Sample business plan for dental laboratory

Business plan for Dental Laboratory


Business description. 2

Survey of competition. 3

Marketing strategy. 5

Operating Procedures and plan. 6

Location. 6

Policies. 6

Personnel 7

Business Insurance. 8

Capital Equipment and Supply List 8

Breakeven Analysis. 9

Income Projection. 10

List of Suppliers. 10

Copy of resume. 11

Scaled Drawing of Laboratory Layout and Design. 11



Business description

My dental laboratory will be concerned with supporting dental health through design and customization of dental fixtures. These may include crowns, dentures and dentures. The Dental lab will work under instruction form registered dentists to provide oral health services to the local population. I intend to increase my scope of operations to the regional and the national level with an eventual goal of going international. This is in line with my goal of improving the dental health industry through provision of quality laboratory services. The USA’s health industry is worth about $3 trillion. Of this amount, about 3% is concerned with dental health services (Emmanuel 45). While this figure is impressive, it does not translate into high standards of dental health. Indeed, much of the population does not understand the value of quality dental laboratory services. Dental laboratory services have become increasingly commercialized. Many are now targeting the high end market with cosmetic dental fixtures. Many dental laboratories have priced out the low end segment market segment leaving millions of Americans without access to quality dental health products (Emmanuel 25).  My business will aim to reverse the trend by offering quality, but affordable dental lab services. I will design my products to bridge the dental laboratory service gap in the low to middle class market segment. I will leverage my business growth on the high amount of awareness on dental health among Americans. My business will work with the association of dental health professionals to highlight the fact that dental laboratory services are a necessity, not a luxury.

My business will also offer cosmetic dental services. The market for these facilities has exhibited rapid growth over the past decade, defying the financial crisis to become the fastest growing segment of dental health services in the USA. This market segment is expected to be a primary driver of growth for my targeted industry. I especially take mote of the fact that the number of Americans aged 65 and older is expected to increase by 35% over the coming decade (Emmanuel 127). This change in population dynamics means that the number of clients seeking cosmetic dental implants will rise significantly. As a for-profit organisation, by business will tap into this growing market segment to achieve corporate targets.

This plan offers outline the strategy for expansion and growth. It offer a unique opportunity to identify potential risks and offers a chance to understand the lab operations (Stein 41). As such, it is a very important document to the achievement of my corporate objectives.

Survey of competition

Though the dental health industry has remained resilient in the face of economic stagnation. Many of my potential rivals are in their mature phase of business growth. Rising costs of dental education are preventing a rapid expansion of the dental health services sector. As stated above many of my competitors, such as R&R, Henry’s Dental Lab and Continental Dental labs have specialized in provision of high end dental fixtures and ceramics. These companies all have operation within the California area. Continental dental labs is a privately help organisation that employs close to 50 people at the California unit. It has an annual revenue of over $1 million. This company sells dental equipment in addition to offering dental lab services. 

Another competitor, R&R Dental Labs employs 9 employees at their California operation. This California-incorporated firm has an annual revues in the range of $500000. It has been offering dental lab services to within the state since 1991. Henry’s dental labs is another competitor. This business was founded in 1969 and has been operating on a staff of between 1 to 4 personnel since then, it has annual revues that total about $500000 and from its dental lab services in California. Revenue data for these firms is shown below:

The rising costs of dental equipment, as well as increased training costs for dental lab personnel have seen average costs of dental services increase consistently over the past 25 years. Many of my potential rivals have partnered with exiting dental clinics to capture their intended markets. Further, many of my competitors, such as Keller labs are members of national dental lab networks. These networks have the stated goal of enhancing national dental health through provision of quality lab services. As members of these lab networks, these firms have enhanced influence over federal health policy. The biggest of these networks, known as Dentex, is comprised of more than 60 dental labs across the USA. I recognize the fact that these networks pose stuff competition to non-members, particularly due to their high research and development capabilities. In the dental health industry, access to progressive heath technology is vital to industry dominance. As an aspiring leader of the dental health industry, I intend to tap into the research and development resources of current dental lab networks by joining a dental lab organization. This membership will also enable me to strategically acquire inside knowledge on industry domination tactics.  

Another potential source of stiff competition for my business is bound to emanate from the increased number of dental lab mergers in the US market. It is clear that with the market maturing, many dental companies are coming together to combine resources for easier market dominance. The biggest of these, Modern Dental Laboratory USA, is aiming to dominate the health industry through provision of cutting edge dental lab services to the local and international market. It is vital to note, however, that most of my competition has neglected the low end market niche. Indeed, most dental insurance plans are only accessible to 20% of the population. While this is partly due to the rising costs of operation in the industry, it is also related to the commercialization of dental lab services. With the low income market facing a shortage of dental lab services, I plan to exploit the resultant business opportunity by offering affordable health services.

Marketing strategy

My marketing campaign will focus on use of electronic and print media to raise awareness on the need for quality dental health services. With majority of having access to internet enabled smartphones, I will market my services on social media with a focus on target markets. I will also utilize email marketing to reach former clients. My business will also make use of mainstream media in its marketing campaign. However, due to the relatively low cost effectiveness of this strategy, I will mainly utilize electronic marketing in the form of mobile applications, social media and email marketing campaigns,


Operating Procedures and plan

My dental lab will function under the standardized quality practices instituted by the international standard organisation with regards to in quality management in medical device manufacturing. In this regard, each operation will feature a fully equipped, laboratory with technicians, dental practitioners and office staff. I will institute a separate management structure to ensure that the dental health personnel are not distracted by management duty. As stipulated above, I will focus on providing affordable dental facilities. All operations will be done in line with the dental association’s code of practice to ensure professionalism in all aspects of my service.


