HOW MUCH DOES IT COST TO START A DENTAL PRACTICE?
As a freshly licensed dentist, you are ready to put away the books and get down to business. Now you are ready to branch out on your own and open your own dental office. It’s an exciting time, for sure. However, before you can pursue your dream career, the important question arises: How much does it cost to start a dental practice? As expensive as any start-up business, the total cost of opening a dental clinic can range depending on a variety of factors. There is the location of the clinic, the bank rates, and let’s not forget the office floor plans.
With the following Start-Up Cost Tips, you can identify important factors to help you make better decisions for your practice. Moreover, it will benefit your budget and your patients.
FACTOR #1: THE LOCATION:
The location you choose will have a very large impact on the total cost of your start-up.
Your main objective here is to obtain a location that is as reasonably low in cost. At the same time, it should support your growth goals. As a low-cost area could save you up to 20% in expenses, the future of your clinic will also require enough of a population to enable future success.
By balancing low cost areas with accessibility to your target market, you will be able to gauge the best suited option for your practice.
FACTOR #2: THE SIZE:
Each dentist will have their own vision of what they want out of their practice. As building a much smaller office will certainly cut down your start-up expenses, will it align with your professional expectations a few years from now?
For example, the number of chairs you expect to accommodate will have a very large influence on the decision of square footage.
However, if you are building your clinic and intend to be spending at least a few more years there, you might want to consider your 5-year-plan.
FACTOR #3: BANK RATES:
Your best bet will always be to work with a bank who already understands the dental industry.
Although the lowest rate may seem like the most logical option, do not be fooled. Low flexibility, restrictive payment cycles and unexpected first year costs could land you in unnecessary financial stress.
Instead, consider the loan term, pre-payment details and lender service levels as well. With a simple search, you will also be able to identify local specialist lenders that will be willing to accommodate your professional needs.
FACTOR #4: THE DENTAL OFFICE TEAM
Choose a contractor that specializes in dental construction. Making the wrong choice can negatively affect your start-up expenses. Therefore, industry oversights in design and planning could run you into a much bigger problem.
In addition to your contracting team, you will have the opportunity to carefully handpick the staff that will join you on this new adventure.
Be selective in your decisions to ensure your practice receives the best possible quality for the most efficient start-up cost. Moreover, if you are an Ontario resident, check out our article Cost of buying a dental practice in Ontario.