One of the most common questions surrounding opening a dental practice is: how much does this process cost?
Starting a practice requires capital, recurring revenue, employee salaries, a significant amount of time, and more — altogether, it can feel overwhelming. However, by calculating a general price range ahead of time, you can make the best decisions for your career.
Here’s an overview of the factors that contribute to the overall cost of a dental practice and why it can fluctuate:
According to the ADA, you can expect to invest about $500,000 into starting a dental practice. This is an average number, and it’s possible for your practice to cost more or less than this.
There are a number of components that go into the start-up costs of a dental practice, including:
Many dentists who start their own practices must have some form of financing to open the business, secure a location, purchase equipment, start hiring, and market your practice. Depending on your lender, amount, and the market interest rate (among other factors), your loan payments are likely to be a sizable part of your expenses.
Regardless, you should know the sum of loan repayments you can expect every month and when you need to make them.
If you’re considering opening a dental practice and searching for loan options, you can speak with different lenders to find the loan terms that work best for you.
You will need appropriate insurance to protect yourself and your practice. For example:
It’s important to know what coverages you will be required to purchase and any recurring charges to expect, such as an annual fee to maintain your business license.
Regardless of whether you lease or purchase your space, you’ll often find this will be an ongoing cost for a significant period of time.
The Dental Clinic Manual has some recommendations for office space guidelines — they suggest:
There are a number of factors that contribute to the overall cost of a dental practice’s physical location, including real estate, utilities, amenities, federal, municipal, and state taxes, and more.
When opening a dental practice, you’ll need to put together your team.
You’ll be hiring a variety of people with different skill sets, including dental hygienists, front-office staff, and other team members, so it’s important to note the common cost differences between each of those. For example:
Salaries, even before the addition of benefits, can amount to several hundred thousand dollars annually.
Starting your own practice requires you to register your business as a legal entity. You’ll be required to pay any applicable up-front charges required by your state, including registration fees, which vary depending on your location.
Practices require a mix of standard office equipment and specialized dental equipment. Many practices also purchase dental management software to provide data storage for patient records, appointment bookings, and other essential information.
Once you’ve launched your new practice, it’s time to get to work. You’ll want to begin by creating and growing your patient list. There are a number of ways you can do this, including by:
To learn more on growing your patient list and running a successful practice, access our free Ebook, Strategies To Grow Your Dental Practice Patient List, today!
Treloar & Heisel, an EPIC Company, is a premier financial services provider to dental and medical professionals across the country. We assist thousands of clients from residency to practice and through retirement with a comprehensive suite of financial services, custom-tailored advice, and a strong national network focused on delivering the highest level of service.