prioritizes, and reaches out to new clients, and business opportunities et al
- Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies
- Documents all customer contact and information
- Represents Duke Jefferson® Dental Laboratory, LLC in strategic meetings
- Helps to increase sales and growth for Duke Jefferson® Dental Laboratory, LLC
Accountant/Cashier
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for the organization
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for Duke Jefferson® Dental Laboratory, LLC
- Serves as internal auditor for Duke Jefferson® Dental Laboratory, LLC
Client Service Executive
- Welcomes clients and visitors by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Consistently stays abreast of any new information on the organizations’ products and, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
- Receives parcels/documents for the company
- Distributes mails in the organization
- Handles any other duties as assigned
6. SWOT Analysis
We are quite aware that there are a number of dental laboratories in United States of America, which is why we are following the due process of establishing a business. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.
Duke Jefferson® Dental Laboratory, LLC employed the services of an expert HR and Business Analyst with bias in technical startups to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Duke Jefferson® Dental Laboratory, LLC;
- Strength:
Some of the positives that we are bringing to the fore in terms of strength is the fact that we can boast of having some of the most competent and qualified dental lab technologists around Westchester County – New York under our payroll. We are not ruling out the fact that we have robust business network with loads of dental clinics across the city.
- Weakness:
A major weakness that may count against us is the fact that we are a new dental laboratory business and we don’t have the financial capacity to compete with multi – million dollar dental laboratories.
- Opportunities:
The rising elderly population will drive demand for dentures, bolstering industry revenue and also strong demand for affordable dental restorative solutions will drive industry growth. So also, the fact that we are going to be operating our dental laboratory close to the largest dental clinic in Westchester County – New York provides us with unlimited opportunities to offer our services to a large number of clients.
We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our dental laboratory.
- Threat:
Improving technology which ultimately will lead to durability of dental laboratory products will pose a threat to our business. This is why dental practitioners will aim towards maximizing revenue through the use of evolving technologies. Another threat that may likely confront us is the arrival of a new dental laboratory outlet in same location where ours is located. So also, unfavorable government policies may also pose a threat for businesses such as ours.
7. MARKET ANALYSIS
- Market Trends
If you are conversant with dental laboratory, you will quite agree that most dental laboratory locate their facilities close to dental clinics as it enables them attract clients who want to make use of customized dentures, crowns, bridges and orthodontic products.
So also, the need to meet up with international best practices and conforming with the regulatory authority will result in revenue growth, but profit margins will stagnate as dental laboratories keep prices low to attract more sales amid growing competition.
A close watch on the dental laboratory business activities reveals that, the industry has indeed done pretty well due to the strong demand for latest dentures, crowns, bridges and orthodontic product.
Another notable trend in the dental laboratories industry is that external factors such as number of people with private health insurance and Per capita disposable income will impact industry performance. Besides, the burgeoning elderly population provides the industry with both challenges and new revenue streams.
8. Our Target Market
We have positioned our dental laboratory to service businesses in the healthcare industry in and around Westchester County – New York and every other location where other outlets of our dental lab will be located. We have conducted our market research and feasibility studies and we have ideas of what our target market would be expecting from us.
We are in business to offer a wide range of dental laboratory services to the following customers;
- Hospitals
- Medical laboratories
- Medical colleges
- Dental clinics
Our competitive advantage
Top on the list when it comes to the competitive advantages that we will be bringing to the table are access to a highly skilled workforce, a good technical knowledge of the product, access to the latest technology and of course establishing an economy of scale.
We can confidently say that the location of our dental laboratory business will definitely count as a positive for us amongst any competitor that might start a dental laboratory business in same location where ours is located. For the time being, Duke Jefferson® Dental Laboratory, LLC has no real competitors that can match compete with the quality of services we offer. Our customer service will be customized to meet the needs of all our customers.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Duke Jefferson® Dental Laboratory, LLC is in business to attend to a wide range of clients in and around Westchester County – New York. We are in this line of business to maximize profits and we are going to go all the way out to ensure that we achieve or business goals and objectives. In essence, our source of income will be;
- Manufacturing customized dentures
- Manufacturing customized crowns
- Manufacturing customized bridges
- Manufacturing customized orthodontic products such as Implants, Inlays, onlays and veneers
10. Sales Forecast
One thing is certain when it comes to dental laboratory business, if your facility is centrally positioned within a location where you have a good number of dental clinics and health facilities, you will always attract customers and that will sure translate to increase in revenue generation for the business.
