How Much Does It Cost to Start a Dental Practice?
Dentistry is an industry that will always be in demand – as long as we have teeth, we will need someone to fix them when things go wrong. If you are thinking of starting your own dental practice, there are a few things you will need to factor in before you make your decision. Here are a few things to consider before jumping in.
The Right Contractor for The Job
Building a dental practice is not the same as normal shop fitting, it requires a contractor with experience in building out dental practices. A general contractor might not know the dental-specific needs of this job and you could run into problems down the line. This can generally range from $100 – $200 per square foot, excluding equipment.
You need to get top quality equipment for your practice, trying to skimp on spending here will only hurt your business in the long run. Equipment faults and breakdowns can lead to your customers having a poor experience and not returning. Start with the basic equipment you’ll need to open your doors like dental chairs, dental tools, examination mirrors, and a good quality dental light. To get your money’s worth here, you need to look beyond the price tag – but you’re looking at upwards of $70 000 for proper new equipment.
It is imperative that you find the right team of dental associates, admin staff and nurses. These people will either make or break your business. Find people who will stick with you and be in this for the long haul. Running your own business can take a toll on your mental health so having a dedicated team who will be there for the business if you are not is a vital part of starting your own dental practice. It is advisable to speak to your colleagues and other dentist friends on where you can find the perfect team, you can also call in a recruiter to assist with the hiring process. Approximately 25% of your total turnover will go to paying your staff, so choose wisely.
Your dental supplies will be a variable cost that you will need to factor in. Some dental practices spend around $50 000 a year on supplies, use this figure as a base-line for down the line. This figure will largely depend on the size of your practice and the number of patients you have. On average, dental supplies will use around 5% of your annual revenue.
Lab Fees and Other Miscellaneous Costs
Your lab fees will increase with the number of patients you have and will also depend on what dental services your dental practice will offer. You will also need to factor in insurance costs for your practice, these will also vary depending on the number of services you offer. You can expect to spend around 20% of your revenue on these charges every year. That will leave you with around 45% for other running costs as well as your own salary.
All in all, you should budget around $350 000 for starting your own well-equipped dental practice in a good location.