The business will be located in southern California. It will serve a population of lose to 12 million residents from Los Angeles, San Diego and Anaheim. The lab will serve at least 25 clients per day with a view to expanding the size and scope of its operation.


The lab will offer lab services of that adhere to the dental lab association’s code of ethics. In addition to following all FDA regulations on dental lab services, the business will also pursue ISO certification for its services. This will be in line with my goal of offering high quality dental lab services. Employees will only be sourced from accredited institutions to ensure high quality of human resources.


While it is important to support the local dental health industry by hiring citizens as personnel in dental labs, it is also important to reduce costs by sourcing cheap labor from around the world. Consequently, I intend to hire both local and foreign trained technicians in my dental lab. For my first establishment, I will procure the services of 2 laboratory technicians. I will also have 1 office personnel and a marketing agent. The establishment will also employ a dental health service manager. My business will also liaise with existing dental clinic to provide mobile dental laboratory services. These services will involve the acquisition of a mobile laboratory to service marginalized communities at least twice a year. This mobile lab will be hired from the national dental health agencies.

Working hours will be between 8 am and 5 pm on weekdays and 8am and 5 pm in Saturdays. The business will remain closed on Sundays and public holidays. Working hours may extend beyond the normal working hours if necessitated by operations that begun within normalcy working hours. Workers who work on weekends and beyond normal working hours will be entitled to overtime compensation.

The procedure to be followed while processing and accepting work requests will be guided by the number of workers and dental lab resources available. The lab will not accept tasks that are deemed unachievable with respect to available time and resources. This policy is aimed at reducing instances of client dissatisfaction. Free Product delivery will be undertaken for clients within the state. Interstate delivery will require payment of a delivery fee determined by the nature of cargo and distance of travel each product will have a specific return policy. Two months’ worth of  supply inventory of all items used in the lab will be maintained at all times to alleviate any shortages that may arise form spillage, wear and tear or demand spikes.

Business Insurance

To address the risks that my business will face, I will insure the laboratory against all significant operational risks. Of particular importance, is the professional liability insurance, which will be used to protect my business from the risk posed by employees’ professional malpractice. With costs of dental equipment constituting a significant portion of my initial capital outlay, it will also be important to take up various forms off commercial property insurance. I will also insure my employees against occupational hazards to protect my business against the same. These forms of insurance will protect my business from unforeseen risks and protect my investment as I aim to achieve my objectives.

Personnel Plans





2 Lab Technicians




1 Front Office personnel




1 Sales personnel




1 Management personnel









Capital Equipment and Supply List

The list of laboratory equipment is show below. This equipment takes into account the need for redundancy to reduce the risk of equipment breakdown. Further purchases will be made as the business expands into new markets.


Equipment name

Number of units

Dental lab furniture


Dental articulators


Dental curing units


Dental electric carving knife


Dental lab Micro motor


Dental Panoramic XRAY machine


Dental polishing unit


Abrasive trimmer


Dental Wax Heater


Porcelain ovens


Ultrasonic cleaners




Assorted Laboratory reagents


Breakeven Analysis

For the business, the fixed costs have been estimated from current industry data. These include the costs of operating infrastructure, personnel costs and daily running costs averaged over a twelve month period. The breakeven analysis also takes variable costs into account. These include the costs of inventory and the costs involved in provision of dental health services such as denture maintenance and patient training. Taking these costs into account, it has been determined that the business’s monthly break even sales point is $28,840.                                                         

Income Projection

The projections for sales and inventory cots over the four 4 years of operation have been computed as shown below.









Cost of sales




Gross profit




Remuneration costs




Marketing expenses
















Total expenses




Net income (Before tax)








Net income (After tax)




            List of Suppliers

The costs of dental health supplies will constitute a significant part of my variable expenditure. I will source my supplies from both within the USA and from foreign based manufactures. Suppliers for my business will include

  • Dental Planet INC
  • Zhengzhou Smile Dental Equipment, Ltd.
  • Shanghai Luk Company Ltd.

As illustrated, I will source some of my supplies from a Texas based firm with other supplies coming from Chinese based manufacturers. This supply plan factors in the supply needs of my business as well as the need to minimize cost to permit provision of affordable dental lab service. All supplies will be ISO certified to ensure quality of service.

Copy of resume

As the proprietor of the dental laboratory, Mr. John has accrued over 7 years’ experience working in the medical services industry a dental lab technician and 3 years as a dental lab management. He is familiar with California’s dental industry as resident dental health professional and has even partaken in several community health projects. John is a knowledgeable dental health professional and an astute manager. He possesses the skills required to provide quality health services and the management skill required to run a modern business laboratory. As a health service provider, he aims to provide quality but affordable dental health services that will increase access to health among the population. This objective is in line with his goal of community oriented health service provision.

Scaled Drawing of Laboratory Layout and Design

Detailed below is an illustration of the laboratory floor plan. The facility will have a total of 16 rooms, most of which will be used to house dental lab equipment. The front office desk will be used to receive incoming patients, with the dental lab technicians and technologists utilizing the rest of the building. Further, one of the rooms will also be utilizing as a pharmacy for in and out patients.

Figure 1: Dental Lab Floor Plan



Works cited

Emmanuel, Ezekiel. Reinventing American Health Care: How the Affordable Care Act will Improve our Terribly Complex, Blatantly Unjust, Outrageously Expensive, Grossly Inefficient, Error Prone System. New York, NY: Public Affairs, 2014. Print.

Stein, Peter. Managing for profit: The art and science of making money managing a dental laboratory. New York, NY: National Association of Dental Laboratories; 2nd edition. 1989, Print.

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