Focus on
Starting a Dental Practice
Starting a dental practice can be an overwhelming venture. What documentation do I need to complete? Do I have the financing I need? Am I in the right location? How will I get patients? What type of equipment do I need to buy? How do I manage the financial side of my practice? What if I fail? We expect these are just some of the many questions going through your head. We have solutions!
Step 1
Entity Formation, Licensing & Legal Requirements
Dealing with the legal requirements of opening a dental practice should be prioritized as soon as possible. It can take months to secure the paperwork and credentials needed to operate as a dental practice in the United States. This is especially important if you need to register to be accepted by private and government insurance providers.
It’s also very important to secure the proper license in your state, have a national provider identification number, register with the DEA, and comply with other local regulations that differ depending on where your practice is located. And don’t forget you’ll be required to choose a legal structure for your business and register for – and pay – state and local taxes.
We provide Entity Formation, Licensing, and Legal services.
Step 2
What is Your Budget?
If you’re wondering, What does a dental practice cost? it can be anywhere from $250,000 to $500,000 depending on the location, type of equipment, and renovations you need. This is a very large sum of money and will, in most cases, require you to apply for a loan.
A big mistake many start-up dentists make is underestimating the initial cost of getting their practice started. This can quickly result in scrambling for additional funding with high interest rates or maxing out credit cards.
It is critical that you estimate – as best as you can – the initial costs to get your office up and running. It is also important to budget for day-to-day operating expenses for the first few months and do your best to anticipate unexpected costs in your estimate.
We provide Financial Planning and Consulting Services.
Step 3
Location, Location & Location
Location is one of the most important things to consider when starting a dental practice. The socio-economic class of the community you are in will determine the type of services you can provide, what you can charge for your services, how you market your practice, and so much more.
You also need to make sure you are located in an area that is not already saturated with established dental practices. Your location will have a direct impact on your revenue, which is why picking the right one is vitally important.
We provide Transitional and Dental Practice Consulting services.
Step 4
Purchasing the Right Equipment & Supplies
The location of your office is one thing, but once you determine where you’ll be you will need to purchase furniture, equipment, software, and supplies to run your practice. Creating a comfortable and professional atmosphere where patients feel relaxed and safe will lead to loyalty and referrals. It will also influence the type of practice you will have, determine the services you provide, reinforce your brand, affect how patients interact with staff, and more.
We provide Consulting services for Dental Practice Purchases.
Step 5
What Type of Staff Do You Need and When Do You Need Them?
When starting a dental practice, you need to start thinking about hiring before you’re ready to open your doors, so making time in your schedule to screen and hire candidates is important. These employees will deliver many of your services and create the culture of your pratcice. If you do not choose the right people, it can seriously impact your success. Beyond salary and hours, you’ll need to budget for health insurance, time off, and other benefits, so lining up providers and plans early can positively impact the offers you can provide.
We provide Practice and Staff Management Consulting services.
Step 6
How Will You Attract Patients?
Without patients, you have no practice. When starting your own dental practice, you need to market it, generate awareness, and communicate what makes you different to attract your first patients.
Working with a dental-specific marketing agency brings a level of experience and expertise that is not available with more generic firms. Working with these experts allows you to achieve a constant flow of new patients while building a polished public reputation. It is critical to have a great website, as well as considering where to advertise online and with local print, TV, and radio stations so you can find new patients and grow your practice.
We provide Consulting to help you find the best Dental Marketing Agency for you.
Are you ready to meet us?
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Have Questions?
Contact us at info@eandassociates.com or call us at (972) 267 9191 to schedule a consultation!
What Is the Dental Practice Failure Rate?
To become a general dentist or specialist requires many years of education and a significant amount of financial investment. That’s why it’s understandable why the question of failure rate is asked so often. Dentists should feel confident in their future success as they are in a promising profession. The failure rate of dental practices is less than 3%. That being said, the risk of mismanaging funds or not adequately planning for financial success remains. That is why most dentists make use of a dental CPA to ensure the highest probability of success.
Should I Buy an existing Dental Practice or Just Start One?
The first question you should ask yourself is how much financial risk you’re willing to take on. Some buyers are more willing to start from scratch, they spend a half-million dollars, open the doors, and struggle to get patients. That being said, the failure rate for dental practices is less than 3%. So if you are looking to build your own empire and find the right location, at the right time for the right price, then starting your own from scratch certainly has its benefits. This is especially the case if you want to avoid buying a practice that someone else has created bad habits in.
There is, however, less risk in buying an existing practice because you have cash flow already built in. You’re taking on about the same amount of debt you would be if you’re starting one up, but you have cash flow already. So it’s just a matter of whether you can find a good practice in the right location. Our experts have seen again and again that the most important thing when buying a practice is the location.
If you want more information on whether you should buy a dental practice or start your own, we provide an in-depth discussion on our podcast, Beyond Bitewings.
Should I Buy or Lease a Vehicle as a New Dental Business Owner?
If you’re going to use that vehicle for more than 50% for business, then you should buy it. If it’s less than that, then leasing it will probably give you a lower monthly payment, which will benefit cash flow. Keep in mind that the IRS does acknowledge that doctors use their vehicles for business to some degree. However, they’re willing to accept somewhere around 25%, but not 50% or more unless you own multiple practices, which requires you to drive to various locations. If, however, you own one dental practice, we can justify a deduction of about 25% of the vehicle’s operating cost, and leasing it will then provide you a lower monthly payment. If you have multiple practices, you can justify greater than 50% business use, and you would get a bigger deduction than by purchasing the vehicle.