3 Tips For Starting a Dental Practice

Are you looking to open your own dental practice, but aren't sure where to get started?

Owning a dental practice can be extremely lucrative and fulfilling. But, just because you're a successful dentist doesn't mean you'll be a successful business owner. Therefore, before you dive into opening your own practice, there are some things you should know. 

Check out this guide to discover the top tips for starting a dental practice. 


1. Build A Network Of Trusted Advisers 

The minute you decide to open your own dental practice is the same minute you need to start building your dental team. 

Here are the trusted advisers you should hire:

• Building Contractor: It's very important to hire a building contractor who has experience in building dental practices

• Certified Public Accountant: Just as you want to hire a building contractor who has experience with dental clients, so too do you want to hire a CPA who has worked with dental clients

• Dental Equipment Specialist: A dentist is only as good as their dental supplies, which is why it's very important to hire the right dental equipment specialist

• Dental-Specific Lender: Many SBA lenders, loan brokers, and banks are interested in financing dental practices. Whichever type of lender you choose, you should look for one who has experience in the dental industry

As your business grows, you're likely going to need to expand your team of advisers. For example, you may need to hire a dental-focused attorney or a practice management consultant. 


2. Secure Financing 

While there is no shortage of institutions wanting to lend to dentists, you'll likely find that many lenders are unfamiliar with how the funding process works for dental practices. 

Here's what to keep in mind when shopping for a loan:

• Interest rates: Ideally, you want to find a loan that offers a fixed interest rate for the next 7 to 15 years 

• Loan Term: It's usually best to go for the longest loan term available, as this will allow you to have lower payments as you grow your revenue stream

• Pre-payment: As your practice becomes more established, pre-payment options will become an important factor

It's also important to look at the lender-service levels available. This is where picking a dental-specific lender is important, as they'll usually have internal processes in place for paying equipment companies, building contractors, and other vendors. 


3. Create A Business Plan 

As we mentioned earlier, a successful dentist doesn't always equal a successful business owner. 

To make sure you succeed on the business side of things, you should create a detailed business plan. Your business plan should include:

• Marketing tactics and plans
• Budgeting information
• Treatments you'll offer patients
• Growth strategies

The more detailed your business plan is, the better off you'll be. 


Starting A Dental Practice: Are You Ready? 

Now that you've read this guide on starting a dental practice, it's time to put these tips into action. Before you know it, your dental practice will be up and running. 

If you liked this article, be sure to check out our blog for more business-related tips and tricks. Visit the Healthcare and Business sections of our Frugal Finance Blog right now!