From the desk of STAC Bizness Solutions CEO, Shawna Aho

Opening a new dental practice, or expanding your current one, is an exciting milestone. It can also be a risky and expensive one if not properly planned. Whether you’re striking out on your own for the first time or adding a second (or third) location, there are key financial, operational, and strategic factors you should evaluate before moving forward.

Let’s jump in!

1. Clarify Your Vision

First and foremost, it helps to get clear on your long-term vision. What kind of practice do you want to build? Are you hoping to create a boutique, high-touch environment? Or are you looking to develop a multi-location network with a strong brand presence across your region? Understanding your goals will help you make more strategic decisions about your office layout, staffing, marketing, and more.

2. Understand Your Market

Next, take a close look at your market. This goes well beyond just counting how many dentists are in the area. You’ll want to understand the demographics: who lives there, what the average income is, whether the population is growing, and what kinds of services they might need. It also pays to study your competitors: how many practices are nearby, what they specialize in, and how patients view them based on online reviews or community reputation. In some cases, investing in a formal feasibility study may be well worth the cost.

You want an office that’s easy to find, highly visible, and convenient for patients to access. Parking, signage, proximity to residential neighborhoods or schools… these all matter. So do the lease terms. Before you sign anything, make sure the zoning supports dental use, and pay close attention to clauses around rent increases, renewal options, and tenant improvement allowances.

3. Know Your Numbers

Of course, vision and research are just the beginning. You also need to know your numbers. Starting a dental practice from scratch can easily run anywhere from $350,000 to over $600,000, depending on the size of the office and the market you’re entering. If you’re expanding, your costs may be lower, but they can still be significant.

Build a detailed financial forecast that accounts for everything from buildout and equipment to marketing, payroll, and working capital. At STAC Bizness Solutions, we often help clients create detailed cash flow projections so they can see when they’ll hit breakeven and how much cushion they need to cover early operating expenses.

4. Secure Smart Financing

Most new or expanding practices will require outside financing. Fortunately, there are lenders who specialize in dental practice loans and understand the unique cash flow dynamics of the industry.

Be prepared to present a well-thought-out business plan, strong personal credit, and, if you already own a practice, financials that show solid performance. When comparing loan offers, look at more than just the interest rate. Consider the repayment terms, fees, and any conditions that may restrict your operations.

5. Build the Right Team

A successful practice also depends heavily on having the right team in place. Whether you’re hiring for a brand-new office or staffing a second location, take the time to define roles clearly and put systems in place for recruiting, onboarding, and performance management. If you are expanding, bringing a trusted staff member from your existing location to help launch the new one can provide continuity and leadership when you need it most.

6. Invest in Scalable Systems

Then there’s technology. Dental practices rely on a wide range of systems to manage patient records, schedule appointments, handle billing, and stay compliant with HIPAA regulations, and mush of this is now done in a “paperless” fashion. Choose tools that are scalable and user-friendly, and that integrate well with one another. While it might be tempting to go with a budget option at first, the cost of switching systems later can be far higher.

7. Don’t Delay Marketing

Marketing should start well before your doors open. Branding, signage, a professional website, a Google Business Profile, and community outreach all help build momentum. Hosting a soft opening, sending postcards to local residents, or sponsoring a community event can also help get the word out.

Once your doors open and you begin seeing patients, don’t be shy about asking for referrals to friends and family members.  If you’ve provided great service, most patients are happy to refer others.

8. Stay Compliant and Protected

Legal and regulatory considerations can’t be overlooked either. Each state has its own requirements for dental licensure, business formation, and employment law. It’s wise to work with a dental-specific attorney and CPA to make sure you’re set up properly. That includes choosing the right entity type (like an S-Corp or LLC), putting insurance in place, and having the right agreements for contractors, associates, and vendors.

9. Get Expert Help Establishing a Strong Financial Foundation

And while it may not be the most exciting part, having a strong financial foundation is critical. Open a separate business bank account. Set up a proper chart of accounts that reflects dental industry norms. Use reliable bookkeeping software, and track your cash flow weekly. Make sure you’re setting aside enough for taxes. These basics can make or break your financial health.

Expanding or opening a practice is a complex process that benefits from professional guidance. At STAC Bizness Solutions, we specialize in helping dental practice owners navigate these critical transitions. From budgeting and forecasting to payroll setup and tax planning, we’re here to help you build a business that’s as strong behind the scenes as it is in the exam room!

Let’s Talk

If you’re ready to take the next step in your practice journey, let’s talk. We’d love to help you plan smarter, grow faster, and stay financially strong every step of the way.

Call STAC Bizness Solutions today at 844-424-9637 or visit us online at https://stacbiz.com to schedule your complimentary consultation. Let’s get your new practice or expansion off to the right start.