We are well positioned to take on the available market in Westchester County – New York and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six months of operation and grow the business and our clientele base.
We have been able to critically examine the dental laboratories industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for Duke Jefferson® Dental Laboratory. It is based on the location of our business and other factors as it relates to dental laboratory start – ups in the United States;
- First Fiscal Year: $250,000
- Second Fiscal Year: $350,000
- Third Fiscal Year: $550,000
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor within same location.
- Marketing Strategy and Sales Strategy
Before choosing a location for Duke Jefferson® Dental Laboratory, LLC we conduct a thorough market survey and feasibility studies in order for us to be able to penetrate the available market and become the preferred choice for dental clinics, hospitals and healthcare facilities in and around Westchester County – New York.
We hired experts who have good understanding of the industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Westchester County – New York. In summary, Duke Jefferson® Dental Laboratory, LLC will adopt the following sales and marketing approach to win customers over;
- Introduce our dental laboratory by sending introductory letters alongside our brochure to hospitals, dental clinics and key stake holders in Westchester County – New York
- Print out fliers and business cards and strategically drop them in offices, libraries, public facilities and train stations et al.
- Use friends and family to spread word about our business
- Leverage on referral networks such as agencies that will attract clients who would need our customized services
- Advertise our dental laboratory in relevant health magazines, newspapers, TV and radio station.
- Attend relevant expos, seminars, and business fairs et al to market our services
- Engage in direct marketing approach
11. Publicity and Advertising Strategy
Despite the fact that our dental laboratory is well located, we will still go ahead to intensify publicity for the business. Duke Jefferson® Dental Laboratory, LLC has a long-term plan of opening outlets in various locations all around New York and key cities in the United States which is why we will deliberately build our brand to be well accepted in Westchester County before venturing out.
As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Duke Jefferson® Dental Laboratory, LLC;
- Place adverts on community based newspapers, radio and TV stations
- Encourage the use of word of mouth publicity from our loyal customers
- Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business.
- Ensure that our we position our banners and billboards in strategic positions all around Westchester County – New York
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Advertise our dental laboratory business in our official website and employ strategies that will help us pull traffic to the site
- Brand all our official cars and vans and ensure that all our staff members wear our branded shirt or cap at regular intervals.
12. Our Pricing Strategy
Our pricing system is going to be based on what is obtainable in the industry, we don’t intend to charge more and we don’t intend to charge less than our competitors are offering. The prices of our services will be the same as what is obtainable in the open market throughout the United States’ market.
- Payment Options
The payment policy adopted by Duke Jefferson® Dental Laboratory, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America. Here are the payment options that Duke Jefferson® Dental Laboratory, LLC will make available to her clients;
- Payment with cash
- Payment via credit cards / Point of Sale Machines (POS Machines)
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
In view of the above, we have chosen banking platforms that will enable our client make payment for all services and products without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting / leasing a big facility, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
The materials and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a dental laboratory and medical equipment repair business; it might differ in other countries due to the value of their money. These are the key areas where we will spend our startup capital on;
- The total fee for registering the business in the Unites States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
- Marketing promotion expenses for the grand opening of Duke Jefferson® Dental Laboratory, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The cost for hiring business consultant – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $75,600.
- The cost for laboratory remodeling (construction of racks and shelves) – $20,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
- The cost for start-up inventory (dental laboratory tool box and equipment)) – $50,000
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost of purchase and installation of CCTVs: $7,000
- The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
- The cost of launching a website: $600
- Miscellaneous: $5,000
We would need an estimate of $250,000 to successfully set up our dental laboratory in Westchester County – New York.
Generating Startup Capital for Duke Jefferson® Dental Laboratory, LLC
Duke Jefferson® Dental Laboratory, LLC is a private registered business that is solely owned and financed by Duke Jefferson. He has decided to restrict the sourcing of the startup capital to 3 major sources. These are the areas we intend generating our startup capital;
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about $50,000 (Personal savings $40,000 and soft loan from family members $10,000) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.
One of our major goals of starting Duke Jefferson® Dental Laboratory, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to offer our wide range of dental laboratory products and services a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Duke Jefferson® Dental Laboratory, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List/Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of facility and remodeling the dental lab facility: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Establishing business relationship with hospitals, dental clinics and other health facilities: In Progress