Starting a Dental Practice Checklist for 2024
Imagine this: you’ve just graduated, and you’re finally ready to open your very own dental practice. You’ve got a vision for the kind of care you want to provide, but the checklist of things to do feels like a mile long.
Do you find a location first? Secure financing? Buy the equipment? It’s easy to feel overwhelmed.
Starting a dental practice is exciting, but there’s no doubt it’s a lot to juggle. One minute you’re thinking about hiring staff, and the next, you’re wondering if you’ve forgotten something crucial.
That’s where a solid plan comes in. To help you navigate all these moving pieces, we’ve put together a Starting a Dental Practice Checklist. This guide will walk you through the essential steps to get your practice off the ground without missing anything important.
Let’s dive in and make sure you’ve got everything covered.
1. Develop a sound business plan.
Even though you’re skilled and ready to run a dental practice, having a clear business plan is just as important as your clinical expertise.
Your business plan will outline your goals, the strategies to achieve them, and the financial details, like projected earnings and expected expenses. This roadmap keeps you on track and ensures your practice runs smoothly.
You’ll also need this business plan when seeking financing from lenders, negotiating lease terms, or even recruiting staff. It helps others see your vision and understand the future of your practice.
And while it might seem early, including an exit strategy is important—it sets the stage for long-term success and future transitions.
2. Consider a partner.
One of the bigger decisions when starting your practice is whether to go solo or bring on a partner.
Both options have their pros and cons, so it’s important to think carefully about what works best for you.
Partnering with another dentist can help share the initial costs and make it easier to get loans. Plus, having someone to split the workload can take some pressure off.
But, on the flip side, partnerships can complicate things—especially when it comes to accounting and taxes. That’s why it’s a good idea to consult an experienced dental CPA to make sure you’re handling finances correctly.
The key is finding a partner who shares your vision and goals for the practice. If you’re not on the same page, going solo might be the better choice.
3. Find the ideal place for your practice.
Location is everything when starting a dental practice, whether you’re planning to work from home or rent a space.
If you’re on a tight budget, starting at home can be a good option—especially if your community has a high demand for dental services. But if you’re in a low-density area, it might be harder to attract enough patients unless you’re the only dentist around.
Most dentists opt to rent a space, but it’s important to consider factors like cost of living, competition, and population density.
For example, setting up a practice in a high-competition area like downtown Los Angeles may be tough for a beginner due to high rent and fierce competition. A better option could be choosing a location in the suburbs, where overhead costs are lower and there’s room to grow.
When negotiating a lease, an experienced dental accountant can help you structure the terms in a way that best supports your financial plan.
And wherever you choose, make sure the location is convenient for your patients, with easy access to parking or public transportation. A good spot can set your practice up for success.
4. Check equipment requirements.
As a dentist, you’re familiar with the tools and equipment needed to provide top-notch care, but it’s important not to rush into purchasing the first items you come across. Dental equipment can be a major investment, and finding the right balance between quality and cost is crucial.
One of the first decisions you’ll face is whether to buy or lease your equipment. Buying offers long-term savings but comes with a higher upfront cost. Leasing, on the other hand, can be a more manageable option for new dentists since it spreads out payments over time. Many beginner dentists opt to lease their equipment at first, allowing them to build up savings before purchasing outright.
Beyond the essential dental tools, don’t forget the other pieces that make your practice run smoothly, like dental practice management software, accounting tools, and computer systems. These tools can help with scheduling, billing, and patient records, making day-to-day operations more efficient. Also, think about office furniture and the physical layout of your clinic—comfortable, practical spaces will enhance the patient experience.
As you evaluate your options, consult with equipment suppliers who specialize in dental practices, and don’t hesitate to reach out to a dental CPA for advice on structuring purchases or leases in a tax-efficient way.
5. Look for financing options.
Starting a dental practice can cost anywhere from $170,000 to $700,000, which is more than most new dentists have on hand. This is where financing comes in. While partnering with another dentist can help share the costs, many dentists choose to apply for a business loan to cover the startup expenses.
