In 2017, a report published by IBIS World referred to the fact that the dental market size in the UK at the time was £6.7bn, and was projected to grow over £7bn in following five years. There is growth out there and the most ambitious and efficient dental practice owners want to get as large a share as possible.
Why the climate is right for scaling a dental practice
The UK population is continuing to grow. By 2039 it’s estimated to reach 74 million. You can take a look at more detailed figures, provided by the Office for National Statistics. A growing population leads to an increased need for resources, including dental care. As strain on NHS dental care increases, there is an increased need for good quality private dental care.
The population is also ageing and, as the only part of the human body that has no self-repair ability, teeth require on-going repair and maintenance, if they are to last into later years. As I have discussed with several clients in recent years, there is plenty of opportunity to scale a dental practice, as long as the scaling process is completed correctly.
Factors to consider when scaling a dental practice
I am going to look at how to build a successful dental practice that is ready for growth, and how to complete the expansion process, in this section. However, the first point I wanted to make is that it’s not all about profits, when it comes to growing a dental surgery.
It’s important to consider the costs of running a practice which are also likely to increase significantly over the coming years. For instance, payroll costs can account for almost 60% of revenue expenditure, on average. In 2019 especially, the increase in the National Living Wage may make a difference to dental practices that employ younger administration and support staff.
These cost increases need to be factored into any decision to scale a dental practice. Other on-going costs that should be accounted for include non payroll related expenses, such as the purchase of materials, payment of utility bills, insurance premiums and the cost of marketing.
The obvious lesson to take from all this is that any dental practice owner needs to concentrate their efforts on increasing revenue, as soon as they take over at a practice, or start up their own dental surgery. It’s these efforts that make expansion a possibility.