Five Dental Practice Business Loan Uses
Dental practice business loan uses will depend upon the type of dental business (traditional dental office, dental supply company, orthodontic or surgical center), the owner’s long-term business strategy and the stage of its evolution: start-up, growing or mature. Dental practice business owners understand that their business is highly competitive, subject to continuous technology changes, dependent upon repeat customer business and third-party referrals for future customers. In this environment, savvy owners know that investing in their dental practice business is a continual process to ensure future growth and success.
A dentral practice business will reach a point where investment capital is needed to adapt and move forward. How best to use this additional business capital will depend upon a variety of internal and external factors as well as your priorities as the business owner.
Let’s review a variety of dental practice business loan uses and how they can be leveraged by the business owner, based on its stage of business evolution:
1 – Renovate Your Entrance Area
The entrance and reception area appearance creates the first impression to your existing and new customer referrals. And while adults will make the buying decisions, they will be influenced by their children in where they feel most confortable receiving dental treatment. Whether the reception area is too small, has outdated decore, needs a rebranding, etc., renovating requires capital investment. A dental practice business loan offers you the capital for these improvements without the need to offset costs in other areas of the business. These improvements might include:
- Updated floors, furniture and lighting
- New signage, music and video system
- Revised entry area to attract walk-in traffic
- New painting and wall decorations
Business Stage: Start-Up – Low Priority | Growing – Medium Priority | Mature – High Priority
2 – Personnel Staff And Training
Since a dental practice’s success centers on patient satisfaction, the services provided by your personnel staff will be a primary factor that will shape your patients’ expectation of service delivered versus that received. If your patients’ expectations are met or exceeded, they will be retained as customers and will serve as a source of future referrals. Factors that will influence your patients’ expectation of quality of customer service include, based on priority: dentist, staff, efficiency, time-cost, and accessibility.
Your personnel staff’s ability to communicate, set proper expectations, receive and process patients consistently on time are factors that your patients view as important to them. The quality and quantity of personnel staff requires an investment in time, selection, training, certification, etc. As such, one of the important dental practice business loan uses will be the financial capital needed to develop your personnel staff to help ensure your future business growth and success.
Business Stage: Start-Up – High Priority | Growing – High Priority | Mature – High Priority
3 – Revamp Your Marketing Activities
Since the dental practice business is consumer patient focused, your marketing activities constantly need to drive additional traffic to your front door. Since consumer service inquiries are now via the Internet (rather than the Yellow Pages), with smart-phones the primary access device, your dental practice online presence and marketing activities will require investment of time and expertise that most dentists likely do not possess. This implies outsourcing to a dental practice specialized third-party digital marketing agency or contractor to allow you to focus on the management of the dental practice.
Marketing and advertisement, regardless of the medium and message, is one of the dental practice business loan uses with potentially the highest return-on-investment (ROI). Examples of marketing (semi-traditional and digital) activities that you should be considering to improve your utilization of resources, profitability and attract new patients include:
- Patient Referral Bonus Program
- Focus On Your Target Audience – Women
- Offer To Beat Your Competition
- Dental practice Internet site converted to be smart-phone friendly
- Online appointment booking, reminders, check-in, 7×24
- Online dental directory highlighting insurances, procedures, availability, patient reviews
- Online search engine local service advertisements and mapping
Business Stage: Start-Up – Service Marketing | Growing – Service Marketing | Mature – Brand Marketing
4 – Expand Dental Practice Locations
If you dental practice business is growing and you feel that you are “tapping out” your local market, you may be considering some type of expansion to another area. This decision may allow you to serve more customers and potentially reach out to new “undiscovered” customers not aware of your dental services. This process of expansion may be either a new office build-out or a buy-out of an existing practice with its associated customer base. Whichever decision is best for your long-term business strategy, this option for dental practice business loan uses will provide the incremental financial capital needed for additional staffing, training, and equipment to get the new location off the ground. The return on this investment will take time to offset these additional costs to your existing dental practice business.
Business Stage: Start-Up – Low Priority | Growing – Medium Priority | Mature – Medium Priority
5 – Upgrade Equipment
The decision to upgrade equipment is a natural aspect of a dental practice business. This reflects the normal wear and tear of equipment during patient use and the continuous evolution of dentistry technology with its resulting benefits. Since the investment in new equipment is costly and implies a learning curve for the medical staff, this is decision is not taken likely by the business owner. Additionally the purchase of new equipment implies a learning curve for the patient staff and changes in previously established patient care routines.
Given these considerations, upgrading equipment is still likely advisable, since new equipment should raise the level of patient comfort and care and serve as a means of future competitive differentiation for your dental practice. However upgrading equipment should be viewed on a case-by-cash basis, particularly if it is not central to your core dental practice business. As a result, one of the dental practice business loan uses will be the financial capital needed to manage this process with its cash-flow demands.
Business Stage: Start-Up – Low Priority | Growing – High Priority | Mature – High Priority
A Dental Practice Business Loan Uses – Conclusion
Five dental practice business loan uses are presented relative to the stage of development of the dental practice business. The more mature your small business is, together with your personal experience, will allow you to take advantage of the many benefits a dental practice business loan offers. With proper use, a small business loan serves as an asset to your business that will create future opportunities for business growth.
Please call us at (888) 213-3383 to help review which financial product best serves your business needs or Contact Us via Email.