Business loans are a bit more complicated than personal loans because lenders look at more than just your credit score. They want to see detailed financial documents, like a solid business plan, cash flow projections, and an outline of how you’ll use the funds. This extra information helps them assess whether your practice will be able to repay the loan.
Working with an experienced dental CPA can make this process easier. They’ll help you organize your finances and make sure you’re presenting the best case to the bank.
A dental CPA can also guide you through different financing options and make sure you understand the terms of your loan, helping you avoid unnecessary risks.
6. Determine staffing needs.
Starting out, you might think you can handle everything on your own, but running a dental practice involves more than just seeing patients. Having the right team in place can take a lot of pressure off and allow you to focus on patient care.
In the beginning, you might not need a large staff, but you’ll still want to consider a few key hires. For example, a dental assistant who can also handle reception duties—like scheduling, answering phones, and managing patient records—can be a big help and save you from being stretched too thin.
You’ll also need someone to keep your finances organized, whether it’s a bookkeeper or accountant. Having an experienced dental CPA involved early on will help ensure you’re compliant with tax laws and that your practice’s finances are in good shape. This can save you a lot of headaches down the road.
As your practice grows, you may want to hire an office manager to oversee daily operations and make sure things run smoothly. But in the early stages, having a small, flexible team can be a cost-effective way to get started while still managing the workload efficiently.
In terms of costs, new hires can vary based on experience and location. A dental assistant might cost anywhere from $35,000 to $50,000 annually, while an office manager could be $50,000 or more. Planning your staffing needs early on helps you budget and avoid being overwhelmed as your practice grows.
7. Create a dental marketing strategy.
Getting patients through the door is one of the most important parts of growing your dental practice. But how do you attract them? It starts with having a clear marketing strategy that defines your brand, message, and how you’ll reach potential patients.
First, think about your brand. What sets your practice apart from others? Whether it’s a family-friendly environment, state-of-the-art technology, or personalized care, make sure you have a clear message that potential patients will connect with.
Next, figure out how to spread that message. While traditional methods like flyers and newspaper ads can still work, today’s marketing relies heavily on digital strategies. Social media platforms like Facebook and Instagram allow you to connect with your community and showcase your services. A website with a blog can help you educate patients about dental health while boosting your online visibility. Email newsletters are another effective way to stay in touch with existing patients and remind them to book their next appointment.
You might also consider starting a podcast or contributing to local radio shows, which can build your reputation as an expert in the field. The goal is to be where your potential patients are—whether that’s online or offline—and communicate the value of your practice.
8. Obtain legal paperwork.
Starting a dental practice means handling a lot of legal paperwork to ensure your clinic is compliant with local and state regulations. Just like any other business, you’ll need to secure the proper licenses and permits to operate. These requirements can vary depending on your location, so it’s important to check with your city and community governments to understand what’s needed.
One of the first things you’ll need is a tax identification number (TIN), which is essential for handling taxes and opening a business bank account. You’ll also need to file paperwork to establish your business entity, whether it’s an LLC, corporation, or sole proprietorship. This will protect you legally and financially as you start your practice.
In addition to these basics, you’ll likely need to obtain specific health and safety permits related to running a medical office. This may include inspections to ensure your clinic meets health codes and other regulations. Working with a lawyer who specializes in dental practices can help you navigate these steps and ensure everything is in order from the start.
Need Extra Help Starting Your Dental Practice?
As you can see, starting your own dental practice involves many steps, from creating a solid business plan to securing financing, choosing the right location, and making sure all your legal paperwork is in order.
It’s a lot to juggle, but with the right support, you can set yourself up for success.
At Core Advisors, we specialize in helping dentists like you navigate the financial and business aspects of opening a practice.
Whether it’s developing a business plan, securing financing, or ensuring compliance with tax regulations, we’re here to guide you through every step. It’s what we do!
If you need extra help getting your practice off the ground, reach out to us—we’re here to help! Simply use our calendar to book an introductory call.
In the meantime, check out this blog on buying a dental practice that we think you’ll find helpful.
Until next time!
