From the desk of STAC Bizness Solutions CEO, Shawna Aho
Starting your own dental practice is an exciting and rewarding journey, but it’s also a big commitment. Whether you’re just out of dental school or have years of experience under your belt, going solo involves more than just clinical expertise. It requires strong business acumen, careful planning, and a deep understanding of what it takes to manage both the practice and patient relationships effectively.
If you’re contemplating opening your own practice, it’s essential to ask yourself several critical questions to ensure you’re fully prepared for the challenges and responsibilities that come with it. Here are 10 of the most important questions to guide your decision-making process.
- Why Do I Want to Start My Own Practice?
Before diving into the logistics of starting a dental practice, it’s important to understand your “why.” Are you motivated by financial independence, the desire to be your own boss, or a passion for providing a particular type of care in your community? Clarifying your motivation will help you stay focused and resilient when you encounter the inevitable hurdles of entrepreneurship.
Your answer will also shape your practice’s mission, values, and the type of patient base you want to serve. If you’re driven by a desire to create a welcoming environment for underserved populations, for example, that’s something you can incorporate into your business plan.
- Do I Have the Necessary Skills and Experience?
Running a successful dental practice isn’t just about dentistry. You’ll need to wear many hats—practice manager, marketer, HR director, and financial planner, to name a few. Assess whether you have the necessary business and managerial skills to succeed. If not, are you willing to hire specialists, such as office managers, accountants, or marketing professionals, to help manage your practice?
Additionally, running a dental practice requires leadership, communication, and customer service skills. You’ll need to foster a positive work environment and build strong patient relationships, which are just as important as clinical expertise.
- What Type of Practice Do I Want to Create?
There are many different types of dental practices, from general dentistry to specialized services like orthodontics, periodontics, or cosmetic dentistry. Consider what type of dentistry you’re most passionate about and where you can offer the most value.
You should also think about the structure of your practice. Do you want to start solo and expand later, or do you want to partner with other dentists from the outset? Understanding your long-term vision will help you determine the scope and scale of your practice.
- Where Should I Locate My Practice?
Choosing the right location is crucial to the success of your dental practice. It’s not just about finding a space that’s affordable; you need to consider the demographics of the area, its accessibility, and its proximity to other healthcare providers or competitors.
Do you want to be in a busy city center, where you’ll have a larger patient pool but more competition? Or would you prefer a quieter suburban or rural area, where you may have less competition but fewer patients? Do your research to find an area that aligns with your target market and your business goals.
- What Will My Start-Up Costs Be?
Opening a dental practice requires significant financial investment. From securing a location to purchasing dental equipment and hiring staff, the costs can quickly add up. Have you done a thorough cost analysis to understand your financial needs?
Consider the following expenses:
- Lease or mortgage for the space
- Renovation and interior design
- Equipment and supplies
- Insurance (general, malpractice, and others)
- Marketing and branding
- Staff salaries and benefits
It’s crucial to have a clear understanding of your financial requirements before committing to this venture. Do you have the funds to cover these expenses, or will you need to secure financing? Make sure to have a solid business plan that outlines how you’ll cover start-up costs and manage cash flow.
- How Will I Finance My Practice?
Most dental professionals require some form of financing to open a practice, whether through personal savings, loans, or investors. Will you be able to secure a business loan, or do you plan to self-finance?
Explore your financing options, keeping in mind that lenders will want to see a solid business plan, financial projections, and a clear path to profitability. Consider working with a financial advisor to help you navigate the best financing route for your specific situation.
Additionally, explore options for funding dental equipment, office space, and even staff training. The better your financial plan, the less stress you’ll face later on.
- What Will My Patient Base Be?
Understanding your target demographic is essential when starting your dental practice. Are you hoping to attract families, young professionals, retirees, or a particular niche, such as patients seeking cosmetic dentistry or those with specific health concerns?
Research the community where you plan to open your practice. What are the ages, income, and cultural demographics? What are the dental needs of that population? This knowledge will help you tailor your services and marketing efforts to better attract and retain patients.
- What Is My Marketing Strategy?
Marketing is one of the most critical aspects of growing your dental practice. How will you get the word out about your new business? Will you rely on traditional methods such as direct mail or flyers, or will you focus on digital marketing like social media, SEO, and online reviews?
Consider investing in a website, building a presence on social media, and networking within your local community to get the word out. You might also want to offer referral incentives for your patients or build partnerships with local businesses or organizations to expand your reach.
- How Will I Attract and Retain a Talented Team?
Your team is the backbone of your practice. Finding and hiring skilled, reliable, and passionate individuals will be critical to your success. Whether you need dental hygienists, assistants, office managers, or receptionists, it’s essential to create a workplace culture that attracts top talent.
What will you offer in terms of compensation, employee benefits, and job satisfaction? How will you ensure a positive and collaborative work environment? Creating a team-oriented culture will help foster a sense of loyalty and engagement, leading to higher productivity and lower employee turnover.
- Do I have a Competent and Trusted Partner to Keep Track of the Financial Details and Help You with Industry Best Practices?
Business owners should be on top of their taxes, payments, and accounts; and keep a tight handle on outgoing expenditure. A good bookkeeper can advise you on this, as well as helping you identify strategic opportunities to grow your practice as you mature.
Make sure you have chosen a partner like STAC Bizness Solutions you can work with and who has specialized experience in the dental field, as this will be a crucial relationship that shapes the future of your practice.
Final Thoughts
Starting your own dental practice can be incredibly rewarding, but it requires careful thought, planning, and commitment. Chances of success are relatively high if you ask the right questions before you start your new venture. Many new practice owners get caught out by the unexpected because they have not planned properly with cash, personnel, market research or other key factors.
Start by asking the above questions and go in with your eyes open!
LET US KNOW WHERE WE SHOULD WE SEND YOUR FREE GUIDE!
7 Key Financial Practices That Separate Thriving, Growing Practices From The Rest.
There’s no denying it. Creating a thriving practice is about much more than practicing medicine!
Topping the list of “other” priorities is your practice’s financial management. In this short guide, the experts at STAC Bizness Solutions outline 7 financial best practices that differentiate struggling practices from those which are highly profitable and experiencing healthy levels of growth.