A Guide to Starting Your Own Dental Practice
The dentistry field is expected to grow at a rate of five percent through 2033.
Starting a business takes significant time, research, and energy. This guide outlines important considerations for starting a dental practice – from creating your business plan to marketing to hiring staff.
TIP 1
As a roadmap to run your business, outlining key details such as competitive advantages and future financial projections.
To secure funding through external investment to help with startup costs. Potential lenders will use the business plan to assess viability.
Key points to include:
Executive summary
A one-page overview including details such as practice description, employees, location, and high-level financials.
Practice description
Outline what dental services and/or products you plan to offer.
Market analysis
What gap or need will your business serve? For example, your location lacks your dental specialty.
Organization and management
Who will own and run the business? How will it be structured (limited liability company, partnership, corporation, etc.)?
Marketing and sales
How will your practice stand out from the competition?
Financial projections
Offer a five-year financial outlook, including forecasted income statements and balance sheets.
Funding request
If you will require funding to start a dental practice, include the amount you’ll need and associated costs (rent, equipment, etc.).
For more business considerations, visit the U.S. Small Business Administration for a detailed guide.
TIP 2
As part of your business plan, you will need to map out startup and operation costs. This will help you determine how much funding is needed. Unless you have sizable savings, you will likely require external funding to get your started.
The funds needed to open a dental practice can vary widely depending on factors like location, specialty, and size. A larger practice that requires more investment for technology, tools, human capital, and other business components will likely have a higher startup overhead. Dental fields that require more cuttingedge technology, such as x-rays and surgical instrumentation, will also have higher costs.
Important expenses associated with starting a dental practice include:
- Rent and utilities
- Technology (e.g., accounting and scheduling software, computers, phones)
- Dental equipment
- Marketing and advertising costs
- Employee wages
TIP 3
Interest Rates
Interest rates can be fixed or variable in line with evolving market indexes. Note that adjustable rates are generally lower but tend to rise over time. Securing a competitive fixed rate may be preferable.
Loan Terms
How long do you plan to take to pay back the money you borrow? Standard terms range from 5 to 15 or even 20 years. A longer loan term means lower monthly payments.
Prepayment Options
It usually makes sense to keep payments low at the start of the term, as your dental practice is growing. You can theoretically put more towards your loan down the line as your dental practice earnings expand. In most cases, you can prepay a loan after three to five years without penalties.
TIP 4
- Craft Compelling Content
- Create an Appealing Aesthetic
- Convey Your Unique Brand
Your website should include core webpages:
- Home page
- Services page
- About page with your credentials and experience
- Contact page, clearly stating how to book appointments, as well as downloadable new patient forms
A great website should include images and visuals to improve readability. It is also essential to make sure your website is mobile-friendly, since many users will view it on their phones.
Incorporate engaging photos that show friendly interactions between patients and dentists. Patients can already be weary of dentists, so steer clear of imagery that could be conceived as scary, painful, or explicit, such as dental drills.
While you can include photos of yourself, and your staff (with their consent), avoid posting pictures of patients. Publicizing patient pictures without explicit consent can be a violation of HIPAA guidelines.
Be sure to define the unique aspects of your brand beforehand to help you design your website. That way, the design will reflect the values of your practice. The text and visual elements of your website should work together to illustrate your unique brand.
For example, if you work in pediatric dentistry, your design and visual elements may be more informal with bright colors and animations, as opposed to running an oral surgery clinic, which may need to convey a different more formal, trust-building brand.
TIP 5
Define Your Concept
What makes your dental practice stand out from the crowd? To help answer this, consider your unique skills paired with a detailed market analysis to determine what your business can bring to the community.
For example, say you’re an orthodontist planning to open in a midsized college town. The competition is slim. Your market research reveals the other orthodontist in town doesn’t offer teeth whitening and only uses one brand of invisible aligners.
You can then tailor your business approach to offer a solution to these gaps. By offering more types of aligners, you can give patients cost-efficient options. You can also provide cosmetic procedures, such as whitening, to widen your appeal.
Optimize Your Website
As you set up your website, leverage the power of digital marketing. Start by ensuring your web content is search engine optimized, making it easier for individuals to find you online.
Optimizing a website involves:
- Using keywords in your content
- Writing relevant meta descriptions and meta titles for your webpages
- Labeling images well on your site
Google offers an SEO starter guide that can help. You can also hire marketing and web professionals.
To further improve your local search ranking, set up a Google business listing using Google My Business, which is linked to Google Maps. This helps improve SEO and make it easier for patients to locate your dental practice.
