How do I build a new dental office?
Setting up a new dental practice means starting a new business from scratch -- and that can be downright overwhelming. There is a lot of work that goes into establishing your business: from deciding if a partner is right for you, to how many employees you are going to hire, to how you are going to market your business. In this post, we cover all those things and more, helping you get set up for success.
1. Create a business plan
The first step to opening a dental practice from a scratch is creating a business plan: a detailed, living document that will help you get up and running. Your business plan should include your business strategy, standard operating procedures, costs, earnings, and other financial information. To obtain a business loan for your practice, you will need a thorough business plan.
2. Decide Whether You Want a Partner
Are you going to open a dental practice on your own, or are you going to partner with one or more dentists? Teaming up with a partner can help offset the costs of opening the dental practice and obtaining a loan. A downside of opening a practice with a partner is it can be hard to find someone who shares your vision.
3. Settle on a Location for Your Practice
Hopefully, you have already chosen the town or city where you would like to set up your office. If you haven’t done this yet, then you should start by asking yourself where you want to live and work, and start doing some research on the best places for you and your family. Once you know the general area in which you’d like to practice, research your competition and the population of the area where you will be practicing.
4. Determine What Equipment You’ll Need
One of the biggest expenses when starting a dental practice is the up-front cost of equipment. In addition to dental equipment, you need furniture, computer systems, dental practice management software, medical supplies, and office supplies.
5. Determine Your Space and Layout Requirements
Before beginning your search for office space, determine how much actual square footage you need. How much space do you need for your waiting room, bathroom, reception area, and exam rooms? Will you also need an x-ray room, storage space, and a break room? These are things to figure out before you start looking for an office.
6. Obtain Financing to Start Your Practice
Obtaining financing is a process. First, you need to start talking to different lending institutions and get a feel for their willingness to lend to dentists. After that, you need to put together a preliminary loan package with your chosen lender and apply for the loan. Finally, finalize the loan package (making sure your attorney checks everything before you sign on the dotted line).
7. Obtain a Lease for Your Office Space
Generally, dentists obtain a 10-year lease. This locks in the monthly rent and protects you from rate increases. Many landlords are open to offering discounted or free rental rates for the first few months. This can help you cover the starting costs of your dental practice – especially during the construction phase. Depending on the location you choose and your requirements, construction may take several months. Be sure to have your attorney look over your lease before you commit.
8. Determine Your Personnel Needs
You will not be able to do everything on your own, so you should start thinking about your staffing needs sooner rather than later. Even if you don't plan to bring another dentist on right away, you still need to hire a receptionist, dental assistants, and a billing specialist or office manager. You may not be able to hire a full-time IT person, but you should look for a contractor to have on call when the need arises.
