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With any B-Plan Purchase
425 Page Capital Directory
Through Apr. 30


Custom Business Plan
$425 Flat Rate
No Templates Used
7 Day Turnaround

All Purchased Plans
Are Updated for 2017

Dental Practice SWOT Analysis

 

Strengths

 

Dental practices are always able to remain profitable given that people will continue to have issues with their teeth. Most people have dental insurance, which allows people to visit a dentist. The barriers to entry for starting a new dental practice are moderately high given that an owner-operator must have completed a rigorous education before receiving a license to practice dentistry. The startup costs for a new dental practice ranges from $50,000 to $250,000 depending on the location and the number of plumbed chairs in the office. One of the primary strengths of these businesses is that their access to capital is tremendous given the economically secure nature of these businesses. Competitive issues are considered moderate for a new dental practice as the demand currently outweighs the supply of dentists in the market.

 

Weaknesses

 

As with any healthcare focused business, reimbursements from private insurance are an ongoing issue that needs to be addressed by a dental practice operator. Competition, as stated above, is a moderate issue for most dental practices.

 

Opportunities

 

One of the quickest ways to increase the revenues of a dental practice is to employ hygienists that can increase the billings of the business through regular tooth cleanings. Additionally, established dental practices are often placed on the market for sale. The price to earnings multiple for these businesses generally range from 1.5 to 3 times earnings. Financial institutions are almost always willing to provide growth capital to dentists that are seeking to acquire practices that are in profitable operation. Some dentists seek to expand their revenues by hiring additional practitioners that can render services to patients.

 

Threats

 

Medicare, Medicaid, and private insurance continue to cut the benefits provided to their members. As such, this is one of the most prominent issues that a dentist needs to deal with as they develop their practice. While competitive threats are important to any business, these issues are not that great - especially in rural areas where demand is greatest. In order to remedy the issues related to competitive issues, some dentists have turned towards using a concierge model in order to create a regularity of earnings.


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