Leverage Social Media
You can further improve your visibility online with social media marketing. Platforms like Facebook, TikTok, LinkedIn, and Instagram can help you promote your practice by sharing educational resources and news. Focus on providing practical insights, such as oral hygiene tips, instead of promotional material, which may come off as salesy or inauthentic.
Knowledge sharing can also help establish you as a thought leader in your field. You may also consider posting customer testimonials (obtained with consent) and savings opportunities on occasion. Make sure all content you post complies with relevant healthcare advertising laws.
TIP 6
- Operational Infrastructure
- IT Systems
Be sure to have these systems in place before you open your doors:
- Appointment scheduling.
- Patient records management in line with electronic health records best practices.
- Payment protocols and accepted insurance carriers.
- Cash management. Who will handle bookkeeping, invoices, expenses, and other administrative tasks?
- Accounting and tax preparation. Will you handle this or outsource it?
Be sure to create and document clear guidelines for all operational systems usage. Require new hires to review these materials and sign them afterwards as part of your employee onboarding process.
IT systems can help you safely handle patient data. Dental patient records should include:
- Patient information (name, birth, date, contact information)
- Contact details
- Medical and dental history
- Treatment notes
- Record of previous discussions
A phone or video interview can serve as a good first point of contact. However, you should always meet potential employees in person, too. This gives you a chance to better assess their demeanor.
Background checks on potential employees by checking your state’s guidelines. Note that you typically must inform an applicant that you plan to run a check.
Whatever IT system you use, it’s key to maintain strict policies to help keep private details secure. The American Dental Association provides guidelines for handling patient data.
Be sure your IT systems are protected by reputable antivirus software to help scan for malware, spyware, and other threats.
Additionally, ensure that your employees adhere to your practice’s IT guidelines. Implement best practices such as using unique passwords bolstered by two-factor authentication, regularly updating antivirus software, and only using approved devices to access patient files.
TIP 7
Post Clearly Defined Job Listings
When writing a job description, make sure to include responsibilities, educational requirements, and requisite skills.
Also include appealing details, such as the salary range and seniority level, to help prevent qualified applicants from passing on your listing.
Check Educational Credentials and References
When vetting applicants, check educational credentials. Most educational institutes will verify the basics like a person’s degree and graduation date.
Additionally, check that the applicant’s licenses are in good standing. You can verify this with the relevant state board. For example, if you’re hiring a dental hygienist, check with the American Dental Hygienists’ Association, which provides a list of state licensing authorities.
It’s also useful to reach out to an applicant’s references to gauge their work ethic and soft skills.
Conduct In-Person Interviews
A phone or video interview can serve as a good first point of contact. However, you should always meet potential employees in person, too. This gives you a chance to better assess their demeanor.
Consider Background Checks
Background checks on potential employees by checking your state’s guidelines. Note that you typically must inform an applicant that you plan to run a check.
TIP 8
Your practice must abide by a wide range of regulations, such as:
- General operational guidelines (business licenses and safety codes)
- Local fire codes
- OSHA guidelines
Federal, State, and Local Licensing Requirements
The American Dental Association explains that dental licensure is run via the state, so be sure to refer to your state board to confirm you are meeting requirements. In general, there are educational, written examination, and clinical examination requirements to fulfill.
State boards may issue additional requirements, such as continuing education, proof of malpractice insurance, background check, documentation of Hepatitis B vaccination, and more.
You must also legally register your business with the state as a formal entity, such as a C-corp, S-corp, or partnership. Such requirements vary depending on the state. In California, for example, a dental clinic can’t be a limited liability company (LLC).
Additionally, requirements for business licensing may vary depending on municipality. Your state dental board may have resources to help you stay on top of legislative changes and best practices.
TIP 9
Malpractice insurance (also called professional liability insurance) can help cover you in allegations of negligence in dental care. A malpractice lawsuit could put your practice, license, and finances at risk.
Generally, malpractice coverage includes protection for actions that allegedly harmed a patient while you or your employees performed professional duties. It can also cover a wide array of issues and lawsuitrelated damages, possibly including legal fees and other expenses.
Malpractice insurance is an important risk management tool that can help protect the dental business you’ve worked hard to build.
Trust Dentist’s Advantage to Help Protect Your New Business
Dentist’s Advantage is a leading provider of dental malpractice insurance to help you run your dental practice with confidence at every stage of your career.
Get Your QuoteOpens in a new window.